About Estate Planning

Commonly called an Estate Plan, our firm prefers to call future planning for our loved ones and ourselves creating a “LIFE PLAN”. Of course, we cannot change the past but have many opportunities to clearly map our financial future and that of those we cherish.

The goals of this plan might include:

CREATIVELY FOCUSING ON OUR CLIENTS OWN NEEDS -- GOAL: AN EXCITING AND REWARDING FUTURE -- Long term care insurance, living wills, advance health care, power of attorneys, tax avoidance and charitable gifting are some of the issues our clients bring to us. We seek to craft a vibrant and living life plan that you will be excited to execute in the future, and that ensures your life will be lived in the way you choose.

WILLS are generally only one part of that plan and can be very simple or complex depending upon your financial assets and the needs of your children and heirs.

TRUSTS are targeted instruments used to protect our heirs from: ~ Taxes – which can be 45 - 55 % Federal Estate taxes on all sums over the unified credit(see below example); Spendthrift problems in the case of young and unsophisticated heirs, handicapped or special needs of our heirs, to name just a few goals. Overall goal: Family Wealth Preservation.

We are often called in to lead a team of advisors including financial planner, accountant and insurance agent in creating a creative, unique and exciting future for our clients. Please call us for an appointment at your convenience.

Example Of Estate Taxes

MARY DOE owns a home worth $1.4 million (basis $400,000.) She has additional life insurance in the amount of $800,000. and securities, jewelry and other personal assets of $700,000. Her total assets are $2.5 million.

She has one son who will inherit all of her assets AFTER federal and state Estate and Inheritance taxes. Mary dies in 2005. She will receive federal exemption (called a unified credit) on $1.5 million dollars in 2005. (This will increase annually until 2011 when it expires or sunsets.)

Thus, within 9 months of Mary’s death her son Brian must pay the following to the US Treasury:

  - $2.5 million assets (less expenses of probate) This example assumes probate is paid.

  - $1.5 million Unified federal credit

  - $1.0 million taxable estate times 45 – 55 % Estate tax rate. Assuming Mary is in the 55% tax bracket, Brian will need to pay $550,000. to the US within the 9 month period. Additionally, New Jersey taxes will be due. DUE TO US -- $550,000.00.

HOW WILL YOUR FAMILY PAY THESE TAXES is one subject of LIFE/ESTATE PLANNING.

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