Are We in Danger of Losing the Step Up in Basis?
A few weeks back, President Obama proposed, in his State of the Union address, that the “step up in basis” provision of the capital gains tax be eliminated. While Obama claims that he wants to eliminate a loophole for the rich, such a change could
How to Lower New Jersey’s Estate Tax
New Jersey has one of the worst, if not the absolute worst, estate taxes in the country. It is one of two states that has an estate tax and an inheritance tax. Over the past 15 years the federal estate tax exemption, that amount
The Bank Told Me I Need a Tax Waiver (Part 2)
Last week we were discussing George’s problem in helping his mother gain access to one of his dad’s accounts after his dad recently passed away. The bank won’t permit her to tap into the account without a tax waiver. The tax waiver protects New Jersey’s interest by insuring that it’s estate
When Might a Gift of $13,000 Per Year Still Be Subject to Tax?
Mary‘s dad lived a long life, passing away at 80. He left a 1.5 million dollar estate. In an effort to minimize estate taxes he had started a gifting program amongst his 3 children and 9 grandchildren, which had reduced his estate by almost $500,000 in the last 3 years
Finally a New Estate Tax Law – But What Does it Mean?
Unlike last year, when Congress tried to pass a law preventing the no estate tax in 2010 scenario, this year it did manage to pass a law extending the Bush era tax cuts that went into effect in 2002 but were set to expire on December 31, 2010. So what
The Problem of the Unmarried Siblings – Part 2
Last week we were discussing Denise’s problem. Her Mom was one of 10 children. 2 of her uncles and 1 aunt had never married but lived together for many years. As their health declined Denise became their support system. We discussed how Medicaid views their assets and the trap that
Will They or Won’t They? An Update on Federal Estate Tax Law
My first post of the year (1/4/2010) concerned the elimination of federal estate tax for this year and this year alone. While that sounds like a good thing for the average American it’s not really because the law also eliminated the capital gains step up in basis. So many estates
We Don’t Owe Estate Tax So What the Heck is Inheritance Tax?
I got a call from Joe last week. His brother Jim died 5 months ago. Jim had never married and had no children, leaving his estate of assets totaling $150,000 to Joe. Everything seemed so simple. There was no need to pay taxes, or so he thought, because there is
What’s So Good About Eliminating Federal Estate Tax?
Many of us didn’t think we’d see 2010 but I guess we were wrong. I’m not talking about any apocalyptic predictions of the end of the world but, rather, about the elimination of federal estate tax under the 2001 tax bill that President Bush signed into law. Elimination
I Don’t Have an Estate Tax Problem — Do I?
A few months back I wrote about how estates up to $3,500,000 are not subject to federal estate tax and that the tax will be eliminated in 2010. For this reason, when people call our office to discuss estate planning they will often begin by saying that they are not