Law Offices of Steven M. Adler, PLLC

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Adler Law
E-Newsletter
February 12, 2014

Steven M. Adler, Esq. 
Steven M. Adler, Esq.

390 N. Broadway, Suite 200
Jericho, New York 11753

 

Phone: (516) 876-1105
Fax: (516) 441-5095

 

 

Welcome to the Winter Olympics Issue of the Adler Law E-Newsletter.
  
We all remember James Joseph Gandolfini, Jr. - the  American actor best known for his role as American Mafia crime boss Tony Soprano in the award-winning HBO series, The Sopranos.  In this issue of the Adler Law Newsletter, we discuss what we can learn from his will. 
  
And in the Spirit of the 2014 Winter Olympics, the second article honors our Olympic athletes and the Spirit of the Olympics.  Click here to view the 2014 Sochi Winter Olympics Official Website.   
  
We hope that you enjoy our articles. 
  
If you have any questions or would like us to discuss a subject of interest to you in one of our future articles, please feel free to contact my Client Services Director Betty and we would be happy to address your concerns in a future issue of Adler Law.

Have you checked out our new web site?

  
Thanks and if you haven't done so already, please "Like" my firm's Facebook Page.
  
Sincerely,
Steven M. Adler
 

Estate Planning Lessons

From James Gandolfini's Will

  

That the late James Gandolfini was a beloved actor is without question. Now that his will has been revealed, he has a new fan: The IRS.

  

 Gandolfini's will was written in a way that estate planning experts say skipped many options for minimizing his tax bill.

  

One example: Gandolfini left just under 20 percent of his assets to his wife, with the rest going to his sisters and infant daughter. (He made "other provisions" for his son from a previous marriage, the will says.) With less than 20 percent of the assets covered by Gandolfini's will going to his wife, close to 80 percent could be subject to state and federal taxes that together can reach a rate of 55 percent.

 

Certainly, Gandolfini may have had priorities other than taxes, like wanting to make sure his son would not be dependent on his stepmother for his inheritance.

 

Gandolfini may also have had assets like retirement accounts and life insurance policies that are not covered by the will and its tax rules.

 

But legal and tax experts say that if minimizing taxes was a priority, Gandolfini's will could have been better written.

 

Since we don't know what was explained to him and we don't know what his choices were, we can never be sure what his motivating factor was.  While most people do approach estate planning in the most tax efficient way, many do not.  It would appear from what's been revealed about his estate, that Gandolfini seems to have been in the latter camp.

 

So how can you be smarter than James Gandolfini when it comes to estate planning?

 

For starters, consider taking greater advantage of the marital deduction. This tax deduction allows a spouse to transfer an unlimited amount of assets to their surviving spouse, and deduct it from the amount subject to estate tax.

 

Trusts are another tool for managing sizable estates. Gandolfini could have made some significant gifts to his siblings and to his daughter and put them in trust and told the trustee not to distribute these until I'm gone, but grow these during my lifetime.  Once he's put them in trust, the assets would avoid the estate taxes.

 

Still, trust assets have to have time to grow, and Gandolfini died at age 51. To make sure trusts have value at any time, Gandolfini could have created trusts and had the trustees take out life insurance on him. That way, the insurance would have provided for his heirs even if the trusts themselves were still small.

 

Another issue with Gandolfini's will is the plan to leave assets for his infant daughter that become hers free and clear when she turns 21.

 

Our recommendation is typically to put it in trust until 25, 30, or even 35 because that gets the kids through college, a job and starting a family.  And spacing out the distributions at different ages ensures that if a child makes a mistake or a bad investment, it does not waste their entire inheritance.  

 

Then there is the matter of real estate. Gandolfini owned a home in Italy, and in his will he give each child a 50 percent stake. But there is no mention of how to pay for upkeep--and there seems to be no reference to Italian laws that would come into play. For example, in some European countries there are laws governing who inherits real estate.

 

If you have a house in Italy or any other country for that matter, you should also be talking to local counsel to advise you about the local laws.

 

In the end, no one in Gandolfini's family is likely to come up short. But paying lower taxes would have left them even better off.

Please feel free to contact Betty Chan to schedule your no cost Family Wealth Planning session with one of our attorneys. 

  
   

The Sochi 2014 Olympic Games are Underway

The Winter Olympics are here, and we share in the excitement as we cheer on the athletes.

 

Russian politics aside, the Olympic Games ARE a reason for the people of the world to get excited and unite in the solidarity of sportsmanship and friendship.

 

 

The games may be marred by what's going on in Russia politically but the spirit of the Olympic Games will never die out (especially when you consider that the 1936 Olympic Games took place in Nazi Germany).

 

Let us come together to lend our support, love and excitement to the athletes competing, the people of Russia and the Olympic Spirit overall.

 

Best of Luck to all of the Olympic athletics in competition at the Sochi 2014 Olympic Games!

 

Building a Better World Through Sport

 

What is Olympism?

 

Olympism is a philosophy of life, exalting and combining in a balanced whole the qualities of body, will and mind. Blending sport with culture and education, Olympism seeks to create a way of life based on the joy found in effort, the educational value of good example and respect for universal fundamental ethical principles.

 

The goal of the Olympic Movement is to contribute to building a peaceful and better world by educating youth through sport practiced without discrimination of any kind and in the Olympic spirit, which requires mutual understanding with a spirit of friendship, solidarity and fair play.

 

United Nations support

 

The first initiatives were launched by the International Olympic Committee (IOC) in 1992. In order for the project to have a greater impact, the IOC relayed it to the United Nations (UN). Since 1993, the UN General Assembly has repeatedly expressed its support for the IOC by unanimously adopting, every two years, one year before each edition of the Olympic Games, a resolution entitled "Building a peaceful and better world through sport and the Olympic ideal".

 

Through this symbolic resolution, the UN invites its member States to observe the Olympic Truce individually or collectively, and to seek, in conformity with the goals and principles of the United Nations Charter, the peaceful settling of all international conflicts through peaceful and diplomatic means, and recognizing the importance of the IOC initiatives for human well-being and international understanding.

 

"Sports by its nature may be competitive, but sports can be a very powerful tool and vehicle to promote dialogue and peace and reconciliation. Unfortunately we are experiencing problems in many parts of the world, but through sports we can promote peace and dialogue and reconciliation. This is exactly what the United Nations and the IOC share - the same goals and objectives."

- Ban Ki-moon, United Nations Secretary General

 

The Olympic Truce is symbolized by the dove of peace with the traditional Olympic flame in the background. In a world that is plagued by wars and animosity, the peace-dove symbol represents one of the IOC's ideals to build a peaceful and better world through sport and the Olympic ideal.

 

The Olympic flame has brought warm friendship to all the people of the world through sharing and global togetherness. In the symbol, the flame is made up of colorful effervescent elements - reminiscent of festivities experienced in the celebration of the human spirit. These elements represent people of all races coming together for the observance of the Truce.

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The Law Offices of Steven M. Adler, PLLC are committed to providing their clients with the highest level of professional legal services at reasonable prices. Steven M. Adler, Esq., along with the rest of his law firm's highly competent support staff, gives all of his clients the personal attention and the legal expertise which they are entitled to receive. The Law Offices of Steven M. Adler, PLLC takes pride in the quality, effectiveness and efficiency of their legal services.


Law Offices of Steven M. Adler, PLLC
390 N. Broadway, Suite 200
Jericho, New York 11753
Phone: (516) 876-1105
Fax: (516) 441-5095
Web Site: www.sawlaw.com

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