Trusts & Estates

Trust & Estate Administration

Executors are responsible for:

Gathering the Estate

The Executor must identify and locate all of the decedent’s

assets, such as Bank Accounts, CDs, Stocks, Bonds, Real Estate,

Pensions, Life Insurance Policies, Death Benefits and Safe

Deposit Boxes (these must be opened and inventoried).

Valuation of Assets

Property such as Cash, Stocks, Bonds, Life Insurance, Real Estate, and interest in a closely held Corporation or Partnership must be valued.

Payments of Debts and Administration Expenses

It is the Executor’s responsibility to pay expenses such as Taxes, Medical Bills, Funeral Costs and other debts of the Decedent.

Distribution of Assets

The Executor will distribute the Estate in accordance with the Will, and if none, then in accordance with the laws of New York State.

Payment of Individual Income Taxes

The Executor must ascertain whether the Decedent is required to file Federal and New York State Income Tax Returns.

Payment of Estate Taxes

The Executor may have to file Federal and New York State Estate Tax Returns and arrange for payment.

Payment of Estate Income Taxes

The Executor may have to file Federal and New York State Fiduciary Income Tax Returns and arrange for payment.

Estate Taxes

Tax Rates

The maximum Federal Estate Tax rate in 2016 is 40%. New York has its own Estate Tax.

Exclusion Amount

Each individual is entitled to a Federal and New York State Estate Tax exclusion amount. The Federal Estate Tax exclusion is $5,450,000 in 2016. The New York State Estate Tax exclusion will rise from $3,125,000 in 2016 to match the Federal amount by 2017.

Unlimited Marital Deduction

An unlimited amount of property may be left to a surviving spouse without incurring any Federal or New York State

Estate and Gift Taxes.

Our Law Firm Will:

Inform the Executor about the estate administration process
Advise the Executor about his/her duties and prepare and file appropriate court documents
Prepare and file appropriate tax returns and insure that tax payments are made on a timely basis
Minimize taxes and insure the proper disposition of estate assets
Resolve family disputes
Analyze the interrelation of Estate, Individual Income and Fiduciary Income Taxes
Implement estate planning for beneficiaries, such as a surviving spouse

Trust and Estate Litigation

Unfortunately, there is an increasing need to litigate matters in the world of trusts and estates so that a “just result” can be achieved. The trust and estate laws can be complex and there a myriad of laws, requirements and obligations involving family addressing estate matters.

Last Wills and Testaments

The first area to consider are Will Contests in the context of a probate proceeding. When a loved one changes his or her Will (especially near in time to the decedent’s demise), one may call into question what were the true intentions of one’s loved one. Issues can arise when a family member has been removed as a beneficiary of the Will (or limited provisions have been made for said beneficiary).

A Last Will and Testament can be voided due to undue influence, lack of capacity or the improper execution of the Will. In such a situation, the disinherited beneficiary may be able to have the court void the Will and enforce a prior Will or have the estate pass by intestacy which can be to the disinherited beneficiary’s benefit.

Will provisions may be challenged due to a lack of clarity by a reformation proceeding which can make sure the wishes of the decedent are carried out as intended.

Sometimes, there is an issue regarding the Executor who fails to do his job properly. A removal proceeding can be brought to have the Executor removed and replaced. There are situations when the nominated Executor should not be appointed in the first place and his or her appointment can be challenged.

Other times, a beneficiary may be left out in the dark by the Executor during the estate administration. In such case, one can seek an accounting from the Executor as to the collection of the estate assets and income and the payment of estate expenses and distributions to the beneficiaries. The Executor has a duty to properly manage and invest the estate assets and a duty to file estate and income tax returns, when required by law.

Other times, an estate may have been reduced or eliminated by gifting prior to death or by retitling assets and/or beneficiary designations. Such actions, especially when undertaken by an agent under a Durable Power of Attorney or on one’s death bed, may thwart the testator’s real intentions as to who should benefit from his or her estate and in what manner. A turn over proceeding can be commenced to have the assets returned to the estate.

Trusts

Similar to the issues addressed under Wills, Trusts present similar issues and are subject to the same scrutiny. A trust may be challenged if not properly executed or executed under undue influence or at a time when one lacks capacity.

Trustees are charged with the carrying out of the trust provisions. Beneficiaries have a right to receive the trust assets as provided for in the trust. Trustees are fiduciaries and have a responsibility to the beneficiary for the proper administration of the Trust which includes proper management and investment of the trust assets.

When issues arise regarding the Trustee’s actions, beneficiaries can seek the services of an experienced trust and estate litigator to seek redress in the court.

Legal Services

At our law firm, we have represented individuals to ensure that their testamentary desires via a Will or Trust are carried out. We represent Executors and Trustees in the administration process which includes advising them of his or her responsibilities and defending said Executors and Trustees when claims are made against them by beneficiaries and family members. Lastly, we represent beneficiaries and family members who have issues regarding the implementation of a Will or Trust and the administrative process.

Before litigation, there are a number of avenues that can be taken to resolve problems in the most effective and cost efficient manner. At our law firm, we explore all options and strategies with our clients before commencing litigation. Litigation can be emotionally draining, time consuming and costly. Unfortunately, sometimes litigation is required in order to obtain justice.