Davidov Law Group

What is Estate Administration?

Will readings are a common event in pop culture. Most of us have seen movies and television shows where a dramatic reveal about who a deceased character has named executor of their estate occurs. Many of us have even had this experience in real life. While will readings are common, most of us will never be named executors in a will. Because of this, most of us will never consider what it means to be the executor of a will.

Being named the executor of a deceased person’s will and being placed in charge of handling their affairs is called estate administration. Estate administration entails distributing assets according to instructions left behind by the deceased, paying outstanding debts and taxes, notifying appropriate parties, and more.

While estate administration may be a rewarding experience and a way to honor a deceased loved one, it can also be challenging and potentially difficult. This includes dealing with complex and possibly intimidating legal issues and responsibilities. That’s why if you or a loved one have been placed in charge of estate administration, it’s essential to contact an experienced and compassionate estate administration attorney from our team.

What is Involved in Estate Administration?

Estate administration covers a wide array of duties and responsibilities. These responsibilities may include but are not necessarily limited to:

• Notifying Appropriate People of the Deceased’s Passing
• Filing Taxes for the Deceased
• Paying Outstanding Bills, Debts, and Taxes
• Distributing Assets
• Valuing and Liquidating Assets

Most people know that administering a deceased person’s estate involves distributing certain assets to their loved ones, such as money, heirlooms, or other prized possessions. However, the estate administration process is far more complex and involves a great deal of paperwork, including legal and financial documentation.

The deceased’s creditors must be notified so they may attempt to collect any outstanding debts from the estate. Should a creditor come forward, you may be responsible for vetting and settling their debt.

Estate administration also involves settling any outstanding taxes. This may include filing any overdue taxes for the deceased.

These are only a few of the responsibilities involved in estate administration. More complex estates, such as those of business owners or wealthy individuals with several thousand or millions of dollars in assets, may be more challenging to administer. This is why an experienced estate attorney is vital for anyone tasked with estate administration.

What are Some Potential Challenges in Estate Administration?

Because of the legal complexity involved, many people without a legal background may find being an estate administrator an intimidating experience. This is because of the many potential challenges involved.

For instance, funding is a significant source of difficulty for many estate administrators. Often, people who leave behind debts do not have the financial resources to settle all of them. This may mean liquidating assets to pay creditors. Most people do not have much experience in determining which assets can or should be liquidated, how to value those assets, how to sell them, and how to pay debts sufficiently.  

Another potential challenge is beneficiary disputes. It is not uncommon for the deceased’s loved ones to argue with the contents of or even legally challenge a will. They may be displeased with any inheritance or bequest they may have received, or they may even be angry that another individual received money or assets they wanted for themselves.

Locating beneficiaries may prove challenging as well. Depending on the age of the will and the relationship of the deceased to their loved ones, it may be necessary to hire a private investigator or researcher to locate certain people. In some instances, the individuals named as beneficiaries may be deceased, too. In this instance, it may be necessary to determine which family members or heirs are next in line to receive assets.

Do I Have to be an Estate Administrator?

While most people who are appointed to administer an estate feel an obligation to the deceased, it is not a legally binding assignation. Just because someone names you an executor in their will does not mean you have to accept the responsibility.

There are many valid reasons for not wanting to be an estate administrator, including grief, emotional stress, time constraints, or doubt in your own abilities to carry out the duties of an administrator. If you find yourself tasked with administering an estate and are uncertain if you want to accept the responsibility, one of our experienced estate attorneys can review your situation and help you come to a decision.

Should I Be an Estate Administrator?

While some people may find the task of administering an estate overwhelming, it can be a rewarding experience. Being an estate administrator allows you to ensure the deceased’s final wishes are carried out as intended. Judges and probate courts do not have the sentimental attachment to the deceased that you may. They may not be as concerned with the emotional implications of certain decisions and may be more willing to liquidate certain assets or even an entire estate to settle debts and “wrap up” the process as quickly and efficiently as possible. In some instances, this “hands-off” approach may be best.

