Katz Chwat, P.C.

06/23/2026

Every adult needs a Last Will & Testament. Not just the wealthy.

06/17/2026

Katz Chwat, P.C. has been nominated for Best Estate Planning Lawyer in the Best of Nassau!

Voting is open now, and supporters can vote once per day, every day (through July 9). We’re honored by the nomination and would love your support as we hope to bring home the “Best Of” title this year.

Thank you to our clients, colleagues, friends, and community for your continued support.

You can cast your daily vote here: https://bestofnassau.com/voting/ #/gallery/541721109/

06/09/2026

When Is Consent Needed in a New York Probate Proceeding?

One of the most common questions families have when beginning a probate proceeding in New York is whether everyone must agree before an Executor can be appointed.

When a person dies with a Will, the Executor files a probate petition with the Surrogate's Court, along with the original Will, a certified death certificate, and other required documents. As part of the probate process, certain interested parties must be notified.

The deceased person's heirs, known as distributees, and the beneficiaries named in the Will must receive notice of the proceeding. This gives them an opportunity to review the petition and understand who is seeking appointment as Executor.

At this stage, distributees may sign a Waiver and Consent. By signing, they acknowledge the probate proceeding, consent to the appointment of the Executor, and waive the requirement of formal court process. When all necessary parties sign Waivers and Consents, the probate process is often completed more efficiently and without the need for court appearances.

Another important consideration is whether the Will includes an Attesting Witness Affidavit, sometimes called a self-proving affidavit. This document is signed by the witnesses and serves as evidence that the Will was properly executed.

If the Will does not contain an Attesting Witness Affidavit, the Surrogate's Court may require additional proof before admitting the Will to probate. In many cases, one or more of the witnesses may need to sign sworn statements or provide testimony confirming the circumstances under which the Will was executed.

However, in New York, when all distributees execute Waivers and Consents and no one is contesting the Will, the court may be able to admit the Will to probate without requiring testimony from the attesting witnesses. This can save significant time and expense, particularly when witnesses have moved, cannot be located, or are deceased.

For this reason, obtaining Waivers and Consents from all interested parties can be especially valuable when a Will lacks an Attesting Witness Affidavit. It can help avoid delays and streamline the probate process.

Understanding the relationship between Waivers and Consents and Attesting Witness Affidavits can help families navigate probate more efficiently and reduce unnecessary complications during estate administration.

Read more here: https://www.nycourts.gov/help/when-someone-dies/probate-when-person-dies-will

05/28/2026

Form 706 vs. Form 1041: A Key Tax Planning Decision During Estate Administration

One of the most important, and often overlooked, tax planning opportunities during estate administration is deciding whether certain expenses should be deducted on: Form 706 (Federal Estate Tax Return), or Form 1041 (Estate Income Tax Return). The decision can significantly impact the estate’s overall tax liability and, in many cases, the beneficiaries’ tax burden as well.

Understanding the Difference
Form 706 is used to report the value of a decedent’s taxable estate. Deductions claimed on this return reduce the taxable estate and may lower federal and New York estate taxes.

Form 1041 reports income earned by the estate during administration. Deductions on this return reduce taxable income for either the estate or the beneficiaries if income is distributed.

Expenses That May Be Deducted
Certain administration expenses can be claimed on either Form 706 or Form 1041 — but not both. These “elective deductions” commonly include:
executor and trustee commissions, legal fees, accounting fees, appraisal costs, probate and court filing fees, and investment management expenses.
This creates an important planning opportunity for fiduciaries and advisors.

If the estate exceeds the federal or New York estate tax threshold, deducting expenses on Form 706 may provide greater value by reducing estate tax exposure. However, if the estate is below the exemption amount but generates substantial income during administration, deducting those expenses on Form 1041 may create more meaningful income tax savings.
In some cases, certain expenses accrued before death may qualify for both estate tax and income tax treatment under special IRS rules.

For New York estates, deduction planning is particularly important because reducing the taxable estate may also reduce or eliminate New York estate tax liability. Fiduciaries should evaluate: the size of the taxable estate, estate income during administration, beneficiary tax brackets, and the timing of deductions and distributions.

Choosing where to claim deductions is not simply a compliance issue, it is a strategic tax planning decision that can materially affect both the estate and its beneficiaries.

Read more here: https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-estate-taxes

05/21/2026

05/19/2026

A Simple 529 Planning Step That Could Help Your Family Avoid Probate

If you’re contributing to a 529 college savings plan for your child or grandchild, you’re already taking an important step toward their future education expenses. But there may be one additional detail worth reviewing: Does your 529 account have a joint owner or successor owner named? An overlooked issue is that 529 accounts may be subject to probate if no joint owner or successor owner is designated.

