The Estate of Ed Koch

The previous mayor of the town of New York Ed Koch died on February 1st on the age of 88. He truly served three phrases because the mayor of the town after serving as a member of the USA Home of Representatives.

As a rule you’ll be able to be taught one thing about estate planning while you study the estates of well-known people who handed away. Within the case of Ed Koch you see how your monetary legacy will be ravaged by property taxes.

The federal property tax is clearly relevant in all 50 states. The present federal property tax exclusion is $5.25 million, and the utmost charge is 40%.

Some states have an property tax on the state degree, and actually we’ve a state property tax proper right here in Connecticut.

There’s an property tax in New York as effectively, and the 2013 exclusion quantity is $1 million; the utmost charge is 16%.

People who find themselves in politics are also known as “public servants.” As mayor the very best annual wage that Koch earned was $130,000. Although that will sound excessive to some, it is vitally doubtless that Koch may have earned extra within the non-public sector.

The truth is, he did certainly amass fairly a little bit of wealth after retiring from his political profession. The worth of his property is estimated to be someplace between $10 million and $11 million.

In accordance with an article showing on the Forbes web site, the inheritances that might be acquired by his heirs are going to be lowered by over $2.5 million resulting from tax payments that might be offered by the state of New York in addition to the Inside Income Service.

It might have been attainable for Koch to plan his property in a fashion that will have eased this tax burden. In case you are in possession of property that exceed the exclusion quantity you would definitely do effectively to debate tax effectivity methods with an skilled property planning lawyer.

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