Tom Petty, the world-renowned singer-songwriter, passed away in 2017. His beneficiaries include two adult daughters and a wife. His wife at the time of his passing was not the mother of his children.
Did the new tax law make trusts obsolete?
A trust is an estate planning tool that can reduce one's estate tax obligation. As a result, some may think the increased estate tax exemption rates that went into effect with the passage of the Tax Cuts and Jobs Act (TCJA) have made the need for a trust unnecessary.
Two Smart Reasons for Creating a Supplemental Needs Trust for Loved Ones with Special Needs
A special needs trust is a legal document that can help to better ensure the care of loved ones who are unable to make decisions on their own. This legal tool, also referred to as a supplemental needs trust, offers many benefits.
Pet owners: Why you should consider a pet trust
New Yorkers are our own breed: Our pets are our 'fur babies'. They come in all sorts of shapes and sizes and are, unequivocally, an integral part of the family. Perhaps a tough thought, but what happens to them should you pass away?
Trusts for pets may sometimes face tax liability
Many of us are animal lovers and non-human companions come in a lot of shapes and sizes. As we have noted in another section of our site, millions of New Yorkers have pets they love as much as (or perhaps more than) family. Understandably, it's not unusual for pets to be named as beneficiaries of estate plans, but unless it's done correctly, legal issues can arise.
To understand trusts, beneficiaries benefit from some key facts
Planning is a good thing. Not everyone likes it, but in the face of the inevitable and to ensure that assets representing one's legacy continue to serve the well-being of intended beneficiaries, few can dispute the value of the proposition.
What can a supplemental needs trust pay for?
Ensuring the well-being of loved ones incapable of caring for themselves is one of the greatest challenges any New York City family can face. If the onset of the incapacity is the result of some unexpected catastrophe, such as a near-fatal accident, concern about how to meet care costs can infringe on the delivery of that care.
Does your estate planning require a trust protector?
Trusts come in a wide range of styles. There are revocable trusts, irrevocable trusts, even incentive trusts, which we wrote about in a post some time ago. This is not a complete list of trust tools available under New York estate planning law. The one that might be most appropriate for your needs can be determined by consulting with counsel committed to understanding what you want to accomplish.
Taking legal action to remove a trustee
When most people think about estate planning, the document known as a last will and testament likely comes to mind. While a will can be used to convey one's wishes with regard to the ownership of personal belongings and the disbursement of assets, a trust is typically a better option for people who wish to avoid probate, leave property to young children and protect assets from creditors.
Is an incentive trust right for you and your family?
Every parent wants their child to succeed and do well in life. To help steer a child towards or keep a child on what a parent considers to be the right path, a parent may offer an incentive to help a child out financially. For example a parent may agree to pay a college-bound son or daughter a monthly stipend provided that he or she maintains a certain GPA. These types of incentive or conditional arrangements are fairly common between parents and children. What happens, however, if a parent dies and is no longer able to provide the nudge in the right direction that a child may need to achieve his or her goals.