Many people would prefer to keep estate administration in their own hands, though. An experienced estate attorney can review your options with you and help determine what route is best for your financial, emotional, and mental well-being.

What Should I Do if I’ve Been Assigned to Administer an Estate?

Administering an estate can be a rewarding experience and a way to honor a loved one through one last act of service. For other people, estate administration is an immense responsibility. Whatever your feelings or situation, the attorneys of Davidov Law Group are here to help. Our empathetic and experienced legal team is here to be with you through every step of the process, from will readings through asset valuation and debt resolution. We can review the estate of the deceased and help determine the best route forward.

Loss is difficult. Being assigned a major responsibility, such as estate administration after a significant loss, can be formidable. With the attorneys of Davidov Law Group on your side, it doesn’t have to be. If you or a loved one have been tasked with administering an estate, don’t hesitate to call us today at 516-253-1366 to schedule your complimentary consultation.

Who Can You Trust . . . With Your Trust?

When you set up a trust in New York or establish a power of attorney, you’ll need assistance from two parties: a Long Island estate planning attorney to help you prepare the trust, power of attorney or health care proxy and a trustee or personal agent you authorize to act on your behalf.

When you prepare a power of attorney for financial decisions or a health care proxy for medical decisions with the assistance of a Nassau County estate planning lawyer, that document gives your agent the authority to make the financial or medical decisions that safeguard your best interests and well-being.

When you set up a trust, you may act as the trustee (if you wish) for as long as you’re alive, but upon your death, the person you have named as your successor trustee assumes management of the trust. Selecting an agent or trustee may be your most important estate planning decision.

Should You Establish a Trust?

A trust is a legal and financial document that lets you select a trustee to manage your estate on behalf of your beneficiaries after your death. Your trust document specifies when and how your successor trustee will distribute your assets to your beneficiaries.

If you prepare a trust, your estate can avoid the probate process, and your trustee and beneficiaries will not have to deal with interference from a probate court. Probate is lengthy and can take a year or more. It’s also costly, and it can substantially reduce an estate’s value.

Should You Prepare a Power of Attorney?

Every adult in New York should consider having a power of attorney for financial matters and a health care proxy for medical matters. If you own a business, have a family, or if others rely on you, it is essential to have the appropriate legal documents in place.

If you become incapacitated and cannot make the decisions that must be made for you and your loved ones, a power of attorney and a health care proxy give your agents the authority to make those decisions for you and to protect your well-being and interests.

Who Should Be Your Power of Attorney Agent?

Most people name a spouse, adult child, or other family member to act as an agent or successor trustee. Others name someone who is not a family member to avoid family confrontations and tensions. Before you choose a power of attorney agent or a successor trustee, ask these questions:

1. Is the person you are choosing responsible and financially independent?
2. Is the person you are choosing on good terms with your family members?
3. Does the person you are choosing have the time to take on the responsibility?
4. Will the person you are choosing hire an accountant or attorney if necessary?

When you prepare a health care proxy or financial power of attorney, select an agent you trust to make your choices and manage your affairs if you are unable to. It should be someone you would entrust with your life because that’s exactly what you’ll be doing. Your agent should be:

1. dedicated to your interests
2. organized and good with details
3. comfortable working with financial professionals or medical providers

Who Should Be Your Successor Trustee?

Your trustee may be a relative, friend, lawyer, or your bank’s trust department. The choice is yours. Most people choose a friend or family member to act as a trustee, but selecting an unbiased third-party trustee – like a bank or an attorney – has several benefits.

Professional trustees are not affected by your family’s dynamics and can objectively manage your trust in the best interests of the beneficiaries. If the trustee is a bank, the bank will have abundant experience managing trusts and dealing with any issues or obstacles that may arise.

If you select a professional trustee, bring up any questions or concerns you may have about the trust administration process. Feel free to ask questions about tax implications and other issues.

