From Our “Ask a Question” Mailbag: “What are the major tax changes for 2025?”“ Major Tax Changes for 2025 Including Some Updates. Each year brings fresh hope for a better, brighter new year. And changes to the tax code. What is new and exciting in the world of taxes? I […]
Tag: Estate Tax
New Jersey Democrats and Republicans arrived at a deal this last week. Though not everyone is happy, making deals is what gets legislation done and an increase is such deals would be appreciated.
From Our “Ask a Question” mailbag: “My father died recently, and I am the executor. I will file his Will next week. But my siblings have already contacted the life insurance company to collect the life insurance. Can they receive the life insurance before I file the Will? Is collecting life insurance before filing the Will proper?”
From Our “Ask a Question” mailbag: “My father at his death gave my brother, and I equal amounts. My brother got life insurance, and I got the house and cash. The Will says the residue pays all taxes. Do we split the New Jersey Estate Tax on life insurance?
Our “Ask a Question” mailbag addresses naming children as beneficiary.
“Should my life insurance name my children as beneficiary?”
From our “Ask a Question” mailbag: I have heard that if I form a trust, I can help reduce the federal estatetax due at my death, is that true?
There are many types of trusts. Some help reduce the federal estate tax and others do not.
From our “Ask a Question” mailbag: My CPA told me that I should form a trust to help the save federal estate tax payable at my death. I think he may have called it a Revocable Living Trust. Is that good advice?
From our “Ask a Question” mailbag: My brother is the Personal Representative of our aunt’s estate. He took care of nearly everything, but is stumped by the tax returns. All he needs help with are the tax returns, can you assist him?
We are happy to help with as much or as little work as you need. The various New Jersey tax returns can be tricky, but my Probate department completes them regularly. We would be happy to help out by only assisting with those returns.
From our “Ask a Question” mailbag: < strong>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?
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.
From our “Ask a Question” mailbag: My mother transferred her Philadelphia County home to me two years ago. She recently died. I am going to sell the house soon, but do I have to pay Pennsylvania Inheritance Tax?
Not in your case. The Pennsylvania Inheritance Tax of 4.5% applies to transfers to children at death, and includes all gifts made within one year of the date of death. If the house was transferred properly into your name 2 years ago, it will not be subject to the Pennsylvania Inheritance Tax.
