Publications — Page 15 of 47 — Lindabury, McCormick, Estabrook & Cooper, P.C. Firm News & Events

Uses of Disclaimers in Post-Mortem Planning

Published on: September 29, 2020 | by Lauren M. Mulcahy

The idea of giving up an inheritance might sound foolish, but in certain circumstances it can be a beneficial estate planning tool. While we as estate planning attorneys try to prepare for every possible outcome at the time of a death, there is no way to predict the timing of a death, the laws at that time, nor the assets a decedent will actually hold at death. Especially in today’s environment where COVID-19 has shocked our economy, the tax laws could change at any time.

A disclaimer or a renunciation is a refusal to accept an interest in property. No one can be forced to receive a gift or bequest; everyone has the right to either accept or refuse what is given. In certain situations, disclaiming may be more beneficial than actually receiving the gift. If the beneficiary of a decedent’s estate disclaims an asset passing to the beneficiary (the “disclaimant”) as a result of decedent’s death, the asset passes to the next-in-line beneficiary as if the disclaimant had predeceased the decedent.

Under federal law, a “qualified disclaimer” is an irrevocable and unqualified refusal by a person to accept an interest in property so long as the following requirements are met:

The SECURE Act Eliminated Stretch IRAs – Now What?

Published on: September 28, 2020 | by Elizabeth Candido Petite

The SECURE Act (“Setting Every Community Up for Retirement Enhancement” Act), which was enacted in December 2019, eliminated the “stretch IRA” – a feature of an inherited IRA account[1] that allowed the beneficiary to stretch out required minimum distributions (RMDs) over his or her lifetime, thereby deferring a significant amount of income taxes on the RMDs. Now, beneficiaries must withdraw the entire account over the 10-year period following the owner’s death. Doing so will significantly accelerate the income tax due with respect to the account.

Perhaps you are thinking: this is a piece of legislation coming from Washington – there’s got to be a loophole, right? The answer is: maybe. Here are a few planning ideas to consider in light of the SECURE Act:

Increase the number of designated beneficiaries.

The CARES Act Changes Retirement Account Rules – Again

Published on: September 28, 2020 | by Elizabeth Candido Petite

The CARES Act (Coronavirus Aid, Relief, and Economic Security), which became law on March 27, 2020, made some important modifications to retirement accounts for 2020. For example:

Required minimum distributions (RMDs) are waived, for both account owners and beneficiaries who have inherited an account.
The 10% early withdrawal penalty is waived for distributions up to $100,000, if any of the account owner, spouse or a dependent has been diagnosed with coronavirus; or if the owner has experienced adverse financial circumstances as a result of coronavirus.

Lindabury Attorneys Named 2021 Best Lawyers and Lawyer of the Year

Published on: August 20, 2020 | by Lindabury, McCormick, Estabrook & Cooper, P.C.

We are proud to announce 11 of our attorneys have been named to the 2021 Best Lawyers® list, two of which were named “Lawyer of the Year.” This recognition in The Best Lawyers in America^© 2021, identifies each for their leading legal talent in their corresponding practice areas.

The following Lindabury attorneys were named as Best Lawyers honorees:

Steven Backfisch: Litigation – Labor and Employment

New Jersey 101.5 FM Interviews Wills, Trusts, and Estates Attorney Elizabeth Candido Petite

Published on: August 18, 2020 | by Lindabury, McCormick, Estabrook & Cooper, P.C.

Dino Flammia from New Jersey 101.5 FM interviewed Lindabury attorney Elizabeth Candido Petite, to discuss the the importance of having a will, a power of attorney and a living will, as well as the latest news from our Wills, Trusts, and Estates practice group. You can read the interview here and listen to the recording below.

Now What? Federal Court Nixes USDOL’S Regulations Implementing the Families First Coronavirus Response Act

Published on: August 14, 2020 | by Lindabury, McCormick, Estabrook & Cooper, P.C.

On August 3, 2020, the US District Court, Southern District Court of New York, issued its opinion in State of New York v. U.S. Department of Labor, et al. striking down four material components of the US Department of Labor’s (“DOL”) regulations implementing the Families First Coronavirus Response Act (“FFCRA”). The Court’s opinion comes approximately four months after the effective date of the regulations and five months before the FFCRA is scheduled to expire.

Background. The FFCRA incorporates the provisions of the Emergency Family and Medical Leave Expansion Act (“Expanded FMLA”) entitling employees up to 12 weeks of paid leave if they are unable to work because of the closure of a child’s school or place of daycare during the COVID-19 pandemic.

