NJ Estate Tax Amounts

NJ Estate Tax for Estates over $675,000
Recommendation for Tax Planning now if husband and wife’s total assets including life insurance exceeds $675,000
   More info at http://www.njlaws.com/NJ-Estate-Tax.html
 A New Jersey estate tax return must be filed if the decedent's gross estate plus adjusted taxable gifts as determined in accordance with the provisions of the Internal Revenue Code exceeds $675,000 and the assets do not go to the spouse. It must be filed within nine months of the decedent's death.

 Even if there is no NJ Inheritance Tax there can be a NJ Estate Tax if the estate exceeds $675,000 and the beneficiaries are children or grand children.

Who Must File
  A New Jersey estate tax return must be filed if the decedent’s Gross Estate exceeds $675,000. There is a substantial tax that must be paid after the 2nd spouse dies on amounts over $675,000.  You can hire an attorney to set up Trusts to try to reduce taxes due. We charge a minimum fee of $600 for each trust within a Will. A separate stand alone Trust has a minumum fee for $2,500.
Various NJ Estate Tax Consequences
Taxable Amount of $1,000,000
Tax=$33,200

Taxable Amount of $2,000,000
Tax =$99,200
Taxable Amount of $3,000,000 Tax=$182,000
 Even if your net worth is well below the Federal threshold where the federal estate tax becomes an issue, the New Jersey Estate Tax may still be a problem. The New Jersey Estate Tax affects any person or married couple with net worth over $675,000. There is no exemption for assets you leave to your children; those assets are fully taxed. There is also no exemption for the value of your home and life insurance, so it is easy to hit the $675,000 threshold very quickly.
Estate of  $800,000
Your Federal Estate Tax:  0.00
Your State Taxable Estate Value:  $740,000.00
Your Estimated State Estate Tax:  $22,799.60

 If Estate Value:  $900,000.00  Your State Taxable Estate Value:  $840,000.00 Your Estimated State Estate Tax:  $27,600.00  

If Estate Value:  $1,000,000.00  Your State Taxable Estate Value:  $940,000.00 Your Estimated State Estate Tax:  $33,200.00

 If  Estate Value:  $1,100,000.00  Your State Taxable Estate Value:  $1,040,000.00 Your Estimated State Estate Tax:  $38,800.00

 If Estate Value:  $1,200,000.00 Your State Taxable Estate Value:  $1,140,000.00 Your Estimated State Estate Tax:  $45,200.00

If Estate Value:  $1,300,000.00  Your State Taxable Estate Value:  $1,240,000.00 Your Estimated State Estate Tax:  $51,600.00

NJ Inheritance Tax Rates

NJ Inheritance Tax RatesThe Transfer Inheritance Tax rates depend on the amount received and the relationship between the decedent and the beneficiary. No tax is imposed on class A beneficiaries (father, mother, grandparents, descendants, spouses, civil union partners, or domestic partners).
Class C beneficiaries (brother or sister of decedent; husband, wife, or widow(er) of a child of decedent; civil union partner or surviving civil union partner of a child of decedent) are taxed at 11%–16%, with the first $25,000 exempt.
Class D beneficiaries (not otherwise classified) are taxed at 15%–16%, with no tax on transfers having an aggregate value of less than $500.
       More info at More info at http://www.njlaws.com/inheritance_tax.html
     Charitable institutions are exempt from tax

Notice of Probate of Will NJ Court Rule 4:80-6

Notice of Probate of Will NJ Court Rule 4:80-6
Within 60 days after the date of the probate of a will, the Attorney for the Estate or the personal representative shall cause to be mailed to all beneficiaries under the will and to all persons designated by R. 4:80-1(a)(3), at their last known addresses, a notice in writing that the will has been probated, the place and date of probate, the name and address of the personal representative and a statement that a copy of the will shall be furnished upon request (many executors and administrators hire an attorney to handle the required notices).
Proof of mailing shall be filed with the Surrogate within 10 days thereof. If the names or addresses of any of those persons are not known, or cannot by reasonable inquiry be determined, then a notice of probate of the will shall be published in a newspaper of general circulation in the county naming or identifying those persons as having a possible interest in the probate estate.
If by the terms of the Will property is devoted to a present or future charitable use or purpose, like notice and a copy of the will shall be mailed to the Attorney General.
It is important to serve and file the notice of probate because it starts the clock ticking on limiting challenges to the Will by unhappy family members. If they wait too long, they will be time barred. More info at http://www.njlaws.com/notice_of_probate.htm

Post Will instructions after signing the will

Post Will Instructions to Clients
I send all my clients a Post Will letter to give them several important reminders regarding the clients Will and things related to it. I am doing this in order for them to have a permanent record and also that they may refer to this letter from time to time in the future in order to refresh the clients memory. Please be sure, therefore, to keep this letter with the clients copy of their Will. More info at http://www.njlaws.com/postwillinstructions.html

We have given the client the Original signed Will to take home. The client should advise the Executors where the original Will is going to be stored. Additionally, they should provide the Executor with our business card and instruct the Executor to contact us prior to going to the Surrogates Office or probating a Will. If they have a Living Will, please be sure to give a copy to their doctor.

If they ever want to discuss the Will with me, I will be happy to do this with the client at any time after scheduling an appointment.