What if Your Agent or Trustee Cannot Serve?

You may name the same party or different parties to act as your successor trustee, health care proxy and financial power of attorney agent. You must also name an alternate successor trustee and alternate agents for your power of attorney and healthcare proxy.

You need to name alternates because, over time, events may happen that affect the parties you’ve named as your trustee and agent. For instance, your selected trustee or agent may:

1. pass away before or soon after your death
2. become injured or ill in a way that makes fulfilling the duties impossible
3. marry or take on other responsibilities that make fulfilling the duties difficult
4. become mentally incapable of fulfilling the duties
5. relocate across or outside the U.S.
6. decide that he or she is unwilling to serve as a trustee or agent

Do You Have the Estate Plan You Need?

Estate planning is imperative for business owners, families, and anyone who wants to provide for loved ones. If you are age 18 or older and own anything of value or have children, you should have an estate plan in place, but there is no one-size-fits-all plan. Every estate plan is unique.

Estate planning is more than writing a will. In New York, an effective plan requires an experienced Long Island estate planning attorney who will help you with the creation of the necessary legal and financial documents.

Effective estate planning means making informed choices to ensure that your wishes are carried out – with minimal legal interference – after you pass away or if you become incapacitated.

Who Should Prepare Your Estate Planning Documents?

Davidov Law Group provides estate planning services to our clients on Long Island and throughout New York. A Nassau County estate planning lawyer at Davidov Law Group will address your concerns and prepare the estate plan that’s right for you and your family.

Our award-winning attorneys offer a full range of estate planning services. You can begin planning your estate now or learn more about the services we offer by promptly contacting Davidov Law Group at 516-253-1366 to schedule a free consultation with no obligation.

Some Vital but Basic Facts to Know About Trusts.

Simply put, a trust is a legal entity that allows you to transfer your assets and holdings to the ownership of a trustee.

A living trust can either be drafted as revocable or irrevocable. Depending on the type of trust, you can be your trustee or name another trusted relative or friend to hold that position. The trustee’s job is to assume a fiduciary role; legally, this means they are required to act only in the best interests of the trust beneficiaries.

Your beneficiaries are the family members, loved ones, or other heirs you want to benefit from your trust. For example, you could have a trust drafted to help your spouse and children.

Your trust document will be professionally drafted by an experienced and knowledgeable estate planning attorney to precisely detail how you want the assets in the trust to be managed and distributed to your beneficiaries when you die or become incapacitated. Your appointed trustee will ensure that these precise wishes are carried out.

Even if you have moderate assets and plan to pass them on, forming a trust can ensure this is done according to your wishes and make the entire process more efficient and easier to manage.

What is Revocable Trust and How Could I Use It?

A revocable living trust is, in simple terms, revocable, meaning it can be changed, altered, or even eliminated during your lifetime. A revocable living trust can be self-settled. This means that you, as the trust’s grantor, can also be its beneficiary, or it can be a third-party trust in which the beneficiary is another person. The primary benefit of this type of trust is avoiding probate at the time of death while maintaining complete control over the trust while you’re alive. Since the trust owns all your assets, they are not subject to the probate process and are distributed directly to the beneficiaries you name in the trust.

Also, a revocable living trust can protect you (as the “grantor”) against a conservatorship if you become incapacitated. The revocable trust prevents your family from going to court to obtain a conservatorship to manage your assets; your trustee would immediately assume control over the entire trust and its assets.

What is an Irrevocable Trust, and How Can It Benefit Me?

First, an irrevocable living trust cannot be changed, altered, or canceled after establishing the document. An revocable living trust becomes irrevocable when you, as the grantor, die, but an irrevocable trust cannot be changed when it’s created. It remains irrevocable throughout your life.

There are some precise cases when you can alter an irrevocable trust. For example, if you have a charitable trust, you may be able to modify its terms to comply with new federal or state tax laws.

