Federal Estate Tax Law to Change
The exclusions from the Federal Estate Tax goes to $3.5 million
in 2009 and then falls to $1 million in 2011. When, if and how Congress will address
this remains uncertain. Meanwhile the exclusions for the New Jersey Estate Tax
remains unchanged. To take maximum advantage of the various exclusion amounts,
it is imperative that beneficiary designations and ownership of assets follow your
estate plan. For instance, if a husband and wife have credit shelter trusts (allowing
a double deduction for both federal and New Jersey estate taxes), but if their assets
are jointly held, or if the spouse is the sole beneficiary of the life insurance
or retirement accounts, a portion of the potential deduction may be lost.
Now is a good time to review your estate plan and how assets will
flow in the event of death. Are the two synchronized?
Hinkle,
Fingles, & Prior maintains a multi-state law practice
with offices in Lawrenceville, Marlton, and Florham
Park, New Jersey, and Plymouth Meeting and Bala Cynwyd,
Pennsylvania. They lecture and write frequently on
topics of law, aging, disability and estate planning
and are available
to speak to groups in New Jersey
and Pennsylvania at no charge.
Comments
and suggestions for future articles should be mailed
to: Hinkle, Fingles & Prior, Attorneys at Law,
2651 Main Street, Suite A, Lawrenceville, New Jersey
08648-1012.
Copyright
2009 Hinkle, Fingles & Prior, Attorneys at Law. All rights reserved.
