The confusion and frustration of having to deal with inheritance tax can be quite overwhelming when dealing with the loss of a loved one. Heirs can suffer quite a lengthy process and experience quite a financial loss if you have not properly planned your estate. Many people do not think of the taxes imposed and find out too late, which unfortunately can result in the heirs of the estate suffering.
In New Jersey receiving an inheritance doesn’t come without strings attached. If you take a quick overview of New Jersey inheritance tax you will find that tax is imposed on an estate when it is left to a descendant.
The state of New Jersey has a very low estate tax exemption of around $675,000.00, which would be adequate if only probate assets were considered legally part of a deceased’s estate. Unfortunately non-probate assets are also included in a deceased’s estate and this is where inheritance tax can catch you out. Of course there are ways in which individuals can legally avoid New Jersey inheritance tax, if they take the time to implement proper measures before it’s too late.
Avoid inheritance tax with a marital trust
If you have been wondering how inheritance tax can be avoided, then marital trusts are the answer and have been for many people over the years, in New Jersey.
The allowances of a marital trust are as follows:
- The trust makes arrangements for a portion of the deceased’s spouse’s estate to support the surviving spouse.
- Certain assets are included in the surviving spouse’s estate.
- The surviving spouse’s estate can avoid extensive tax liability if this trust is carefully constructed and managed.
Do I need a lawyer to assist with avoiding inheritance tax?
If you are unsure of the process and want assistance with understanding how much tax will be attached to your property and other assets then yes, you definitely need the assistance of a lawyer. An experienced lawyer can save your heirs the time and hassle of having to figure out what taxes are involved, or more distressing – losing a large chunk of their inheritance to tax. You can save time, frustration and money if you choose to hire a qualified Elder Law Attorney.
At SCC Legal, Frank Campisano is dedicated to assisting clients with their estate planning needs. He is a compassionate Elder Law attorney and will professionally advise you on the best course of action at all times. He and his team are empathetic to your needs and situation and are trusted legal advisors in the New Jersey area.
At SCC Legal we are confident we can minimize the amount of New Jersey inheritance tax imposed upon an estate by providing a professional estate planning service and drafting a marital trust fund that will protect the deceased’s estate.