Young, Kelsey, Brown & Strippoli, P.C.Albany Divorce and Family Law Attorneys | Guilderland Child Custody | Schenectady County NY Child Support Lawyers2024-02-23T06:21:15Zhttps://www.yfkblaw.com/feed/atom/WordPress/wp-content/uploads/sites/1201096/2019/10/cropped-favicon-32x32.jpgOn Behalf of Young, Kelsey, Brown & Strippoli, P.C.https://www.yfkblaw.com/?p=481362024-02-20T06:23:23Z2024-02-23T06:21:15Zcharitable giving into your estate plan is through your will. This straightforward method lets you specify the amount or percentage of your estate you wish to leave to charity. It's flexible, allowing you to change your mind at any time and doesn't affect your finances during your lifetime. Bequests can significantly reduce your estate tax burden, potentially leaving more for your beneficiaries.
Another option is setting up a charitable remainder trust (CRT). This allows you to receive income for life or a specified term of years, after which the remainder of the trust goes to your designated charity. CRTs can offer tax benefits, such as a charitable income tax deduction and potential savings on capital gains taxes. This option is particularly attractive if you have highly appreciated assets.
Maximize your tax benefits
Understanding each method's tax implications is essential to ensure you and your beneficiaries receive the maximum tax benefits from your charitable giving. Donations made through your estate can reduce the size of your taxable estate, potentially lowering estate taxes. If you're considering large gifts, it might be worth consulting with a financial advisor to navigate the complexities of tax laws and regulations.
Incorporating a donor-advised fund (DAF) into your estate plan is another way to manage your charitable giving efficiently. With a DAF, you can make a charitable contribution, receive an immediate tax deduction and then recommend grants from the fund over time. This option provides flexibility and control over how and when your gifts are distributed, allowing you to respond to changing needs and interests.
Clear communication is vital when including charitable gifts in your estate plan. Discuss your plans with your family and the receiving organizations to avoid surprises and better ensure that your wishes are understood and respected. Leaving detailed instructions in your will or trust can help prevent misunderstandings and help you to meet your charitable goals.]]>On Behalf of Young, Kelsey, Brown & Strippoli, P.C.https://www.yfkblaw.com/?p=481342024-01-22T09:06:52Z2024-01-25T09:06:18Zadvanced directive is a legal document that outlines your medical care preferences if you become incapacitated. This includes decisions about life-sustaining treatments, resuscitation and end-of-life care.
There are two main types of advanced directives: living wills and healthcare directives. Living wills specifically detail the types of medical treatments one would or wouldn’t want to receive in certain situations. Healthcare directives, on the other hand, often include a broader scope of instructions and may encompass personal values and preferences beyond specific medical interventions.
Powers of attorney
A power of attorney for healthcare is a document that allows you to appoint someone else to make medical decisions on your behalf if you can't do so. This designated person, often a trusted family member or friend, becomes responsible for making healthcare decisions that align with your preferences and best interests. A power of attorney for healthcare becomes active under specific circumstances, typically if a physician determines that you’re unable to make their own medical decisions.
Planning for your medical care if you become incapacitated is only one small component of a comprehensive estate plan. You also need to plan for financial decisions if you become incapacitated and how to pass your assets to your loved ones after you die. Working with a professional who understands your circumstances may be beneficial because they can explain your options and help you ensure your plan accurately relays your wishes.]]>On Behalf of Young, Kelsey, Brown & Strippoli, P.C.https://www.yfkblaw.com/?p=481312024-01-16T16:40:52Z2023-12-22T08:53:56Zestimated $84 trillion that’s due to be left to future generations over the next couple of decades as the Baby Boomers and those a bit older and younger pass away or gift some of their assets while they’re still alive.
