Announcement: Proud Member of PurseStrings!
We are pleased to share that Jennifer V. Abelaj has been admitted to the membership of Purse Strings.
With the motto “Be Financially Fearless,” Purse Strings focuses on giving women access to easy-to-use resources and qualified financial professionals who focus on serving women. The Founders have deep expertise in financial strategy and are passionate in empowering and encouraging women to finally take charge of their financial future by surrounding themselves with a team.
Purse Strings vets every single professional on its platform. Each advisor has years of deep experience in their profession and the commitment to elevating women’s wealth
As a woman-owned business who has advised many women with their estate planning and philanthropy goals, we are grateful to be a part of this community and look forward to serving women to help their wealth grow beyond their imagination.
By partnering with their financial advisors and accountants, our Firm provides holistic, practical and impactful solutions to minimize estate taxes and make their ideas happen!
Learn more about Purse Strings About Us | Financially Empowering Women | Purse Strings and check out our page (Jennifer V. Abelaj, Esq., CPA | Attorney | Purse Strings) (still in progress!).
Federal and New York State Corporate Transparency Act; Act Now!
The Corporate Transparency Act (“CTA”) is effective January 1, 2024. FinCEN now requires that all LLCs, corporations, limited partnerships, or other similar businesses file information about the company’s beneficial owners. Unless an exception applies (such as for non-profits or large organizations as defined in the Act), existing companies must file no later than December 31, 2024.
In addition, New York State has also passed a similar corporate transparency act, which takes effect on December 21, 2024.
Registration
The portal to register your company’s beneficial ownership information is currently live and may be accessed using this link ➡️ https://boiefiling.fincen.gov/
At this time, we are directly reaching out to companies whom we have personally represented at initial creation.
If you require assistance with filing your FinCEN report, please contact us by February 15, 2024. If we do not hear from you by this date, we will assume that you do not require our assistance to comply with the requirements.
The penalties for failure to timely file a complete report are steep, starting at $500 per day that the filing is late, plus criminal penalties.
Learn More
If you would like to learn more about the CTA, please refer to our prior newsletters below:
Updated Estate and Gift Tax Values for 2024
Effective January 1, 2024, the applicable values for estate and gift tax purposes increased in accordance with inflation.
Federal Lifetime Estate and Gift Tax Exemption
The federal lifetime estate and gift tax exemption is now $13.61 million. Married couples may combine this amount for a total of $27.22 million. For estates where the values owned separately by each spouse are unbalanced, or skewed more heavily toward one spouse, it is recommended that married couples intentionally prepare their estate plans with appropriate tax opportunities.
New York State Estate Tax Exemption
The New York State exemption has increased to $6.94 million. Unlike the Federal estate tax laws, New York State does not allow spouses to combine their exemptions. In addition, New York State has a three-year lookback for gifts made by a decedent. This will result in any gifts being added to a decedent’s taxable estate if he or she dies less than three years after making the gift.
Federal Annual Gift Tax Exclusion
The Federal annual gift tax exclusion has increased to $18,000 per donee, for a total of $36,000. As was allowed in the past, spouses who decide to split gifts may double the annual gift to a donee. Any excess gift will reduce the donor’s lifetime exemption.
Changes on the Horizon in 2026 to Rollback Federal Exemption
These rates are at historic highs. However, the Federal exemption will sunset on December 31, 2025, to a level of $5 million, indexed for inflation, which is expected to be approximately $7 million.
Contact Us for Assistance
If your estate is nearing any of these values within the next two years and would like help with estate tax planning, we encourage you to contact our office please contact our office at 212-328-9568 or via email at assistant@abelajlaw.com.
When You Should Consider Modifying Your Estate Plan
Estate plans can help individuals determine how their assets and property are divided after death. Many people believe planning for their estate is a one-time task, but that is not always the case. Life changes and other events may require modifying your estate plan. Find out when you may need to update these legal documents. If you have questions about estate planning in New York, please consider scheduling a consultation with the experienced New York estate planning attorneys at the Jennifer V. Abelaj Law Firm by calling 212-328-9568.
Why It Is Important to Update an Estate Plan
The American Bar Association states that estate planning is the process of determining how a person’s assets and liabilities will be transferred after death. Individuals may want to regularly review and update their estate plan to ensure that their assets and wishes are appropriately reflected in the documents. Failing to modify an estate plan could mean that assets are distributed to unintended beneficiaries. An estate plan holder should make any changes as soon as they arise or when they have a change of plans. With that, it may prevent any confusion or discrepancies in the distribution of their assets.
Updating an Estate Plan
When reviewing an estate plan, the individual will want to ensure that:
- Their intentions are still the same regarding assets and property.
- The plans include the proper beneficiaries.
