It can seem daunting to plan for your death. However, doing so through the creation of an estate plan is very important. When you accumulate hard-earned assets throughout a lifetime, they should be cherished and protected. In doing so, it can be beneficial to retain the services of an experienced New York estate planning attorney for assistance.
Can a High Net Worth Minimize Estate Taxes?
When dealing with wealth transfer taxes, it is important to know that this can include estate taxes, generation-skipping taxes, and gift taxes. The federal tax is 40% of what they are measuring with up to $5.6 million as tax-exempt. Simply put, this means that the first $5.6 million is exempt from taxes. However, after that, there is a 40% tax on the estate. Both the gift tax and the estate tax follow this rule. Generation-skipping transfer taxes begin once assets or property is given to a child or great-grandchild.
Planning for Incapacitation
There are some instances in life in which a person becomes unable to care for themselves as they grow older. When this happens, they may not be able to manage their work, finances, personal affairs, and more. While people do not usually want to consider this possibility, it is best to plan for the worst instead of finding yourself unprepared in the future. Planning for incapacitation can be done in different ways. This can include appointing a Durable Power of Attorney to manage your assets and a Healthcare Power of Attorney to make medical decisions on your behalf.
A will can also be created in order to address whether or not you may want to receive life or death treatment. A guardianship can also be arranged in the event that there are children under the age of 18.
Can I Avoid Probate?
For individuals that have a high net worth, it can be very beneficial to establish a living trust. An important benefit in doing so is that the trust can avoid the process of probate since it is not in their name. In addition to this, creating a revocable trust can allow an individual to amend or revoke the trust at any time.
Contact our Firm
The Lauterbach Law Firm is proud to serve clients throughout Rockland County who are faced with legal matters related to estate planning, real estate, foreclosure defense, landlord-tenant law, business law, and criminal defense. If you require the services of an experienced team of attorneys, contact The Lauterbach Law Firm today to schedule a consultation.