All Press Releases for April 16, 2013

Roe Taroff Taitz and Portman ID Eight Estate Planning Myths

Long Island Law Firm Warns about Common Misconceptions that can Cause Estate Errors



    BOHEMIA, NY, April 16, 2013 /24-7PressRelease/ -- For people who have not created a proper Will, it can be April Fool's Day every day, according to John Roe, an attorney and partner specializing in estate law at Roe Taroff Taitz and Portman, LLP, a Long Island Law Firm. "Unfortunately, many people have accepted popular myths regarding their estates," says Roe. "The truth is that a little planning with your attorney to craft a strong and defensible Will is a great investment that can avoid family and legal squabbles after you have passed." There are many myths that have been accepted as truths, but Roe has identified some of the most common to rethink.

What is a will?
A will is a legal document that specifies the method to be applied in the management and distribution of someone's property - the testator's estate - after his or her death. Those who have not left a will, or who have left a will that is later declared invalid for some reason by a court, are said to die "intestate," resulting in his or her estate being divided and distributed according to the law, rather than the specifics of a will.

Eight Estate Planning Myths
Roe has seen many surprised faces when he describes these commonly accepted estate planning falsehoods to clients.

1. You don't need a Will. FALSE! Executing a Will keeps you in control of your assets. Without a Will, the State dictates who gets your property. A Will allows you to appoint an executor.

2. You won't have any estate taxes to pay because the individual Federal exemption is over $5 million. FALSE! New York State imposes an estate tax for estates valued over $1 million. If one spouse leaves all his or her assets to the other spouse, without taking into consideration New York State estate taxes, there may be an estate tax at the death of the second spouse if the assets at that time exceed $1 million.

3. If your will is only five years old, you don't need to change it. FALSE! Everyone has changes in their lives: marriages, divorces, births or adoption of children, children who turn 18, persons named in Wills who die, and assets that increase or decrease in value. All of these factors can change within a short period of time. Life changes require a review of your planning documents.

4. When you die, someone will look after the money you leave behind to minor children. FALSE! One of the key things in a Will is the appointment of a guardian for minor children. This prevents fights among relatives to see who looks after the "person" of your children and to see who looks after the "property" of your children.

5. If you become sick, the law will appoint the person you want to make health care decisions for you. FALSE! The best thing is to create a Living Will and Healthcare Proxy. This document allows you to choose the persons in whom you have confidence to make decisions about your health care if you are unable to do so.

6. Your family knows what you own, so you don't need to be worried. FALSE! Everyone has bank accounts, credit cards, investments, and retirement assets. And much of this information is stored on our smart phones, tablets, notebooks and desktop computers. What we forget is to keep - and share - a list of the passwords that give us access to these various accounts.

* * * Roe Taroff Taitz and Portman have developed a complimentary Important Business and Home Records List available for immediate download from the Roe Taroff Taitz and Portman website at http://bit.ly/rttplaw

7. Life insurance is not subject to estate tax. FALSE! Receipt of the proceeds of a life insurance policy is not an income taxable event. However, if the decedent owns the life insurance policy, then the life insurance proceeds are subject to estate tax. One solution is to transfer ownership of a life insurance policy to the beneficiary or to a separate trust. Doing so will permit the life insurance proceeds to escape estate tax.

8. If you put a tag with the name of one of your children on the back of the Grandfather Clock, only that child can inherit the clock when you die. FALSE! Unless a direct bequest of the Grandfather Clock is included in your Will, the clock is "up for grabs" among your children and other beneficiaries of your estate. The best solution is to include a paragraph in your Will that sets forth how you want to give certain individual pieces of personal property to each of your named beneficiaries.

"In every case, the best plan is to consult a skilled estates and trusts attorney who can guide you through the process of creating a Will that can be properly executed when you die," says Roe. "The death of a family member or friend is stressful enough. There should be no exercise of undue influence by family members regarding your estate. You must create or update your Will, Living Will and a Durable Power of Attorney so that your business affairs can be taken care of should you be unable to execute them. Making your own choice rather than having the choice made for you by existing laws seems to be the better method."

John "Pete" J. Roe III
Mr. Roe is a partner with Roe Taroff Taitz & Portman where he assists the firm's clients in estate planning, business and real estate matters. He recently served a two year term as Chairman of the Surrogate's Court Committee of the Suffolk County Bar Association. Mr. Roe holds a bachelors degree from Brown University and received his J.D. from the University of Virginia. Contact Pete at [email protected] if you have any questions.

About Roe Taroff Taitz & Portman
Roe Taroff Taitz & Portman, LLP provides a wide variety of legal services to Long Island. Our attorneys have served the residents of Suffolk County for more than two decades. Comprised of attorneys, legal assistants and administrative staff, the firm provides support at various levels of legal expertise. Our resources are available to both businesses and individuals looking for experienced legal representation. The firm's primary areas of concentration include civil litigation, creditor's rights law, trust and estates issues, estate planning, admiralty claims, business counseling and real estate matters. For more information, please call 631-475-4400 or visit http://www.RTTPLaw.com

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