When preparing and filing personal income tax returns, it’s common to have deductions that exceed the amount you are allowed to take on the current year’s tax return. In those cases, you may be able to carry over those losses to apply against income earned in future years. But what happens if you die without … Read more
A proper estate plan involves more than just drafting a will. That’s because a will only controls the distribution of what are known as “probate assets.” These are assets that do not have separate beneficiary designations. “Non-probate assets,” which include life insurance, retirement accounts, joint bank accounts, and real property owned “with rights of survivorship,” … Read more
Necessity is the mother of invention, and when the COVID-19 pandemic first emerged in March 2020, the new reality of quarantine and social distancing required changes, and in some cases outright suspension, of a variety of laws and regulations. One new rule put in place at the time allowed remote notarization of legal documents in … Read more
A Power of Attorney form authorizes someone to act as “an agent” (known as an “attorney-in-fact”) of the individual granting the power (the “principal”). An act taken by an agent has the same legal effect as if the principal were the one acting. New York law sets forth certain requirements that must be met for … Read more
IRAs and 401(k) plans are popular investment vehicles because of the tax benefits. Assets deposited into these accounts are only subject to income tax when they are withdrawn. The IRS sets a certain age at which withdrawals must start (currently 72) and provides for annual “required minimum distributions (RMDs).” These RMDs are calculated based on … Read more
When a couple prepares to marry, one question which may arise is whether they should enter into a prenuptial (or antenuptial) agreement, which among other things sets forth what happens to their assets in the event of a divorce. There are many situations in which this may be appropriate, including when there is a significant … Read more
If you are considering creating a trust, there are many considerations including analyzing the tax consequences. Taxation can get complicated if the trust, trustee, and beneficiaries are in different states with varying laws. Not surprisingly, many states are eager to tax trust income. The U.S. Supreme Court recently addressed this issue in North Carolina, but … Read more
As the calendar turns to Spring, the Yankees evil empire will try to best its own record of World Series wins. Whether they win or not, the heirs of their deceased owner, George Steinbrenner may have won a substantial victory in the form of significant estate tax savings thanks to a recent court case. Steinbrenner … Read more
By Michael Giusto and Lois Brenner Getting a divorce is a stressful experience and it’s not unusual for spouses to forget to address estate planning issues either before, during, or afterwards. However, not updating certain documents or considering your future financial situation could have serious unintended consequences. Impact of divorce on existing planning documents … Read more
There are many formalities required when properly executing a will. When these are not followed, there is a significant risk that the will cannot be admitted to probate. That means the decisions you made in designing your estate plan will not be implemented and instead, your assets will be distributed under intestate laws as if … Read more