Many Reviewing Estate Planning, Post-Fiscal Cliff
White Plains, NY (Law Firm Newswire) March 15, 2013 – Estate planning updates are needed in the wake of the fiscal cliff crisis.
Now that Congress has moved forward to avoid what has commonly been referred to as the “Fiscal Cliff,” the federal estate tax has been fixed at $5.25 million for 2013 per individual; the tax rate is 40 percent for the amounts that exceed that exemption. When an individual dies with less than $5.25 million (including real estate, other assets and financial holdings such as checking accounts, and life insurance), no federal estate tax will be due.
While estates which fall below $5.25 million have a federal exemption, estate tax for New York State remains at $1 million; an individual who dies as a New York resident leaving an estate above $1 million ($2 million for couples; $10 million at the federal level) may be taxed by the state for as much as 16 percent, due within a nine-month period after the death.
New York estate planning attorneys may suggest to their clients who have holdings above or near $1 million to work with an elder law or estate planning attorney to explore what estate planning methods will protect assets for beneficiaries and minimize estate taxes. The most common is trust planning; trusts can be modified to fit the needs of each family and each individual’s estate needs, including establishing gift giving.
But, say estate planning lawyers, fiscally astute estate planning encompasses far more than just drafting a will; estate planning may include everything from establishing a trust for dependents, to establishing long-term care insurance, to designating a health care proxy, to minimizing estate taxes and ensuring that assets are distributed according to last wishes.
For individuals with assets below the $1 million mark, estate planning can also be in their best interest to ensure plans are in place for the future, such as establishing a living will, designating the appropriate person with power of attorney in the event of incapacitation, and establishing or enhancing a retirement fund.
About Littman Krooks
Littman Krooks LLP provides sophisticated legal advice and the high level of expertise ordinarily associated with large law firms along with the personal attention and responsiveness of smaller firms. These ingredients, which are the cornerstone of effective representation and necessary to a successful lawyer/client relationship, have become the foundation of the firm’s success.
Littman Krooks LLP offers legal services in several areas of law, including elder law, estate planning, special needs planning, special education advocacy, and corporate and securities. Their offices are located at 399 Knollwood Road, White Plains, New York; 655 Third Avenue, New York, New York; and 300 Westage Business Center Drive, Fishkill, New York. For more information about Littman Krooks LLP, visit the website at: www.littmankrooks.com.
New York Contact:
Maria M. Brill
Littman Krooks LLP
New York City Office
655 Third Avenue, 20th Floor
New York, New York 10017
(212) 490-2020 Phone
399 Knollwood Road
White Plains, New York 10603
(914) 684-2100 Phone
300 Westage Business Center Drive, Suite 400
Fishkill, NY 12524
(845) 896-1106 Phone
View Larger Map
- Is Long-Term Care Insurance Worth the Cost?
As the cost of a nursing home stay has increased, so has the cost of long-term care insurance, causing many seniors to reassess the value of such insurance. Many people’s financial planning for retirement includes a combination of Social Security retirement benefits, other sources of income such as a pension, and savings and investments. On [...]
- Students Loans Affecting Retirees
Unmanageable student loan debt is a common problem, with nearly one in 10 borrowers defaulting within two years, according to the U.S. Department of Education. Now student loan debt is increasingly interfering with the retirement plans of older adults as well. According to the New York Times, people age 60 and older now comprise the [...]
- NY Connects: Long Term Care
Choosing the right long term care services and supports can be difficult. If you are looking for long term care in New York State, you should be aware of NY Connects: Choices for Long Term Care. This is a free, state-funded service that can provide you with personalized information over the telephone about options such [...]
See other news sources publishing this article. BETA | Tags: new york elder law, new york elder law attorney, new york estate planning, new york estate planning lawyer, new york special needs, new york special needs attorney, new york special needs lawyer