- The document reflects significant life changes.
In some instances, there may be a need to update an estate plan. A few common reasons include the following:
Marriage, Divorce, and Partnerships
Family dynamics are constantly evolving. For that reason, many individuals want to ensure that their estate plan is up-to-date and reflects specific life changes. Anyone who has entered a new marriage will want to include the new spouse in the estate plan. Sometimes, that may include updating bank accounts, retirement accounts, and insurance policies to add the spouse as a beneficiary. On the other hand, if the estate plan includes a divorced beneficiary, it may be time to remove the ex-spouse from any estate plans and legal documents. Along with dividing up assets, estate plans also outline the power of attorney. If a person has named the ex-spouse as this individual, it could be time to make changes to the plan.
Additionally, for anyone who is not legally married but has a partner, it may be the right time for modifying your estate plan to include them, especially if the individual is in a common-law marriage or domestic partnership. Sometimes, the partner may not be entitled to assets under state laws. For that reason, the person’s wishes should be evident in the estate plan to ensure the partner is a beneficiary after death.
Children
Another reason for updating an estate plan includes listing children as beneficiaries. If the children are young, many estate plans will designate someone to be a guardian until they reach adulthood. For those individuals who have remarried a spouse with a child from a previous relationship, it may be time also to add those children into the estate plans. In some cases, state laws will only recognize stepchildren as heirs if the estate plan specifically names them in the document.
People will want to update their estate plans with every life change. Unfortunately, some family members have disinherited their children and will want to make changes to the estate plan. As a result, the estate plan should be reviewed and updated to reflect those changes in the person’s wishes. Reach out to the Jennifer V. Abelaj Law Firm to learn more about planning for your estate.
New Home State and Tax Changes
Along with the above situations, those who have moved to another state will want to ensure their estate plans comply with state laws. Even for those who have not moved, tax laws are constantly changing, and estate plans should stay current with new rules. Often, the individuals may want to establish a trust or will to ensure beneficiaries are not left with tax issues and can avoid probate. Otherwise, the Internal Revenue Service states that a gift tax is imposed when property is given to another person without receiving fair market value in return.
Beneficiary Changes
If a person wants to change or remove beneficiaries from the estate plan, that individual needs to make changes to all aspects of the plan, including updating assets, accounts, and powers of attorney. Failure to update all relevant documents can lead to confusion and discrepancies in the distribution of assets after the person’s passing. Additionally, if any named beneficiaries experience changes in their care needs, those plans will need to be revised, especially for those with special needs.
What Are Other Reasons to Modify an Estate Plan?
There may be unique reasons that may prompt an individual to update their estate plan. For example, if an individual has a trust and wishes to assign a new trustee, they will want to review and revise their revocable living trust to ensure that their trustee list is accurate and up to date.
Significant life changes are not the only reason to update an estate plan. Those with a living will may want to periodically review it to ensure everything is outlined and make any necessary updates. Also, if an individual owns a business or plans to open one, a business succession plan can determine who owns and runs the company after they are gone. Many individuals should consider reviewing their estate plan regularly, ideally every three to five years, to ensure that everything is updated.
Consult With a New York Estate Planning Attorney Today
Modifying your estate plan ensures that changes to your assets and wishes are properly reflected and that the plan complies with local laws. People may want to update their estate plans when there are changes in their personal life, beneficiaries, or tax laws. Regularly reviewing an estate plan with an attorney may also ensure the plan is up to date. If you want to learn more about estate planning in New York, please consider scheduling a consultation with the Jennifer V. Abelaj Law Firm by calling 212-328-9568.
4 Critical Estate Planning Tasks To Do Before Going On Vacation
Taking a break from life’s fast-paced and often stressful cadence to go on vacation can be a wonderful experience. Before packing your bags and boarding a plane, however, you may want to complete a few estate planning tasks to create a plan in the event that something were to happen on the trip. For help developing estate planning goals for your unique needs, consider contacting a New York estate planning lawyer at the Jennifer V. Abelaj Law Firm by calling (646) 885-1330 to schedule a consultation.
What Is an Estate Plan?
An estate plan is a set of instructions that are put in place to specify what will happen to a person’s assets upon his or her death. The estate includes everything that a person owns or owes (e.g., debts) at the time of his or her death. Typically, estate plans also include documents that indicate who has the authority to make healthcare or property decisions if the individual is incapacitated.
Additionally, as part of a complete estate plan, people can designate beneficiaries of assets they own. For example, they could name a daughter as the payable-on-death beneficiary of a checking account. Other assets, such as retirement and investment accounts, allow the owners to name beneficiaries so that some assets are automatically distributed when the account holder passes away.
