Rochester Estate Planning Law Blog

Recent posts have discussed how the changes to the tax laws under the Trump Administration could affect people who are seeking to avoid the inheritance tax and make sure their wealth protection strategies stand the test of time. A concern for many has been whether the Internal Revenue Service will seek to get some of the lost taxes back when the changes expire in 2025. New information indicates that the IRS has no intention to do that and it could be important as to how people go about preparing their estate plans.

For those with significant wealth, the idea of simply gifting assets to heirs while there is a temporary reprieve from onerous tax implications for doing so might have seemed like a short-term solution that would later need to be recovered. However, a proposal from the IRS says that the doubling of the individual limit to $11.2 million and the limit to a married couple to $22.4 million will not result in a so-called "clawback" at its 2025 expiration.

As more of our lives go online, it’s becoming increasingly important to have a plan for what happens to your digital identity.

Many New York residents are finding themselves at a loss when it comes to loved ones’ online presence. Increasingly, family members lose access to important online accounts. Avoid that by creating a plan for digital possessions. Here’s how to plan for digital assets:

Estate planning can be a difficult process for New Yorkers when they are determining strategies to pass along their assets. What can make this even more complicated is when the assets go beyond the basic and tangible to that which is open to desire and interpretation. Specifically, that will include items like art, jewelry and goods that might not appear to be worth much when on the market, but have sentimental value to prospective heirs and can be subject to an intense dispute. Having assistance from a qualified law firm that specializes in complicated estate planning is a must in any situation, but is of great importance with these cases.

There are certain steps to take with properties that are hard to quantify. Understanding what the property is worth is a first step. This is truly independent of whether the testator would like to pass it to an heir or wants it sold. The market value should be known before anything else. When value is attached to an item, it puts a number to it so those involved understand what they are dealing with. This is critical with art and jewelry. The value of such items can vary depending on its market and how in demand it is. This should be known.

New Yorkers who do not take the necessary steps to craft a well-designed estate plan will inevitably regret it. While these documents are often considered to be essential only to those who have significant assets, everyone can use estate planning strategies to avoid family disputes and ensure that the person's property, savings and more will go where they want after they have passed. In most cases, this is not as complicated as it sounds, but there are certain aspects that should be considered beforehand.

With the changes to the tax laws, the impact on those who have major assets is not as hefty as it once was as the estate tax threshold has been increased to $11.18 million. This is one of the issues that people should know about. Making a will details how the assets will be distributed after death. There will be an executor named and this person will do as the will instructs them. For those who have minor children, a guardianship can be used for their care. People should remember that dying intestate - without a will - can take the decisions out of the person's hands and leave it to the state to determine how to distribute the assets.