How winning a personal injury case can affect your estate planning

Estate planning is all about the creation of legal documents and structures that ensure that your assets go to your dependents rather than to the government. While estate planning is important for anyone who has assets of any value or dependents they want to ensure are cared for, it is also true that the higher your income and the larger your assets, the more complex your estate planning needs to be. A settlement in a personal injury case can increase your assets in such a way as to change your estate planning requirements, says Frank R. Campisano, a leading NJ estate planning attorney.
• State and Federal taxes: While the State of New Jersey is eliminating their own estate taxes, the federal government will apply its own estate taxes on those that are valued at over $5.45 million. After this point, estate taxes will apply – but a comprehensive estate plan will help to reduce their impact as far as possible.
Keeping an official record: The wheels of the legal and government system rely on accurate, official documentation – so it is vital that the official record is kept up to date. This is especially important if the plaintiff is medically unwell or injured to the point of disability and is unable to continue working, or in cases where a minor has lost their parent or parents and a trust is needed too to ensure their care.
Medical expense planning: Medical expenses in these cases are often long-term, so it is important that your estate plan provides for for future needs. If these expenses are not recognized in the estate plan, you may end up being charged a higher federal tax as money needed for medical expenses will be added to the value of your estate.

Minimize federal taxes on your estate – Speak to a qualified NJ estate planning attorney

If you would like further guidance on minimizing your estate taxes, Frank R. Campisano can provide you with the necessary expert legal advice and professional insight.
In addition, he can can also assist you with all other aspects of your estate plan, from drawing up medical directives and Power of Attorney documents to Medicaid planning. For more information on setting up or changing an estate plan, please contact us at the law firm of Sedita, Campisano & Campisano, LLC in New Jersey or visit our website at https://www.scclegal.com/

Say goodbye to NJ death tax in 2017!

The State of New Jersey has long been known for having a state as well as a federal tax on estates, making estate planning more complex than ever for individuals who want to leave their assets to their loved ones rather than the government. The New Year, however, brings some great news with the death of the NJ estate tax.

As of January 1, 2017, the credit against the New Jersey estate tax increases from $675,000 up to $2 million, making anyone with an estate of less than $2 million exempt from this estate tax. On 1 January 2018, this tax will be completely eliminated.

What does this mean for inheritance tax?

In addition to estate tax, the State of New Jersey also implements an inheritance tax on the beneficiaries of decedents, which generally ranges from 11-15% of the value of the inheritance based on how closely the beneficiary is related to the decedent. Unfortunately, this tax is being kept in place by the state and will not be affected by this new legislation.

How can I reduce my exposure to federal estate tax?

Citizens of New Jersey will still be subject to federal estate tax, which is implemented on all estates valued in excess of $5,450,000. With a professionally devised estate plan, your assets will be better protected from federal taxation.

What does this mean for my current estate plan?

For many New Jersey citizens, much time and effort has been spent on developing complex estate plans that preserve assets in Wills and trusts for loved ones rather than having them subject to state taxation. With the elimination of this tax, these estate plans are immediately outdated and ineffective. It is therefore essential that, regardless of the value of your assets, a new estate plan is professionally developed by an experienced attorney in order to correctly assign your assets and plan for your future or long-term care.

New Jersey citizen? Update your estate plan today!

This state legislature has real implications for your estate plan as well as Medicaid and financial planning, so speak to New Jersey estate planning attorney Frank R. Campisano today. Whether you want to create a Last Will and Testament or are interested in updating more complex estate planning documents such as trusts and Power of Attorney documents, he can ensure that the right legal documentation is developed in order to meet your specific wishes.

For peace of mind estate planning or advice on creating your Last Will and Testament, please contact Frank R. Campisano and visit our website today at https://www.scclegal.com/

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