How the Act will Affect you and your family

The One Big Beautiful Bill Act was signed into law on July 4th by President Trump.  As the bill worked its way through Congress, there were a number of compromises and changes that occurred before it passed both the House and the Senate and made it to the President’s desk.

Below is a set of questions and answers that are meant to cover some of the basics of the Act, and how they may affect you and your family.

How did the Act change tax rates?

The tax rate cuts put in place as part of the 2017 Tax Cuts and Jobs Act (TCJA) were set to expire at the end of this year.  Those rates have now been made permanent and will not increase at the end of 2025.

How did the Act affect the standard deduction?

In 2017, the TCJA nearly doubled the standard deduction, which resulted in a significant decrease in the number of filers who itemized deductions.  The Act has now made the increased standard deduction permanent.  In 2025, the standard deduction increases to $15,750 for single filers, $23,625 for heads of household, and $31,500 for married individuals filing jointly.  The standard deduction will be adjusted for inflation after 2025.

How about the SALT deduction?

The State and Local Taxes (SALT) deduction is a deduction available for those who itemize deductions (meaning those who do not use the standard deduction), and it was capped by the TCJA at $10,000.  This was disadvantageous to residents of states like New York which have higher state and local taxes, as compared to other states.  The Act increases the SALT cap deduction to $40,000, which will be beneficial to New York taxpayers who itemize their deductions.  

Is there no tax on tips?

The Act provides for a temporary deduction of up to $25,000 for qualified tips received by an employee in a business where tips are customarily part of their income, i.e. servers in restaurants.  The deduction is phased out for single filers with income over $150,000 and joint filers with income over $300,000.  This deduction is set to expire after 2028.

What about taxes on overtime?

The Act provides for a temporary deduction of up to $12,500 for qualifying overtime compensation (up to $25,000 for joint filers).  As with the no tax on tips deduction, it is phased out for single filers with income over $150,000 and joint filers with income over $300,000.  This deduction is also set to expire after 2028.

Any changes for seniors?

Taxpayers 65 and older are eligible for a temporary deduction of $6,000, which phases out for individuals with income of over $75,000 and joint filers with income over $150,000.  As with the tax on tips and overtime deductions, this deduction is set to expire after 2028.

Is there a deduction for car loan interest?

Interest paid on car loans, for cars which have their final assembly in the United States, will be deductible up to a limit of $10,000/year.  This is a temporary deduction, that will be phased out for individual filers with income over $100,000 and joint filers with income over $200,000.  These deductions (no tax on tips, overtime, senior, and car loan deductions) are all “above the line” deductions, which means they are available whether you itemize deductions or use the standard deduction.

Is there a change to estate tax limits?

The current federal estate tax exemption amount of $13,990,000, which was set to expire at the end of 2025, has been increased to $15,000,000 as of January 1, 2026.  After 2026, the exemption amount will increase annually with inflation.

What is the status of the EV credit?

The electric vehicle (EV) credit of $7,500 for new vehicles and $4,000 for used vehicles will end September 30, 2025.  Those interested in taking advantage of that credit should plan to take delivery of their electric vehicle by that time.

Are there changes to 529 accounts?

529 accounts are savings accounts, which allow taxpayers to save money with tax free growth and tax-free distributions for qualifying educational expenses.  These accounts have been a valuable planning tool to assist with educational costs.  The Act expanded their use, including increasing the annual amount that can be used for K-12 expenses from $10,000/year to $20,000/year.  It also increased allowable withdrawals in general, including allowing withdrawals to pay for programs that prepare students for industry-recognized licensing exams.

The Act is a very significant piece of legislation that has many important impacts on the lives of Americans.  The items discussed above give you a sample of the more important impacts.  If you have questions about how the Act specifically affects you and your family, it would be wise to contact an accountant or attorney experienced in tax matters.

Matthew J. Dorsey, Esq. is a Shareholder with O’Connell and Aronowitz, 1 Court Street, Saratoga Springs, NY. Over his twenty-eight years of practice, he has focused in the areas of elder law, estate planning, and estate administration. Mr. Dorsey can be reached at (518)584-5205, mdorsey@oalaw. com and www.oalaw.com.

