There is no specific age when you should reach out to an elder law attorney, but it’s ideal to start planning your affairs once you reach 60 years. At Schlessel Law, we generally advise seeking the services of an elder law attorney before you even need one. To maximize the benefits of retaining an elder law attorney, it’s important to start the planning process as soon as possible. Despite the practice’s name, elder law attorneys offer a wide range of services that can be helpful to all ages. Elder law attorneys are typically involved in estate and retirement planning, Medicaid planning, and guardianship cases, among others. Estate and Retirement PlanningWhen you think of an elder law attorney, the first thing that comes to mind is estate planning. Elder law attorneys can help in making sure your assets are protected for the benefit of you and your loved ones’. An elder law attorney can also help ensure that your preferred beneficiaries would receive the parts of your estate you want them to get. You can also assign the preferred executor of your estate to avoid the time-consuming probate process. Elder law attorneys can also help establish trusts that would make it possible for your estate to avoid estate taxes wherever applicable. As part of estate planning, elder law attorneys can also help in planning for your retirement. Some elder law attorneys also offer business succession planning services which help make sure that any businesses you’ve established will pass to the right hands. Healthcare and MedicaidAs we age, the risk of developing life-threatening medical conditions increases. An elder law attorney can help make sure that your medical needs will be taken care of when the time comes that you cannot make decisions about your care. For this reason, it is essential to consult with an elder law attorney as soon as possible. The older we get, the higher the risk of losing the mental capacity to decide on our affairs due to health conditions. With the help of an elder law attorney, you can also set up a health proxy who would make decisions about your medical care on your behalf. Elder law attorneys can assure clients that their preferences and best interests will be upheld if they cannot make decisions by themselves. This can happen when a client is in dire need of medical care or is incapacitated. Without a prior appointed health proxy, your family might be forced to make tough decisions about your medical care, not knowing what your preference would be in the situation. Should there be a disagreement stemming from a difference of opinion, the court may be forced to intervene. If you need long-term care, an elder law attorney can help ensure that your assets are protected while ensuring you can avail of government assistance like Medicaid. Long-term care can be expensive and a drain on your finances. An experienced Medicaid planning attorney can help you avoid penalties on your ability to avail government aid and still retain some of your assets. GuardianshipParents with minor children want to make sure that their kids are well taken care of. Conversations about what would happen to our loved ones when we pass away are never easy but consulting with an elder law attorney may help. An elder law attorney can help reassure parents that someone they trust will look after their children through a guardianship process. Schlessel Law caters to clients in need of elder law services regardless of age. Seth Schlessel, our founding attorney, has dedicated his career to helping people plan their future. We take a careful look at your financial situation and provide you with a plan that best suits your needs. Our elder law attorneys are available for a consultation and can let you know more about the services we provide. To schedule an appointment, fill out our online form or call us today. Via https://www.schlessellaw.com/at-what-age-should-a-person-contact-an-elder-law-attorney/
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Today, many Americans are understandably concerned with the legacy they will leave their loved ones when they pass away. For people with businesses or for those who have accumulated a lot of wealth, the estate or death tax can be a significant burden. However, as of 2022, the federal estate tax exemption has increased to $12.06 million. If your estate is valued less than the 2022 tax exemption, this means that your estate would not be subject to estate tax. Estate tax laws and your available options to avoid them can vary based on your state of residence. To reduce any tax consequences you may have and to ensure that you are abiding by the law, it is important to consult with an experienced Long Island estate planning attorney. What Is the Estate or Death Tax? How Is It Different From the Inheritance Tax?The IRS defines estate tax as a tax on your right to transfer property at your death. The value of the tax depends on the total fair market value of your assets at the time of death, not necessarily how much was paid to acquire those assets. An inheritance tax is collected from the person who is inheriting the assets. The heir would have to pay a specified amount depending on the value of the assets they inherited. The inheritance tax differs from the estate tax in that the tax is collected after the estate has been divided amongst the heirs. An estate tax is calculated upon the collective value of the assets in the estate. The state of New York does not impose the collection of inheritance tax. However, the state still has an estate tax on estates with a valuation of above $6.11 million (2022). You are considered exempt from the estate tax if the value of your assets is less than that amount. How can you avoid the estate tax?The prospect of paying taxes on your estate and potentially diminishing the value your heirs will receive is not exciting. Still, some strategies and options you can explore would allow you to reduce the amount of estate tax you will have to pay, or completely avoid paying the estate tax. Gift assets to your loved onesGifting your assets is a good way to reduce the value of your estate to below the exemption threshold. In New York, you can gift up to $16,000 per individual annually. Any more than that and your gift would be subject to taxes. However, there is no limit to how many people you can gift assets to. Donate to charityIt’s possible to avoid estate taxes by donating assets to a charity. Charitable Lead Trusts (CLTs) and Charitable Remainder Trusts (CRTs) are two ways. A CLT allows you to put assets into a trust, some of which would be donated to a tax-exempt charity. Through this, you can lower the value of your estate and also receive a tax break due to your charitable donation. After a predetermined time, or