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Tax Planning and End of Year Gifting Seminar – December 7th

Tax Planning and End of Year Gifting Seminar – December 7th

Please join us for a complimentary seminar:

DECEMBER 7TH EVENING SEMINAR

Tax Planning and End of Year Gifting
Presented by: Judith D. Grimaldi, Esq. & Pauline Yeung-Ha, Esq.

When: Thursday, December 7, 2017  6:30 PM to 9:30 PM
Where: Cebu Restaurant   8801 3rd Avenue  Brooklyn, NY 11209
Light Refreshments will be served


MUST RSVP by December 1st to mcoppola@gylawny.com or (718) 238-6960

Pauline Yeung-Ha named honoree by the General Human Outreach in the Community, Inc.

Pauline Yeung-Ha named honoree by the General Human Outreach in the Community, Inc.

We are proud to congratulate Pauline Yeung-Hapartner of Grimaldi & Yeung LLP, named as an honoree
by the General Human Outreach in the Community, Inc. 

Ms. Yeung-Ha will be honored at the General Human Outreach’s (GHO) 25th Anniversary Gala on November 15, 2017 at Terrace on the Park.

GHO believes that Ms. Yeung-Ha’s volunteer efforts for individuals with special needs in the Asian American community has demonstrated her passion for supporting this vulnerable population, in addition to her long-time commitment to advocating for the senior population. Her recent efforts for this population highlight that her professional, bi-lingual and bi-cultural background are much appreciated and needed.

We congratulate her on this highly esteemed and very deserving honor!

For more event details, click here.

Please visit our website for information on Elder Law and Estate Planning: www.gylawny.com 

GRIMALDI & YEUNG LLP
Phone: 718-238-6960
Brooklyn and Manhattan Offices:

9201 4th Ave, 6th Floor
Brooklyn, NY 11209

546 Fifth Avenue, 6th Floor
New York, NY 10036

This post is made available by the lawyer for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this site you understand that there is no attorney client relationship between you and the lawyer. The post should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. ATTORNEY ADVERTISING.

 

 

And the NIA awards go to…

And the NIA awards go to…

Judith D. Grimaldi and Joanne Seminara. Congratulations! 

The NIA’s 19th Annual Community Recognition Awards Dinner was held on September 28, 2017 at Gargiulo’s Restaurant.

Among the honorees, Judith D. Grimaldi and Joanne Seminara, were awarded for their hard work and outstanding commitment to the community!

Mary Anne Cino, NIA Chief Executive Officer, Judith D. Grimaldi, Joanne Seminara & Annette Scaduto, NIA’s Director of Program Operations

Judith D. Grimaldi, Joanne Seminara and Michel Bove, NIA President

Judith D. Grimaldi & Joanne Seminara with NIA awards

Alyssa Relucio-Silver of NIA; Michael Bove, NIA President; Mary Anne Cino, NIA Chief Executive Officer; Joanne Seminara; Brian Chin, Northfield Bank; Sandra Chapman, Office of Brooklyn Borough President Eric Adams

Justin Brannan, Joanne Seminara, Brian Chin, Northfield Bank, Michael Bove, NIA President

 

Grimaldi & Yeung partners: Joanne Seminara, Pauline Yeung-Ha & Judith D. Grimaldi

 

Please visit our website for information on Elder Law and Estate Planning: www.gylawny.com 

GRIMALDI & YEUNG LLP
Phone: 718-238-6960
Brooklyn and Manhattan Offices:

9201 4th Ave, 6th Floor
Brooklyn, NY 11209

546 Fifth Avenue, 6th Floor
New York, NY 10036

This post is made available by the lawyer for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this site you understand that there is no attorney client relationship between you and the lawyer. The post should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. ATTORNEY ADVERTISING.

Retirement Benefits as a Lasting Legacy

Retirement Benefits as a Lasting Legacy

“When a Trust is a Must”
Part 3 in a series by Joanne Seminara, Esq.

