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By Britt Burner, Esq.

Britt Burner Esq.

For those who pass away in 2025, the federal estate tax exemption stands at $13.99 million per individual—or nearly $28 million for a married couple. This historically high exemption is a result of the 2017 Tax Cuts and Jobs Act (TCJA), which temporarily doubled the prior $5 million exemption (indexed for inflation).

But there’s a catch: the increased exemption is set to expire at the end of 2025. Without congressional action, the exemption will revert to approximately $7 million per person, adjusted for inflation. This change is already written into the law, so unless Congress intervenes, the reduction is inevitable.

What can be done? Estate planning strategies will vary based on a number of factors, including the types and total value of assets, family structure, access and control considerations, and intended beneficiaries. However, there are several proactive steps individuals can consider now to take advantage of the current exemption before it sunsets:

Because the federal exemption applies to both lifetime gifts and assets transferred at death, one effective strategy is to gift up to the full exemption amount before the end of 2025. Gifting $13.99 million in 2025 removes that amount from your taxable estate, and the IRS has confirmed it will not be “clawed back” later, even if the exemption is reduced.

These gifts can be made to irrevocable trusts specifically designed to protect assets and control how they are used by beneficiaries. Depending on the trust’s terms, beneficiaries may include children, grandchildren, charities, or even a spouse.

In addition to the lifetime exemption, individuals can gift up to $19,000 per recipient in 2025 without affecting their lifetime exemption. These annual exclusion gifts are a simple and effective way to gradually reduce the taxable estate over time. Making charitable gifts, whether made during life or at death through a will, trust, or beneficiary designation, can further reduce your taxable estate while also meeting your philanthropic goals.

For New York residents, planning must address both federal and state estate taxes. Unlike Florida, which has no state estate tax, New York currently imposes estate tax on estates exceeding $7.16 million per person. Importantly, New York does not offer “portability,” meaning a surviving spouse cannot use the unused exemption of a deceased spouse.

To preserve the state exemption, planners often recommend a credit shelter trust (also called a bypass trust). This allows assets up to the exemption amount to be held outside the surviving spouse’s estate, thereby reducing the combined estate tax liability for the family.

Plan now! Even for estates that may not be taxable today, planning ahead can provide significant tax savings and peace of mind. For high-net-worth individuals, early planning is especially critical. While some strategies may require a “wait and see” approach, having a team in place—including a trusts and estates attorney, accountant, and financial advisor— ensures that you are ready to act quickly once the future of the federal exemption becomes clear.

Britt Burner, Esq. is a Partner at Burner Prudenti Law, P.C. focusing her practice areas on Estate Planning and Elder Law. Erin Cullen is a graduate of the Maurice A. Dean School of Law at Hofstra University. Burner Prudenti Law, P.C. serves clients from New York City to the east end of Long Island with offices located in East Setauket, Westhampton Beach, Manhattan and East Hampton.

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By Michael Christodoulou

Michael Christodoulou

Until recently, if you received a pension from a job that did not pay into Social Security and you’ve also worked in a job that did, your Social Security benefits at retirement were reduced based on your pension income. 

As of Jan. 5, 2025, that’s no longer the case, thanks to the Social Security Fairness Act. Now, you’ll receive both your pension and your fully earned Social Security benefits because the Act repealed the Windfall Elimination Provision (WEP).

This new law also repealed the Government Pension Offset (GPO) provision which had reduced spousal or survivor Social Security benefits for people employed in government jobs. These benefits will be increased in 2025. 

There are nearly 3 million people who, depending on their situation, may see their benefits increase – from very little to $1,000 a month or more. Those impacted fall into these professional categories: teachers, firefighters, and police officers in many states; and federal employees covered by the Civil Service Retirement System. 

The Act is retroactive to January 2024, and the Social Security Administration paid an additional lump sum benefit to affected people in March 2025. Going forward, most monthly income “raises” appear on April checks (for March benefits). A few more complex cases may take a little longer.

A word of caution — beware of scammers. The Social Security Administration doesn’t tend to call, email or text; they’ll send a letter regarding changes to your retirement benefits. And they will never ask you to pay for assistance or to have your benefits started, increased, or paid retroactively. But you can call the SSA at 800-772-1213 to ask if your retirement benefits have changed.

Plan for your increased retirement income 

Of course, everyone’s needs are different, so there’s no one “right” way to handle a lump sum benefit or a monthly raise in income. But here are a few suggestions:

Pay off some debts. If you have credit card debt a car or student loan, you may want to pay it down, or even pay it off. 

