Law Office of Frank Bruno, Jr.

Category: Blog

  • Estate Plan for Blended Family

    Estate Plan for Blended Family

    Estate Plan for Blended Family. There are several things that blended families need to consider when updating their estate plans, says The University Herald in the article “The Challenges and Complexities of Estate Planning for Blended Families.”

    Estate plans should be reviewed and updated, whenever there’s a major life event, like a divorce, marriage or the birth or adoption of a child. If you don’t do this, it can lead to disastrous consequences after your death, like giving all your assets to an ex-spouse.

    If you have children from previous marriages, make sure they inherit the assets you desire after your death. When new spouses are named as sole beneficiaries on retirement accounts, life insurance policies, and other accounts, they aren’t legally required to share any assets with the children.

    Take time to review and update your estate plan. It will save you and your family a lot of stress in the future.

    Your estate planning attorney can help you with this process.

    You may need more than a simple will to protect your biological children’s ability to inherit. If you draft a will that leaves everything to your new spouse, he or she can cut out the children from your previous marriage altogether. Ask your attorney about a trust for those children. There are many options.

    You can create a trust that will leave assets to your new spouse during his or her lifetime, and then pass those assets to your children, upon your spouse’s death. This is known as an AB trust. There is also a trust known as an ABC trust. Various assets are allocated to each trust, and while this type of trust can be a little complicated, the trusts will ensure that wishes are met, and everyone inherits as you want.

    Be sure you that select your trustee wisely. It’s not uncommon to have tension between your spouse and your children. The trustee may need to serve as a referee between them, so name a person who will carry out your wishes as intended and who respects both your children and your spouse.

    Another option is to simply leave assets to your biological children upon your death. The only problem here, is if your spouse is depending upon you to provide a means of support after you have passed.

    An experienced estate planning attorney will be able to help you map out a plan so that no one is left behind. The earlier in your second (or subsequent) married life you start this process, the better.

    Reference:

    University Herald (June 29, 2019) “The Challenges and Complexities of Estate Planning for Blended Families”

  • Why You—and Everyone—Needs an Estate Plan

    Why You—and Everyone—Needs an Estate Plan

    At its essence, estate planning is any decision you make concerning your property if you die, or if you become incapacitated. There are a number of things to keep in mind when creating an estate plan, says KTUU in the article “Estate planning dos and don’ts.”

    The first task is not what most people think. It’s very basic: making a list of all of your assets and how they are titled. Remember, the estate plan is dealing with the distribution of your assets—so you have to first know what those assets are. If you are old enough to have lived through the sale of several different financial institutions, do you know where your accounts are? Not everyone does!

    Next, you need to be clear on how the assets are titled. If they are joint with a spouse, Payable on Death (POD) or Transfer on Death (TOD), jointly with a child, or owned by a trust, they may be treated differently in your estate plan, than if you owned them outright.

    Roughly fifty percent of all adults don’t make a plan for their estate. That becomes a huge headache for their loved ones. If you don’t have an estate plan, your property will be distributed according to the laws of your state. What you do or don’t want to have happen to your property won’t matter, and in some instances, your family may be passed over for a long-lost sibling. It’s a risk.

    In addition, if you don’t have an estate plan, chances are you haven’t done any tax planning. Some states have inheritance taxes, others have estate taxes, and some have both. Even if your estate’s value doesn’t come anywhere close to the very high federal estate tax level ($11.4 million per person for 2019), your heirs could inherit far less, if state and inheritance taxes take a bite out of the assets.

    For a blended family, there are a number of rules in different states that divide your assets. In Alaska, for instance, if some of the children of one spouse are not the children of the other spouse, there is a statutory formula that depends on how many children there are and which of them are living. Different percentages of money are awarded to the children, which becomes complicated.

    Why You—and Everyone—Needs an Estate Plan. Another reason to have an estate plan has to do with incapacity. This is perhaps harder to discuss than death for some families. Estate planning includes preparing for what the individual would want to happen, if they were injured or too sick to convey their wishes to others. Decisions about health care treatments and end-of-life care are documented with a Living Will (sometimes called an Advanced Care Directive), so your loved ones are not left wondering what you would have wanted and hoping that they got it right.

