Davidov Law Group

E-Book Download

Call for your complimentary assessment

(516) 253-1366
Call Us Now
E-Book Download

What Are the Differences Between Revocable and Irrevocable Trusts?

Latest News

by

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.

by

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.

by

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.

by

New York Attorney Giving Non-U.S. Citizens the Representation You Need for Estate Planning

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.

by

How Can I Incorporate Philanthropy into My Estate Plan?

Incorporating philanthropy into your estate plan can be an excellent way to leave a lasting legacy and support causes you care about. In New York, there are several ways to do this. One common method is through a bequest in your will or trust. A bequest is a gift of money or property that you leave to a person or organization in your will. You can specify a certain amount of money, a percentage of your estate, or a particular asset to be given to your chosen charity. Another option is to establish a charitable trust. This is a type of trust where a portion of the trust’s assets are used for charitable purposes. The remainder of the trust’s assets can be distributed to your heirs. Charitable trusts can offer significant tax benefits, but they are more complex to set up and manage than simple bequests.

What Are the Tax Benefits of Including Philanthropy in My Estate Plan?

Including philanthropy in your estate plan can provide significant tax benefits. Charitable contributions made through your estate plan are generally deductible from your gross estate for federal estate tax purposes. This can significantly reduce the amount of estate tax that your estate may owe. For example, let’s say you have an estate worth $5 million, and you leave $1 million to charity. Your taxable estate would be reduced to $4 million, potentially saving thousands of dollars in estate taxes. However, the tax benefits of charitable giving can be complex, and the rules vary depending on the type of gift and the type of charity. It’s important to consult with an experienced attorney to understand the potential tax implications of your charitable giving.

What Are Some Considerations When Choosing a Charity for My Estate Plan?

When choosing a charity to include in your estate plan, it’s important to do your research. Not all charities are created equal, and you want to ensure that your gift will be used effectively and in line with your values. Consider the charity’s mission and whether it aligns with your own goals and values. Look at the charity’s financial health and how it uses its funds. There are several online resources that can help you evaluate a charity’s effectiveness and financial health, such as Charity Navigator or the Better Business Bureau’s Wise Giving Alliance. Also, consider whether the charity is a qualified organization for tax purposes. In general, only gifts to qualified organizations are tax-deductible. Your attorney can help you determine whether a particular charity is a qualified organization.

What If I Want to Support a Cause but Don’t Know Which Charity to Choose?

If you want to support a cause but aren’t sure which charity to choose, an experienced attorney can help. They can provide guidance on how to evaluate charities and choose one that aligns with your goals and values. One option is to set up a donor-advised fund. With a donor-advised fund, you can contribute to the fund and receive a tax deduction now, and then recommend grants to charities over time. This can give you time to research and choose the charities you want to support.

Alternatively, you could contribute to a community foundation or a field-of-interest fund. These organizations support a variety of charities in a specific geographic area or field of interest. Regardless of the specifics, an experienced attorney can provide valuable guidance and ensure that your plan is legally sound and aligns with your goals.

What If I Want to Change My Philanthropic Goals in My Estate Plan?

It’s not uncommon for your philanthropic goals to evolve over time. Perhaps you’ve become passionate about a new cause, or you’ve learned more about a charity and want to adjust your support. Fortunately, your estate plan isn’t set in stone and can be modified to reflect your current wishes. If you’ve made a bequest in your will, you can change it by creating a new will or adding a codicil, which is a legal document that amends your existing will. If you’ve set up a charitable trust, you might be able to change the beneficiary charity, depending on the type of trust and its terms. However, changing your estate plan can have legal and tax implications, so it’s important to consult with an experienced attorney. They can help you understand the potential impacts of the changes and ensure that your new plan aligns with your current goals and complies with New York law.

How Can an Experienced Attorney Help with My Philanthropic Estate Planning?

Incorporating philanthropy into your estate plan can be complex, and it’s important to get it right. An experienced attorney can help you understand the different ways to include philanthropy in your estate plan and the pros and cons of each option.

