Florham Park Legal Blog

The New Year's celebrations are over in New Jersey and many people's thoughts are turning to tax season. There are many changes as a result of changes in the tax law that may prompt people to review their estate plans and tax strategies. It is a good idea to periodically review estate planning measures to ensure that the plan meets one's goals while lowering the possible tax burden.

One of the biggest changes in the tax law and the one that has the biggest potential impact on estate plans is the change in the amount of the gift tax exemption. Many people, parents and grandparents in particular, enjoy being able to share their wealth with family and see the benefits of it while they are still living. The amount that can now be given as a gift has increased to $11.4 million per person or $22.8 million per couple.

Multiple couples from the popular reality TV franchise, including "The Real Housewives of New Jersey," are in the midst of divorces. Some are divorcing because of alleged affairs and others seemingly for irreconcilable differences. The emotional anguish is frequently splashed across the tabloids for all to see. Divorce between noncelebrities in New Jersey can be just as emotional, though hopefully more private.

Before one takes the definitive step of filing for divorce there are issues that should be considered. If there are children involved, is one prepared for the implications of the divorce on their lives? In a shared custody arrangement, each parent will see less of the children than they may be accustomed to and holidays can be made difficult if children are alternating between parents for holidays and vacations.

The old year is ending and a new one is about to begin in New Jersey. With the beginning of 2019 comes the implementation of new tax laws that determine how large an estate can be before it is subject to the federal estate tax. The estate and gift tax exemption for 2019 is $11.4 million. To better understand how much this amount has changed, consider that the exemption was $5.49 million as recently as 2017. This change can have an impact on one's estate planning.

If an estate or gift exceeds that amount, it will be taxed at a flat rate of 40 percent. The majority of people have estates that are smaller than the exempted amount, and some may think that the increase in the exemption negates a need for an estate plan.Young professionals may wish to carefully consider the implications of not having an estate plan. In the event of a premature death or serious injury, what would one's final wishes be?

Dying without a will or trust in place has gotten a lot of attention in recent months and years as several prominent people have died without a will or a trust. Estate planning is vital to ensuring that one's final wishes regarding health care directives, burial plans and so forth are carried out according to one's instructions. It is also important that the people entrusted with carrying out those wishes are aware of the existence and location of the documents in New Jersey.

In the absence of severe illness, few people anticipate an early or sudden death. As unpleasant as it may be to consider, it is a possibility people face every day. As families gather for the holidays, it's a good time to take a few moments to ensure that loved ones are familiar with the existence of such information and its location.