New York Probate Lawyer Blog

May 29, 2019

An Important Part of Estate Planning In New York Is To Understand Property Ownership

Estate Planning in New York involves a number of items to be reviewed. Most individuals initially approach planning by determining how their estate is going to be distributed. Thus, decisions are made as to various bequests that are to be provided in a Last Will. A simple bequest may be a specific dollar amount, say $5,000, to be given to a named individual. There may also be a devise of a certain interest in real estate to a designated individual. Other types of dispositions may include creating a trust for a minor child or a Supplemental Needs Trust for a person under a disability. Also, there can be residuary dispositions to individuals or even charities whereby the balance of an estate is disposed of.

However, before the dispositions in a Will can be determined it is imperative to determine which assets are to pass under a Will as part of the probate estate. The New York Probate Lawyer Blog has published many articles concerning estate planning and property ownership. If an asset passes by operation of law, such as a joint bank account, or the asset has a beneficiary designation such as life insurance, then the asset is not controlled by the Last Will. As a result, there may not be sufficient assets passing under a Will to satisfy the various bequests and dispositions set forth in the Will terms.

As can be imagined, it is very important to understand how assets are owned so a determination can be made as to how they are to be disposed of at death. This issue was recently shown in a recent Manhattan estate case decided by New York Surrogate Rita Mella on May 23, 2019, entitled in Matter of Estate of Watson. This case involved a cooperative apartment owned by two individuals, Watson and Vicic, life partners. They died within a year of each other and a dispute arose between their estates as to the ownership of the cooperative and entitlement to the net sales proceeds. Watson died intestate without a Will and Vicic died testate with a Will.

May 22, 2019

Did You Know That New York Will Contests Have Limited Discovery Periods

by Jules M. Haas

Contesting a Will in New York is a complicated matter. There are a number of Statutory and Court prescribed rules that control these proceedings. The New York Probate Lawyer Blog has published numerous articles concerning Will Contests.

When someone is challenging the validity of a Will, essentially they are asserting that a basic requirement of an enforceable Will is lacking. Many references have been provided in this Blog to Estates, Powers and Trusts Law (EPTL) section 3-2.1 entitled “Execution and attestation of wills; formal requirements”, which sets forth the requirements for executing a Will. This statute mandates that there be at least two (2) attesting witnesses and that the Will be signed at the end of the document. One of the main Will Objections that is typically interposed is that the document was not properly executed. Cases abound where there are issues created when the paper is not signed by the testator in the presence of a witness or the witnesses do not recall whether the testator identified the paper as a Will.

Additional grounds for Objections to a Will include undue influence, fraud, lack of testamentary capacity and coercion. Sometimes forgery is alleged. Whatever the reasons are for claiming the Will is invalid, it is important to recognize that most Will Contest cases are determined based upon the information obtained during the document and deposition discovery phase of the case. During discovery the attesting witnesses and the attorney who drafted the Will and supervised its execution are required to give pre-trial testimony and turn over relevant documents.

May 15, 2019

Did You Know That A Person May Be Presumed Dead After A Three Year Absence

by Jules M. Haas

New York estate settlement involves many different types of rules and statutes. When a person dies the first question to be asked is whether the decedent had a Last Will and Testament or whether he died intestate. Once this fundamental issue is established either a probate petition or a petition for Letters of Administration can be filed with the Surrogate’s Court.

The New York Probate Lawyer Blog has published numerous articles concerning the need to provide the Court with all the names and addresses of a decedent’s next of kin. It is not uncommon for kinship information to be missing or difficult to obtain. Sometimes the services of a professional genealogist are needed to track down missing heirs. Also, the Surrogate’s Court may require that a kinship hearing be held to determine the status of individuals claiming to be a decedent’s distributees

While finding lost heirs is important, there are situations when determining the status of a possible decedent arises. The problem is showing whether this person is alive but just avoiding contact, or whether, in fact, the person is deceased. During this period of uncertainty, the missing individual’s affairs and assets are in limbo and not being attended to.

