Who Pays the Bills? Understanding Estate Expenses in New York
In New York State, the expenses of the estate during the administration process are typically paid from the estate's assets, not from the personal funds of the executor or administrator. These expenses include things like:
Funeral expenses – Often paid early in the process to settle the decedent's...
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Difference in Estate Tax Exemption between U.S. Citizens and Foreigners
Most people - whether they need it or not - ask us about minimizing estate taxes.
Estate tax for US resident: Estate tax is the taxation of property held by an individual at the time of their death. Estate tax is not always owed, instead it is only imposed if an...
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Estate Planning: The Implications of the New Biden Presidency
In the lead up to the Georgia Senate runoff elections, a question on everyone's mind was how the estate and income tax legislation would be affected if the Democrats won a majority. Now that senators Jon Ossoff and Raphael Warnock have been cemented into their positions, change is sure to come. Exactly how much change is still uncertain.
The Biden...
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Joint Bank Accounts in New York: A Confusion of Law and Intent
Many individuals who open a joint bank account in New York are completely unaware of the legal and tax implications associated with these types of accounts. This is quite ironic, given that joint accounts are often opened to simplify inheritance matters, not to complicate them.
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Planning for a Childless Couple
There are different motivations for living child-free. Some couples focus on careers, travel or hobbies. Others see children as a burdensome financial obligation. Yet others are unable to have children. Regardless of reasons, planning for a childless couple may be somewhat different than for a couple with children (no need for guardians for...
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Will the 1031 “Like-Kind” Exchange be now eliminated?
Section 1031 of the tax code allows those who sell a real estate property and invest the proceeds in a different real estate property to postpone capital gains taxes. It is a great strategy for investors: with a 1031 exchange, after a sale of a property you can use 100% of the proceeds...
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Trump just proposed to eliminate the Estate Tax completely. Will it affect you?
Currently, the gift and estate tax threshold is $5.5MM per person ($11MM per married couple). Assets passing at death that are above that threshold are taxed at 40%. Gifts made during lifetime that are above this threshold are also taxed at 40%. Less than 1 out of 550 of people who die have taxable estates. Furthermore,...
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Buy / Sell Agreements
What are these agreements? These are absolutely crucial both to start ups and to existing businesses where there is more than one owner involved. This document outlines the relationship between the owners, assigns roles and responsibilities, shows the ownership percentage of the business and outlines what happens when the owners need to part ways....
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How to monetize an investment real estate property while minimizing taxes
There are many reasons why one would want to withdraw money from an investment real estate. Some of these reasons include: no longer willing to manage the property, no longer needing the income tax benefit, desiring liquidity or desiring diversification in one’s investments. 1. The easiest way of monetizing a real estate property...
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The Biggest Focus of Estate Planning is Now Basis (or Why You Should Not Make a Simple Gift of Assets to Your Children).
Basis is the cost of purchasing the asset. For real estate, it is the cost, plus any closing costs and improvements made later. Basis is important, because upon the sale of the property, capital gains liability is calculated based on the difference between the sale price and the basis.Carry Over Basis:...
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