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. …
Affluent Gay Couples Could Benefit From Supreme Court Decision
In the state of New York we have an estate tax on the state level. There is a $1 million exclusion on asset transfers, so only the first $1 million that you leave behind to your loved ones can pass tax-free. The above is true for everyone except married couples. If you are legally married you can leave any amount of money to your spouse tax-free utilizing the unlimited marital exemption. Because gay marriages are legal in New York this applies to same-sex couples who are legally married as …
IRS Handling Higher Volume of Gift Tax Forms
The Forbes website is running an article that is interesting to people in the field of estate planning. It turns out that the Internal Revenue Service is expected to process a much higher volume of gift tax forms this year. If you give taxable or potentially taxable gifts during a given year you must file IRS Form 709. This is true even if you don't owe any tax yet because your overall giving falls below the lifetime unified gift/estate tax exclusion of $5.25 million. Those who need more …
Taxable Value of Home Can Be Reduced
In 2013 the estate tax exclusion is $5.25 million. You have to understand the fact that this figure includes the value of your home, so right off the bat you are going to be left with considerably less to work with if you are a homeowner. Many people would be able to stay within the estate tax exclusion amount if they could somehow reduce the taxable value of their homes. There is in fact a solution for these individuals in the form of qualified personal residence trusts. When you fund …
Married Couples Should Understand Portability
The word "portable" is defined as "Able to be easily carried or moved." In estate planning the term has been borrowed to describe transferring the estate tax exclusion that was afforded to a deceased individual to his or her spouse. Until 2011 the estate tax was not portable, and some critics felt as though this was not justifiable. They make a good point because in most cases both the husband and the wife contributed personally to the accumulation of their shared wealth. Since two …
Unusual Estate Tax Case Finally Resolved
The esteemed art dealer Ileana Sonnabend passed away in 2007. At that time she was in possession of an art collection valued at around $1 billion. When you consult with a local Long Island estate planning attorney he or she will emphasize the impact that the estate tax can have on your legacy. This case gives you an idea about just how severe it can be. The children of Ileana Sonnabend had to pay out $471 million to cover estate taxes on both the federal and the state level. It would be …
Have You Calculated Your Current Net Worth?
It is wise to look at your financial situation in a long-term and holistic manner. One thing leads to another, and there are different expenses that you are going to face as you reach different plateaus during your life. If you work with an experienced attorney who has a background helping people who are planning for retirement as they simultaneously shape a fitting legacy you will have a cogent framework to guide you. Everything that you do in the present impacts the future, and this is …
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