Asset protection is an area of interest for clients seeking to preserve their assets from future creditors.  There are many types of potential future creditors you may wish to protect yourself against.  Creditors can arise in context of divorces, bankruptcies, and of course the classic creditors, such as when a doctor or landlord gets sued for malpractice or negligence.  Asset protection also comes up in context of Medicaid (yes, even Medicaid can be a creditor).  Or you may wish to protect your loved ones against their potential future creditors.

The important thing to keep in mind is this: successful asset protection requires that you have done your asset protection before there are actual creditors (including creditors who haven’t knocked on your door yet, but you have reason to think they are coming).  Therefore, if asset protection is on your mind, you should initiate it sooner than later.

Asset protection can be rather basic, and it can be complex.  The type of asset protection we recommend to our clients typically depends on two aspects: (a) the value and the types of assets you wish to protect, and (b) the level of protection you require.  Therefore, as part of our asset protection analysis, we consider not only the use of companies and trusts to protect your assets – we also consider the state in which to establish your company or trust.  This is particularly important because certain states provide better protection against creditors compared to New York, and so we will discuss the benefits and drawbacks of establishing asset protection entities in states such as Delaware or Nevada.

Furthermore, certain states provide creditor protection to the settlor (or grantor or creator) of the trust even if he or she remains a beneficiary of the trust.  This is not possible in New York, because it is against New York public policy to provide creditor protection to somebody who creates a trust, funds it with his own assets, and continues to be a beneficiary of the trust.  However, depending on how the trust is drafted, and depending on certain qualifications, this type of protection is available to you if you set up a trust in another state — even if you continue to benefit from the trust.

At Abraham Mazloumi & Associates, our goal is to educate you so that you can make an informed decision.

When a person becomes mentally incapacitated, he or she may no longer be able to make certain (or any) decisions or take care of himself.  

Oftentimes, a relative or friend may need to step in and make decisions for (and protect) the Incapacitated Person. Depending on the situation, those decisions may involve basic tasks, such as paying the Incapacitated Person’s bills, and they may involve more complex issues, such as managing the Incapaciated Person’s finances or other business affairs, or where he or she should reside.

Ideally, the Incapacitated Person already has an existing durable Power of Attorney (“POA”), in which a trusted person (the “agent”) had been “pre-selected” to take over. 

But what if the Incapaciated Person never did a POA? Or, what happens if the existing POA lacks certain critical powers? In that case, there may be no person with the necessary legal authority to act on behalf of the Incapacitated Person.  This is a typical situation where a guardianship may become necessary.

Therefore, without a POA (or without a POA that gives all the necessary powers), somebody needs to go to court and request the appointment of a guardian for the Incapacitated Person.  Specifically, for adult incpacited individuals, an Article 81 guardianship proceedings needs to be commenced in New York Supreme Court.  

A guardianship can be complex (depending on the Incapacitated Person’s situation and needs), and it can be costly.  And in some cases, a guardianship proceeding can become contested and litigated (such as when family members or friends disagree as to who should be the guardian). 

Abraham S. Mazloumi is court-appointed guardian in numerous cases.  Additionally, Mr. Mazloumi has served in various other capacities in countless guardianship cases, including contested guardianships.  Therefore, we at Abraham Mazloumi & Associates are experienced in counseling you in all matters related to guardianships.

At Abraham Mazloumi & Associates, clients often ask about the benefits of a Last Will and Testament (or Will).  While there are many reasons to write a Will, there are two obvious key advantages of having a Will: (1) You get to select the beneficiaries of your estate.  Potentially equally important, a Will also enables you to name alternate beneficiaries. (2) You get to select the executor of your estate.  The key functions of an executor are to probate your Will (that is, by bringing a probate proceeding in Surrogate’s court), to marshal (or collect) all of your assets, to temporarily manage them, to pay your debts and, ultimately, to distribute your assets to your beneficiaries.  Depending on the size of your estate or the types of the assets that make up your estate, the executor’s responsibilities and duties can be significant.  The executor plays a significant role and needs to be selected carefully.  For that reason, you should also name alternate executors.  

During your meeting with Abraham Mazloumi & Associates, we will discuss the additional features (or advantages) of a Will in great detail, as well as how a Will would relate to your asset protection and other planning needs.  If you wish to start the process of writing your Will immediately and from the comfort of your home, please click on this link to Initiate your Will Writing Process here.

“Trusts and Estate Planning” is a general term for the area of law that addresses the planning needs of individuals. Generally speaking, individuals write Last Wills & Testaments and/or create trusts to provide instructions on how their belongings should be disposed of upon their deaths. As a result, the “Estate Plan” of an individual depends on (among other factors) whether he or she is single, married, has (or does not have) children, has significant wealth or is of limited means, has certain customs or religious beliefs that are to be followed, etc. In other words, the “Estate Plan” of each individual depends on -and should reflect- what is going on in that individual’s life.  