I recommend that the client review the Will periodically in order to keep it up-to date regarding changes in their family, their property, their wishes, and the law. I suggest that approximately five (5) years from the present time, the client contact my office and schedule an appointment again so that we can review their Will together.

This periodic review program should not prevent the client from considering the making of a change in their Will at any earlier date. Changes should be made whenever the client believes such changes are necessary. A persons family, property and wishes may change over the years and for these and other reasons the client should re-examine their Will from time to time in order to make sure that it will carry out their present wishes.

I caution the client against making any marks upon their original Will because this can lead to a Will contest. If the client wants to make a change in their Will, they should contact my office and we will either make a Codicil (a short addition) to their Will or a new Will depending upon their needs and wishes.

Power of Attorney in case of Disability

Power of Attorney- What to explain and discuss with the client

By Kenneth Vercammen, Esq of Edison, NJ
    The ABA GP Solo Division  published Ken Vercammen’s 3rd book “Wills and Estate Administration”. This is a chapter of the book. The book is available at
http://shop.americanbar.org/eBus/Store/ProductDetails.aspx?productId=224827061
 A Power of Attorney is a written document in which a competent adult individual (the "principal") appoints another competent adult individual (the "attorney-in-fact") to act on the principal's behalf. In general, an attorney-in-fact may perform any legal function or task, which the principal has a legal right to do for him/herself. You may wish to sign a Power of Attorney giving your spouse, children or partner the power to handle your affairs if you become ill or disabled.  More info at http://www.njlaws.com/power_of_attorney.htm
       An important part of lifetime planning is the Power of Attorney. Valid in all states, these documents give one or more persons the power to act on your behalf. The power may be limited to a particular activity (e.g., closing the sale of your home) or general in its application, empowering one or more persons to act on your behalf in a variety of situations. It may take effective immediately or only upon the occurrence of a future event (e.g., a determination that you are unable to act for yourself). The latter are "springing" Powers of Attorney. It may give temporary or continuous, permanent authority to act on your behalf. A power of attorney may be revoked, but most states require written notice of revocation to the person named to act for you. See
http://www.americanbar.org/groups/real_property_trust_estate/resources/estate_planning/power_of_attorney.html
Reasons to sign a Power of Attorney
A Power of Attorney allows your spouse or another person to administer your assets during your lifetime, either upon disability or now.  The lack of a properly prepared and executed Power of Attorney can cause extreme difficulties when an individual is stricken with severe illness or injury rendering him/her unable to make decisions or manage financial and medical affairs.
 More info at http://www.njlaws.com/power_of_attorney.html
In the absence of a Power of Attorney or other legal arrangement to distribute property if you become disabled, your family or partner cannot pay your bills or handle your assets. The result can be lengthy delays.
The term "durable" in reference to a power of attorney means that the power remains in force for the lifetime of the principal, even if he/she becomes mentally incapacitated. A principal may cancel a power of attorney at any time for any reason. Powers granted on a power of attorney document can be very broad or very narrow in accordance with the needs of the principal.

New Jersey has a detailed, expensive legal procedures, called Guardianships or conservatorships, to provide for appointment of a Guardian. These normally require lengthy, formal proceedings and are expensive in court. This means involvement of lawyers to prepare and file the necessary papers and doctors to provide medical testimony regarding the mental incapacity of the subject of the action.
The procedures also require the involvement of a temporary guardian to investigate, even intercede, in surrogate proceedings. This can be slow, costly, and very frustrating.   Advance preparation of the Power of Attorney could avoid the inconvenience and expense of guardianship proceedings. This needs to be done while the principal is competent, alert and aware of the consequences of his / her decision. Once a serious problem occurs, it is usually too late.  
The Power of Attorney can be effective immediately upon signing or only upon disability.
Most people who give a Power of Attorney to someone else do it with the thought that if they should become ill or incapacitated or if they should travel, the Power of Attorney will permit the holder of it to pay their bills and to handle all of their affairs for them as limited in the Power of Attorney.

Pre sentence report in criminal case PSI prior to sentencing and recommendations

Presentence Report PSI

New Jersey Criminal Sentencing
Although the offense someone is charged with plays the biggest role in the judge’s determination of your sentence, there are numerous other factors to be considered. The majority of the information used in determining what type of sentence is appropriate for you is found in a Presentence Report. More info at http://www.njlaws.com/3-21-2.htm
 We provide our clients with a copy of the Presentence Report. After you read it carefully advise us in writing within 5 days of anything that is not accurate or needs correcting. The Judge will ask you on sentencing date are there any corrections or modifications.
 We also recommend our clients prepare a list of  (15) reasons why the judge should not give you the maximum penalties, fines or impose a jail sentence. At sentencing the judge will ask you "what do you want to tell the court”.
A presentence report is an investigative report provided to the judge that includes a wide array of information. The presentence investigation is typically done by a probation officer and may include the following:
• Criminal History
• Employment
• Family support
• Alcohol/Drug history
• Mental health evaluation
• Medical history
• Personal habits
• Finance history
Ref: NJ §2C:44-6
Arguably the most important piece of information on the presentence report is the court investigating officer’s recommendation. The officer will make their recommendation on the belief on the likelihood of your success on probation or whether they believe you would be best served by incarceration.
The judge is not required to follow the recommendation of the presentence report, though they will likely give the investigating officer’s professional opinion some consideration.

Specific bequest of property and money in a Will