The Emergency Paid Sick Leave Act (“Emergency PSL”), also incorporated within the FFCRA, requires covered employers to provide employees up to 80 hours of paid sick leave if the employee is : (1) subject to a government quarantine or isolation order related to COVID-19; (2) has been advised by a heath care provider to self-quarantine due to concerns related to COVID-19; (3) experiencing symptoms of COVID-19 and seeking a medical diagnosis; (4) caring for an individual subject to a quarantine or isolation order by the government or healthcare provider; (5) caring for a child whose school or place of care is closed, or whose childcare provider is unavailable, because of COVID-19; or (6) experiencing any other substantially similar condition specified by the Secretary of Health and Human Services.

Reopening the Household Following COVID-19

Published on: August 6, 2020 | by Lindabury, McCormick, Estabrook & Cooper, P.C.

The COVID-19 pandemic has interrupted households and working families everywhere. As states begin to reopen, employers across the country are constructing return to the workplace plans that incorporate changes to physical and behavior protocols within their buildings and office space. As employees look to reenter the workplace, many working parents are faced with a similar issue – how to safely reopen the home to household employees, including nannies, tutors, dog walkers, cleaning staff, etc.

Whether you’re welcoming back a former employee, or hiring someone new, it is imperative that you construct a thoughtful return to work plan for those reentering your household. While an open and honest conversation about these challenges is a good starting point, the best source of protection is a written agreement between the parties, which formalizes expectations and eliminates areas of question down the road. Your “return to the household” plan or contract should take into account the following principles:

Disinfecting and cleaning measures;

Virtual Divorce: How to Move Forward with Your Life During the Pandemic

Published on: July 30, 2020 | by Honorable Katherine Dupuis, (Ret.) and Nicole A. Kobis

The Honorable Judge Katherine Dupuis, (Retired) and Nicole A. Kobis, partner at Lindabury, McCormick, Estabrook, & Cooper, P.C., explain how divorce can be handled virtually

If classroom lessons and workout classes can be conducted virtually, does the same hold true for divorce proceedings?

The short answer to this is yes. Virtual alternative dispute resolution will result in a faster divorce process during times like these when the courts have limited capabilities and a back log of matters to be heard.

IRS Announces Additional Guidance for Coronavirus-Related Distributions and Loans

Published on: June 29, 2020 | by James K. Estabrook and Elizabeth Engert Manzo

On June 19, 2020, the IRS released Notice 2020-50, which provides additional guidance and relief for retirement plan participants taking coronavirus-related distributions and loans under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). Under the CARES Act, “qualified individuals” may take coronavirus-related distributions of up to $100,000 from their eligible retirement plans without being subject to the 10% additional tax on early distributions. In addition, a coronavirus-related distribution can be included in income ratably over the three-year period commencing with the year of distribution and the individual taking the distribution has three years to repay the distribution to the plan, or roll it over to an Individual Retirement Account (“IRA”) or other qualified retirement plan, with the effect of reversing the income tax consequences of the distribution. In addition, the CARES Act allows plans to suspend loan repayments due from March 27, 2020 through December 31, 2020 and further allows for an increase in the dollar amount on loans made between March 27, 2020 and September 22, 2020 from $50,000 to $100,000. Notice 2020-50 expands the definition of qualified individuals under the Act and provides additional, clarifying guidance regarding coronavirus-related distributions and loans.

Expansion of the Definition of “Qualified Individual”

Under the original language of the CARES Act, a qualified individual included the following persons:

SBA and U.S. Treasury Department Approve Simplified Paycheck Protection Program Forgiveness Application Materials

Published on: June 18, 2020 | by Robert W. Anderson

After receiving numerous complaints about the complexity of the loan forgiveness application form under the Paycheck Protection Program, the SBA and U.S. Department of Treasury on June 16, 2020 approved simplified versions of the forgiveness application. The original loan forgiveness application was 11 pages long, but now many borrowers under the Paycheck Protection Program (“PPP”) will be eligible to apply for forgiveness under a newly streamlined EZ version of the application which is only 3 pages long. Borrowers that cannot qualify to use the EZ version will be able to instead now use a 5-page SBA Form 3508.

To qualify for use of the EZ form, a borrower must be able to fit within at least one of the following three categories:

1. The borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP application and did not include any employee salaries in the computation of average monthly salaries in the application.