New York Probate Lawyer Blog

The number of estates subjected to federal estate taxes will skyrocket next year to an estimated 44,200, compared to just 5,500 estates that were subjected to the estate tax in 2009, The New York Times reported.

The estate tax can have an enormous impact and can even force the sale of a farm or family business. Some studies have even suggested that substantial changes to the estate tax can impact death rates -- increasing the number of deaths that occur right before an increase and decreasing deaths in the weeks leading up to the enactment of a tax break.

The federal estate tax -- or death tax as it is sometimes called -- was eliminated for 2010. It returns next year with a tax rate of up to 55 percent on estates worth more than $1 million. It applied only to estates valued at more than $3.5 million in 2009 and the maximum rate was 45 percent. Hiring a New York City estate planning attorney is critical to minimizing your exposure to estate tax while ensuring that your estate is distributed to heirs in accordance with your wishes.

The Wall Street Journal reports that a new proposal on the table would hit wealthy taxpayers harder than anything yet suggested. It would return the exemption threshold to $3.5 million, or as much as $7 million per couple, while reducing the maximum tax rate to 45 percent. But estates valued at between $10 and $50 million would be taxed at a rate of 50 percent. Estates valued at more than $50 million would pay 55 percent and those worth more than $500 million would pay 65 percent.

One thing might be as certain as death and taxes and that is that Congress will never be done playing with the estate tax rate. But, with proper estate planning, you can focus on minimizing your exposure to estate taxes, at whatever rate happens to be in place at the time of your death.

With advanced planning, many families can legally shelter significant portions of an estate from taxation. Living trusts, tax advantages associated with passing gifts to your heirs while you are alive, and other tax and estate-planning options can help protect a family business from taxation and will ensure that more of your estate passes to your chosen heirs.

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In a New York Mental Hygiene Law Article 81 Guardianship proceeding, the Court typically appoints a Court Evaluator. The Court Evaluator performs an independent investigation and assists the Court in determining whether a person is incapacitated and who should be appointed as Guardian. The Court Evaluator's fee is often paid from the funds of the Incapacitated Person, although the fee may be paid by the petitioner.

In a recent decision, Matter of A.M., dated 6/1/10 reported in the New York Law Journal, on Friday, June 11, 2010, p. 27, Justice Alexander W. Hunter, Jr. directed that a successor Guardian pay the fee of a Court Evaluator from funds the Guardian had collected on behalf of the Incapacitated Person. The Guardian had previously collected sufficient funds to pay the Court Evaluator's fee but had spent the funds by making payments which included paying itself fees on account of the Guardian's statutory commission. In effect, the Court ruled that the Court Evaluator's court awarded fee took priority over the subsequently earned commission.

Judge Hunter's decision shows that a Court Evaluator serves an important role in Guardianship proceedings. The information presented to the Court by the Court Evaluator is vital for a full determination.

The duties of the Court Evaluator include interviewing the Alleged Incapacitated Person, explaining the proceeding to the Alleged Incapacitated Person, determining whether the Alleged Incapacitated Person wants legal counsel, interviewing the petitioner and preparing a report and recommendations for the Court.

The Article 81 Guardianship statutes establish a procedure for the appointment of a property and/or personal needs Guardian that is beneficial and protective of the Incapacitated Person. These proceedings require a hearing in front of the Court and testimony from witnesses. Many times the hearings are contested and deal with disputes regarding incapacity, competing family members or others who desire to be appointed as Guardian, and issues concerning the misappropriation of the Alleged Incapacitated Person's assets.

Continue reading "New York Article 81 Guardian Is Directed To Pay Fee Of Court Evaluator From Guardian's Commission" »

The Irish Times recently reported the case of two sisters who donated their multi-million estate to charity, while leaving nothing to their relatives.

Proper estate planning in New York is vital to ensuring that your wishes are carried out upon your death.

The two sisters were born in Ireland and moved to the Upper East Side of Manhattan. One died in 1998; the surviving sister passed away in 2006, leaving behind an estate worth millions. The Times reports that lawyers are looking for relatives of the sisters in Ireland, not to notify them of an inheritance, but to inform them that the sisters have left their fortune to animal charities. An attorney in Ireland has been enlisted to help with the effort and has taken out an ad in national newspapers looking for surviving relatives.

The attorney in Ireland said the amount donated to animal charities is somewhere between $3 and $4 million but said it was unlikely that any distant relatives could challenge the Will.

Well, not exactly. Turns out at least 30 people have come forward claiming to be relatives, Irish Central reported.

It's always a good idea to consult a New York City probate attorney when establishing a Will or administering an estate. But it can be especially critical in cases where a large sum of money is donated to charity or when possible heirs are either omitted from a Will or intentionally left without an inheritance.

However, issues relating to kinship matters, such as ascertaining and locating distant relatives, can transform the probate proceeding into a long and costly process. Additional life-time considerations such as a Living Trust or gifts may eliminate some of the post-death complications.

Continue reading "Irish Sisters Leave Millions in New York Estate to Animal Rights Organizations" »