The cornerstone of any estate plan is a will, a legal document that determines how your assets are distributed and any debts repaid upon your death. A well-drafted will can help your loved ones avoid legal complications and ensure that your wishes are carried out. To create a will that is tailored to your needs, you should consult with an experienced Long Island estate attorney. It's essential to have an estate attorney involved to ensure everything is legally sound and aligned with your intentions.
To gain insight into your goals and motivations in creating a will, an estate planning lawyer will ask you a series of questions. This information will give the attorney a clear picture of your motivations in creating a will and help him or her craft a document that accomplishes those goals. Many consider this process a key component of what an estate attorney does.
In addition to asking about your family dynamics, a lawyer specializing in trusts and estates will delve into your financial situation. This encompasses details about your assets, debts, and which of these you wish to pass on through a will. Moreover, it's crucial to discuss if you want to name an executor to administer your will. An estate attorney can guide you through the selection process, ensuring the chosen individual is capable and trustworthy.
The attorney will explain the various options available for distributing your property through a will, including trusts. The use of trusts can help you avoid probate, and an estate attorney is instrumental in explaining the benefits and procedures associated with each type of trust.
New York mandates that a will be both written and signed in the presence of two witnesses. Enlisting the services of an experienced attorney in this domain ensures your will abides by all legal stipulations and remains valid after your passing.
Setting up a trust can be a complex task. A trust allows appointed individuals (trustees) to oversee and manage property for someone else (beneficiary). Using a trust can circumvent probate and reduce taxes. An estate attorney will guide you in collating your assets, giving sound advice on the selection of trustees and beneficiaries, and drafting the required documentation. The attorney can also assist in establishing other vital estate planning tools, such as power of attorney and health care proxies.
Trusts are a common part of an estate plan and a great tool for those who have significant assets that they want to manage and distribute in a certain way. Working with an estate attorney can simplify the process and ensure that all legal bases are covered. Trusts allow individuals to bypass probate, avoid taxes, and protect the interests of their beneficiaries.
A trust is an entity that holds assets such as money or real property for the benefit of another person, either during the grantor’s lifetime or after death. With guidance from an estate attorney, the creation and management of these trusts become much easier. There are two major categories of trusts: revocable and irrevocable. Trusts are created by the grantor, and the type of trust is determined by the terms of the document. Importantly, trusts can be amended or revoked at any point in the grantor’s life.
The main benefit of a living trust is that it avoids probate, which can be costly and time-consuming. As an estate attorney would advise, steering clear of probate prevents the immediate distribution of assets, which could result in financial difficulties for heirs. The trust does not require court proceedings and can be overseen by the trustee.
New York State has not adopted the Uniform Probate Code, making probate expensive and lengthy. With the help of an estate attorney, trusts can provide a solution to these problems, saving heirs both time and money. Moreover, trusts maintain the privacy of your heirs by keeping inheritance matters confidential.
One significant advantage of a trust is its protective nature, safeguarding family assets from potential threats like creditors, bankruptcy, and divorce. Since a trust isn't public record, it offers a more robust means of property protection compared to a will.
Trusts also play a pivotal role in tax planning, potentially reducing estate tax liabilities. With proper structuring through an estate attorney, assets within a trust can remain confidential, aiding in tax evasion.
Furthermore, trusts can shield heirs from losing access to asset-dependent government benefits, such as Social Security disability and Medicaid. Positioning assets in a specialized trust ensures they remain safe from creditors and governmental agencies while maintaining access to these crucial benefits.
Offering flexibility throughout the grantor's life, trusts allow room for revisions, a feature not found in wills. Anyone looking to delve into the world of trusts or seeking advice on New York estate planning should consider collaborating with an experienced estate attorney for comprehensive guidance.
The estate tax is a vital part of our national tax system, and it has been the source of much debate in recent years. Proponents of repealing the estate tax claim that it consumes nearly half of an estate’s value. However, the actual rate is far lower than that figure would suggest. It is also less than the top statutory rate, which stands at 40 percent. It is essential for individuals to grasp the role that this tax plays in their estate planning, and it can be beneficial to consult an estate attorney when preparing their affairs.
The amount of money that is taxed under the federal estate tax depends on the size and value of an individual’s estate. Typically, an estate comprises real estate, a family business, trusts, and other investments. Engaging an estate attorney ensures accurate valuation, as assets are valued at the date of death, not their purchase date. Moreover, the estate tax does not encompass life insurance policies and retirement accounts, significant parts of most estates.
Many states, including New York, levy their own state-level estate taxes, independent from the federal estate tax. Engaging a local estate attorney can provide insights into state-specific restrictions and requirements, ensuring comprehensive estate planning.
Generally, New York's estate tax calculation involves subtracting settled debts from the total value of an individual’s assets. The resultant amount is taxed at a rate determined by the state. Minor but crucial elements, such as filing Form 1041 and Form 706, factor into the estate taxation process. For estates to acquire an employer identification number (EIN), Form SS-4 is essential.
Estate tax avoidance in New York is possible by bequeathing assets to spouses or charities. Moreover, lifetime gifts can effectively minimize subsequent New York estate taxes. An estate attorney would caution, however, that New York accounts for the value of non-exempt gifts given within three years of death when calculating taxable estates.
Navigating the intricacies of the estate tax is challenging, often necessitating critical decisions both during planning and posthumously. When New York’s exemption falls short of the federal allowance, valuation discounts might be essential to align an estate with state regulations. However, these discounts can erode the basis in the discounted assets, diminishing an estate's overall value. Collaborating with an estate attorney guarantees informed, strategic decision-making throughout estate planning, ensuring asset protection and compliance with both state and federal laws.
Schlessel Law PLLC | Long Island Elder Law Attorney
34 Willis Ave Suite 300, Mineola, NY 11501, United States
(516) 574-9630