Market volatility, geopolitical tensions, and economic ambiguity can make investing feel like navigating a dense fog. The temptation to either hit the brakes and flee to cash or make impulsive decisions based on headlines can be overwhelming. However, periods of uncertainty are not a signal to abandon your financial goals, but rather a call to reinforce a disciplined and strategic approach to investing.

The cornerstone of a resilient investment portfolio, especially in turbulent times, is a clearly defined long-term plan. Your financial objectives, whether for retirement, education, or wealth growth, should be your guiding star. Market downturns are a normal part of the economic cycle, and a long-term perspective helps to view these periods not as crises, but as temporary fluctuations.  History has consistently shown that markets recover and trend upwards over time; staying invested is often the most prudent course of action.

Diversification remains the most effective tool for managing risk. Spreading your investments across a variety of asset classes—such as stocks, bonds, and real estate—can cushion your portfolio against a significant downturn in any single asset class. Within your stock allocation, further diversification across different sectors and geographic regions is crucial. During uncertain periods, consider tilting your portfolio towards “defensive” sectors like healthcare, consumer staples, and utilities, as these industries provide goods and services that people need regardless of the economic climate.

Investing in high-quality companies becomes paramount when the market is shaky. Businesses with strong balance sheets, consistent cash flow, and low debt are better equipped to weather economic storms. These holdings may not offer the meteoric growth of more speculative ventures, but their relative stability and potential for paying reliable dividends can provide a welcome anchor in a volatile market.

One of the most powerful strategies for investing in a fluctuating market is dollar-cost averaging. This involves investing a fixed amount of money at regular intervals, regardless of market highs or lows. When prices are low, your fixed investment buys more shares, and when prices are high, it buys fewer. This approach smooths out your average purchase price over time and removes the impossible task of trying to “time the market.”

Finally, mastering your own emotional response is perhaps the most critical challenge. The 24-hour news cycle can create a sense of panic, leading to rash decisions like selling at a market bottom. It is essential to tune out the noise, stick to your plan, and avoid checking your portfolio obsessively.

Investing during uncertain times doesn’t require a crystal ball. By focusing on a long-term horizon, maintaining a diversified portfolio of quality assets, continuing to invest systematically, and keeping emotions in check, you can more confidently navigate the fog and stay on course toward achieving your financial objectives.

Stephen Kyne, CFP® is a Partner at Sterling Manor Financial, LLC in Saratoga Springs.

Sterling Manor Financial, LLC is an SEC Registered Investment Advisor and does not provide tax or legal advice, nor is it a third-party administrator. Consult your attorney or accountant prior to implementing any tax or legal strategies.

290 West Ave., Suite 1, Saratoga Springs • 518-584-1621

Bus Trips 

The following trips were made possible by an Adirondack Trust Company Community Fund Lend -A-Hand Grant; supported by Home of the Good Shepherd.

Mystic, CT

Thursday, July 17 | $62 per person | Open to the public

By popular demand, a second bus is added to our day trip to Mystic, CT. Discover the charm of Mystic—a classic Connecticut coastal town rich in history and character. Step aboard the Charles W. Morgan, the last of America’s great wooden whaling ships, explore marine life at the Mystic Aquarium, and uncover hidden gems throughout town. Lunch is on your own, with plenty of local options to savor..

Burlington, VT

Thursday, October 2 | $65 per person | Open to the public

Enjoy a guided tour of the Shelburne Museum which is an unparalleled and unique experience of American history, art, and design. Designed to allow visitors the pleasure of discovery and exploration, the Museum includes 39 distinct structures on 40 acres, each filled with beautiful, fascinating, and whimsical objects. After the tour, head up to Burlington, VT and enjoy a day on your own!

NYC

Wednesday, December 10 | $51 per person | Open to the public

There is no place quite like New York City at Christmas time! Spend a day on your own shopping at the winter village in Bryant Park, visiting the tree at Rockefeller Center, or experience a magical performance by Radio City Rockettes. Whatever you choose, it is sure to be a wonderful day! Meals are not included. You will be dropped off at Bryant Park.