They can help you set up a charitable trust, if that’s the right option for you, and ensure that it’s properly managed. They can also help you understand the tax implications of your charitable giving and ensure that you’re maximizing your tax benefits. In addition, an attorney can help you choose the right charity and ensure that your gift is used in the way you intend. They can help you draft a gift agreement that specifies how your gift should be used and what happens if the charity doesn’t follow your instructions. Incorporating philanthropy into your estate plan is a significant decision that can have lasting impacts. It’s important to get it right, and an experienced attorney can provide the guidance and expertise you need.

If you’re considering including philanthropy in your estate plan, call The Davidov Law Group today at 516-253-1366.

by

What Does a Health Care Proxy Do?

The circumstances of your life can change rapidly. When faced with a medical emergency, a terminal illness, or cognitive decline due to advanced age, you may find yourself unable to make your wishes known regarding your medical care. Utilizing a health care proxy to assign an agent familiar with your preferences for medical and end-of-life treatments can ensure that you will always be cared for in the way you want.

The agent you designate only assumes the role of legal decision-maker for all your medical care needs if your doctor determines you have become incapacitated and cannot make your own decisions. Your health care agent is not responsible for paying for your medical bills, and they are not tasked with overseeing your finances. Their role is solely to evaluate your medical situation and make the treatment decisions they believe are in your best interests.

Acting as an agent can be a heavy responsibility. Your first choice of agent may be unable or unwilling to fulfill their duties due to illness, injury, unfitness for the position, or other factors. Selecting one or more alternate health care agents ensures you have a trusted individual to make choices on your behalf if the worst should happen. A knowledgeable New York health care proxy lawyer can help you draft a clear and detailed document to designate your agent(s) and outline your treatment preferences so you and your loved ones have the peace of mind you deserve. 

How Do You Designate Health Care Agents?

The documents you put in place to guide your future medical care if you cannot do so on your own are known as advance directives. These documents can include a living will, a Do Not Resuscitate Order (DNR), and a health care proxy. A New York health care proxy form can be used to appoint your health care agent and alternates. It can also provide further details about your treatment wishes if you choose. The document does not need to be notarized. However, to make it legally enforceable, you must sign it in front of two adult witnesses. After creating the document, you should provide your doctor with a copy to place in your medical record and give copies to your chosen agent(s) and lawyer. 

When Can an Alternate Health Care Agent Take Over From the Designated Agent?

Your first choice of health care agent will automatically be given the ability to access your medical information and direct your treatment upon a doctor’s assessment that you are no longer capable of making your own decisions. This individual will continue to have this responsibility until your recovery or passing. Your alternate agent will only be empowered to make health care decisions for you under certain circumstances, including:

  • The unavailability or unwillingness of the original agent to act, with confirmation in writing by your doctor.
  • Disqualification of the first-choice agent by the court.

You can also use your health care proxy document to specify situations where you would like your alternate agent to assume the right to act. For example, you may wish to appoint a secondary agent in the event your first choice is living outside the state or country. This detail could prevent untimely delays in treatment decisions and reduce the stress on your loved ones. However, wording the proxy carefully and clearly with the assistance of a skilled lawyer is vital to avoiding confusion and family disagreements during an already difficult and emotionally charged time.

What Should You Consider When Picking Someone to Act as an Agent or Alternate?

Your agent and alternates must be competent adults whom you trust to make potentially difficult medical decisions on your behalf. Many people appoint their spouse, adult child, other relative, lawyer, or close friend to serve as an agent. You should feel comfortable discussing your end-of-life and palliative care wishes with this person so they understand your preferences and can act accordingly. You may also choose to include clear instructions in your health care proxy or draft a separate living will to ensure there is no ambiguity about your stance on certain treatments and situations, such as feeding tubes, life support, and organ donation. This information can help guide your agent when they are faced with challenging decisions.

The potential agent’s tolerance for discomfort or conflict should also be considered if you have close family members with strong opinions that differ from your personal preferences. You will want to appoint someone who will always act in your best interests despite outside pressures. Some individuals may not want to take on this role for a variety of reasons, so it is crucial to discuss your plan with the potential agent prior to drafting your health care proxy to make certain they are willing and able to act when necessary.

Can You Make Changes To Your Proxy?

You can always change your health care proxy by completing a new form. It is highly recommended to review your proxy every few years and after major life events, such as a divorce, marriage, or diagnosis of terminal illness, to be sure it still meets your needs. If you appointed your spouse as your health care agent or alternate, that designation is automatically canceled upon divorce or legal separation. If you want that individual to continue serving in that capacity, you must create a new document stating your decision.

