Today’s society is all about do-it-yourself.

There’s DIY magazines, television shows and of course, the big home improvement stores that show you how to do everything from repair a leaky faucet to adding another room onto your home.

But when it comes to planning your estate, this is one area you don’t want to go alone.

Estate planning can be complex. There are a variety of legal documents that you may or may not want to use and what’s more, the laws that govern those documents can change at any time.

Different concerns will require different approaches, so someone with a large estate and children from multiple marriages for example, will probably need a different estate plan than someone who’s single or someone who owns several businesses.

And even though there are a number of do-it-yourself forms available, these are generic in nature and cannot anticipate all the people, aspects and situations that make your estate unique.

Also remember that estate planning isn’t just about distributing your assets but it can also ensure your children and grandchildren are provided for, protect the family pet, guard against disability and even create a legacy that will last for generations to come.

Is that really something you want to trust to a form you downloaded from the Internet?

To learn more about creating the right estate plan for you, contact our office today.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

An executor is the person who will be responsible for managing your estate after you’re gone. This includes distributing your assets according to your wishes, paying any outstanding debts and settling with Uncle Sam.

Obviously, that makes your executor a very important person. So, how do you choose the right one?

A good executor is someone that you can count on. Someone who’s both mature and dependable and who is willing to take on this type of responsibility. Quite often, it is the executor that must deal with grieving family members who are upset over the asset distribution or even just aggravated at the amount of time the estate stays in probate. In both cases, they’ll likely look to your executor for guidance, so you’ll want someone who’s willing and able to be sensitive to your family’s emotions but also stick to the instructions you’ve laid out, whether your family is in agreement or not.

Sometimes, this person may be your spouse and other times, the spouse isn’t the best option. It really just depends upon your individual circumstances. What kind of family dynamic do you have?

Are there children from a previous marriage that may not be receptive to a step-parent splitting up your estate? Are there other family members that may be expecting more than you’ve actually decided to give?

Have you disinherited someone without their knowledge?

All of these factors will play a big role in choosing the right executor. To learn more and ensure that you’ve made the right choice, consult with a qualified estate planning attorney.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

A Power of Attorney is a legal document that allows you to give someone else the ability to act on your behalf.

The most common example of this is the General Power of Attorney that enables your named agent to conduct negotiations and sign documents in real estate or business matters in your stead.

But in estate planning, the Power of Attorney takes on a very different role.

You can use Powers of Attorney to enable someone to speak on your behalf with regard to medical treatments, for example or to designate someone to pay your bills if you become incapacitated.

And this is where a Springing Power of Attorney can come in handy.

A General Power of Attorney is automatically revoked if you become mentally disabled. This ensures that someone does not suddenly have “free reign” if you suffer from a stroke or become otherwise incapacitated.

But if that were to happen, who would pay your bills? Who would handle your creditors? A Springing Power of Attorney grants these rights and only allows the POA to be effective if you suffer a disability.

So, as long as your mentally capable of handling your own affairs, the Power of Attorney lies dormant and the agent you’ve chosen has no authority at all. But should something happen to you and you’re no longer able to speak on your own behalf, a Springing Power of Attorney could ensure that your financial affairs continue to be handled appropriately.

To learn more about Powers of Attorney and planning for disability, contact our office today.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

A Trust can offer a number of benefits, from avoiding probate to protecting your assets, depending upon the type of Trust you choose. But before you begin creating a Trust, you should consult with a good estate-planning attorney to help you set it up.

Why You Need A Lawyer

Having an attorney set up your Trust offers you several advantages; a good attorney will guide you through the many different types of Trusts and help you decide which type is best for your circumstances. Some Trusts can be easily changed, while others are irrevocable, meaning once they’re in place, it’s hard to undo. These are things you need to know before you commit and an attorney is the best person to guide you through this process.

In addition, each Trust offers a different array of benefits, so which one you’ll need will depend upon your individual circumstances. When you consult with your attorney, he or she will want to know the details of your situation so that they can suggest the best Trust for you.

