Reduce Probate Complexity
In NYS, all deaths are required to go through the Unified Court System.
To reduce the cost of probate, a non-beneficiary designated estate less than $50,000 can utilize NYS’s administrator process. This process is less expensive and takes less time. Estate planning ensures all assets that can have a named beneficiary, do; high valued assets are either transferred to heirs prior to death or put in a trust; and titled assets have dual ownership to protect the asset from going to probate.
Lower Tax Burden
The SECURE Act of 2019 requires that all tax deferred accounts (401Ks, 457Bs, traditional IRAs, etc.) must be drawn down by the beneficiary within 10 years of death. Therefore, understanding who is in the highest tax bracket (the elder or the beneficiary) and planning the transfer of assets to ensure the lowest tax burden is an objective of the financial estate plan. Some things that can be done:
- Convert traditional retirement accounts to Roth accounts. This means the owner will pay the taxes at his/her tax rate now, so that the recipient can receive the benefit tax free.
- Withdrawal more than the required minimum distributions now, pay the taxes at the senior’s tax rate, and gift the money.
- Make your charitable donations now.
These tax strategies should not be done on your own. Talk to BRPS Consulting or your financial / tax advisor before implementing these steps.
Asset Distribution
Typically, a will dictates how the estate should be divided amongst the heirs. However, oftentimes an elder wants specific items, a wedding ring, a family heirloom, military flags, etc.. to go to specific people. An estate plan can document these items to ensure that everyone knows who should get what. You can also indicate whether you want to be buried with that wedding ring or other item, rather than give it away.
Pet Care
Many elderlies fail to make arrangements for their pets. Family members do not always want to take on the burden of having a pet and the pet ends up in the pound. Developing a plan for your pets is equally as important as developing a plan for yourself and your assets.
*Estate planning also includes ensuring all necessary documents, as detailed under “Important Document Location and Organization” section of the services offered, are in place. BRPS Consulting can advise on which documents are recommended and can refer to lawyers / financial advisors / tax advisors / real estate brokers / insurance brokers, etc. for the documents / advice that BRPS Consulting is not licensed to provide.