Connors & Sullivan, Attorneys at Law, PLLC New York Estate Planning Lawyer | Brooklyn Elder Law Attorney | Queens Medicaid Planning Law Firm | NY 2026-06-24T22:17:23Z https://www.connorsandsullivan.com/feed/atom/ WordPress On Behalf of Connors & Sullivan, Attorneys at Law, PLLC <![CDATA[Access to digital accounts must be part of your estate plan, as account access issues can disrupt your estate plan]]> https://www.connorsandsullivan.com/?p=52509 2026-06-24T22:17:23Z 2026-06-24T22:17:23Z Where digital assets create problems Many critical assets now exist online, including bank and brokerage accounts, retirement funds and payment platforms. These accounts rely on email for password resets and security alerts, along with smartphones or authentication apps to complete logins. Cloud storage may also hold tax returns, account statements and legal records, while some people rely on online platforms for income or business activity. These accounts do more than hold assets; they control access to money and ongoing financial activity.

Why access fails when it matters

In practice, the issue is not the plan itself but whether a fiduciary can act on it when needed. New York law restricts access to digital communications unless you have provided explicit consent. Families may expect to step in without difficulty, yet practical barriers often block that transition:
  • Passwords are unknown or outdated
  • Two-factor authentication requires the owner’s device
  • Email accounts remain inaccessible
  • Providers require specific authorization before granting entry
These obstacles can delay or block access at a critical time. Federal and state privacy laws may also limit what providers can disclose without your clear authorization.

What this means for your plan

Delays carry real consequences. Bills go unpaid or accounts fall into default, while investments remain unmanaged at critical times and income streams get interrupted. Disputes may also arise when no one has clear access. These risks often stem from gaps in access rather than the overall structure of a plan. Estate plans should address digital access by incorporating clear authorization and maintaining a current record of key accounts, along with secure methods for storing access details.

Access determines outcomes

An estate plan outlines authority, but access determines whether that authority can be used in practice. As more financial activity moves online, taking a closer look at how account access fits within a plan may help reveal gaps before they create problems.    ]]> On Behalf of Connors & Sullivan, Attorneys at Law, PLLC <![CDATA[What happens if a trustee refuses to serve—or quits?]]> https://www.connorsandsullivan.com/?p=52523 2026-06-24T22:07:24Z 2026-06-24T22:07:24Z When a trustee declines the role A named trustee may decide not to accept the role after learning what it involves or due to personal constraints. In this case, the individual typically files a renunciation with the Surrogate’s Court (New York’s court of probate and fiduciary matters). This formally declines the appointment. The process can take time and may involve additional costs, particularly if court intervention becomes necessary.

When a trustee quits mid-administration

A trustee who has already begun serving may later choose to resign. In many cases, this requires court approval in New York. The trustee must file a petition explaining the request, and beneficiaries usually receive notice and the opportunity to object. Before approving the resignation, the court often requires a final accounting. This report lists all income, expenses and distributions during the trustee’s tenure. This helps ensure a clean transition and protects the trust assets. In urgent situations, such as when assets require immediate oversight, the court may appoint a temporary fiduciary.

Appointing a new trustee

When one cannot or will not serve, the next step depends on the terms of the trust. If it names successor trustees, the next eligible person or institution can step in. If no successor is named, or all named successors decline, interested parties, including beneficiaries, may ask the court to appoint a replacement. When appointing a replacement, the Surrogate’s Court generally considers factors such as the size and complexity of the trust and potential conflicts of interest. It also considers the ability of the proposed successor to manage assets responsibly and follow the trust provisions. The court may appoint an individual or a corporate trustee, depending on what best serves the trust and its beneficiaries.

Why planning matters

Naming at least one backup trustee and reviewing your documents can help keep the process moving and reduce the need for court involvement. Well-drafted provisions that address resignation procedures or outline how successors are appointed can further limit delays, costs and uncertainty during administration.]]> On Behalf of Connors & Sullivan, Attorneys at Law, PLLC <![CDATA[3 signs a loved one may require guardianship]]> https://www.connorsandsullivan.com/?p=52502 2026-05-29T16:04:56Z 2026-05-29T16:04:56Z Guardianship is a legal arrangement in which one adult assumes responsibility for another. A legal guardian has an obligation to act in the best interests of the adult ward in their care.  The courts have the authority to award guardianship to a competent adult, but they generally need compelling evidence showing that an individual requires that degree of support. What are some of the warning signs that concerned family members may soon need to pursue an adult guardianship? 

