Marriage

Different forms of ownership frequently result in assets being passed by operation of law, and not according to the wishes stated in the Last Will and Testament. It is crucially important to discuss with your attorney your specific wishes and the current forms of ownership of your assets.

Property: Joint ownership of both real and personal property has been recognized for centuries. Three forms of joint ownership are recognized in New York:

1. Tenancy in Common.

James Gandolfini: No Need to Pay Extra Taxes

The actor and producer most renowned for his role as mafia boss Tony Soprano left only 20% of the estate to his wife. The remainder was left to his children, friends, and relatives. Since his estate was above the estate tax threshold, the result was that approximately 55% of the estate's money went to pay the taxes and fees! 

He could have avoided this onerous payment. It would have been done by gifting assets during life, leaving more money to his wife directly (there is an unlimited marital deduction for a US citizen spouse) or by setting up a specialized trust which gave income for life to his spouse but left her with no control to dispose of the assets upon her death. 

Either way, with proper planning, millions of taxes could have been avoided. 

As families continue to change and evolve, so do estate planning policies. In 2019, when we discuss estate planning, we must account for a broader definition of family than ever before. Here are several issues to look out for when planning for the future.

Marriage: The first issue concerns marriage; specifically, who is a Spouse and whether or not a person is legally married.  Legal  marriage is usually determined in accordance with  state law.
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There are different motivations for living child-free. Some couples focus on careers, travel or hobbies. Others see children as a burdensome financial obligation. Yet others are unable to have children. Regardless of reasons, planning for a childless couple may be somewhat different than for a couple with children (no need for guardians for minors), but just as important.
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As discussed in the previous article, there are very few of your assets that are protected from creditors in the event of a lawsuit. There are some simple steps that you can take to address your asset’s vulnerability to attacks by creditors.

1. Buy insurance. You should have a liability insurance policy on your car, on your home, on your business, and an umbrella policy.

2. Review ownership of assets.

When spouses divorce, there are often children left from first marriage. When one of the spouses remarries, he should be very careful that the children from the first marriage do not get disinherited.

The second spouse, who is often much younger and less financially secure, may exert pressure on her husband to provide for her in the event of his death.  The second spouse may have new children, whom the father sees on a daily basis. Simultaneously, the remarried husband may not see the children from first marriage as often (due to geography or ill-feelings from both sides).

In the United States v. Windsor, the Supreme Court rules that federal government must recognize same-sex marriages legally performed in a state for federal law purposes. Below are some tips in an estate planning concept:

1. Boomerang assets.

Lots of same-sex couples do not have children. While the couple may want to provide for each other, after the death of the second-to-die spouse, they each may have different dispositive wishes.
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Sometimes adults get adopted. Even though most adults no longer need a parent to make legal and financial decisions for them, adult adoptions still happen for other reasons.

The main reason for adult adoption is usually inheritance. If a person is not related to you biologically or legally, if there is no Will, then the person will not inherit your money. Of course, this issue can often be easily resolved by writing a Will and naming that specific person in the Will.

On Friday, the Supreme Court agreed to decide whether any of our 50 states can prohibit same-sex marriage. Currently, the number of states allowing same-sex marriage is 36 and the District of Columbia, and more than 70% of Americans now live in states where gay couples can marry.

A 2012 case United States v. Windsor struck down a part of the Defense of Marriage Act which barred federal benefits for same-sex couples. This decision was later used by lower courts to rule in favor of same-sex marriage, and recently the Fourth, Seventh and Tenth circuits have struck down same-sex marriage bans in many states.

In November 2014, a Sixth Circuit court upheld bans on same-sex marriage in four states (Michigan, Ohio, Kentucky and Tennessee). By upholding a marriage ban, the Sixth Circuit created a split among the federal appeals courts. A circuit split usually dramatically increases the chances of the Supreme Court review of the issue.

The Supreme Court agreed to hear petitions from plaintiffs challenging the marriage bans in these four states. The two issues in front of the Court are whether the Constitution requires states “to license a marriage between two people of the same sex” and whether states must “recognize a marriage between two people of the same sex when their marriage was lawfully licensed and performed out of state”. A final ruling on these two issues is expected in June.

Both proponents and opponents of same sex marriage were happy that the issue is in front of the Supreme Court. Proponents of same sex marriage want to end the legal bans against same sex couples. Opponents want to uphold the states’ right to decide the issue, including the right to define marriage as the union of a man and a woman.

http://www.scotusblog.com/2015/01/court-will-rule-on-same-sex-marriage/