New York Probate and Estate Administration Blog

The Tax Act of 2010 put in to play a lot of changes for people, especially the wealthy, said a New York Estate Planning Lawyer. Those that had any significant wealth in their estate planning process wanted to make some donations before 2011. The initial tax on estate planning gifts was set to go up, but at the last minute President Obama signed an extension of the Act which allowed for lower tax rates for an additional two years.
While the Tax Act of 2010 has a lot of wealthy people breathing a sigh of relief, others aren’t so much. Those who followed estate planning advice and took advantage of the tax rates at 35% before 2011 are suddenly sorry they took that advice. While getting your gifts out ahead of the new tax law seemed smart, now it doesn’t. Before the Act was signed, they were allowed gifts of up to $1 million dollars without heavy taxation. After the Act and through 2012, that gift is $5 million dollars, said a New York Estate Planning Attorney.
Some gift givers feel like they were slighted and want their estate planning money back, so they can “re-do” the gift. Some feel like they gave it away too early, or might not have given it away if they had known the tax breaks would be extended. The NYork Estate Planning Lawyers and experts did not know that the President would be making an extension until shortly before it happened, well after they had already doled out advice to hundreds and thousands of people.

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Attempts to settle allegations between a 94-year-old’s new wife and the rest of his family have failed.

A lawsuit was filed against the San Antonio businessman’s new wife and a lawyer November 2009. The $15 millionaire died August 31, 2009 in his home. Family members have been asking questions that no one seems to know the answers to.

The dead businessman’s sister and her two children filed the suit after they found they would not receive any of their inheritance. Until several months after the man’s marriage, the man’s estate would have been divided between the three of them, expressed a New York Estate Planning Lawyer.

The lawsuit was filed to have the man’s final will overturned, a New York Estate Planning Atty commented. With the new will, the man’s wife and three charities would stand to receive the man’s entire estate. His family would be left with nothing. Records show that the final will was drawn up several months after the new marriage.

The suit states that the new wife and the lawyer worked together to take the older gentleman’s money. According to the lawsuit, the wife paid herself $37.500 a month salary. The lawyer was charging the man $980,000 in fees. It is unclear what those fees are other than having the man’s will changed, a New York Estate Planning Lawyer mentioned after reading the suit.

The family states that two doctors, who were paid by the wife, set the couple up. The man had dementia and the family believed they worked together to exploit the old man.

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There were some new estate planning laws that were recorded in the books just before the year 2010 ended, says a New York Estate Planning Lawyer. Some experts in the estate planning field say they are ridiculous and should be taken back off the books because they have a great potential to be abused. Then there are the people who think the new laws are fine and that with certain checks in place, they cannot be abused. So, what are these new estate planning laws?
The dollar amounts for certain tax rates were decreased substantially. The old limit was $1 million dollars or more and the person was taxed at a rate of 35%. The new limit is raised all the way up to $5 million dollars before the 35% tax rate has to be paid on the sum. A $4 million dollar increase means that people can leave their heirs a substantial amount of money and not have to worry over paying the taxes on it when they receive it, according to a New York Estate Planning Lawyer.
However, the new rules also state that this is temporary. Why? To give Americans a tax break during an economic crisis. The rules were made so that the government took less money in hopes that it would be circulated out in to the economy. Any boost in the economy is a good thing, even if it is one person shopping at a time. The temporary estate planning rule is good for 2011 and 2012, says a New York Estate Planning Lawyer. There is a chance that the rules could be extended out further if the economy still does not improve.
A New York Estate Planning Attorney can advise you or a family member on any situation that may affect your future. New York Estate Planning Attorneys can also help in matters of estates that face the court. Call and get a consultation with an estate attorney if you have questions regarding leaving your possessions.

Continue reading " New Estate Planning Laws Seem Frivolous, Says a New York Estate Planning Lawyer " »

If you are a single person, then you might need to change how you have your estate distributed for the future, says a New York Estate Planning Attorney. New laws went in to affect that change the rules for 2011 and 2012 when it comes to estate and gift taxes. The changes are beneficiary to the person receiving the benefits, so it will be worth your while to update what you have already done in regards to your estate or get moving on one today for the future.
Even without children or a spouse, single people should have their estate matters in order in the event of an emergency or accident, according to a NYC Estate Planning Lawyer. An accident can happen at any time, so being prepared is the best bet. If a lawyer has handled your estate planning, then there shouldn’t be anything to worry about in the event of an unfortunate incident. If your matters are handled ahead of time, it might also reduce the chances of a squabble taking place between relatives who might inherit since there are no children or a spouse.
The new rules for exemptions in 2011 state that federal gifts won’t be taxed at the 35% rate until they are over $5 million dollars, says a New York Estate Planning Lawyer. The previous rate was $1 million. The new rules mean that family members can receive more while staying at a lower tax level. It is suggested that while estate planning for the future, money is given away to charities to lower the net worth of the estate and to try and lessen the tax burden left on those who are inheriting the fortune.
A New York Estate Planning Attorney can answer any question you have regarding your net worth and how to leave it to charity and family members. The New York Estate Planning Attorney can get your money to the places you bequest it to upon your death or in the case of a living donation. Call a New York Estate Planning Attorney before making any decisions on your future.

