No one usually likes to think about the end of their life, let alone plan for it. However, this is very important for a person to do, as it allows them to have a plan for what happens to their assets when their life is over. Assets that are gathered over a lifetime and have meaning should be protected. This can be accomplished with the assistance of an experienced New York estate planning attorney.
Can a High Net Worth Minimize Estate Taxes?
It is important to know that estate plans are taxed. Wealth transfer taxes can include estate taxes, generation-skipping taxes, and gift taxes. The federal tax that is imposed on the plan is 40% of what they are measuring with up to $5.6 million as tax-exempt. This means that the first $5.6 million is exempt from taxes and then there is a 40% tax on the estate afterward. The gift tax and the estate tax both abide by this rule. Generation-skipping transfer taxes do not begin until the assets or property is given to a child or great-grandchild.
Planning for Incapacitation
It is an unfortunate circumstance of life that many people become unable to care for themselves when they grow older. When a person is incapacitated, they may no longer be able to manage their work, finances, personal affairs, and more. It is important that this is planned for instead of being unprepared in the event that you find yourself in this situation.
There are different ways one can plan for possible incapacitation. This can include appointing a Durable Power of Attorney to manage the assets and a Healthcare Power of Attorney to make medical decisions. A will can also be created to determine if the individual wants to receive life or death treatment. A guardianship can also be created for children under the age of 18.
Can I Avoid Probate?
When people have a high net worth, it can benefit them to have a living trust. Since this trust is not in their own name, it is possible for it to avoid going through the process of probate. A revocable trust can also be created. This allows an individual to amend or revoke the trust at any time.
Contact our Firm
If you or a loved one needs assistance creating an estate plan and wish to speak with an experienced attorney, contact the Law Office of Andres D. Gil, PLLC today.