June Events at the Center! 

Music & Mingling

June 19th | 7pm-10pm |
Siro’s Restaurant and Bar

Music & Mingling is back – now at an exciting new location! This signature event gathers over 500 guests each year, and our new venue can handle the growth of this highly sought-after party with unparalleled networking opportunities. Guests will enjoy exceptional food stations, an open bar, live music, silent auction, and stay tuned for announcement on our special guest and presentation. VIP Access for Our Premier Sponsors. 

Visit https://saratogaseniorcenter.org/music-and-mingling/ for more information.

Concert for One: A One-of-a-Kind Musical Experience

Tuesday, June 24 | 10:30am | FREE | Open to the public

Performed by professional musicians on clarinet, flute, cello, and trumpet. In this special event, one professional musician performs just for you—one audience member, one minute, one unforgettable connection. Choose a color that reflects your mood, and that color will guide the music selected just for you and enjoy a personal performance tailored just for you. After your private concert, stay for coffee, cookies, and conversation with fellow music lovers. Come curious, leave inspired!

At the risk of shocking you all, I must admit that I spend a lot of time thinking about motherhood. I know! You’d never have guessed it.

This is due, of course, to the fact that I have children, but I also see that I am a mother-figure in other areas of my life. Certainly my younger siblings have been on the receiving end of their big sister’s motherly ways (for better and worse!), and I can also see that I have a certain maternal presence with my students. It’s become more obvious to me now that I’m a teacher why students sometimes call their female teachers “Mom” by accident. I find myself saying things to my students that I would say to my own kids, and caring about my students in a way that feels particularly mom-like.

What I haven’t thought about as much until recently (but should have, since my boys may be fathers one day), is how often men are father-figures to those in their lives, whether they intend to be or not. For example:

• After a recent at-bat in which my son struck out, his baseball coach thumped him on the helmet in a way that was unmistakably supportive and encouraging, but not at all the way I would have chosen to show such emotion. It seems so very dad-like to me, the way that male coaches are with their players.

• Years ago, I watched an older gentleman at church walk over to a younger man who was there with his wife and children and who was also wearing a winter hat. The older man actually got out of his pew to tell the younger man to take his hat off in church. The way the older man approached the younger man seemed familiar, it felt like the way a dad would remind his son for the thousandth time that hats are not to be worn in church. This might be off-putting to certain people (including the guy with the hat), but little lessons like that can help set a man up for success in life (or at least avoid failure), which is certainly a way to show love.

• My husband sent me a photo recently when I wasn’t home of one of my older boys out in the backyard with his youngest brother — he was taking the time to give him some baseball instruction and model for my little guy what he should be doing when he’s in the field and when he’s up to bat. Yes, he was being big-brotherly, but it was also really dad-like — my older boy had clearly learned from watching his dad how to help a little guy learn more about playing baseball.

• When my oldest got home from college at the end of the semester, I asked him several times to take charge of getting one of his younger brothers to baseball when I was having a hard time figuring everyone’s schedules out — I asked him to take his brother to the field and stay with him until my husband or I was able to get there to relieve him, which sometimes ended up being almost two hours. It was important to me that my younger son have someone there for him, and my oldest boy really struck me as a great fatherly stand-in.

Though we know that, unfortunately, it isn’t always the case, the first example a person should have of a good man is one’s own father, and after that, or in absence of that, the other men in one’s life contribute to a person’s understanding of how to mature and move through the world. Of course this is one of the reasons it’s particularly concerning to me when men refuse or are unable to be good role models for others; I do believe we have a responsibility to each other (to a certain extent), and whether they want to be or not, dads are important.

