Estate Planning — Bronx, NY

Estate planning encompasses both the legal documents — wills, trusts, powers of attorney, healthcare directives — and the financial structure that those documents govern. Account titling, beneficiary designations, and asset ownership determine how most assets actually transfer at death, often bypassing the will entirely. A comprehensive estate plan ensures the legal documents and the financial structure are aligned. Doug handles the financial side — account structure, beneficiary designations, tax-efficient transfer strategies — and coordinates with your estate attorney on the legal documents.

New York State has its own estate tax with a $6.94 million exemption (2024) and a graduated rate up to 16%. Unlike the federal estate tax, New York has a cliff provision: if your estate exceeds the exemption by more than 5%, the entire estate is subject to tax — not just the amount above the exemption. For Bronx and NYC metro residents with significant real estate appreciation, retirement accounts, and investment assets, New York estate tax is a real planning issue. Federal estate tax applies above $13.61 million per individual (2024), but the TCJA provisions that doubled the exemption are scheduled to sunset at the end of 2025, potentially halving the federal exemption. Doug monitors these thresholds and builds estate structures that account for both current and projected future law.

Revocable living trusts are frequently oversold as a universal solution. For most people, the primary benefit is probate avoidance — assets held in a trust pass directly to beneficiaries without court involvement. In New York, probate is not as burdensome as in some states, so the trust's value depends on the specific situation. Irrevocable trusts — such as Irrevocable Life Insurance Trusts (ILITs) or Spousal Lifetime Access Trusts (SLATs) — can remove assets from the taxable estate, but they involve giving up control permanently. Doug identifies whether a trust structure adds real value for your estate size and family situation, rather than recommending one by default.

Retirement accounts — IRAs, 401(k)s, and 403(b)s — are the largest asset for most retirees and the most tax-complex to transfer. They do not pass through the will. They are subject to the SECURE Act 10-year distribution rule for most non-spouse beneficiaries. And they carry embedded income tax liability that reduces their actual value to heirs. A Roth conversion during the owner's lifetime can eliminate this embedded tax, converting a pre-tax IRA into a tax-free inheritance. For clients with charitable intent, naming a charity as beneficiary of a pre-tax IRA — and leaving Roth or after-tax assets to family — is often the most tax-efficient distribution of the estate.

Doug's estate planning review starts with a complete inventory of your accounts, ownership structures, and existing beneficiary designations. He identifies misalignments between the legal documents and the financial structure — outdated beneficiaries, incorrectly titled accounts, assets that would pass through probate unnecessarily. He models the after-tax value of the estate under current law and projected future law, and identifies strategies that reduce the tax burden on beneficiaries. He then coordinates with your estate attorney to implement the financial changes and ensure the legal documents reflect the intended structure.