New York High Net Worth Estate Tax Planning
As your personal holdings increase, estate planning becomes imperative.
Estate taxes are often a major concern. Many New York residents face taxation at both the federal and state level. Enea, Scanlan & Sirignano, LLP has convenient office locations in White Plains and Somers, New York. Our dedicated attorneys have significant experience assisting our clients as they seek to preserve their wealth for the future and to minimize or eliminate the potential for estate taxes.
The Federal And State Tax Burden
High-net-worth estate tax planning addresses the tax burden that could diminish your legacy. In New York, significantly more estates are subject to the state estate tax than the federal estate tax, as the state’s exemption threshold is currently less than half of the federal exemption.
The state tax rate ranges from 3.06% to 16%, and there is a “cliff” built into the law. Once your estate exceeds the applicable exemption amount by 5% or more, the entirety of your estate is subject to taxation.
Federal estate taxes can be even more costly to larger estates. Lawmakers adjust the exemption amount for inflation every few years, and the tax rate that applies can consume between 18 and 40% of your estate.
Strategic Asset Protection
There are useful tools that can reduce or eliminate your estate tax burden. Irrevocable trusts, including spousal lifetime access trusts or life insurance trusts, can all reduce the taxable value of your estate.
For example, trusts or last wills with built-in estate tax minimization provisions, such as disclaimer trusts and credit shelter trusts, are commonly utilized. Additionally, those in second marriages may require specific planning provisions.
Comprehensive Planning For The Future
Estate tax planning can dovetail with long-term care planning and asset protection planning. The team at Enea, Scanlan & Sirignano, LLP can draft documents that help preserve your legacy from creditor claims and other complications as you age as well. It is essential to start the process before you actually need long-term care, however.
Begin Your Estate Tax Planning Process Today
Every day that you delay estate tax planning is a day you and your beneficiaries remain exposed to substantial financial setbacks. You can contact Enea, Scanlan & Sirignano, LLP today for reliable, experienced high-net-worth estate tax planning guidance. Call 914-269-2367 or click here to schedule your initial consultation.
