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.
As New Yorkers prepare an estate plan to divide their assets after their death and loved ones of a person who recently died set about to move forward with estate administration, the inheritance tax (also known as the estate tax) is an unavoidable concern. Fortunately, for people who are estate planning, there are strategies to mitigate its impact. After the testator has died, those who have inherited the assets should be cognizant of what the new limits are based on changes implemented by the Trump Administration. As part of that, the Internal Revenue Service has released the estate tax and gift tax limits for 2019. As 2018 winds down, everyone should be aware of these and how they are affected by it.
Family situations in New York can come in many shapes and sizes. Most are not neat, simple cases in which there are parents and marital children. There are divorces, remarriages, children with different parents, stepchildren, adopted children and more. While this is often handled deftly by the families, it can be a complicated circumstance when a parent dies and their estate is set to be divided and distributed to heirs. Understanding how a non-marital child will be factored in when the inheritance and personal property of the parent is doled out is critical to avoid conflict.
In New York State, the death of a loved one can be a difficult time for the family members left behind. The executor of the will, the status of the heirs and how probate administration will be handled are all issues that must be asked even in a time of sorrow. One part of the process that might not be clear is how the decedent's domicile factors in with the estate proceeding. Knowing about decedent domicile is critical to a smooth process when settling the person's affairs after death.
The responsibilities of a fiduciary in New York should be taken seriously after a person's death. Estate administration has certain requirements based on the estate plan and the fiduciary plays a critical role. There are numerous terms that could be applicable, depending on the circumstances. Understanding these and the duties and responsibilities of the fiduciary can be complicated. A lawyer can be of assistance with estate administration.
In New York, when a person dies, it does not necessarily mean that the surviving spouse is automatically able to receive the proceeds of his or her estate. This is particularly important if the person died intestate. Not having an estate plan could lead to litigation among the heirs. Of course, it is advisable for everyone to formulate a comprehensive estate plan so there is no confusion at the time of death, but if there is not one, it is important to know when a spouse can be disqualified under state law.
Not everyone in New York takes the necessary steps to have an estate plan. There can be many reasons for this, but, regardless of why it happened, it is important for the family left behind to know how the law handles intestacy. After the person has died, there will be an estate administration proceeding. Knowing the basics of this is imperative as the family deals with the decedent's estate.
A common topic for dispute of an estate plan in New York is whether the document is valid or not because of the way it was formulated. Not everyone has the time to take the necessary steps to have a conventionally valid will. However, those who do not can still create an estate plan that will address their property after they are gone. Knowing how to create a will without going through the commonly known means is imperative for many people.
The death of a loved one is a difficult situation to deal with for people throughout New York. One issue that many do not want to think about is how the decedent's assets will be handled after they have died. But, the distribution of assets and probate administration is an important part of wrapping up the person's affairs. Understanding probate is a key part of that and should not be ignored.
For people in New York who have not yet moved forward with estate planning or have a loved one who died without a will, it is important to know what will happen. For those with significant assets or limited assets, it is wise to think about a basic estate plan, regardless of the circumstances. If there was no will, the heirs should have legal help as well.