The post What to Know About Buy-Sell Agreements – Post Connelly appeared first on Capell Barnett Matalon and Schoenfeld LLP.
]]>The Connelly case involved two brothers, who owned a corporation. When one brother died, the corporation redeemed his shares by utilizing company-owned life insurance. The Supreme Court held that insurance proceeds owned by the corporation and used to redeem the majority shareholder must be included in the valuation of the corporation, without an offsetting liability. The inclusion of three million dollars of life insurance in the fair market value of the company resulted in increased estate tax due.
All buy-sell agreements should be reviewed, and consideration should be given to using a cross-purchase plan or life insurance partnership instead of a redemption approach.
The issues presented in Connelly require planning, as the Federal Estate Tax exemption is scheduled to be reduced by one-half on January 1, 2026.
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]]>The post 4 Things That Should Be in Your “Financial Love Letter” (aka Your Estate Plan) appeared first on Capell Barnett Matalon and Schoenfeld LLP.
]]>Yet providing this kind of detailed information about how to handle your estate is one of the most loving gestures you could offer your family. In a moving essay, writer Laura Wheatman Hill described the “financial love letter” her father drafted for her family. She talked candidly about the value of knowing exactly what he wants for his assets and within his healthcare directive.
“Even though it’s morbid to think about our dad dying, my sister and I discussed the letter and decided we are very happy that he put in the work to tell us exactly how he wants everything to play out,” Wheatman Hill wrote.
To help you understand the elements that should be in your own financial love letter, GOBankingRates talked to several estate planning experts.
The foundational step of any estate plan is a proper will. If you should pass away without a will in place, you’ll have died “intestate.” According to Asher Rubinstein, partner with Gallet Dreyer & Berkey LLP, this means that the probate court will oversee your estate and decide who will receive your assets — a distribution that may not align with what you or your family wanted.
However, relying only on a will to share your assets automatically involves the courts and makes your will a public document. On top of the monetary costs and potential delays of dealing with a court, you’re exposing your family members to the prying eyes of anyone who accesses the court file.
“This, in effect, could be a roadmap to a family member inheriting significant assets. Most people would not want this information to be public,” said Rubinstein.
He explained that in addition to a will, a proper estate plan should include a revocable living trust. “After the person passes away, his or her trust has a continuing duration on its own. This trust should include the same inheritance provisions usually contained in the will,” he said. “Whereas the will has to go through probate and becomes a public document, the trust may bypass probate and remain private.”
Trusts also give the trustee immediate access to the assets in the trust, allowing them to share everything with the beneficiaries much more quickly — as opposed to waiting for a probate court to certify a trustee and approve their access.
Giving someone your power of attorney is the ultimate sign of trust, since you’re empowering them to manage your financial affairs if you’re unable to do so. Choosing someone you know will honor your wishes and making your wishes clear to them is an essential part of making sure that everything goes smoothly.
Having to suddenly decide what a loved one would want if they were incapacitated by illness or injury could feel emotionally devastating. This is part of why Wheatman Hill’s father included a clear advanced care directive in his letter.
“I’m not going to have to debate with my sister about whether he wants resuscitation or extended care if he is in a vegetative state or has reached the end stages of a degenerative condition — he told us. He also told me I get to use my best judgment about moving him to a facility near me if he needs care,” she wrote.
Ensuring that you have someone picked out who can fulfill all your wishes for advanced care or healthcare decisions is an essential part of estate planning. As Gregory L. Matalon, a partner with Capell Barnett Matalon & Schoenfeld LLP, explained, a healthcare proxy “allows an individual to determine who will act regarding healthcare matters when that person cannot. It also allows an individual to declare their wishes regarding medical intervention measures.”
Matalon shared that if you don’t draft a healthcare proxy and power of attorney, the court may appoint someone else to make these decisions for you and your family.
“The appointment of a guardian can be a costly process at an emotionally difficult time and may result in the appointment of a stranger to make these decisions, and not a trusted relative or friend,” he said. “And, without clear gifting provisions outlined in the power of attorney documents, a principal’s assets may be lost to long-term care expenses or estate taxes.”
Having a sense of who you’d like to be in charge of your health and your assets, as well as what you’d like to distribute among your beneficiaries, is important. But it doesn’t do anyone any good if they don’t know where to find, or how to understand, your documents.
