On behalf of Riefberg, Smart, Donohue & NeJame, P.C. posted in Estate Planning on Tuesday, May 15, 2012
In many cases, when a pet-owner dies, an animal is left without a caretaker. Danbury pet lovers will be glad to know that effective estate planning can ensure that their beloved companions aren't abandoned after the masters pass.
Pets have become an increasingly important part of many peoples' lives. Accordingly, many owners want to make sure that their pet is not sent to a shelter for lack of care for whatever reason. Although most states consider pets to be a form of property, and thus unable to inherit, there are estate planning strategies that allow assets to be devoted to the care of a surviving pet.
On behalf of Riefberg, Smart, Donohue & NeJame, P.C. posted in Estate Planning on Monday, May 7, 2012
In Connecticut and across the country, many people hope to pass down their religious beliefs to their children and grandchildren. In some cases, people worried about their children straying from the flock have included will provisions making their beneficiaries' inheritance contingent on practicing or marrying within a particular faith.
While this kind of estate planning may provide some peace of mind, strict provisions that disinherit heirs who marry outside the faith or leave the church can lead to bitter family disputes. They may also do nothing but spark negative reactions to the faith one seeks to pass on.
On behalf of Riefberg, Smart, Donohue & NeJame, P.C. posted in Estate Planning on Thursday, May 3, 2012
People in Connecticut and beyond usually do not like planning for their death. However, death is an inevitable part of life, and estate planning should be a critical part of that.
Although there are many different ways to provide for loved ones after death, a life insurance policy may be an option for people to explore.
On behalf of Riefberg, Smart, Donohue & NeJame, P.C. posted in Inheritances on Friday, April 27, 2012
According to the Center on Wealth and Philanthropy at Boston College, over the next 50 years potential heirs are set to receive the largest transfer of money in the history of America, more than $41 trillion. Much of the wealth may pass onto already affluent beneficiaries who are aware how to manage their finances, but Connecticut readers living paycheck to paycheck may not be aware of the risks their newfound inheritance holds.
A beneficiary's first impulse may be to cash out the individual retirement account inherited and use it to pay off their mortgage. However, it is possible they are not aware that the increase in income pushes them up to a different income tax bracket and will lead to increased taxes. Financial professionals suggest looking into options that could allow the beneficiary to withdraw money from the account and defer it from taxes, depending on the heir's life expectancy.
On behalf of Riefberg, Smart, Donohue & NeJame, P.C. posted in Inheritances on Friday, April 20, 2012
An Independent Retirement Account is a smart way to save for retirement and minimize income taxes. But when it comes to estate planning and income tax minimization for heirs and beneficiaries, an IRA is a great way to pass those benefits to your heirs. Danbury residents would be wise to understand the advantages of inheriting an IRA when creating an estate plan or investing an inheritance.
The current rules allow a person who has inherited an IRA to make withdrawals over the remainder of their life. This potentially allows the assets in the IRA to increase in value, tax deferred, over several decades. However, many beneficiaries simply cash out the account once they inherit it because they are unaware of these tax advantages.
On behalf of Riefberg, Smart, Donohue & NeJame, P.C. posted in Estate Planning on Friday, April 13, 2012
Months after Amy Winehouse died unexpectedly, her multi-million dollar estate has been settled. Because the British singing sensation did not leave a will, all of her assets, valued at $4.66 million after taxes and debts, will go to her parents. The 27-year-old's untimely death underscores the importance of estate planning for young people.
Although Winehouse's estate was administered in her home country of England, the result would have been similar if it had been administered in Connecticut or anywhere else in the United States. When a person dies without a will, legal issues can arise. It is for that reason why most legal professionals recommend that every individual have a will.
On behalf of Riefberg, Smart, Donohue & NeJame, P.C. posted in Estate Administration on Wednesday, April 4, 2012
Connecticut art and culture enthusiasts will be glad to hear that after a difficult five years, the estate of socialite and philanthropist Brooke Astor has finally been settled. The long-awaited settlement highlights the value of estate planning and the difficult dynamics that can arise during estate administration.
According to the Wall Street Journal, notable recipients of the settlement include the Metropolitan Museum of Art, which will receive $20 million from Mrs. Astor's estate, and the New York Public Library, which stands to receive $15 million. Additionally, a fund of $30 million will be devoted to improving education in New York.
On behalf of Riefberg, Smart, Donohue & NeJame, P.C. posted in Heirs & Beneficiaries on Wednesday, March 28, 2012
Recently, a few high profile examples have demonstrated how clever estate planning can translate into huge tax savings for heirs and beneficiaries. But these strategies are not reserved solely for the ultra-wealthy. With the gift tax likely set to revert to 2001 levels at the start of 2013, Connecticut families may want to determine how they stand to benefit from strategic succession planning or trust administration.
Max Levchin, co-founder of Paypal and current chairman of Internet review site Yelp, recently avoided paying taxes on over $10 million in profit he earned by selling 3.1 million shares of Yelp stock. How? The stock was held in a Roth IRA, which means Levchin will never have to pay taxes on his earnings if he waits until age 59 ½ to pull them out.
On behalf of Riefberg, Smart, Donohue & NeJame, P.C. posted in Probate Litigation on Wednesday, March 21, 2012
Last week, we discussed Britney Spears' conservatorship. Now the same judge that oversees her conservatorship must decide whether or not a conservator should be appointed for famous actress Zsa Zsa Gabor.
The 95-year-old actress suffered multiple setbacks in recent years that have left her confined to her bed. She broke her hip and was forced to have one of her legs amputated. Her 68-year-old husband has been caring for her, but Gabor's daughter is concerned that he is mishandling her finances. She filed a petition for a conservatorship on Mar. 20.
On behalf of Riefberg, Smart, Donohue & NeJame, P.C. posted in Probate Litigation on Wednesday, March 14, 2012
Conservatorships are used to protect vulnerable adults in Connecticut and beyond. They are more common among the elderly who suffer from diseases or conditions that prohibit them from making decisions for themselves. However, it appears that one celebrity may be using the system to shield herself from various lawsuits.
Britney Spears' father was granted conservatorship in 2008. Since then, Britney has relied on him to make all of her legal decisions for her. Although she cannot decide where to live or what she spends her money on, she has credited her father with saving her life. In addition, the conservatorship has been beneficial in the wake of numerous lawsuits.
