When an individual wants to disinherit a family member, an “in terrorem” or “no contest” clause in his/her will can be effective. The clause can deter challenges to a will, but it does have its limits and should be used carefully.
Trusts & Estates
Suing over a trust? How to get into federal court.
Trusts are generally governed by state law and as such, disputes are usually handled in state courts. However, in some situations, suing in federal court may be an option and may have potential benefits to a party.
There are several reasons why a party may want its action adjudicated in federal court:
Don’t Leave your Heirs with Problems Probating your Will
Typically, probating your will is a straightforward process, but sometimes issues can arise especially when a will was executed years ago and witnesses have died or moved, or the attorney who drafted the will and oversaw its execution did not follow industry “best practices.” These issues could create problems for your chosen executor when he/she seeks to probate the will.
Tax Benefits of Using Your IRA Distributions to Donate to Charities
Donating to charity your IRA distributions can be an excellent way to both support causes that are meaningful to you and reduce your taxes. Fortunately, a provision of the Internal Revenue Code, which gives donor’s a significant tax benefit, was made permanent at the end of 2015 so individuals can now take advantage of the rules as an integral part of their tax and estate planning.
Can an “Irrevocable” Trust be Changed?
Under New York law, a trustee can modify an irrevocable trust in certain situations. The process, called “decanting,” permits alteration of a trust by “pouring” the existing (invaded) trust into a new trust. This gives the trustee surprising flexibility to create a new trust that will better accommodate changed circumstances, notwithstanding that the trust is irrevocable.
An Executor’s Guide to Settling an Estate
Executors are responsible for handling the administration of an estate until it is “settled” or closed. Once the assets have been marshaled, bills have been paid, specific bequests distributed, and any outstanding issues resolved, the fiduciary (the executor or administrator) must prepare an “accounting.” An accounting must be done before the estate’s remaining assets (called the “residuary”) can be distributed to beneficiaries and before the executor will be released from all claims regarding the administration of the estate.
When Can Executors Honor a Power of Attorney?
One of the responsibilities of an estate executor or administrator is dealing with beneficiaries of an estate. What appears to be a straightforward task can be complicated when the executor is contacted by someone who claims to hold a power of attorney (POA) for a beneficiary of the estate (also known as an “attorney-in-fact”). An attorney-in-fact is typically involved when a beneficiary is elderly or disabled and cannot act on his/her own behalf. There are special rules in place for New York executors when they deal with an attorney-in-fact. They cannot necessarily recognize the POA unless certain requirements are met.
How to Handle Digital Assets in Your Estate Plan
Increasingly, individuals are accumulating digital assets that they may want to pass on after their death. Social media accounts, websites, online libraries of content and the like can often be inherited like any other asset. Accordingly, individuals working on their estate planning should address how they want the executor of their estate to handle such assets in order to avoid complications after their death.
What You Need To Do To Safeguard Your Will and Property
A will is an important document needed to ensure that your loved ones are taken care of in a manner that you see fit. However, it’s not enough to prepare and execute a will. Important steps must be taken to safeguard your will and estate plan is actually carried out as you intend. One easily overlooked step, but which a former colleague turned Court attorney assures me comes up frequently, is securing the whereabouts of your original will and leaving behind appropriate information to aid those who will be handling your estate.
Obstacles in Identifying the Assets in an Estate
The executor or administrator of an estate has a duty to “marshal”—or collect—all of the decedent’s assets so the assets can be distributed to the appropriate heirs. Usually, this is a simple process. However, sometimes executors and administrators face obstacles in identifying the assets in an estate, where the assets are located and how to obtain possession of the assets. It is important to know the tools available to overcome obstacles in collecting and preserving the decedent’s assets in order to protect the beneficiaries of the estate and avoid liability.