There are many terms that you must know when working through estate administration or when drafting a will in New Jersey, from beneficiary to fiduciary. While these are more common, one you may not have heard as often is "residue." When it comes to a will or an estate, what is the residue?
Estate and inheritance taxes have been in the news lately, both in New Jersey and nationwide. In a recent, highly partisan vote, the U.S. House of Representatives recently called for the complete repeal of the federal estate trinax. Here, estate and inheritance taxes were a hot topic dug budget negotiations. Some lawmakers would consider expanding the tax to fill up the neglected Transportation Trust Fund. Others argue for limiting their application to fewer people.
The vast majority of the time, when people have taken the time to develop a sound estate plan under the guidance of a lawyer, there won't be a problem when the time comes for probate. In fact, it's estimated that fully 99 percent of wills in the U.S. pass through probate with no problems.
After a loved one has died, it can be difficult to know what to do next. Many people in New Jersey may have heard of the notion of "estate administration," but may have little to no idea what it entails or how to start. There are some first steps to take that will help determine how the administration of the estate will proceed.
New Jersey residents would most likely agree that the last thing most people want to think about when they have lost a loved one is paperwork. Unfortunately, at some point, it will be necessary for the family to deal with their loved one's estate. Many people are left wondering how to begin the estate administration.
Many people in New Jersey have a will and other estate planning documents drafted and executed that they believe will provide for the disposition of their property after death. These documents may have provided for the big things, but it's typically the small things that put heirs at odds. Every family has those little treasures that are seemingly unimportant until someone passes away.
It doesn't matter what a person does for a living -- lawyer, farmer, architect or mechanic -- everyone can benefit from having an estate plan. The problem is that there are certain estate planning mistakes that people in New Jersey commonly make that could jeopardize what they are trying to accomplish. There are many things that people do in order to avoid an asset having to go through probate.
Many adult children in New Jersey may realize that if their parents die owning a home, it is possible there will be a mortgage on that home. How the home and mortgage are dealt with after death should be a topic of discussion when the parents are doing their estate planning. There are several ways that the home can be passed on after death.
One aspect of estate planning that some New Jersey residents struggle with is the decision of who to name as personal representatives to oversee their wills. This can be especially difficult for those who do not have family members close to them and wonder about the logistics behind estate administration under such circumstances. New Jersey is one of those states that specifies that residents are preferred as the executors of wills over nonresidents, but does not entirely prohibit nonresidents serving in that capacity.