New York Probate and Estate Administration Blog

The Estate Planning community is in a buzz over a new tax law approved by president Obama in late December of 2010. The Tax Relief, Unemployment Reauthorization, and Job Creation Act of 2010, or TRA 2010 for short, is a “game-changer,” one New York Estate Planning Lawyer is saying. In the past, the entire estate planning business revolved around estate taxes, and how those taxes were applied. In light of the new law, these taxes represent a much smaller hurdle to the industry at large. Lawyers in The Bronx and Staten Island are very aware that laws can change at any time.

If you are a New York Estate Planning Lawyer, and are considering giving your congressional representative a thank-you call, you are certainly not alone; but I would caution you to first read the fine print of the law. While no law is ever completely permanent, this law comes with an expiration date. After two years, the law is slated for review. If it is not reviewed and reinstated at that point, then estate tax law will effectively be reset to the levels present before the law was enacted.

On the other side of the equation, one New York Estate Planning Lawyer claims that this new law sounds the death knell for the Estate Tax in general. He contends that under the New TRA law, the value of collectible Estate Taxes is now so small as to be almost negligible, and would be a waste of IRS manpower to even bother to collect. Only time will tell whether the new law will act as a temporary tax relief mechanism, or as a stepping stone to Estate Tax repeal.

Don’t wait until it’s too late to make decisions about your financial legacy. A New York Estate Planning Attorney is one call away, and can help bring peace of mind to you and your loved ones that they will be taken care of, and that your wishes will be carried out as you intend.

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Every good New York Estate Planning Lawyer knows that estate panning is about preparing for the unthinkable. They frequently work with people for whom the prognosis is poor, stepping in to facilitate estate planning, long-term care planning, or to establish and administrate the estate after the death of a loved one.

Unfortunately, even the most seasoned New York Estate Planning Lawyer cannot plan for the unexpected when the source of confusion is the federal government, as has been the case in recent years. Estate planning lawyers rely heavily on the ability to map out the future for the people they work with- to meet with a client, and give them a picture of what the taxation structure will be like for the next five or ten years. Attorneys in Queens and New York are aware of any changes which take place in these areas.

The estate planning community has been in a state of flux over the past year. Because Congress failed to make a prompt decision regarding estate tax legislation, no estate taxes were imposed by the internal revenue service for tax year 2010. Nearing the end of the congressional year, congress passed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which contains significant cuts and changes to the current estate tax laws.

At least one New York Estate Planning Lawyer questions the usefulness of such a change. While at face value, raising the estate tax cap should be a good thing, the problem is in the planning. Because the law has a two year cap, and then will have to be reevaluated, it is impossible for tax lawyers to effectively advise their clients on a successful long-term strategy. To give a comparison, the tax laws which are being replaced had been in effect for almost 10 years.

Continue reading " Thoughts on the New Estate Tax " »

Think that Canadians are exempt from paying estate tax? One New York Estate Planning Lawyer says you could be wrong. Even Canadians who have never so much has set foot on US soil are on the hook for estate tax in many situations, if they don’t take the right precautions in advance.
According to United States tax laws, the estate tax can be levied against any person, regardless of nationality, who owns “US situs property”. This ambiguous term can be applied on a number of different levels, but broadly means anything that exists (either physically, or in some cases hypothetically), within the borders of the United States. A New York Estate Planning Lawyer gave us some examples of what might qualify for the estate tax. An obvious example would be either a house or a tract of land. Less obvious candidates for this tax would be things like bonds purchased from the US government, or stocks in a company headquartered in the United States. Non US residents who own such property can be subjected to the estate tax at the same rate as a US citizen would be. Lawyers in Manhattan and Nassau Count will be glad to counsel their Canadian clients.
For this reason, it’s critically important that as a Canadian citizen you carefully evaluate your tax exposure well in advance. Because ties between the US and Canada are so close, it can be very difficult to sort out your assets, and make an accurate determination, so consider calling a New York Estate Planning Lawyer, who can help walk you through the process.
A New York Estate Planning Attorney can show you how to shift your tax liabilities over to a Canada-based holding company, which will help exempt your family from US tax liability.

Continue reading " Canadians on the Hook for US Estate Tax " »

There is no inheritance tax for 2010, but that will not benefit most of us who plan to live to 2011 and beyond. The inheritance tax may or may not return in some form in 2011 – Congress hasn’t decided yet – but luckily, the gift rules remain pretty much the same, a New York Estate Lawyer reports.
Gifts of up to $13,000 a year per person to any number of people can be passed on without any taxes whatsoever. Married couples who file jointly can double the amount to $26,000. A Gift Tax Return has to be filed for any gifts over that amount.
That doesn’t mean a gift tax is involved. One can grant a million dollars in gifts, above and beyond the yearly $13,000 before the gift tax. Most people will never have to worry about that. There are a number of other exclusions and provisions regarding gifts and estates, which means reading up on IRS regulations is very important to make the most of your money, a New York Estate Lawyer notes. Lawyers in Brooklyn and Long Island are well versed in these new rules.
Gifts are not the only way to avoid paying extra in taxes. A 529 Qualified State Tuition Plan for educating a child can allow gifting a certain amount without triggering the gift tax. A Roth IRA for the kids can also be a good way to give money without triggering tax. Funding someone else’s benefits, up to the gift limit, can also be a way to pass money along, a New York Estate Lawyer reports.
Your money should be yours to give out as you like. A New York Estate Attorney can help you make that a reality. The law can be complicated, and a professional like a New York Estate Attorney can make it a great deal easier to deal with.

Continue reading " Tax Gift Rules Can Help Estate Planning " »

With the tax season upon Americans, it is time to figure out your gross income and taxable income and home you do not have to pay the IRS any taxes. Let your iPhone help you as you work through your w-2s. There are several iPhone apps that can make the process easier, a New York Estate Lawyer said.

Try the app created by the IRS they. The IRS2GO is where you can review your tax refund. You can also look up tax tips if you have any questions about filing or procedures. Filing taxes does not always have to be tricky, commented a New York Probate Lawyer. The app is free to use.

H&R Block also has an iPhone app that will help you through the entire tax process. Tax Central was available last year but has recently been updated to help you with all of your questions. The Tax Central app is the place to go if you have any tax questions. You can also check your tax liability, a New York Estate Planning Lawyer mentioned. The H&R Block app is free to download.

H&R Block is not the only company that has a tax app. The creator of TurboTax software has created the TaxCaster Mobile app for the iPhone. The TaxCaster Mobile app shows you how much you will get back or how much your will owe depending on your tax situation. It also helps you choose the best TurboTax software for your tax needs, conveyed a New York Estate Planning Lawyer. The app is free to download.

If you have tax issues with your estate, let a New York Probate Attorney help you get everything figured out. Let a New York Estate Planning Attorney walk you through the ordeal.

Continue reading " Let your iPhone help you have a smoother tax season, a New York Estate Planning Lawyer declares " »