Many of us labor a lifetime to build up our assets and fight for causes that matter to us. Few things are more fulfilling than the thought of sharing wealth and legacy with our family.
Of course, it’s impossible to plan for every eventuality, but careful planning can mitigate against the two primary risks.
Read moreThe Supreme Court of the United States issued its landmark opinion in the case of Obergefell v. Hodges on Friday, June 26, 2015. The opinion covered a series of consolidated cases in which the petitioners brought suit challenging state bans on same-sex marriage. In an opinion written by Justice Kennedy, the Supreme Court ruled that 1) the Due Process and Equal Protection Clauses of the 14th Amendment require states to issue marriage licenses to same-sex couples and 2) that the 14th Amendment requires states to recognize same-sex marriages that were valid in the state in which they were performed.
With the passage of the New York State Budget for 2014-2015 substantive changes were made to the New York State Transfer Tax System (Estate, Gift & Generation Skipping Transfer Taxes). Under prior law, $1,000,000 was excluded from tax under the New York Exemption. Effective April 1, 2014, the new legislation imposes a tax on a decedent’s entire taxable estate, but allows a credit, known as the “Applicable Credit Amount”, against the tax imposed. For decedent’s dying between April 1, 2014 and March 31, 2015, the New York exemption (called the “Basic Exclusion Amount”) is $2,062,500.
The new State Exclusion Amount is phased in over the next five years and will ultimately, as of January 1, 2019, approximate the Federal Applicable Exclusion Amount. As noted above, the new legislation features a generous credit which essentially eliminates the New York Estate Tax for estates which do not exceed the State Basic Exclusion Amount. However, the Applicable Credit Amount is rapidly phased out for decedents with taxable estates in excess of the new State Basic Exclusion Amount.
Pierro, Connor & Associates – Monday, February 03, 2014
Preparing a Will is a great way to begin any estate plan, but for the reasons expressed below it pays for many to take the plan to the next level and establish a Revocable Living Trust as well.
Every Will must be offered for probate and found to be valid by the local Surrogate’s Court before the named executor can be appointed, the debts of the deceased and expenses of the estate paid and the assets distributed. The length and cost of the probate process varies but is almost always significantly lengthier and more expensive than the administration of a Revocable Living Trust.
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Paul Walker, an actor who starred in popular movies such The Fast and Furious, died tragically in a car accident at the age of 40. Walker was unmarried at the time and had one daughter with former girlfriend Rebecca Soteros. Walker’s entire estate, which has been reported to be about $45 million, is left to his 15 year old daughter Meadow. Walker’s father has filed the will with court and has been appointed executor of his estate. There is some controversy over the fact that Walker requested that his own mother be appointed guardian of Meadow, and not Soteros. There is likely to be a court battle among Walker’s parents, Meadow’s mother, and Walker’s recent girlfriend, Jasmine Pilchard-Gosnell, who was left nothing in his estate plan and was helping to raise Meadow.
Are there lessons to be learned from the Walker estate in planning our own estates?