4 Estate Planning Tasks To Do Before Going on Vacation
Going on a vacation can be an exciting (but sometimes stressful) endeavor with so much to take care of before leaving. While on vacation, people hope to only have fun and entertaining experiences, but the reality is that injury or illness can unexpectedly arise, even when someone is on a trip. Without proper estate planning, a person’s loved ones may be confused about what to do and may not be able to give the support needed.
Before people depart on vacation, therefore, taking care of a few estate planning tasks can be beneficial for themselves and their loved ones. Four important items to complete before leaving are:
- Updating (or writing) a will
- Signing or updating a power of attorney for property
- Signing or updating a power of attorney for healthcare
- Updating beneficiaries on important accounts or policies, such as checking and retirement accounts
Update (or Write) a Will
A Last Will and Testament (will) is a document that gives instructions about distributing certain assets when the testator, the person who writes the will, dies. In the will, the testator chooses an executor or administrator who oversees carrying out the document’s instructions. Additionally, the will names beneficiaries or heirs who will receive the testator’s property. In some cases, the will creates a trust called a testamentary trust that holds assets on behalf of named beneficiaries, generally the person’s children.
Before going on vacation, updating or writing a will may help to ensure that loved ones receive the inheritance you want them to have after you die. If someone does not have a will or if the will is inadequate, according to the New York State Senate, New York intestate laws regarding succession will determine who inherits the person’s property. Therefore, having a well-written will in place can prevent certain loved ones from being left out of the process. If you are ready to address estate planning goals, a seasoned estate planning attorney from the Jennifer V. Abelaj Law Firm may be able to help.
Sign (or Update) a Power of Attorney for Property
According to the state of New York, the law allows individuals to create a power of attorney for property so that the individual (the principal) can give someone else (the agent) authority to make decisions about the principal’s property under certain circumstances. The principal chooses when a power of attorney for property becomes effective, either on a specific date or when something specific happens, such as the principal’s incapacitation. A power of attorney for property may be essential when a person goes on vacation because it ensures that someone can take care of the principal’s finances if he or she were to suffer a debilitating injury on the trip.
In the power of attorney form, the principal can describe the scope of the agent’s authority regarding the principal’s assets. For example, the principal might limit the types of transactions the agent can make (e.g., paying expenses or making transfers) and for what purpose. Having a power of attorney named before going on vacation can also be helpful by designating someone who can take care of certain financial matters for the principal while he or she is gone, not just in case of incapacitation.
Sign (or Update) a Power of Attorney for Healthcare
Like a power of attorney for property, a durable power of attorney for healthcare allows a principal to name an agent to make medical decisions on his or her behalf under certain circumstances. In a healthcare power of attorney, the principal defines the scope of decisions the agent can make. Additionally, the principal indicates any desired lifesaving measures, such as life support, to take if he or she becomes incapacitated.
Thinking about the potential scenarios may be uncomfortable, but putting a plan in place can help a person’s loved ones if the unexpected does happen. In the absence of proper instructions, the default New York laws dictate who can make a decision and when, and this person may not be the person the principal would have chosen.
Update Beneficiaries on Important Accounts or Policies
The last estate planning task to take care of before going on vacation is updating the beneficiaries on essential policies and accounts, such as payable-on-death instruments. Payable-on-death instruments that may need updating include:
- Checking and savings accounts
- Investment accounts
- Retirement accounts
- Certificates of deposit
Other accounts may also allow the holder to name a beneficiary to take possession of the asset upon the his or her death. Payable-on-death instruments are beneficial because they allow the owner to transfer these assets to a loved one outside the probate process. In times of stress and uncertainty, such as when a loved one dies, having a streamlined process in place can make a big difference.
Contact an Experienced Estate Planning Attorney for Help Today
A vacation is a time to create new memories and unburden yourself of the stressors of daily life. By taking care of estate planning matters before departing, individuals can provide clarity and continuity for their loved ones should something happen to them while they are gone. For help with your estate planning goals, consider calling (646) 885-1330 to schedule a consultation with an experienced estate planning attorney at the Jennifer V. Abelaj Law Firm
When You Should Consider Modifying Your Estate Plan
Estate plans can help individuals determine how their assets and property are divided after death. Many people believe planning for their estate is a one-time task, but that is not always the case. Life changes and other events may require modifying your estate plan. Find out when you may need to update these legal documents. If you have questions about estate planning in New York, please consider scheduling a consultation with the experienced New York estate planning attorneys at the Jennifer V. Abelaj Law Firm by calling 212-328-9568.