1. A major medical diagnosis

Guardianship frequently follows a healthcare professional diagnosing an older adult with a progressive or degenerative cognitive disorder or condition. Medical challenges such as Alzheimer's disease often leave people incapable of acting in their own best interests. 

2. Losses due to fraud

Older adults and those experiencing cognitive decline are vulnerable to fraudulent conduct. Family members, caregivers and even total strangers can trick or manipulate older adults. Evidence of significant fraud losses could indicate that an older adult can no longer manage their own affairs. 

3. Regular displays of confusion

Cognitive decline often begins with minor issues that slowly grow over time. When family members notice that a loved one has become increasingly confused, that can be an early warning sign of their declining ability to live independently. If an older adult forgets why they entered a room, can't remember to pay their mortgage or overlooks other key responsibilities, their confusion could make their continued independence problematic.  Securing an adult guardianship limits a loved one's exposure and helps ensure they have the support they need. Family members may need help following the appropriate procedures to pursue a guardianship for the support of an aging loved one.]]> On Behalf of Connors & Sullivan, Attorneys at Law, PLLC <![CDATA[The “half-a-loaf” Medicaid strategy and its modern risks]]> https://www.connorsandsullivan.com/?p=52498 2026-05-28T15:08:03Z 2026-05-28T15:08:03Z The half-a-loaf strategy once sounded simple. You gave away part of your assets and kept the rest to cover a Medicaid penalty period. On paper, it looked like a balanced move that protected something while still opening the door to benefits. Now, the picture looks very different. Rules have tightened, timelines matter more and small missteps can carry lasting effects. If you are thinking about long-term care planning, this older strategy deserves a fresh look through a modern lens.

An old strategy can create new problems

The half-a-loaf strategy was built for a time when Medicaid reviews moved more slowly. Now, systems are faster and far more connected. Asset transfers are flagged quickly, and penalties are calculated with little room for error. One risk that often gets missed is timing. If care is needed sooner than expected, the retained half may not stretch far enough. Costs rise fast, and private pay periods can shrink without warning. You may find yourself exposed during a gap you did not plan for. Another concern is control. Once assets are transferred, they are no longer yours in the same way. Family changes, financial stress or relationship shifts can turn a well-meant transfer into a source of tension. What felt safe years ago may feel uncertain now. There is also the issue of fairness. The strategy assumes stable rules, but Medicaid policies shift. What worked for someone else in the past may not fit your situation today. Planning based on old outcomes can leave you reacting instead of preparing. Long-term care planning works best when it reflects today’s rules and real-life changes. The half-a-loaf strategy is not wrong by default, but it is rarely simple anymore. A thoughtful review with the help of a skilled legal team can help assess your goals, risks and timing.]]> On Behalf of Connors & Sullivan, Attorneys at Law, PLLC <![CDATA[7 signs that an estate’s fiduciary has failed in their duty]]> https://www.connorsandsullivan.com/?p=52302 2026-05-26T16:42:28Z 2026-05-26T16:42:28Z When a person is appointed as an estate administrator, executor or trustee, they take on significant legal and ethical responsibilities. Their primary duties are to 1) carry out the terms of the will or trust, 2) preserve the estate/trust assets, 3) ensure the settlement of taxes if owed, and 4) distribute assets to the vested beneficiaries. Unfortunately, not all fiduciaries fulfill their responsibilities the way that they are expected. When they fail, their mistakes can lead to financial losses, broken family relationships – and legal battles. 

What are the major “red flags” of fiduciary failure?

While anything that makes you suspicious should be something you take seriously, the major signs of trouble with an estate’s fiduciary include:
  • Lack of transparency and communication
  • Delayed distribution of assets in contradiction of will/trust terms
  • Mismanagement of assets
  • Conflicts of interest or self-dealing
  • Unauthorized transactions
  • Failure to pay estate debts and taxes
  • Inaccurate or incomplete accounting

What can be done if you suspect mismanagement or deliberate wrongdoing?

