When you look at the matter of remarriage and prenuptial agreements from a fair-minded and practical standpoint rather than a romantic one you come away with a particular impression. We have all heard the statistic that is tossed about regarding the divorce rate. It is said that about 50% of marriages end in divorce. Different studies provide slightly different figures, but they are all in this vicinity. When it comes to getting married after you have already been divorced the statistical …
Low Rates Make GRATs Attractive
The Section 7520 rate is low at the present time, and this makes the zeroed out GRAT strategy attractive to many people seeking avenues that provide tax efficiency. In the realm of estate planning a GRAT is a grantor retained annuity trust. You as the grantor name a beneficiary, and you receive annuity payments from the trust throughout its term. The IRS adds anticipated interest earnings to the trust's value using the Section 7520 rate. As this is being written (July of 2013) the Section …
NY Daily News: Taxes to Slash Gandolfini Estate
The New York Daily News is reporting that an estate planning attorney that they have spoken with about the subject is calling the estate plan of the deceased New York-based actor James Gandolfini a "disaster." If you are in possession of a significant amount of wealth you must understand the potential for asset erosion that exists in the form of estate taxes. Many states do not have an estate tax of their own, but in New York we do in fact have a state-level estate tax. The exclusion is $1 …
Estate & Gift Tax FAQS
The resources that you want to pass along to your loved ones can be significantly eroded by estate and gift taxes. In this post we will answer some of the more frequently asked questions about these levies. I've heard that the federal estate tax is only imposed on the rich. Is this true? The answer to this question is going to depend on the definition that you use for the word "rich." It is true that most people are exempt from the tax. There is a $5.25 million federal estate tax exclusion. …
Marilyn Monroe and Jim Morrison: Two Estate Plans Gone Awry
Marilyn Monroe and Jim Morrison had something in common when it comes to estate planning. Each of them wanted their resources to go to certain people. In the end, their assets wound up in entirely different hands. In this post we will take a look at the estate plans of these two deceased entertainment icons. The Monroe/Strasberg Connection Marilyn Monroe did not have mentally competent close living blood relatives. She never had a relationship with her father, and her mother spent much of her …
Avoiding Probate With a Revocable Living Trust
Revocable living trusts are widely used to enable probate avoidance. Let's start off by explaining what probate is and why someone may want to arrange for asset transfers outside of probate. In the state of New York the process of probate takes place under the supervision of the Surrogate's Court. Contrary to the way it is depicted in the movies, a will is not something that is just read among family members. It must be deemed valid by the court. Everyone has heard of will challenges, and …
Have You Considered These Estate Planning Details?
Estate planning is not a one-size-fits-all endeavor. This is one of the major reasons why you should probably steer clear of do-it-yourself estate planning notions that you see advertised on the Internet. There are a lot of things to consider, and a lot of ways to go about planning your estate. You have to analyze all the details and understand how to proceed given your unique circumstances. Let's look at some of the details that some people may not consider. Probate You may think that your …
Support Charities, Gain Tax Efficiency
Supporting charities can provide tax efficiency, so you can do something to make the world a better place while you simultaneously mitigate your tax burden. Estate tax efficiency is important for people who have accumulated significant stores of wealth. There is a federal estate tax in place, and here in the state of New York we also have a New York state estate tax. The dividing line that separates those who must pay the tax from those who are exempt is the estate tax exclusion. There are …
529 College Plan Can Benefit Younger Heir
If you have a younger heir on your inheritance list that has not yet attended college you may want to consider starting a 529 college savings plan for the benefit of this individual. Anyone could consider doing this, but it has particular value for those who have assets that exceed the estate tax exclusion amount. At the present time the estate tax exclusion sits at $5.25 million. Anything above this is potentially subject to a federal estate tax that tops out at 40%. You could give gifts …
Estate Planning Benefits of Roth IRA
Intelligent estate planning will involve looking at a holistic picture. It is not always as simple as drawing up a last will that splits up a pie made of liquidity. The wise course of action is to discuss everything with a licensed estate planning attorney who can evaluate your situation and make informed recommendations. With this in mind we would like to examine the estate planning benefits of a Roth individual retirement account. Because this is technically a retirement account you may …
Future Incapacity May Be More Likely Than You Think
Possible future incapacity is something to take seriously when you are looking forward toward the latter portion of your life. Incapacity could strike due to many different medical scenarios as we all know. In spite of this fact of life you may feel as though it is unlikely that you will ever become incapacitated even though you know that it is possible. In fact, the existence of Alzheimer's disease alone makes incapacity planning absolutely essential for everyone. One out of every eight …
Wealthy New York Holocaust Survivor Died Intestate
The New York Times is running an interesting story about a wealthy Holocaust survivor who died intestate. Though there are some conflicting reports about his history, Roman Blum was said to be 97 years of age when he passed away in January of 2012. His assets are estimated to be valued in the vicinity of $40 million. As it turns out Blum, a former real estate developer, didn't leave behind any estate planning documents so he passed away intestate. Under the laws of the state your closest …
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