I recently became aware of a man named Rob Kenney who has a YouTube channel called “Dad, how do I?” Rob started his YouTube channel initially for his own kids after some conversations with his daughter about how to do various things that adults should or would like to know how to do; he asserts that the fact that his dad left he and his siblings when Rob was a teen meant that he had to learn some things on his own that his dad should have taught him. His YouTube channel is five years old and has over five million followers, so it seems pretty clear that information on how to change a tire, shave, tie a tie, jump start a car, and various other car maintenance, style and grooming, and DIY topics that Rob addresses in his videos is filling a need. But it’s not just the topics (loads of other places online could provide the same information), but it’s the way they’re conveyed. As one article on abcnews.com about him reported, he speaks “to the camera like he would his own children.” 

And it’s not just that he’s speaking as a parent, but particularly as A Dad. Anyone can learn and teach how to unclog drains and fix cars and toilets, after all. My husband was raised by his amazing mom on her own after his dad died when he was tiny, and he learned or figured out all the things he needed to. I myself have tied my boys’ ties for them when their dad isn’t home and practiced sports with them, taken out the garbage and fixed the shower faucet … but dads are different from moms and have a specific importance, one that’s irreplaceable and all their own. That’s what I celebrate this weekend!

I hope all you wonderful fathers and father-figures are encouraged by the importance your presence has in the lives of those around you, especially younger people! Who you are and what you do makes a difference, and even if you don’t see your impact, it’s there. Happy Father’s Day!

Kate and her husband have seven sons ages 20, 18, 16, 15, 13, 11, and 6. She can be reached at kmtowne23@gmail.com.

In the unpredictable landscape of personal finance, a robust cash reserve acts as a crucial bulwark against unforeseen expenditures and economic uncertainties. Often referred to as an emergency fund, this readily accessible pool of money is not merely a financial nicety but a fundamental cornerstone of a stable and secure financial future. The importance of maintaining an adequate cash reserve cannot be overstated, as it offers peace of mind, financial flexibility, and protection against the ripple effects of life’s inevitable surprises. 

One of the primary benefits of a well-funded cash reserve is its ability to absorb the shock of unexpected expenses. Life is replete with unforeseen events: a sudden job loss, a medical emergency, a major car repair, or an urgent home renovation. Without an emergency fund, these situations can quickly spiral into financial crises, forcing individuals to resort to high-interest debt, such as credit cards or personal loans, which can trap them in a cycle of mounting interest and principal payments. A readily available cash reserve, typically held in a liquid account like a savings account or money market fund, ensures that these emergencies can be handled without derailing one’s financial progress or jeopardizing long-term goals.

Beyond mitigating immediate crises, an adequate cash reserve provides a vital sense of security and reduces financial stress. Knowing that you have a safety net to fall back on can significantly alleviate the anxiety associated with financial instability. This peace of mind allows for clearer decision-making and a more proactive approach to financial planning, rather than constantly reacting to external pressures. It empowers individuals to take calculated risks, such as pursuing a career change or investing in further education, knowing that they have a buffer to support them during transitional periods.

Furthermore, a healthy cash reserve offers financial flexibility, allowing individuals to seize opportunities or navigate economic downturns without compromising their financial health. In times of economic uncertainty, such as recessions or market corrections, those with robust cash reserves are better positioned to weather the storm, avoiding the need to sell investments at a loss or make hasty financial decisions. Conversely, having readily available funds can enable individuals to take advantage of unexpected opportunities, such as a time-sensitive investment or a significant discount on a major purchase, without incurring debt.

The conventional wisdom suggests maintaining a cash reserve equivalent to three to six months of essential living expenses. However, the ideal amount can vary based on individual circumstances, including job security, health, dependents, and risk tolerance. For those with less stable income or higher financial commitments, a larger reserve might be more appropriate. The process of building this reserve often requires discipline and consistent saving, but the long-term benefits far outweigh the initial effort.

A  robust cash reserve is not just a recommendation; it is an imperative for anyone seeking financial resilience and peace of mind. It serves as a shield against unexpected financial shocks, reduces stress, and provides the flexibility to navigate life’s challenges and opportunities with confidence. Prioritizing the establishment and maintenance of an adequate emergency fund is a proactive step towards building a secure and stable financial future, ensuring that you are prepared for whatever life throws your way.

