52 The QUEE NS Courier • business • may 23, 2013 for breaking news visit www.queenscourier.com business s BANK SHOWS SUPPORT FOR BREAST CANCER VICTIMS AND SURVIVORS THE COURIER/Photos by Mike DiBartolomeo Bosom Buddies, an organization dedicated to supporting breast cancer victims and survivors, partnered with Atlantic Bank to hold a cocktail reception at the Bell Boulevard branch on May 10. With free admission and complimentary food and drinks, donations from attendees were encouraged, said Bosom Buddies founder Darcy Novick. Novick said she hopes the event will help promote breast cancer awareness throughout the community. Adina Monokrousos, branch manager at Atlantic Bank; Theodora Goulas; administrative assistant, Premier Banking Management Associate at Atlantic Bank; Gina Zias of Bosom Buddies; Matilda Economou, Asst. VP at Atlantic Bank; Darcy Novick, founder of Bosom Buddies and breast cancer survivor; and Nancy Papaloannou, Sr. VP at Atlantic Bank. The Elder Law Minute TM Proposed changes to estate and gift taxes By Ronald A. Fatoullah, Esq. and Stacey Meshnick, Esq. President Obama’s proposal for the 2014 budget highlights the need for proper estate planning. Currently, the federal estate and gift tax elder law ROnald Fatoullah ESQ, CELA* lifetime exemptions are at $5.25 million ($10.5 million for a couple). This means that an individual’s estate will not be taxed by the federal government if it is within those limits. Therefore, a couple with assets of under $10.5 million will not have a federal estate tax imposed provided proper planning is done. Further, a gift tax will not be imposed if gifts are made within those limits. However, as we all know, laws are subject to change and the President is proposing a decrease in the lifetime estate tax exemption to $3.5 million, as well as a decrease in the lifetime gift tax exemption to $1 million. His proposals also include an increase in the highest estate and gift tax rates from 40% to 45%. Although we don’t know whether the President’s proposals will become law, individuals should engage in planning as soon as possible so that gift and estate savings may be maximized. Many of our clients still believe that they can gift only the annual exclusion amount (currently $14,000 per recipient), but these annual exclusion gifts can be made over and above the aforementioned $5.25 million federal exemption limit. In other words, annual exclusion gifts of $14,000 or less per recipient per calendar year do not use up any of the lifetime allowances. This misconception about gifting results in people retaining their assets and only giving away small amounts each year. However, if one gifts more than the $14,000 annual exclusion (potentially up to the current $5.25 million limit) prior to the potential enactment of Obama’s proposals, the assets will be out of the estate and thus estate taxes may be avoided. Furthermore, one must take into consideration cost basis issues that can result in significant capital gains tax (income tax) upon the sale of gifted assets. A competent estate planning attorney will conduct a comprehensive cost/benefit analysis of capital gains and estate taxes and will devise an appropriate plan. An estate planning attorney may recommend various techniques in order to reduce or possibly eliminate estate and/ or gift taxes. For example, trusts, family limited partnerships, limited liability companies, etc. may be created to reduce taxes. These techniques often enable lower valuations of assets to be gifted. For example, an asset valued at $2 million dollars could be valued at only $1,400,000 for gift tax purposes, which could result in significant tax savings down the road. It is important to note that this article addresses only federal gift and estate taxes. New York State imposes an additional estate tax, and the exclusion is only $1 million. Fortunately, the estate tax rate is significantly lower than the federal rate. New York does not currently impose a gift tax. It is important to review your assets with an estate planning attorney and, depending on your age and life expectancy, evaluate potential appreciation of those assets during your lifetime, consider gifting the assets, and consider executing documents that will minimize or eliminate estate tax upon your death. Ronald A. Fatoullah, Esq. is the principal of Ronald Fatoullah & Associates, a law firm that exclusively concentrates in elder law, estate planning, Medicaid planning, guardianships, estate administration, trusts and wills. The firm has offices in Forest Hills, Great Neck, Manhattan, Brooklyn, and Cedarhurst, NY. This article was co-written by Stacey Meshnick, Esq., senior staff attorney at the firm who has chaired the firm’s Medicaid department for over 15 years. Ronald Fatoullah & Associates can be reached by calling (718) 261-1700, 516-466-4422, or toll free at 1-877-ELDER-LAW or 1-877-ESTATES. Matilda Economou; Adina Monokrousos; Theodora Goulas; Nancy Papaloannou; Darcy Novick; and Eleni Belitsis; Business Operations Coordinator. Maria Kokinakis making a donation to Eleni Belitsis.
QC05232013
To see the actual publication please follow the link above