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Question: I have recently rolled over my employer sponsored 401(k) plan into an existing IRA. I am not sure if I need to update the beneficiary designation forms on file; can you give me some advice?

When a couple marries later in life, after they both had children of their own, their estate plans need to take their blended family into account. For example, there are estate planning techniques such as Qtip Trusts that allow income to the surviving spouse for life, with property passing to children upon the surviving spouse’s death.

Question: Several years ago, I went to a lawyer who convinced me to do a trust. Now, I am not so sure that it was the right thing for me. Am I able to revoke a trust? Should I revoke my trust?

Examples of Trusts Commissions

Elder Law attorneys hear this question constantly. Typically, once people reach a certain age there is pressure to transfer assets to their children for unspecified “asset protection” reasons.

Certain Biden-Harris proposals may, if enacted, have a significant effect on your estate plan. 2020 was a monumental year with many changes and 2021 may bring changes that affect your estate plan. There was a political shift in Washington, changes to the New York State Medicaid program, a world-wide pandemic, and amendments to state and local laws.

Medicaid Asset Protection Trusts, sometimes called Irrevocable “Income Only” Trusts or Medicaid Trusts, are used to protect assets and allow people to qualify for Medicaid long-term care. In order to protect the assets, the trust must be created 2.5 years before home care Medicaid is needed or 5 years before nursing home care is needed.

Question: I have 5 grandchildren and want to start gifting them money every year to help support their growing families. What are some gift tax consequences I need to consider? Do my grandchildren have to pay a tax on the gift? I have a relatively large estate, how will gifting affect this?

The 2017 Tax Cuts and Jobs Act (TCJA) doubled the estate tax exemption, which in 2021 is $11.7 million dollars. This exemption is set sunset in 2026, but due to the economy, it may substantially decrease as early as 2021 or 2022 to pre-2017 levels, adjusted for inflation.

We are finally are putting 2020 behind us and entering a new year with a clean slate! Given how tumultuous the year has been with the pandemic, as well as the change in administration, there are certain estate planning matters that should be a top priority.