That Pesky Tax Waiver – Part 3
This week’s post is the last of 3 on New Jersey’s tax waiver. Last week I showed you how a small bequest in a will to a non-Class A beneficiary will trigger the need to file an inheritance tax return. I also said, however, that in some instances a
That Pesky Tax Waiver – Part 2
In my post last week, I referred to New Jersey’s tax waiver. It is an often misunderstood process designed to insure that the State receives the appropriate amount of taxes when someone dies. As I explained, New Jersey’s estate tax was phased out as of 2018 but we still
That Pesky Tax Waiver – Part 1
As I have written in previous posts, New Jersey did away with its estate tax in 2018. This was part of a compromise between the state legislature and then Governor Christie who agreed to an increase in New Jersey’s gasoline tax. I have also pointed out that we still
An RMD and Tax Waiver Problem (Part 2)
In my blog post last week I laid out Mary’s problem trying to draw out the required minimum distribution for 2018 from her deceased aunt’s IRA. June died in November and had not yet taken the minimum necessary (RMD) to avoid a 50% penalty. The bank holding the IRA,
An RMD and Tax Waiver Problem -Part 1
Although New Jersey no longer has an estate tax we still have an inheritance tax and with it a tax waiver. Last week we received a call from Mary who had been appointed executrix of her Aunt June’s estate. June had not taken her required minimum distribution
Increased Gas Tax – How Does It Impact NJ Estate Tax? Part 2
Last week , I wrote about the announced compromise between Governor Christie and legislative leaders that will replenish the out of money transportation fund and get much needed road projects started again. The compromise involves a 23 cent gas tax increase but tax cuts in other areas, including the
Increased Gas Tax – How Does it Impact NJ Estate Tax? #NewJerseyEstateTax
On Friday, Governor Christie and Democratic leaders in the New Jersey Legislature announced they had reached a compromise on funding New Jersey’s bankrupt transportation fund, which pays for road and bridge improvement projects and other infrastructure upgrades such as the rail system which has been very much in the
Estate Planning – Changing as We Age (Part 4)
Last week I was telling you why the New Jersey probate process can be easy but the tax waiver system designed to protect the State’s ability to collect estate and inheritance tax can tie up your money for years. That’s because the law requires financial institutions to freeze ½
Estate Planning – Changing as We Age (Part 2)
Last week we were talking about how estate planning and what’s in your legal documents need to change as you age. Our hypothetical couple, Jack and Diane, have reached their 60’s. The focus of their plan needs to shift to what we call senior estate planning. One of the
Are We in Danger of Losing the Step Up in Basis (Part 2)
Last week we were discussing potential changes to the tax laws proposed by President Obama that would eliminate the step up in basis. Obama claims the target is wealthy Americans but the change could have a much bigger impact on average middle class citizens. That’s because with