How Can Our Legal Team Help You Protect Your Health?

Planning for your future health needs is essential at any stage of your life. Drafting a health care proxy as part of an overall estate plan can be a compassionate gift to your loved ones. By appointing a trusted and well-informed individual to act for you when you are unable to direct your own care, you can prevent unnecessary stress and painful family disagreements while making certain your preferences are honored.

An experienced lawyer from Davidov Law Group can help you ensure that your health care proxy covers all eventualities and gives clear guidance regarding your values and wishes to your agent and alternate(s). We aim to build strong, lasting relationships with our clients and ensure their plans adjust and grow as their lives change. To learn how we can serve you, contact our law firm today at 516-253-1366.

by

What is Nursing Home Medicaid?

Nursing Home Medicaid is an all-encompassing program for older adults that covers all Medicaid services. Examples such as lab work, hospital stays, prescriptions, adult day care, and more are all part of the Medicaid program.

It’s important to discuss your options regarding your estate and your healthcare with an experienced local attorney. They are trained to help clients like you and your families prepare for the future. Each chapter of our lives will bring different circumstances, and it’s best to plan for each of them.

How Does New York Help Their Elderly Population?

Each state has a plan in place for our elderly loved ones. Programs are available if applicable, and you can choose the path that works best for you and your family as you approach your elderly years.

New York State has many programs and services that may interest you as you approach this stage of your life, including medical and non-medical assistance at home and after moving to a nursing home. Work with your competent lawyer to determine what is best for you and ensure you are eligible.

Am I or My Loved Ones Eligible for Medicaid?

When working with your trusted attorney, you can explore your options and ensure you can take advantage of the benefits available. As eligibility is primarily based on income and resources, you must have a solid plan in place if you wish to be eligible for Medicaid and other programs. By strategically handling your assets ahead of time through the help of an experienced estate planning attorney, you can set yourself up now for success in the future. For you and your family.

Protecting your assets and how they are accessible may make the difference you need to be eligible for benefits. There are several ways to achieve this, and you can work through the options and decide what is best for you and your family.

Plan Well In Advance

Nursing Home Medicaid typically includes a five-year look-back period regarding assets. This can mean that if you waited until just before the nursing home age to transfer assets, they can look back at those assets or transactions and impose penalties.

This is why you must plan well in advance for your later years and have an effective strategy to protect yourself, your loved ones, and your assets. Maybe a trust is necessary to hold and protect your assets and ensure that they aren’t factored into your eligibility requirements for Medicaid. Maybe there is another strategy that, based on your situation, works best for you. Your experienced and professionally trained attorney is there to assist you.

What Income is Included?

Most sources of income will be counted towards your eligibility equation for Medicaid. Income such as wages, alimony payments, annuity payments, Social Security Income, Social Security Disability Income, and IRA distributions may all count as income resources.

If you are married, and your spouse will remain in the home, also referred to as a “community spouse,” their income is not counted, and they have a certain level of protection to keep them from being impoverished. This protection is typically in the form of a Monthly Maintenance Needs Allowance, or the state of New York; it’s called Community Spouse Monthly Income Allowance. This monthly limit allows the spouse entering the nursing home to transfer some or maybe all of their income to the community spouse, so it doesn’t count toward their income for Medicaid eligibility.

However, if your spouse makes more than the limit (set by each state), you may not be able to utilize this option. Speak with your attorney to fully understand the limitations and how to proceed.

What Assets Are Included?

Nearly all of your assets will be factored into the eligibility equation, making planning and protecting them imperative. Assets such as cash, stocks, bonds, vacation homes, all bank accounts, and investments will all be considered.

Generally speaking, your house, car, personal belongings, burial funds (planned and designated) up to a certain amount, and life insurance up to a certain amount are not included in your assets as eligibility. Most IRAs or 401Ks in payout status (or dispersing the Required Minimum Distribution) are exempted from the included assets.

How Can I Ensure That I Am Eligible?

