Articles Tagged with NYC elder law estate planning

Newly proposed IRS regulations meant to curb common estate and gift tax planning tactics is being met with a firestorm of resistance from financial advisers and estate planners across the country. The proposed regulations (REG-163113-02) place limitations on the use of current valuation discounts that reduce the overall value of assets in family-owned businesses, thus lowering a decedent’s estate and gift tax liability at the time of death. The IRS hope to achieve this end by disregarding restrictions that enabled taxpayers to use these discounts in the past.

Wealth Preservation In Closely Held Businesses

Currently, interests in closely held businesses are not taxed the same as other property interests due to their illiquid nature. Many tax and estate planners put a family’s assets in a closely held business to reduce their estate and gift tax liability. While this is a boon for many families seeking to preserve their wealth, others argue that what started out as a helpful tax break for legitimate family businesses is being abused and exploited by those who have no legitimate use of it.

Nearly 55% of American adults die without a will or estate planning documents. This lack of planning can cause years of stress and heartache for your surviving family members and heirs. If you die without an estate plan in place, your family may be subject to:

  • Attorney expenses and court costs,
  • Wasted time and frustration, and

Minnesota Judge Shows No Urgency To The Detriment Of The Estate

Carver County District Judge Kevin Eide has announced that there will be no quick decisions in who will be inheriting from the late superstar according to USA Today. The probate judge in charge of the legal proceedings surrounding Prince’s estate has further indicated that due to the complexity of the case, the multiple claims and questions of parentage, the judge may forward his eventual decision to an appellate court of immediate review, a process that will only drag out the proceedings even longer.

The judge’s decision to take it slow comes despite urgings by the claimants to come to a speedy resolution. The claimants have good reason for hoping to close out the probate estate and settling matters: every day that the estate is in probate, the estate is losing money. While the probate proceedings are going on, Prince’s assets are effectively frozen. For an estate as big as Prince’s that includes quite a lot.

It seems that Muhammad Ali’s estate is destined for trouble, similar to other celebrity estates that we have covered on this blog recently. It is unknown if the boxing legend died with a will, but even if he did, a will contest may be likely. Forbes reports that Mr. Ali died with an estate worth in between $50 and $80 million, had nine recognized children, four different marriages, and struggled with a debilitating disease that affects the mind. These are the circumstances that set the stage for a drawn out estate contest.

Troublesome Children

The large amount of children Mr. Ali had, as well as his four marriages, makes the number of people who may have an interest in contesting Mr. Ali’s estate quite high. One child in particular, Muhammad Ali Jr., has been estranged from his father since Mr. Ali’s fourth and final marriage in 1986 and has been cut off from the family fortune ever since. Ali Jr. in particular blames Mr. Ali’s fourth wife for driving him and his father apart.

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