Mullen and Iannarone, P.C.
Serving the legal needs of corporations, individuals and
families of Suffolk County since 1972

The benefits of estate plans for New York residents

President Trump campaigned on eliminating the federal estate tax entirely, and some people are wondering if they need to bother with creating an estate plan if they don't have to worry about the tax burden their heirs may face. However, the exemption in 2017 is $5.49 million per person and $10.98 million for married couples. Therefore, many people do not have to worry about federal estate taxes, but that doesn't mean that estate planning is unnecessary for those individuals.

People should still create estate plans because there is more to them than mitigating taxes. Estate planning allows people to determine how their assets will be distributed upon their death. Using trusts, people can be very specific about how they want their property doled out.

Trusts can be set up to allow people to only access money after they reach a certain age or meet certain criteria, such as graduating from college. Alternatively, trusts can be created so that money can only be spent on particular items, such as education or purchasing a home.

Even if there is no longer a federal estate tax, people can still minimize inheritance tax burdens through estate planning if there is an estate tax at the state level. Many states have significant estate taxes that affect individuals who do not have enough assets to be affected by the federal estate tax. As a result, people should still consider the value of trusts to ensure that a person's heirs get the most out of what is left to them, and an attorney could help clients understand how different types of trusts work and what their benefits are.

No Comments

Leave a comment
Comment Information