Creating an estate plan can have its difficulties. After all, New York residents are expected to take every aspect of their lives into consideration and determine how they want their affairs handled after death. That is no simple task. Of course, even after going through the estate planning process, issues with a plan could make it less effective than desired.
Income Tax Rates for Trusts and Estates 2017
The IRS recently enacted revenue procedure 2016-55 which updates rules in the tax code that are regularly adjusted due to inflation. Among the changes includes the tax brackets for estate and trust taxable income for 2017.
Creating a living will can benefit anyone, including a Kardashian
Deciding how to be cared for in the event of incapacitation can be difficult for any New York resident. There may be many facets to consider, such as priorities in one's life and how certain decisions may affect family. However, a living will can contain any instructions that individuals want carried out in the event that they cannot care for or communicate for themselves.
Putting Rental Home Into a LLC or S-Corp is Sound Medicaid Planning
Put Your Rental Home into a Corporation or LLC
Estate planning can help individuals control their estates
Some New York residents may not feel that planning for any sort of event is a strong point of theirs. As a result, they may shy away from attempting to create an estate plan because they do not know where to start or what to include. However, avoiding estate planning altogether can have detrimental effects, and with the right assistance, creating a plan may be easier than expected.
Examining the option of staying in your home
One thing you know too well is that you can't predict the future. Your life may have turned out very different from the way you imagined or planned, and there is no reason to expect your remaining years won't have their own surprises. Some of those surprises may bring joy, and others will bring pain. However, the wisdom in your heart tells you to prepare the best way possible for the difficult times that may arise.
Considering nursing home options, Medicaid may be useful
When the time comes for a loved one to enter a nursing home facility, it can be a difficult transition for everyone involved. There may be numerous concerns to consider, such as ensuring that the individual will receive the proper care. Of course, financial aspects can also cause concern, and questions regarding Medicaid may come about.
You Did Medicaid Planning, You Created An Irrevocable Trust. Now, Make Sure The Trustee Files A Tax Return (Or Not)
Most irrevocable trusts created for the purpose of protecting assets from the costs of long term care (i.e., the nursing home) must file a Form 1041 (for IRS Federal filing purposes) and a Form IT-205 (for New York State filing purposes) only once - for the year of creation. This is not unusual. There are many types of irrevocable trusts and most of then must file these income tax returns each and every calendar year. However, some irrevocable trusts are grantor trusts and for most grantor trusts, filing Form 1041 (and IT-205) is optional. By the way, most irrevocable "asset protection" trusts are grantor trusts.
Advance health care directives can be made well ahead of time
It is not unusual for individuals to want others to understand how they would personally handle certain situations. However, there may come a time when parties are not able to effectively communicate their wishes. When it comes to personal care, not having instructions in place can seem frightening. Luckily, New York residents could utilize advance health care directives to detail their desires for care.