Usually, one of the main reasons to draft an irrevocable living trust is to protect your assets from estate taxes. Because asset ownership is transferred from you (as the grantor) to the trust, you no longer have any control over these assets or holdings, and they are not considered as part of your estate when you die. Those assets and property held in the irrevocable trust will be exempt from taxation.

Additionally, an irrevocable living trust can be used quite effectively to protect your assets against debt settlement judgments or when calculating assets to determine your eligibility for specific government programs such as Medicaid or Social Security Disability.

Because you have transferred ownership of your assets to the trust, they no longer are counted as your assets. It is difficult for a creditor to obtain a judgment against an irrevocable trust. Assets held in an irrevocable trust cannot cause a disabled person to become ineligible for federal or state benefits.

You must note, though, that every financial circumstance differs and to credibly ascertain which type of trust meets your specific needs, the professional advice and guidance of a Long Island estate planning lawyer is mandatory.

What Are the Main Differences Between a Revocable and an Irrevocable Trust?

There are numerous types of trusts you can establish. For example, there are grantor trusts, A/B trusts, testamentary trusts, special needs trusts, etc. However, they all share one thing: trusts are either revocable or irrevocable.

As the grantor (the person drafting the trust), you can change or end any type of revocable trust at any time during your lifetime.

This means that you can: So that means you could:

• Add or remove beneficiaries, heirs, or loved ones at any time.
• Transfer more of your assets into the trust or remove assets it already holds.
• Change any of the terms of the trust and how its assets should be managed or distributed.
• End the trust at any time you wish.

When you die, a revocable trust automatically becomes irrevocable. At that point, its terms cannot be changed.

Any irrevocable trust is essentially “set in stone” and cannot usually be changed for any reason. When you draft an irrevocable trust during your lifetime, any assets you put into it must remain in the trust. You no longer can add or remove beneficiaries, heirs, etc., or change any of the trusts’ terms or conditions.

There are many types of irrevocable trusts, such as:

• Medicaid protection trust
• A qualified domestic trust (QDOT).
• The qualified personal residence trust (QPRT).
• Supplemental needs trusts, charitable trusts, and many more.

All types of irrevocable trusts are either testamentary trusts or living trusts. A testamentary trust is created in your will and is implemented only after you die. Since a testamentary trust doesn’t take effect until after your death, you usually can make changes until then when the trust becomes irrevocable. Also, note that this type of trust won’t transfer assets outside of probate since you (as the grantor) own the assets at your death.

I Need More Information on Irrevocable and Revocable Trusts; How Should I Proceed?

Irrevocable and revocable trusts can benefit your estate and protect your assets and your family’s financial future when you are gone, but all estates and their holdings are unique. Yours is no exception. Therefore, to rationally and prudently decide which type of trust can best serve your needs, the advice and compassionate guidance of an experienced estate planning attorney is necessary.

The primary function of any trust is to protect your estate and ensure your detailed and precise wishes are carried out after your death or incapacitation. By thoroughly discussing your assets and concerns with a professional, expert, and empathetic Long Island estate planning law firm, you can ensure whatever you decide is the right fit for you, your finances, and your family’s future.

The estate planning law team at the Davidov Law Group has a long and successful history of helping New York clients fully comprehend what a professionally drafted trust can do for them and their families and loved ones.

Call them today at 516-253-1366, and they will ensure the financial soundness of your estate and your family’s future.

What Is the Role of Your Executor In the Management of Your Estate?

Typically, your Executor is named in your Will and, when you die, will be appointed by the New York Surrogate’s Court when your Will is admitted to probate.
The Executor’s job is to collect all your assets, finalize all your affairs, pay taxes, debts, and claims, and, most importantly, distribute your net assets and estate following the directions you have left behind in your Will and estate plan.

This process may appear legally straightforward, but in New York State, where probate is common, various complexities are involved. Therefore, your New York State Executor has many legal responsibilities and powers when managing the distribution and settling of your estate.

