We support spreading the word on free knowledge & information, just be aware when you attend events like the one we're presenting, they are 'selling'. Gail L. Abrams for NJ.com writes: Under the new Federal Tax Law the top Gift, Estate, and GST tax rates are set at 40% for gifts made and individuals dying in 2013 and thereafter. This top rate will apply to transfers exceeding the exemption amount now permanently set at $5,000,000.
However, before we all get too excited about a permanent Federal Estate Tax Law, we must all remember where we live. New Jersey is one of 17 states that has its very own estate tax and many people are unaware of how it affects them. While you may not owe Federal taxes (as most of us do not have estates in excess of $5,000,000) you will possibly owe New Jersey Transfer tax at death. New Jersey sets the estate exemption at only $675,000 and imposes a “Transfer Tax” on all assets in excess of the exemption amount per individual (married couples are not exempt from the NJ Transfer Tax). Many homes in New Jersey are worth at least $500,000 or more. If you add in your IRA’s, bank accounts, investments, life insurance policies and other assets, it is relatively easy to exceed the exemption amount.
If you believe you will reach the $675,000 exemption limit, you should consult an attorney who specializes in Estate Planning. Gail L. Abrams is an attorney in Watchung, who specializes in estate planning strategies and utilizes a tool known as a Discretionary Living Trust (unique to her firm) to minimize NJ Transfer tax. You can contact her office at 908-753-4155 to discuss your situation or email her a contactus@estateattorneynj.com.
A Discretionary Revocable Living Trust (also known as an “inter vivos trust” or a “credit shelter trust”) allows a married couple a choice to preserve at the death of the first spouse the New Jersey exemption of $675,000. The surviving spouse preserves the assets in a trust for the benefit of that surviving spouse during his or her lifetime with the remainder going to the heirs estate tax free after both spouses pass away. The surviving spouse chooses which assets to put into the trust he or she can use the assets and retain trustee control over those assets. A Revocable Living Trust is a private document and does not go through the Probate Court and is valid in every state. A Revocable Living Trust is an excellent tool to retain privacy, organize your assets, avoid multiple probate proceedings, if you have property outside of New Jersey and possibly even eliminate some or all of New Jersey Transfer Taxes.
The Law Offices of Gail L. Abrams offers free seminars on estate and financial planning including living trusts, wills, powers of attorney, IRA strategies, retirement planning and more.
To learn more, call 908-753-4156 or view website at estateattorneynj.com and make a reservation to attend one or more of these upcoming seminars: Lunch workshops all starting at 11 a.m. promptly. Reservations are required. Estate planning workshops:
— April 2, Grillestone, 2377 Route 22 West: Scotch Plains.
— April 9, Chimney Rock Inn, 342 Valley Road, Gillette.
— April 9, Chimney Rock Inn, 342 Valley Road, Gillette.
Contact ExactCPA for 2nd opinion on any counsel or advice you receive.
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