May 8, 2019

A New York No Contest Clause Cannot Prevent Inquiry Regarding a Trustee’s Misconduct

by Jules M. Haas

There are many different types of provisions that can be written in a Last Will and Testament. The most common terms include bequests to named beneficiaries and other clauses that provide for the disposition of assets. Also, the Will should name Executors and Trustees as well as proposed Guardians if minors are possible beneficiaries in an estate plan.

One of the more common provisions that is found in a Will is known as a “No-Contest” clause. This language is also referred to as an “In Terrorem” clause. The Estates, Powers and Trusts law provides the rules concerning this type of language in section 3-3.5 entitled “Conditions qualifying dispositions; conditions against contest; limitations thereon”. Essentially, this direction in a Will sets forth that any beneficiary who may contest the Will is to lose all rights to receive any benefits provided in the Will. Thus, if a person were to receive a $1,000.00 bequest in the Will but unsuccessfully challenges the validity of the document, he would forefeit his right to receive the $1,000.00. No-Contest clauses can be the source of estate litigation in the Surrogate’s Court.

The statute allows some exceptions which include discovery under Surrogate’s Court Procedure Act section 1404. Additionally, the prohibition does not apply to an infant or incompetent.

May 1, 2019

The Importance of Safeguarding The Original of a New York Last Will

by Jules M. Haas

Estate planning in New York is important. The creation of a Last Will and Testament and other documents such as a Living Trust, Health Care Proxy, Living will and a Power of Attorney, allows a person to control the disposition of assets and provide directions regarding personal decision-making.

It requires a lot of time and effort to create and finalize these papers. Assets must be reviewed as well as beneficiary designations and property dispositions. Alternate dispositions need to be considered in the event primary beneficiaries pre-decease a testator. The selection of fiduciaries such as Executors and Trustees, and their possible successors, need to be considered. Finally, all the documents that need to be signed must be reviewed and properly executed. Estates, Powers and Trusts Law (EPTL) section 3-2.1 entitled “Execution and attestation of wills; formal requirements” provides strict rules regarding the execution of Wills. The New York Probate Lawyer Blog has published numerous articles regarding the execution of Wills and Will Contests.

Once the above papers are signed it is also important to be certain that the original documents are maintained in a secure location. The various ways to keep these papers include a safe at home or in a secure filing cabinet or on file with an attorney. Sometimes the papers can be placed in a safe-deposit box although this can present problems after death since access may be restricted without a Court Order.

April 24, 2019

Did You Know Estate Settlement May Require A Beneficiary to Reimburse Estate Funds

by Jules M. Haas

The administration of a New York estate typically is comprised of three stages. The first stage involves the appointment of an estate fiduciary such as an Administrator when the decedent dies intestate or an Executor when there is a Last Will and Testament. In most cases this stage is uneventful and after a complete petition and supporting papers are filed with the Court the fiduciary is appointed. Sometimes, there is estate litigation concerning a contested Will or the appropriate person to be appointed as Administrator. Kinships may also be an issue.

Stage two of an estate involves the collection of assets and the payment or settlement of claims and estate obligations. Surrogate’s Court litigation may also be needed here if there are disputed issues regarding estate liabilities and the ownership of assets. An estate executor or administrator has a fiduciary obligation to collect and protect the estate assets. Creditor’s claims and tax issues can complicate the finalization of the decedent’s affairs.

In the third and final stage, the estate fiduciary is ready to distribute the net assets to the beneficiaries. The fiduciary usually prepares an Accounting. This document contains detailed information as to all of the estate assets and income collected as well as all of the expenses and other items paid from the estate. The accounting will set forth various unpaid items to be paid such as fiduciary commissions and attorneys or accountant fees. It may also contain proposals for the manner in which the net estate is to be distributed by providing a final calculation of each beneficiary’s interest.

April 17, 2019

What Is a Preliminary Executor and Why Should The Court Appoint One

by Jules M. Haas

When a person engages in estate planning and preparing a Last Will and Testament, numerous items of information and directions are set forth in a Will. Along with providing provisions naming beneficiaries and describing distributions of assets, a testator needs to designate fiduciaries such as Executors and Trustees.

