In many ways, the tax laws that pertain to postmortem asset transfers are favorable to inheritors. You do not have to report an inheritance on your income tax returns, and if you inherit appreciated assets, you get a step-up in basis. For capital gains purposes, you would not be responsible for appreciation that accumulated during the life of the decedent.There is the end of the tax story for most people, but high net worth individuals have some other taxes that can have a very significant … [Read more...] about Can You Give Gifts to Avoid Estate Taxes?
Estate Planning
Life Insurance for Succession Planning and Inheritance Balancing
As a family business owner, you may have concerns when you are devising your estate plan. For example, there is the matter of inheritance balancing.The best way to describe inheritance balancing would be by way of example. Let’s say that you have a daughter who has always helped you run your business, and you have a son who embarked on a different career path. You are going to give your daughter the business, and it is one of your most valuable assets.Your daughter will continue to run … [Read more...] about Life Insurance for Succession Planning and Inheritance Balancing
What Is the Purpose of Probate?
If you start to look into the subject of estate planning, you will definitely run across the word “probate” quite a bit. Here in New York, probate matters are handled by the Surrogate’s Court. In this post, we will look at the function of probate as it applies to elder law and estate planning matters.Proving of a Last WillOne of the major misconceptions that people harbor about estate planning is the notion that a last will is the simplest and most efficient estate planning device to … [Read more...] about What Is the Purpose of Probate?
Income Tax Basis
Income tax basis is important in tax and estate planning. This article examines the concept of income tax basis, how one acquires a basis, how it gets adjusted, etc. The article then examines how the basis is subtracted from the sale price to determine gain or loss. The next article in the series will examine how income tax basis is an important factor in estate planning.Income Tax Basis … [Read more...] about Income Tax Basis
Use Trust Protectors for Added Protection and Flexibility
Trust Protectors are increasingly popular in trusts. This article examines how Trust Protectors can add flexibility to your trust. This flexibility helps achieve your goals and can protect the beneficiaries and Trustee.Use Trust Protectors for Added Protection and Flexibility … [Read more...] about Use Trust Protectors for Added Protection and Flexibility
How Will You Obtain the Care You Need?
What’s the right direction for you in planning for the help you might need in the future? Seven in ten of us will need long-term care at some point in our lives. Here are possible paths for covering the assistance you may need.How Will You Obtain the Care You Need? … [Read more...] about How Will You Obtain the Care You Need?
Income Tax Basis in Estate Planning
Income tax basis is important in estate planning. This article examines what happens to an asset’s basis when it is gifted. It then examines what happens to the basis of an asset when someone dies with the asset and then bequeaths it to someone. Many people find it surprising that these are treated differently. Income tax basis is an important factor in considering estate planning strategies.Income Tax Basis in Estate Planning … [Read more...] about Income Tax Basis in Estate Planning
Which Type of Life Insurance Is Right for Me?
Although every estate plan is unique, there are some components that are commonly found in the average estate plan. Life insurance is one of those. Because there are several types of life insurance, a life insurance policy can be used in a variety of ways within an estate plan. To help you decide which type is right for you, the Pittsford estate planning attorneys at the Law Office of Michael Robinson, P.C. explain the most common types of life insurance policies.Life Insurance … [Read more...] about Which Type of Life Insurance Is Right for Me?
The Little Things May be the Most Important
Your estate may be worth a little or a lot at your death. The items which your beneficiaries might cherish could be the sentimental ones. Read on to learn how your will or trust could provide the ability for you to keep a list and update it without needing to see your lawyer every time you change your mind on an item.The Little Things May be the Most Important … [Read more...] about The Little Things May be the Most Important
What Is the New York Estate Tax Cliff?
Financial success is a very good thing, but when it comes to estate planning, it presents a potential challenge. There are estate taxes that can have a major impact on your legacy if you are exposed. One of them is the federal estate tax, and it carries a 40 percent maximum rate.Most families do not have to contend with this tax, because there is a credit or exclusion that allows you to transfer a certain amount free of taxation. In 2019, the exact amount of federal estate tax exclusion is … [Read more...] about What Is the New York Estate Tax Cliff?