    One last point about an estate plan: be sure to check beneficiary designations while you are doing your estate plan. If you own retirement accounts, life insurance policies, or other assets with named beneficiaries, the assets will pass directly to the named beneficiary, regardless of the instructions in your will. If you opened an IRA when you had one child and have had other children since then, make sure to include all of those children and the proportion of their shares. There may be tax implications, if only one child receives the assets, and there may also be family fights if assets are not distributed equally.

    Reference:

    KTUU (August 14, 2019) “Estate planning dos and don’ts”

  • Blended Families Need More Thoughtful Estate Plans

    Blended Families Need More Thoughtful Estate Plans

    Estate planning for blended families is like playing chess in three dimensions: even those who are very good at chess can struggle with so many moving parts in so many dimensions. Preparing an estate plan requires careful consideration of family dynamics, and those are multiplied in blended families. This is another reason why estate plans need to be tailored for each family’s circumstances, as described in the article “Blended families have unique considerations in estate planning” from The News Enterprise.

    The last will and testament is often considered the key document in an estate plan. But while the will is very important, it has certain limitations and a few commonly used estate planning strategies can result in unpleasant endings, if this is the only document used.

    Spouses often leave everything to each other as the primary beneficiary on death, with all of their children as contingent beneficiaries. This is based on the assumption that the second spouse will remain in the family home, then will distribute any proceeds equally between the children, if and when they move or die. However, the will can be changed at any time before death, as long as the person making the will has mental capacity. If when the first spouse dies, the relationship with the surviving children is not strong, it is possible that the surviving spouse may have their will changed.

    If stepchildren don’t have a strong connection with the surviving spouse, which occurs frequently when the second marriage occurs after the children are adults, things can go wrong. Their mutual grief at the passing of the first spouse does not always draw stepchildren and stepparents together. Often, it divides them.

    The couple may also select different successor beneficiaries. The husband may name his wife first, then only his children in his will, while the wife may name her husband and then her children in her will. This creates a “survival race.” Winner takes all. The surviving spouse receives the property and the children of the spouse who passed won’t know when or if they will receive any assets.

    Some couples plan on using trusts for property distribution upon death. This can be more successful, if planned properly. It can also be just as bad as a will.

    Trust provisions can be categorized according to the level of control the surviving spouse has after the death of the first spouse. A trust can be structured to lock down half of the trust assets on the death of the first spouse. The surviving spouse remains as a beneficiary but does not have the ability to change the ultimate distribution of the decedent’s portion. This allows the survivor the financial support they need, giving flexibility for the survivor to change their beneficiaries for their remaining share.

    Not all blended families actually “blend,” but for those who do, a candid discussion with all, possibly in the office of the estate planning attorney, to plan for the future, is one way to ensure that the family remains a family, when both parents are gone.

    Reference:

    The News Enterprise (November 4, 2019) “Blended families have unique considerations in estate planning”

  • We Can Grow New Brain Cells Well Past Retirement Age

    We Can Grow New Brain Cells Well Past Retirement Age

    “You have power over your mind—not outside events. Realize this, and you will find strength.”—Marcus Aurelius.

    “The mind of man is capable of anything.” —Joseph Conrad.

    For many decades, people assumed cognitive decline was inevitable with advanced age. Medical experts said people stopped making new brain cells as adults, so when we lose cells through injury or deterioration, there are no “spare parts” to replace them. As a result, it seemed logical that cognitive impairment was only a matter of time.

    The nagging doubt about this theory was the fact we all know people who remain mentally sharp well into their nineties and even past the age of 100. As it turns out, you were not the only one who might have wondered about the accuracy of the long-held assumption of inevitable age-related cognitive decline. A recent study reveals we can grow new brain cells well past retirement age.

    Columbia University and the New York State Psychiatric Institute worked together on a study designed to explore this issue. They performed autopsies soon after death on the brains of 28 people ranging in age from 14 to 79. The subjects had all been healthy prior to sudden death. None of them had cognitive impairment during their lives.