Invest in an individual retirement account (IRA). If you still have “earned” income – from wages, salaries, tips, bonuses, commissions, self-employment earnings or long-term disability payments – you can contribute from these sources to an IRA. There are tax benefits and an array of investment choices, so it’s an excellent way to build resources for retirement.

Save for college. If you have children, or grandchildren, who have college in their plans, you might want to put some money into a college savings vehicle, such as a 529 plan, which provides tax benefits and gives you great flexibility in distributing the money.

Build an emergency fund. If you don’t already have an emergency fund with three to six months of living expenses, you can work on that. Keep the money in a liquid, low-risk account, so that it’s readily available to pay for unexpected costs. Without such a fund, you may be forced to tap into your long-term investments.

Above all, you may want to get some help. A financial professional can recommend ways of using the money to help you meet your goals. Take any recent government correspondence that shows how your retirement benefits have changed so you can build or review your retirement income strategies. If you’re thoughtful about how you put your new income to work, you’ll be doing yourself, and your retirement, a favor.

Michael Christodoulou, ChFC®, AAMS®, CRPC®, CRPS® is a Financial Advisor for Edward Jones in Stony Brook, Member SIPC.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

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By Hon. Gail Prudenti, Esq.

Hon. Gail Prudenti, Esq.

Contesting a will can be a complex and sensitive decision, often fraught with emotional implications and legal challenges. Understanding when to object to a will is crucial for anyone who believes that the document does not accurately reflect the deceased’s intentions or who has concerns about the will’s validity. Here are key considerations for when a person may choose to object to a will.

Lack of testamentary capacity

One of the most common grounds for contesting a will is the assertion that the deceased lacked the mental capacity to understand what they were doing when they executed the will. If you believe that your loved one was not of sound mind—due to conditions such as dementia, severe illness, or mental incapacity—at the time the will was created, this may warrant an objection.

Undue influence

If you suspect that the deceased was coerced or manipulated into changing their will in favor of another person, this could be a valid reason to contest the will. Evidence of undue influence may include a significant change in the will that benefits a caregiver or a family member who had undue access to the decedent, especially if the decedent had previously expressed different intentions.

Fraud

If the will was procured through fraudulent means—such as misrepresentation about the contents of the will, deception regarding the nature of the documents, or coercive tactics— this may provide grounds for contesting it. If you believe that fraud was involved, it is essential to gather evidence to support your claim.

Improper execution

In many jurisdictions, including New York, there are specific legal requirements for executing a valid will. This typically includes proper signing and witnessing. If the will does not meet these legal standards—such as being signed by the testator in the presence of two witnesses—this could be a reason to object.

Revocation

If you have evidence that the deceased revoked the will prior to their death—perhaps through a later will or other direct actions indicating their intent to change their estate plan—this could justify an objection. Establishing the revocation of a previous will is critical in this scenario.

Disqualification of beneficiaries

Certain individuals may be disqualified from inheriting under a will due to their actions, such as felonies committed against the deceased or being an estranged spouse. If you believe that a beneficiary should not have been included in the will based on legal grounds, this may be a reason to object.

Timeframe for objection

In New York, for example, you generally have **seven months** from the date you receive notice that the will is being probated to file your objections, as outlined in **SCPA § 1410**. Failing to act within this timeframe could result in losing your right to contest the will, so it’s crucial to be aware of deadlines.

Consulting an attorney

If you are considering contesting a will, consulting with an attorney who specializes in trusts and estate litigation is highly advisable. An experienced attorney can help you evaluate the strength of your case, gather necessary evidence, and navigate the legal complexities involved in the contestation process.

Deciding to object to a will is a significant decision that should not be taken lightly. Understanding the grounds for contesting a will and the appropriate legal procedures is essential. 

Whether due to concerns about capacity, undue influence, improper execution, or other factors, it is important to consult with a qualified attorney to ensure that your rights are protected and that you are acting in accordance with the law. By doing so, you can make informed decisions that honor the memory of your loved one while safeguarding your interests.

Hon. Gail Prudenti, Esq. is the Former Chief Administrative Judge State of New York and a Partner at Burner Prudenti Law, P.C. focusing her practice on Trusts & Estates. Burner Prudenti Law, P.C. serves clients from New York City to the east end of Long Island with offices located in East Setauket, Westhampton Beach, Manhattan and East Hampton.

