Advanced NYS Estate Planning Techniques
Asset protection techniques
are used to protect assets from unexpected
future creditors and lawsuit liability. There
are various asset protection techniques that
protect individuals' assets during their
lifetime and insure that their estate is intact
when they pass on. They include forming trusts
and family companies in New York and other
states and countries.
Trusts are an effective way to shield your
assets from future creditors, lawsuits, and
other claims, laving more of your estate for
your family to enjoy.
FORMING A FAMILY COMPANY.
A family company (partnership or LLC) can is
used in many ways as an effective tax-savings
tool. One way is to form a family company to
hold a large asset, and make a gift of stock
valued at less then $12,000 every year,
tax-free. This is a way of gradually passing
your property to your relatives without paying
gift taxes or estate taxes. If the parents do
not want the children to own the stock right
away, the stock can be put into a "crummey"
trust for the children's benefit.
Another way to use a Family Company to save on
or avoid estate taxes and gradually giving up
management of the business or assets to family
members. That would involve forming a company
managed and controlled by you and your future
beneficiaries. This option is very flexible, but
you will only realize tax benefits if this is
done by an experienced professional. Also, it is
important to tailor the amount of control of
your assets that you are giving up.
An advanced technique would be
directing a part of your estate into a bypass
trust and another part of your estate into a QTIP trust. This will provide the benefit of not
wasting a marital deduction, as well as
controlling what happens to your estate after
the spouse's death.
Life Insurance Trust/Charitable Remainder Trust
A Life Insurance Trust and Charitable Remainder
Trust combination, if done correctly, allows you
to place a part of your estate in charitable
remainder trust, whereby the principal of the
trust will go to the charity of your choice,
while you will receive income during your
lifetime. You will use the income to pay
premiums for a life insurance policy owned by a
Life Insurance Trust. Upon your death, the
charity of your choice will get a substantial
amount, while your estate might get even more.
GRAT trusts, short for Grantor
Retained Annuity Trusts, are advanced trusts
used to avoid estate tax on part of the
interests of assets. If utilized correctly and
early on, they can save tremendous amounts on
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To arrange a
confidential meeting to discuss your estate
needs, contact our offices by e-mail or call (315) 451-2383.