a blank slate media special section • october 9, 2020
24 Blank Slate Media Newspapers, Friday, October 9, 2020
Election could impact gift tax exemptions BY E D C ON D ON A N D P H I L PA L U M B O
NASSAU KNOLLS CEMETERY & MEMORIAL PARK
Lovely & Quaint Grounds Open Daily Open To All Faiths Headstone, Flat Marker & Cremation Grave Sites and New Mausoleum Payment Options Available For Pre-Need
500 Port Washington Blvd., Port Washington
If we learned one thing from the 2016 presidential election, it is that the only poll that matters is the one taken on Election Day. The outcome of presidential elections often has a dramatic impact on our financial affairs and so an unpredictable election makes important financial decisions difficult. Many experts now predict that the currently attractive environment for tax, gift and estate planning will change for the worse, regardless of which party wins the upcoming election. The logic here is straightforward: the recent rapid expansion of government borrowing as a result of the COVID-19 pandemic has placed enormous pressure on the government to maintain or increase tax revenues. This makes it unlikely that either party will do anything that may have the short-term effect of reducing tax revenue. The window is likely closing quickly. An effective way to reduce the estate tax bill for your family is to transfer wealth to your beneficiaries while you are alive. However, when you transfer wealth, you use up part of your lifetime gift and estate tax exemption. Right now, that gift exemption stands at an all-time high of $11.58 million ($23.16 million for married couples). This high exemption amount was a direct result of the Tax Cuts and Jobs Act, which took effect on January 1, 2018. Prior to that the lifetime gift and estate tax exemption amount was $5.49 million per individual so the exemption was effectively doubled! Unfortunately, this legislation “sunsets” by the end of 2025 which means that unless Congress acts, the exemption will go back to $5.49 million per individual. You may lose your large exemption opportunity. In the case where Congress does decide to act before 2025, it may reduce this exemption even sooner, possibly acting to reduce the exemption amount retroactively to Jan of 2021. Those not taking advantage of the high exemption amount while it is in place, risk permanently losing their opportunity, making it a “use it or lose it” period between now and the end of this year. What can you do? With the Federal Reserve Bank lowering interest rates in
response to the Pandemic-induced economic slowdown, it turns out that these low rates favor a type of estate planning strategy called a Grantor Retained Annuity Trust, or GRAT for short. A typical GRAT strategy may do a good job at tax-free wealth transfer if you use an illiquid, cash-generating asset like commercial real estate, a closely held business or a highly concentrated stock position. A more flexible version, called a Structured GRAT, allows you to take advantage of this wealth transfer strategy even if your wealth is primarily in liquid investments like cash or short-term investments. Seek out professional advice. Even though the upcoming election and a lowinterest rate environment make this a good time for Estate Planning, these issues can be complex and should only be addressed with the help of professionals. Families with a desire for transferring wealth to heirs to lower the future burden of estate taxes should seek the professional advice of a Financial Advisor, Estate Planner, Trust & Estate Attorney and/or a Tax Accountant. Even if your family is not directly impacted by potential changes in the Gift and Estate Tax exemptions, it is still a good idea to give some thought toward planning around this issue. Regardless of what the November election outcome is, or how interest rates change in the future, you should seriously consider Estate Planning now because the current levels of the gift and estate tax exemption may be much less attractive or simply not available at all. Edward Condon is a portfolio manager with Bluestone Capital. Phil Palumbo is the founder of Palumbo Wealth Management. PWM is a registered investment advisor. Advisory services are only offered to clients or prospective clients where PWM and its representatives are properly licensed or exempt from licensure. For additional information, please visit www.palumbowm.com. The information provided is for educational and informational purposes only and does not constitute investment advice and should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not account for any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.
944-8530 Est. 1900
We accept
@TheIslandNow
Blank Slate Media Newspapers, Friday, October 9, 2020
25
Medicare open enrollment begins Oct. 15 BY ST E P H E N J . SILVERBERG The annual open enrollment period for Medicare, Medicare Advantage plans, and Part D prescription drug coverage begins on Oct. 15 and ends on Dec. 7, 2020. This is the only time during the year an individual can change their Medicare coverage. Whatever decisions seniors make will be set in stone for a full calendar year. Mistakes are costly, especially for people who require multiple prescriptions. If seniors do not enroll in Medicare when they are eligible, there is a 10% increase in premiums for every year they failed to enroll (i.e., if they enroll in Part B or D three years late, the annual premium is increased by 30% for the rest of their lives). “It’s very tempting to shrug your shoulders and go with the same plan you had last year. Don’t. Plans change, networks change, and doctor’s participation in networks change,” said Stephen J. Silverberg. “The plan you had last year might not work this year.” Changes that can be made during the open enrollment period include switching from original Medicare, Part A (hospital costs), and Part B (medical coverage) to a private Medicare Advantage plan. Seniors can change from one Medicare Advantage plan to a different one. They can join or switch a prescription drug plan under Medicare Part D.