Why It Is Important to Update an Estate Plan
The American Bar Association states that estate planning is the process of determining how a person’s assets and liabilities will be transferred after death. Individuals may want to regularly review and update their estate plan to ensure that their assets and wishes are appropriately reflected in the documents. Failing to modify an estate plan could mean that assets are distributed to unintended beneficiaries. An estate plan holder should make any changes as soon as they arise or when they have a change of plans. With that, it may prevent any confusion or discrepancies in the distribution of their assets.
Updating an Estate Plan
When reviewing an estate plan, the individual will want to ensure that:
- Their intentions are still the same regarding assets and property.
- The plans include the proper beneficiaries.
- The document reflects significant life changes.
In some instances, there may be a need to update an estate plan. A few common reasons include the following:
Marriage, Divorce, and Partnerships
Family dynamics are constantly evolving. For that reason, many individuals want to ensure that their estate plan is up-to-date and reflects specific life changes. Anyone who has entered a new marriage will want to include the new spouse in the estate plan. Sometimes, that may include updating bank accounts, retirement accounts, and insurance policies to add the spouse as a beneficiary. On the other hand, if the estate plan includes a divorced beneficiary, it may be time to remove the ex-spouse from any estate plans and legal documents. Along with dividing up assets, estate plans also outline the power of attorney. If a person has named the ex-spouse as this individual, it could be time to make changes to the plan.
Additionally, for anyone who is not legally married but has a partner, it may be the right time for modifying your estate plan to include them, especially if the individual is in a common-law marriage or domestic partnership. Sometimes, the partner may not be entitled to assets under state laws. For that reason, the person’s wishes should be evident in the estate plan to ensure the partner is a beneficiary after death.
Children
Another reason for updating an estate plan includes listing children as beneficiaries. If the children are young, many estate plans will designate someone to be a guardian until they reach adulthood. For those individuals who have remarried a spouse with a child from a previous relationship, it may be time also to add those children into the estate plans. In some cases, state laws will only recognize stepchildren as heirs if the estate plan specifically names them in the document.
People will want to update their estate plans with every life change. Unfortunately, some family members have disinherited their children and will want to make changes to the estate plan. As a result, the estate plan should be reviewed and updated to reflect those changes in the person’s wishes. Reach out to the Jennifer V. Abelaj Law Firm to learn more about planning for your estate.
New Home State and Tax Changes
Along with the above situations, those who have moved to another state will want to ensure their estate plans comply with state laws. Even for those who have not moved, tax laws are constantly changing, and estate plans should stay current with new rules. Often, the individuals may want to establish a trust or will to ensure beneficiaries are not left with tax issues and can avoid probate. Otherwise, the Internal Revenue Service states that a gift tax is imposed when property is given to another person without receiving fair market value in return.
Beneficiary Changes
If a person wants to change or remove beneficiaries from the estate plan, that individual needs to make changes to all aspects of the plan, including updating assets, accounts, and powers of attorney. Failure to update all relevant documents can lead to confusion and discrepancies in the distribution of assets after the person’s passing. Additionally, if any named beneficiaries experience changes in their care needs, those plans will need to be revised, especially for those with special needs.
What Are Other Reasons to Modify an Estate Plan?
There may be unique reasons that may prompt an individual to update their estate plan. For example, if an individual has a trust and wishes to assign a new trustee, they will want to review and revise their revocable living trust to ensure that their trustee list is accurate and up to date.
Significant life changes are not the only reason to update an estate plan. Those with a living will may want to periodically review it to ensure everything is outlined and make any necessary updates. Also, if an individual owns a business or plans to open one, a business succession plan can determine who owns and runs the company after they are gone. Many individuals should consider reviewing their estate plan regularly, ideally every three to five years, to ensure that everything is updated.
Consult With a New York Estate Planning Attorney Today
Modifying your estate plan ensures that changes to your assets and wishes are properly reflected and that the plan complies with local laws. People may want to update their estate plans when there are changes in their personal life, beneficiaries, or tax laws. Regularly reviewing an estate plan with an attorney may also ensure the plan is up to date. If you want to learn more about estate planning in New York, please consider scheduling a consultation with the Jennifer V. Abelaj Law Firm by calling 212-328-9568.
Millennials and Estate Planning
Millennials and estate planning might not sound like two terms that can go together. However, many members of this generation understand the importance of planning for the future. In the past, younger individuals did not put much thought into their wills and estate plans. Today, millennials are creating a plan to protect their loved ones and assets. If you are a millennial and want to learn more about an estate plan, schedule a consultation with Jennifer V. Abelaj Law Firm by calling 212-328-9568.
What Is Estate Planning?