If you’ve been able to accumulate or inherit some of that wealth, you will be able to make life a bit easier for your children and grandchildren. While you want them to appreciate their good fortune – especially if your parents weren’t able to do the same for you – you likely don’t want them to feel “inheritor’s guilt.”That’s not an uncommon phenomenon among those who inherit a substantial amount of money or other assets. This doesn’t have to mean millions of dollars. People can experience inheritance guilt over any sum of money that’s unexpected or far more than they’ve ever had.The reasons behind inheritor’s guilt are varied. When parents or grandparents have lived frugally their whole lives and then leave a large inheritance, their heirs can feel guilt that they never spent it on themselves. If a parent built up a successful business and significant assets, an adult child who’s still figuring out what they want to do may feel like they don’t deserve the inheritance.
How can you prevent inheritor’s guilt?
One way is to minimize any potential shock. While you don’t need to give your heirs exact numbers (and likely can’t), you can and should give them some idea of what kind of assets you’ll be able to leave them. You may want to connect them with financial and tax advisors so they’ll be better prepared to handle it. By discussing your estate plan, they also have the chance to ask you to direct some of the assets intended for them into their children’s college funds or maybe to a charitable organization they support.By talking to them about their inheritance, you can discuss how you hope they’ll use it – such as buying a home, starting a business or making sound investments that will grow substantially. This will help give them a purpose for the assets – which can prevent them from misspending and depleting them. If that’s a real concern, however, you can place the assets in a trust so they don’t have direct access to them.Every family is highly unique. Having experienced estate planning guidance can help you make the best decisions for yourself and your family.]]>On Behalf of Young, Kelsey, Brown & Strippoli, P.C.https://www.yfkblaw.com/?p=481222023-10-16T10:04:21Z2023-10-19T10:04:00Zwill not fund a transaction despite providing someone with pre-approval. Why might a mortgage company refuse to fund a purchase after initially pre-approving a buyer, imperiling their ability to finalize a closing?
Issues with the property
Sometimes, the inspection process for a home will turn up latent defects, like major problems with the foundation. Those property issues might significantly reduce the value of the property and therefore the company's willingness to fund the transaction. Certain loan programs provided through government agencies, in particular, tend to have very strict property requirements for someone to secure a mortgage.
Issues with the property's price
Home values have increased significantly in recent years, and lenders may worry that the amount offered isn't realistic given overall market conditions. If an appraiser determines that the property is worth less than what someone offered for it, the lender may decline to finance the full transaction amount, leaving the buyer to either cancel the closing or find ways to make up the difference.
Issues with the buyer's credit or income
Sometimes, a change in personal circumstances will leave a buyer no longer eligible for a mortgage. Perhaps they lost their job after making an offer but before reaching the closing table. Maybe they overextended themselves on credit elsewhere, maxing out their credit cards and taking out a personal line of credit. A sudden drop in someone's income or significant change in their credit score might lead A lender to deny a mortgage after initially pre-approving a borrower.
Buyers can better protect themselves from these challenges by adding mortgage or financing contingencies to their offers. Sellers also need to be aware of the possibility of financing issues to more effectively protect themselves from delays and additional expenses caused by canceled closings. In these ways, learning more about what can derail real estate transactions may take some of the risks out of the process for buyers and sellers alike.]]>On Behalf of Young, Kelsey, Brown & Strippoli, P.C.https://www.yfkblaw.com/?p=481212023-09-19T18:59:29Z2023-09-19T13:49:33ZDiving into the concept of a trust
A trust is a legal arrangement where one party transfers assets to a trustee. This trustee holds and manages these assets for the benefit of specific individuals or entities, known as beneficiaries. Trusts can be set up for various reasons, including tax benefits, avoiding probate or ensuring that assets are used in specific ways. Trusts broadly fall into two categories: revocable and irrevocable. Understanding the distinction between the two is vital for effective estate planning.
What is a revocable trust?
Revocable trusts are also known as living trusts. These trusts are characterized by their flexibility. The grantor can change, modify or even dissolve the trust if they're alive and competent. This adaptability allows the grantor to respond to changing life circumstances, financial situations or even shifts in the family dynamic. One of the standout benefits of a revocable trust is its ability to avoid probate, providing a smoother transition of assets to beneficiaries. Additionally, it provides a layer of privacy because the details of a revocable trust may remain private.