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Some people look forward to filing their tax returns, while others recoil at the thought of paying what they owe. Regardless of which camp taxpayers are in, come April most people have a question or two related to their returns. As the deadline to file tax returns draws closer, taxpayers hoping to make the process as smooth as possible can consider these frequently asked questions and answers, courtesy of the Internal Revenue Service.

When is deadline day? Though taxpayers periodically get an extra day or two to file their returns when April 15 coincides with a holiday or lands on a weekend, there’s no such reprieve in 2025. This year all taxpayers who are not requesting an extension must file their income tax returns by April 15, 2025.

What if my address has changed? The IRS urges all taxpayers to use their new address when filing their returns. Additional ways taxpayers can update their address with the IRS is through the filing of Form 8822, Change of Address or Form 8822-B, Change of Address or Responsible Party-Business. Written statements or oral notifications are additional ways to notify the IRS of an address change, and these methods must include personal information, including the old and new address as well as the taxpayer’s Social Security number, Individual Taxpayer Identification Number (ITIN) or Employer Identification Number (EIN).

Is there an age limit on claiming my child as a dependent? A child must meet either the qualifying child test or the qualifying relative test in order to be claimed as a dependent. To meet the qualifying child test, your child must be younger than you or your spouse if filing jointly and either younger than 19-years-old or be a “student” younger than 24-years-old as of the end of the calendar year.

There is no age limit to claim a child as a dependent if a child is “permanently and totally disabled” or meets the qualifying relative test. In addition to meeting the qualifying child or qualifying relative test, you can claim that person as a dependent only if these three tests are met:

1. Dependent taxpayer test

2. Citizen or resident test, and

3. Joint return test

Taxpayers who remain uncertain about their eligibility to claim a child as a dependent are urged to contact the IRS or a tax preparation professional for clarification before filing their returns.

What should I do if my W-2 is incorrect? Employers must provide employees with a W-2 by January 31. If the W-2 is incorrect and has not been fixed by the end of February, taxpayers can contact the IRS and request to initiate a Form W-2 complaint. When such a request is initiated, the IRS sends a letter to the employer and requests that they furnish a corrected W-2 within 10 days. The IRS also sends a letter to the taxpayer with instructions and Form 4852, which can be used to file a return if a corrected W-2 is not provided before the filing deadline.

How can I file for an extension? There are three ways to request an automatic extension of time to file an income tax return.

1. You can pay all or part of your estimated income tax due and indicate that the payment is for an extension using your bank account; a digital wallet such as Click to Pay, PayPal, and Venmo; cash; or a credit or debit card.

2. You can file Form 4868 electronically by accessing IRS e-file using your tax software or by using a tax professional who uses e-file.

3. You can file a paper Form 4868 and enclose payment of your estimate of tax due (optional).

Tax day arrives on April 15. Taxpayers who have lingering questions about their returns are urged to contact the IRS via irs.gov or work with a certified tax professional.

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Hon. Gail Prudenti

Hon. Gail Prudenti, Partner at Burner Prudenti Law, P.C., has been appointed as the Chair of the Suffolk County Bar Association (SCBA) Judicial Screening Committee.

“This prestigious committee plays a vital role in maintaining the integrity and excellence of Suffolk County’s judiciary. Tasked with the responsibility of thoroughly evaluating the background, experience, and qualifications of candidates seeking judicial office, the committee ensures that only the most qualified individuals are recommended for these essential roles,” read a press release.

Comprised of 25 distinguished members, the Judicial Screening Committee represents a cross- section of legal expertise and professional dedication. These members are carefully selected by the SCBA President and Board of Directors to uphold the committee’s commitment to impartiality and rigor in the screening process.

“Hon. Gail Prudenti’s appointment to this leadership position reflects her exceptional career and unwavering dedication to the legal profession. Her extensive experience and steadfast commitment to justice will undoubtedly contribute to the committee’s important mission,” read the release.

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By Britt Burner, Esq.

Britt Burner Esq.

A trend that has continued on an upward trajectory for years is the use of “living trusts” in estate planning rather than relying on a last will and testament (“will”). While living trusts are a great tool for transferring assets at death, determining if a trust or a will is better for you is dependent on your assets, circumstances, and personal goals.  Every person is different and therefore every estate plan should be tailored to the individual.  

A will is a legal document dictating how your personal items and monetary assets should be distributed at death.  If you die with assets titled in your sole name with no beneficiary, these assets must pass through your will.  What does this mean?  Your will must go through a court proceeding known as probate. It is not until the proceeding is completed that the Executor, the person nominated in your will to be responsible for your estate, is legally appointed by the court.  While the probate is pending, there will be no authority for the Executor to collect or distribute your assets pursuant to the terms of your will.  

