Your Plan for Your Future
Navigate the storms of transferring assets to future generations with an Estate Plan
Considerations
Estate Planning –
Estel Law can create a comprehensive estate plan for you and your family as you prepare to transfer assets to future generations. A plan tailored to your unique circumstances is the best way to ensure your assets are protected and transferred in a tax-efficient manner.
New York Probate Proceedings –
Often times, estate plans ensure assets are held outside of the estate so the heirs might avoid the lengthy and costly probate proceedings. If you are a resident here in New York you might consider this. With the majority of your wealth outside the estate, the probate proceedings here in New York are likely to be administered under the more-efficient "Small Estate" proceedings (which is estates with $50,000 or less).
Essential Items
Last Will & Testament:
The fundamental document that usually governs the transfer of assets upon the death of the asset owner. These are not as lengthy because of the choice of many people to pass assets outside of the Probate Proceedings through the use of a Revocable Living Trust.
Often times, a Last Will and Testament is still advisable, even if a Rev. Trust is in place. If you have, or plan to have, assets in excess of the small estate limit at the time of passing, a provision called "a pour-over provision" will ensure that these excess amounts will be "poured" into the Revocable Trust and so be distributed according to its provisions.
Revocable Living Trusts:
Sometimes called “Revocable Inter Vivos Trusts” or "Rev. Trusts", hold title to real and personal property and ensure property passes outside of your estate. The Rev. Trust is key to estate planning that contemplates avoiding NY probate proceedings. For the great majority of people, having a Rev. Trust in place for their real property and investments can ensure substantial costs are avoided in the future.
Living Wills:
Another important document is the Living Will, or the document that specifies exactly how you may wish to have your medical needs are administered in the event you lose capacity to make decisions. This Living Will takes effect in such events and will ensure your wishes are respected by the relevant medical authorities administering medical care.
Power of Attorney:
This document gives certain legal rights to a specified person (often a close family member) to administer your life and expenses upon mental or physical incapacitation. It works, generally, in tandem with the Living Will, though it focuses more on financial and legal matters, rather than healthcare and medical needs.
Large Estates
Estates above a certain threshold amount ($15M for individuals and $30M for married couples, beginning in 2026) must pay estate tax upon the death of the asset owner: a 40% tax will likely apply to the Gross Estate less any applicable deductions. With amounts of this size, it will be important to have a strategy to make use of the benefits available under the tax code.
For estates that do not exceed the threshold amount, but are within about 30% of it (about $10M to $15M for individuals and, for married couples, about $20M - $30M) it is still beneficial to have your estate planned reviewed and so as to ensure that the estate exemptions amounts will apply and you will not have to pay tax on the estate upon the passing of the asset owner.