Updating Your Trust

There is also a good chance that you might have to update or modify your Trust for some reason; if this does happen your attorney can assist you. Some changes may be mandatory, such as the passing of a new law, while other amendments may be the result of changes in your family and/or your goals. To ensure that your Trust is always current, set up a maintenance program with your attorney to review your estate plan on a regular basis.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

Working after retirement isn’t such a bad idea for some people. There are a lot of reasons why someone might choose to work after they have retired. A part-time job is a great way to keep you busy and can also help bring in extra money to ensure that you have enough to live on.

Saving More Money

If you choose to work a part time job after you retire you can use that income to reduce the amount that you withdraw from your IRA, and this can allow your investment to grow. For example, if your part time job brings in $15,000 a year, you can withdraw that much less from your IRA. If you were to do this for 10 years and get tax-deferred growth at 8%, you would actually have over $200,000 more in your IRA.

Increasing the amount of money that you have in your IRA, can help to ensure that you have enough money to last you for the rest of your life, especially in the later years when you may not be able to work anymore.

Social Security Benefits and Working

Keep in mind that any income you earn after retirement can affect your Social Security benefits, depending upon how old you are when you start.

Those that retire between the age of 62 and full retirement age, which is determined by the year you were born, will have their benefits reduced by $1 for every $2 they make above the annual income limit. That limit is currently $14,160 a year.

If you were to work a part time job, chances are it would not have much affect on your Social Security payments. Once you do reach full retirement age, you can earn as much money as you want and it will not reduce your Social Security payments.

Health Insurance

Having some type of health insurance is another reason why some people choose to continue working after they have officially retired; this is especially true if they take an early retirement and are not yet qualified to receive Medicare.

The bottom line is that there are a number of reasons why working after retirement can be beneficial, both financially and otherwise. Ideally though, you’ll want to be in a position where any work you do is for the pleasure of the task and not because you are in need of money. To make sure you have enough to live on after retirement, you should consult with a financial planner to help you map out your retirement income.

 

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

If you have a loved one that has begun to show signs that they may need more care than what you can provide, you may be thinking about a nursing home. This can be a very traumatic experience for both the person being admitted to the facility, as well as those that have to make this decision.

It is not easy to come to the decision to put a parent in a nursing home, and often people just don’t know how to recognize when it is truly time to do this. Some of the signs to look for to determine if your parent or loved one requires more care than they can get from family members include:

• Inability to live independently
• The need for 24-hour supervision
• They need help with everyday personal care, such as bathing, eating, walking, etc.
• There are excessive demands on your time and finances, which is causing a major strain on your family.

If the above describes your parent or loved one, it is probably a good idea to understand that they are ready to live in a different type of environment, but keep in mind that this doesn’t necessarily have to be a nursing home. A lot depends on the extent and type of care that your loved one needs.

• Home Health Care – This is one alternative to a nursing home. Home health care will keep your loved one at home where they will be happiest, but they will get visits from nursing assistants, nurses, doctors, and even therapists. This will help ease the burden on you, the family.

• Adult Day Care – This is an option that more and more people are choosing; the loved one goes into the facility during the day so that their family can work, and during the evening they return home. This alternative also works well when combined with home health care.

• Retirement Community – There are many assisted living retirement communities that will provide a number of services to their residents; these services include housekeeping, meals, social events, and even personal care. Although these services are available, your loved one will still have their own apartment and the ability to prepare their own meals and care for their own needs, if they are capable.

No one wants to put their loved ones in a nursing facility, especially considering the risk of abuse, but there may come a time when you are no longer able to care for them. Before choosing a facility, consider the alternatives to find the best possible choice for you and your loved one.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

In order to prepare the best estate plan, you need to know what you own. That means all the real estate as well as bank accounts, retirement plans, brokerage accounts, mutual funds, furniture, cars, jewelry, etc.  

But surprisingly, many of these possessions are often forgotten and never make it into the estate plan. This can result in lengthy and sometimes costly delays as the court tries to compile a complete picture of your estate. It also makes challenging your Will or Trust that much easier.

But by taking inventory of your assets, you can ensure that your estate plan is both comprehensive and complete.

