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Estate planning and estate tax planning may not be at the top of your to-do list. However, it’s an important aspect of financial planning that can ensure your assets are protected and distributed according to your wishes after you’re gone. Planning for your estate taxes can be a significant burden on your heirs, and proper planning can help minimize that burden.
A skilled New York attorney for estate tax planning can help you navigate complex estate tax issues and provide guidance on the best strategies for protecting your assets and minimizing estate tax. If you’re ready to start planning your estate in NY, don’t hesitate to reach out to us at New York Legacy Lawyers. Our team of experienced attorneys for estate planning may be able to help you create a customized plan that meets your unique needs and goals.
Contact our NY law firm today at (718) 713-8080 to schedule a consultation with a skilled attorney for estate planning.
The American Taxpayer Relief Act of 2012 provided a measure of stability to federal tax rates and exemption amounts concerning the estate, gift, and generation-skipping transfer tax laws. This was a much-appreciated development for estate planning attorneys, financial planners, and wealth advisors who had previously dealt with frequent changes to transfer tax rates and laws over the years. However, the enactment of this Act, alongside other recent laws, has increased the need for a stronger emphasis on income tax planning as a crucial aspect of an overall estate plan.
The Act established the estate and gift tax exemption limit of $5,000,000 (adjusted for inflation) per individual. The limit has also been raised to $5,250,000 for individuals and $10,500,000 for married couples. This exemption represents the highest sum an individual can transfer to others, either during their lifetime or after death, without being subject to gift, estate, or generation-skipping transfer tax. The Act also raised the tax rate to 40% on estate and gift tax transfers.
Income tax planning has become an essential component of estate planning due to the Act’s provisions. This is why it is essential to seek the help of an attorney for estate planning. Speaking to a skilled lawyer who is well-versed in handling estate tax law and other estate planning matters such as trusts and wills can help you see the bigger picture
At New York Legacy Lawyers, our team of New York estate planning attorneys may be able to help you incorporate income tax planning into a basic estate plan.
Contact our NY law firm today at (718) 713-8080 to schedule a consultation with our top-rated attorneys for estate planning regarding estate tax law in New York.
Married partners enjoy the benefit of an unrestricted deduction for transfers made to one another, in addition to their respective individual exemptions. Nevertheless, inadequate estate planning can lead to the loss of a portion of the individual estate tax exemptions following the death of the second spouse. This can occur when one spouse transfers a significant amount of assets to the surviving spouse through the unlimited marital deduction. Transferring assets through the unlimited marital deduction can cause the unused portion of the first-to-die spouse’s estate tax exemption to be lost.
In order to circumvent this problem, estate tax law permits the transferability of individual exemptions between partners. This transferability is also also known as “portability.” This provision enables the surviving spouse to utilize any unused portion of the estate tax exemption of their deceased partner. Nevertheless, this benefit is not automatic and necessitates submitting an estate tax return to the IRS within nine months of the first spouse’s demise.
Another option to avoid relying on portability is to establish a credit shelter trust, also known as a bypass or A-B trust. These trusts work similarly to portability but do not require filing an estate tax return after the passing of the first spouse. Additionally, some states impose a separate estate or inheritance taxes, with lower rates than the federal rate but smaller exemption amounts.
Estate planning and estate tax planning can be challenging, especially if you are not familiar with the law surrounding them. Speaking to an experienced attorney for estate planning can help you understand what steps you should take to ensure that your taxes are minimized. An attorney for estate planning can also help you understand matters such as trusts and wills and how they can be beneficial for your future.
At New York Legacy Lawyers our team of NY attorneys are knowledgeable in the law surrounding estate planning and estate taxes. We may be able to provide the legal services you need.
Contact our NY firm today at (718) 713-8080 to speak with a top-rated attorney regarding your planning needs.
Even if individuals and families with substantial net worth make use of their respective exemptions, they may still have estates that are subject to taxation. In such cases, advanced planning techniques can be utilized to alleviate the burden of estate taxes. There are several approaches for estate planning that one can use to alleviate the impact of estate taxes, including strategic gifting strategies, life insurance trusts, personal residence trusts, and grantor-retained annuity trusts.
A skilled attorney who is well-versed in handling the law surrounding estate taxes and estate planning can help you plan for your future. Especially for high-net-worth individuals, NY laws on taxes can be complicated. It is important to speak with an attorney who can provide the legal advice you need. An attorney for estate planning can also give you an insight as to how trusts and wills can be valuable for planning your loved ones’ futures. Contact New York Legacy Lawyers today to speak with a top-rated estate law attorney in NY.
