New Century Planning
Robert Ryerson
Certified Financial Planner®

CONNECT

Address:

58 West Main Street; Suite 202
Freehold, New Jersey 07728
732-702-2777
Fax:908-325-0335

c/o Phyphar CPA Firm
29 Walter Hammond Place
Waldwick, New Jersey 07463
1-844-921-2400
Fax: 908-325-0335
NJ

Phone:

Estate Planning

Having the ongoing resources of qualified estate planners and estate attorneys lets New Century Planning better anticipate potential estate problems and plan defensive moves to protect your assets for future generations. By understanding your long-term goals, and integrating them with existing estate tax laws and limits, we can help ensure that years of hard work and savings are preserved, and that the state or IRS does not accidently become your largest beneficiary.

 

ESTATE TAXATION  IN NEW JERSEY


     New Jersey imposes an estate tax on individuals whose assets are valued at more than $675,000 upon their death.  Sometimes this level can be reached just with the decdent's primary residence, so many people can be subject to the New Jersey Estate Tax without consdiering themselves "rich" or even "well to do". While most people do not reach the Federal Government's level of $5,340,000, at which federal estate taxes are imposed, there are many individuals and even more couples who do hit that $675,000 level in New Jersey. There are planning techinques and strategies we can implement for you ( with appropriate legal documents from our estate planning attorneys,) that can eliminate or greatly reduce the impact of the New Jersey estate ( or inheritance) taxes your estate and beneficiaries would face. Here are some examples of what the New Jersey Estate tax would be, on various amounts below $5,340,000:


                 NET ESTATE NEW        JERSEY ESTATE TAX

                 $ 775,000                        $ 21,599.60

                 $ 875,000                        $ 26,399.60

                 $1,000,000                      $ 33,200

                 $1,350,000                      $ 54,800

                 $2,000,000                      $ 99,600

                 $2,500,000                      $138,800

                 $3,000,000                      $182,000

                 $3,500,000                      $229,200

                 $4,000,000                      $280,400

                 $4,500,000                      $335,600



     Unfortunately, the New Jersey Estate Tax has a broad reach in the sense that almost all assets that a persons owns upon death are subject to the $675,000 triggering level, including jointly held assets, IRAs and 401ks, and other tax deferred retirement accounts can make the tax liability larger, because those assets are also subject to the "income in respect of a decdent " (IRD) rules under Internal Revenue Code section 691. While this is a very important consideration for all people with large retirement account balances, it is too complicated for disucssion here--we urge you to contact us, or to meet with us for a free consultaion to learn more about the potentially severe tax implications of the IRD taxes, as well as what some solutions and strategies may be. By the way, even life insurance death benefits are includable as part of the gross estate ( but life insurance proceeds are INCOME TAX FREE)..

There are significant tax saving planning opportunities for married couples in New Jersey, including a total tax deferral for the surviving spouse. However, even though  taxes are not imposed when assets pass to a surviving spouse, once that spouse passes on , and assets pass to children or grandchildren, or other beneficiaries, estate taxes may be triggered, and these can substantially reduce the intended inheritance for the estate's beneficiaries.

Some of the estate planning tools and strategies we use are:

  • Wills  ( including credit shelter trust wills) 
  • Power of Attorney documents
  • Revocable Living Trusts
  • Irrevocable ( "insurance") Trusts
  • Special Needs Trusts
  • Charitable Planning Trusts
  • Asset protection
  • Long Term Care/Medicaid Planning
  • Gifting Strategies
  • Estate and Inheritance Tax Planning*

 

*Our affiliations with Certified Public Accountants, Tax Preparers, and Tax Attorneys enable us to provide truly comprehensive planning. In consulting these professionals during the initial planning stages, we're often able to maximize growth opportunities while reducing, deferring, and in some cases even entirely eliminating taxable events for our clients.