Does New Jersey have an inheritance tax?

New Jersey does have an inheritance tax but it does not apply to spouses or lineal ascendants and descendants.

What does per stirpes mean?

Per stirpes means that if a parent leaves something to a child and a child dies before the parent, the children of the deceased child take the share of their deceased parent.

What is the advantage of a disclaimer trust?

A disclaimer trust is designed to maximize savings of Federal Estate Tax while giving the surviving spouse the maximum control and benefit under current tax law. The surviving spouse makes the decision on how much to use to fund the credit shelter trust after the death of the first spouse.

Do I need a professional executor and trustee?

Most families select a family member rather than a professional to serve as executor and trustee. However, these jobs are becoming increasingly more difficult as laws change. Executors and trustees must comply with such laws as the Prudent Investor Act and the Principal and Income Act as well as a myriad of tax laws. If a person has an estate that is large or complex, a professional trustee should be considered.

When should I use a Living Trust?

A Living Trust is designed to avoid probate. If a person owns real estate in more than one state, probate in multiple states can be avoided through the use of a Living Trust. A Living Trust can also save executor’s commissions and reduce attorney’s fees in some situations. To a certain extent, they provide privacy.

Will a Living Trust help me save estate taxes?

A Living Trust is not designed to save taxes. Federal Estate Taxes can be saved either by using a Living Trust or by a Will. There is no advantage or disadvantage from a Federal Estate Tax standpoint in using a Living Trust.

How can I take care of my current spouse and still protect my children of a prior marriage?

There are several ways to accomplish this objective. One is to leave money in a trust for the benefit of a surviving spouse with a provision that the balance goes to the children of a prior marriage on the death of the spouse. Another way is to have spouses sign a contract to make a will so that the second spouse to die does not have the opportunity to change his or her will and disinherit the children from the prior marriage of the first spouse to die.

Why shouldn’t I download my own will from the Internet?

Internet wills have become more sophisticated, however, if there is a problem with the will, it is not discovered until after a person dies. At that time, it is too late to fix it. A lifetime of hard work and savings are at stake. Therefore, wills should be crafted carefully to carry out a persons intentions with respect to distribution. Wills must also be signed, witnessed and acknowledged properly. The cost of having a will professionally drawn and the execution properly supervised is minuscule in comparison to the damage that can be done by an improper will.

Aren’t wills, living wills, powers of attorney’ forms that anyone can complete??

Modern law offices all rely heavily on technology. However, there are a vast number of choices in any one persons wills, living wills and powers of attorney. It is not simply a matter of filling in blanks on forms.