Yana Feldman (https://yanafeldmanlaw.com/estate-of-affairs-a-handy-and-essential-guide-to-new-york-estate-tax/), a leading Brooklyn estate tax planning lawyer at New York Legacy Lawyers, has released a comprehensive guide addressing key aspects of New York's estate tax landscape for 2024. With estate taxes playing a significant role in determining the financial future of individuals and their families, this guide highlights vital considerations for residents of New York, offering practical strategies to minimize tax burdens while safeguarding the value of estates. Estate tax planning is an intricate process, especially in New York, where state laws impose distinct challenges compared to federal regulations.
Brooklyn estate tax planning lawyer Yana Feldman stresses that understanding the differences between federal and New York state taxes is pivotal for estate owners. While federal estate taxes may not apply to estates below a certain threshold, New York's regulations present additional layers of tax responsibilities. As Feldman outlines in the guide, the estate tax rates in New York range from 3.06% to 16% depending on the size of the estate. Estates valued below the state exemption limit of $6.94 million for 2024 are not subject to tax. However, estates exceeding $7.29 million may be subject to the "cliff" effect, a unique feature of New York tax law that can impose taxes on the entire estate once the threshold is exceeded.
In the guide, Feldman explains how the "cliff" effect works and why it’s important for individuals to engage in proactive estate tax planning. A small misstep or lack of foresight can lead to significant tax liabilities. "If the value of an estate surpasses 105% of the exemption, the entire estate becomes taxable, not just the amount exceeding the exemption," the Brooklyn estate tax planning lawyer notes. This punitive structure could substantially reduce the wealth passed on to heirs unless careful estate tax planning measures are put in place.
Brooklyn estate tax planning lawyer Yana Feldman also underscores the importance of the New York estate tax exemption and its application. In 2024, the exemption is set at $6.94 million, offering estate owners an opportunity to adjust their financial strategies. Feldman advises that reassessing estate plans under this new exemption can help owners avoid significant tax repercussions. "With the 2024 exemption in place, New Yorkers have a valuable window to reduce their estate tax liabilities," Feldman says. This offers individuals the chance to secure their family's financial future through meticulous planning and consultation with experienced professionals.
One of the most critical aspects of estate tax planning in New York is the interplay between the state’s estate tax and federal regulations. Feldman highlights the lack of "portability" in New York estate tax laws, a stark difference from federal rules. Under federal law, a surviving spouse can inherit the unused portion of their deceased spouse's estate tax exemption, providing a considerable tax-saving benefit. However, in New York, this provision does not exist. Feldman explains that without portability, couples must consider strategies such as credit shelter trusts to maximize their estate exemptions and minimize tax burdens.
Estate tax planning lawyer Yana Feldman notes that without such planning mechanisms, an estate can easily surpass the state’s exemption limit and incur hefty taxes. "Incorporating a credit shelter trust ensures that the first spouse’s exclusion amount is preserved, thus providing tax relief for the surviving spouse and protecting the family’s wealth from excessive taxation," Feldman advises. In addition to trust planning, Feldman recommends utilizing gifting strategies to further reduce taxable estate values.
Feldman also highlights the impact of New York’s estate tax on non-residents who own property in the state. Even if an individual is not a resident of New York, they may still owe estate taxes on tangible property, including real estate, located in the state. This underscores the need for comprehensive estate planning strategies that take into account all assets, regardless of their location.
Estate tax planning lawyer Yana Feldman concludes by urging New Yorkers to review their estate plans regularly, particularly in light of changing laws and exemptions. "Staying informed about tax law changes and adjusting your estate plan accordingly is crucial to preserving wealth for future generations," Feldman emphasizes. By working with a Brooklyn estate tax planning lawyer, individuals can optimize their plans and secure their legacies.
For individuals in New York who are concerned about estate taxes and ensuring the smooth transfer of assets to their beneficiaries, consulting with an estate tax planning lawyer such as Yana Feldman is an essential step. Proper planning can help ensure that an estate remains below the state exemption threshold, avoiding the significant tax burdens imposed by New York's estate tax laws.
About New York Legacy Lawyers:
New York Legacy Lawyers, led by Brooklyn estate tax planning lawyer Yana Feldman, can provide a wide range of estate planning services. Their team is well-versed in helping individuals and families in New York navigate estate taxes, trusts, wills, and asset protection. With a commitment to offering personalized solutions tailored to each client’s needs, New York Legacy Lawyers can further ensure that estates are planned efficiently to preserve wealth for future generations.
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