Adler & Adler Blog

If you are a citizen or resident of the United States, you must file a gift tax return (whether or not tax is due) if you gave gifts to someone in 2020 totaling more than $15,000 (other than to your spouse). Certain gifts, called future interests, are not subject to the $15,000 annual exclusion and…

The primary reasons for making a will are: (1) to leave your property to those about whom you care in the manner and proportions you choose; (2) to choose the person(s) you want to handle your estate (i.e., executors and trustees); (3) to name a guardian for your minor children; (4) to determine how assets…

The origin of estate planning as an active force in asset conservation can be traced back to the 15th century and the English feudal system. Under that system, the primary property owner or lord of the manor, in exchange for a lifetime of faithful service and allegiance, allowed individuals to hold legal title to portions…

While virtually every American is familiar with the federal income tax, the U.S. Internal Revenue Code contains another system of taxation related to individual wealth: the taxation of the passage of wealth through gratuitous transfers of property by individuals. This overall area of federal taxation is embodied in three separate, but interrelated “taxes”: the estate…

Why do closely held corporations impose restrictions on the transfer of stock? 1. The owners of the business may desire to limit who can become a partner in the business. This is typical where the company is family-owned. Allowing an outsider non-family member is often unappealing to the original stockholders. 2 Venture capital firms and…

In a common law state (like New York State), an individual whether married or single, is a separate individual with separate legal rights to property and separate tax obligations. Common law states are typically referred to as “separate property” states. In a community property state (like California) a married couple each owns an undivided one-half…

A traditional Individual Retirement Account (IRA) is subject to rules that require withdrawals, known as Required Minimum Distributions (RMDs) at age 72. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (‘‘CARES Act”) was enacted in response to the coronavirus pandemic. Under the CARES Act, RMDs for IRAs are waived for calendar…

It is important to review your estate plan at regular intervals. While every family situation is different, it is generally advisable to review your estate plan at least every three to five years or sooner if any of the following events are applicable to your situation: Reviewing your estate plan regularly (and when major life…

In New York State organizers form a limited liability company (LLC) by filing Articles of Organization with the Department of State. Any person or business entity may be an organizer. The next step is very important: LLC members must enter into an operating agreement, which sets forth the rights of the members and the rules for…

A testamentary trust is a trust contained in a will. A will can contain one or many testamentary trusts each serving its own unique purpose. For example, a testamentary trust can be created to manage the inheritance of a minor child, or manage the inheritance of an individual with disabilities, or even manage the inheritance…