An IRA Trust is an important estate planning tool for maximizing, protecting and managing your Individual Retirement Account or IRA.  Using this tool, an IRA Trust, rather than one or more individual beneficiaries are named as the IRA beneficiary.  The IRA Trust, in turn, designates the beneficiaries of the asset. Properly drafted, an IRA Trust allows extended tax deferral benefits by “stretching out” the payments over the beneficiary’s life expectancy.

An IRA Trust may be advisable for one of more of the following reasons:

  • Beneficiary is too young to manage her own affairs
  • Beneficiary is disabled
  • Asset protection and creditor protection
  • The need to preserve assets for children in second marriages and/or non-traditional family members
  • Wealth preservation
  • Tax planning

Consider the following situation.  Anna, age 78, is a retired widow who, after working as a paralegal at a large law firm for 40 years, has amassed a $500,000 IRA.  Anna has one child,  Nancy, age 50, from whom she is estranged, and 2 granddaughters, who are 13 and 15.  Nancy is married to Mike, a spend-thrift who does not contribute much support to the household.  Anna does not wish to leave her substantial IRA to her daughter and wants to leave her sizable IRA to her grand-daughters so they have the chance of a good start in life.  How can Anna safeguard her hard earned IRA assets for their future needs?

The solution is an “IRA Trust” for the benefit of her granddaughters, who may not be adults or mature enough to manage their own assets at Anna’s death.  A “Trust” allows a person, called a Trustee, to manage assets for the benefit of another person to ensure the assets are used as intended. An IRA Trust is specifically drafted to hold IRA assets, which are typically “tax deferred,” that is, assets for which income taxes have not been paid and for which taxes will be due when the asset is distributed, or “paid out,” in the future.

A designated beneficiary of a retirement benefit plan is generally required to take minimum required distributions (or “MRDs”) starting at age 70.5 over his or her life expectancy.  If a Trust is the beneficiary of an IRA and all the Trust beneficiaries are individuals, the oldest beneficiary‘s life expectancy will be used to calculate the MRDs.  An IRA Trust is the perfect tool for Anna because it allows for tax deferral on the IRA assets (to the extent they are not paid to Anna and taxed during her lifetime) to be further “stretched out” past her lifetime and continued over the lifetime of her now 15 year old granddaughter for the benefit of both granddaughters.

An IRA Trust can be drafted as an “accumulation trust” so that distributions to beneficiaries are accumulated and distributed at certain defined beneficiary ages, or a “conduit trust” which requires direct mandatory distributions to a beneficiary annually over his or her life expectancy term. IRA Trusts can even allow for the flexibility to change the distribution plan during the term of the Trust if the Trust provides for a “trust protector” to make this decision.

Creators of IRA Trusts, called the Grantors, like Anna, should carefully consider the age of their beneficiaries and their likely needs when deciding between an Accumulation Trust and a Conduit Trust.  This decision should follow review of the time period that the IRA assets will remain undistributed or “in trust,” when and how the distributions will be made, and the tax ramifications for such assets.

Trusts are taxed at higher income tax rates than individuals.  Therefore, to the extent the income earned by the IRA is “accumulated” within the Trust and not paid out to an individual beneficiary in any year, the Trust will have to pay income taxes at this higher rate.   Alternatively, an IRA “conduit” trust which provides for regular mandatory distributions to a younger beneficiary may achieve more favorable income tax treatment. This type of Trust, which regularly sheds income over the lifetime of the beneficiary, allows income tax to be paid at the individual’s tax rate, which is typically lower.

There are other issues to consider when deciding between an Accumulation Trust and a Conduit Trust.  If the Grantor wishes to name more than one beneficiary and/or a contingent beneficiary, and one beneficiary is significantly older, a Conduit Trust may be more suitable. Conduit Trusts offer the advantage of using the often longer life expectancy of a single beneficiary, and thus greater tax deferral and growth, rather than the shorter life expectancy of the older beneficiary.