By working with an estate planning attorney and going through all of the options that you have available to you, you can formulate a solid plan that you and your family can rely on. For example, maybe you choose to spend down some of your assets so that they aren’t standing in the way of you benefiting from Medicaid in the future. Maybe you rearrange some assets to achieve the same outcome.

Changes in the system occur often, and the look-back period may be changing soon, which can mean that planning in advance can look differently than it does today. Don’t miss eligibility by a small amount and deny yourself all the programs and services available simply because you didn’t plan.

Call our office today at (516) 253-1366 to get started. We will sit down and go through all of your assets, discuss what options would be best for you, and then work with you to put an effective strategy in place. Your legacy is important. Your family can continue to be provided for later in life and even after you are gone with effective planning.

We look forward to serving you and your loved ones at this important stage of your life.

by

The Importance of Establishing Guardianship for Minor Children

Everyone hopes to outlive their children, but you also hope that they are adults and well established in life before you pass on. But what happens if you die while your children are still minors? While it can be temporarily uncomfortable to address these issues, making a plan for these worst-case scenarios is vital for the welfare and security of your child.

In situations where there are two parents, the other parent would naturally step in, but this isn’t the case for everyone. If one parent has already passed or is not a part of the child’s life, it’s important to think about who would talk over as guardian for your children. Learn more about how guardianship works in New York, including picking a suitable guardian and how guardianship is established.

Who is a Guardian and What Are Their Responsibilities?

A guardian is a person who is responsible for providing care, maintenance, and support to the minor individual under their guardianship. The guardian of a minor has the same rights as a parent to make decisions regarding their health care, education, religious upbringing, housing situation, and other essential matters. Any individual over the age of 18 with a sound mind can be appointed as a guardian. However, you should make your designation carefully after considering the potential guardian’s values, skills, resources, and availability, as well as the familiarity of the individual with your children. The court maintains oversight of the guardian’s actions, and guardians must file an annual report with the court to update them on the status of the protected minor. 

The duties of a guardian may vary depending on the type of guardianship granted, but some primary responsibilities include:

  • For guardians of the person:
    • Providing proper care, maintenance, education, and support.
    • Supplying food, clothing, shelter, and necessities.
    • Authorizing medical, surgical, dental, psychiatric, and psychological care.
    • Ensuring the protected person is appropriately trained and educated.
  • For guardians of the property:
    • Managing the individual’s money and property strictly in their interest.
    • Preserving and protecting the individual’s assets.
    • Creating an inventory of the individual’s assets.

How Guardianship Works in New York

Establishing a guardianship plan is a way to ensure that you have some say in who will take over raising your child if something happens to you and the other parent. This is done by naming someone, referred to as the guardian, to assume care of the child, who is called the ward. However, there are also other circumstances where guardianship may be needed. 

For example, if a parent abandons or neglects a child, is deported, or is physically or mentally unable to make decisions for the child, a guardian may be needed.

The court is tasked with appointing a legal guardian, and without a guardianship plan in place, your child may be placed in foster care or be put into the care of someone you wouldn’t have chosen. It’s important to understand that while you can make your wishes known through a guardianship plan, it’s not a guarantee. For example, in the state of New York, once a child is 14 years of age, they must consent to the appointment of the guardian. If your child doesn’t want your choice to be appointed, another guardian may be instituted instead.

What Types of Guardianship Exist in New York?

With the assistance of a knowledgeable estate planning attorney, you can create a guardianship plan that will safeguard your minor children, no matter what happens in the future. Several documents may be used to create a customized plan covering every eventuality. New York law makes provisions for at least three varieties of guardianship that can be utilized in different situations.

Standby Guardian

Emergencies can occur anytime and may impact your ability to be present or provide proper care for your child. By completing a Designation of Standby Guardian form, a parent can ensure that their child will receive immediate care from a trusted person without significant disruption if a specified event occurs. A standby guardian is an individual who is given temporary authority to care for a minor child while the parent or legal guardian is still alive, although the standby guardian may petition the court to make the arrangement permanent if the circumstances warrant it. 

The event that allows the standby guardianship to go into effect is known as a “triggering event.” Examples of triggering events may include:

  • Administrative separation between the parent and child, including incarceration, deportation, detention, and other events.
  • Doctor diagnosed mental incapacitation, which renders the parent unable to care for the child.
  • Physical debilitation, such as terminal illness, that causes the parent to consent to the initiation of the standby guardian’s authority.

