Having an estate plan in place can be an enormous relief. Knowing what will happen and when it will occur can bring peace of mind that you never imagined possible. One of the major issues with an estate plan are the tax consequences. You can pass on your assets and property in two ways: one leaves a huge tax burden for your children and the other doesn’t.
It is certainly worth looking into with a legal representative to ensure that your property is passed along in the right way when you are no longer here.
Federal law allows for a tax exemption from estate taxes for estates up to $5 million. However, the state of New York still has the authority to tax estates that are over $1 million. Believe it or not, there is a good chance that your estate, with all assets and property listed, will meet this amount.
Being able to show you how to get your assets in order and to ensure that your children, or non-profits that you want to gift, are treated in the best way possible is the goal that you and your legal professional will have.
Things like having part of your assets gifted to your children before you are gone is just one idea that may be possible. Another is deeding your property to them and having them act as the owner of this property is another idea that you may want to consider.
Calling on an experienced attorney at this stage in your life is a good decision and one that will help you with end-of-life decisions now. Your children will need time to grieve your loss, not get involved in the estate division process.