    The researchers examined the hippocampus area of the brain. The hippocampus processes learning and memory and grows new brain cells to replace those we lose through daily attrition. In particular, the scientists looked at the neurons (nerve cells) and blood vessels within the hippocampus.

    Although the brains of the older subjects in the study did not form as many new blood cells and their new neurons might not have been able to make as many connections as the brains of the younger subjects, the study revealed a startling fact. The brains of healthy older people continue making new brain cells, just as well as the brains of younger healthy people.

    There was no difference in the volume of new brain cells between the younger and older brains. Since the hippocampus does not stop making new brain cells as long as you stay healthy, the researchers concluded many seniors do not suffer cognitive or emotional decline, despite the common assumption to the contrary.

    Take-Aways from the Study Findings

    Seniors do not get the respect they deserve in American society. One excuse people get for being dismissive of their elders, is the widely held belief that old people become mentally feeble. This research challenges this idea and shows that healthy older people can be just as sharp as people in their youth.

    The common belief about seniors having cognitive decline can be a self-fulfilling prophecy. If a person believes cognitive decline is an automatic part of aging, the person might not try to prevent this result. We all know people who suddenly start to act older after they hit a milestone birthday, as if living up to their expectations for a person of that age.

    Now that we know there is no such thing as automatic cognitive decline because of age, we can do something about it. You can stay sharp as long as you stay healthy. Keep learning and reading. Study a foreign language. Do word puzzles. Stay socially active and involved in your community. Take a walk every day to get regular physical exercise. Eat nutritious food.

    And above all, avoid things that damage brain cells, particularly the hippocampus. Misusing drugs, even prescription ones, drinking too much alcohol and smoking can all damage the hippocampus. If the hippocampus is not healthy, you will not be able to continue making new brain cells as you age.

    Reference:

    AARP. “Older Adult Brains Can Grow Thousands of New Cells.” (accessed May 30, 2019).

  • Can I Correct an IRA RMD Mistake?

    Can I Correct an IRA RMD Mistake?

    It’s not uncommon for an individual to inaccurately calculate their required minimum distribution (RMD) for their account. Maybe you forgot that your brokerage firm divided the account in two and they didn’t tell you. This mistake may result in a person failing to withdraw the mandatory amount from an IRA.

    What can a person do at this point? If the mistake was caused by an oversight at the brokerage firm, can you avoid the 50% penalty, if they admit the error in a letter to the IRS?

    Kiplinger’s recent article, “How to Correct a Mistake on Your RMDs from IRAs” advises that you don’t need to send the IRS a letter from the brokerage firm, but you do need to take some action immediately to ask the IRS if it will waive the penalty.

    You need to first figure out the exact amount you should’ve withdrawn as your RMD and withdraw the money right away, if you haven’t already. You should then file a separate Form 5329 immediately for each year’s RMD you missed.

    You should fill in lines 52 and 53 with the amount you should have withdrawn, then write “RC.” This means “reasonable cause.” Also write in the amount of the penalty you want waived in parentheses on the dotted line next to line 54. You should include a brief note that says the RMD was omitted by the brokerage company and was withdrawn immediately upon discovery. Keep it brief—don’t go into all the details.

    You shouldn’t send any penalty money, unless the IRS denies your request for a penalty waiver.

    Denials are pretty rare, especially for someone who withdrew the money as soon as she realized the mistake and filed Form 5329 proactively with reasonable cause.

    Retain the letter or any communication in your files from the broker saying that the firm made a mistake, but don’t send it to the IRS.

    Can I Correct an IRA RMD Mistake? Yes you can. You can review the Instructions for Form 5329 for more information about the procedure.

    Reference:

  • Do I Need a Living Trust or a Will? Or Both?

    Do I Need a Living Trust or a Will? Or Both?

    “Tax planning is one element of estate planning, and in many estates is the least important factor. The larger issue is: Who will inherit and what will they inherit?” First National Trust Update April 2015.

    “A man of 70 need not be always feeling, much less talking, about his approaching death, but a wise man of 70 should always take it into account. …He would be criminally foolish not to make, indeed not to have made long since, his will.” C. S. Lewis (1898-1963).

