When you're planning your estate you should certainly be aware of the parameters of the federal estate tax. It should be noted that there is also an estate tax on the state level here in the state of New York, but in this post we will focus on the federal estate tax parameters. At the present time the federal estate tax exclusion is $5.25 million. If you take no steps to position your assets with tax efficiency in mind anything that you pass on to your heirs that exceeds $5.25 million would …
Is a Durable Power of Attorney Necessary in New York?
New Yorkers who want to be comprehensively prepared for the period of time known as the "twilight years" should definitely consider the execution of durable powers of attorney. Durable powers of attorney in New York are used rather than standard powers of attorney because the durable designation allows the devices to remain active even if the grantor was to become incapacitated. Clearly, the prospect of being unable to manage your own life is not a very pleasant one to consider. It is not …
A Look at New York Legacy Wealth Planning
When you recognize the fact that you are in possession of wealth that will potentially last for multiple generations you should consider legacy wealth planning. Many people do not understand the fact that estate taxes can return generation after generation to constantly pound away at the family wealth. This is perhaps the most important thing to address when you are engaged in legacy wealth planning. Here in the state of New York we have a state level estate tax. The exclusion amount is only …
New York Estate Planning FAQ: What Is Probate?
If you equate estate planning to the creation of a last will you should certainly know a bit about the process of probate. We will provide a brief overview in this post. Let's say that you create a last will. What happens after you die? Presuming you named an executor when you created the document and this individual is aware of his or her appointment your executor would admit the will to probate. Probate is a legal process that takes place under the supervision of the Surrogate's Court …
Dying Without a Trust or Last Will: What’s the Outcome?
There are those who question why they would need a trust or a last will. They are under the impression that the state of New York will take care of things and the result will be perfectly in line with their wishes. There are significant flaws to this line of thinking. If you die without a last will the Surrogate's Court will be forced to take control of the situation. The estate will be responsible for paying final debts. Ultimately, the assets that comprise the estate will be distributed to …
New York Special Needs Trusts: Preserve Benefit Eligibility
There is no universal estate plan that is right for every family. One type of specific estate planning situation that exists for some people is the need to provide for someone with a disability. This is often done through the creation of a supplemental or special needs trust. Why would you need to use a special needs trust to provide for someone with a disability? The answer would be that you should use such a trust to preserve eligibility for government benefits. There are some types of …
Can Probate Be Avoided?
Most people who do not look into the subject very deeply assume that estate planning involves the execution of a last will. If you use a last will to state your final wishes with regard to the transfer of your property it is not immediately distributed to the heirs. The estate must go through the probate process before the heirs receive their inheritances. Probate takes place under the auspices of the Surrogate's Court here in the state of New York. The estate is going to go through the full …
What Is a Living Will in Smithtown NY?
You may have heard of the last will or last will and testament, but this is not the only type of will that is used in the field of estate planning. Another type of will that everyone should have is a living will. A living will in Smithtown NY is an advance directive for health care. With this legal device you express your wishes regarding the utilization of life-support measures in New York. It is possible that you could fall into a terminal condition and become unable to communicate. …
Long Island Intestacy Laws: What’s the Outcome if I’m Single When I Die?
Procrastination is very common when it comes to estate planning, especially among single people who don't have any children. Those who are in this position often feel as though they don't need to plan ahead because they don't have to provide for anyone. This may be the case, but that does not mean that estate planning is not relevant to you if you are a younger, single adult. In New York, f you die without executing a last will or trust to express your final wishes, regardless of your marital …
Does Your Living Trust Reflect Your Current Wishes?
The revocable living trust is an effective estate planning tool that you may want to consider as an alternative to a last will as an asset transfer vehicle. One reason why people who understand the facts often opt for living trusts is because they enable probate avoidance. Probate is the legal process of estate administration. Creditors and claimants have an opportunity to step forward to seek satisfaction during probate. Anyone who wanted to challenge the will could present a case before the …
Estate Tax Issue at Root of Supreme Court Case
The federal estate tax is going to be a huge concern for affluent people during the estate planning process. There is an estate tax on the federal level that carries a 40% rate and a $5.25 million exclusion. Here in New York we have a state-level estate tax. This exclusion is $1 million, and the top rate is 16%. There are steps that you can take to position your assets with tax efficiency in mind. One thing to take into consideration is the fact that there is an unlimited marital …
DIY Wills & Living Trusts: Understand the Dangers
Wills and revocable living trusts are two of the most commonly utilized estate planning vehicles of asset transfer. The best choice for a given individual will vary on a case-by-case basis. There are in fact other ways to transfer assets, and some of these may be preferable depending on the circumstances. There are those who don't seek out any professional advice. They stumble upon websites on the Internet that sell do-it-yourself legal documents including wills and living trusts. These DIY …
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