While a will is an excellent estate planning tool, there are some downsides to relying on this document and the probate process for your estate plan. As part of the process of probate, the next of kin must be notified.  This could create a problem if the next of kin includes an estranged family member or distant relative whose whereabouts are unknown. Additionally, any documents filed as part of the probate proceeding will become a public record.  

Another negative consequence is the time it takes to probate the will, creating a delay in the Executor’s power to administer your estate. Even the simplest probate proceedings can take 4 to 12 months. Lastly, if you own properties in multiple states, an ancillary probate proceeding will have to be completed in each of those states before the Executor can control those properties.

In New York, there has been a strong shift to trusts in recent years due to the drawbacks stated above. A trust, like a will, directs how assets are to be distributed at your death.  Unlike a will, a trust is a private document that does not need to be filed with the court, there is no requirement to notify your next of kin about the trust administration after death, and the Trustee can administer your trust immediately.  The trust can also hold real property in multiple states, eliminating the requirements of ancillary probate proceedings.  

There are many different types of trusts that serve different needs.  For example, a revocable trust may be used for the sole purpose of avoiding probate in multiple states, while an irrevocable Medicaid Asset Protection Trust is used to protect assets should you need to apply for Medicaid to assist with the costs of long-term care. There are also irrevocable trusts that are used to reduce one’s taxable estate, or supplemental needs trusts used to protect those who receive government benefits.

A review of your current estate plan with an estate planning and elder law attorney will help determine if your current plan accomplishes your goals or if a shift to trust planning will be better suited for your needs.

Britt Burner, Esq. is a Partner at Burner Prudenti Law, P.C. focusing her practice areas on Estate Planning and Elder Law. Burner Prudenti Law, P.C. serves clients from New York City to the east end of Long Island with offices located in East Setauket, Westhampton Beach, Manhattan and East Hampton.

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Sherry J. Sandler

Meltzer, Lippe, Goldstein & Breitstone, LLP (Meltzer Lippe) has announced that accomplished corporate attorney Sherry J. Sandler has joined the firm as a partner. A highly regarded leader in corporate law, Ms. Sandler brings unparalleled experience in financial and regulatory compliance, corporate governance, and capital markets transactions to the Long Island legal community.

Ms. Sandler’s distinguished career includes senior roles at leading financial organizations, including the New York Stock Exchange (NYSE), where she served as Senior Director and Associate General Counsel. She has also held prominent legal positions at KCG Holdings, Inc., Knight Capital Americas LLC, and Milbank, LLP, where she honed her skills in securities laws, M&A, and complex corporate governance matters.

During her tenure at the NYSE, Ms. Sandler advised on critical regulatory and compliance issues affecting equity and options exchanges, self-regulatory organizations (SROs), and federal SEC regulations. Her extensive experience equips her to navigate the intricate intersection of corporate law, securities regulation, and business strategy, offering clients unparalleled insights and solutions.

“We are thrilled to welcome Sherry Sandler to Meltzer Lippe,” said Managing Partner David Heymann. “Her extraordinary background and reputation place her among the top corporate attorneys in the region. Sherry’s addition enables us to expand our corporate finance offerings and deliver exceptional value to our clients—both locally and beyond—while maintaining the cost-efficiency of Long Island-based rates. Her vast experience strengthens our ability to serve a diverse client base with sophistication and foresight.”

The Huntington resident expressed her enthusiasm for joining Meltzer Lippe: “After years of working in New York City, I’m excited to bring my breath of experience to private practice and align with a firm that embodies an entrepreneurial spirit and forward-thinking culture. Meltzer Lippe’s commitment to high-level, sophisticated work and its collaborative environment resonates deeply with me. I look forward to contributing to the firm’s growth while achieving a balance that allows me to prioritize family and personal time.”

In 2023, Ms. Sandler served as General Counsel to several companies under her own Trading & Capital Markets, guiding Fortune 500 companies and financial institutions through regulatory complexities and strategic decisions. She has also served as Of Counsel to several law firms and as outside general counsel.

A magna cum laude graduate of Brooklyn Law School, Ms. Sandler is admitted to practice in New York and New Jersey. She is an active member of professional organizations including Women in Financial Markets (WIFM), the New York and New Jersey Bar Associations, and the Jewish Business Network (JBN) of Long Island.