at the event of your passing, your beneficiaries can receive the rest of the assets left in the trust. A CRT, on the other hand, is an irrevocable trust that can contain stocks or assets that appreciate in value. You can continue to collect the earnings from the assets in a CRT. When you pass away, any investment income goes to charity. This allows you to reduce your estate taxes while also receiving a tax deduction. Create an irrevocable living trust for life insuranceIncluding a life insurance policy as part of your estate plan is a good idea to ensure that your loved ones will not be in a difficult financial position when you pass away. However, life insurance proceeds become part of your taxable estate at the time of your death. An irrevocable living trust can help you avoid taxes on your life insurance payout. By putting your life insurance into a trust, any death benefits you get from the payout will not be considered part of your estate. Early planning is important. Some states impose a condition that dictates that life insurance transfers are still part of an individual’s taxable estate if not completed within a given period. Set up a Family Limited PartnershipA Family Limited Partnership or an FLP is a great way to protect your assets from creditors while still being able to manage your investments. An FLP is a kind of trust that allows you to pass assets to your ‘Limited Partners’. In an FLP, it is usually the parents who would serve as the General Partners. They would be the ones involved in managing the affairs of the trust and have unlimited liability when it comes to conducting the trust’s business. The Limited Partners are typically the children or the would-be beneficiaries of the trust. They have limited liability in the FLP and do not have a stake in the management of the trust. Assets are passed on through the transfer of partnership shares. Through this method, your ‘limited partners’ would be able to receive a tax break on gift taxes, income taxes, and estate taxes provided the transfers are made below the state’s tax exemption threshold. Establish a Qualified Personal Residence TrustFor most Americans, the largest part of their estate comes from real property, meaning assets like houses or land titles. Given that these kinds of assets are likely to appreciate in value, it’s likely to add a large amount to the size of your estate. By using a Qualified Personal Residence Trust (QPRT), you can transfer the ownership of your home without worrying about the estate tax. This doesn’t mean you have to immediately give up ownership. Depending on the trust’s terms, you can continue living in your house but once the terms of the trust end, your beneficiaries can take over the property. With a QPRT, the market value of your real estate will be frozen and you can avoid paying the gift tax provided you don’t exceed the lifetime limit for taxable gifts. What is the best option to avoid the estate tax?The easiest answer is: it depends. The best option to avoid the estate tax for one person might not necessarily apply to another. Mistakes can be costly when your estate is at stake. A well-structured financial strategy is essential in ensuring your assets pass on to your beneficiaries with the least amount of deductions possible. A skilled Long Island estate planning attorney should be able to evaluate your financial situation and recommend the appropriate strategies to avoid estate taxes. Estate planning attorney Seth Schlessel has helped clients protect their estates and ensure that asset transfers go as smoothly as they can. At Schlessel Law, PLLC, Seth Schlessel and our team of qualified estate planning and trusts attorneys understand what it takes to avoid unnecessary complications and disputes. We can help you establish trusts to minimize the tax implications asset transfers would cause on your total estate. Contact us today at (516) 574-9630 to schedule a consultation with Long Island estate planning attorney Seth Schlessel. Via https://www.schlessellaw.com/5-ways-to-avoid-estate-taxes/ It’s never too early to prepare a Will. Although death is not something most people want to think about, it might be prudent to prepare a plan in case of the unexpected. People with significant assets as well as those with fewer assets both need to plan how to take care of their loved ones in the event of their death. Without a valid Will, your estate will go through the process of probate which can cause a bitter struggle between all those who have a claim or stake in your property. In this case, a judge may need to distribute your assets. By making clear statements in your Will about how the financial portion of your estate will be divided, you can spare your family, friends, and business partners the time and money it will cost them to go through probate. It is important to speak with an experienced estate lawyer before you decide what kind of Will is right for your individual circumstances. A Will is a common tool for estate planning. It allows testators (the person who writes a Will) to make a list of their last wishes and arrange their assets in a way that best suits them. Each type of Will has its own advantages and disadvantages. Whether you are in Nassau County or Suffolk County, a Long Island Wills lawyer may be able to help you choose the best option according to your needs. Here are 5 different types of Wills in New York: Different Types of Wills in New York
Consulting an Experienced Estate Planning AttorneyAlthough it can be difficult to consider the possibility of death or disability, it is essential that you have a plan in place for your protection and that of those close to you. Proper estate planning will ensure that you are in control of your assets and property. An estate plan will also change as you and your financial circumstances change. You should review each document regularly in order to ensure that it is still compatible with your objectives and conforms to the changing law. Long Island estate planning lawyer Seth Schlessel and our team of attorneys at Schlessel Law PLLC understand the importance of a well-designed estate plan. Contact us today to schedule a consultation with our experienced attorneys in Nassau County or Suffolk County, Long Island. Via https://www.schlessellaw.com/five-common-types-of-wills-in-new-york/ |
About UsThe highly-skilled estate planning attorneys at Schlessel Law PLLC have dedicated their passion and experience to helping families plan better for the future by creating a comprehensive estate plan. The top-rated lawyers at Schlessel Law are also able to help with personal injury law, elder law, and startup/corporate law. To schedule a consultation with us, call us at (516) 574-9630. ArchivesNo Archives Categories |