Many people remember Anna Nicole Smith as a reality television show star who passed away in 2007. However, the event in her life that helped catapult her into the public consciousness was her court battle with the son of her late husband over his estate.

Smith was a former Playboy Playmate Of The Year who was working in a Houston area gentleman’s club back in 1991. She met a billionaire oil tycoon by the name of J.Howard Marshall who became enamored of Smith. A relationship of sorts ensued that culminated in the two getting married in 1994. At the time J.Howard Marshall was 89 years of age and Anna Nicole Smith was 26.

Marshall died a little over a year after the marriage. Smith claimed that Marshall wanted her to have half of his fortune, but his son E. Pierce Marshall disagreed. This led to a long and acrimonious legal battle that actually wound up continuing on after the deaths of both Smith and the younger Marshall.

The Supreme Court finally put the matter to rest last summer after some 15 years of legal wrangling when they found in favor of the estate of E. Pierce Marshall.

This situation underscores the reason why it is important to update your estate plan when you get married, making your wishes absolutely 100% clear.

If you are currently unprepared or if your existing estate plan could in any way be construed as ambiguous, protect yourself by taking action. Pick up the phone right now and make an appointment to sit down and record your wishes in a legally binding manner with the assistance of a licensed and experienced Long Island Estate Planning lawyer.

Mark S. Eghrari & Associates, PLLC is a member of the American Academy of Estate Planning Attorneys.

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The best way to be totally prepared for the future is to recognize that there are different phases that we all go through as we age. There are a number of things to take into account, and if you anticipate them in advance you can steer clear of some unpleasant surprises.

One thing leads to another and it is a good idea to think this way and plan comprehensively in a step-by-step manner. The first thing to take into consideration will be your active retirement years.

Far too many people find themselves unprepared when the typical retirement age starts to appear over the horizon. It can take time, focus, and a good deal of discipline to accumulate the necessary financial resources and it is never too soon to get started.

After this period of time you may enter what are called the twilight years which could include incapacity or the need for living assistance. There are certain steps that must be taken to prepare for these eventualities, such as the execution of durable powers of attorney and the implementation of a plan for handling long-term care expenses.

And of course the last stage will be passing along your legacy to your loved ones when that time arrives.

If the above makes sense to you, the intelligent first step would be to set up an appointment to speak with a good Long Island estate planning attorney who will assist you as you develop a long-term, holistic plan for the future.

Mark S. Eghrari & Associates, PLLC is a member of the American Academy of Estate Planning Attorneys.

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Check your local newspaper.  We guarantee one or two estate sales will be held this weekend.  Estate sales are often used by family members to dispose of personal property so the funds generated can be distributed in accordance to their loved one’s wishes.  In general, estate sales can be useful – but estate sales can also yield unfortunate consequences.  In some cases your estate sale could turn into a treasure hunt for someone other than your family, with the hunter benefitting.
Say you own something rare:  A vase, a painting, a collection, etc.  You know the value but your children do not.  If that item is sold during an estate sale it could go for pennies on the dollar.  Who benefits?  The buyer does, not your heirs.

There are two simple ways to avoid this situation:

1.    Specify who will receive any personal items of value that you own.  Don’t let them all into the “estate sale pile.”  (And make sure the recipient understands the value of that item.)
2.     If you don’t plan to leave the item to anyone in particular, make sure your estate planning documents include information about valuable items:  Worth, provenance, etc.  That way your agent can ensure the item is properly valued ahead of time and can be sold for close to its actual value.
The key is to never assume your heirs or beneficiaries know what you know.  If in doubt, put it in writing!

Mark S. Eghrari & Associates, PLLC is a member of the American Academy of Estate Planning Attorneys.

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Great estate plans accomplish a number of goals.  Chief among them is avoiding probate.  Owning property jointly is one way to avoid probate, and designating someone as the beneficiary is another.  You can even designate a beneficiary for property, using strategies like Transfer on Death and Payable on Death provisions.

Designating a beneficiary is a good way to avoid probate.  Setting up a Living Trust is a better way.  Why?

