Some people do not understand why you would need an estate planning lawyer. How hard is it to express how you want your assets to be distributed in a will? In reality, there is a lot more to it, and we will provide an explanation in this post.
Protect Your Young Family
As a layperson, you are not going to understand the steps that you should take to protect your loved ones during each stage of your life. About 75 percent of individuals that are under 55 do not have estate plans in place, and many of these people have minor children.
If you are a parent of a minor, who would care for them if you passed away? Even if you have a surviving spouse, how would they make ends meet? Where will the income replacement come from, and who would manage assets on behalf of a minor child?
We can answer all those questions because this is our field. You should definitely make sure that your family is protected as soon as there are people depending on you. There are things you can do to cover your bases. We will not get into them here, but you should take the matter seriously.
Preserve Your Legacy
Let’s say that you dismiss the idea of working with an estate planning lawyer to create your plan because you don’t think that it is necessary. You go about your business, and you retire when you are 70 years of age.
Some years pass and it starts to get difficult to handle your responsibilities by yourself. Along the way, you have never been financially concerned about medical matters, because you have Medicare.
At some point, you recognize the fact that you need professional help with your activities of daily living. When you look into it, you find that Medicare does not cover in-home custodial care, and it does not pay for a stay in a nursing home.
If you are in this position, you would be forced to use your savings to pay for long-term care for as long as the money will last. After there is nothing left, you can qualify for Medicaid, and Medicaid will cover long-term care. This is one way to approach it, but there is an alternative.
When you work with us to establish an estate plan that includes a plan for aging, you can position your assets properly at the right time. You will preserve your resources, and you will be able to qualify for Medicaid if and when it becomes necessary.
Mitigate Estate Tax Exposure
We practice in Manhattan, and needless to say, there are a lot of high-net-worth individuals here. Financial independence is always a good thing, but there is a negative from an estate planning perspective.
The federal estate tax can have a significant impact on your legacy because it carries a 40 percent maximum rate. This tax is applicable on the portion of an estate exceeds the exclusion, and in 2022, the exclusion is $12.06 million. But what most people are not aware of is that the exclusion amount drops on January 1, 2026 to $5 million adjusted for inflation.
New York is one of 12 states in the union with a state level estate tax. The exclusion is $6.11 million this year. Plus, if the value of your estate is more than 105 percent of the exclusion amount, all of your estate is taxable.
These figures are subject to change, and estate planning lawyers always have their fingers on the pulse of estate tax matters. There are estate tax efficiency strategies that can be implemented, but they are complicated, and legal counsel is invaluable when there is a lot at stake.
Schedule a Consultation Today!
As you can see, there are many ways that an estate planning lawyer can help you craft your legacy, and we have only scratched the surface in this post. If you are currently unprepared, action is required, and you are making the ideal connection.
We will gain an understanding of your situation and provide recommendations based on the circumstances. At the conclusion of the process, you will go forward with a carefully constructed plan that is ideal for you and your family.
If you are ready to get started, you can schedule consultation at our Manhattan estate planning office is you call us at 212-973-0100, and you can use our contact form to send us a message.