- GuardianshipAnother estate planning tool that relates to issues during the person’s life is a durable power of attorney. This is a very important tool as it enables the person so designated, the “agent”, or “attorney-in-fact”, to deal with the donor’s property as well as almost any other aspect of the donor’s life. A durable power of attorney continues despite any subsequent disability of the donor unless it is revoked or until the donor of the power of attorney dies. A power of attorney can be limited to only a specified number of transactions or to limited types of transactions, for example, to only one real estate or banking transaction or only to insurance matters. A durable power of attorney may also help avoid the need for a Special Guardianship proceeding in the event of a subsequent disability or incompetence of the donor. This proceeding requires Court approval and is both expensive and time-consuming. It can be additionally burdensome if contested by other family members.
- Construction LitigationOther special considerations may relate to storage of buyers’ furniture in the residence prior to closing; repairs required by the lender but not revealed by the home inspection; accuracy of lender’s good faith estimates of closing costs; unusual conditions in the lenders’ commitment letter; absence of one spouse at time of closing; buyer-broker considerations; covenants and restrictions affecting your title; homeowner’s association dues in planned-unit developments; new construction issues, and many more. Remember to discuss any special concerns you have with your attorney as early in the transaction as possible to help ensure proper representation.
- Real Estate TransactionsIt is important to note that the Law requires that the PCDS be signed by the seller and delivered to the buyer PRIOR TO THE SIGNING BY THE BUYER OF A BINDING CONTRACT OF SALE. A copy of the PCDS containing the signatures of the seller and buyer must also be attached to the real estate purchase contract.
- Estate PlanningEstate Planning is the process by which a person tries to optimize the use of their assets so as to allow them to grow, keeping controls over those assets while the person is alive and then provides for the orderly disposition of those assets at death or upon the advent of a physical or mental disability. A person need not have a large estate in order to need an estate plan. Anyone who has even a modest amount of property, either real or personal, and certainly anyone who has minor children, should discuss an estate plan with their attorney, financial advisor and accountant and should study the various reference resources available at the public library and elsewhere to determine what will happen to their property in the event of their disability and/or ultimate death. It is also very important to plan for what would happen to minor children, should the parents die.
- WillsIn order to decide whether a trust is best, it is important to understand how each one works. Much has been written lately concerning “living trusts” and their benefits when compared to the more common will and probate process. Each is an important tool and can be appropriate for an individual’s estate plan.
- TrustsOne type of trust which is often written about is the revocable inter vivos trust, or living trust. The often-cited benefits of living trusts are reduced expenses maintenance of privacy and avoidance of delays which are involved with probate.
- Power of AttorneyFirst, the title search may contain errors or the public record upon which the title search is based may contain errors. Furthermore, your ownership of real property may be subject to hidden risks which would not be revealed in a title search. Hidden risks involve certain claims to property which would not be revealed by a title search. Examples of such hidden risks are forged documents affecting the title, the impersonation of the true owner at a prior closing, instruments executed by someone without the capacity to execute such an instrument such as minors, incompetents, or documents executed under an expired or revoked power of attorney, or claims resulting from decedent’s estates if heirs are not afforded the proper notice of the estate proceedings. The most diligent title search will not reveal such defects.
- Probate
- Tax LawAlthough the recent changes in the federal estate and gift tax laws mean that most people no longer have to do any federal estate or gift tax planning, it is still important for some very high net worth individuals and anyone having an estate in excess of $5.25 Million to consider N.Y.S. estate tax planning. Also, the recent changes to federal estate tax law will expire at the end of 2025 unless Congress acts to extend the current $11.2 Million exemption. If Congress fails to extend the current law, the federal non-taxable limit will be reduced to $5.25 Million and under current NYS rules, the NYS exempt amount will be the same.