For those who have lost a loved one and are managing the deceased’s estate, understanding whether there is an estate tax in Staten Island probate cases is critical. Working with a probate lawyer may provide crucial insights into these questions and help manage the several forms and legal processes involved.
If you have lost a loved one, navigating the probate process alone can be challenging. Louis P. Lepore is a knowledgeable probate attorney who could answer your questions and assist you with your probate case.
Yes. The state imposes an estate and inheritance tax in addition to the federal estate and gift tax. These taxes are only imposed on estates that exceed the exclusion amount.
For example, if the exclusion amount is $6,940,000 and the deceased estate is $7,940,000, then $1,000,000 would be subject to state estate tax. The tax rate depends on the amount in excess of the exclusion amount and current tax rates.
An inventory of assets is essential in probate cases. This inventory can help shed light on the taxable assets and whether the estate exceeds state and federal tax exemption amounts. A lawyer in Staten Island could assist with this process during probate cases and provide insights into how an estate may be taxed.
In addition to its general estate tax rule, the state has implemented a cliff rule that does not allow certain estates to take advantage of the exclusion at all. If an estate is more than 105% of the exclusion amount at the time of death, the entire estate will be taxed, not just the amount greater than the exclusion.
To calculate the taxable estate, it is critical to understand that even non-probate assets will count. This means that even assets that pass via beneficiary designation will be added to the total estate.
For instance, a life insurance policy is not considered a probate asset because it passes via beneficiary designation. The executor will not need to inventory this asset during the probate process. However, the executor must consider this asset when calculating the total estate for taxation purposes.
There are some overlaps between state and federal taxable estates and probate cases, and understanding these nuances is both essential and difficult. Moreover, each process requires several forms and has its own deadlines. A lawyer who is familiar with estate tax in Staten Island probate cases could ensure all deadlines are met and the calculation of the total estate is correct.
The state and federal exemption amounts are constantly changing, so planning ahead may be essential for those with larger estates. A few tools are available to avoid estate tax.
Trusts are one key tool that individuals may use to avoid estate tax. An irrevocable living trust or credit shelter trust could be implemented to shield assets from taxation. An attorney may assist in determining whether a trust is appropriate and how it can prevent future taxation.
The nuances of estate tax in Staten Island probate cases can be overwhelming, especially during an emotionally difficult time. An experienced probate attorney may provide critical assistance and legal support.
The Law Offices of Louis P. Lepore helps clients navigate the probate process and understand the estate tax implications on their case. We understand the challenges presented by Staten Island probate and the confusion related to estate tax laws. If you have questions and need legal assistance, call us today to schedule an appointment.
(718) 354-8646