Grimaldi & Yeung

Gifting Can Help Estate Plans and Heirs Reach Goals

“Despite many attempts at repeal over the years, the modern U.S. Estate Tax has been in place since September 8, 1916. Each U.S. citizen and resident alien is entitled to a lifetime exemption from the federal Gift/Estate Tax called the Applicable Exclusion Amount.”

The applicable exclusion amount is combined for gift/estate tax purposes is $11.58 million in 2020, a level that makes incorporating gifting into estate plans very attractive for high net-worth families. Only if a donor’s annual taxable gift—one that does not qualify for the annual, medical or education exclusion—is in excess of this amount, or if the value of the donor’s total taxable gifts is higher than this amount will there be a gift tax assessed. The federal gift tax will be due by April 15 of the following year. The current gift tax rate is 40% and the 2020 exemption amount is $15,000 per person, per year. That means a $15,000 gift can be made each year. This presents an opportunity to reduce one’s estate and shares with your heirs while you are alive.

Remember, if the exclusion is used during one’s lifetime, it reduces the amount of the exemption available at death to shelter property from the estate tax. With proper planning, spouses may currently gift or die with assets totally as much as $23.16 million, with no gift or federal estate tax.

To gain perspective on how high this exclusion is not long ago, in 2000-2001, the applicable exclusion amount was only $675,000.

The exclusion amount will automatically decrease to approximately $6.5 million on January 1, 2026, unless changes are made by Congress before that time to continue the current exclusion amount. Now is a good time to have a conversation with your estate planning attorney about making gifts in advance of the scheduled decrease and/or any changes that may occur in the future. The following are reasons why the current gift and estate tax exemption could be lowered:

·         Trillions of dollars in federal stimulus spending necessitated by the COVID-19 pandemic and the severe economic downturn in the U.S.

·         Past precedent of passing tax legislation mid-year and applying it retroactively to January 1.

·         A possible change in party control for the presidency and/or the Senate

·         The use of the budget reconciliation process to pass changes to taxes.

In the 100-plus year history of the estate tax, the exemption has never gone down. However, the exemption has also never been this high. The possibility of a compressed timeframe for family business owners and wealthy individuals to implement lifetime gifts before any legislative change may make a tidal wave of gifting transactions challenging between now and December 31, 2020. Now is the time to start planning and take action to utilize the exclusion amount.

Reference: The National Review (Aug. 20, 2020) “The Case for Gifting Now (or At Least Planning for the Possibility”

Our firm now offers Care Advocacy to service all of our clients' needs with our new social work staff. Please call our office anytime for assistance in your Estate Planning, Long Term Care Planning, Medicaid or Special Needs Planning: (718) 238-6960 or info@gylawny.com. We will be happy to schedule an appointment with one of our attorneys.

Election Season is Here: Vote for Your Favorite Brooklyn Businesses!

Election Season is here - Please see the below announcement from Best of Brooklyn:

Vote for Your Favorite Brooklyn Businesses Up and Down the Ballot!

It's election season, so its time to cast your ballot and support your favorite local businesses! Dime Best of Brooklyn voting is open through November 3rd. You can cast your vote daily for your favorite businesses – from psychics and psychotherapists to lawyers, liquor stores & much more!

The Dime Best of Brooklyn program has grown to be a coveted award for Brooklyn's best businesses. Hundreds of businesses are nominated in a diverse group of categories. Make sure your voice is heard and cast your vote, as only one first place winner in each category will be crowned The Dime Best of Brooklyn.

You are allowed one vote per email address per day for each category.
For more information, call 718-260-2554 or email bestof@schnepsmedia.com

ROCK THE VOTE!!

Click here to vote!

We want to hear from you!
If you have any questions about the program please email us at bestof@schnepsmedia.com or call 718-260-2554.