Medicare is challenging to navigate. Over the years, the attorneys at the law office of Stephen J. Silverberg have made a point of speaking with clients about their Medicare plan during meetings in the enrollment season. In recent years, they have noted that it has become even more complicated. This especially true of Medicare Part D. Currently, there are over thirty different Part D plans available on Long Island. The Center for Medicare and Medicaid Service, the federal agency which runs the programs, introduced the Medicare Plan Finder to assist seniors in August 2019. Unfortunately, the Finder had numerous
technical glitches and incorrect information; many seniors could not access the Finder. It proved a hardship to seniors. There were reports of Inflated costs and higher premiums. Complaints came from Medicare enrollees, consumer advocates, U.S. Senators, state insurance commissioners, and even the insurance brokers who sell these plans. “We are attorneys. We are not an insurance agency or broker and sell no product. Our review is impartial,” explained Mr. Silverberg. “We want to help seniors avoid mistakes. Medicare is confusing, and we are pleased to help.”
Three important points for seniors: 1 – Know your plan. Look for a piece of mail from Medicare, “Annual Notice of Change.” This letter will have information about changes to coverage and costs, including premiums, deductibles, and co-pays. If you do not participate in Medicare, you will not receive the letter. 2 – Gather up all of your medical expenses from the last year and a list of the doctors you see regularly and the medications you take. If you use a single pharmacy, they will gladly give you a printed list. You’ll need that to figure out which one will be best for you in 2021. 3 – Your modified adjusted gross income (“MAGI”) from two years ago determines your premiums for Medicare Part B. MAGI includes capital gains, Social Security, and required minimum distributions from retirement funds and 401(k) plans. Your 2019 income determines the premium you will pay in 2021. It is too late to do much about that now, but if you can curtail income in 2020, you may reduce Medicare costs. We invite you to call our office and request a free consultation to discuss your Medicare coverage. Call our office at 516307-1236. To help seniors in making an informed decision about their Medicare coverage, the Law Office of Stephen J. Silverberg, PC is offering complimentary consultations by phone, video conference, or in office.
Can’t decide whether to “Sell Your House” or “Stay in-Place”? Contact Me to schedule a Confidential Consultation to Discuss Your Real Estate Options. My Team of Professional Resources can assist you in making the right decision. •Licensed & Insured Contractors for Indoor & Outdoor Improvements. • Organizers & De-clutterers • Tag Sale Specialists • Landscapers • Clean-outs • Local and National Moving Companies • Real Estate Attorney that is Responsive and can Get the Job Done! • Successful Pricing and Marketing Strategies • Follow All NYS Fair Housing & Covid-19 Disclosures, Safety & Health Guidelines • Establish Qualifying Criteria for ALL Serious Buyers - No Lookers • Skillful Negotiations to Obtain the Highest & Strongest Offer with Best Terms • Prepare and offer an abundance of Relocations Options
The ONLY thing for You to do Call Me to Schedule a Confidential Consultation to Discuss Your Real Estate Options.
Watch & Listen to My Professional Zoom podcasts on “Downsizing & Relocation for Boomers & Seniors”. My facebook page @JeffreyStoneRealtor. My You Tube channnel https: //www/youtube.com/user/jeffreyastone. My SoundCloud https: //soundcloud.com/jeffreystone
917-741-8294 • Jeffrey.Stone@Elliman.com • www.www.JeffStone.us
26 Blank Slate Media Newspapers, Friday, October 9, 2020
Open Now Thru October 30th
45 East Williston Ave., East Williston, NY
Respect. Tradition. Compassion. For four generations, New York’s Jewish Community has turned to Sinai Chapels for guidance and comfort in their time of need. We honor and respect all Jewish traditions and customs, attending to every funeral detail according to each family’s personal and religious preferences.
To learn more, contact us today:
718.445.0300 | 800.446.0406