Estate Planning Today

According to the Wall Street Journal, many families are moving their estate planning focus away from avoiding estate taxes, to minimizing their capital gains tax burdens. Nowadays the federal estate tax is not the biggest worry for affluent people who would like to avoid paying taxes when their heirs inherit their wealth.

This is in contrast to how it was during the past ten years. Back in 2004, those with over $1.5 million in assets wishing to pass on their wealth after death, or who made gifts above that limit during their lifetimes, had to pay taxes at the top rate which was close to 50 percent. Married couples were forced to set up trust funds in order to benefit from the full $3 million exemption they were entitled to.

Adding to the complexity of planning was the fact that the tax burden kept changing every year. In fact, in 2010 the tax was completely gone, making it extremely difficult to plan for the future.

Last year Congress changed the estate tax law. Today the top estate-and-gift tax rate is set at a maximum of 40 percent and the exemption was changed to $5 million, with adjustments to take into account inflation, so that today’s exemption comes to $5.34 million. In addition, couples do not need to set up trusts to get the full benefit they are entitled to.

Now that individuals do not have to be so concerned with estate taxes, they can reap meaningful tax savings on capital gains by choosing smartly which assets to hold until death.

Louis Kreisberg and the Foundation Fighting Blindness

The Foundation Fighting Blindness, with CEO Louis Kreisberg, has taken on the urgent mission of supporting the research into the causes of blindness and its prevention, treatments and also cures.

On the list of causes of blindness are retinitis pigmentosa (RP), macular degeneration, Usher syndrome, and other diseases which cause the retina to degenerate.

Here are some facts about retinal degenerative diseases which can lead to blindness:

·       Blinding diseases affect people of all ages and races. Over ten million Americans suffer vision loss from these diseases.
·        Retinitis Pigmentosa and Usher syndrome are genetic diseases which are inherited and usually diagnosed during childhood or young adulthood.

•   RP is the cause of serious vision loss which leads to legal and/or total blindness.
•  Children who are born with Usher syndrome are born with varying degrees of deafness. They develop RP later.
•  Age related macular degeneration has inherited risks. It is characterized by increasing loss of central vision.
• The foremost cause of blindness in adults over 55 years old in the US is AMD.

Changing New York Tax Laws

Tax laws in America are very complicated.  And they differ from state to state.  And then they change.  Having a tax consultant therefore, makes the process a lot easier.  It is important that that tax expert specializes in the state where one has their money.

Louis Kreisberg – a Principal at Pioneer Wealth Partners – is one such individual who is equipped to offer consultation on this subject matter.  With offices in Seattle, Chicago and New York, Pioneer can offer clients expert consultation on business, estate planning, tax and more.

Last year, as part of the 2015-16 Executive Budget, Governor Cuomo made several changes to the New York State estate tax law. It was pretty complicated.  For example, estate tax exclusion was elevated by the 2014 legislation from $1 million to $2,062,500 for those who passed away between April 1, 2014, and March 31, 2015; to $3,125,000 for individuals dying between April 1, 2015, and March 31, 2016; to $4,187,500 for individuals dying between April 1, 2016, and March 31, 2017; and to $5,250,000 for individuals dying between April 1, 2017, and December 31, 2018.

At the beginning of this year, things changed again.  As pointed out in a recent article byconsultants at law firm Pillsbury Winthrop Shaw Pittman LLP:

“On January 13, 2016 the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) issued Geographic Targeting Orders (GTOs) requiring reporting by title insurance companies and their subsidiaries and agents on certain high-value real estate transactions starting on March 1, 2016. The GTOs require reporting on “all-cash” residential real estate deals made through shell companies in Miami Dade County, Florida and the Borough of Manhattan in New York City. The reporting is temporary, lasting for 180 days beginning March 1, 2016 and continuing until August 27, 2016 (unless extended).”

Clearly the above data from last year and this, shows the law is complex and subject to regular amendments.  Having a tax expert in New York, like Louis Kreisberg, can ease the pressure of keeping up with these laws.

Navigating Tax Laws

Tax laws often concern business people who lack extensive fiscal understanding. Right now, this is particularly worrying since it is tax season again in the US.  According to arecent article in My North West, this fear actually translates into tens of thousands of Americans avoiding tax filing, resulting in an IRS estimated almost $1 billion unclaimed refunds, just for 2012.

So what is the solution?  If there are refunds to be had, and one is not in the tax-know as it were, what should the next step be?  One idea is to contact a tax consultant in their area. In Washington for example, the above article estimated that half of the refunds are for $700+. People such as Louis Kreisberg of Pioneer Wealth Partners, Greg Boots of Anderson Advisors and Thuy Nguyen of H& R Block are just some of the consultants that offer services in this area.  Along with his team at Pioneer Wealth Partners, Kreisberg offers investment advice, tax and estate planning services and more to his clients, helping them navigate an array of fiscal adversities. They can help these people remove the fear of tax return filing for those concerned they owe money to the IRS.

Then of course there are the companies which are avoiding their taxes. According to Citizens for Tax Justice, companies were able to avoid up to $695 billion due to the fact that they are not bringing the profits they earned overseas back home.  This is because America – at a figure of 35 percent – imposes the highest tax rate in the developed world.

So when it comes to individuals potentially getting a tax refund, it is worth consulting those in the know to have this happen.

Update: Getting Ready for Taxes in 2016

Stay ahead of the tax game and learn what will be new in the tax laws for 2016.

Be aware of the Affordable Care Act Penalties for those who choose to opt out of what is popularly known as Obamacare. What are essentially taxes on people who do not purchase health insurance will rise in 2016 to $2,085, which is the premium cost for the national average of the Bronze Plan listed on the federal health exchange. In order to avoid paying this penalty a person must either carry health insurance coverage, or get a plan at the latest during the first two months of 2016.

