Donnelly Ritigstein Law Offices
Call for a Free Consultation
Toll Free 866-907-6368 Local 856-324-6147

With tax season ending, consider estate tax

While the filing deadline for federal income taxes has passed, many New Jersey residents are likely still thinking about last year's taxes. Some people may have gotten a refund and others had to pay. Many people may like to put the stress of tax season behind them and think about it again next year. However, experts warn that now might be the perfect time to think about taxes and how to reduce peoples' liability. In particular, people should consider their estate plan and if it has been crafted to limit their potential estate tax. Taxes may not be the first thing people think about when they think about estate planning. However, it should be a consideration. If people think that they do have enough assets to qualify for estate taxes, they should think again.

Experts warn individuals to understand everything that is included in estates. Upon a person's death the government won't just include cash in the estate, but other valuables including personal property, real estate, investments, retirement accounts and all other assets will be included. Furthermore, the proceeds from life insurance payments will also be included in the estate and be subject to estate tax. With all of this included, people may find that their families could end up owing estate tax if they were to pass away. Even if people do not owe federal taxes, state taxes can be taken.

Therefore, people need to consider whether their estate plans minimize the risk of paying high amounts of estate taxes. With the right estate planning, people can ensure that their families are taken care of. Depending on the specific facts in each case, using certain estate planning tools -- like a will or trust -- people maximize the benefit to their families upon their death. Without proper estate planning, people's families could be left with a large financial burden at an emotionally difficult time.

Source: The Wall Street Journal, "5 tax mistakes you should never make again," April 18, 2014

No Comments

Leave a comment
Comment Information

Moorestown Office
212 West Route 38
Suite 200
Moorestown, NJ 08057

Map & Directions

Haddonfield Office
132 Kings Highway E
Suite 105
Haddonfield, NJ 08033

Map & Directions

Linwood Office
327 Central Avenue
Linwood, NJ 08221

Map & Directions

Cape May Court House Office
618 Route 9 South
Cape May Court House, NJ 08210

Map & Directions

Gloucester, Cumberland and Salem County Offices
57 Euclid St.
Woodbury, NJ 08096

Map & Directions

Back To Top