Estate Planning & Probate
Build A Strong Foundation
As the parents of Baby Boomers begin a large transfer of wealth to their children, and as the Baby Boomers consider how and when to transfer their wealth to younger generations, estate planning has never been more important. We understand the inherent challenges and complexities involved in critical matters such as wills, trust management, guardianships, bequests and funeral arrangements. As we work with you, we focus on two primary objectives: (1) ensuring that the right people receive the right assets at the right time, and (2) minimizing the taxes triggered upon a client’s death.
As a result of changes made to the law in late 2010, individuals can now pass up to $5,000,000 during their lifetimes (or at death) free of any gift or estate taxes for gifts made or individuals dying in 2010 through 2012. A married couple can double this amount and use any tax-free amount not used at the first death at the surviving spouse’s death, making it possible to pass up to $10,000,000 free of tax. Note, however, that Congress did not make this a permanent change to the law and if it does not act again before the end of 2012, the tax free amount will revert to $1,000,000 beginning in 2013. Thus, while estate taxes will not be an issue for many more people during the next two years, they could come back with a vengeance in 2013. A well-tailored estate plan needs to consider whether tax planning should be incorporated and contemplate future changes in the law, while minimizing the tax burden to the extent possible. In determining the size of your estate, the amount of any life insurance which you own and your retirement plan assets, such as IRAs and 401(k) accounts, must be included. In most cases, estate taxes can be avoided with careful lifetime planning.
Our practice includes analyzing the ownership of assets to ensure that the maximum amount can pass to the family members free of tax. In addition, we explore with clients lifetime options for reducing the tax bill triggered at death, including lifetime gifts to family members or to trusts for their benefit.
Wills, Trusts and Other Estate Planning Tools
Our attorneys are familiar with the use of the sophisticated estate planning “tools” which may be appropriate, including wills, trusts (whether lifetime or testamentary), family partnerships or LLCs, life insurance trusts, grantor retained annuity trusts or unitrusts, charitable remainder trusts, and charitable lead trusts.
The key to a successful estate plan is taking the time to determine where you are and what your objectives are. With time and an organized plan, it is often possible to pass assets to your family at a greatly reduced or eliminated estate tax cost. Let us work with you to develop your plan and to secure the foundation you’ve worked so hard to build.