Elderly people need to have a proper estate planning strategy to ensure they leave all their belongings to the right people after death. However, many people fail to do this. A report from the American Association of Retired Persons shows that only four out of every 10 adults in the United States of America actually have a will.
Estate planning consists of more than drafting a will, establishing a health-care directive and appointing a durable power of attorney. Unfortunately, it also entails considering how various state taxes will affect your estate, which can determine the plans you decide to make.
When it comes to estate planning, the decisions you make can affect the amount of capital gains tax that is assessed to your estate. Capital gains taxes can affect your beneficiaries tax situation and diminish your estate's value. High-value estates are particularly vulnerable. The value of your property and assets as of the date of your death determine your capital gains taxes.
Understanding what makes your estate planning complete can be difficult, especially if this is your first time through the process. As you consider your options and put together your choices for wills, trusts, and other pieces of your larger estate planning picture, it is also important to think about your decisions about end of life care. While some people do not develop strong feelings about the measures used to preserve their lives during a medical emergency and choose to let the doctors' recommendations stand, many people wish to set limits on the treatments they will endure if they move past a certain point of physical incapacitation.
When children are growing up, their parents play a critical role in their development. When parents are growing old, adult children are likely to play a crucial role in caring for their parents. This reversal of roles can be challenging, and will only be successful when both parties understand their roles and have similar expectations. According to Fidelity Investment's Family & Finance report, parents and children don't always see eye-to-eye in these matters. This survey asked parents and children questions about financial support, estate planning, retirement income, elder care and other issues. It found that 40% of families are not in agreement about these important issues.
The unexpected death of musician Prince stunned people across the United States and the world. Having sold more than one hundred million albums over his career and having completed many successful concert tours, Prince amassed a fortune estimated at many hundreds of millions of dollars. Considering the size of his estate, the fact that Prince died without a will or trust was surprising to many estate planning professionals.
New Jersey is one of the only states to have both an estate tax and inheritance tax. Currently, New Jersey has an estate tax rate of up to 16% on assets more than $675,000. Furthermore, New Jersey has an inheritance tax of 16% that applies to people other than spouses, children and parents. These taxes are in addition to the federal estate tax.
Many New Jersey residents often consider their pets as part of the family. Therefore, they may be concerned about the welfare of those pets in the event that the owners suffer from a situation in which they are not able to properly care for their pets. In some cases, that issue could be due to illness or incapacitation or potentially due to the owner's demise. If individuals are concerned about pet care, they may wish to consider addressing the matter during estate planning.
For New Jersey residents who want to ensure that their families understand their end-of-life wishes, estate planning is an action to consider. By creating an estate plan, individuals can detail what actions should take place in the event of their incapacitation, who should receive what assets after death and other similar topics. Though estate planning can prove beneficial in the future, many individuals put off creating their plans.
One of the primary purposes of an estate plan is to create a body of documents and vehicles to smoothly transfer wealth from one party to others after death. The concept is a simple one, but the construction of an estate planning package can be complex. One of the first and foremost matters that must be handled by New Jersey clients involves selecting one's beneficiaries.