Why This Matters
Probate is the legal process of settling a deceased person’s estate. While necessary in some situations, it can create delays, additional legal expenses, and unnecessary stress for surviving family members. A typical probate process can take anywhere from 6–12 months — sometimes longer.
For families with a student actively using 529 funds for tuition, housing, or other qualified education expenses, delayed access to the account could create real financial challenges during an already difficult time.

In many cases, properly naming a joint owner and/or successor owner on a 529 account can help the account avoid probate entirely.

Joint Owner vs. Successor Owner: What’s the Difference?
Understanding the distinction is important.
Joint Owner:A joint owner shares ownership and control of the account alongside the primary owner. They typically have the ability to:
- Adjust contributions
- Request withdrawals
- Update account information
- Manage the account in the same capacity as the original owner
In many families, this is a spouse or co-parent.

Successor Owner
A successor owner does not have access to or control over the account while the current owner is alive. However, if the account owner passes away, ownership transfers directly to the successor owner. This individual is often the person you would want managing the account on behalf of the beneficiary if something were to happen to you. The successor owner designation can generally be updated at any time during the current owner’s lifetime.

A small administrative step with a potentially big impact.
Estate planning is often associated with wills, trusts, and tax strategies, but beneficiary designations and account ownership structures are equally important pieces of the puzzle.

Reviewing your 529 account setup may take only a few minutes, but it could help your family avoid delays, legal complications, and unnecessary stress later on.

As always, thoughtful planning is about more than numbers, it’s about creating clarity and protecting the people you care about most.

05/13/2026

We’re excited to share that Katz Chwat, P.C. has been nominated for Best Estate Planning Lawyer in the Best of Nassau!

Voting is open now, and supporters can vote once per day, every day (through July 9). We’re honored by the nomination and would love your support as we hope to bring home the “Best Of” title this year.

Thank you to our clients, colleagues, friends, and community for your continued support.

You can cast your daily vote here: https://bestoftheboro.secondstreetapp.com/og/25d2f709-f1d1-469b-9c30-1d2067c0d78f/gallery/541721109

05/11/2026

A major legal battle could reshape how tax-exempt organizations engage in politics. A recent case, Freedom Path Inc. v. IRS, highlights the ongoing ambiguity in how Section 501(c)(4) organizations balance “social welfare” with political activity.

In this instance, the government denied Freedom Path’s tax-exempt status, arguing that nearly 80% of its activities constituted political campaign intervention. This would mean that the organization failed to meet the requirement for operating “exclusively” for social welfare.

Some advocates argue for a strict interpretation of “exclusively.” Because political campaign activity primarily serves partisan interests, allowing it under tax-exempt status risks undermining the broader public good. The opposing view argues that some level of political engagement is necessary to advance social welfare goals. After all, public policy and elections directly influence outcomes in areas like healthcare, education, and civil rights.

The outcome of this case could have significant implications for how nonprofits structure their activities, and just how far they can go in the political arena.

For more information, see the full article here: https://www.forbes.com/sites/taxnotes/2026/04/27/the-path-ahead-for-political-activity-and-tax-exempt-orgs/

04/29/2026

Fiduciary Self-Dealing: A Lesson in Loyalty and Accountability

One of the most fundamental obligations of any fiduciary is the duty of loyalty—administering an estate or trust solely in the best interests of its beneficiaries. This duty is breached when a fiduciary engages in self-dealing, placing personal interests above those they are entrusted to protect.

Courts have consistently reinforced a strict standard through the “no further inquiry” rule: once self-dealing is established, the transaction can be voided—regardless of whether it appeared fair. This principle underscores how seriously fiduciary misconduct is treated.

A recent case highlights the consequences. An executor who controlled a closely held company tied to an estate authorized substantial payments to himself without court approval. Despite his position of authority, the court found this to be a clear conflict of interest and a violation of fiduciary duty.

The payments were rescinded, and he was ordered to return the funds. Additional penalties—including potential surcharges and attorney’s fees—were also considered.

Key takeaway: Fiduciaries must avoid even the appearance of self-interest. Courts impose strict liability to protect beneficiaries and preserve trust in estate administration.

For professionals serving in fiduciary roles, this serves as a powerful reminder: transparency, court approval where required, and unwavering loyalty are not optional—they are essential.

Read more here: https://www.nyestatelitigationblog.com/2019/04/articles/fiduciaries/fiduciary-self-dealing/

Recently shared by Katz Chwat, P.C. Associate, Jenna Baillie

04/28/2026

A new networking group met last week for the first time and it was a great success!

If Next Gen Networking sounds like it's for you, contact [email protected] for more information.