Khan & Yau, PC Reliable & Responsive New York City Attorneys

August 2016 Archives

A family limited partnership can be a smart estate planning tool

The family limited partnership, a popular estate-planning tool, may have a limited lifespan, at least in its current form. Specifically, the U.S. Treasury Department has proposed regulations that may limit some types of transfers available under the option.

Does a revocable living trust change your tax liabilities?

Why doesn’t creating a living revocable trust change an individual’s tax liabilities? Here’s why: the IRS functionally views ownership as whether an individual has control over an asset. With a revocable trust, the same individual holds all the legal positions: trustor, trustee and beneficiary. From a tax perspective, nothing changes while the individual is alive. That means the he or she will continue to file Form 1040 income tax returns as usual; no special tax return is required during the individual’s lifetime.

Step 1 of creating an estate plan: advanced health care directive

For those new to the estate planning process, a logical question may be where to start. Ultimately, a comprehensive estate plan should include a variety of documents. At a minimum, a typical plan might include an advanced health care directive and durable power of attorney, a will, a revocable trust, and a financial power of attorney. In this four-part blog series, we’ll look at each of these documents in turn.

Tips for viewing the big financial picture in divorce

“Wanting to get the whole thing over with” may be a common sentiment in divorce. However, a recent article reminds us why a divorce should be viewed as a business transaction, rather than an emotional obstacle or turning point.