Personal exemptions will go up by $50 in 2016, to $4,050. This deduction however, has been eliminated for people in the higher income brackets. The standard deduction has gone up a bit for the head of the household.

Head of households with families can add an additional $100 to their Health Savings Account for a total of $6,750 for the year. Individuals, though, can only contribute up to $3,350, the same as in 2015.

Since April 15 this year falls on a Friday and also happens to be a federal holiday, the deadline has been extended to April 18.

The Earned Income Credit is going up in 2016, but don’t get too excited, its not by that much. For three qualified children the increase is $27, to $6,269. With two children the rise is $24, with a maximum of $5,572. Families with just one child can max-out at $3,373, a $14 increase. If you do not have any children, your increase is just $3 and give you a deduction of $506.

There are several tax breaks that are still relevant in 2016. For teachers they can still take a maximum of $250 on expenses for classroom supplies that did not get reimbursed.

Life Insurance Industry Leader Louis Kreisberg Appointed National Trustee of the Foundation Fighting Blindness

The Foundation Fighting Blindness, a national nonprofit dedicated to advancing sight-saving research, has appointed Louis Kreisberg as a national trustee of the organization. Mr. Kreisberg of New York City and Palm Beach, Florida, is the founder and CEO of Madison Strategic Partners, a boutique advisory firm in New York City specializing exclusively in the life insurance marketplace.
“Mr. Kreisberg’s support and significant pledges have been extremely helpful in our pursuit of promising studies and cutting-edge treatments,” said William T. Schmidt, CEO, Foundation Fighting Blindness. “As a trustee, we are grateful that Mr. Kreisberg will now take an even more direct role in aiding the more than 10 million Americans affected with blinding retinal diseases.”

Mr. Kreisberg became involved with the Foundation Fighting Blindness after his son Jeremy, a student at Harvard Law School, was diagnosed with retinitis pigmentosa, a genetic condition characterized by night blindness and a progressive loss of peripheral vision. Earlier this year, Louis and his wife, Amie, generously made a significant pledge in support of sight-saving research.
“The Foundation Fighting Blindness has been at the forefront of combatting retinal degenerative diseases, and I’m honored to take a more active role in support of the Foundation as a trustee,” said Mr. Kreisberg. 

A leading figure in the insurance industry since 1984, Mr. Kreisberg has led production at numerous life insurance companies, including Guardian, John Hancock, American General, US Life and New York Life, where he was Chairman of the advisory board. As an acknowledged expert in estate planning, he has counted among his clients many Forbes 400 families. Mr. Kreisberg has been a Top of the Table member of the Million Dollar Round Table, a member of the International Forum and a member of the American Society of Pension Actuaries. He is also the Former Chairman of the Insurance Committee for Trusts and Estates magazine.

Louis And Amie Kreisberg Contribute $200K To Foundation Fighting Blindness

The Foundation Fighting Blindness, a national nonprofit dedicated to advancing sight-saving research, today announced that they have received a significant contribution from Louis and Amie Kreisberg of New York City and Palm Beach, Florida. Mr. Kreisberg is founder and CEO of Madison Strategic Partners, a boutique advisory firm in New York City specializing exclusively on the life insurance marketplace. The donation of $200,000 over five years will support the Foundation Fighting Blindness’ research efforts toward treatments and cures for retinal degenerative diseases including retinitis pigmentosa (RP), macular degeneration, and Usher syndrome, among other rare related conditions.

“The Kreisbergs’ significant pledge will help us fund the most promising studies to move cutting-edge treatments forward, from the lab to the clinic and out to patients who are counting on a brighter future,” said William T. Schmidt, CEO, Foundation Fighting Blindness. “Thanks to generous contributions such as this one, progress in areas like gene and cell-based therapies, as well as pharmaceuticals, gives hope to the more than 10 million Americans affected with blinding retinal diseases.”

“We are proud to be supporting Foundation Fighting Blindness, one of the foremost organizations in the U.S. fighting blindness,” said Louis Kreisberg. “With recent advances in gene-based therapies, we believe that one day there will be a cure for retinal degenerative diseases which affect millions of Americans.”

Louis and Amie Kreisberg became involved with the Foundation Fighting Blindness after his son Jeremy, now a student at Harvard Law School, was diagnosed with RP, a genetic condition characterized by night blindness and a progressive loss of peripheral vision. Foundation-funded human studies using gene therapy have successfully restored some vision in children and young adults previously blind from a rare form of RP, and additional clinical trials—as well as investigations into better understanding the genetics of RP—are underway.

A leading figure in the insurance industry since 1984, Mr. Kreisberg has led production at numerous life insurance companies, including Guardian, John Hancock, American General, US Life and New York Life, where he was Chairman of the advisory board. As an acknowledged expert in estate planning, he has counted among his clients many Forbes 400 families. Mr. Kreisberg has been a Top of the Table member of the Million Dollar Round Table, a member of the International Forum and a member of the American Society of Pension Actuaries. He is also the Former Chairman of the Insurance Committee for Trusts and Estates magazine.

About the Foundation Fighting Blindness

The Foundation Fighting Blindness is a national nonprofit driving blindness research that will lead to preventions, treatments and cures for retinitis pigmentosa, macular degeneration, Usher syndrome and the entire spectrum of retinal degenerative diseases that affect more than 10 million Americans. In its 40-year history, the Foundation has raised more than $425 million as the leading non-governmental funder of retinal research. Breakthrough Foundation-funded studies using gene therapy have restored significant vision in children and young adults who were previously blind, paving the way for using this method to treat a wide variety of retinal degenerative diseases, and proving a cure is in sight. With a network of 50 chapters, the Foundation also provides disease information and low vision resources to affected individuals and their families.