For David Johnston, CFP, managing partner at Amwell Ridge Wealth Management, clear communication is the foundation of good estate planning. You should have a method for ensuring that all of your accounts, belongings and interests can be easily identified.
“Without either a written plan — or a digital portal — outlining where everything is (and whom to call), family members are left to embark on a scavenger hunt with neither a map nor a list of what they are looking for,” he said.
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]]>The post I’m an Estate Planner: 4 Things To Consider for Parents of Children With Disabilities appeared first on Capell Barnett Matalon and Schoenfeld LLP.
]]>Parenting a child with disabilities is one of the most powerful and important jobs anyone could do. You want to protect your child in every way possible, ensuring they stay safe while enjoying a full world of potential. But keeping the world open to your children takes a lot of planning for the long-term future — including the day you’re no longer there to advocate for them directly.
While all parents must consider their children’s best interests should the unforeseen happen, disabled children’s parents must approach estate planning with additional preparation and care. Special considerations must be taken when considering everything from who will look after their kids to how to cover their expenses.
GOBankingRates talked to several financial planning and estate planning experts to learn to make a difficult process even a little easier.
Though having someone else raise your child and even care for them into adulthood seems unimaginable, a long-term guardian is one of the first aspects you must plan for.
According to Dave Jones, director of estate strategy at Bailard, “This individual should be familiar with the child’s specific needs and situation and [be] capable of making decisions in the child’s best interest.”
Beyond making major decisions around a child’s care or schooling, guardians should be sensitive to the child’s lifestyle. As a partner for special needs family law at Capell Barnett Matalon & Schoenfeld, Stuart Schoenfeld has words of wisdom for families looking to preserve continuity in their child’s life.
“It is important to ensure the child can still engage in familiar social programs and trips they may enjoy,” he said. “It is [also] important that whoever is caring for the disabled child is aware of and able to continue that child’s standard of living once the parents are no longer able to do so.”
Part of protecting your child means protecting them financially. Jones said that setting up a special needs trust (SNT) is one of the best ways to accomplish this goal – without jeopardizing their eligibility for government benefits like Medicaid and Supplemental Security Income (SSI).
“Funds in the trust can be used to supplement the child’s needs not covered by government assistance, such as education, therapy, transportation, and recreation,” Jones said. “This trust should be managed by a trustee who understands the child’s needs and can ensure the funds are used appropriately.”
Jones also suggested naming several people to serve as trustees, in succession, reducing the possibility of a vacancy in the trusteeship.
“To further protect the disabled child’s financial interests, parents can also consider naming a committee of individuals (perhaps siblings or other family members) in the SNT who can remove and/or replace the serving Trustee,” Jones said.
Helping that guardian give your child the best quality of life can start with a detailed letter of intent. That letter outlines essential information like your child’s medical history, preferences and daily routines.
“This document guides the trustee and caregivers, ensuring they understand the child’s needs and preferences,” Jones said. “In this letter, parents can include information regarding community resources available to their child, including contact information, specific services, and any additional helpful information.”
When planning your child’s financial future, you should know about their available options. Families of disabled children can look into ABLE accounts or tax-advantaged savings accounts that fund disability expenses.
According to Schoenfeld, these accounts can help pay for the typical day-to-day expenses of a disabled child, including food, education, housing, and healthcare.
Jones also suggested potentially purchasing life insurance as additional support for the disabled child.
“Proceeds from a life insurance policy can be directed to the special needs trust,” he said, “providing a source of income for the child’s long-term care.”
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]]>The post Long Island Herald Awards Partners Robert S. Barnett & Gregory L. Matalon, 2024 Top Lawyers of Long Island Award appeared first on Capell Barnett Matalon and Schoenfeld LLP.
]]>Valued colleagues Robert and Gregory are integral members of Capell Barnett Matalon & Schoenfeld’s team of dedicated attorneys and staff committed to providing comprehensive, cost-effective legal services that address each client’s particular challenges, goals, and values.
Robert Barnett CPA, Esq., is a founding partner of the firm. His practice is highly concentrated in the areas of taxation, trusts, estates, corporate and partnership law and charitable planning. His experience includes Surrogate’s Court practice, tax dispute resolution in both Federal and State jurisdictions, and Tax Court representation.