    Do I need a living trust or a will? Or both? This is just one of the reasons people think they want a trust: to ensure that the value of their overall estate will not decrease, because of the cost of probate. The most common way to do that is with a trust, says The Houston Chronicle in the article “Elder Law: Which should I have—A Living trust or a will?”.

    In some states, probate is not an expensive or overly time-consuming issue. Texas, for example, has what is called an independent administration. Executors handle the tasks involved in settling an estate and distributing assets to beneficiaries. As a result, there’s very little court involvement. However, New York does not have that process and as a result probate has extensive court involvement. An estate planning attorney in your area will be able to explain the details of your state’s procedures and discuss whether a trust is right for your estate. They’ll also explain the difference between different types of trusts.

    The trust most frequently used to avoid probate, is known as a revocable trust, living trust or an “inter vivos” trust.

    Selecting the best type of trust for each situation is different. Here are some advantages of living trusts:

    Avoiding probate. The cost of probate alone is not reason enough to use a trust. However, if your assets are in trusts, you may not need to file an inventory listing your assets with the court. That’s not always required in every jurisdiction, but if it is required where you live, a trust can help keep your asset list private, by ensuring that it is only seen by beneficiaries.

    Asset management for incapacity. A living trust goes into effect, while you are alive. If you become incapacitated, an alternate trustee can step in to manage assets, pay bills and ensure that finances are taken care of.

    Avoiding probate in another state. If you own out-of-state property, your estate may need to be probated in your home state and in the other state. If you have a living trust, out-of-state parcels of land can be deeded into the trust during your lifetime, thus avoiding the need for probate in another state. After your passing, your trustee can handle the out-of-state property in the living trust.

    Administrative ease. There are, unfortunately, instances when Power of Attorney can be challenged by financial institutions. The authority of a trustee is more likely to be recognized, by banks, investment companies, etc.

    There are some questions about whether it’s better to have a living trust or a will. The most complex part of having a living trust, is the process of funding the trust. It is imperative for the trust to work, that every asset you own is either transferred into the trust or retitled into the name of the trust. If assets are left out or incorrectly funded, then probate will probably be necessary. This can occur, even if only one single asset is left out.

    If an asset is controlled by beneficiary designation, then the trust may not need to be named a beneficiary, should you want it to pass directly to one or more beneficiaries.

    Funding the trust becomes complicated, when retirement accounts are involved. Consult with an experienced estate planning attorney, if you want to make the trust a designated beneficiary of a retirement account. This is because very specific and complex rules may limit the ability to “stretch” the distributions from the account.

    Using a trust instead of a will-based plan is growing in popularity, but it should never be an automatic decision. An estate planning attorney will be able to explain the pros and cons of each strategy and help you and your family decide which is better for you and what advanced directives are required.

    Reference:

  • Life Insurance in My Estate Plan?

    Life Insurance in My Estate Plan?

    You’re not alone if you don’t fully understand the value and benefits that life insurance can give you as part of a retirement plan. Kiplinger’s recent article, “Don’t Overlook Advantages of Making Insurance Part of Your Retirement Plan,” says many folks see life insurance as a way to protect a family from the loss of income in the event a breadwinner passes away during his or her working years.

    If that’s your primary purpose in buying a life insurance policy, it’s a solid one. However, that income-replacement function doesn’t have to stop in retirement.

    When a spouse passes away during retirement, the surviving spouse frequently struggles financially. Some living expenses might be less when there’s just one person in a household, but the reduction in costs rarely makes up for the drop in income. One of the two Social Security checks the couple was getting goes away, and a pension payment may also be lost or reduced 50% or 75%. Life insurance can be leveraged to make certain there’s sufficient cash to compensate for that missing income. This lets the surviving spouse maintain his or her standard of living in retirement.

