In 2010 when a person died, there would have been no estate tax owed, according to a New York Probate Lawyer. He added that in 2010 the estate tax had been repealed.
In 2011, estate taxes will be reinstated but a high amount of $5 million will be set. In the past, two spouses could individually file their own exemptions, which brought this number up to $10 million. The catch was they had to use caution with the way they labeled assets and had “to have bypass trusted drafted by estate planning attorneys”.
Trust preparation costs as much as $5,000 to $10,000. President Obama’s new tax law aims to create decent tax breaks for married couples because spouses can use leftover portions of a deceased spouse’s estate tax on their own exemptions with no trust requirements. This means a taxable estate of $3.5 million that is left behind could be added as part of the $5 million exemption for a later date or time. Families in Manhattan a Queens qualify for these advantages.
A New York Probate Lawyer calls this new tax law a great “portable” feature for estate money and preserving taxes. The only downfall according to some is the fact that the law was only signed for 2011 and 2012. Still, most agree the new law will provide great benefits to most people in the higher tax brackets and will save a lot of money on the potentially expensive trusts they will not have to create during this time.
Understanding tax laws and what they mean for certain income levels is very important when planning for your future. New York Estate Planning Attorneys are here to help explain what these laws mean in your specific situation. New York Estate Planning Attorneys will help you and your loved ones make the best possible estate planning decisions.The law offices of Stephen Bilkis & Associates has caring New York Probate Lawyers that can help you plan your estate. Our New York Probate Lawyers can help you probate an estate, write a will or set up a trust. We have convenient offices in New York City, Brooklyn, Queens, Bronx, Suffolk and Nassau County. We want to help you through what may be a difficult time with as little problems as possible and offer a free consultation at 1-800-NYNY-LAW (1-800-696-9529). Call us today to take advantage of this free consultation and speak to a New York Probate Lawyer from our firm.