Estate Planning Insights & Tips

The major holiday gift giving period is largely over. Hopefully you got all that you hoped for. In some families, some fun may have been had by exchanging so-called white elephant gifts. What that means is that someone might have wound up with one of late Uncle Murd's special collectibles, like the "Oh, So Comfy" Dachshund plate.

Uncle Murd loved dachshunds. And he lovingly kept that plate on his wall, in its special frame with the limited-edition certificate of authenticity (COA) clipped to it, so he probably felt it was worth something, or would be someday. As we have written about before, though, this can be a tricky area in the context of estate planning. While Murd found the dog endearing and the plate special, they became white elephants for relatives after he died. Maybe if it were worth something, views would be different.

Headlines at the end of 2017 heralded passage of the Tax Cuts and Jobs Act. Many of the provisions of that law carry implications as we close out 2018. As a New York business owner, are you up to speed on the implications of the reforms for your situation?

While the tax changes promise cuts of about $1.5 trillion, most experts agree the tax filing processes remain as complicated as ever. That suggests that the time is ripe to year-end review, in consultation with an experienced tax law attorney, to determine what steps might deliver the greatest tax benefits now and in the year ahead.

There are a few things required to justify creating an asset protection plan. Contrary to what most people think, being as rich as a Rockefeller is not one of them. More important is to appreciate that life is about more than the here and now. If you are married, with or without children, you can make creating an inheritable legacy through various legal tools part of a comprehensive estate plan. If you are single, a trust could help cover your financial needs in old age.

Specific to trusts, because of the legal ins and outs, you want to be clear on the reason for setting one up. This is best done with an experienced attorney. Once you have a reason, you will want to explore all options. And while some trust providers set an out-of-reach minimum amount to create a trust, there are some that can be set up for just a few hundred dollars and then bolstered with regular contributions over time. Obviously, the earlier you start the process, the better the trust's funds will be.

Trust, but verify. That's an adage that comes to us from Russia. Ronald Reagan made it famous during his presidency, using it often in connection with nuclear disarmament talks.

When it comes to the disposition of wills and other elements of a New York estate plan, it might be understandable for members of a decedent's family to want to apply the same wisdom to be sure that asset distribution goes according to the creator's wishes. The easiest way to achieve this might be for the executor to simply distribute copies of the documents. Whether that happens or not depends on a number of factors.