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The Basic Three Legal Documents. Resolution of AttorneyMedical Directive. Purposes behind Having a Valid Will. On the off chance that there is no Will, State Intestacy Statutes will choose who acquires your assetsAvoids cost and postpone of posting a surety bondNames Executor to settle your EstateNames Guardians for minor childrenControl ages beneficiaries will acquire resources.
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Bequest Planning The Legal and Tax Aspects of "Making a decisive last stand" As Presented By: David K. Whitlock, Esq. Law Office of David K. Whitlock E. 80 Route 4 – Suite 170 Paramus, NJ (201) 655-7160

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The Basic Three Legal Documents Will Power of Attorney Medical Directive

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Reasons for Having a Valid Will If there is no Will, State Intestacy Statutes will choose who acquires your advantages Avoids cost and deferral of posting a surety security Names Executor to settle your Estate Names Guardians for minor kids Control ages beneficiaries will acquire resources

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Power of Attorney Effective amid life Name individual to deal with monetary matters for your sake "Strong "or "Springing Power" of Attorney Important to pick appropriate "blessing condition"

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Medical Directives Also known as Living Wills, Advance Health Care Proxies and Directives Names individual to settle on medicinal choices on the off chance that you can\'t settle on your own choices Makes wishes known ahead of time concerning a terminal ailment or perpetual trance like state Include HIPAA Privacy provisions

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What is a Revocable Trust? Revocable Trust (or Living Trust) is a Trust you control yourself while you are alive and goes about as a Will on your demise Typically utilizes your government managed savings number, so no different salary assessment form required while you are alive Trust can be financed while you are alive

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Do I require a Revocable Trust? Not completely essential in New Jersey – probate is moderately simple Some advantage of utilizing Revocable Trust Privacy: not an open record NJ Tax Waivers not required on death Good to hold out-of-state land Estate is less demanding to oversee Useful is there is a handicap

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Federal Estate Tax Law No expense on resources left to subject companion New Legislation expected soon 45% duty on sum over exception Exemption relies on upon year of death: 2008 = $2 million 2009 = $3.5 million 2010 = Repealed – no elected bequest charge 2011 = $1 million

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New Jersey Estate Tax No expense on resources left to resident life partner Exemption = $675,000 Tax rate is 37% amongst $675,000 and $727,000 ("bubble") Progressive rate between 5% - 16% Tax on $1 million = $33,200 Tax on $1.5 million = $66,400 Tax on $2 million = $99,600 Death Bed Gifts Avoids New Jersey Estate Tax (however watch loss of venture up in cost premise)

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New Jersey Inheritance Tax Tax is Based on Relationship of Decedent to Beneficiary Spouses, Children, Grandchildren and guardians are Exempt ("Class A") Brothers and Sisters are absolved on first $25,000; 11% on next $1,075,000; 13% on the following $300,000; 14% on next $300,000 and 16% on any sum over $1,700,000 ("Class C") All others are burdened at 15% on first $700,000 and 16% on overabundance ("Class D") Tax is gathered on the more noteworthy of the New Jersey Estate Tax or New Jersey Inheritance Tax (not both)

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Federal Gift Tax Unlimited endowments to national mates $13,000 rejection every year to every beneficiary ("yearly prohibition") If yearly rejection is surpassed, there is a $1 million lifetime exclusion and blessing expense forms should be documented 45% assessment rate if $1 million exception surpassed Gift impose exception utilized decreases domain impose exclusion staying at death Spouses can "split" blessings

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State Gift Tax No New Jersey blessing charge

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Attention to Non-Probate Assets Many Assets Don\'t go under a Will or Revocable Trust: Life Insurance Annuities Joint Accounts (accommodation or legacy?) IRA, 401k and other retirement accounts

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Credit Shelter Trusts On first mate\'s passing, Trust is made to haven resources from expense in second life partner\'s home Geared to State sum ($675,000) or elected sum ($3.5 million – causes NJ assess on first demise) – Credit protect trust made preceding 2002 undoubtedly have elected sum and will bring about NJ home assessment on death of first mate Sometimes organized as a Disclaimer Trust – just if mate documents a disclaimer inside 9 months of death is Trust subsidized

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Life Insurance Trusts Avoids home assessment on extra security continues in both life partners\' homes

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Medicaid Planning Long Term Care Insurance critical – recuperate premiums in first year of ailment 5 year run for endowments Prepaid funerals permitted Gift of house to overseer tyke living in house for a long time Gifts to debilitated youngster are excluded Spouse permitted to keep house and amongst $20,000 and $100,000 of benefits Gift proviso in Power of Attorney archive

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