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
By Michael Giusto and Lois Brenner Getting a divorce is a stressful experience and it’s not unusual for spouses to forget to address estate planning issues either before, during, or afterwards. However, not updating certain documents or considering your future financial situation could have serious unintended consequences. Impact of divorce on existing planning documents … Read more
There are many formalities required when properly executing a will. When these are not followed, there is a significant risk that the will cannot be admitted to probate. That means the decisions you made in designing your estate plan will not be implemented and instead, your assets will be distributed under intestate laws as if … Read more
The new tax law has gotten a lot of media coverage in New York mostly because of the loss of the State and local tax deduction and the end of the “Obamacare” health insurance individual mandate. Less attention is paid to the significant estate and gift tax changes contained in the law. These provisions may … Read more
Leaving a gun to someone in your will can present a number of complications in the administration of your estate. New York law doesn’t allow an executor or beneficiary to simply take possession of a gun when they take over the estate of a gun owner. There are issues pertinent to gun ownership which must be considered in order to avoid complications and potential legal liability in estate planning and estate administration.
Executor responsibilities
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 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:
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.
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.
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.