Littman Krooks

Last year, Roman Blum died at the age of 97, leaving an estate valued at nearly $40 million. He also died without a will. Blum made millions building hundreds of houses in the vicinity of Staten Island. He had no known living family members, and if none are found, then his estate will escheat to the state of New York, making it the largest unclaimed estate in the state’s history.

This is an extreme example of poor estate planning, in which a man very successful in business nonetheless neglects the relatively straightforward task of directing where his money should go upon his death. It is unfortunate that this person missed the opportunity to leave bequests to his friends or charitable organizations that he cared about.

Blum’s estate is being handled by a public administrator overseen by the Richmond County Surrogate’s Court.  The administrator is in the process of selling Blum’s property, paying his taxes and conducting an extensive search for any living relative. If that search fails, the money goes to the state government.

Although this case is unusual, many people do not properly prioritize estate planning and fail to take full advantage of the choices they have in deciding how they would like their assets distributed when they die.  In addition, proper estate planning can save your heirs money by structuring your estate in a way that is most advantageous in terms of taxes and probate costs.

For more information about our estate planning services, visit www.littmankrooks.com.

When an older person becomes unable to live alone without additional care, it is often unclear to both the older person and family members just what should be done.  Thankfully, there are many options available to meet the unique needs of each person needing care and each family’s budget.

The option that most older people prefer is to stay in their home, and this may be possible depending on the level of care the individual needs.  If a parent has recently fallen ill, you may not have a good sense of how much additional care is needed.  You may wish to consider hiring a geriatric care manager to help you assess what type of day-to-day care is needed, from occasional assistance to full-time care.  A care manager can also tell you about any changes that may be necessary to the person’s home for safety and/or wheelchair access.

An assisted living facility is an option that sometimes becomes necessary either for the older person’s health or because of the family’s budget.  An assisted living residence is generally less expensive than full-time at-home care, and the level of care can be adjusted as the person’s needs change.  Although some older people are trepidatious about entering such a facility, many find that the activities and the sense of community with other residents add to their happiness and mental health.

When a parent or other loved one needs care that is simply not available in an assisted living facility, then the task becomes choosing a good nursing home.  You want a nursing home that provides a safe and caring environment and all the medical care that your loved one needs.  Plan to invest time in doing your research to find the right facility.  Cost is another concern, but Medicare pays for medically necessary care and Medicaid can help with the other costs if the patient qualifies.  To help determine the best way to meet the cost, consult with an elder law attorney.

For more information about our elder law services, visit www.elderlawnewyork.com.

Retirement should be a time for relaxation and enjoyment, but keeping track of your retirement finances can be a lot of work.  To make it easier, take a few steps to simplify things.

First, consolidate your retirement accounts.  It is not uncommon for retired individuals to have several accounts, such as different types of Individual Retirement Accounts (IRAs), profit-sharing plans and 401(k)s.  If multiple accounts have the same tax-deferred status, then they can be combined into one big IRA.

Consolidating all of your retirement accounts into one IRA makes everything easier to keep track of, from monitoring your returns to making sure you are taking your required distributions.  You can also more easily compare rates at different financial institutions.  Changing banks is simpler with one account, as is changing your contact information.

There can be some complications, especially regarding inherited IRAs and Roth IRAs, so consult your estate planning attorney when necessary.

When it comes to credit cards, the same advice applies: simpler is easier.  Many people have more credit cards than they need, including cards that were applied for as part of a promotion.  Multiple cards means more accounts to keep track of and more payments to make, increasing the chance of error.  Canceling old cards with low balances does not adversely affect your credit score, so try reducing to just two or three credit cards.

Finally, do not forget to stay vigilant about security measures. Nothing can complicate your life like having to deal with fraud or identity theft.  For online banking, use strong passwords that you change on a regular basis, and check accounts and your credit report regularly for fraudulent activity.

With your financial life simplified, you can spend your time in retirement as you were meant to: enjoying yourself.

For more information about our estate planning services, visit www.littmankrooks.com or www.elderlawnewyork.com.

Are Your Children Ready to Handle Your Estate?

Many parents spend a lot of time, energy, and money preparing estate plans intended to provide security for their children and grandchildren. While it’s common for parents to conduct numerous discussions with advisors in order to create a plan that will transfer their estate as smoothly as possible, they often neglect to hold similar conversations with their children.

When planning to pass your estate on to your heirs, it is important to consider how they might handle the new responsibility of receiving an inheritance. Parents may believe that the inherited estate will be used responsibly to help their children and grandchildren pay for furthering their education; to make it possible for one parent to stay home with young children; to ensure a secure retirement, or to be put to other responsible, sensible uses. The assumption that children share the financial values of their parents, however, may not be valid.  Many teenagers or young adults might prefer a sports car to a 401(k).

To communicate their values, may people write an ethical will, which basically states in a narrative form what is important to them and how their values were developed growing up and during their lifetimes.  By sharing your values with your loved ones, it is hoped that they will continue on with the next generation(s).  Many clients have shared with us that the ethical wills of deceased relatives are one of the most cherished and meaningful gifts they have ever received from a loved one.  In fact, several clients have saved the writings of loved ones for decades and they serve as an inspiration during challenging life situations.  There is no right or wrong approach to ethical wills; the words simply have to come from the heart.  Along with personal values and beliefs, we have seen clients share spiritual beliefs, hopes for future generations, life’s lessons, forgiving others, or asking for forgiveness, among many other themes.  After all, the money you leave will ultimately be spent; the values you impart may last forever.

While death and money are often uncomfortable subjects for discussion between parents and children, it is important to bring these topics up while you are alive.  Avoiding these conversations can jeopardize even carefully crafted estate plans.  To help ensure that your children are prepared, you may want to include them, if they old enough, in the process of planning.  The more they know about what to expect, the more prepared they will be.  Not only that, the more they know while you are alive, the less likelihood there will be problems when you are gone.  You will also want to let you children know where you keep important documents such as safe deposit box keys, birth certificates, passports, deeds, insurance policies, investment and bank statements, tax returns, Social Security numbers, and medical insurance cards and information.

Let’s face it: it is not easy for us to discuss money or legal matters with our family.  Many times, there are other issues involved such as relationships and control, which make it even more complicated.  But I ask you to ask yourselves the following question: would things be better or worse if something happened to me and I neglected to tell my loved ones what was important to me?  Remember, life passes by quickly.  In many cases, our lives are turned upside down in a matter of moments.  Take the time to discuss these issues.  You’ll be glad you did.