When you are in the field of estate planning the implications of federal and New Jersey state death taxes are always going to be in the forefront of your thinking. Yet, many average citizens may not realize that the assets that they have left over after they pass away may be subject to taxation.
Why would they? You paid taxes all of your life on every penny that you earned and on most purchases that you made. If you are fortunate enough to have anything left after paying all these taxes you can put it in the bank. Your after-tax savings are not subject to any further taxation.
So why would there be a tax imposed as these resources are being passed on to your family members after you die?
This is the question that many people ask when they find out about the estate tax, and an answer that makes sense is like the Jersey Devil; there are rumors of its existence but it has not yet been found.
In spite of the fact that the tax may not be logically supportable as fair, the estate tax is a reality all the same.
If you are exposed to the tax you can take steps to reduce your liability with the appropriate legal assistance. Should you be interested in hearing about possible solutions given your unique situation, don’t hesitate to take action to arrange for a consultation with a licensed, experienced, and savvy Central New Jersey estate planning lawyer.