Medicaire Open Enrollment Reminder

A reminder that Medicare open enrollment begin in October. Please see the announcement from Medicare.gov:

Medicare Open Enrollment begins October 15! This year, Medicare plans have historically low premiums — dropping an average of 34% over the last 3 years, and in some states up to 60%! Starting October 1, you'll be able to take a sneak peek at plans available in your area.

If you're among the 1 in 3 people with Medicare who has diabetes, here's some more good news: many participating drug plans will offer a 30-day supply of insulin for $35 or less starting January 2021.

More Info

Think you'll need help comparing plans once Open Enrollment begins? Here are some things you can do from the safety of your home:

• Find Plans at Medicare.gov, where you can see estimates for all your prescriptions.
• Look at the eHandbook (also available in accessible formats like Braille, large print, and data/audio files).
• Call us at 1-800-MEDICARE during Open Enrollment.

 

 

 

 

 

 

Sincerely,

The Medicare Team

Our firm now offers Care Advocacy to service all of our clients' needs with our new social work staff. Please call our office anytime for assistance in your Estate Planning, Long Term Care Planning, Medicaid or Special Needs Planning: (718) 238-6960 or info@gylawny.com. We will be happy to schedule an appointment with one of our attorneys.

Are Trusts The Answer to All Estate Planning Needs?

“We may think of a spoiled heiress to a large fortune, whose parents were savvy enough to prevent her from having full access to her funds. On the other hand, we could imagine a loved one with special needs, whose needs will be provided for with trust-protected money.”

Trusts serve many different purposes in estate planning. They all have the intent to protect the assets placed within the trust. The type of trust determines what the protection is, and from whom it is protected.

The person who creates the trust is called a “grantor” or “settlor.” The individuals or organizations receiving the benefit of the property or assets in the trust are the “beneficiaries.” There are two basic types of beneficiaries: present interest beneficiaries and “future interest” beneficiaries. The beneficiary can be both the grantor and the beneficiary when a trust is set up for their lifetime, or it can be other people or entities.

The person who is responsible for the property within the trust is the “trustee.” This person is responsible for managing and investing for the assets in the trust while following the instructions of the trust. The trustee can be the same person as the grantor, as long as a successor is in place when the grantor/initial trustee dies or becomes incapacitated. However, the grantor still controls the trust and has full access to the trust accounts as the principal recipient of the trust.

One way to establish asset protection during the lifetime of the grantor is using an irrevocable trust. Someone other than the grantor must be the trustee, and the grantor should not have any control over the trust assets. The less power a grantor retains, the greater the asset protection.

A grantor can secure lifetime asset protection and also wishes to retain the right to income from the trust property, hold on to the use of the grantor’s residence for one’s self, or provide a protected home for an adult child upon the grantor’s death. Very specific provisions within the trust document can be drafted to accomplish many tasks.

There are many other options that can be created to accomplish the specific goals of the grantor.

Some trusts are used to protect assets from taxes, while others ensure that an individual with special needs will continue to receive needs-tested government benefits and still have access to  the trust funds for costs not covered by government benefits.

Grimaldi & Yeung LLP has a thorough understanding of the many different types of trusts and can create a trust that would best suit each individual situation and goal.

Reference: The News Enterprise (July 25, 2020) “Trusts are powerful tools which can come in many forms”

Our firm now offers Care Advocacy to service all of our clients' needs with our new social work staff. Please call our office anytime for assistance in your Estate Planning, Long Term Care Planning, Medicaid or Special Needs Planning: (718) 238-6960 or info@gylawny.com. We will be happy to schedule an appointment with one of our attorneys.

Grimaldi & Yeung LLP will participate in this year’s Virtual CaringKind Alzheimer’s Walk!

Grimaldi & Yeung LLP will participate in this year’s Virtual CaringKind Alzheimer’s Walk on Sunday, October 11, 2020 to support Care, Research and Advocacy!

On December 1, 2015, the New York City Chapter of the Alzheimer's Association separated from the National Alzheimer's Association, to return to their roots as a stand-alone, independent charity. The nation's leading experts in Alzheimer's care, education and support can still be found at 360 Lexington Avenue under the new name, CaringKind, The Heart of Alzheimer's Caregiving.

