The March Bulletin contained the first of a series of articles supplementing a seminar on Planned Giving and Estate Planning given this past spring. Alan Fell, Esq. conducted the discussion and prepared the following outline summarizing the highlights of his most informative talk. If you wish to consult with Mr. Fell directly, he can be reached at (212) 422-0488. You may also contact Ephraim Leibowitz at (718) 951-7063 or by e-mail at , if you have any questions regarding planned giving and estate planning.
This outline of Estate Planning Basics is part of a series of articles on Estate/Gift Planning being prepared by Mr. Leibowitz and will appear from time to time in the EMJC Bulletin.
Estate Planning Basics - Alan Fell, Esq.
I - Intestacy
A. When a person dies without a will, their entire estate disposition is determined by New York State Law.
B. The estate will be shared by a spouse and children or, if none, parents, siblings, children of siblings or cousins.
C. A will permits a testator to determine the disposition of his or her estate, not New York Law.
D. Elements of a Will:
- Executor: fiduciary who marshals assets, pays debts and expenses and distributes to beneficiaries in accordance with the will.
- Trust: designate a trustee and allocate a separate fund for a charitable or individual beneficiary
- determine beneficiary: individual or organization
- term of the trust
- protection of assets from creditors
- designate trustee
- Guardian for minors
- Specific bequests: individual or organization
- Residuary disposition: individual or organization
II - Revocable Living Trust
A. substitute for will and power of attorney
B. Grantor can be original trustee with Successor Trustee designated
C. Title of all assets must be transferred to the name of the trust
D. Grantor is sole beneficiary during his or her lifetime; upon his or her death disposition may be similar to a will with individual or charitable beneficiaries
III - Estate Tax Considerations
A. Federal Estate Tax exemptions present $2,000.000 with rates starting at 45%
B. New York State Estate Tax exemption is $1,000,000; no New York State Gift Tax
C. Federal Gift Tax exemption is $1,000,000
IV - Other Estate Planning Documents
A. Power of Attorney
B. Health Care Proxy
C. Living Will
V - Charitable Dispositions
A. Outright gift or bequest
B. Charitable remainder Trust
C. Charitable Lead Trust
D. Designate charity as beneficiary on life insurance or IRA account
E. Life estate in residence
VI - Sophisticated Estate Planning Tools
A. GRIT - Grantor Retained Income Trust
B. GRUT - Grantor Retained Unit Trust
C. QPRT - Qualified Personal Residence Trust
D. GRAT - Grantor Retained Annuity Trust