United States: Wills/ Intestacy/ Estate Planning

When a family member loses the ability to make important decisions, informal assistance may not provide the legal authority needed to act on their behalf. New Jersey guardianship proceedings offer a court-supervised process for appointing someone to manage personal care or financial affairs for incapacitated adults, including elderly individuals with dementia and young adults with developmental disabilities who have reached age 18.

California's proposed Billionaire Tax Act would impose a onetime 5% excise tax on individuals and trusts with assets exceeding $1 billion, creating unprecedented challenges for estate planners. The retroactive application and anti-abuse provisions raise critical questions about the treatment of grantor trusts, non-grantor trusts, and beneficiary interests that deviate significantly from established federal wealth transfer tax principles.

One way to prepare for those circumstances is to hold real estate in a personal trust. For homeowners who already have a trust or are considering one, how the property is titled can have a significant impact on who has the authority to deal with it later.

Estate planning requires choosing between two fundamental approaches: the traditional will and the revocable trust. While both direct asset distribution after death, they differ significantly in cost, privacy, probate requirements, and incapacity protection—differences that can profoundly impact your family's experience during an already difficult time.

Milbank LLP attorneys examine the implications of New York's pied-à-terre tax for common estate planning structures and situations, analyzing the basic mechanics of the surcharge and discussing key ambiguities in the statute. The article explores potential pitfalls that practitioners should consider when advising clients on property ownership and estate planning in New York.

When a child turns 18, parents lose automatic legal authority to make medical and financial decisions on their behalf, creating an unexpected gap in estate planning. Three essential documents—a durable power of attorney, health care proxy, and HIPAA authorization—can bridge this gap and ensure parents can assist their adult children when needed.

Something labeled “defective” usually does not work properly. The intentionally “defective” grantor trust, or “IDGT,” however, is a proven workhorse for tax-efficient business succession planning. A carefully planned and executed IDGT transaction enables business owners to transfer significant value in trust for the benefit of younger generations, with remarkable tax efficiency, while retaining control over the business. Two seemingly contradictory tax attributes of the IDGT underlie its tax efficiency.

Money secrets can destroy relationships just as thoroughly as romantic betrayal. Drawing on a recent Bankrate survey revealing that 43% of U.S. adults view financial secrets as seriously as physical infidelity, this conversation explores the warning signs of financial deception and the legal protections available when trust is shattered.

New York courts issued significant estate litigation rulings this spring, addressing undue influence claims, attorney-client privilege protections, and the admission of lost wills. These decisions clarify important procedural and substantive standards for estate practitioners navigating complex probate disputes.