The 2020 CaringKind Alzheimer's Walk is virtual this year! Because of COVID-19, we can't all meet in one place, but we can still walk at the same time in support of Alzheimer's and dementia caregiving! You can join online for the opening ceremony, and then walk - in real life - in your own neighborhoods. That way, your community will know that you walk in support of Alzheimer's and dementia caregiving, and can keep all Walkers safe and healthy.

CaringKind will have a whole afternoon of livestreams. In order to participate in the online programs, you’ll need a computer, tablet, or smart phone with an Internet connection – to view events, you can visit: https://caringkindnyc.org/events/.

If you are interested in donating to this cause, kindly visit Grimaldi & Yeung’s team page. Please type in your browser: https://give.caringkindnyc.org/team/308193  We thank you for your support! 

Our firm now offers Care Advocacy to service all of our clients' needs with our new social work staff. Please call our office anytime for assistance in your Estate Planning, Long Term Care Planning, Medicaid or Special Needs Planning: (718) 238-6960 or info@gylawny.com. We will be happy to schedule an appointment with one of our attorneys.

Care Connection Webinar: Estate Planning and Medicaid Updates – New Home Care Rules October 8 @ 1:00 pm - 2:00 pm EDT

     

Please join our firm's very own Judith Grimaldi and Young Mee Kim Jun at The Alzheimer's Foundation of America's Live Webinar where they will be guest speakers. This webinar will provide an update on home care as it impacts caregivers who may need home care services from Medicaid. The webinar will be held on October 8th from 1 PM - 2 PM EDT.

For more information or directions on how to register please view our events page here: https://www.events.gylawny.com/ OR visit The Alzheimer's Foundation of America's website: https://alzfdn.org/event/care-connection-webinar-estate-planning-and-medicaid-updates-new-home-care-rules/

Our firm now offers Care Advocacy to service all of our clients' needs with our new social work staff.
Please call our office anytime for assistance in your Estate Planning, Long Term Care Planning, Medicaid or Special Needs Planning: (718) 238-6960 or info@gylawny.com. We will be happy to schedule an appointment with one of our attorneys.

 

Gifting Can Help Estate Plans and Heirs Reach Goals

“Despite many attempts at repeal over the years, the modern U.S. Estate Tax has been in place since September 8, 1916. Each U.S. citizen and resident alien is entitled to a lifetime exemption from the federal Gift/Estate Tax called the Applicable Exclusion Amount.”

The applicable exclusion amount is combined for gift/estate tax purposes is $11.58 million in 2020, a level that makes incorporating gifting into estate plans very attractive for high net-worth families. Only if a donor’s annual taxable gift—one that does not qualify for the annual, medical or education exclusion—is in excess of this amount, or if the value of the donor’s total taxable gifts is higher than this amount will there be a gift tax assessed. The federal gift tax will be due by April 15 of the following year. The current gift tax rate is 40% and the 2020 exemption amount is $15,000 per person, per year. That means a $15,000 gift can be made each year. This presents an opportunity to reduce one’s estate and shares with your heirs while you are alive.

Remember, if the exclusion is used during one’s lifetime, it reduces the amount of the exemption available at death to shelter property from the estate tax. With proper planning, spouses may currently gift or die with assets totally as much as $23.16 million, with no gift or federal estate tax.

To gain perspective on how high this exclusion is not long ago, in 2000-2001, the applicable exclusion amount was only $675,000.

The exclusion amount will automatically decrease to approximately $6.5 million on January 1, 2026, unless changes are made by Congress before that time to continue the current exclusion amount. Now is a good time to have a conversation with your estate planning attorney about making gifts in advance of the scheduled decrease and/or any changes that may occur in the future. The following are reasons why the current gift and estate tax exemption could be lowered:

·         Trillions of dollars in federal stimulus spending necessitated by the COVID-19 pandemic and the severe economic downturn in the U.S.

