New York Probate Lawyer Blog

The New York Probate Lawyer Blog has discussed in earlier posts the variety of issues concerning the transfer of a decedent’s assets. One of the most common and valuable estate assets is the decedent’s home. A person’s home can be in the nature of real property such as a single family home. However, New Yorkers are very familiar with living in the setting of an apartment in a high-rise building. Apartments can be as valuable and the subject of controversy as separate residential realty. A decedent may have been living in a cooperative apartment or even in a residential building where he was the tenant in a rent-stabilized or rent-controlled unit. These different forms of property rights can present unique problems to be resolved during estate settlement.

In the case of a cooperative apartment, the decedent’s interests may have been bequeathed in a Last Will to family members or may need to be sold to a third party purchaser.  In each instance, the general rule in a cooperative building is that a transfer of the Unit cannot occur without approval of the cooperative board of directors.  In many cases, such approval is not  easily obtained since the cooperative board is given broad discretion to approve or disapprove of the transfer. Continue reading

A New York estate lawyer is familiar with the numerous problems that can arise regarding the administration of a decedent’s estate. Sometimes these matters are the result of actions or relationships that the decedent was involved with prior to death. The estate executor or administrator has a fiduciary obligation to resolve these disputes. Assets of the decedent must be protected and creditors claims must be satisfied or disposed of.

A recent post at hollywoodreporter.com on February 9, 2015 by Austin Siegemund-Braka reports about another chapter in the settlement of the estate of the late pop star Michael Jackson. The post, entitled “Hollywood Docket: Michael Jackson’s Ex-Manager Revives Neverland Ranch Dispute”, relates the details regarding a claim by the pop-star’s manager for unpaid commissions earned during Michael Jackson’s lifetime as well as a claim for a fee for securing a loan on Michael Jackson’s Neverland property to prevent its foreclosure. The estate executors opposed the claims and both parties had filed lawsuits in 2012 that were put on hold pending other related proceedings. The Court has now lifted the stay to allow the issue regarding the Neverland loan to move forward. Continue reading

It is very common that a person who dies or is incapacitated receives health care and services that are paid for by government agencies in the form of Medicaid. As New York estate lawyers often encounter, a decedent who had been ill and unable to pay for his care through private insurance or personal funds probably would have had his care paid through Medicaid. Medicaid payments can cover persons who live at home or who reside in nursing homes or other facilities. Particularly where a person has had a serious illness with extensive hospitalization and nursing home stays, the expenses that are paid by Medicaid can be quite large. Under various state laws and rules, Medicaid is entitled to be reimbursed for its expenditures. This reimbursement typically occurs after a person dies if there are assets in his estate. It may be that the decedent passed away owning a home or other assets but had been receiving Medicaid coverage during his life.

It is the fiduciary obligation of an Executor or Administrator to make sure that all of the decedent’s debts and the claims against the estate are satisfied. Thus, the estate fiduciary is required to satisfy a claim for reimbursement that is asserted by the local Medicaid authority. Also, in the event the estate Executor or Administrator is aware that the decedent may have been receiving medicaid benefits, it is important to obtain information regarding this claim before distributing estate assets. Once the assets are distributed to beneficiaries, the Medicaid authority may attempt to obtain payment of the claim against the fiduciary personally and assert that the fiduciary should have known about the claim before he paid the beneficiaries. Estate settlement can be a very complicated process and the collection of assets and payment of a decedent’s debts often require the guidance of an experienced estate attorney. Continue reading

New York Estate Planning can involve many different aspects. In most instances, individuals assume that the need to consult an estate planning attorney only arises when a person has significant assets that may result in the imposition of Federal estate taxes or state estate taxes. In fact, even when there is no potential for taxes being imposed at death, the preparation of a Last Will is really a form of estate planning by avoiding the uncertainty of intestate administration.

When tax planning is or may be important, one of the more common planning methods is to use life insurance as a planning device. Life insurance can provide a means by which an estate can increase liquidity and provide funds to pay estate taxes and monetary bequests. A common use of insurance is to create an insurance trust that will own the insurance policy.  The trust will be separate from the decedent’s taxable estate and, therefore, not increase the taxes payable. Continue reading