Gregory L. Matalon is a founding partner whose practice concentrates in the areas of estate planning, estate administration, elder law, and not-for-profit and Religious organizations law. He regularly helps individuals and families plan for the future through the preparation of last wills and testaments, trusts, living wills and health care proxies, and durable powers of attorney documents.
The post Long Island Herald Awards Partners Robert S. Barnett & Gregory L. Matalon, 2024 Top Lawyers of Long Island Award appeared first on Capell Barnett Matalon and Schoenfeld LLP.
]]>The post Long Island Herald Honors Yvonne R. Cort as a 2024 Premier Business Woman of Long Island appeared first on Capell Barnett Matalon and Schoenfeld LLP.
]]>Please join us in congratulating Yvonne at the award ceremony held at The Heritage Club at Bethpage in Farmingdale, NY, on Wednesday, March 20th, at 6 pm. Yvonne, along with other distinguished honorees, will be formally recognized for her career achievements and significant contributions to the community.
Yvonne’s selection as a 2024 Premier Business Woman of Long Island further underscores her unwavering dedication to client service, deep knowledge of tax law, and her significant contributions to the community.
Yvonne will also be inducted into the Richner Business Network. This membership will further amplify Yvonne’s community outreach efforts within the Long Island network.
We look forward to continuing to support her endeavors and celebrating her successes.
Yvonne R. Cort is a partner with Capell Barnett Matalon & Schoenfeld LLP. Her practice focuses on resolving Federal and New York State tax controversies on behalf of clients. For over 20 years, Yvonne has assisted individuals and businesses with IRS and New York State tax matters, including New York State and New York City residency audits, as well as New York State and IRS audits and appeals…Read More
The post Long Island Herald Honors Yvonne R. Cort as a 2024 Premier Business Woman of Long Island appeared first on Capell Barnett Matalon and Schoenfeld LLP.
]]>The post Combating the Tide of Anti-LGBTQ+ Laws and Regulations appeared first on Capell Barnett Matalon and Schoenfeld LLP.
]]>It is truly an honor and privilege to serve as chair for one of the newest Sections of the New York State Bar Association. Providing a state-wide community for LGBTQ+ identified legal professionals and allies through CLE programming, live events and advocacy work strengthens our Section’s purpose to promote equality in the law for LGBTQ+ people. I am looking forward to our Section’s continued growth to be a leading voice for the LGBTQ+ legal community.
In this divisive political climate, our community is facing an onslaught of legal and legislative attacks on the local, state and federal levels. Protests against drag queen story hours, bans on books containing LGBTQ+ content and limits to accessible medical care for transgender people threatens our freedoms of expression and individual autonomy. Despite this tidal wave of challenges, our Section remains steadfast in our commitment to be a strong advocate for LGBTQ+ rights in both New York and across the United States.
In the face of these challenges, our Section will address pressing issues confronted by our community in our Annual Meeting CLE programming. Our first panel on immigration and asylum claims will examine pre-existing qualifications for asylum based upon LGBTQ+ legal and extralegal persecution and the challenges posed by recent U.S. policy and overseas legislative developments. Our second program will explore the unique challenges and legislation that LGBTQ+ people face within the criminal justice system and recent advocacy efforts to protect our community within correction facilities such as the Prison Rape Elimination Act (PREA) and pre-trial diversion programs.
Our Section will continue to advocate for LGBTQ+ rights despite this rise in anti-LGBTQ+ sentiment. I am optimistic that the continued support of the Bar Association and committed involvement of our Section members will help us tackle these threats together.
Samuel W. Buchbauer is an associate attorney at Capell Barnett Matalon & Schoenfeld, where he practices in trusts, estates and real estate law.
The post Combating the Tide of Anti-LGBTQ+ Laws and Regulations appeared first on Capell Barnett Matalon and Schoenfeld LLP.
]]>The post Corporate Transparency Act: What You Should Know appeared first on Capell Barnett Matalon and Schoenfeld LLP.
]]>Reporting companies include corporations, LLCs, LLPs, PLLCs, and other entities formed by filing or registering with a state or local government. Registered foreign entities must also report. Larger business entities with an address in the United States and at least twenty full-time employees are exempt, as are banks, brokers, and similar entities registered with the SEC. Tax exempt entities are also exempt.
