The new tax bill signed into law last week affects estate planning in the following ways, effective January 1, 2011: The federal estate tax exemption is now $5,000,000 per person (but there is still no tax when property passes to a surviving spouse). This is the amount that can pass free of federal estate taxes. (This was $3.5 million in 2009.) The federal estate tax rate is now 35% (this was 45% in 2009). The New York State estate exemption … read more »
Who will get your property when you die?
Who will inherit from you if you die without a will? It might not be the people you feel most connected to. Here is the order in New York State. If you don’t have a relative in one category, see the next category down. (for instance, if you don’t have a spouse, your money will go to your kids). If you have a spouse and kids, your spouse gets the first $50,000 + half of the remaining estate. Your kids … read more »
Secrecy in Collaborative Law
Two people, a man and a woman, came to me separately in the past week to explore the possibility of doing collaborative law. Both were people in short term marriages with no kids. The real estate wasn’t really the issue. And so it seemed that their situations were relatively simple, and that the collaborative process would be relatively simple. But scratching the surface made me see nuances that would not make the case appropriate. The man asked … read more »