Ms. Sandler, the daughter of Ukrainian immigrants and a first-generation college graduate, is fluent in Russian and serves on the Membership Committee of Temple Beth Torah in Melville.

About Meltzer Lippe

Meltzer, Lippe, Goldstein & Breitstone, LLP is a full-service law firm with offices in Mineola, New York City and Boca Raton, FL. The firm’s 80-plus attorneys represent businesses and individuals in over 15 practice areas. For more information, please visit www.meltzerlippe.com.

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By Michael Christodoulou

Michael Christodoulou

In life, you often get second chances — and the same is true with investing. To illustrate: You might not have been able to contribute to a Roth IRA during your working years due to your income level, but you may get that opportunity as you near retirement, or even when you are retired — through a Roth conversion.

Why is a Roth IRA desirable for some people? Here are the key benefits:

 Tax-free withdrawals 

You put in after-tax dollars to a Roth IRA, so you can withdraw your contributions at any time, free of taxes and penalties. And if you’ve had your account for at least five years and you’re at least 59½, you can also withdraw your earnings free of taxes.

No RMDs 

With a traditional IRA, you’ll have to start taking withdrawals — called required minimum distributions, or RMDs — when you turn 73, or 75 if you were born in 1960 or later. But there’s no RMD requirement with a Roth IRA — you can essentially leave the money intact as long as you like.

Tax-free legacy for your heirs 

When your heirs inherit your Roth IRA, they can withdraw the contributions without paying taxes or penalties, and if the account has been open at least five years, they can also withdraw earnings tax free.

But even if you were aware of these advantages, you might not have been able to invest in a Roth IRA for much of your life. For one thing, you might have earned too much money — a Roth IRA, unlike a traditional IRA, has income limits. Also, a Roth IRA has only been around since 1998, so, in the previous years, you were limited to a traditional IRA.

As you approach retirement, though, you might start thinking of just how much you’d like to benefit from a Roth IRA. And you can do so by converting your traditional IRA to a Roth. While this sounds simple, there’s a major caveat: taxes. You’ll be taxed on the amount in pre-tax dollars you contributed to a traditional IRA and then converted to a Roth IRA. (If you have both pre- and after-tax dollars in your traditional IRA, the taxable amount is based on the percentage of pre-tax dollars.)

If you have large amounts in a traditional IRA, the tax bill on conversion can be significant. The key to potentially lowering this tax bill is timing. Generally speaking, the lower your income in a given year, the more favorable it is for you to convert to a Roth IRA. So, for example, if you have already retired, but have not started collecting RMDs, your income may be down.

Timing also comes into play with the financial markets. When the market is going through a decline, and the value of your traditional IRA drops, you could convert the same number of shares of the underlying investments and receive a lower tax bill or convert more shares of these investments for what would have been the same tax bill.

Finally, you could lower your tax bill in any given year by stretching out your Roth IRA conversions over several years, rather than doing it all at once.

You’ll want to consult with your tax advisor before embarking on this conversion — but if it’s appropriate for your situation, you could find that owning a Roth IRA can benefit you and your family for years to come.

Michael Christodoulou, ChFC®, AAMS®, CRPC®, CRPS® is a Financial Advisor for Edward Jones in Stony Brook, Member SIPC.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

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By Britt Burner Esq.

Britt Burner Esq.

The holiday season is upon us!  Year-end often brings questions of gifting, whether it be to charity or to family and friends.  Gifting can be gratifying and can also provide an income tax benefit as the year comes to a close.  State and federal governments handle gifting differently, making it even more confusing and difficult to navigate.  

In New York State, there is no tax imposed on gifts made during your life.  However, if you do not live for three years beyond that gift, the amount given will be added back into your estate upon your death when determining if an estate tax is owed.  The estate tax exemption in New York is $6.94 million in 2024.  So if a person dies in 2024 and had given a gifts for the three preceding years, these would be added together with the other assets they owned at the time of death to see if they are beyond that number.  Staying under the New York exemption is critical because estates that go 5% beyond the exemption will be taxed on the entire amount, this is referred to as a “cliff.” 

The federal government operates under a different scheme when calculating gift taxes.  In 2024, you can give $18,000 per year, per person with no implications or filings required.  Gifts to a single person beyond that trigger a gift tax return filing and the amounts will be applied toward your individual lifetime exemption, currently $13.61 million.  This means that if your total estate is under that amount when you add together taxable gifts made during life and transfers at death, there will never be a gift or inheritance tax imposed by the federal government.  For individuals with estates above the threshold, individualized planning should be considered to minimize or eliminate estate taxes. 