Your family inventory should serve as a snapshot of all the assets you have to bequeath to your heirs. If you start the inventoryof tangible personal property  room by room, drawer by drawer and closet by closet, it will be easier to complete over time. The task may seem much less daunting if you don’t try to do it all at once.

Remember to be as complete as possible with all that you own, where it’s located, how much it’s worth (approximately) , the location of the key or the password needed to access the asset.

When you turn your attention to your financial matters, be sure to record the name and address of the bank or financial institution holding the assets, the account number, the approximately worth and any passwords or keys used to access the account.

After completing this task, you will probably find you have a lot more to bequeath than you thought. Sometimes we grow accustomed to seeing something so much that we no longer realize that it’s there, and that is where the family inventory can offer the most help.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

Custodial accounts are typically set up by a parent for their minor child, although it can also be opened by an Executor after you pass away. The custodian is the person that’s put in charge of the account – you while you’re still alive and then someone of your choosing after you’re gone.

It’s fairly simple to set up through your Will. You simply state that any money the child inherits should be put into a custodial account, and then you name the custodian. If you have more than one child, each child will have their own custodial account to be used for their needs only. The Uniform Transfers to Minors Act governs the management of the account, such ashow it’s to be used.and an end date for the account to be closed.  This end date in New York can be when the minor reaches age 18 or 21.

The biggest drawback to a custodial account is that the child at age 18 or 21 has total control of how the money is spent.  You may want it to pay for college but when your child inherits the account, they can spend the money any way they wish.

To learn more about leaving an inheritance to your minor children, contact our office today.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

Research the phrase “estate planning” and you’ll see quite a bit on drafting your Will and setting up a Living Trust.

But which one is better? Which one do you need? The answer to that question will depend solely upon the assets of your estate, your estate planning goals, and the needs of the beneficiaries inheriting same.

A Will for example, can handle standard property distribution quite well. For someone looking to just outline who gets what, a Will may be sufficient.

A Trust on the other hand, can be more complex but offers more flexibility as well. With a Trust, you can offer incentives to your heirs for example, or structure the assets so that they benefit multiple generations instead of just one.

A Trust also avoids probate and keeps your estate private, so while the contents of your Will will be made public record, the assets distributed in your Trust will not.

Of course, a Trust requires more maintenance and can cost more to set up, so it depends upon your individual needs. To find out what estate planning tools will work best for you, contact our office today.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.

Did you know that over 60% of people over the age of 65 will need some form of long term care services?  Long term care becomes necessary when an individual has difficulty, or is unable to perform, what the industry terms ADL’s, or the activities of daily living.  These activities include bathing, eating, walking and dressing.

Many assume that their current health insurance plans or Medicare will cover the cost of long term care.  This is NOT the case.  Long term care (LTC) benefits are typically only offered through specific long term care insurance policies.  It’s best to address long term care insurance before you need it, and the earlier you purchase a policy, the lower the rate you can lock in.

We are often asked if everyone needs a long term care insurance policy.  For most individuals, our answer is yes.  The cost of long term care can easily top $100,000 annually for specialized needs, and not knowing what life changes are in your future, its best to know the cost when planning for retirement, and long term care insurance can help in that respect as well.

There are typically two types of LTC insurance policies:

• An indemnity or “per diem” policy pays up to a fixed amount regardless of the cost.  The payments may range from $50 to $300 daily for a facility that offers long term care.  This type of policy should offer an adjustment for inflation to account for higher expenses down the road, be sure to check the particulars of the policy for this.
• An expense-incurred policy allows you to choose the benefit amount when you buy the policy and you are reimbursed for actual expenses for services received up to a fixed dollar amount.

How much is long term care insurance?  Of course, the cost varies widely, but national rates in 2007 according to the U.S. Department of Health and Human Services are as follows:

To ensure you’re adequately covered, you should include long term care as part of your estate planning process.  It is an issue that should be addressed sooner rather than later to properly plan those ‘golden’ years.

The Law Offices of Saul Kobrick, P.C. is a member of the American Academy of Estate Planning Attorneys.