Skip to Content

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

Klenk Law

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

What Our clients are saying

Klenk Law Logo
Stars

Peter Klenk was great in leading us in the estate planning process.He was clear in describing the various steps and what they would accomplish. We were well satisfied and pleased that we had Peter to guide us.

Klenk Law Logo
Stars

Klenk Law is an exceptional practice. Their fine lawyers and staff team up to produce excellent results for their clients. They excel at explaining the often cryptic laws and policies that govern estate planning right down to the complexities of the various "trust" frameworks. Peter himself manages each client together with his great team, and he has a rare quality to be both a walking encyclopedia of planning minutia and also one of the most likable lawyers I have ever had the pleasure of dealing with. He is truly generous in intellect and in his personal approach to getting the "big picture" for complex family structures. I trust him implicitly to help me make the right choices for the future. In short, Klenk Law is a gem of a firm.

Klenk Law Logo
Stars

Peter came highly recommended by a close friend to do our estate planning. We have been putting off for years. He is knowledgeable, professional and easy to work with.

Klenk Law Logo
Stars

I have had Peter Klenk prepare and revise my will. Always professional, knowledgeable and offers great advice. Highly recommend

Klenk Law Logo
Stars

Answered my question quickly and referred me to a colleague that could handle my problem

Let us put our expertise to work for you.

Free consultation within 24 hours.