Stephen Kyne, CFP® is a Partner at Sterling Manor Financial, LLC in Saratoga Springs. 

Sterling Manor Financial, LLC is an SEC Registered Investment Advisor and does not provide tax or legal advice, nor is it a third-party administrator. Consult your attorney or accountant prior to implementing any tax or legal strategies.

Here’s an oldie but a goodie — and maybe a little gift for you moms of little ones this Mother’s Day? I wrote this eight years ago, but this technique is still useful to me sometimes, especially with my youngest (age 6). 

One of the parenting tricks I’ve relied on heavily since my oldest was tiny is Delayed Gratification. With Delayed Gratification, the basic idea is to not, under any circumstance, give up all the secret weapons I have as soon as I’m in the situation necessitating the secret weapons. I bet you all know what I mean!

Example Number 1: Church. I know I have an hour (or occasionally more) during which I really want my kids to stay calm and quiet. My secret weapons for church have included teethers and other quiet toys, books, Cheerios, and sippy cups. Rather than dump all of that out on the pew when I first get there, though, I instead introduce the toys or books first, as needed, one at a time if possible, not moving on to the next thing until the little ones are getting antsy and distraction isn’t working. Then I pull out the Cheerios (one by one if possible), then the drink. Or whatever order seems best based on that day, as well as whether or not they’re hungry, and whichever of the kids need the most managing

Example Number 2: Sporting events. We were at the baseball field the other night for my sons’ game (which was actually the inspiration for this piece), and I brought dinner as I usually do on game nights. I brought several “courses”: chicken tenders (from frozen), green beans and strawberries (some like one, some like the other, and I’m thrilled if any of them willingly eat anything grown in the ground), Cheetos (a personal favorite, I admit), and lollipops. I introduced each food separately, and really tried to keep the lollipops until as close to the end as I could. The boys kept asking for them — they knew I had them — but I put them off until I thought it was a good time to give them out (I’m also not opposed to giving a second or even third lollipop if the particular day requires it.)

Example Number 3: Overnight trips. This one is trickier — different than the one hour of church or couple-hour-long game, overnight trips involve a whole lot more time and often more craziness to manage. But I use the same method of Delayed Gratification by packing several items and activities that are sure to capture my boys’ interest and introducing them slowly and only as needed. Paper and coloring books are great, especially if they’re new — my boys love to color and draw, so I try to save this as long as I can. A new movie (or even a beloved favorite, if it’s sure to do the trick) is a great part of the plan. We don’t play a huge amount of board- or card games, but the boys love it when we do that kind of thing with them (hangman is one of our favorites), so an overnight trip is a great time to do something like that (I usually schedule myself to have coffee during this time). At hotels, we revolve most of our activities around when we swim in the pool; when we would stay with my mother-in-law or when we’re at my parents’, the grandparents always had/have something planned that we schedule around (my mother-in-law loved to get the Slip N Slide set up, for example; my mom loves to bake with the boys; my dad will watch a ball game on TV with them or enlist them to help him with some small chore or activity).

But even though I try to have a rough idea of how to fill up the time when we’re outside the house for short periods or long (because “hanging out” just doesn’t work with small children for too long, in my experience), that doesn’t mean I have every minute scheduled, nor that I’m frantic to have the kids doing “something” every second. I really do try to hold off on introducing anything new/fun/interesting/distracting to them, especially when we first arrive somewhere, as they love to take time to get acquainted with their new surroundings. Even if it’s a spot that’s familiar and well-traveled by our family, my boys will usually be happy spending a good while scoping it out again. The other night my little boys ran right to a tree near where we sit at the baseball field and found cracked acorns underneath on one side and dandelions on the other — all new since we’d been there the week before, and all completely exciting to them. My older boys set off together on a walk around the park and were happily occupied doing that for a large chunk of the game. 

When we arrive at church, we usually have a few minutes during which the boys look around, see who’s there, find the page in the hymnal for the first song, decide whether they want to keep their coats on or take them off, and even say a few prayers. Getting to the grandparents’ house means tearing off their socks and shoes to get comfy, finding their favorite toys of the ones there, saying hi to everyone, claiming spots on the couch, etc.  

