FOR BREAKING NEWS VISIT www.queenscourier.com SEPTEMBER 5, 2013 • HEALTH • THE QUEENS COURIER 61 Hospital for Special Surgery, with Physician Office in Queens, Ranked No. 1 in Orthopedics by U.S. News & World Report I CAN HEAR THE LEAVES UNDERFOOT Call today to schedule an appointment 516.708.4844 st $500 trade-in PLLC of the 2013 2013 st Gandolfini’s Giant Estate Tax Error The recent death of James Gandolfini was sudden and completely unexpected. His abrupt departure saddened many, including surviving family members, fellow actors, colleagues and adoring fans. When a beloved family member dies, the loss is deep and palpable and sometimes coping with mundane matters is quite difficult. Unfortunately, Mr. Gandolfini’s poor estate planning prior to his demise has added insult to injury. No one anticipates dying prematurely, so his lack of adequate planning is understandable, but it also underscores how imperative it is to engage in estate planning when one is healthy and vital. Mr. Gandolfini died with an estate worth an estimated $70 million. According to news reports, his last will and testament left about 80 percent of his estate unprotected against estate taxes. The tax rate, considering both Federal and state, could equal approximately 55 percent. While it would have been impossible to avoid estate taxes entirely, there are certain measures that could have been taken in order to minimize the tax burden. Mr. Gandolfini’s will was fairly straightforward. He made provisions for his personal property and his house and land in Italy and he left approximately $1.6 million to friends and relatives. The remainder of his estate was divided amongst four beneficiaries: 30 percent to each of his two sisters, 20 percent to his wife and 20 percent to his daughter. There are two provisions that are key to federal estate tax planning which help minimize or avoid the imposition of estate taxes. Firstly, under current law, each person is entitled to pass $5.25 million free of taxes. Second, a person can also pass an unlimited amount to his/her surviving spouse. By only leaving 20 percent of his residuary estate to his surviving spouse, Mr. Gandolfini did not take full advantage of the unlimited marital deduction. Presumably, part of the reason that Mr. Gandolfini did not leave a larger portion of his estate to his wife is because she is not the mother of his son, Michael. When a married couple shares the same children, the typical strategy is to maximize estate tax savings by leaving everything to the surviving spouse (even the allowable credit of $5.25 million passes into a trust for the lifetime benefit of the spouse) and the children are the eventual beneficiaries after both parents pass away. When a second marriage is involved, the respective spouses are reluctant to leave everything to each other because of the fear that the money will ultimately not end up in the hands of their own children. Even in these types of cases, however, the use of a marital trust can allow for the unlimited marital deduction while simultaneously ensuring that when the surviving spouses dies, the children of the decedent’s first marriage will inherit the main portion of the estate. Marital trusts are a common planning device for people in second marriages but no such trust was present in Mr. Gandolfini’s will. Further, the estate tax can also be reduced by any charitable contributions. Had he realized that a vast amount in taxes would be due on his demise, Mr. Gandolfini may have opted to benefit various charities or other non-profit causes. Clearly, most of us do not have estates valued at $70 million. Nonetheless, the important lesson to learn here is for every person to engage in advance planning. Individuals should make sure to plan for death and/or incapacity when they are vital and of sound mind. This planning cannot remove the pain resulting from the loss of a loved one, but it can certainly ease the way. 1-877- ELDER LAW 1-877-ESTATES Queens • Long Island • Manhattan • Brooklyn attorney advertising Hospital for Special Surgery (HSS), which has a Physician Office in Fresh Meadows, has been named the top hospital in the nation for orthopedics by U.S. News & World Report in its recently released “Best Hospitals” issue. “We are proud to be recognized nationally as the best in our specialized field,” said Louis A. Shapiro, president and CEO of Hospital for Special Surgery, which is located on Manhattan’s Upper East Side. “Our hospital staff consistently meets Hospital for Special Surgery in Manhattan and exceeds the high standards that we set for ourselves to provide unsurpassed care and outcomes.” A number of highly specialized physicians see patients at Hospital for Special Surgery’s Queens Office, located on Union Turnpike in Fresh Meadows. It’s a convenient location with ample parking for Queens residents who prefer to see doctors affiliated with the highly rated hospital closer to home, without making the trip into Manhattan. Many Queens residents know HSS as the hospital for professional sports teams, including the New York Mets, the New York Football Giants, New York Knicks, New York Liberty, New York Red Bulls and New York Lizards. In the U.S. News and World Report survey, Special Surgery also ranked as a leader in rheumatology at No. 4 in the nation. The hospital has been among the top ranked institutions in orthopedics and rheumatology for the past 23 years. For more information about HSS Queens, visit www.HSS.edu/Queens. gbaudiology.com THE QUEENS QueensCourier.com Place credit toward the purchase of an AGX5, 7, or 9 hearing system. Expires 9/30/13. 107 Northern Blvd, Ste 309 • Great Neck, NY Gloria Boms, Au.D. Doctor of Audiology WINNER BEST AUDIOLOGIST DR. GLORIA BOMS of the THE QUEENS QueensCourier.com Place
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