What is an irrevocable trust?
Once an irrevocable trust is established, its terms can’t be easily changed, modified, or terminated without the beneficiaries' consent. This rigidity might seem limiting, but it offers certain benefits. Assets placed in an irrevocable trust are generally not considered part of the grantor's taxable estate, offering potential tax advantages. Since the grantor relinquishes control over the assets, they're typically shielded from creditors.
In estate planning, the choice between revocable and irrevocable trusts hinges on individual goals and circumstances. While revocable trusts offer flexibility and control, irrevocable trusts provide more robust asset protection and potential tax benefits. Seeking legal guidance can help individuals better assess which option(s) may fit their unique needs.]]>On Behalf of Young, Kelsey, Brown & Strippoli, P.C.https://www.yfkblaw.com/?p=480552023-08-08T04:54:56Z2023-08-11T16:26:20Zsomebody something. How that debt is handled, though, depends very much on the individual situation. Here’s what you need to know:
Your debts go to your estate, not your heirs
Debts that are solely in your name, such as a car note or hospital co-pays, go to your estate. Those have to be paid before any assets are distributed to your heirs.
If there’s not enough money in the estate to pay all of the bills, the bills will be prioritized. Creditors with secured debts may be able to reclaim the collateral that backs their loans. For example, if you have a mortgage, the bank may foreclose. Creditors with unsecured debts, like any credit cards with balances due, will simply have to accept the loss – unless you have a living co-signer who is considered equally responsible for the bill.
None of these creditors, however, can transfer your debts to your heirs. In essence, what’s in your estate will have to do.
Assets that bypass your estate don’t need to be used for your debts
It’s important to note that assets that transfer directly to their designated beneficiaries never become part of an estate, which means those assets aren’t part of the equation when it comes time to figure out what debts need to be paid. For example, if you have life insurance policies that pay directly to your adult children, that money never becomes part of the probate process. Your beneficiaries are entitled to keep that money, and your creditors cannot force them to use it to pay off your debts.
Your funeral and burial costs may be a different story
Generally, your funeral and burial (or cremation) costs are supposed to come out of your estate. If there’s not enough money in the estate, your loved ones may have to pay the bill – but only if they sign an agreement with the funeral home to that effect. If you’re concerned about the potential financial strain that might cause, it may be wise to consider adding a prepaid funeral arrangement to your estate plans.
Effective estate planning can help you leave more behind for your loved ones. Seeking experienced legal guidance can help.]]>On Behalf of Young, Kelsey, Brown & Strippoli, P.C.https://www.yfkblaw.com/?p=480532023-07-11T06:45:37Z2023-07-14T06:44:42ZNew York property owners have the option of redemption
Although not every state allows for tax sale redemption, New York does. The party that purchases the property at a tax lien sale will not have full ownership rights until after the redemption period has passed. In New York, property owners generally have two years from the date of the initial tax sale to redeem their property. Some counties and municipalities offer a longer redemption period.
The redemption process involves not only paying the tax balance owed on the property but also paying interest to the party that purchased the real property at the tax auction. If a redemption occurs, the party that made the purchase at the tax sale will receive the interest paid as compensation. So long as the original owner is capable of paying the taxes owed, interest and any assessed fees in full, they’ll have up to 24 months after the tax sale to redeem their property and protect their ownership interest in it.
