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.
As the new year begins people consider changes that they may wish to make. These changes may involve estate planning, particularly if a life changing event such as a marriage or the birth of a child has occurred. Many terms are thrown around about estate planning, and one that is frequently heard in New Jersey and elsewhere is probate.
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.
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.
Having a will or trust in place can be important for anyone living in New Jersey. Most people have assets or other property they would wish to protect. Estate planning can be particularly important if one is a business owner and has other family members involved in the business.
It's October and the holiday season will soon be here. It is often said, by people young and old in New Jersey, that they just have too much stuff. There has been a move of late to give to charitable contributions in lieu of gifts to loved ones. Another option would be to get the young adults in one's life started on a long term savings and retirement plan or other aspects of estate planning.
Divorce and remarriage in New Jersey are very common in this day and age. Complex family structures are often one result of this phenomenon. One result of all of this is more complex estate planning. When both partners have offspring from prior marriages and possibly children together from the new marriage, they may want to ensure that children are provided for fairly after their deaths.
Few things in life are guaranteed in New Jersey, but death and taxes are among them. According to one 2017 report, more than 50 percent of Americans have not established a will or a trust and many of those will die without establishing an estate plan that could leave their heirs with a hefty tax bill. Estate planning is vital to ensure that one's final wishes are successfully carried out. Many famous people have passed away without having a will or a trust. Among them are Jimi Hendrix, Prince and Aretha Franklin.
A person in New Jersey feels he or she has done a great job of planning for his or her future. Estate planning has been thought out and put in place and life is good. Time passes, things change and an estate plan may need attention to ensure it is still serving a person well.