As 2024 winds down and we look forward to a new year, it’s the perfect opportunity to take stock and plan for the future. At Blustein, Shapiro, Frank & Barone, we believe that should include a thorough review of your estate plan.

Why is estate planning crucial, especially in New York?

Estate planning isn’t just about what happens after you’re gone. It’s about ensuring your wishes are respected, your loved ones are protected, and your legacy is secure. Here in New York, there are some unique things to consider:

• New York’s Estate Tax: New York has its own estate tax, separate from the federal one, with a lower exemption amount. This means careful planning is especially important for those with larger estates.
• Gifting in New York: While New York doesn’t have a gift tax, gifts made within three years of your death can still be counted toward your taxable estate. However, you can still leverage the federal gift tax exclusion, allowing you to gift up to $19,000 per person (or $38,000 for married couples) in 2025 without incurring gift tax.

Year-End Planning Checklist:

• Update Your Documents: Make sure your will, trusts, powers of attorney, and healthcare directives are all up-to-date. Life changes like marriage, divorce, or the birth of a child might require revisions.
• Use Your Gift Tax Exclusion: Gifting assets to loved ones can be a smart way to reduce your taxable estate.
• Think About Appreciating Assets: Gifting assets that are expected to increase in value can help keep that future growth out of your taxable estate.
• Check Your Beneficiaries: Make sure the beneficiaries on your retirement accounts, life insurance policies, and other assets are all current.

2024 Brought Big Changes to Estate Planning in NY

This year saw a flurry of new legislation impacting estate planning in New York. Here are some key highlights:

• Estate Tax Alignment (Sort Of): Starting in 2025, New York’s estate tax exemption will mirror the federal exemption, but without considering the 2017 Tax Cuts and Jobs Act. This means the exemption will be lower than the current federal amount, making estate planning even more critical.
• New York LLC Transparency Act: LLCs formed or doing business in New York will need to disclose beneficial ownership information to the state, increasing transparency.
• Transfer on Death Deeds: A new law allows property owners to designate beneficiaries who will inherit real estate directly, bypassing probate.
• Multi-Person Bank Accounts: Pending legislation aims to clarify the rules around joint bank accounts, requiring clear designation of survivorship rights or “convenience” status.
• Easier Legal Processes: New laws have reduced notary requirements for certain documents and made it easier to execute healthcare proxies remotely.

Don’t navigate these changes alone.

With these new laws and the ever-changing landscape of estate planning, it’s more important than ever to have expert guidance. The experienced attorneys at Blustein, Shapiro, Frank & Barone are here to help you understand these changes and create or update an estate plan that provides you with peace of mind. Contact us today for a consultation and start the new year with confidence.