Skip to Content

We are a Veteran Owned Business, providing 20% discounts for Veterans, First Responders, Elementary and High School teachers. Please contact us to set up a phone or Zoom meeting. Taking care of you and your family, It's What We Do!

What good is an Irrevocable Life Insurance Trust for me in New Jersey?

Posted on Fri Aug 14, 2015, on Revocable Trusts and Living Trusts

From our “Ask a Question” Mailbag: New Jersey Irrevocable Life Insurance Trust

Most Recently Updated July 19, 2018. 

“My estate is worth about $4,000,000, which includes a $1,000,000 life insurance policy. At my death, my estate passes to my two children. Now that the Federal Estate Tax Exemption is at $5,000,000.00, what good is an Irrevocable Life Insurance Trust for me?”

How Do I Start My Estate Planning

New Jersey Irrevocable Life Insurance Trust

New Jersey Irrevocable Life Insurance Trust

In rough terms, as long as your estate stays under $5,000,000.00 (adjusted for inflation) at your death your estate will not owe any Federal Estate Tax. 

But you are a resident of Camden County, New Jersey, so you are forgetting about the New Jersey Inheritance Tax and the New Jersey Estate Tax. If your assets pass to your children, the New Jersey Inheritance Tax will be zero, but the New Jersey Estate Tax taxes all assets over $675,000.00. This will include the $1,000,000 life insurance policy. Your family will likely recognize a substantial savings if you form an Irrevocable Life Insurance Trust to avoid the New Jersey Estate Tax.

More Planning Questions?

The irrevocable life insurance trust is only a piece of the Estate Planning process. By all means, if you want to learn more, please read my more detailed article, Estate Planning Everything You Need to Know.

In Conclusion: New Jersey Irrevocable Life Insurance Trust

I hope that this article was helpful in explaining the irrevocable life insurance trust. Further, I included links to even more detailed information on my website so you can learn more. Therefore, please contact me and let me know how I did. Certainly, your comments and questions are welcome!

Let our Estate Planning lawyers help walk you through what can be a confusing process. To begin with, call to speak to one of our experienced estate planning lawyers.  By all means, our lawyers are ready to answer your questions. In fact, feel free to contact our office for a free consultation. Ultimately our goal is to make the process as painless as possible!

Wills, Trusts, Probate, and Estate Litigation, It’s All We Do!

 

 

Tags:

Camden County, Death taxes, Estate Planning, Estate Planning Attorney, Estate Planning Lawyer, Estate Tax, Irrevocable Life Insurance Trust, Irrevocable Trust, Life Insurance, New Jersey

Peter KlenkPeter Klenk

What Our clients are saying

Klenk Law Logo
Stars

Qiana Wright

Great friendly staff

Klenk Law Logo
Stars

Anna B.

Professional, cheerful, thorough and fast. Peter responded to my request for a consultation right away, and within just a few days my last will and living will were done. Rates are standard.

Klenk Law Logo
Stars

Alan Kaplan

Peter has done our family's trust and estate work since our children were born. He is not only extremely knowledgeable and honest, but makes sure that our arrangements remain current with the changing legal landscape. I would give him my highest recommendation as a professional in his field.

Klenk Law Logo
Stars

Brian M.

Peter explained a complex subject very clearly, helped us to decide the best approach to managing our estate and then made it very easy for us to execute the required documents. He will be a valuable resource for years to come and clearly has a great understanding of estate law that will lead to innovative solutions for us. I would unhesitatingly recommend him for estate planning.

Klenk Law Logo
Stars

A Google User

Peter is a model attorney who puts his clients first at all costs. His extensive expertise in estate planning and tax planning was a great comfort as we began, and have expanded, our family. He is very thoughtful, generous, and quick witted. His approach towards his business has been an inspiration to his peer group, and his zest for life is extremely infectious. Without reservation, I highly recommend Peter as trusted and cherished counsel

Let us put our expertise to work for you.

Free consultation within 24 hours.