How to avoid paying too much inheritance tax

Inheritance tax is something people rarely think about until they are beneficiaries of part of a Will or trust. The government can take a large portion (up to 45%) of a deceased person’s estate. There are, however, ways to avoid paying too much inheritance tax. Estate planning attorneys in New Jersey, SCC Legal, lists a few options:

Second-to-die life insurance

When combined with an irrevocable life insurance trust, second-to-die life insurance ensures your wealth and assets are passed on to your spouse or children without the beneficiaries having to pay inheritance tax. The costs associated with this option include attorney fees (who will set up the trust) as well as insurance premiums (which will vary depending on the health and age of the owner).

Grantor retained annuity trust

The donor of a granted retained annuity trust will need to pay annual payments for this trust. After the term of this trust ends, the money remaining will be allocated to the beneficiary as a tax-free gift.

Gifting

You can avoid paying inheritance tax by giving away part of your wealth during your lifetime. Gifts that are known as ‘potentially exempt transfers’ are generally made to people (not companies or trusts), charities, educational institutions and so forth.

Get affordable, current advice from a leading elder law attorney in New Jersey

If you have worked your entire life and have built up wealth and assets, it’s your duty to make sure this wealth gets passed on to the next generation without them being crushed by inheritance taxes.

Frank R. Campisano is an elder law attorney in New Jersey that specializes in all aspects relating to estate planning and inheritance tax. When you book a consultation with Frank, you will get up-to-date, affordable and uncomplicated advice. Be proactive about your estate planning in order to avoid paying too much inheritance tax. Contact us for more information today.

Are you the “Executor” of a Will? Here’s a helpful guide to your duties and responsibilities

Probate law in New Jersey can be complex, especially if you have been named as the executor of a deceased person’s Will. Hiring an attorney who specializes in estate planning will be helpful, but we’ve created a list of duties and responsibilities so that you can familiarize yourself with your new role in the meantime:

Analyze the will and documents

If the deceased had a living trust and all of his or her assets form part of the trust, then you will be able to avoid probate and the funds can be distributed according to the Will without waiting for approval by a court. If the assets weren’t transferred to the trust prior to death, then it will be your responsibility to offer the funds for probate and you will need a judge to approve the dispersal of the funds.

Administrative duties

As the Executor of the will, you will be responsible for closing the deceased’s financial accounts, finalizing the tax processes and cancelling any government benefits that the deceased received prior to his or her death. The funeral home will give you a death certificate (which you will need in order to complete all these administrative tasks) and you will also be responsible for arranging and executing the funeral.

Determine the value of the assets and distribute assets accordingly

The Executor is also responsible for locating all the assets in the Will. These assets typically include real estate, vehicles, artwork, furniture, electronics and so forth. The attorneys who prepared the Will can help you with this, but you aren’t obligated to hire the original attorneys who prepared the Will for the deceased. After locating all the assets and determining their value, you will be responsible for distributing the assets according to the Will.

Let us help guide you through the New Jersey probate process

Make sure you and your loved ones receive the inheritance that was left for you. If you are left with a last will and testament and want an uncomplicated way to understand and execute all your duties, book a consultation with our probate attorneys in New Jersey today.

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