The parent can specify whether they want the named standby guardian(s) to be the guardian of their child’s property, person, or both. For extra protection, the parent may choose one or several persons to act as standby guardians, in case a named standby guardian is unable or unwilling to assume responsibility when the triggering event occurs. It is important to note that if this designation is being made in anticipation of a specific triggering event, the standby guardianship must be approved by a judge prior to the event taking place. After completing and filing their form, the parent or legal guardian still retains full parental, guardianship, custodial, or caretaker rights and can revoke or cancel the standby guardianship at any time. 

Permanent Guardian

When creating your estate plan, it is crucial to consider who will care for your children long-term if you should pass away unexpectedly. Your co-parent will generally retain the right to be the guardian for your minor children in this event without any action required from the court. However, appointing a guardian in your Last Will and Testament provides protection if you and your co-parent are both deceased before your children become adults.

You should discuss your decision with the person you intend to name as your child’s guardian to ensure they are comfortable with the role and understand any expectations you may have. You may also wish to speak to your teenage children about your choice and allow for their input, as children over 14 may be consulted by the court for their consent before a guardian is appointed.

Guardian of the Property of a Minor Child

New York state law aims to protect the finances of minor children from fraud or mishandling. If a child receives assets valued at $10,000 or more from an inheritance, lawsuit settlement, or another source, a guardian of the property must be appointed. The guardian, working in conjunction with the court, is tasked with managing the child’s money until they turn 18. The designated individual has a fiduciary duty to act in the child’s best interests, and they cannot withdraw any funds without the consent of the court.

Factors to Consider When Choosing a Guardian for Your Child

While any person who is at least 18 years old and of sound mind can technically serve as a guardian for your children, it’s important to choose who will fill this role very carefully. Taking care of a child is an enormous responsibility — as you well know — and the person you choose should be physically able to care for the child, mentally prepared, and emotionally mature and be financially stable enough to support a child.

It’s also a good idea to choose someone who already has a solid, positive relationship with the child, as this can help ease the transition. Many people choose to name the child’s grandparent, adult sibling, or an aunt or uncle as a guardian. However, you may also choose a more distant relative or family friend if you feel they would be better suited.

Remember to factor in parenting philosophies as well as cultural and religious differences. If you want your child raised in a certain culture or religion, it’s important to consider this when you’re choosing a guardian.

Creating a Guardianship Plan

If you need to create a guardianship plan, your first visit should be to an attorney. A lawyer can help you understand how guardianship works in New York and help you make a plan that covers any specific scenario. A guardianship plan can be written into a will or created as a separate document that goes into play with a triggering event, such as a death, incarceration, or illness.

It’s also a good idea to ensure that you discuss your wishes with the person you intend to name as guardian and the rest of your family members, so there are no surprises when and if the time comes. This also ensures that the potential guardian is aware of their responsibilities and has the opportunity to ask questions, express concerns, or let you know that they don’t feel comfortable taking on that role.
Remember that any guardianship plan you create will still have to go through the court system to be put in place, so it’s important that all parties understand what that entails.

Can Guardianship Be Temporary?

Yes, in some cases, guardianships can be temporary. This may be done if there are temporary circumstances that keep the parents from being able to care for and make decisions for their children. For example, if the parent is in the military and is being deployed, it may make more sense for a temporary guardianship to be established so that the child can stay behind where their friends and school are. When the parent returns, the guardianship would be ended, and they would resume responsibility and care for the child. A temporary guardianship may also be used if a parent is very ill or is being incarcerated. A temporary guardian is usually referred to as a “standby guardian” in the state of New York.

How Do You Change or Rescind a Guardianship?

If the guardianship has not been put into place and you just want to make changes to who your appointed person would be, you can do this at any time. All you have to do is create a new document and destroy the old one. If the guardianship is already in place and the guardian no longer wants to or is unable to continue to care for the child, they must file a petition with the courts. The courts will review the circumstances and appoint a new guardian, if necessary.

How Can Our Estate Planning Law Firm Assist You?

