Minimizing Taxation: Morris County Estate and Gift Tax Planning Lawyer
If you are not concerned about estate taxes, perhaps you should be. Congress has recently passed and the President has signed into law legislation that for the years 2011 and 2012 amends the federal estate tax to exempt estates of less than $5 million per person and $10 million per couple and a top tax rate of 35%. If not extended beyond 2012, in 2013 the federal estate tax returns to 2001 levels, with a $1 million exemption and maximum tax rate of 55%. The estate of anyone with a significant 401(k), IRA or real estate could be affected.
In addition to federal estate taxes, New Jersey applies a state estate tax of 11% to 16% on all estates above $675,000. Almost every estate that includes a retirement account or real estate is affected by the New Jersey estate tax.
At the law office of J. Jeffrey Press, P.A., we provide estate tax planning to minimize or eliminate both federal and New Jersey estate taxes and inheritance taxes through devices such as credit shelter trusts, qualified terminal interest ("QTIP") trusts, qualified personal residence trusts ("QPRT"), and other forms of trusts and outright gifts. The new law has increased the gift tax exemption from $1 million to $5 million and set the maximum gift tax rate at 35% for the next two years. We serve clients in Essex, Morris, Passaic and Somerset counties and throughout northern and central New Jersey.
Attorney J. Jeffrey Press has a Master of Laws degree in addition to his law degree.
Estate Planning Techniques to Minimize or Eliminate Estate Taxes
Estate planning to minimize estate taxes usually revolves around removing assets from the estate. There are several ways you can do this:
- Moving life insurance benefits to an irrevocable life insurance trust
- Moving a house to a qualified personal residence trust
- Placing assets in an irrevocable asset protection trust
It does not make sense to let tax consequences drive your entire estate plan. You may not be comfortable with giving up control of assets solely for the purpose of eliminating taxes. J. Jeffrey Press can provide you a range of options to meet your goals for control of your assets and minimizing of estate taxes.
Gift planning: You can give anyone up to $13,000 a year without filing a gift tax return. If you wish to give more, J. Jeffrey Press can advise you in techniques such as split gifting.
For More Information About Estate and Gift Tax Planning
To schedule a no-cost consultation with West Orange/Morris County estate tax attorney J. Jeffrey Press, in either West Orange or Morristown, call 973-323-2654 or fill out the contact form on this website.