If you are looking to make a charitable donation before the end of the year, there are several ways to accomplish this. One is an outright gift of a set sum of money. This can be done through a one-time or recurring donation to a charitable organization that qualifies as tax exempt under 501(c)(3) of the Internal Revenue Code.  Making a gift to your favorite cause can also provide you with an allowable deduction on your annual income tax returns.  

Gifting during life can also come in the form of a distribution from a tax deferred retirement account.  This gift is a qualified disclaimer and cannot exceed $100,000 in a given year.  The amount of the disclaimer counts towards the account owner’s annual required minimum distribution, providing you with an income tax benefit because it will not be counted as taxable income. 

Donor advised funds are another useful way to transfer assets to charitable organizations to receive an income tax deduction, all without making an immediate determination on the recipient of the funds.  The donor advised fund can be opened with a financial institution and the contribution you make will qualify as a charitable distribution for income tax purposes. 

However, rather than giving to a certain charity, you will actually be transferring the assets to an account that can be invested and enjoy tax-free growth.  Over time you can make distributions from the fund to qualifying charities in varying dollar amounts as you see fit.  The donor advised fund allows you to designate who will be responsible for determining the charities that will benefit from the account after your death. 

Understanding the rules and tax implications surrounding gifts to family, friends and individuals is an important first step.  In addition to gifting that is made while you are alive, it is also important to engage in estate planning to determine what will occur at your death to ensure your assets are distributed the people and organizations you care about most.  If you have not started this process, add estate planning to your list of 2025 resolutions. Happy Holidays! 

Britt Burner, Esq. is a Partner at Burner Prudenti Law, P.C. focusing her practice areas on Estate Planning and Elder Law. Burner Prudenti Law, P.C. serves clients from New York City to the east end of Long Island with offices located in East Setauket, Westhampton Beach, Manhattan and East Hampton.

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There are three different property tax exemptions available to veterans. METRO photo

By Britt Burner, Esq.

Britt Burner Esq.

While a trust technically becomes the owner of your home when you sign a deed transferring ownership to a grantor trust, rest assured that you will still receive the same real estate tax exemptions and/or benefits that you received when your home was owned in your individual name. Both revocable trusts and irrevocable Medicaid asset protection trusts fall under this category of “grantor trusts.”

Many New York residents depend on property tax exemptions/credits to make ends meet. Prime examples of this are the New York State School Tax Relief Program (STAR) and the Enhanced School Tax Relief (E-STAR). The basic STAR program does not have an age requirement, but the property must be the primary residence of at least one owner. Additionally, all owners and their spouses who live on the property must not have an income of more than $250,000 combined.

The Enhanced School Tax Relief (E-STAR) requires that the property must be the primary residence of at least one owner who is 65 or older by the end of the calendar year in which the exemption begins. Surviving spouses may be eligible to retain the Enhanced STAR benefit. For 2025, the combined incomes of all owners (residents and non-residents), and any owner’s spouse who resides at the property must be limited to $107,300 or less to receive the Enhanced STAR benefit.

There are other exemptions available to senior citizens depending on where they reside. Local governments and school districts in New York State can opt to grant a reduction on the amount of property taxes paid by qualifying senior citizens.

Regardless of a homeowner’s age or income, there are also exemptions available to veterans and those who are disabled. There are three different property tax exemptions available to veterans who have served in the U.S. Army, Navy, Air Force, Marines and Coast Guard. Local governments and school districts may also lower the property tax of eligible disabled homeowners by providing a partial exemption for their legal residence. Those municipalities that opt to offer the exemption also set an income limit.

Knowing that the property tax benefits will be preserved in a Revocable Trust or a Medicaid Asset Protection Trust can ease the concerns about engaging in this type of planning. Transferring your house to one of these trusts will prevent your estate from going into probate at your death. Probate is the Court process of validating your Last Will and Testament. The process can take time and delay the distribution of your estate. Beyond probate avoidance, depending on the type of trust you create, it may also provide the additional benefit of protecting the property from being counted as an asset for Medicaid eligibility. 

While the concept of transferring your house can feel complicated and the word “irrevocable” seems daunting, there is much that can be gained from this type of planning without the loss of valuable benefits.

Britt Burner, Esq. is a Partner at Burner Prudenti Law, P.C. focusing her practice areas on Estate Planning and Elder Law. Burner Prudenti Law, P.C. serves clients from New York City to the east end of Long Island with offices located in East Setauket, Westhampton Beach, Manhattan and East Hampton.

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