According to the American Bar Association, estate planning covers the legal and financial matters that relate to the handling of assets and care in the event of a disability or death. Over the past years, millennials and estate planning has become a hot topic. While some individuals in this generation have taken their estate plans seriously, many still do not have a plan in place. An estate plan is much more than a Last Will and Testament (Will). Estate planning does not require having great wealth or a large estate. Anyone with any type of assets, even a small bank account, should consider creating an estate plan. An estate plan ensures that all your wishes are met in the event of your death or incapacity. When it comes time to create an estate plan for you, schedule a consultation with the experienced estate planning attorneys at Jennifer V. Abelaj Law Firm.
Millennials Need an Estate Plan
According to the United States Government Accountability Office, millennials have less assets than previous generations, however, they still need to think about estate planning. Here are a few points to take into consideration.
Designates Beneficiaries
While many younger millennials might not have a lot of money, most have a bank account. Those who have been in the workforce for a few years could have a 401k retirement plan and/or a life insurance policy. When that person passes away, who will inherit all those assets? With an estate plan, the beneficiaries are clearly designated. Unfortunately, some people die without a will, trust, or an estate plan. In that case, the assets may have to be divided between the living relatives, leading to lengthy court proceedings. Having relatives fight for assets is the last thing anyone wants to happen after they die.
Medical Power of Attorney
What happens if you become incapacitated or seriously ill? With a medical power of attorney, a designated party can make medical decisions according to your wishes in the estate plan. If a person cannot communicate or make decisions, a power of attorney gives the designated person the right to make any health decisions, including withdrawing life-sustaining medical care. Along with a power of attorney, an estate plan will often include all the burial arrangements and specifies whether the individual wants to donate their organs. Many millennials do not realize that these documents are very important, especially if someone wants to have unique end-of-life wishes. This part of the estate plan allows an individual to appoint someone to act on their behalf regarding any financial or medical decisions.
Durable Power of Attorney
Power of attorney is centered around more than just medical decisions. If a person becomes incapacitated or seriously ill, then that same person can also make decisions about other affairs in the person’s life, such as paying bills or caring for pets. With a durable power of attorney document, an individual can choose someone to handle depositing checks, dealing with health insurance, or paying rent. The durable power of attorney will remain in effect until the individual withdraws it. Without a durable power of attorney document, then the issue is handled by the probate court. In those cases, a judge will appoint someone to take care of those duties. Creating a comprehensive estate plan provides peace of mind and ensures that all major decisions will be handled by a person you trust.
Guardianship for Children and Pets
Unfortunately, parents can pass away, leaving custody issues in doubt. The other parent will often raise the children, but there are times when that person is not capable or unwilling to take on the responsibilities. In that case, millennials will want to specify someone to be a guardian to the children. These issues are crucial because if no guardians are appointed, the courts designate someone to care for the children. Choosing a person to provide for your children should not be taken lightly. This individual should have a bond with the kids and be willing to take on this difficult task. Also, only name someone as a guardian after discussing it with them first. Sometimes, people may not want to take on the responsibility of being a “parent” for someone else’s children.
Many millennials also have pets. Usually, when a person passes away, a friend or relative will take the pets. There have been horror stories about beloved pets being left at shelters with no place to live. For anyone who loves their pets, outlining end-of-life arrangements for them is essential. Like child custody, these arrangements will allow you to choose someone who will uphold your wishes and give your pet a great home in the event of your death.
Let a New York Estate Planning Attorney Help with Your Estate Plan
Millennials and estate planning might not seem like an expected combination, but most members of this generation realize the importance of these documents. Millennials need to think about what could help in the future with their assets, children, and pets. An estate planning attorney can help ensure the proper distribution of assets while protecting your wishes if you become ill or pass away. If you want to set up a trust, will, or need other estate planning assistance, contact the Jennifer V. Abelaj Law Firm at 212-328-9568.
HIPAA Waivers and Estate Plans
Estate planning is an important part of life, and one key element of a successful estate plan is incorporating a HIPAA waiver. HIPAA, or the Health Insurance Portability and Accountability Act, is a federal law that protects the privacy of health care information. A HIPAA waiver allows for the release of health information so that an individual’s health care wishes can be honored by their family and/or health care providers. Incorporating a HIPAA waiver into your estate plan can help ensure that your wishes are followed, and your health care decisions are respected. HIPAA waivers are an important piece of an overall estate plan. If you are ready to update your estate plan with a HIPAA waiver, contact the Jennifer V. Abelaj Law Firm at 212-328-9568 to go over your options and make sure your estate plan is in order.
What Is HIPAA?
HIPAA is the Health Insurance Portability and Accountability Act of 1996. It is a federal law requiring medical providers and other professionals with access to private health information to have safeguards and policies to protect that information. HIPAA also created rules about when those healthcare providers and other professionals can share that protected health information with others, such as the patient’s spouse, children, other healthcare providers, or insurance companies.
