Tax Exposure: The Price of Success
Though financial success has its rewards there is a price that must be paid in the form of the death taxes
that exist on the federal level and on the state level.
If you do not take the appropriate steps to preserve your wealth the tax man could eventually consume
a significant portion of what you worked so hard to accumulate. And unfortunately, this asset erosion
can take place over multiple generations.
There is a federal estate tax in place that is carrying a 35% maximum rate right now. The exclusion is
$5.12 million for the rest of 2012.
At the end of this year the tax relief act that was passed in December of 2010 is going to expire. When
this takes place the exclusion will go down to $1 million and the top rate of the tax will rise to 55%.
Here in the state of New Jersey we are in rarefied company with regard to death taxes. We are one of
just two states with an inheritance tax and an estate tax on the state level. (Maryland is the other one.)
The inheritance tax is imposed on each individual who is receiving an inheritance. The estate tax is
levied on the entirety of the estate in question. The New Jersey state estate tax exemption is just
$675,000, so a great many citizens of the Garden State are in fact exposed to this tax.
The good news is that there are legal steps that can be taken to mitigate your exposure to these taxes. If
you would like to learn about your various options simply take a moment to arrange for a consultation
with a good central New Jersey estate planning attorney.
Experienced estate planning attorneys Warren NJ of the Augulis Law Firm offers estate planning and
business planning resources to residents of Warren, NJ. To learn more about these free resources, please
visit www.augulislawfirm.com/ today.