IRA Trusts are advanced estate planning tools governed by complex Federal Internal Revenue Code regulations.  There are special restrictions and terms that must be included in an IRA Trust for it to be effective. An IRA trust should be considered in consultation with experienced estate planning attorneys and financial advisors.

Additional resources provided by the author

Part 1: When a Trust is a Must

Part 2: When a Trust is a Must:  “Long-Term Care and Asset Protection”

 

Joanne Seminara

GRIMALDI & YEUNG LLP:
Phone: 718-238-6960
Brooklyn and Manhattan Offices:

9201 4th Ave, 6th Floor
Brooklyn, NY 11209

546 Fifth Avenue, 6th Floor
New York, NY 10036

This post is made available by the lawyer for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this site you understand that there is no attorney client relationship between you and the lawyer. The post should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. ATTORNEY ADVERTISING.

Complimentary Breakfast Seminar: “Medicaid Planning & Asset Protection Trusts”

Complimentary Breakfast Seminar: “Medicaid Planning & Asset Protection Trusts”

Grimaldi & Yeung LLP is hosting an upcoming Complimentary Breakfast Seminar:

Judith D. Grimaldi & Naomi Levin will be presenting:

“Medicaid Planning & Asset Protection Trusts”

When:
Thursday, October 12, 2017
8:30 AM to 10:30 AM

Where:
Fifth Avenue Diner Restaurant
432 5th Avenue (Btwn. 8th& 9th Sts.)
Brooklyn, NY 11209

MUST RSVP by October 9th: mcoppola@gylawny.com or (718) 238-6960

PRINTABLE FLYER

GRIMALDI & YEUNG LLP
Phone: 718-238-6960
Brooklyn and Manhattan Offices:

9201 4th Ave, 6th Floor
Brooklyn, NY 11209

546 Fifth Avenue, 6th Floor
New York, NY 10036

This post is made available by the lawyer for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this site you understand that there is no attorney client relationship between you and the lawyer. The post should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. ATTORNEY ADVERTISING.

Social Security Scam

Social Security Scam

Seniors Beware: New Con Targets Social Security Checks

Government officials are warning about cons targeting Social Security beneficiaries.

Cons who are posing as agents for Social Security in this latest scam tries to trick seniors into “verifying” private information over the phone — including Social Security numbers, birth dates and parents’ names — supposedly to provide the senior with a cost-of-living increase in their benefits.

If the senior provides all the requested information, the scammer uses it to contact the real Social Security Administration to attempt to change the person’s direct deposit information and steal benefit checks.

Another Social Security scam starts with a recorded phone call warning seniors about a problem with their benefit checks. If the seniors call the number listed on the recording, they’ll be told that a warrant has been issued for the victim’s arrest and that the only way to solve the problem is by buying hundreds of dollars’ worth of prepaid debit cards “to resolve the warrant.”

These schemes target innocent people and try to trick them out of their money. Please be aware and cautious of any calls from the Social Security office.

If you think the Social Security Administration might have reason to contact you, hang up and call the agency back at their listed local number or their toll-free headquarters number at 800-772-1213.

Never provide private information — especially your Social Security number — to someone whose identify cannot be confirmed. The caller is often trying to get your information for identity theft, to use your name and Social Security number to apply for credit cards and loans.

If you receive a suspicious call from someone who claims to be with Social Security or the agency’s Office of Inspector General or the IRS, report the issue to the Office of the Inspector General at 1-800-269-0271 or online via https://oig.ssa.gov/report to help preserve further abuse.

GRIMALDI & YEUNG LLP
Phone: 718-238-6960
Brooklyn and Manhattan Offices:

9201 4th Ave, 6th Floor
Brooklyn, NY 11209

546 Fifth Avenue, 6th Floor
New York, NY 10036

This post is made available by the lawyer for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this site you understand that there is no attorney client relationship between you and the lawyer. The post should not be used as a substitute for competent legal advice from a licensed professional attorney in your state. ATTORNEY ADVERTISING.