If circumstances have not changed, is it necessary to update a Will?
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If circumstances have not changed, is it necessary to update a Will?
Asked on January 7, 2014 under Estate Planning, New Jersey
Answers:
Kenneth Vercammen Esq. / Kenneth Vercammen
Answered 10 years ago | Contributor
. Federal Estate Tax exemption is now permanently increased so no tax for Estates under $5,340,000, and will be adjusted annually for inflation. However, New Jersey taxes estates over $675,000.
Federal Exemption Amount for Non-Citizen Spouses is $145K up from $143K.
New Jersey has an Estate Tax on amounts over $675,000. So, even if no Federal Estate Tax due, the estate must still file a Federal Estate Tax Return, plus NJ Estate Tax Return.
So, for an unmarried or widowed person with assets of $1,000,000, there is No Federal Estate Taxes, but
the Estimated State Estate Tax: $33,200.00 |
| |
| For an unmarried or widowed person with assets of $1,500,000, estimated NJ Estate Tax is over $60,000. The Federal Tax rate on estates over $5,340,000 has been increased from 35% to 40%. How to avoid NJ Estate Tax- hire an attorney to set up a personal residence trust or irrevocable trust and have the assets taken out of your name and put into a trust or given to children and grandchildren in the trust. Minimum fees for trust are $3,000. This is probably not something a non-attorney can do on their own. It is illegal for a non-attorney to provide legal advice or prepare most legal documents.
2.Gifts permitted without Federal Estate & Gift tax was increased to $14,000 per person.
However, the amount permitted for Medicaid transfers is zero. Kenneth Vercammen Edison, NJ | |
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
If circumstances have not changed, the Will does not need to be updated.
As for future changes in circumstances, the Will may be amended by a codocil instead of re-drafting a new Will. A codocil is an amendment to a Will in which the testator (person whose Will this is) acknowledges their signature in the presence of witnesses.
If there are major changes in circumstances, a new Will would then be advisable.
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