If you’re the beneficiary of an estate and you suspect deliberate wrongdoing or mismanagement, you can pursue a contested accounting lawsuit. This is a legal action that, if successful, forces the fiduciary in question to provide a detailed financial report of all estate or trust transactions.  If discrepancies, missing funds or unauthorized transactions are discovered, the court may hold the fiduciary accountable for any damages. In general, you can file a contested accounting lawsuit when:
  • The fiduciary refuses to provide an accounting despite requests.
  • The provided accounting is incomplete, inaccurate, or misleading.
  • There is evidence of financial mismanagement, embezzlement, or fraud.
  • The fiduciary has breached their duty by acting in their own interest.
  • The estate’s assets have significantly diminished without clear justification.
Fiduciaries play a crucial role in estate and trust administration, and their failure to act responsibly should have severe consequences.  If wrongdoing is suspected, legal remedies such as a contested accounting lawsuit can help ensure accountability and protect the interests of rightful heirs and beneficiaries.]]> On Behalf of Connors & Sullivan, Attorneys at Law, PLLC <![CDATA[How a generation-skipping trust works in New York]]> https://www.connorsandsullivan.com/?p=52521 2026-05-21T19:52:01Z 2026-05-21T19:52:01Z Passing wealth to your grandchildren sounds straightforward, but federal tax rules and the New York state estate tax can reduce what actually reaches them. A generation-skipping trust is an estate planning tool that can help you transfer your assets beyond your children.

The role of a generation-skipping trust in estate planning

A generation-skipping trust is an irrevocable trust that allows you to pass assets to your grandchildren or subsequent descendants (subject to New York's limits on trust duration). Your children can still receive benefits during their lives, such as income payments or other distributions, while the trust keeps the main property separate from their taxable estates. This approach works well when your children already have financial stability, as it keeps assets out of their taxable estates and avoids a second layer of taxation that would otherwise apply. Once the trust is funded, you generally cannot reclaim the assets or modify the terms. A trustee you select manages the trust and distributes wealth to beneficiaries based on the instructions set forth in the trust agreement.

The federal and New York tax advantages

The federal government imposes a generation-skipping transfer tax (GST) on certain transfers that skip a generation. As of 2026, the federal GST tax exemption is $15 million per individual, meaning transfers below that amount are not subject to the tax. This exemption is separate from the federal estate tax exemption. New York does not impose its own generation-skipping transfer tax. The state does, however, have an estate tax with a much lower exemption of $7.35 million as of 2026. The state’s estate tax also includes a "cliff" provision. Should your taxable estate go over the exemption by more than 5% (approximately $7.72 million for 2026), your entire estate will  become subject to tax.

The requirements to create one

When you set up a generation-skipping trust:
  • It must clearly identify the grantor, trustee and beneficiaries
  • It is irrevocable, a status necessary to remove assets from your taxable estate for both estate and GST tax purposes
  • It must comply with New York's Estates, Powers and Trusts Law, including provisions on trustee duties and beneficiary rights
Due to the complexity of the forms and documents involved, it would be prudent to consult an attorney when drafting the trust.

The fit for your estate planning goals

A generation-skipping trust is not the right fit for every family. It tends to be most practical for individuals whose estates are large enough to face federal or New York estate taxes, particularly those who want to preserve wealth across multiple generations. If your estate is well below the federal exemption but close to New York's lower threshold, this type of trust may still play a meaningful role in your planning. When funded through lifetime gifts, a generation-skipping trust can remove assets from your taxable estate, provided you survive the gift by at least three years, potentially helping you stay below the New York estate tax cliff.]]> On Behalf of Connors & Sullivan, Attorneys at Law, PLLC <![CDATA[The basics about estate taxes for New York testators]]> https://www.connorsandsullivan.com/?p=52491 2026-02-05T15:30:18Z 2026-02-05T15:30:18Z Every testator putting together an estate plan has different needs and priorities. The extent of an individual's holdings, the various relationships they have developed and their personal values all influence what they want to happen with their assets after they die.  Most testators have family members, friends or charitable causes that they intend to name as their primary beneficiaries. People typically do not want a lifetime of hard work and sacrifice to pad the pockets of the state or federal government. After all, they have already paid taxes on their income and holdings.  However, estate taxes can drastically alter the legacy an individual leaves when they die. Both New York and the federal government impose estate taxes for those who leave millions of dollars in property at the time of their passing. Learning the basics about estate taxes can help testators as they begin creating an estate plan or work to strengthen an existing plan to more effectively minimize estate tax exposure. 

What property is at risk of taxation? 

Estate taxes technically apply to the totality of an individual's estate. The estate itself consists of all resources that belong directly to the decedent at the time of their death. The personal representative or executor administering the estate must identify and catalog all of the estate’s resources.  Holdings ranging from investments and financial accounts to real property and businesses can become the property of the estate. If the total value of those resources is above the exemption threshold that applies, given the jurisdiction and the timing of the individual’s passing, then estate taxes may be due. People who live and die in New York are theoretically subject to both federal and state estate taxes. 

Who pays the New York State estate tax?