• Timing. Living Trusts allow you to specify when the beneficiary can access funds or take control of property.
• Creditor protection. Structured properly, a Trust can help prevent creditors from tapping assets held in the Trust.
• Ease of management. If you are disabled or incapacitated, a Trust can allow the trustee to take over management of assets so decisions can be made on your behalf.
• Avoids probate. If your beneficiary passes away before you do, you’ll have to name another beneficiary – or the asset(s) in question will need to enter probate.

Living Trusts are flexible estate planning tools; beneficiary designations are not.  Contact us to see how a Living Trust can accomplish a number of goals – both while you are living and after you pass away.

Mark S. Eghrari & Associates, PLLC is a member of the American Academy of Estate Planning Attorneys.

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First a definition:  A disclaimer is a legal method of turning down a gift that was made to you.  For estate planning purposes, disclaimers are a legal way to turn down either a gift or an inheritance.

For example, say your wife survives you.  Among other bequests, you leave a sizable bank account to your wife.  She is the primary beneficiary of the account, and your two children are the contingent beneficiaries.  So far so good, but what if your wife doesn’t need the money in the bank account, and wants to avoid paying estate taxes?  She can sign a legal document disclaiming the account; when she does, the account passes to your two children since they are the contingent beneficiaries.

The alternative is for your wife to accept the account and then give it to your children.  The problem with that approach is that the funds are counted in her estate, and gift taxes may be due as well.

Disclaimers can be a great estate planning tool under specific circumstances.  Contact us for more information on whether a disclaimer is the right way to ensure your wishes are carried out.

Mark S. Eghrari & Associates, PLLC is a member of the American Academy of Estate Planning Attorneys.

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Though estate planning is something that people of all ages should engage in, the truth of the matter is that a lot of people don’t give it much thought until they start to see their retirement years come into focus. If you are one of the many who hasn’t looked into it very deeply, you may simply assume that estate planning involves drawing up a last will to direct the transfer of your assets.

While you can certainly use a last will to detail your wishes, it is not your only choice. You may have heard about trusts but assumed that they are only useful for people who are extraordinarily wealthy. In reality the creation of a trust such as a revocable living trust can be a good option for people who would not consider themselves to be rich by any means. One of the reasons why these trusts hold appeal is because they enable the transfer of assets outside of the process of probate.

Your estate must be probated when you use a last will as your primary vehicle of asset transfer. The heirs to the estate do not receive their inheritances until the estate has been probated and closed. Probate can take quite a bit of time and just how long it takes will depend upon the jurisdiction in question and the relative complexity of the case. The infamous Anna Nicole Smith battle with the Marshall family went on for some 15 years, outliving both of the original combatants. But even simple, uncontested cases can take several months.

The time factor is just one of the reasons why probate is often avoided. There are expenses involved in the process and the goings-on are a matter of public record. Many people would like to keep their final affairs confidential.

Revocable living trusts are quite popular and as you can see they enable the avoidance of some rather unappealing circumstances. If you’d like to learn more about these trusts, simply take a moment to arrange for a consultation with an experienced Smithtown, NY estate planning attorney.

Mark S. Eghrari & Associates, PLLC is a member of the American Academy of Estate Planning Attorneys.

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There is a lot of information available on the Internet these days.  Because of this easy access to information, you can take care of many things on your own that used to require the assistance of others. This is clearly a positive development, but there are people who try to take advantage of the broad reach that the Internet provides in ways that could be perceived as inappropriate. To this end, Internet marketers sometimes make claims that are enticing but perhaps a bit incomplete or inaccurate.

The above is something to take into consideration if you come across websites that want you to believe that estate planning makes for a very simple do-it-yourself project. They state that all you have to do is fill in the blanks on a one-size-fits-all document that they will provide you with for a fee and you’ll then be good to go. The legacy that you have shaped throughout the entirety of your life will be seamlessly transferred to those that you love in one fell swoop with no legal guidance necessary.

The truth is that every individual is different and there are various ways to transfer assets to your loved ones. The course of action that is best for you may not be right for the next person. Some people are exposed to the estate tax and some are not. And of course there are things to consider other than the transfer of assets, such as planning for the possibility of incapacity.

