If a property owner dies with an outstanding mortgage that is in default, the lender will likely seek to foreclose on the property. However, it must take certain steps that vary depending on the type of mortgage, what relief is sought and whether the deceased had a will disposing of the property. The lender must … Read more
A Power of Attorney form authorizes someone to act as “an agent” (known as an “attorney-in-fact”) of the individual granting the power (the “principal”). An act taken by an agent has the same legal effect as if the principal were the one acting. New York law sets forth certain requirements that must be met for … Read more
One ground which can be raised to contest a decedent’s will (or a particular bequest) is that the decedent was subject to “undue influence.” Proving undue influence is difficult. The mere fact that someone was close to the person who died and may have been in a position to exert undue influence is not enough … Read more
IRAs and 401(k) plans are popular investment vehicles because of the tax benefits. Assets deposited into these accounts are only subject to income tax when they are withdrawn. The IRS sets a certain age at which withdrawals must start (currently 72) and provides for annual “required minimum distributions (RMDs).” These RMDs are calculated based on … Read more
When a couple prepares to marry, one question which may arise is whether they should enter into a prenuptial (or antenuptial) agreement, which among other things sets forth what happens to their assets in the event of a divorce. There are many situations in which this may be appropriate, including when there is a significant … Read more
If you are considering creating a trust, there are many considerations including analyzing the tax consequences. Taxation can get complicated if the trust, trustee, and beneficiaries are in different states with varying laws. Not surprisingly, many states are eager to tax trust income. The U.S. Supreme Court recently addressed this issue in North Carolina, but … Read more
Litigation can be a slow process and may continue for years before its resolution. What happens if a party to litigation passes away while it is ongoing? If you are involved in a lawsuit and the other party dies or if you are the estate representative of the person who passed away, there are several … Read more
During marriage, typically couples will name each other as beneficiaries of their retirement accounts, pensions, life insurance policies and similar assets. However, if a couple separates or divorces, they usually want to change their beneficiary designations to another person. As discussed in a previous post, it is important to talk with an estate planning attorney … Read more
As the calendar turns to Spring, the Yankees evil empire will try to best its own record of World Series wins. Whether they win or not, the heirs of their deceased owner, George Steinbrenner may have won a substantial victory in the form of significant estate tax savings thanks to a recent court case. Steinbrenner … Read more
If you want to discourage others from challenging your will, you can use an “in terrorem” or “no contest” will clause. Such provisions provide that if someone contests your will or any of its provisions, the person forfeits what they would have received under the will. The idea is to leave a disinherited heir enough money … Read more