    Why should I have Life Insurance in My Estate Plan? There are several sections of the tax laws that give life insurance income tax and transfer tax benefits. For example, death benefits typically are paid income-tax-free to beneficiaries and may also be free from estate taxes, provided the estate stays under the taxable limit. Also, any benefits paid prior to the insured’s death because of chronic or terminal illness also are tax-free. This is called an accelerated death benefit (ADB) and is a pretty new option. If your insurance doesn’t have this coverage, it can probably be added as a rider.

    Finally, cash values can grow within a permanent life insurance policy without being subject to income tax. Any cash values more than the policy owner’s tax basis can be borrowed income-tax-free as long as the policy stays in effect. But if you were to pass away prior to paying back your policy loan, the loan balance plus interest accrued is deducted from the death benefit given to the beneficiaries. This may be an issue if your beneficiaries require the entire amount of the intended benefit. When the loan remains unpaid, the interest that accrues is added to the principal balance of the loan. If the loan balance increases above the amount of the cash value, your policy could lapse. That means you could you risk termination by the insurance carrier. If a policy lapses or is surrendered, the loan balance plus interest is considered taxable, and the taxes owed could be pretty hefty based on the initial loan and interest accrued.

    There are fees that can includes sales charges, administrative expenses, and surrender charges. That’s in addition to the cost of the insurance, which grows as you age.

    Just because you’re retired doesn’t mean you don’t still need the protections and benefits life insurance can offer you and your family.

    Reference:

  • Do I Need an Attorney to Get a Divorce?

    Do I Need an Attorney to Get a Divorce?

    For many, divorce is one of the most stressful and unpleasant times in their lives. For others, it’s simply a confusing and inconvenient hurdle to get through. Whichever situation applies to you, you probably want to get things moving along as quickly and as smoothly as possible after making the decision to end your marriage. Even though it might seem like a wise course of action to file for divorce without a lawyer in order to save money, it won’t be as quick or simple as you might think.

    While New York law does not require that you have legal representation when filing for a divorce, you’ll discover that there are numerous situations in which you will find yourself in need of a family law attorney’s assistance. You’ll find that it takes a full-time job’s worth of effort and excellent organizational skills to negotiate the numerous documents, deadlines, and processes that make a divorce final and legal.

    Helping You Get What’s Best for You and Your Family

    You probably never imagined that you’d find yourself thinking about a divorce or in a legal fight against someone you thought was the love of your life. The compassionate attorneys at the Law Offices of Frank Bruno, Jr. understand this emotional rollercoaster that you’re likely going through.

    We understand that you want to get through the divorce quickly and painlessly. But to do this, you’ll need to have the help of a tenacious and knowledgeable NY divorce attorney from the Law Offices of Frank Bruno, Jr. by your side.

    What’s so Complicated About the Process of Divorce?

    Getting a divorce is generally a straightforward process when all of the necessary steps and documents are completed to a T. Even if your spouse doesn’t cooperate throughout the divorce, there are still ways to dissolve the marriage, but the “devil is in the details.”

    Complications often arise when it comes to dividing marital assets, calculating alimony, and determining child support and custody arrangements. This is where having a smart and experienced NY family law attorney is invaluable.

    The following issues must typically be settled in a divorce:

    Naturally, child custody and child support won’t be a problem if there are no children involved or if both parties are older than 21.

    What Actually Transpires in Court

    Contrary to what you may have observed in the media, very few divorce cases actually end up in court. There will be no opportunity for you to give a testimony or “explain your side of the story” to a judge.

    What does take place is a meeting between the judge and your attorney, usually in the judge’s chambers. Your attorney will fight for you and provide the judge with a summary of the crucial points in your divorce. The lawyer for your soon-to-be ex-spouse will also be permitted to address the judge. The Judge can issue a few temporary Orders or share with the counsel his or her overall assessment of the situation, which will direct the lawyers toward a favorable resolution of the case.

    Contact us Today

    As you can see, the divorce procedure in New York is quite difficult. Even though some divorces are very straightforward, divorces involving children, complex property distribution difficulties, or other disagreements typically benefit from legal counsel.

    If you need help with your divorce, consider contacting an experienced divorce attorney at the Law Offices of Frank Bruno, Jr. We provide legal services to clients across New York City

     

    Frequently Asked Questions About Getting a Divorce in New York

    Can I get an annulment instead of a divorce?

