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QC12112014

48 The QUEE NS Courier • december 11, 2014 for breaking news visit www.queenscourier.com Community expresses mixed feelings on city-commissioned sculpture in LIC BY ANGY ALTAMIRANO aaltamirano@queenscourier.com/@aaltamirano28 Beauty is in the eye of the beholder. But for one community s The Elder Law Minute TM It’s That Gifting Time of Year By Ronald A. Fatoullah, Esq. and Debby Rosenfeld, Esq. As the month of December is upon us, many of us get caught up with end of year planning. There are various techniques individuals can engage in that will ultimately serve to either eliminate or reduce their overall estate and gift taxes. Now is the time to address this planning rather than waiting until the eleventh hour. Possibly the most common planning opportunity is to take advantage of the $14,000 annual gift. Currently, Federal estate and gift taxes are imposed on estates that exceed $5,340,000. Due to an adjustment for inflation, this amount is going up to $5,430,000 in 2015. When a person dies, his estate will be subject to a federal estate tax if the value of the estate exceeds this amount. When the estate tax return is filed, gifts that were made during the decedent’s lifetime are added to the value of what remains in his name. Accordingly, if a person dies with $4,000,000 in his estate but, during his lifetime, he had gifted $2,000,000 (as reflected on gift tax returns filed during his lifetime), his estate will be taxed because the value of his estate exceeds $5,340,000. This issue could have been avoided if the person had taken advantage of the $14,000 annual exclusion. The annual exclusion allows individuals to gift up to $14,000 to an unlimited number of individuals in a given calendar year. These gifts do not require the filing of any gift tax return on the part of the donor. Married couples may gift up to $28,000 to each recipient, if each spouse gives the maximum amount individually (i.e., they each give $14,000) or if they agree to split joint gifts on their tax return (i.e., one gifts $28,000 and it covers both spouses’ exemption). For example, if a husband and wife have four married children and four grandchildren, they can gift a total of $336,000 in one year (12 times $28,000). In fact, if the couple makes these gifts in December, 2014, they can also take advantage of the following year’s exemption and gift the same amount to the same recipients in January, 2015. In the course of a two month period (December, 2014 and January, 2015), the couple will have reduced their taxable estate by $672,000! Individuals with large estates can utilize these techniques to reduce the value of their estates over a period of time. Any gift made by a check will be considered complete only if it is cashed before the end of the year. People who are interested in elder law creating or adding to a 529 Plan for the purpose of covering a child or grandchild’s education should make sure to make a contribution before the end of the year. Another gifting strategy that many are unaware of is the ability to pay for another individual’s medical or educational expenses. If the payments are made directly to the institution, such as a university or medical facility, there is no limitation on the amount. Such a gift is not limited to the annual THE COURIER/Photo by Angy Altamirano At the recent Community Board 2 meeting, the city’s Department of Cultural Affairs presented the newest project for the Percent for Art program. exclusion of $14,000 and does not count against the donors’ annual or lifetime gifting limits. Be aware that your state may impose an additional gift or estate tax. For example, although New York State does not impose a gift tax, if a New York State resident dies with an estate that exceeds $2,062,500, an estate tax will be imposed. Accordingly, even if the federal estate is not a concern because the value of one’s assets is far less than the current $5,340,000 exemption, it would still make sense to engage in lifetime annual gifting in order to avoid New York State’s estate tax. However, in New York, certain gifts made within three years of a person’s death will be brought back into the estate. Gifting aside, it is also important for anyone with capital gains to seek the assistance of an accountant in order to offset any gains with appropriate losses. In this regard, it is essential to consult with your financial advisor to review your portfolio, take appropriate losses, and to make sure that your assets continue to be managed in accordance with your financial goals and risk tolerance. And, finally, it is also prudent to meet with your estate planning attorney to review your will and/or trust and ancillary documents in order to make sure that they are current and reflect your wishes. Ronald A. Fatoullah, Esq. is the principal of Ronald Fatoullah & Associates, a law firm in New York City and Long Island that exclusively concentrates in elder law, estate planning, Medicaid planning, guardianships, estate administration, trusts, wills, and real estate. Debby Rosenfeld, Esq. is a senior staff attorney at the firm. The law firm can be reached at 212-751-7600 or toll free at 1-877-ELDERLAW or 1-877-ESTATES. Mr. Fatoullah is also the co-founder of JR Wealth Advisors, LLC, a wealth management firm with offices in New York City, Long Island and Los Angeles, CA. The wealth management firm can be reached at 800-353-3775. ROnald Fatoullah, ESQ, CELA* in Long Island City, a bright pink statue that would stand more than 8 feet tall just might not fit their vision of beauty. At the recent Community Board 2 meeting, the city’s Department of Cultural Affairs presented the newest project for the Percent for Art program that is being commissioned for Jackson Avenue and 43rd Avenue. Since 1982, the city’s Percent for Art law has required that one percent of the budget for eligible cityfunded construction projects be spent on public artwork. For this commission, the agency selected Brooklynartist Ohad Meromi and at the Dec. 4 board meeting, the community got a preview of what is being proposed for the Long Island City site. Meromi’s proposed sculpture is an 8.5-foot-tall, bright pink piece called “The Sunbather” which is shaped as a human figure. About $515,000 of city tax dollars will go toward the construction of the piece, made of bronze. Although Meromi said he is “excited for the opportunity” to sculpt the piece, community board members and residents at the meeting brought up issues such as the community at large not having had the opportunity to give their input on the sculpture earlier and also the color just being a little too much. “I personally do like the art,” said Moitri Chowdhury Savard, a community board member. “But I think the bright pink color and the size of it has been brought up by many residents of the community as too much for the area. I think it might be a little too much for a lot of the residents there.” Resident Christian Amez, also a member of the organization Woodside on the Move, said he also wished the community could have been more well-represented earlier in the process. They also would have liked it if a local artist could have been chosen. According to Sarah Reisman, director for Percent for Art, the agency presented a rough draft of a rendering to the community board’s land use committee first, and members of the board were invited. Reisman also added that about 40 artists, including local Long Island City artists, were presented to a panel that later picked finalists. After finalists presented proposals, Meromi, who has presented pieces at the SculptureCenter and MoMA PS1, was chosen. The sculpture’s size and color are still not finalized, but a permanent piece by Meromi is expected to be located at the site. “I really thought the site could use color,” Meromi said about the color selection of the sculpture. “I think pink is bold and the site could use something bold.” Now the agency will take the comments from residents and the community board comments and go back to the renderings of the sculpture. Then, the agency will present a conceptual design to the public design commission at City Hall. “We want to know what you think, take it to consideration and take it to the design commission,” Reisman said. “We’re here to listen.”


QC12112014
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