·         Past precedent of passing tax legislation mid-year and applying it retroactively to January 1.

·         A possible change in party control for the presidency and/or the Senate

·         The use of the budget reconciliation process to pass changes to taxes.

In the 100-plus year history of the estate tax, the exemption has never gone down. However, the exemption has also never been this high. The possibility of a compressed timeframe for family business owners and wealthy individuals to implement lifetime gifts before any legislative change may make a tidal wave of gifting transactions challenging between now and December 31, 2020. Now is the time to start planning and take action to utilize the exclusion amount.

Reference: The National Review (Aug. 20, 2020) “The Case for Gifting Now (or At Least Planning for the Possibility”

Our firm now offers Care Advocacy to service all of our clients' needs with our new social work staff.
Please call our office anytime for assistance in your Estate Planning, Long Term Care Planning, Medicaid or Special Needs Planning: (718) 238-6960 or info@gylawny.com. We will be happy to schedule an appointment with one of our attorneys.

Estate Planning Different for Business Owners and Top-Level Executives

“Having an estate plan can ensure that fiduciaries are identified to oversee and distribute your assets in the way you would have wanted. As a business owner, your ownership assets in your estate may require a more sophisticated level of planning.”

Do you need an estate plan? If you have children, ownership shares in a business, or even in more than one business, a desire to protect your family and business if you became disabled, or charitable giving goals, then you need an estate plan. The recent article “Estate planning for business owners and executives” from The Wealth Advisor explains why business owners, parents and executives need estate plans. Our firm specializes in succession planning and we have experience making business transitions more common.

An estate plan is more than a way to distribute wealth. It can also:

·         Establish a Power of Attorney, if you can’t make decisions due to an illness or injury.

·         Identify a guardianship plan for minor children, naming a caregiver of your choice.

·         Ensure that assets are controlled through beneficiary designations rather than simply through a will and pass privately when owned through trusts. This includes retirement plans, life insurance, annuities and some jointly owned property.

·         Create trusts for beneficiaries who are younger, disabled, or others you feel need some kind of protection.

·         Identify professional management for assets in those trusts.

·         Minimize taxes and maximize privacy through the use of planning techniques.

·         Create a structure for your philanthropic goals.

An estate plan ensures that fiduciaries are identified to oversee and distribute assets as you want. Business owners, in particular, need estate plans to manage ownership assets, which requires more sophisticated planning. Ideally, you have a management and ownership succession plan for your business, and both should be well-documented and integrated with your overall estate plan.

Some business owners choose to separate their Power of Attorney documents, so one person or more who know their business well, as well as the POA holder or co-POA, are able to make decisions about the business, while family members are appointed POA for non-business decisions.

Depending on how your business is structured, the post-death transfer of the business may need to be a part of your estate plan. A current buy-sell agreement may be needed, especially if there are more than two owners of the business.

An estate plan, like a succession plan, is not a set-it-and-forget it document. Regular reviews will ensure that any changes are documented, from the size of your overall estate to the people you choose to make key decisions. Contact our firm today to schedule an appointment.

Reference: The Wealth Advisor (July 28, 2020) “Estate planning for business owners and executives”

Our firm now offers Care Advocacy to service all of our clients' needs with our new social work staff.
Please call our office anytime for assistance in your Estate Planning, Long Term Care Planning, Medicaid or Special Needs Planning: (718) 238-6960 or info@gylawny.com. We will be happy to schedule an appointment with one of our attorneys.

Grimaldi & Yeung LLP will participate in this year’s Virtual CaringKind Alzheimer’s Walk!

Grimaldi & Yeung LLP will participate in this year’s Virtual CaringKind Alzheimer’s Walk on Sunday, October 11, 2020 to support Care, Research and Advocacy!