In your Estate Plan, your Executor should be a trusted and skilled person who you are confident will carry out all the provisions of your Will and ensure your last wishes are precisely carried out. Appointing an executor is critical, and obtaining a New York estate planning lawyer’s skilled, experienced advice and guidance is always prudent and significantly helpful.

One vital point to remember is that your chosen Executor is appointed after your Will is admitted to probate. If you have not signed a Will, your family or friends must ask the Court to appoint an Administrator to settle your estate; something you probably do not want to happen.

Both an Executor and Administrator have a great deal of authority and responsibility when managing your estate. They must act in your heirs’ and beneficiaries’ best interests. They are your estate’s fiduciaries and have specific duties of fair dealing regarding your beneficiaries. They can never take advantage of estate assets or situations for personal benefit. So, their choice is critical to ensuring your final wishes for your family and that they follow all the challenging regulations of the New York State probate process.

What Qualities Should I Look For in An Executor to My Estate?

First, it’s clear that you always want to do the right thing regarding your family; however, that reasoning can backfire if you fail to choose the right and qualified Executor to ensure that your wishes are precisely followed.

A knowledgeable New York estate planning attorney would advise you to pick a responsible, mature, and trusted loved one, relative, friend or professional so that your wishes are followed precisely and your estate is managed with the least amount of family stress.

So, the question becomes, “Who should I choose as my executor, and why?” There are many qualities your Executor should have just; some of the most important of them are:

• They must be ethical and dependable people.
• They should have high organizational skills, as managing a will (or even harder, an estate) requires diligence and procedure.
• They should be financially well-versed so that when family questions arise, they have the pertinent answers.
• They must be fair and impartial to all family members, heirs, and beneficiaries.
• They must have the time and availability to serve, as no one knows when their services may be needed is not known.
• Most importantly, they must have compassion and empathy, as this is a stressful and enormously emotional time for your family, beneficiaries, etc.

It is apparent that deciding on an executor can be challenging. Drafting a will to ensure your wishes are followed and to avoid family arguments is crucial. It is best to do this with the help of an attorney and not alone.

By getting the professional advice of a local Long Island estate planning lawyer, you can be sure that the entire process will be done accurately, professionally, and with the empathy it demands.

What Are Some Crucial Requirements and Questions I Should Ask a Possible Executor?

An executor has many responsibilities and will be intimate in managing your estate after you’re gone. Therefore, many people choose a close friend or relative who thoroughly understands and respects their wishes and those of their family and beneficiaries.

While every state has rules about who may serve as executors, most states impose three basic requirements, they are:

• They must be of legal age.
• They should be a U.S. resident.
• They cannot be legally incapacitated.

This may sound simple enough, but any experienced, qualified New York estate planning attorney will explain that there are other questions of significant importance that you should ask.

Such as:

• Do they have the time and willingness to deal with all the paperwork? – Their duties involve paying bills, dealing with debtors, insurance companies, hospitals, tracking financial accounts, etc.
• Do they have financial problems of their own? – An executor is charged with handling all the financial details of your estate, so choosing someone with financial competence is a smart move.
• Are they able to deal calmly and reasonably with potential heirs and creditors? – An executor must be level-headed and capable of resolving possible conflicts after your death.
• Are they well organized and capable of juggling several tasks? – A vast amount of paperwork is involved in settling an estate, so choosing someone with strong organizational abilities is necessary.
• Are they well-versed in financial and legal experience? – This is not mandatory but will undoubtedly be a big plus. Suppose the person you choose as Executor of your estate does not have a quantified level of experience. In that case, they should work closely with a qualified, competent, and experienced estate planning lawyer who will professionally assist them in settling your affairs.

Is Choosing My Estate Planning Attorney as My Executor a Good Idea?