    Sometimes. An annulment is similar to a divorce in that it can end a marriage. However, a divorce ends a valid marriage while an annulment declares the marriage void as if it never existed.

    Depending on the facts of your marriage, a divorce will be possible while an annulment will only be feasible if certain conditions are met. These conditions include:

    – Being less than the age of 18 when marrying and having no sexual relationship with your spouse after turning 18.
    – Having entered into the marriage by fraud or trickery.
    – You or your spouse were already married to someone else at the time of your marriage.
    – There is too close a familial relationship between you and your spouse.
    – Impotence.
    – A mental condition prevented you or your spouse from making an informed decision to marry.

    In New York, an annulment requires a judge-led trial and hearing. An annulment requires the filing spouse to establish at least one of the grounds in court, unlike a divorce, which a judge can award after receiving written or sworn testimony without a trial.

    What happens if my spouse doesn’t want a divorce?

    Some might refuse to agree to divorce when their spouse asks for one. If you find yourself in this situation, divorce is still possible. There are several approaches to take, but one of them is to get a default divorce. This is useful when the spouse that does not want a divorce completely ignores everything you’re doing to try and dissolve the marriage.

    One thing to keep in mind is that while your spouse has no choice in whether a divorce takes place or not, they can still contest the terms of the divorce. This includes child support, custody, alimony, and equitable distribution.

    The Experienced Divorce Attorneys at the Law Offices of Frank Bruno, Jr. Can Help You with Your Divorce

    No one enjoys the divorce process. To help you get through it as quickly as possible and still obtain the terms you and your family deserve, please contact us today.

  • What Expenses Can Be Paid from a Special Needs Trust?

    What Expenses Can Be Paid from a Special Needs Trust?

    Special needs trusts are an important part of estate planning. They are sometimes called supplemental needs trusts. They provide families with a safe, secure, and protected way to ensure the long-term care and financial well-being of their children or other loved ones with special needs. Unfortunately, issues can arise and conflicts can emerge where Special Needs Trusts overlap with certain types of government benefits or assistance. This also applies to understanding the kinds of expenses that can be paid from a Special Needs Trust. As such, you should seek expert legal counsel for setting up a Special Needs Trust and understanding how to manage your trust. Speak with the expert Special Needs Trust attorney at the Law Offices of Frank Bruno, Jr. today to learn more.

    Understanding Special Needs Trusts

    Many families and children rely on Medicaid, SSI, and Social Security Disability payments, but these benefits must be protected since they are often means-tested. If a child or beneficiary has more than a certain amount of money or assets in their name, they can lose their benefits.

    As such, Special Needs Trusts (SNTs) are designed to provide supplemental benefits to people with disabilities while allowing them to maintain their eligibility for these types of government benefits. SNTs are used to cover expenses that government benefits do not cover. Having both an SNT and access to government benefits helps the individual in question protect their financial well-being as comprehensively as possible.

    Furthermore, disabled children and other beneficiaries of an SNT may not have the capacity to take care of their assets. This is where a Special Needs Trust can help protect those assets while maintaining the beneficiary’s eligibility for government benefits. Doing so requires an understanding of the law and how payments can affect the trust. Call the Law Offices of Frank Bruno, Jr. to learn more about what we can do to protect the financial well-being of your family and your disabled loved one.

    Some people think that they can leave everything to a relative and allow them to manage the share of a disabled child, while others may wish to set up an SNT even if one is not needed. In the first case, funds should be irrevocably set aside for a child with a disability because the financial situation of an assigned relative can change and however well-meaning they are, they may be tempted to use the child’s funds for themselves. For the second case, an SNT is not always needed, such as if someone wins a large court settlement for an accidental disability. SNTs are for those who need to but cannot work and/or hold a job and depend on government benefits.

