For many older people, concern over the possibility of dementia is a serious matter. Anyone who has cared for a loved one who suffers from dementia understands the difficulties involved. When a fully capable adult begins to lose his or her ability to function independently, the entire family is affected. Many in New Jersey look for ways to address this risk within their estate planning package, especially in regard to IRA savings.
Including dementia risk within estate planning
An estate planning gift that truly keep giving
As the holidays come to a close, many New Jersey families are wondering if they gave their loved ones the best possible gifts, and if those gifts will be put to use in the coming year. One present that many may not have considered is the gift of estate planning services. While it may seem like an odd thing for one family member to give to another, this set of advance planning tools is a present that can be incredibly powerful and effective.
Estate planning news: Exclusion amount rising in 2016
Most people in New Jersey are aware that there are rules in place that govern how much estate tax can be charged on assets handed down after an individual's death. Some know that the current amount lies at $5.43 million, and they will go to great lengths to create estate planning packages that minimize their taxable estates. Anything above that amount is subject to estate tax, which currently sits at 40 percent. The amount of the estate tax exclusion is adjusted for inflation, and it will increase to $5.45 million in 2016.
The biggest estate planning mistake possible
When creating an estate plan, there are a number of errors that individuals can make. Some of these mistakes are minor, while others can have a significant impact on the division of wealth following one's death. The biggest mistake of all, however, lies in the failure to create any type estate planning package. Failure to act can make a loss all the more difficult for New Jersey residents who survive a loved one.
How swap powers impact estate planning options
Quite a few New Jersey families make use of various types of trusts in their estate planning approach. Trusts can be powerful estate planning tools for preserving wealth and passing down an inheritance to loved ones. There are a number of aspects of trusts that many fail to recognize, however, which can lead to a scenario in which these tools are not used to their highest potential.
A bypass trust can reduce estate tax obligation
Many New Jersey families are looking for ways to reduce their estate tax burden. One option for married couples lies in using a bypass trust to hand down retirement savings. In order to make use of this tool, it is important to understand how these trusts work and how to maximize their effectiveness in reducing estate tax obligations.
Estate planning for young adults in New Jersey
Many in New Jersey tend to avoid topics that involve discussions about their own mortality. However, with regard to certain legal issues, such as wills and estate planning, it is typically advisable to not only talk about such matters but to take necessary steps toward crafting a thorough plan that documents one's intentions insofar an asset distribution, inheritance and/or medical directives are concerned. Executing such documents while one is still of sound mind can help loved ones avoid complications further down the line.
Facilities for safe online storage of estate planning documents
It is not uncommon for loved ones in New Jersey to have to scramble around, guessing where a deceased spouse, parent or sibling stored important information. Upon the death of a loved one, there is vital information that needs to be accessible promptly. This may include a will or testament, personal preferences about end-of-life arrangements and other matters related to estate planning.
