Estate Planning: Still a Must Do!

New Jersey Estate Planning

As of January 1, 2018, there is no estate tax in New Jersey. This means that your heirs will not have to pay to New Jersey a tax based on the value of your estate.  Many people mistakenly believe that because the estate tax was alleviated that they no longer need to do any estate planning or even have a will. However, at minimum, an individual should have a Power of Attorney, Advanced Directive and a Last Will and Testament.

The Power of Attorney ensures that should a person become unable to make financial decisions due to health issues or otherwise, that they have an agent appointed to act on their behalf during their life. The agent chosen will be able to manage bank accounts and investments and pay bills on behalf of the individual.

The Advanced Directive ensures that should a person become unable to make medical decisions, that they have a representative to act on their behalf during their life. An individual can indicate their preferences as to life sustaining treatment, organ donation and orders for resuscitation in the Advanced Directive.

What is a last will and testament?

The Last Will and Testament permits the individual to choose to whom their assets will be left upon their passing and who will be in charge of distributing those assets as an executor and if a trust is established, managing those assets as trustee. A guardian for minor children should also be named in the will.

What about a New Jersey Inheritance Tax?

Even though there is no longer a New Jersey estate tax, there is still a New Jersey inheritance tax, which is assessed based on the relationship between the individual and the heirs named in their will. There is also a federal estate tax that is imposed for very large estates.

Please contact an experienced New Jersey estate planning attorney at Gruber, Colabella, Liuzza and Thompson to review your options and to discuss your estate plan.

Racquel G. Hiben, Esq.