On December 1, 2015, the New York City Chapter of the Alzheimer's Association separated from the National Alzheimer's Association, to return to their roots as a stand-alone, independent charity. The nation's leading experts in Alzheimer's care, education and support can still be found at 360 Lexington Avenue under the new name, CaringKind, The Heart of Alzheimer's Caregiving.

The 2020 CaringKind Alzheimer's Walk is virtual this year! Because of COVID-19, we can't all meet in one place, but we can still walk at the same time in support of Alzheimer's and dementia caregiving! You can join online for the opening ceremony, and then walk - in real life - in your own neighborhoods. That way, your community will know that you walk in support of Alzheimer's and dementia caregiving, and can keep all Walkers safe and healthy.

Caringkind will have a whole afternoon of livestreams. In order to participate in the online programs, you’ll need a computer, tablet, or smart phone with an Internet connection – to view events, you can visit: https://caringkindnyc.org/events/.

If you are interested in donating to this cause, kindly visit Grimaldi & Yeung’s team page. Please type in your browser: https://give.caringkindnyc.org/team/308193  We thank you for your support! 

A Non-Medical Check Up – For Your Estate Plan

“For example, did you name someone as an heir who is no longer in favor with you or—worse yet—has died? Who should get what they would have gotten? Are there now new people in your life—be they family members or not—whom you might wish to share in what you may have?”

An estate plan isn’t just for you—it’s for those you love. It should include a will and possibly, trusts, a power of attorney for financial affairs and a health care directive. As many as 60% of all Americans don’t have a will. However, the COVID-19 crisis has highlighted for everyone the need to have those documents. For those who have an estate plan, the need for a tune-up has become very clear.
With any significant change in your life, a review of your estate plan is in order. Keep in mind that none of your estate planning documents are written in stone. They should be changed when your life does. COVID-19 has also changed many of our lives. Let’s take a look at how.
Has anyone you named as a beneficiary died, or become estranged from you? Will everyone who is a beneficiary in your current estate plan still receive what you had wanted them to receive? Are there new people in your life, family members or otherwise, with whom you want to share your legacy?
The same applies to the person you selected as your executor. As you have aged over the years, so have they. Are they still alive? Are they still geographically available to serve as an executor? Do they still want to take on the responsibilities that come with this role? Family members or trusted friends move, marry, or make other changes in their lives that could cause you to change your mind about their role.
Over time, you may want to change your wishes for your children, or other beneficiaries. Maybe ten years ago you wanted to give everyone an equal share of an inheritance, but perhaps circumstances have changed. Maybe one child has had career success and is a high-income earner, while another child is working for a non-profit and barely getting by. Do you want to give them the same share?
Here’s another thought—if your children have become young adults (in the wink of an eye!), do you want them to receive a large inheritance when they are young adults, or would you want to have some control over when they inherit? Some people stagger inheritances through the use of trusts, and let their children receive significant funds, when they reach certain ages, accomplishments or milestones.
Have you or your children been divorced, since your estate plan was last reviewed? In that case, you really need to get that appointment with an estate planning attorney! Do you want your prior spouse to have the same inheritance you did when you were happily married? If your children are married to people you aren’t sure about, or if they are divorced, do you want to use estate planning to protect their inheritance? That is another function of estate planning.
Taking out your estate plan and reviewing it is always a good idea. There may be no need for any changes—or you may need to do a major overhaul. Either way, it is better to know what needs to be done and take care of it, especially during a times like the one we are experiencing right now. Our Estate Planning Attorneys can help you with this review of your existing plan or help you develop a new one. COVID has shown us the importance of these documents. It’s time for you and your family to get your estate plan in order- call today.

Reference: Pittsburgh Post-Gazette (July 27, 2020) “Time for a non-medical checkup? Review your will”

Our firm now offers Care Advocacy to service all of our clients' needs with our new social work staff.
Please call our office anytime for assistance in your Estate Planning, Long Term Care Planning, Medicaid or Special Needs Planning: (718) 238-6960 or info@gylawny.com. We will be happy to schedule an appointment with one of our attorneys.