During your meeting with Abraham Mazloumi & Associates, we will discuss your wishes and your current situation, so that your Estate Plan will reflect your situation and your wishes.

Generally speaking, “Probate” describes the process of submitting a decedent’s person’s Last Will & Testament to Surrogate’s Court, with the goal of having the court “validate” the Will and authorize the executor listed the will to act on behalf of the estate.  In a Will you dictate who the recipients of your assets will be, and who should be the executor in charge of administering your Will.   However, your Will does not automatically become operational, and your executor will not have any authority to act, until your Will has been probated and until your executor has received “letters testamentary.”  The process of probate involves (among many other steps) submitting your Will to court, and notifying your distributees (that is, those individuals who under New York law would be entitled to your assets in the absence of your Will) of the probate proceeding, to afford them an opportunity to object to the Will.  Assuming the distributees don’t object (for example, by signing a waiver), and assuming the Will was otherwise executed in compliance with law (for example, EPTL § 3-2.1) to the satisfaction of the court, the court will eventually issues “letters testamentary” to the executor, who can then start to marshalling (collecting and safeguarding) the assets, pay the debts of the decedent and, ultimately, make distributions to the beneficiaries.  As you can imagine, depending on the circumstances, such as the number and location of the distributees, and depending on whether or not somebody objects to the Will, probate can end up taking a long time.   The potential for issues or problems that can arise during probate is one of the reasons why many of our clients express their desire to spare their beneficiaries the hassle of probate, and instead fund a Trust during their lifetime. Assets that are held by a Trust at the time of a decedent’s death are, generally, not subject to probate. 

We at Abraham Mazloumi & Associates represent Executors to help guide them through the probate process. And in many cases we also represent beneficiaries of an estate, such as when they are not satisfied with how the Executor is handling the probate.

Special Needs Planning involves planning for individuals with special needs, and it also includes assisting them with preserving their or applying for government benefits, such as Medicaid or Social Security Supplemental Income (SSI).  One of the planning tools involves setting up a Special Needs Trust.

A Special Needs Trust is an Irrevocable Trust designed for a disabled individual who wants to qualify for or already receives government benefits, and who has or is expected to receive money, that could disqualify him or her from receiving government benefits.  

The typical government benefits that are protected through a Special Needs Trust are Medicaid or Social Security Supplemental Income (SSI).  

The purpose of a Special Needs Trust would be to enable the individual to keep or receive money without losing his or her existing government benefits, or to qualify for them in the first place.  

You may need (or wish) to set up a Special Needs Trust for yourself. Or you may wish to set up a Special Needs Trust for your child, relative or friend. Depending on the situation, the exact nature and various provisions of the Special Needs Trust (such as, who will manage the trust? and what should happen with the assets, if any are left, when the beneficiary of the trust dies?) need to be carefully considered.

During your meeting with Abraham Mazloumi & Associates, we will discuss your your Special Needs Planning needs, and implement a strategy that will incorporate your goals and wishes.

There are several types of business entities: corporations (C-corporations and S-corporations), Partnerships, and Limited Liability Companies.  Each of these types of business entities has advantages and disadvantages.  Therefore, it is important that prior to incorporating a business, you have a good understanding of what your or your business’s needs are, to make sure that you select the appropriate type of entity for your business. 

Furthermore, and perhaps more importantly, you need to think through, among other things, (a) how the business should be managed during your life, (b) how your business should be managed if you become incapciated, and (c) how your business (or your share in the business) should be handled or disposed of upon your death. These (and many other) scenarios should be written down in the governing documents of your business. For example, a corporation would have a shareholder agreement, and an LLC would have an operating agreement.

Your company’s governing documents become even more important if you have business partners or investors. For example, who is in charge of managing the business? What happens in case of a disagreement between the partners? What happens if one partner wants to sell his or her share? Who gets to decide how the business is valued? What happens if one of the partners dies, becomes incpcaitted or declares bankruptcy? These and many other situations need to be addressed in a shareholder agreement or operating agreement at the time the business is established, so that you can decide ahead of time how the aforementioned scenarios should be resolved.

During your meeting with Abraham Mazloumi & Associates, we will discuss your wishes and your current situation, so that you can (a) select the right business entity, and (b) put in place an appropriate shareholder agreement or operating agreement. 

We handle residential real estate closings. Whether you are purchasing or selling a house, a condominium or a Co-Op apartment, we can guide you during every step of the way. Our services include drafting or reviewing the contract of sale, liaising with your real estate agent or broker, dealing with title companies, etc.