A central part of HIPAA is that entities that are subject to it, such as healthcare providers, must only share health-related data in particular situations. Additionally, they are only allowed to disclose the minimal amount of information necessary. Generally, they can share the details in these conditions:
- Where the patient has given consent (the patient is present or has provided written permission)
- If it is required to ensure the patient receives the right care
- When it is needed to obtain payment for the services provided
What Is a HIPAA Waiver?
A HIPAA waiver, also known as a HIPAA authorization or release, gives the healthcare provider the patient’s permission to release personal health information to someone other than the patient. Many people have completed a version of a HIPAA waiver when completing paperwork at a new healthcare provider’s office.
A HIPAA waiver must be written in plain language. It also needs to contain the following:
- The healthcare provider’s name
- The person’s name to whom the information is being disclosed
- A description of the information being disclosed
- The purpose of the disclosure
- A specific time frame the waiver is valid and expiration date for the waiver
- The name, signature, and date of the individual giving permission
Is a Medical Power of Attorney the Same Thing as HIPAA Waiver?
A medical power of attorney is often one of the first things people think of when they are trying to make sure their wishes are carried out if they cannot make their own decisions. Medical power of attorneys are an important part of an estate plan, as they ensure that someone is aware of what the individual wants and can ensure those decisions are made. However, a power of attorney is not the same thing as a HIPAA waiver. A medical power of attorney does not grant the same permissions and may not be enforceable if it is not written correctly.
For example, if an individual does not include a durability clause, the medical power of attorney will not be valid when they become incapacitated. A durability clause indicates that whatever powers were granted in the power of attorney will remain in full force and effect even when the grantor is incapacitated.
Why Do You Need a HIPAA Waiver?
Many people fill out a medical power of attorney as part of their estate plan. This gives authority to a trusted loved one to make medical decisions in the event the individual is unable to make their own decisions. Unfortunately, some healthcare providers may be unwilling to provide information about the individual’s health due to HIPAA, even with a medical power of attorney. While a medical power of attorney is still necessary to ensure that the individual’s wishes and desires are not ignored, the HIPAA waiver is required to ensure that providers will give the family member or personal representative the health information needed to ensure those wishes and desires are carried out.
Another instance where HIPAA waivers and estate plans are legally connected is trusts. Individuals may also need a HIPAA waiver if there is a trust agreement that provides for the appointment of a successor trustee if the original trustee becomes incapacitated. In this case, the HIPAA waiver would allow the successor trustee to verify the health information of the trustee and assume the duties of trustee if needed. The Jennifer V. Abelaj Law Firm may be able to assist in setting up both the trust agreement and necessary HIPAA waiver to ensure smooth transitions.
When Should You Sign and Update HIPAA waivers?
Having a current HIPAA waiver is a crucial piece of an estate plan. If an individual is creating their estate plan for the first time, this is an excellent time to sign and include a HIPAA waiver. If there is an existing estate plan, adding a HIPAA waiver as soon as possible offers the assurance that their wishes will be carried out in the event they become incapacitated.
Just as individuals should go over and update their estate plan frequently, they should review their HIPAA waiver and ensure it is still current. They may need to update the names of healthcare providers who are authorized to share information or the names of those with whom that information can be shared. Additionally, HIPAA waivers typically have a specific time frame during which they are effective and an expiration date after which they are no longer considered valid. Therefore, most individuals should update their HIPAA waiver at least as often as it expires.
Do You Need to Add a HIPAA Waiver to Your Estate Plan?
HIPAA waivers and estate plans are a strong combination for ensuring that your wishes are carried out in the even that you are medically incapacitated and unable to speak for yourself. If your estate plan does not have a HIPAA waiver yet, it is time to include one. Reach out the Jennifer V. Abelaj Law Firm at 212-328-9568 to discuss adding a HIPAA waiver and ensuring your estate plan is comprehensive and ensures your legal rights remain protected.
The Steps To Take For Effective Intergenerational Wealth
There is a lot more to effective intergenerational wealth planning than estate planning. However, estate planning is an essential component. Intergenerational wealth planning means taking the critical steps to plan for preserving, using, and transferring your wealth to future generations. Estate planning involves a sound and up-to-date will and often requires working with an attorney and financial advisor. Both include preparing and planning to ensure you remain financially independent while distributing your assets according to your preferred time frame and structure. Family and legacy are innate portions of effective intergenerational wealth and estate planning, and there are critical steps to take to preserve your family’s foundation and wealth throughout generations. If you would like to learn more about intergenerational wealth with estate planning, call the Jennifer V. Abelaj Law Firm at 212-328-9568. An experienced estate planning attorney could help protect your legacy and future generations.
