New Jersey has one of the largest populations of elderly residents in the entire country. Many of these people do not have a trust or will in place. Others may have one, but are unaware of the tax consequences of it. Some are open to the idea, but are wondering, “Should I or should I not have a will or trust in place?” An experienced New Jersey Wills and Trusts attorney can answer all of your questions pertaining to wills and trusts, as well as give you the pros and cons to each.
One of the biggest concerns of those who have or are contemplating setting up trusts are the tax implications. Some believe that trusts are not subject to NJ inheritance and/or estate taxes. Unfortunately, this is not true. Many trusts, both revocable and irrevocable, are subject to these taxes. Many factors go into determining the taxability of a trust. The entire value of a revocable trust is generally subject to inheritance taxes. Irrevocable trusts have a much better chance of avoiding the inheritance tax, but will be evaluated on a case-by-case basis. If the creator of the irrevocable trust retains certain powers, such as the right to receive income from the trust, the power to change who the beneficiary of the trust it, or the possession or enjoyment of property that is transferred to the trust, the entire value of the irrevocable trust will be subject to New Jersey estate tax when the creator dies.
Avoiding estate and/or inheritance taxation on your New Jersey Trust can be a complicated matter. A knowledgeable New Jersey Trusts lawyer can help answer all of your questions and assist you in setting up a proper trust or will.
Please contact Fredrick P. Niemann, Esq. at 888-800-7442 if you have any further questions. He can also be emailed directly at firstname.lastname@example.org/. He looks forward to helping you.