New York is among a small minority of states that still collect a state-level estate tax. For deaths that occur in 2025, the maximum value of an exempt estate is $7.16 million. That figure increases to $7.35 million in 2026.  The law in New York has a very strict rule that allows the state to tax the entirety of the estate once it reaches 105% of the exemption threshold. The New York state estate tax is progressive. Estates that are only slightly over the exemption threshold could be subject to a tax rate as low as 3.06%. However, the maximum tax rate is 16%. 

Who pays the federal estate tax?

Federal estate taxes apply to estates all throughout the country, regardless of where the testator lives and where their estate passes through probate court. Thankfully, the threshold for taxation is much higher at the federal level.  For individuals who pass in 2025, the federal estate tax threshold is $13.99 million. For those who pass in 2026, the threshold increases to $15 million. As is the case with the New York estate tax, the federal estate tax is progressive. Non-exempt estates may face a tax rate of between 18% and 40%, depending on their overall size. 

What are common estate tax reduction strategies?

Testators often try to strategize to completely avoid estate taxes. However, when doing so is not possible, their goal may instead be to minimize the tax rate that applies by making strategic moves with their assets.  There are multiple ways for individuals to diminish the taxable value of their estates before they pass. Some people make regular gifts to friends, family and charitable causes. People may transfer assets to a trust to prevent them from passing through probate and becoming part of their estates. Some people also make arrangements to share ownership of their resources while they are alive. They add co-owners to real property, business holdings and financial accounts.  They can use transfer-on-death designations filed with financial institutions or investment professionals to allow an outside party to assume ownership of their account after their passing. Deeds can also play a role in allowing for a property transfer that does not involve the probate courts.  No two state tax plans are identical. People often need assistance evaluating their exposure and crafting plans that adequately address their various resources. Consulting with an estate planning attorney familiar with estate tax regulations can be critical for those with high-value estates. Prior planning is key to maximizing what chosen beneficiaries inherit and minimizing losses to state and federal taxes.]]> On Behalf of Connors & Sullivan, Attorneys at Law, PLLC <![CDATA[What’s the difference between estate tax vs. inheritance tax?]]> https://www.connorsandsullivan.com/?p=52492 2026-02-05T15:17:15Z 2026-02-05T15:16:50Z When a loved one passes away, taxes can be a confusing topic for families. Two terms often come up: estate tax and inheritance tax. While they sound similar, they work in different ways. In New York, knowing the difference helps you understand what happens to property before and after it reaches the heirs.

What is an estate tax?

An estate tax applies to the total value of everything a person owned before they gave any money to their family. The estate itself pays this tax using its own funds. New York has its own estate tax. If an estate's value exceeds a certain limit—called the exclusion amount—it may owe state tax. However, New York has a unique rule known as the tax cliff. If an estate exceeds the exclusion amount by more than 5%, the entire exemption disappears, and the state taxes the whole estate from the very first dollar.

What is an inheritance tax?

An inheritance tax works differently. Instead of taxing the estate before people divide it, the tax applies to the specific person who receives the property. New York does not have an inheritance tax. This means if you live in New York and inherit money, you do not owe the state a tax just for receiving it. However, if you inherit property located in a different state, you might still have to follow that state's tax laws. Understanding these rules helps families plan better and avoid surprises during a difficult time.]]> On Behalf of Connors & Sullivan, Attorneys at Law, PLLC <![CDATA[5 common mistakes New Yorkers make when creating trusts]]> https://www.connorsandsullivan.com/?p=52485 2026-01-14T20:12:41Z 2026-01-14T20:12:41Z A well-drafted rust is one of the most effective estate-planning tools that you may have at your disposal if you want to avoid probate, protect your family’s assets, plan for your long-term care and ensure that your wishes are carried out after your passing.  However, even a powerful tool like a trust can become useless if you do the wrong thing. At a minimum, even small mistakes have the potential for big consequences – like inheritance delays, disputes between beneficiaries, tax issues and lost protections. Here are some of the most common mistakes New Yorkers make when they’re creating a trust:

1. Failing to properly fund the trust

Drafting the trust is only the first step. Funding the trust is the next. To work as intended, assets must actually be retitled into the trust’s name. Many people assume that signing the trust agreement alone is enough, only to discover after death or incapacity that:
  • Real estate was never deeded into the trust
  • Bank or investment accounts remained in the individual’s name
  • Beneficiary-designated assets weren’t coordinated with the trust
In New York, unfunded or partially funded revocable trusts frequently fail to achieve their primary purpose – which is usually avoiding probate. A pour-over will can help transfer remaining assets, but it still requires going through Surrogate’s Court, so properly funding a trust is essential.

