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 Assets deposited into these accounts are only subject to income tax when they are withdrawn.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
Litigation can be a slow process and may continue for years before its resolution. What happens if a party to litigation passes away while it is ongoing? If you are involved in a lawsuit and the other party dies or if you are the estate representative of the person who passed away, there are several … Read more
During marriage, typically couples will name each other as beneficiaries of their retirement accounts, pensions, life insurance policies and similar assets. However, if a couple separates or divorces, they usually want to change their beneficiary designations to another person. As discussed in a previous post, it is important to talk with an estate planning attorney … 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
If you want to discourage others from challenging your will, you can use an “in terrorem” or “no contest” will clause. Such provisions provide that if someone contests your will or any of its provisions, the person forfeits what they would have received under the will. The idea is to leave a disinherited heir enough money … 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
The new tax law has gotten a lot of media coverage in New York mostly because of the loss of the State and local tax deduction and the end of the “Obamacare” health insurance individual mandate. Less attention is paid to the significant estate and gift tax changes contained in the law. These provisions may … Read more