The Supreme Court’s decision on the Defense of Marriage Act (DOMA) clears the path for same-sex couples legally married in their respective states to access the full range of federal benefits that heterosexual couples enjoy, including those related to federal estate and gift taxes.
Though tax planning tactics can be intricate, a skilled lawyer for estate planning familiar with the estate tax law and gift tax regulations can assist you in creating a thorough plan that maximizes the number of your assets that can be transferred to your loved ones and beneficiaries.
To speak with a skilled attorney for estate planning regarding the law for same-sex couples and their estate taxes, contact New York Legacy Lawyers today at (718) 713-8080.
Planning for your estate tax holds significant importance in New York due to the estate tax cliff. Reducing the taxable estate is crucial for individuals whose estates are at or near 105% of the estate tax exemption. Fortunately, there are several estate planning techniques available that can help minimize or eliminate estate taxes.
A popular strategy is to transfer assets to future heirs while the owner is still alive. However, this approach must be carefully executed to avoid facing penalties in the future.
Another popular technique is to place assets in trusts. Specific trusts can be utilized to decrease the value of the estate by transferring property to another person’s ownership. Lastly, those seeking to avoid estate taxes can opt for charitable giving through a trust or a will provision.
The federal government permits individuals to give up to $15,000 per person each year, and married couples can give up to $50,000 per person annually, tax-free. In addition to tax-free gifts, individuals can pay the medical and education expenses of another person. They can also make gifts exceeding the $15,000 annual exemption by using their $11,580,000 federal unified credit during their lifetime, ensuring that future appreciation of gifted assets is outside their estate.
Several trust types can be established to avoid high estate taxes. A Life Insurance Trust (ILIT) is one of the best options to consider. Life insurance payouts can significantly increase an estate’s value, potentially exceeding the “tax cliff.” An ILIT can hold these payouts to keep them outside of the taxable estate.
Charitable donations are tax-exempt for estates, making it a practical way to minimize estate taxes. You can either include a “Santa Clause” provision in your will or create a trust for a charity to reduce the total amount of estate taxes. Consistent charitable giving over your lifetime can also decrease the final value of your estate.
If you need assistance in reducing the impact of estate taxes, contact New York Legacy Lawyers today to work with an attorney who can guide you through every step of your estate planning.
In 2023, if the value of your estate exceeds $6,580,000 by more than 5%, you will lose the benefit of the exclusion and your entire estate will be subject to New York estate tax. This is known as the “estate tax cliff,” which occurs when your estate’s value exceeds 105% of the basic exclusion amount.
The 2023 New York estate tax cliff is set at $6,909,000. For example, if your taxable estate is valued at $5,000,000, your beneficiaries will inherit the full amount, free from any New York estate tax. If your estate is valued at $6,580,000, there will be no estate tax owed. However, if your taxable estate falls between $6,580,000 and $6,909,000, you will only be required to pay estate tax on the amount exceeding the $6,580,000 threshold. If your estate is valued at $6,650,000, your taxable estate will only be $70,000, and your estate will owe $173,898 in estate tax.
If your taxable estate is valued at $6,909,000 or more, you will fall off the cliff, and your entire estate will be subject to New York estate tax. In this case, your estate will owe $626,352 in estate tax, and your beneficiaries will inherit $6,282,648, less any estate administration expenses, from a $6,909,000 estate.
Working with an experienced attorney for estate planning can be a valuable resource if you’re worried about the estate tax cliff and want to protect your assets. Having the legal advice of an experienced Brooklyn attorney for estate planning is essential for you to understand the complexities of New York’s estate tax law.
At New York Legacy Lawyers, our skilled New York estate planning lawyers may be able to help you develop a comprehensive plan that minimizes your tax liability and ensures your assets are distributed according to your wishes.
Call our firm today at (718) 713-8080 to schedule a consultation with a top-rated estate planning attorney.
Effective estate planning and estate tax planning demand a thorough understanding of tax laws and years of practical experience. Our team of estate planning attorneys understands the estate tax laws in Brooklyn. We may be able to help you work through the intricacies of estate taxes and assist you in securing a favorable result for your estate tax matters.
Our team of Brooklyn estate planning attorneys may be able to provide you with sound advice on how to structure your tax plan and your estate plan ensuring that your loved ones inherit your assets without any undue burden. We may also be able to help you with your probate, wills, or trusts needs.
Contact New York Legacy Lawyers today to schedule a consultation for your estate planning and estate tax needs.
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