Ridgewood Will Preparation Lawyers

Creating a Last Will and Testament

Are you considering creating a New Jersey or New York last will and testament? There are many things to think about when deciding how to distribute your assets. An experienced will preparation attorney can help you make concrete decisions that protect your assets, provide for your family and give you peace of mind.

A Personalized Estate Plan From an Experienced Will Preparation Lawyer

Since 1975, the Ridgewood will preparation attorneys at Michael A. Manna & Associates have provided comprehensive elder law and estate planning advice to clients throughout New Jersey and New York. We understand the ins and outs of will preparation and can help you create a will that effectively meets your financial goals.

The founder of our law firm, attorney Michael A. Manna, has an accounting background and has worked in the tax department of the CPA firm KPMG. Not only is he a leader in the elder law and estate planning fields, but he also has a strong understanding of income tax, federal estate tax and capital gains tax. This experience allows him to help clients prepare wills that minimize tax liability and protect assets.

Call 201-345-3018 or send us an e-mail for a free consultation about will preparation.

Probate, Capital Gains and Death Taxes

Many people believe that they should strip a person — or themselves — of all of their assets when they are dying in order to avoid federal and state death taxes. Many times, this is not the proper course of action to take. In fact:

• Probate in New Jersey is a trivial matter, often involving a quick trip to the surrogates office in the county seat where the decedent was a resident. The average probate cost is around $150.
• On death, under most circumstances, capital gains go away.  In order to get  a step up in basis, your loved one must own the asset at the time of his or her death. This could save tens of thousands of dollars in capital gains taxes when theses assets are sold subsequently.

Instead of stripping a dying client of his or her assets, we intentionally load them up with assets.

Why?

• When a person dies with an asset that he or she has owned for many years, the cost basis (the original cost in the property) changes to the current value of the property at the time of death. This can save tens of thousands of dollars in capital gains taxes when the asset is sold. For example, if you own land that you purchased in the 1940s, the cost basis of that land would be the amount of the purchase price that you paid in 1940. If you sold the land at its current value, the difference between your original cost in 1940 and the sale price would be a capital gain and subject to capital gains taxes. If, however, you died owning the property, the cost basis would change to the market value of that property on the date of death. If you subsequently sold it for that amount, there would be no capital gain and, therefore, no capital gains tax to pay, resulting in a tax savings that could approach tens of thousands of dollars.
• If you give assets away during your lifetime, Medicaid will penalize you for making that gift. The trick is to know when  and how to give away your assets so that you can minimize Medicaid penalties and tax liability. We will help you evaluate all of these factors and lead you to the best decision.

Do You Need a Will?

Many people may tell you that dying without a will means that your family will lose your assets. This is not true. Both New Jersey and New York have a law called the law of intestate succession. This law would leave your assets to your relatives upon your death, but not necessarily in the proportions or to the persons you may want.

Having a will can eliminate this problem and save money. First, it is much more expensive to probate an estate without a will. Second, you can specify who will receive your assets on your death. And third, your will can be designed to minimize estate taxes.

Contact an Attorney

For a free initial consultation with a Ridgewood will preparation attorney at Michael A. Manna & Associates, call 201-345-3018 or send us an e-mail.