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A new bill being introduced in Massachusetts gives people who love their pets a way to legally care for them after they die, according to a New York City Estate Planning Lawyer. Massachusetts is one of only 7 states in the US that, until now, had no such provisions made for people to leave trust funds to their pets should the owners die before their beloved animals. Now, that is all about to change. 

A New York Estate Planning Lawyer revealed, the previous bill required that the owners of the pets left the money to the people whom they selected to care for the animals, which essentially allowed them to spend the money on anything that they wanted. This new bill, however, names the animals themselves. 

High profile cases of excessive money being left to pets, such as when Leona Helmsley left $12 million to her lapdog, Trouble, have given the impression that these laws are silly or meant only for wealthy people to find a place to stash their money, said the New York Estate Planning Lawyer. But the truth is that people love their pets as much as they love their children and they want to have them cared for should something happen to them. 

Horses, for instance, are expensive to maintain and require a lot of food and other resources, added the New York Estate Planning Lawyer. No worthwhile pet owner would want to leave their precious animals to be sent to shelters to eventually die because no one can afford to keep them. Advocates of this bill say that it is a step in the right direction and is going a long way to encourage the safety and respectful treatment of companion animals. 

Pets play an important role in the lives of our families. A New York Estate Planning Attorney can assist you in making sure that your pets are cared for once you are gone. Call a New York Estate Planning Attorney today and find out about options for pet trusts and guardians.

Continue reading " Massachusetts bill gives animal lovers option for putting pets in their wills " »

Over the years the institution of marriage has come under fire in a million ways. Marriage has become an accessory and not a commitment between two people to forge their lives together, come what may. For many of us, that way of thinking disappeared when we saw our own parents struggle and divorce, reports a New York Estate Planning Lawyer. Many people today have no reference point as to what a good, strong marriage even looks like, and so it is becoming obsolete. 

Even so, married couples still enjoy a greater degree of stability in finances, notes the New York Estate Planning Lawyer, because of social security benefits and health insurance, among other things. A former spouse can collect social security on their ex if they were married for at least ten years, according to the New York Estate Planning Lawyer, which makes it obvious that giving a marriage more than a year or two to grow and evolve is a great idea, especially if there are children involved. 

Being married has other advantages, too, added the New York Estate Planning Lawyer, including the combined finances which can result in tax breaks. Perhaps the real benefits of marriage, however, aren't the financial ones. A good marriage is a journey between two people and offers a totally unique opportunity for both individuals to get to know each other as they truly get to know themselves. As a result of all that growing, the combined interests that two people have in building a life for themselves can change things exponentially.  

Planning for your family's future is an important step in any marriage. Call a New York Estate Planning Attorney today and begin building a future for your family. A New York Estate Planning Attorney can help you make the right decisions for the ones you love.

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In late 2010, President Obama signed what was called The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 or the Tax Act of 2010. This new Act mostly affects the wealthy and how they go about with their estates, says a New York Estate Planning Lawyer. The tax rules were made to give inheritors more money without being taxed at a higher level. The wealthy were excited over the new rules, as they would only be taxed at the 35% rate with sums up to $5 million dollars for singles and up to $10 million for couples.
Exemptions for gift taxes set the limit up to $5 million dollars as well. That means when planning, each person is allowed up to $5 million dollars, according to a New York Estate Planning Lawyer. The same goes to charities and foundations that are given money. They can receive up to $5 million dollars without having to pay taxes on the said amount. This makes gift giving to both individuals and organizations even easier since the tax burden won’t rely on them in the end.
Even though the Tax Act of 2010 expires at the end of 2012, many people will benefit from the new, higher limits that were set. Less taxes will be paid by the wealthy when receiving estate benefits in hopes that instead of giving it to the government, they will put it in to the economy and give it a boost. The New York Estate Planning Lawyer also said the President may decide to extend these rules at the end of 2012 if the economy has not significantly improved.
A New York Estate Planning Attorney can help guide you through the process of diving out an estate. They can be consulted in any financial or property matter that arises. A New York Estate Planning Attorney is trained in all matters related to inheritances and financial transfers.

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