This whole idea is related to another parenting principle I live by, which is Don’t Bother a Happy Baby — but that’s a topic for another month. I hope all you moms have a wonderful Mother’s Day, especially my own mom, and I remember my dearly departed mother-in-law as well!

Kate and her husband have seven sons ages 20, 18, 16, 15, 13, 11, and 6. She can be reached at kmtowne23@gmail.com.

Pregnancy is a transformative and often challenging time for many women, both physically and emotionally. As the body undergoes significant changes to accommodate a growing baby, it can experience a range of discomforts including back pain, pelvic pain, and postural imbalances. Chiropractic care is an increasingly popular and effective option for pregnant women seeking relief from these discomforts while promoting overall wellness.

Understanding Chiropractic Care

Chiropractic care focuses on the diagnosis and treatment of musculoskeletal disorders, particularly those involving the spine. Chiropractors are trained to address misalignments in the vertebrae, which can affect the nervous system, muscles, and overall body function. During pregnancy, chiropractic care is tailored to consider the unique physiological changes that occur and is conducted with the utmost safety for both the mother and baby.

Key Benefits of Chiropractic Care During Pregnancy

1. Pain Relief

One of the most immediate benefits of chiropractic care during pregnancy is pain relief. As the pregnancy progresses, changes in weight distribution and hormone levels can lead to discomfort in the back, hips, and joints. Chiropractors use gentle, specific adjustments to realign the spine and pelvis, helping to alleviate tension and pain. Many women report substantial improvements in their pain levels after chiropractic treatments.

2. Improved Posture

Pregnancy alters a woman’s center of gravity as the belly grows, often resulting in poor posture and spinal misalignment. Chiropractic care helps pregnant women maintain better posture through spinal adjustments and exercises designed to strengthen the core and back muscles. Improved posture can lead to reduced strain on the body, enhancing comfort and mobility.

3. Enhanced Nerve Function

The spine houses the nervous system, which plays a crucial role in overall health. Misalignments can interfere with nerve function, leading to various issues. Chiropractic adjustments can promote better communication between the body and the nervous system, which may improve symptoms related to nausea, digestive discomfort, and overall well-being during pregnancy.

4. Facilitating Pelvic Alignment

Proper pelvic alignment is essential for a smoother delivery. Chiropractic care can help maintain optimal alignment of the pelvis, allowing more space for the baby to move and potentially reducing complications during labor and promoting a more comfortable delivery experience.

5. Reduced Stress and Anxiety

Pregnancy can be a time of heightened stress and anxiety for many women. Chiropractic care not only addresses physical discomfort but can also contribute to emotional wellness. The process of receiving chiropractic adjustments can promote relaxation and reduce stress levels, leading to an overall improved mental state for expectant mothers.

6. Support for Postpartum Recovery

Chiropractic care doesn’t have to stop once the baby is born; in fact, many women find it beneficial during the postpartum period. After delivery, the body undergoes further changes as it returns to its pre-pregnancy state. Chiropractic adjustments can help alleviate pain associated with breastfeeding, caring for a newborn, and adjusting to physical changes, facilitating a smoother recovery process.

7. Increased Mobility and Comfort

As pregnancy progresses, mobility can become increasingly challenging. Chiropractic care focuses on enhancing joint mobility and range of motion, which can be particularly beneficial for pregnant women experiencing limitations in movement. Improved mobility not only enhances comfort but also encourages physical activity, which is important for overall health during pregnancy.

Safety Considerations

Chiropractic care is generally considered safe for pregnant women. However, it is essential for expectant mothers to consult with their healthcare provider before beginning any new treatment. A qualified chiropractor with experience in prenatal care will utilize techniques that are safe and appropriate for each stage of pregnancy. They will also be mindful of any specific health concerns or conditions that the mother may have.

Chiropractic care offers numerous benefits for pregnant women, promoting comfort, mobility, and overall well- being. With personalized treatment plans tailored to each individual’s needs, it can provide effective relief from common pregnancy-related discomforts while supporting a healthier pregnancy and postpartum recovery. As always, expectant mothers should work closely with their healthcare providers to ensure that all aspects of their health are appropriately managed during this exciting and transformative time.

