When New Jersey business owners plan their estates, they may wish to leave both their business and non-business assets to all of their children. However, this can present a challenge if not all of the children are involved in the business. It may be difficult to leave an equitable inheritance without a lot of resentment and confusion, but it is possible with the proper planning.
New Jersey estate planning: Savings bonds subject to estate tax
It is a commonly held belief that property that passes outside of probate, such as savings bonds, is not subject to federal or New Jersey estate taxes. However, whether these assets are taxed or not depends on the value of the decedent's net estate and taxable gifts. Individuals who are estate planning may wish to calculate the net worth of their estate in order to determine if any estate taxes will be owed on assets that pass outside of their wills. This may ensure that there are no surprises later on.
A New Jersey estate plan can treat blended families fairly
With nearly half of all marriages ending in divorce, there are many blended families throughout New Jersey and elsewhere. Parents who are raising children from more than one marriage may be concerned about how to draft an estate plan that includes everyone. While it may be a daunting task, it can be done as long as the couple discusses their wishes openly and honestly before taking any legal steps.
Many parents cannot leave inheritance, study shows
It used to be a common practice for parents to leave an inheritance for their children, and many parents in the past took great care to do so. However, a recent study shows that inheritance practices in New Jersey and elsewhere are changing. As parents are living longer, they are depleting more of their savings and retirement funds, leaving few to no assets for their children.
New Jersey estate planning: Plan ahead for potential problems
Most people who are in the process of estate planning try to anticipate any problems that may arise as the estate is being settled. However, even the most thorough estate plans may leave some unresolved issues that can make things difficult for a grieving family. New Jersey residents may do well to double check their estate planning details to ensure that some common problems can be avoided.