2. Choosing the wrong kind of trust

There are a lot of different kinds of trusts out there that can be used: revocable, irrevocable, Medicaid Asset Protection Trusts, Supplemental Needs trusts, testamentary trusts, incentive trusts and more. Using the wrong structure can undermine or outright thwart your goals. For example, a New Yorker worried about asset preservation in their senior years might mistakenly use a revocable trust – which offers zero Medicaid protection. Or, they might try to rely on a testamentary trust created by their will to avoid probate – without realizing that the will has to go through probate before the trust activates. Selecting the right trust for your needs requires a clear understanding of how each is structured, their limitations and the way that the law, taxes, creditors and family dynamics all intersect.

3. Forgetting to make updates

A trust is not a “one and done” kind of deal. You need to review and update your documents periodically to make adjustments where necessary. Depending upon the type of trust you create, you might have:
  • Outdated trustees that should be changed
  • Beneficiaries who should be removed or added
  • Newly acquired assets that need to be transferred
  • Changes in the tax laws or Medicaid laws that must be addressed
Regular reviews of your trust documents with your attorney can make sure that you still have the estate plan you want.

4. Choosing the wrong trustee

Choosing a trustee to manage the trust is one of the most critical decisions you have to make in the whole process – and far too many people make the decision based on emotion, not logic. Trustees have fiduciary obligations under New York law, including investing prudently, managing assets responsibly, and providing accountings when required. Common mistakes include choosing:
  • Someone with poor financial skills
  • Adult children who do not get along
  • Out-of-state trustees who may face complications
  • Individuals who are irresponsible or unorganized
In many cases, a corporate trustee – such as a bank or trust company – can provide professionalism, neutrality and continuity without the interpersonal conflict that often arises when a family member tries to handle the job.

5. Assuming a trust avoids all taxes

A trust can provide tax advantages, but it is not a tax-avoidance tool by default. In New York:
  • Revocable trusts offer no income or estate tax benefits during life.
  • Irrevocable trusts may shift tax burdens to your heirs or create new filing requirements.
People often misunderstand grantor trust rules or overlook tax filing requirements, which can lead to penalties or unexpected liabilities. Worse, the problems may not surface until the grantor is incapacitated or dies, when it is too late to fix things. Ultimately, a trust is only useful when it is structured soundly, funded properly, updated regularly and placed in the hands of a trustee who has the necessary skills to manage it correctly. Working with an experienced estate-planning attorney ensures that your trust accomplishes its intended purpose and provides the protection you and your family crave.]]> On Behalf of Connors & Sullivan, Attorneys at Law, PLLC <![CDATA[Who benefits most from a Spendthrift Trust?]]> https://www.connorsandsullivan.com/?p=52481 2026-01-14T19:36:57Z 2026-01-14T19:36:57Z Protecting beneficiaries and others When a beneficiary faces addiction, compulsive spending, severe debt or other vulnerabilities, grantors may limit direct access to an inheritance to protect both the beneficiary and the estate while still providing support. In these circumstances, funding a spendthrift trust can make good sense. Sometimes, the fault lays not with the beneficiary but with that person's spouse. Although inherited funds are technically the property of the beneficiary, they may be easily manipulated or even physically bullied into giving their spouse access to the trust’s principal. That can drain a trust designed to last a lifetime in just a few short years.

Beneficiaries in some professions can benefit, too

In some cases, the character and money-management skills of the beneficiary and any spouse are not a concern to the trust grantor. In fact, it might be the beneficiaries’ chosen career that gives the trust grantor pause. For instance, those who go into some industries and careers are far more likely to become defendants in a lawsuit. Attorneys, health care professionals, celebrities and others who have high-profile careers are more likely to be perceived as having deep pockets to settle lawsuits. Holding assets in spendthrift trusts protects the principal from being attacked by defendants and/or beneficiaries’ creditors.

Are there any negatives associated with spendthrift trusts?

There can be. Some beneficiaries chafe at the restrictions the trust grantor places on their access to the funds. They can perceive this as a form of dead-hand control from beyond the grave. They are entitled to their opinions and are always free to refuse any disbursements.

Trust grantors set the terms of the trusts

They not only fund these trusts but appoint the trustees that administer them and set the frequency and amount of the disbursements. They can even choose to link disbursements to life achievements like college graduations, marriages and childbirth. Ultimately, a well‑drafted spendthrift trust can preserve a lifetime of savings from creditors, lawsuits, and poor financial choices while still providing meaningful, controlled support to your heirs. Consulting an attorney can help you determine if it is a good fit for your situation.]]>