This rule has implications both for property owners who fall behind on their taxes and also for those thinking about purchasing properties at a tax lien auction. Accordingly, learning more about New York's tax sale laws may help you to make more informed choices about maintaining or investing in real property.]]>On Behalf of Young, Kelsey, Brown & Strippoli, P.C.https://www.yfkblaw.com/?p=480522023-06-23T13:49:35Z2023-06-16T19:59:57ZAppropriate contingencies
An offer effectively commits a buyer to follow through with a purchase, although there may be some negotiation between them and the seller before they arrive at the final terms. Many buyers include contingencies in their offers in case of unforeseen challenges. People can potentially include clauses in their contracts that allow them to cancel a transaction if there is an issue with the inspection, a low value set in an appraisal, an issue with financing or other challenges that would either alter the value of the property in the perception of the buyer or functionally prevent them from completing the transaction. Contingencies help ensure buyers will get their earnest money back if they cancel a closing.
A post-closing occupancy agreement
People often want to get the keys as soon as they sign the paperwork so they can take possession of their new property and begin the moving process. However, with low supply on the real estate market in recent years, buyers often have to be a bit more flexible. Negotiating terms that allow the seller to remain at the property temporarily after closing could be what makes a buyer's offer attractive to the seller. The buyer can also assess a reasonable charge on a daily basis until the seller is able to leave the premises so that they can take possession.
Including the right terms in a real estate offer or purchase agreement may help buyers reduce their personal risk. Seeking legal guidance is, therefore, generally a good idea before committing to any kind of contractual relationship.]]>On Behalf of Young, Kelsey, Brown & Strippoli, P.C.https://www.yfkblaw.com/?p=480482023-05-15T13:05:44Z2023-05-04T19:15:04ZThey refer to their paperwork
Buying a home means executing a deed that makes someone the official owner of record of a specific parcel of land and the improvements erected on that land. The deed will typically include a legal description that carefully details the exact placement of the property boundaries.
Unfortunately, the language used in legal descriptions can be either confusing and archaic or highly technical. In some cases, referencing a legal description and a deed will resolve the disagreement. However, in other cases, homeowners will still disagree with one another about where the boundary between their properties actually falls.
A surveyor can resolve the matter
There are real estate professionals trained for exactly this scenario. Professional surveyors have the school and education necessary to review a legal description and then determine the location of the actual boundary for the property. They can then place markers so there are no mistakes when someone pours a driveway or installs a fence.
Where there is a significant boundary dispute and neighbors have experienced a serious conflict or a breakdown in communications, litigation may be necessary to stop an improvement until after the resolution of the dispute or to address some change to the property that infringes on one owner's rights. Working with an experienced legal professional to address such concerns is often the best first step forward.]]>On Behalf of Young, Kelsey, Brown & Strippoli, P.C.https://www.yfkblaw.com/?p=480492023-05-25T12:55:21Z2023-05-02T19:46:52ZAre prenups only for the wealthy?
Prenuptial agreements are not only for the wealthy; everyone getting married should consider having one. It is not a pleasant topic for couples, especially right before the wedding, but it is a wise decision because no one knows what the future brings. A prenup protects both parties.
What a prenup can and cannot cover
For a prenuptial agreement to be enforceable in court, it must follow the law. In this case, a prenuptial agreement can cover separate and marital property, which draws the line between what belongs to which spouse and defines the distribution of assets if one party possessed an asset before the marriage or if the couple accumulates assets during the marriage.
Prenuptial agreements can also address spousal support, also known as alimony, in the event of divorce. This applies especially when one of the parties is the only breadwinner of the family or if both parties have a significant amount of wealth and they want to secure that wealth by specifying whether one spouse will pay spousal support, who will pay, and how much they will pay in the event of divorce.
Prenups cannot address either child support or child custody. New York law is specific in stating that a prenuptial agreement cannot contract away the rights of children, whether existing or future children. It also cannot contract away child support because that is a parental obligation that a parent has toward his or her child mandated by law.
Requirements for validity
Under the laws of New York, the parties must sign a prenuptial agreement before the marriage, it must be written and signed by both parties, and a notary public must witness it. Prenups that are oral or written without signatures are not enforceable.
Getting married is an exciting time for couples and thinking about a prenup is not something they want to think about. Some couples will have attorneys work things out between them to not create any issues between themselves, which can work well.
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