This option has many advantages, especially if your estate is large and complex. Unlike a loved one or family member, your estate planning lawyer is less emotionally involved in the entire process. They can remain neutral, focus entirely on their duties, and ensure your wishes are precisely followed.

Being an executor can be a complex and confusing process under the best of circumstances, especially if probate is involved.

No matter how competent, a close family member or friend may have difficulty executing their executor functions while grieving your death.

For these and many other sound reasons, many people decide to appoint their empathetic and qualified estate planning attorney as the Executor of their estate. This option provides distinct advantages and should always be a strong consideration. The New York State probate laws are complex, and all this legislation must precisely be followed, or your beneficiaries and families could suffer financially.

Your competent, experienced, and compassionate Long Island estate planning attorney has the legal knowledge and access to resources that the average person does not. Your lawyer handles these complex estate planning issues all the time, so they are in a better position to settle accounts, transfer ownership of assets, tie up other loose ends, and ensure your wishes are carried out.

I Need Help Choosing an Executor; How Should I Proceed?

Of course, every estate and familial situation differs. Still, choosing an executor you trust and who has the right qualities to carry out this critical role is essential. You should discuss this appointment with the individual beforehand and ensure they are willing to accept this crucial and demanding responsibility.

The estate planning and administration lawyers at the Davidov Law Group are award-winning lawyers who have assisted Long Island clients since 2001 in making this critical decision and professionally drafting and administering their estates.

Call them today at 516-253-1366 for a free consultation on your unique case. They will passionately and professionally help you make the best choices possible so that your family and heirs are cared for precisely as you want them to be.

Why is Integrating Financial Planning with Estate Planning Important?

Integrating financial planning with estate planning is a crucial step in preserving and maximizing your wealth. It’s not just about having a will or a trust; it’s about creating a thorough plan that considers your financial objectives, your family’s requirements, and the tax consequences of your choices.

In New York, the laws surrounding estate planning can be complex, and without careful planning, a large part of your wealth might be allocated to taxes rather than to your loved ones. By integrating financial planning with estate planning, you can make sure your wealth is allocated as you desire and that your family is financially supported.

What are the Benefits of Integrating Financial Planning with Estate Planning?

Integrating financial planning with estate planning offers several benefits. It allows you to have a clear and comprehensive understanding of your financial situation. This includes your current assets, liabilities, income, and expenses. With this information, you can make informed decisions about your financial future and the legacy you wish to leave behind.

Integrating these two aspects of planning can help you minimize your tax liability. In New York, estate taxes can significantly reduce the wealth you leave to your heirs. By carefully planning and making strategic financial choices, you can minimize these taxes to ensure your loved ones gain the most advantage from your estate.

This integrated approach can provide peace of mind. Knowing that you have a plan in place that takes care of your financial needs and ensures that your estate will be handled according to your wishes can provide a great deal of comfort.

What Does Financial Planning Involve?

The process of financial planning assists you in managing your finances to achieve your life goals. It involves evaluating your current financial status, setting financial objectives, and devising a strategy to achieve them. This could include saving for retirement, investing in real estate, or planning for your children’s education.

In New York, a skilled financial advisor can assist you in understanding the intricacies of the financial landscape, from understanding the tax implications of your investments to helping you plan for unexpected expenses. They can also help you understand how your financial decisions can impact your estate planning.

What are Some Strategies for Integrating Financial Planning with Estate Planning?

There are various methods to combine financial planning with estate planning. A frequently used approach involves trusts, which serve as an effective means to manage your assets while alive and ensure their distribution aligns with your wishes after passing. Trusts also offer notable tax advantages.

Another method involves investing in assets that can be transferred to your heirs without incurring taxes. In New York, certain assets, like life insurance payouts and retirement funds, can be inherited by your heirs without being subject to estate taxes.

Gifting is also a strategy that can be used to decrease the size of your taxable estate. By transferring assets to loved ones during your lifetime, you can diminish your estate’s size and potentially lower your estate tax obligations.