    Expenses That Can Be Paid from a Special Needs Trust

    Here is a non-exhaustive list of expenses that you can use your SNT to cover:

    • Healthcare-related medications, medical equipment, case management, and services such as counseling that are not already covered by Medicare or Medicaid;
    • Insurance premiums, including health, dental, and life insurance, as well as auto insurance;
    • Furniture and/or home renovation and accessibility upgrades;
    • Internet access and phone service expenses;
    • School tuition, camp fees, and job coaching expenses;
    • Clothing and home appliances.

    This list illustrates the types of expenses that an SNT can pay for. Anything not deemed a basic necessity but can improve the quality of life of the beneficiary can be paid for by an SNT.

    It is important to remember that basic needs (including food and shelter) can be paid for using an SNT but that may lead to a decrease in the recipient’s government benefits. As such, please speak with the Law Offices of Frank Bruno, Jr. for a thorough assessment of which expenses and outlays to cover from your SNT and which to cover from additional government benefits.

    Expenses That Cannot Be Paid from a Special Needs Trust

    Beneficiaries – or their trust administrators – can only use funds from their trust to cover specific supplemental needs. These funds cannot be used for basic needs, because the funds would then be considered income and this would affect the beneficiary’s SSI eligibility.

    Funds from a Special Needs Trust cannot be used for basic necessities such as:

    • Groceries
    • Utilities
    • Rent and mortgage payments or property taxes
    • Homeowners’ or renters’ insurance
    • Cash, such as an allowance, given directly to the beneficiary

    In addition to the list provided above, non-essential expenses that are supplemental and can be paid for with funds from an SNT include wheelchairs costs, mechanical bed costs, accessible van expenses, special therapies, and recreational and/or life-enhancing cultural experiences. It can be difficult to determine – and prove – how and why a certain expense is or is not supplemental and how it would enrich your child or the beneficiary’s life. However, the seasoned estate planning lawyer at the Law Offices of Frank Bruno, Jr. can help you determine what constitutes supplemental needs vs. necessities so that you can create a thorough and comprehensive financial security plan for your loved one.

    Trustee Discretion with SNT vs. Government Assistance

    As for all trusts, a trustee, administrator, or executor can be assigned to manage funds and/or a trust on the behalf of a beneficiary. Ideally, the trustee should be someone who is responsible for – and is committed to – the beneficiary. This can be a relative or even a professional trustee in case there are no family members available.

    The SNT trustee or administrator must use their discretion when making expense decisions on behalf of an SNT recipient. They must also regularly consult with an experienced attorney such as the special needs planning and SNT lawyer with the Law Offices of Frank Bruno, Jr. to make sure that the SNT trust is properly administered and that the beneficiary not only has their needs met but that they retain their access to and eligibility for government benefits.

    Contact the Law Offices of Frank Bruno, Jr. Today for a Thorough Case Evaluation

    It can be difficult to properly establish a Special Needs Trust, and any mistakes along the way can seriously harm your disabled loved one or the beneficiary. Many important considerations must be kept in mind with regard to public benefits eligibility, tax status, and the impact of an SNT on your overall financial and estate planning. The special needs planning lawyers with the Law Offices of Frank Bruno, Jr. are just a call away. Our team can meet with you to thoroughly understand your needs, create a sound financial plan and trust for your family, and walk you through everything you need to know about the process. Do not hesitate to call us today.

  • What’s the Difference Between Administrator & Executor of Estate?

    What’s the Difference Between Administrator & Executor of Estate?

    Administrators and executors of the estate, assets, or trust of a decedent (that is, a person who has passed away) perform the same duties with respect to the will, trust, or estate that they are charged with caring for. The key difference between the two comes down to how the administrator or executor is appointed. There are benefits to using an executor instead of an administrator, but many situations may require the appointment of an administrator. To better understand the rules, laws, and situations that apply to executors and administrators, speak with an experienced estate planning attorney at the Law Offices of Frank Bruno, Jr.

    Key Differences Between Administrators and Executors

    Whenever someone passes away, their property, assets, and will must pass through probate. This is the legal process of formally transferring the ownership and/or control of a decedent’s estate to the legal heirs and/or as per the decedent’s wishes as outlined in their will.

