For New Yorkers who are thinking about strategies for their estate plan, a factor that is often overlooked is what will happen if they become incapacitated or ill. This should be considered as part of the process. An example of the importance of this came to light with the musician Tom Petty and his estate plan that allowed for him to be removed from life support as per his wishes. Those who are concerned about family disputes, whether a power of attorney is necessary, how a healthy proxy works and more should know about all their options that can fit in with their desires.
The secret to avoiding probate
There is one sure way to avoid seeing your life assets pass through probate - with all the expense and delay and tax liabilities that go with probate.
Collectors' tax implications can be lessened by tax changes
For New York residents who are taking steps to prepare for the future with an estate plan, having collectibles and striving to keep them in the family without burdening loved ones with onerous tax implications is one of the main considerations. Understanding the estate tax and how it can lead to complicated estate planning is imperative when organizing the documents. Having comprehensive strategies to shield loved ones is an integral part of a sound plan. One issue that is currently at the forefront is the president's proposed tax changes and how they might affect people who have valuable art collections.
Self-made people must make certain an estate plan is current
New Yorkers who have created their own wealth and independence through entrepreneurship are often guilty of failing to keep their estate planning documents current. Much like creating a business, drafting estate planning documents is often viewed in the now with the future a consideration, but something to think about later. In some instances, later is pushed forward and pushed forward until the estate plan is hopelessly out of date. People who are vigilant about their estate plan have a better chance of passing on their assets to heirs and avoiding family disputes.
Estate planning and aging alone
Many of the cues that get people thinking about estate planning are family related. New marriages, becoming a grandparent, passing along a family business or protecting family heirlooms can all be the impetus for starting an estate plan. A new trend may require a change in the way people consider legacy planning. A growing percentage of Americans between the ages of 45 and 65, prime years to complete an estate plan, are living alone.
Drafting estate planning documents with the estate tax in mind
New Yorkers who are crafting an estate plan will want to ensure that they create a document that prepares for every eventuality. One area that is constantly and inevitably changing is the political situation. Having a well-rounded estate plan should account for most eventualities when it comes to changes in the law. With a republican president and a congress controlled by republicans, the estate tax has again come to the forefront with the attempts to repeal it. This must be thought about beforehand.
Estate taxes are confusing, even to the IRS
The Treasury Inspector General for Tax Administration recently issued a report concerning how estate and gift tax returns are being processed. The report highlights substantial discrepancies in how the IRS handled the examination process. One of the issues covered in the report is that the document used by the IRS to classify gift and estate tax returns in difficult to read and follow. As anyone who has ever read an IRS form can attest, simplicity and clarity are not the driving force behind creating tax documents.