What are the Common Mistakes to Avoid in Financial and Estate Planning?

When integrating financial planning with estate planning, it’s important to avoid common mistakes that could potentially jeopardize your wealth preservation efforts. One such mistake is failing to update your estate plan regularly. Life changes such as marriage, divorce, the birth of a child, or the death of a loved one can significantly impact your estate plan. It’s crucial to review and update your plan periodically to reflect these changes.

Another common mistake is not considering the tax implications of your financial decisions. In New York, certain financial decisions can have significant tax consequences. For instance, the type of assets you own, how they’re held, and how they’re distributed can all impact your estate tax liability. A talented financial planner can help you understand these implications and make informed decisions.

Lastly, a common error is attempting to handle the intricacies of financial and estate planning independently. While it’s possible to do some aspects of financial and estate planning without professional help, the laws surrounding these areas can be complex and confusing. Working with an experienced attorney can help ensure that your plan is legally sound and optimized for wealth preservation.

What are the Specific Considerations for New York Residents?

For residents of New York State, there are specific considerations to keep in mind when integrating financial planning with estate planning. One of the most important considerations is New York’s estate tax. Unlike many other states, New York still imposes an estate tax on estates exceeding a certain value. This can significantly impact the amount of wealth you’re able to pass on to your heirs.

Another consideration is New York’s laws regarding wills and trusts. New York has specific requirements for creating a valid will or trust, and failing to meet these requirements can result in your will or trust being declared invalid. This could potentially result in your assets being distributed according to New York’s intestacy laws, rather than according to your wishes.

New York residents should also consider the potential impact of the state’s probate process on their estate. Probate can be a lengthy and costly process, and it can significantly reduce the amount of wealth you’re able to pass on to your heirs. However, with careful planning, it’s possible to avoid probate and ensure that your assets are distributed according to your wishes.

Integrating financial planning with estate planning is a complex process that requires careful planning and experienced guidance. If you’re in New York, and need help with this process, call Davidov Law Group today at 516-253-1366 for a free consultation.

America is a country of immigrants. Since its very beginnings, we have welcomed those fleeing persecution and seeking a new life. One of our most iconic treasures, the Statue of Liberty, is an ode to the people who have chosen the U.S. as their home. While America opens its arms to all people, the path to citizenship can be long. To ensure the country’s security and stability, becoming a U.S. citizen is an involved process that can take many years.

Because America is welcoming to those from other countries, people are allowed to live and work in the U.S. while they work towards citizenship. During this time, non-U.S. citizens may become the beneficiaries of wills or living trusts. Non-U.S. citizens may also make their own wills and trusts. If you or a loved one is a non-U.S. citizen who has either been named a beneficiary in someone else’s estate plan or if you are planning on making your own, it is vital to understand your rights under the law.

What is Estate Planning?

Estate planning is the process of determining how assets and other concerns will be dealt with when a person comes ill and/or passes away. Estate plans attempt to cover all of a person’s legal and financial concerns. Things addressed in an estate plan can include:

•       Medical Directives
•       Power of Attorney
•       Inheritance of Property and Money
•       Custody of Minor Children
•       Wills
•       Living Trusts

An estate plan lays out a course of action. It can transfer power of attorney to a loved one or trusted individual to take care of financial concerns. It can also list medical directives for an individual’s care, particularly when one is unable to make those decisions themselves. Estate plans can also establish who will obtain custody of minor children. They can also include living trusts and wills. Living trusts are an arrangement in which a living person transfers responsibility of assets to a trustee. This trustee will then be responsible for distributing those assets. A will is different from a trust. It contains instructions for distributing assets after a person’s death. A will can also contain instructions for funerals or burials and other specific information not covered elsewhere.

Someone does not have to be a U.S. citizen to be named as a beneficiary in a will or trust. The United States allows people to distribute their personal property to anyone they wish. The law also allows non-U.S. citizens to be executors of wills, as long as they reside in the same state where the will applies. This means non-U.S. citizens can inherit property from U.S. citizens. It also means non-U.S. citizens can be involved in different stages of the estate planning process.

