Most people recognize that it can be costly to live in New Jersey, but they don’t realize that it may also be expensive to die here. Unless you have had a direct personal experience with some kind of estate planning, it’s unlikely that you understand the full implications of the state estate tax. It’s worth considering in advance to prevent a major hit on your assets and investments.
(Photo Credit: eracentral.com)
New Jersey is one of only two states (Maryland is the other) that collects both an estate tax and an inheritance tax. In the state of New Jersey, the estate tax is factored into any estate worth $675,000 or more and the estate tax includes stocks, bods, and real estate in addition to more common sources like savings or checking accounts.
A recent study from Fairleigh Dickinson University shows that New Jersey residents aren’t thrilled about the major tax hit on their assets, with 57 percent of New Jersey residents indicating their plans to leave the state on retiring since affordability is such a major issue. Are you one of the 57 percent? Estate tax planning using a DING trust, for example, may help to alleviate some of the impact on your estate by allowing you to transfer assets into a trust that avoids some of the negative implications of New Jersey taxes. To learn more about your options, contact our office today to discuss long term financial planning for your estate. Send us an email to info@lawesq.net or contact us via phone at 732-521-9455