New York Estate Lawyers Make Some Estate Tax Suggestions

The federal estate tax is still scheduled to return on January 1, 2011, which will affect a great many families, New York Estate Lawyers report.

No one knows what Congress is going to do about it, including, apparently, Congress, which means financial planning is very tricky. Retirees have to find a way to balance who much they need to live on and how much they should give away to avoid estate taxes. New York Estate Lawyers know several strategies to help protect estates from the possibly 55 percent bite they might receive starting in 2011.

Giving it away is always an option. $13,000 a year to any amount of people is tax-free gifting. Spouses can give jointly for $26,000 per recipient. It doesn’t have to be given directly, either. The money can be granted to a trust, as well.

A one-or-two-year term policy of life insurance can offset the cost of taxes. If the estate tax does not go up, just let go of the policy. The beneficiaries of the policy should be the owner, or the proceeds will be counted as part of the deceased’s estate, only raising estate taxes.

Marriage can actually help avoid the estate tax. A widow or widower who remarries can leave an unlimited amount to a spouse, if the spouse is an American citizen. No estate tax will apply to such a gift. Lending money to a family member for whatever reason can also help. So long as a minimum rate of interest is charged, there is no gift or income tax consequence, say New York Estate Lawyers.

A New York Estate Attorney can be your best friend when it comes to deciphering the ever-shifting laws surrounding taxes and finance. Your estate is in good hands when you entrust it to a New York Estate Attorney.

If you or a loved one is having trouble with the tangle of tax laws, a New York Estate Attorney is ready to assist you. You want to avoid all the legal troubles that come with money, or at least make them less problematic. Your best possible ally in that endeavor is a New York Estate Attorney.