Who are Considered Non-U.S. Citizens?

A non-U.S. citizen is anyone who does not hold U.S. citizenship. The majority of people currently residing in the United States qualify as citizens. This is because according to the 14th Amendment, anyone born in the U.S. automatically becomes a citizen.

People who come to the United States fall into different categories. While there are many sub-types of immigrant status, they broadly fall into one of three categories:

•       Lawful Permanent Resident (LPR)
•       Nonimmigrant
•       Undocumented Immigrant

Lawful permanent residents are people who have applied to live and work on a long-term basis in the United States with the intention of becoming citizens. They receive a document called a Green Card. This allows them to receive certain benefits such as Social Security and Medicare.

Nonimmigrants are people who have come to the United States intending to live and work here but who may not be seeking citizenship status. There are more than forty types of Nonimmigrant.

Undocumented immigrants are those who have entered the United States but not gone through the legal process of being recognized as immigrants. Undocumented immigrants may not be able to work legally in the United States and may face other difficulties.

How Does Citizenship Status Impact Estate Planning?

People living in the United States are subject to U.S. inheritance laws. These laws can vary depending on the legal status of the person who is inheriting money or property.

Although non-U.S. citizens can inherit wealth and property, they may be subject to certain penalties. For example, a U.S. citizen can leave their citizen spouse any amount of money in a will. A non-U.S. citizen may be subject to certain taxes and penalties that reduce the inherited amount.

Non-citizens may also run into difficulties when it comes to estate taxes. Estate taxes are taxes paid on inherited wealth. The estate tax as of 2024 is 40%. Currently, U.S. citizens inheriting wealth are exempt from taxes on the first $12,920,000. Non-U.S. citizens are only exempt from taxes on the first $60,000. This means if you are a non-U.S. citizen inheriting any amount of money over $60,000, you will have to pay a 40% tax. This means you could lose almost half of the amount you might inherit.

Many of these taxes and penalties can change depending on a non-U.S. citizen’s category status. For example, a Lawful Permanent Resident may not be penalized as much in taxes as a nonimmigrant. There are some ways a non-U.S. citizen can avoid certain taxes and penalties. If a non-U.S. citizen is married to a U.S. citizen, they can set up a Qualified Domestic Trust (QDOT). This is a special type of trust for spouses. The QDOT allows the citizen spouse to leave money and property to the trust instead of their spouse directly. The non-citizen spouse is the named beneficiary of the trust. This allows the non-citizen to collect assets from the trust when the citizen spouse passes away.

How Should I Handle Estate Planning if I am a Non-U.S. Citizen?

Estate planning already involves many complex laws that are difficult for U.S. Citizens to understand. These laws only become more complicated when non-U.S. Citizens become involved. If you or a loved one’s estate plans involve a non-U.S. citizen, don’t hesitate to contact the law offices of the Davidov Law Group. We’re located at 1981 Marcus Avenue, Suite 231 New Hyde Park, NY 11042, one mile West of Clinton G. Martin Park and two-and-a-half miles South of North Shore University Hospital.

Our dedicated attorneys are highly experienced in the complicated world of estate law. We know all of the difficulties faced by non-U.S. citizens inheriting wealth and are experienced in making sure you and your loved ones collect everything you’re entitled to. Our flat-rate pricing means there are no hidden or surprise fees. You don’t even have to pay us until after we’ve settled your case and gotten you everything you deserve.

We have a deep compassion for non-U.S. citizens and want to make sure their legal rights are respected. If you or a loved one have concerns about estate planning involving a non-U.S. citizen, contact the Law Offices of the Davidov Law Group right away at 516-253-1366 or email us for a free consultation. Immigration status shouldn’t be a roadblock to inheriting what’s rightfully yours.