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Planning In Advance To Reduce Estate Taxes

Residents of New Jersey face the highest estate and inheritance tax burden in the country. Fortunately however, there are a number of estate planning tools that can reduce or eliminate the need to pay New Jersey and federal estate taxes.

Since 1975, the Ridgewood estate tax planning attorneys at the law firm of The Manna Helmy Law Group have practiced in the estate planning area. Our services include estate tax planning and gifting strategies that can reduce state taxes and protect assets.

Create A Personalized Estate Tax Reduction Plan

The lawyers at The Manna Helmy Law Group have developed estate tax reduction plans for many clients in New Jersey and New York, including many large estates involving complex assets. Our firm will review your financial situation and your desires for your family. We can create a plan using various legal vehicles such as living trusts and gifting to reduce or eliminate your potential estate tax.

Understanding New Jersey Gift Tax

For example, large gifts made shortly before death can save a large amount of New Jersey estate tax. Since New Jersey has no gift tax and the IRS has a $5 million lifetime gift tax/estate tax exemption, significant New Jersey taxes can be saved with this method. Proper analysis of capital gains tax ramifications and other considerations must be done before hand. Such opportunities should always be explored.

Our firm will work closely with you to develop the plan that suits your needs. In one case, our firm advised a New Jersey woman with a terminal illness and an estate valued at approximately $5 million. We developed a plan using gifting strategies that reduced the value of her New Jersey taxable estate and saved her heirs more than $250,000.

Sometimes Paying Estate Tax Makes Sense

In other situations, you may be better off paying estate taxes. Suppose you have highly appreciated assets. Since appreciated assets get a “stepped up basis” on death (all capital gains go away after death), you may want to choose to transfer the asset upon death and pay the estate tax, instead of subjecting the appreciated assets to the capital gains tax. The estate tax may prove to be far less than the capital gains tax due on the sale of such assets.

We have knowledge and experience in these matters. We can analyze the various tax factors affecting your situation and develop the right plan for you — a plan that achieves your goals and maximizes the assets that your family and loved ones receive.

Proper Planning For Estate Taxes

We can help you develop a plan that is designed to minimize your estate’s tax liabilities. Contact our Ridgewood estate tax planning lawyers online or call 201-345-3018 to schedule a free initial consultation to discuss your situation. We represent clients throughout New Jersey and New York.