Effective Intergenerational Wealth Planning
Effective intergenerational wealth planning requires getting together with the family and agreeing to discuss the future of the family’s assets, including real estate, tangible and intangible assets, and businesses. A successful and smooth transition requires open conversation and careful planning and preparation. The planning means minimizing the impact of inheritance tax when it passes to heirs and keeping them from dealing with stress from years of costly probate. Intergenerational wealth planning and management allow the estate owners to control where the money goes after they are gone. It is satisfying for many to get a clear picture of how their wealth will positively impact future generations to come. Passing on wealth to heirs also means handling the process as tax-efficiently as possible.
The Benefits of Estate Planning
Estate planning involves carefully structuring an estate to save family members from the unnecessary financial and emotional strain of probate in the future. People often mistakenly believe that estate planning is something that wealthy families do and not something they should waste their time and worry considering. However, there are many things that everyone can benefit from, and every legal adult should begin to prepare and plan. An estate plan ensures a strategic plan for the estate holder’s future healthcare, home, and finances. Individuals can provide for their families and future generations by organizing and estate planning, even when they are gone. Other benefits of estate planning include:
- Estate planning allows the holder of the estate to distribute assets to family members according to their wishes and the time frame they desire
- Allows the individual to talk to their family members about opportunities and various options involving finances and assets
- Estate planning means discussing the advantages and disadvantages of lifetime gifting or leaving family members an inheritance
- They can evaluate whether they would like to set up trusts for heirs
- Planning means determining how the heritage priorities will impact their family’s future generations
- Organizing and estate planning reduces estate taxes
Effective generational wealth with estate planning is all the valuable assets a person passes down to their heirs. Arranging the smooth and seamless transfer of wealth is critical in preserving the family’s legacy, ensuring heirs inherit the assets to intend to receive, and minimizing taxes.
The Steps to Take for Effective Intergenerational Wealth and Estate Planning
It is not uncommon for families to plan to transfer wealth without considering how vital passing on the family legacy is to them. That is especially true concerning details about passing on their philanthropic, social, and economic values. Building a fierce legacy is admirable, making it essential to pass on to future generations. Careful planning and preparation will play a pivotal role in effectively facilitating these considerations in transferring family wealth and estate planning. The first and most vital step for estate planning is determining net worth. They can do this by adding all tangible and intangible assets and then subtracting all liabilities and debt.
The Tangible Assets
- Home, real estate, and property
- Vehicles
- Collectables
The Intangible Assets
Intangible assets are not physical and include:
- Checking and savings accounts
- Life insurance policies
- Stocks and bonds
- Retirement accounts, including 401k
You have the knowledge and experience to build wealth successfully, and you can pass that knowledge down to your heirs and future generations. It is vital to plan effectively, create a solid estate plan, and review it regularly to make updates. After taking stock of all assets and subtracting liabilities, meet with the family to discuss their desires and needs. Finally, establish the beneficiaries and directives. A seasoned attorney at Jennifer V. Abelaj Law Firm can go over the steps and benefits of addressing intergenerational wealth with estate planning.
The Common Concerns of Estate Planning
While there are numerous benefits to intergenerational wealth and estate planning, there are also common concerns to keep in mind.
Avoiding Probate
Probate is stressful and costly for family members after losing a loved one. There are executor fees, attorney expenses, administrative fees, and more. The costs can accumulate quickly. Making matters worse, going through probate is almost always an extensive and lengthy process.
Family Disputes
It is not uncommon for estate planning individuals to believe that family members and heirs can work out disputes and peacefully split assets. Carefully organizing a solid plan can provide unity among the family for years to come. Trusting heirs to divide an inheritance amongst themselves can leave a family in disarray.
Call an Experienced Estate Lawyer Today to Start Planning
Effective planning is about taking control of your life and health and planning the passing of your wealth to future generations to ensure intergenerational wealth. The planning will allow you to make essential proactive decisions so your loved ones will not have to make them for you if that time comes. If you are ready to begin your intergenerational wealth with estate planning, call Jennifer V. Abelaj Law Firm at 212-328-9568. You can trust an experienced estate lawyer to help protect your legacy for future generations.
Should I Start A Nonprofit?
Starting a nonprofit can be an excellent opportunity for entrepreneurs looking to open a new business while helping people and making positive changes in the world around them. Strategizing and building a successful nonprofit requires a particular set of skills. Yet, from a company owner’s perspective, the experience is not significantly different from owning any other small business. Exploring the potential benefits and risks of starting a nonprofit organization can help you decide whether it is the right choice or if starting a traditional business would be the best option. When gathering information and determining if a nonprofit organization is the right path, you must consider various aspects. The essential factors include how you plan to fundraise and fund the business, your mission, and your proposed budget. When prospective business owners are thinking about a new business venture, they commonly wonder, should I start a nonprofit? For more information, call the Jennifer V. Abelaj Law Firm at 212-328-9568 to discuss your options.