Additionally, the estate plan that you initially devised is probably going to be have to be updated as time passes and your life situation changes in various ways. Are you prepared to make these changes on your own?

When something sounds too good to be true in virtually every instance it is just that. Estate planning is a serious matter and it is not something that makes for a suitable do-it-yourself project.

Mark S. Eghrari & Associates, PLLC is a member of the American Academy of Estate Planning Attorneys.

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The lives of famous people are often put on display by the media for public consumption, and though this can be difficult for the targets of the attention we can sometimes learn from the successes and failures of others.

This is certainly true when it comes to estate planning and we have seen many instances of high profile individuals leaving behind a mess for their family members due to a lack of proper planning.

On the other end of the spectrum, there was a recent case involving a famous individual doing a good job planning her estate.

Because of the fact that Singer Amy Winehouse was known for a rather freewheeling lifestyle many people would assume that she would be someone who would not have her financial house in order. In fact, British newspapers have reported that she did have an ironclad estate plan in place that left behind her fortune to her parents and her brother.

The thing about the Winehouse estate that is particularly instructive is the fact that under British law her former husband, Blake Fielder-Civil, could have been in line for an inheritance had Winehouse not executed the proper estate planning documents.

Clearly, changes in marital status are just about always going to necessitate an estate plan update. If your estate plan needs revising or if you have not yet made any plans for the future, right now would be a good time to take action and arrange for a consultation with a licensed and experienced Long Island estate planning attorney.

Mark S. Eghrari & Associates, PLLC is a member of the American Academy of Estate Planning Attorneys.

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Home ownership has long been the fundamental key to wealth building in the United States, and if you are like many Americans you may count your home as your single most valuable possession.

For this reason you may be motivated to reduce the taxable value of your home in an effort to stay within the estate tax exclusion. One way that this could potentially be done would be through the creation of a qualified personal residence trust.

With these trusts you name your beneficiary or beneficiaries after funding the trust with your home. This act removes the value of the home from your estate, and when you are creating the trust agreement you include the term during which you will remain living in the home as usual so nothing tangible changes in your life.

Placing the home into the trust is considered to be an act of gift giving that is taxable. But, you are retaining interest in the home by continuing to live in it. As a result, this interest that you retain is deducted from the value of the home for tax purposes.

In the end the taxable value of the property will be significantly less than its true fair market value. If it winds up being less than the gift/estate tax exclusion that is available to you the eventual transfer of the property to the beneficiaries will take place in a tax-free manner.

To learn more about qualified personal residence trusts simply take a moment to pick up the phone and arrange for a consultation with a licensed and experienced Smithtown, NY estate planning lawyer.

Mark S. Eghrari & Associates, PLLC is a member of the American Academy of Estate Planning Attorneys.

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During the 2010 calendar year there have been a number of measures introduced into the House of Representatives that would repeal the federal estate tax. When you examine the matter, you see that there is some logic that supports the fairness of a repeal.

One of the things that repeal advocates point out is the fact that the federal estate tax is an instance of taxing the same resources twice.

To break this down to a very simple example, let’s say that you saved a particular percentage of every paycheck that you earned throughout your life. The number on the check is going to be far less than your gross earnings; you may be left holding $70 out of every hundred that you actually earned.

So you paid your taxes, and your savings represents an accumulation of these after-tax earnings. And this is not to mention the fact that you paid all sorts of additional taxes throughout your life such as sales tax, property tax, etc.

Those who favor a repeal can’t see why these resources should be taxed yet again, and taxed at an extremely high rate, due to the event of your death. These assets would not be taxable while you are living, so those who call the estate tax the “death tax” may not be that far off base. Your death was the event that triggered the tax.

Whether or not the estate tax will someday be repealed remains to be seen. But in the meantime, it is a looming threat to your legacy. Fortunately there are strategies that can be implemented that can mitigate or even eliminate your estate tax exposure. If you are concerned about the ravages of the estate tax, the wise course of action is to sit down and discuss your options with an experienced and savvy Long Island estate planning attorney.

Mark S. Eghrari & Associates, PLLC is a member of the American Academy of Estate Planning Attorneys.

Visit my website for full links, other content and more!