The selection of Executors is a very important aspect of planning an estate since such designees are to be responsible for handling all estate affairs and settling the estate. Typically, the testator nominates a primary executor as well as successor Executors. The New York Probate Lawyer Blog has published many articles concerning the selection of fiduciaries and other aspects of estate administration.

The Executor of a Will is appointed when the Will is admitted to probate. At that time Letters Testamentary are issued to the Executor. However, there are occasions when the probate of the Will may be delayed. Such delays may be due to a Will Contest or the search for next of kin. Also, there may be a need to locate the original signed copy of a Will or an attesting witness who is needed to sign an affidavit.

April 10, 2019

The Selection of New York Executors and Trustees Is Important In Estate Planning

by Jules M. Haas

Planning an Estate in New York involves many considerations. At the outset of the process, particular care must be taken to understand the nature of the assets to be covered by the estate plan. Assets that are owned in an individual’s name alone would be subject to the terms of a Last Will. Such assets could also be transferred into a Grantor or Living Trust. On the other hand, assets that are owned jointly or which have designated beneficiaries would pass automatically on death to the survivor or beneficiary. Thus, these items may not be controlled by a Will or Trust. The New York Probate Lawyer Blog has discussed the importance of identifying ownership rights in property in numerous articles.

Another critical consideration in any type of plan is the selection of fiduciaries to manage and administer the fund that comprises an estate or trust.

Most often, the selection of an Executor or Trustee is an easy decision. A close family member such as a spouse or child is typically the first person to be designated. However, there are always considerations as to whether such persons have the appropriate qualifications to serve in such capacity. There may be health or medical issues that might interfere with a person’s ability to act as a fiduciary. Also, issues such as a conflict of interest may arise particularly where the proposed fiduciary may have some direct or indirect interest in how the estate or trust is administered or invested.

April 3, 2019

Learn About Limitations To Discovery In New York Will Contests

by Jules M. Haas

The filing of a Will Contest with the Surrogate’s Court brings to mind melodramatic stories of family intrigue and deception that are played out in movies, novels and other media outlets. In reality, Contests regarding a Will in New York are rather common occurrences that are subject to strict statutory and procedural guidelines.

When a person dies and leaves a Will, the document must be offered for probate. This means that the validity of the Will is not achieved until the Surrogate admits the Will to probate. A probate proceeding involves the notification of the decedent’s next of kin and other interested parties who are the ones who have the right to challenge a Will. The New York Probate Lawyer Blog has published numerous articles about Wills and probate. The basic grounds upon which a Will is challenged are lack of due execution, lack of testamentary capacity, undue influence and fraud. Sometimes an allegation may be made that a Will has a forged signature.

The Objectants to a Will, as well as the proponents, engage in a lengthy period of discovery that is meant to allow the parties to ferret out facts to support their positions. This discovery process includes deposition testimony of various witnesses including the attesting witnesses to the Will and the attorney who drafted the Will. Also, various documents can be obtained and reviewed including the decedent’s medical and financial records.

March 27, 2019

What Happens When A Guardian Or Estate Fiduciary Needs To Safeguard An Apartment

by Jules M. Haas

An Article 81 Guardian appointed to safeguard the person and property of an incapacitated person may need to deal with an assortment of issues. Similar responsibilities are given to the Executors and Administrators of an estate.

In particular, the property interests of both an incapacitated person and a decedent’s estate may involve an apartment where the person was residing. When a person dies, if the apartment was not owned in nature of a co-op or condominium unit, the estate fiduciary must arrange to obtain access to the apartment. The need for access can include securing valuable articles of tangible personal property, locating asset information such as tax returns, bank account statements and brokerage and retirement fund information. Additionally, the apartment will need to be cleaned out at some point and returned to the possession of the landlord. Of course, if there are other family members living in the apartment who refuse to leave or provide access or who have claims to continue to occupy the premises in the nature of succession rights, then the fiduciary must grapple with these issues. The New York Probate Lawyer Blog has published numerous articles concerning problems in obtaining possession of a decedent’s real property.

The Guardian for an incapacitated person may face similar issues particularly if the ward is now residing in a nursing home or other location. An issue may arise as to whether the incapacitated person intends to return to the community to live in the apartment. A landlord may want the ward evicted, particularly if the apartment is rent regulated.