Long Island Elder Law & Estate Planning

When you read about the estate situations that many families face it can really open your eyes with regard to the impact of the federal estate tax. This is a death levy that carries a 40% maximum rate, and the exclusion is $5.25 million this year.

If you don’t have more than $5.25 million in assets you may find it hard to empathize. But what if you were fortunate enough to have say $10 million to pass along to your loved ones? Would you feel as though it was fair for the tax man to take 40% of the taxable portion after you paid taxes all of your life?

This is a question that the heirs to the Ed Koch estate must certainly be asking themselves. Koch died at 88 in February, and according to an article that is appearing on the Forbes website the heirs to his estate, which is valued in the vicinity of $10.5 million, are looking at a tax bill of about $2.55 million.

They have to pay the federal estate tax, but there is also a state level estate tax levied here in the state of New York. This tax carries an exemption far below the $5.25 million federal exclusion.

The New York state estate tax exclusion is just $1 million, and the top rate is 16%.

Taking steps to limit your exposure to the estate tax is essential if you are a high net worth individual. Our firm has a background assisting clients who are in need of estate tax efficiency and we invite you to contact us at (631) 265-0599 to set up a consultation.

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About Eghrari Wealth Training Law Firm

Mark S. Eghrari is an attorney in private practice in Smithtown, New York. He has been in practice since 1988. Mark S. Eghrari provides extensive estate and tax planning services to individuals and businesses. Mr. Eghrari’s primary focus is helping clients avoid probate, minimize or eliminate Federal and State Estate taxes and protect their assets from the high cost of nursing care, if they become ill.