The Benefits of Starting a Nonprofit Organization
The mission of nonprofit organizations is to work towards bettering the community and citizens who live there. Opening one is excellent for credibility because it demonstrates philanthropy, trustworthiness, and a desire to do good. Opening a nonprofit can mean helping others while also accommodating a comfortable life for the organization’s leaders and their families. There are many other benefits of starting a nonprofit organization, including:
Running a Nonprofit is a Rewarding Experience
Starting a nonprofit organization allows business owners to see first-hand how the company positively affects the community. For example, opening the doors of an education nonprofit enables business owners to share knowledge, educate others, and bring positive change.
Nonprofits are Eligible for Separate Entity Status
Nonprofit organizations are increasingly intersecting with LLCs and forming hybrid organizations. Traditional fundraising methods are the cornerstone of nonprofits. Yet, many struggle to raise sufficient funding they need to help their cause. Therefore, organizations are strategically restructuring to include for-profit ventures to raise additional financing without losing their nonprofit status and tax exemptions. When businesses structure correctly, the Internal Revenue Service allows them to operate under both statutes. A knowledgeable attorney at the Jennifer V. Abelaj Law Firm is available to answer questions and help you answer the question: Should I start a nonprofit?
Nonprofits have Limited Liability Protection (LLC)
Nonprofits have the same liability protections as other LLCs and corporations. The protection means that tax laws cannot hold organization leaders or team members personally liable for the nonprofit’s debt.
There are Many Tax-Exemptions and Deductions
The nonprofit association could qualify for tax-exempt status if the business meets specific requirements. Further, there are various other tax exemptions the federal government offers. Under the Internal Revenue Code Section 501(c)(3), the nonprofit is exempt from paying federal income taxes, and donations are tax-deductible for the donors. The requirements for this exemption include being an organization that benefits a charitable, religious, scientific, literary, or educational cause.
Nonprofit Organizations are Eligible for Public and Private Grants
Public and private grantmakers typically fund nonprofit organizations that qualify for public charity status with the internal revenue service. Nonprofit organizations are eligible for many grants when many other businesses are not eligible to apply. Even for the grants open to for-profit and nonprofit organizations, the latter will take preference in most cases.
Incorporated Nonprofits can Offer Benefits to Employees
When nonprofit organizations choose to incorporate, they can offer benefits to employees, including health insurance, retirement, and pensions. Nonprofit organization team members typically love their work and dedicate themselves to the cause. They realize the work will not make them wealthy but appreciate helping others and the community. Offering them the benefits means showing them gratitude and appreciation.
A Successful Nonprofit Could Mean Leaving Behind a Lasting Legacy
Opening a successful nonprofit business can mean that you are a successful business owner and an important person in history. A nonprofit organization can have a meaningful and lasting impact on people’s lives that they remember for years to come.
The Disadvantages of Opening a Nonprofit
People commonly see a community’s needs and decide they would like to start a nonprofit organization. Yet, it is essential to note that creating and successfully sustaining a nonprofit business are challenging tasks. It can take years of determination to get the organization running effectively. According to the nonprofit and grant information knowledge base from Candid Learning, the cost of opening a nonprofit organization is often steep. Organizing the business takes plenty of time, money, and effort. Business owners will also need to pay fees to apply for the tax exemption and incorporation. Many also find that hiring an accountant, attorney, or other consultants is also necessary for ensuring they navigate the process correctly. Other disadvantages of starting a nonprofit include:
- Significant paperwork and detailed record-keeping, more so than with for-profit businesses
- Articles of incorporation and bylaws limit personal control of individual owners
- Nonprofit organizations always face public scrutiny
The most significant disadvantage is the funding limitations typical for nonprofit organizations. Fundraising problems can often be a nonprofit’s most considerable setback and challenge. It is not uncommon for them to find it necessary to discontinue services and support they provide to those in need when they cannot meet fundraising requirements to keep the business running successfully. Grant writer services are also expensive but crucial for obtaining the grants needed to keep the doors open.
Call an Experienced Nonprofit Lawyer Today
Tax-exempt status and legal liability elimination sound like the right way to go when starting a new organization. However, prospective business owners must consider many crucial elements of running a nonprofit, including raising funds and attracting the right talent with competitive wages and benefits. Running a successful nonprofit organization comes with many challenges. Yet, it can be the most rewarding business venture you can experience with the proper planning and preparation. For more information on, should I start a nonprofit? Call the Jennifer V. Abelaj Law Firm at 212-328-9568. A knowledgeable nonprofit lawyer can help go over the benefits and disadvantages to help you figure out the best option for your new business.