Dr Minogue enjoys treating patients of all ages and stages of life.  This includes helping athletes reach optimal performance, supporting mothers through prenatal and postpartum stages, keeping infant’s and children’s spines aligned for optimal nervous system development, and helping older patients age gracefully. Appointments can be made online at MySaratogaCiropractor.com.

Key Things to Know to Protect Your Rights

In my practice, I handle a lot of estate administration work in Surrogate’s Court.  When someone dies and their Last Will and Testament (“Will”) is submitted to probate, the beneficiaries of that Will want to ensure they receive what they are entitled to.  

I have frequently had estate beneficiaries come to me and ask how they can ensure they receive what they are due.  What follows is a set of questions and answers that addresses those issues.

Are there different types of beneficiaries?

Yes.  In general, beneficiaries of a Will can be recipients of a specific bequest, general bequest, or residuary bequest.  A specific bequest is a gift a particular item, i.e. “I give my diamond wedding ring to my daughter”.  A general bequest is a gift of a particular sum of money, i.e. “I give $5,000 to each of my grandchildren”.  A residuary bequest is a gift of what is left of the estate assets after all specific bequests and general bequests are distributed and all debts, claims, and expenses are paid.

What do the beneficiaries have to do?

For recipients of specific bequests and general bequests, their situation is hopefully relatively simple.  They just have to ensure that they receive the specific item (i.e. the wedding ring) or specific amount of money (i.e. $5,000) that they are entitled to.

What problems can relate to a specific bequest?

With a specific bequest, it’s possible that the language used to describe it is imprecise.  For example, if the decedent gives a beneficiary “all my tools and equipment”, there may be a difference of opinion as to what that exactly refers to.  It is also possible that the item that is described no longer exists.  It could have been sold, lost, or given to someone else during the lifetime of the decedent.  

What problems can relate to a general bequest?

With a general bequest, it is possible that there is insufficient money to pay all the bequests in the Will.  For example, after paying the debts of the decedent, claims against the decedent, and the costs of the estate administration (which need to be paid first), there could be $40,000 left to distribute in an estate.  If there are ten gifts of $5,000 each to the decedent’s grandchildren, then there is a deficit of $10,000 in the estate assets.  In that case, the grandchildren would each take a pro-rata reduction of $1,000 – resulting in a gift of $4,000 each, instead of the intended $5,000 each.

What problems can relate to a residuary bequest?

With a residuary bequest, the beneficiary should take steps to ensure that the amount they are receiving is appropriate.  To do that, they should request an informal accounting from the executor as to the payment of all debts, claims, expenses, specific bequests, and general bequests.  In my practice, I usually provide to the residuary beneficiaries what I call a “checkbook accounting”.

What is a checkbook accounting?

A checkbook accounting is an annotated copy of the checkbook register for the estate checking account.  It would show all money coming in and all money going out, with explanations for each entry.  The explanations can be quite simple, i.e. “proceeds of liquidating savings account” or “payment to accountant for tax return prep”.  

Is an informal accounting required?

No. Sometimes the beneficiaries are happy to receive their residuary bequest without additional explanation.  That could be the case because they trust the executor and need no further information, or perhaps because the executor has kept them thoroughly informed throughout the administration of the estate.

What if a beneficiary has concerns?

A beneficiary can certainly have concerns that they have not received what they are entitled to.  Examples can include the following:  a recipient of a specific bequest who is told the item no longer exists, a recipient of a general bequest who is told there is insufficient money to pay them the full amount, or a recipient of a residuary bequest who believes they are not being paid the correct amount.

What does a beneficiary do then?

As I noted before, the beneficiary can ask for an informal accounting, if they have not already been provided one.  If they have been provided an informal accounting, but they are not satisfied with what it says, then they can compel a formal accounting.

How do you compel a formal accounting?

