Suffolk County

Published on: December 22, 2013

Petitioner Seeking Damages from Probate Attorney

by Stephen Bilkis

A New York Probate Lawyer said that, this is a motion to dismiss an amended petition filed in a pending accounting proceeding. The amended petition states two causes of action seeking damages in the amount of $20,000 (less disbursements of up to $3,000) from the movant arising out of his allegedly negligent performance of his duties as an attorney in connection with the settlement of the contested probate of this decedent’s will. There are four petitioners: two are hospitals and were the movant’s clients in the probate contest; the other two petitioners were parties to the settlement as persons interested in the estate but were not the movant’s clients. They are the decedent’s separated wife and the trustee of a pre-residuary trust. The question raised by this motion is the scope of the movant’s liability for negligence to persons with whom he had no privity of contract.

A New York Will Lawyer said the background facts here begin with a 1967 separation agreement between the decedent and his wife (who is, as indicated, one of the four petitioners) in which he undertook to execute a will creating a $325,000 trust to pay her $12,000 a year from income or, if income was insufficient therefor, from principal. After her death the remaining principal and any accumulated income was to be paid to the two hospitals who are co-petitioners. The trustee of this trust is the fourth petitioner.

A New York Will Contest Lawyer said that, in 1968, the decedent executed a will creating a pre-residuary trust which complied with the separation agreement. The residue of his estate was bequeathed to the same two hospitals. In 1972, he executed a new will which contained the same pre-residuary trust, but the residue under this will was bequeathed to his nephew. At this time he also created a substantial inter vivos trust which significantly reduced his testamentary estate. The beneficiary of the inter vivos trust was the said nephew.

Published on: October 2, 2011

Estate Planning in 2011

by Stephen Bilkis

At the end of 2010 congress revamped the estate tax and generation skipping tax legislation. This saw all of the different types of death related taxes being filed with the highest rate of 35%.

At the moment the exemption rates are very generous and this is thought to continue throughout 2012. However, in 2013 it’s likely that things will be changed. That’s why many New York Probate Lawyers are starting to tell their clients about the possibility of gifting now.

The portability of the gift tax exemption means that a married couple actually has double the amount of exemption. The $5 million lifetime gift tax exemption for individuals is $10 million for a married couple. In 2010 the gift exemption was only $1 million.

Published on: September 8, 2011

New Tax Law Could Benefit the Rich

by Stephen Bilkis

In spite of the stone-throwing and partisan pandering of last December’s revamp of US tax law, a New York Estate Planning Lawyer claims that there are a few hidden gems for families willing to dig through the rubble.

In particular, the New York Probate Lawyer singled out the new gift tax laws as a boon for those in high tax brackets.

The gift-tax exemption, the much maligned cap on individual giving, which has long been set at what some would consider a paltry one million dollars, has been raised dramatically for the next two years to the princely sum of five million dollars for individuals- or a whopping ten million dollars for individuals. Accountants in Nassau and Suffolk Counties are studying the new law and trying to find ways to help their clients.

Published on: August 21, 2011

Tax Law Expires Leaving Elderly at Risk

by Stephen Bilkis

Many senior citizens got an unpleasant surprise this February. Pensioners and seniors who rely on federal benefits to make ends meet were hit with the harsh new reality of the federal financial landscape when they discovered that their social security checks had been decreased. Although some were warned about the change in a letter that came with their check, many were left guessing.

We spoke with a New York City Estate Planning Lawyer, who explained the recent change in benefits. The reduction in the payout for senior citizens was an indirect result of the new tax relief act, which was enacted in tax year 2010. The new tax relief act cuts social security taxes for those still in the workforce, which federal economists hoped would help stimulate the economy by giving those who are still contributing to the marketplace more expendable income.

In order to make room for the new cuts, which according to the New York Estate Planning Lawyer amount to approximately a two percent drop in collected income by the IRS, the federal income taxes for those who are not working were raised, effectively lowering the payout for retirees and others who depend on social security benefits. Lawyers in Nassau and Suffolk Counties must be aware of these and any other changes that come down and effect Estate Administration.