Estate Preservation


Your Attorney and Accountant agree you need an IRREVOCABLE TRUST to minimize Federal and State Estate Taxes. However, you can't find the money to fund such Trust.  Here is where premium financing helps. Now might be the time to investigate this with interest rates historically low.

Here are the basics of the revised New York State Estate Tax as adopted by the current New York State Budget of 2015.

The new exemption amount is $4,187,500, previously $3,125,000.  This amount will gradually increase to eventually match the federal exemption amount of $5,450,000.  If the federal exemption increases, the New York State exemption will also increase to match the federal exemption.

Previously the top marginal tax rate was 16%.  This has now been reduced to 10%.

PLEASE NOTE:  If your estate exceeds 5% of the estate tax exemption, YOUR ENTIRE NEW YORK STATE EXEMPTION IS LOST!

Consequently, careful planning using a variety of techniques must be employed to minimize both the Federal and New York State Estate tax laws.


The above mentioned material is for informational purposes only.  Neither APFS nor its' representatives provide tax, legal, or accounting advice.  We strongly encourage you to consult your own tax, legal or accounting professinal before making any decisions. 

I strongly believe that the most powerful Estate Planning tool is The Irrevocable Life Insurance Trust. 

* This financial instrument , being irrevocable, is removed from your taxable estate.

* In addition, your estate becomes highly liquid by using Life Insurance for funding.  For only      pennies on the dollar and a piece of paper and some ink, you leverage your estate.  It quite simply is the most cost efficient method to pay either Federal and/or New York State Estate Taxes.

* Furthermore, there are significant Gift Tax advantages.  Each year the grantor can make gifts up to $14,000  per person annually without incurring any Gift Taxes.  With spousal consent, the annual gift is $28,000.  This removes your annual gifts from future growth and estate taxes. 


Each year you can make a $14,000 TAX-FREE GIFT for a Family Members' college education (Section 529 of IRC).  Many are unaware that you can gift FIVE TIMES THAT AMOUNT or $70,000 to each child. With Spousal Consent the Gift can grow to $28,000 or $140,000! (  


If you adopted a NY 529 Plan, you can deduct up to $5,000 per year in conributions ( $10,000 per year for married couple filing jointly).  (Source: Tax Facts of JP Morgan 529 Plan). College planning is crucial with the cost of college far exceeding inflation and student debt rising at an alarming rate.  Call us for a free consultation on addressing this concern. More importantly realize that all monies contributed under Sect 529 are not only removed from the owner's estate for federal estate taxation but also the donor still has complete control over such accounts. (Source: Section 2036 of IRC. You can also use Whole Life Insurance as a funding vehicle to help save for a college education.


Just about everyone knows of the untimely death of rock star Prince.  What you may not know is he left a reportedly $150 million Estate without a valid will.  This mean his estate will go through Probate Court which often costs both money and time.  I am not an Attorney but I work with many highly skilled Attorneys and can help drafting your will, health care proxy and power of attorney. Fast Fact:  New York State does NOT accept a written (holygraphic) will.

For Your Legacy

Your Estate will go to either, Your Family, Charity, or the Government.  If you could eliminate one of the three, which would it be?  We have a MULTI-GENERATIONAL LEGACY PROGRAM, with no risks as components of the plan are guaranteed.  Additionally, both investments are tax-favored and in some instances Tax-Free.  You maintain control of your money and in some instances double or triple your capital. 

* By attaching "Crummey Powers" (gifts of present interest),you effectively qualify for annual exclusion from gift taxes.

* By using Life Insurance within the irrevocable trust, your trust creates NO Taxable income.

* Second-To-Die (Survivorship policies) work very well In Irrevocable Trusts.

* This vehicle also avoids Probate

In closing, we can do a fee-based written Estate Analysis to show you the tax savings and human value of this Estate Planning technique.  Contact and put our team to work for you and your family. 

This section also applies to individuals who are in the process of building an estate. A newly wed couple or business owner who has a sizable mortgage and has just started a business with a $50,000 loan may say to him or herself, "I have no estate to preserve." However, you can create an estate, and should, with just a few pennies on the dollar, a piece of paper and some ink. This is called a Life Insurance Contract. So be it a Variable or Whole Life or straight Term Insurance, you can create an immediate Estate through the use of Life Insurance.

Current Estate Tax


FEDERAL ESTATE TAX:  Each individual has an applicable exclusion amount of $5,450,000 (Married couples have a total amount of $10,900,000).  This means that any amounts below these thresholds does not incur any FEDERAL ESTATE TAX.

Additionally, each individual can gift, with no taxes, to any individual up to $14,000 each year.  A married couple, (with spousal consent), can gift $28,000 per year.  

It's crucial to remember that ALL property you have any incidents of ownership in is included in your estate for estate tax calculation.  Thus your HOME, RENTAL PROPERTY, CASH SAVINGS, PERSONAL PROPERTY (cars, collectibles, furniture, etc,) RETIREMENT ACCOUNTS, LIFE INSURANCE POLICIES PERSONALLY OWNED, AND ANY OWNERSHIP OF A BUSINESS are all included when calculating any estate tax liability.  


For the current budget year, there is a new exemption amount in New York. Each person has an exclusion amount of $4,187,500.  This means that if your estate is below $4,187,500, there will be no NEW YORK STATE tax due.  Gradually this new exemption amount will be increased to eventually equal the Federal exemption, currently at $5,450,000  Additionally the top marginal tax bracket of 16% has been reduced to 10%.  There is a very serious wrinkle in this new law.  If your estate exceeds 5% of the new exemption, the entire exemption is lost.   Careful planning using estate freezes, gifting and tax-sensitive investment products must be utilized.

If you are below these amounts, have a good long life expectancy, consider forecasting what your estate may grow to and plan accordingly.  If  ABOVE these exclusion amounts,  YOU HAVE AN ESTATE TAX PROBLEM!

Fortunately I have several programs that can reduce and even eliminate any current and/or potential tax issues.  Here is a listing.

Irrevocable Life Insurance Trusts

Annual Gifting of $14,000

Estate Freezes for Family Businesses

Family Limited Partnerships

Qualified Personal Residence Trusts

Private Annuities

Intentionally Defective Grantor Trusts