Planning Opportunities

With the new laws, there are a number of planning opportunities. This article will highlight a few of them.

• Save New York Estate Taxes. With the increased federal gift tax exemption, you can save thousands of dollars in NYS estate taxes.
• Long Term Care Planning. With the increased federal gift tax exemption, there is more flexibility in implementing planning that will protect your assets from a nursing home or Medicaid.
• Save Estate Taxes by Gifting. Since we do not know what the laws will be in the future, now is the time to take advantage of the federal gift tax exemption ($5 million), so future growth of those assets avoid estate taxation.
• More Flexibility for Married Couples. With the higher exemption amounts and portability, married couples have more options when it comes to leaving assets for a surviving spouse.

Estate Planning

Since most people (99.6% of us) have estates with less than $5 million and less than $10 million if married, Clients can now focus on what is really important: leaving assets to loved ones in the most protective way. Clients can shift from Wills and Trusts that were drafted to minimize estate taxes to Wills and Trusts that leave assets in a Protective Way, a Safe Way. Trusts can be utilized for family members with special needs, or with marital or creditor problems. The assets in the trust can be used for the family member’s benefit while protecting the assets for them at the same time.

Everyone should review his or her estate plan from time to time to insure that it meets with one’s desires and takes into account the current tax laws. In 2013, you will need to review your estate plan in light of the estate tax laws at that time. An experienced planning attorney can be very helpful in advising you on your options. By the way, if you have not already implemented an estate plan, there is no better time to do so than now.