Creating a guardianship plan isn’t difficult, and it’s something that’s important to ensure your children are cared for and that you have peace of mind if something were to happen. Whether you need help creating a guardianship plan or you wish to petition for guardianship, Davidov Law Group can help. Call 516-928-6594 to schedule an appointment to go over your case with an attorney.

by

Understanding Business Succession Planning

Ensuring that you have a strong estate plan set up for your personal property and assets can make things smoother and less stressful for your beneficiaries and provide you with peace of mind as you live out the rest of your years. But if you’re a business owner, you also need to make a plan for what you want to happen with your company should something happen to you unexpectedly. Keep reading to learn more about what business succession planning is, why it’s important, and how to create a solid succession plan.

Why Business Succession Planning Is Important

You’ve worked hard to build your business and make it a success, so it’s important to plan for the future when you may not be here to oversee every aspect and make every decision. Business succession planning involves making provisions for the transfer of ownership if you were to pass unexpectedly as well as creating processes that ensure that your business can function well without you.

The main objective of business succession planning is to ensure that your business, including the employees and customers who depend on it, faces as little disruption as possible if something were to happen to you. Larger companies are often more inherently set up for this because they may have more stakeholders and more leadership staff who are able to take over and keep things running, but small businesses can face immediate issues without a proper succession plan in place.

The Benefits of Effective Succession Planning

When done properly, a business succession plan can provide many benefits for you personally and your business’s overall health. A business succession plan lets you rest easy knowing your business is in good hands. It’s also good for your business because it means you’ve ensured that your business isn’t dependent on any one person.

You may have heard people in your industry refer to “hit by a bus syndrome,” which means that if any one person at your company was hit by a bus, the business would not be able to continue or would experience extreme hardship temporarily. For example, if only one person at your company knows how to run payroll and they get “hit by a bus” — which can also mean that they quit or are too ill to come into work — payroll can’t go out, which is extremely problematic. Effective succession planning ensures that your business continues to run smoothly no matter what happens.

Business Succession Laws and Regulations in New York

When you’re creating a business succession plan, it’s important to be aware of the various laws and regulations that govern these types of issues, specifically in regards to transfer of ownership. For example, there are specific rules for how much stock can be gifted to someone on an annual basis. Gifting stock is one way to transfer ownership, but if you don’t consult with an attorney, you could find yourself paying hefty taxes.

Another option is to set up transfer of ownership in the business through a trust, but these also have specific guidelines. An attorney can help you understand what type of trust is the best one for your situation and ensure that everything is done correctly to facilitate a seamless transition when it’s time.

The best way to ensure that your business succession plan is in accordance with New York’s rules and regulations is to develop it with the help of a qualified attorney.

Creating a Succession Plan

If you’ve never created a succession plan before and aren’t sure where to start, the team at Davidov Law Group can help. We can guide you through the following steps to ensure that your succession plan is appropriate for your business and has covered every possible contingency.

Assessing the business. The first step is to take stock of your business, including making a list of employees and their roles, customers and clients, vendors, and your profit and loss history.
Identifying potential successors. Once you know what you have to pass on, you’ll need to start identifying candidates to take over the business. You may want to consider both overall ownership here as well as identify employees who could step up into more responsibility if needed.
Plan how to get current employees and potential successors up to speed. If your successor hasn’t worked in the business before, it’s a good idea to get them familiar with what your company does and how it works long before ownership actually transfers. This step is also where you would start crosstraining or promoting the employees identified in the previous step.
Create the business plan. Meet with an attorney to solidify your succession plan and make it official.

Identifying Potential Pitfalls in Succession Planning

One of the main parts of creating a successful succession plan is to take an inventory of the pain points of your business operations. Ask yourself questions like:

What employees would I be lost without?
Is there anything that only one person can do?
Which of my lower-level employees are showing potential for leadership positions?
Who would I trust with my business?

Asking and answering these questions can help you get a better understanding of where you need to do some extra work to ensure that things can run smoothly if something happens. For example, if you have one key employee that seems to keep the place running, it’s a good idea to focus on cross-training others to start spreading out some of those tasks and ensuring you’re not relying too heavily on any one person.

Whether your business is just starting or you have years of profitable dealings, creating a business succession plan should be part of your larger estate planning. Get help ensuring your company’s future is secure when you work with the legal team at Davidov Law Group. Call our office today at 516-928-6594 to get started.