    An executor is someone nominated in the will of a decedent to manage the decedent’s estate. In the absence of a named executor – or if there is no will – then an administrator is appointed by a court. Once appointed, the roles of the two are very similar, and an estate planning lawyer can help you appoint an executor of your estate so that your heirs and loved ones do not need to rely on the court for appointing an administrator and handling your estate.

    For executors, since they are appointed in the will of the deceased person, they distribute the deceased’s estate as per the instructions outlined in their will. An administrator, in contrast, is only appointed when there is no executor specified in the decedent’s will or there is no will in the first place. This means the administrator will have to handle the decedent’s estate in accordance with the laws of succession, which are typically the decedent’s legal relatives and next-of-kin.

    The Law Offices of Frank Bruno, Jr. Can Assist with Choosing an Executor

    You should have a will in place and choose an executor whom you explicitly know and trust. Without a will, your loved ones may face a lengthy legal process of distributing your assets. With a will in place – and a named and trusted executor who has the power to make decisions regarding your estate in your absence – your loved ones can more quickly and easily handle probate and wrap up the legal and financial processes associated with your estate.

    It is also a good idea to appoint multiple executors or alternate executors if a named executor is unavailable or passes away before you do. An experienced estate planning lawyer with the Law Offices of Frank Bruno, Jr. can help with this process so that all tax, financial, and legal implications of your passing are handled as quickly, smoothly, and professionally as possible.

    Assigning an Administrator in the Absence of an Executor

    It is entirely possible, of course, that someone passes away without first writing their will or selecting an executor for their estate. In such cases, the appointment of an administrator will become necessary, but it can also lead to many complications. The Law Offices of Frank Bruno, Jr. can guide you through whatever legal issues you face under such circumstances. However, it is worth noting that the court will require family tree and kinship details of the decedent to be provided before the disbursement of the decedent’s estate and proceed.

    This is known as a kinship affidavit. However, drafting this document and submitting it to the court with the requisite proof and evidence can be difficult, particularly if the decedent did not have close family members such as a spouse or children or other family members. In cases where the nearest next-of-kin are either unknown or are distant relatives such as cousins, then a public administrator may be assigned to manage the decedent’s estate as the estate administrator.

    With or without near next-of-kin, a kinship hearing may be required in which the relations between the decedent and the family are established. The help and guidance of an attorney may be useful here, such as the expert estate planning lawyer with the Law Offices of Frank Bruno, Jr. Our attorney will handle the often complex hearing in which all of the decedent’s relatives provide birth, marriage, and death records to prove their relationships with the deceased.

    Complications in Estate Planning and Administrator and Executor Duties

    There are many hurdles that you and your family may face when estate planning and many complications can arise after someone passes away. The writing of a will and the appointment of an executor is the first hurdle. The second can be the selection of an administrator in the absence of an executor. The third may be establishing the proof of kin and family relationships in a kinship hearing and gathering the evidence required in this hearing from relatives and loved ones who may have lost touch over the years or died in different towns or districts.

    One often overlooked issue is that of posting a bond for the decedent’s estate. In some cases, the court may require an estate administrator to post a bond to ensure the safety of a decedent’s estate. While most wills are drawn up with provisions waiving such a requirement, it is something that must be considered.

    Apart from writing a will, selecting an executor, and posting a bond, there are many other examples of how poor estate planning can hurt your loved ones. The first, of course, is failing to plan, but the next most important one is not discussing your plan with family and friends so that they are “in the know” before it is too late. Naming only one executor should also be avoided, and keep in mind the costs associated with final arrangements such as burial and funeral costs. Be sure to assign Power of Attorney and Healthcare Representatives as needed, and always include details on digital assets, charities that are important to you, and the tax implications of your will in your estate plan.

    Contact the Law Offices of Frank Bruno, Jr. Today for a No-Obligation Case Evaluation

    Don’t leave anything to chance, and plan today to avoid issues and complications tomorrow. Our team is here to help you, and we have the knowledge and expertise needed to professionally handle estate planning, executor, administrator, and will and testament issues of every kind. To learn more about how we can assist you, contact the Law Offices of Frank Bruno, Jr. today for a free case evaluation.