A beneficial owner is an individual who either owns or controls at least 25% of the ownership interests of the entity or exercises substantial control over the entity. Entity officers are also included as beneficial owners. Company applicants are the individuals who form the entity with the state or local agency. Reporting information includes name, birthdate, address, ID number, along with an image of the document (ex. driver’s license, passport).
For new entities formed on or after 1/1/2024, reporting is due within 30 days (recently extended to 90 days for entities created in 2024). For entities formed prior to 1/1/2024, reporting is due by 1/1/2025. Any changes or corrections must be promptly reported within 30 days. These rules are extensive and cast a wide net. Final forms have not been issued. For more information, see the small entity compliance guide.
The required information is extensive, intensive and may be difficult to determine in complex business structures and family trusts. It is estimated that more than 32 million businesses will need to comply. The attorneys at Capell Barnett Matalon & Schoenfeld LLP are available to assist you in meeting these new requirements.As each company is different, a written engagement agreement will be required before we are able to provide guidance.
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]]>The post Welcome Our New Partner appeared first on Capell Barnett Matalon and Schoenfeld LLP.
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David Caraway is a Partner and member of the firm’s Estate Planning, Estate Administration, and Residential Real Estate practice groups. He was a successful, self-employed attorney for 28 years, building a substantial and diverse clientele, which he brings with him to Capell Barnett Matalon & Schoenfeld LLP. David also brings his Associate, Samuel W. Buchbauer, Esq., to the firm, assuring the utmost continuity and service for all his clients.
Since 1995, David has represented hundreds of clients in estate planning for all individuals, partnered and married couples, and families of every stripe. Such estate planning has ensured that the wishes of the client are honored when circumstances no longer allow the client to express those desires independently.
In addition to hundreds of residential real estate closings under his belt, including houses, condos, coops, and HDFCs, David formerly represented mortgage banks at scores of closings. He became very familiar with all the requirements and pitfalls that may hinder a transaction. David strongly believes that all open matters should be resolved before the closing so that there are as few complications as possible and that the closing will be a pleasant and uneventful one.
David received his Bachelor of Arts degree from Central College in political science and French. During college, David studied for a trimester in Yucatán, Mexico, and a year at La Sorbonne in Paris, France.
While earning his Juris Doctor degree from the University of Iowa – College of Law, David studied international and European law in Arcachon, France, and represented individuals living with HIV/AIDS in Social Security appeals and estate probate, administration, and planning matters.
David works in our New York City office, but is happy to meet with clients in the Syosset office upon request. To connect with David, please contact him at dcaraway@cbmslaw.com or 212.840.6711.
The post Welcome Our New Partner appeared first on Capell Barnett Matalon and Schoenfeld LLP.
]]>The post Missed Our Webinar? Catch Up on Estate Planning for Your Disabled Child appeared first on Capell Barnett Matalon and Schoenfeld LLP.
]]>Stuart H. Schoenfeld and Monica Ruela recently hosted a compelling webinar on “Estate Planning for Your Disabled Child: The ABCs of SNTs.” If you were unable to attend or simply wish to revisit the topics discussed, we’ve provided a link below to watch the full webinar and keep slides on hand when you need to refer back to them.
Feel free to share this link with others who may find the information useful. Please don’t hesitate to reach out if you have further questions or need additional assistance. The Capell Barnett Matalon & Schoenfeld team is always ready to help guide you through these complex legal matters.
The post Missed Our Webinar? Catch Up on Estate Planning for Your Disabled Child appeared first on Capell Barnett Matalon and Schoenfeld LLP.
]]>The post Chinese America Society of CPAs Announces First Tax Symposium of 2023 appeared first on Capell Barnett Matalon and Schoenfeld LLP.
]]>WHAT: The Chinese American Society of CPAs Tax Symposium
WHEN: Wednesday, June 21, 2023
WHERE: Hyatt Place Flushing/LGA, 133-42 39th Ave., Flushing, NY 11354
TIME: 8:15 AM – 5:45 PM l Our partners will present from 11 AM – 1 PM
COST: $100 (For Capell Barnett Matalon & Schoenfeld guests)
CREDITS AVAILABLE: 8 CPE
Register Now
The post Chinese America Society of CPAs Announces First Tax Symposium of 2023 appeared first on Capell Barnett Matalon and Schoenfeld LLP.
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