To compel a formal accounting, the beneficiary would bring a proceeding in Surrogate’s Court seeking the filing of a formal accounting by the executor of the estate.  The executor will either file an accounting voluntarily after receiving notice of the proceeding, or the Court will order the executor to file one by a certain date.

What happens after the accounting is filed?

After the formal accounting is filed with the Surrogate’s Court, the beneficiary has the right to file Objections to the accounting.  For example, if they believe the executor improperly took money from the estate, they could object to the executor’s actions and ask that the Court to order the money be restored to the estate.

What if the executor denies acting improperly?

If the beneficiary files Objections and the executor denies them, then the Court will conduct a trial to determine the factual circumstances of the case.  If the matter cannot be settled, the Court will issue a Decision determining the rights of the parties.

Are formal accountings common?

No. The vast majority of estates are settled informally, with minimal controversy.  With that said, there are certainly cases where executors have acted improperly, and the beneficiaries need to take court action to ensure they receive what they are entitled to.

Making sure you receive what you are entitled to from an estate can be confusing and challenging.  In order to ensure your rights as a beneficiary are protected, it is advisable to seek counsel from an attorney, who is experienced in the field of estate administration.

Matthew J. Dorsey, Esq. is a Shareholder with O’Connell and Aronowitz, 1 Court Street, Saratoga Springs, NY. Over his twenty-eight years of practice, he has focused in the areas of elder law, estate planning, and estate administration. Mr. Dorsey can be reached at (518)584-5205, mdorsey@oalaw.com and www.oalaw.com. 

When it comes to purchasing life insurance, there are a variety of options available to consumers. Two of the most popular types of life insurance are term insurance and whole life insurance. While whole life insurance offers a combination of life insurance coverage and an investment component, term insurance can often be a better choice for most people for several reasons.

Term insurance is a type of life insurance that provides coverage for a specific period of time, typically 10, 20, or 30 years. If the insured person dies during the term of the policy, the beneficiaries receive a death benefit. Term insurance is typically more affordable than whole life insurance, making it a more attractive option for individuals who are looking for basic life insurance coverage without the added cost of an investment component.

One of the main advantages of term insurance is its affordability. Because term insurance only provides coverage for a specific period of time, the premiums are typically lower than those of whole life insurance. This can make term insurance a more cost-effective option for individuals who are on a tight budget or who want to maximize their coverage without breaking the bank.

Another advantage of term insurance is its flexibility. With term insurance, policyholders can choose the length of coverage that best fits their needs. For example, a young family with children may opt for a 20-year term policy to provide financial security until their children are grown and independent. On the other hand, a single person may choose a 10-year term policy to cover them until they reach a certain age or milestone.

Additionally, term insurance is straightforward and easy to understand. With term insurance, policyholders pay a fixed premium for the duration of the policy term and receive a death benefit if the insured person passes away during that time. There are no complicated investment components or cash value accumulations to worry about, making term insurance a simple and hassle-free option for individuals who want basic life insurance coverage without the added complexity.

While whole life insurance can offer the benefit of cash value accumulation, the returns on the investment component are often lower than what policyholders could achieve by investing in other vehicles, such as mutual funds or retirement accounts. Furthermore, the fees associated with whole life insurance can eat into the cash value accumulation over time, reducing the overall return on investment.

In conclusion, term insurance can be a better choice for most people than whole life insurance for several reasons. Term insurance is typically more affordable, flexible, and easy to understand than whole life insurance. By opting for term insurance, individuals can get the life insurance coverage they need without breaking the bank or getting bogged down by complicated investment components. Ultimately, term insurance offers a simple and cost-effective way to provide financial security for loved ones in the event of an untimely death.

As always, work closely with your Certified Financial Planner® professional to help ensure that the insurance you choose is appropriate and adequate to fit your needs.

Stephen Kyne, CFP® is a Partner at Sterling Manor Financial, LLC in Saratoga Springs.

Sterling Manor Financial, LLC is an SEC Registered Investment Advisor and does not provide tax or legal advice, nor is it a third-party administrator. This piece contains forward-looking statements which are opinion, not guaranteed, and subject to change.