What Will Your Legacy Be?
As estate planning attorneys, we often hear, “I don’t need a Will, I don’t have any children to worry about” or “I don’t need a Will, everything will automatically pass to my spouse” from friends and acquaintances. And how wrong they are! In both circumstances, there are many things that everyone should consider and plan for, especially given that death is the one guarantee in life. Many individuals who do not have children and the corresponding feeling of moral obligation to pass all or most of their wealth to them, have the unique freedom and opportunity to think about what kind of broader legacy they may want to leave behind.
A will specifies your wishes
By executing a Will, you can leave specific instructions about where the assets you have worked hard to accumulate over your lifetime will go and appoint the person who will be in charge of making sure your wishes are followed. Maybe you want to leave your estate to charities that are important to you and provide for the work of those institutions in a way you could not while alive? Or maybe you want to provide for friends or extended family members that you love and may be able to use your gift to take advantage of opportunities they might not have otherwise, such as education?
Create Your Legacy With A Foundation
Our firm has been privileged to help many individuals in these situations think about their legacy in these ways. We also have had the honor of helping to implement plans that meet their objectives and, consequently, have profoundly changed the lives of their beneficiaries. As an example, we assisted in the creation of the Watts Foundation which was established by a couple who had no children, but wished to improve the quality of life for many in the community of Mountainside, NJ. The Watts’ established the Foundation to benefit the hometown where they had resided for most of their married life together and the legacy they created will benefit many future generations for years to come. It is such a privilege to be able to assist individuals formulate a plan that creates a legacy larger than anything they could contemplate on their own.
More Ideas for Nonparents
Further discussion regarding opportunities for leaving such a legacy can be found in the following New York Times link: If you Don’t Have Children, What Do You Leave Behind?
If you or anyone you know would like to explore such opportunities, contact us via our contact form on this website.
Parker Caregiver Conference
Phelan, Frantz & Peek will be presenting at the Parker Caregiver Conference on April 21, 2018. Barbara Doyle Frantz, Esq. and Gretchan Ohlig, Esq. will be discussing the importance of basic estate planning and other measures that empower elders and their families to take control at this vulnerable time of life. Parker Homes (www.parkerlife.org) is hosting this free half-day conference for those engaged in caring for aging family members, friends and other loved ones. Caregivers will find the information, support resources and skills to cope with being a caregiver — and meet others who are experiencing the same challenges. Click the link below for more information.
Spring Cleaning? Don’t Despair, Donate!
Spring is in the air! Those of us at PFP know that Spring is on the way when the weather starts to warm, buds sprout on the trees and our real estate transaction calendar grows. That also means many of our clients who are selling their homes begin to look for places to donate excess clothing or furniture. Whether you’re selling your home or engaged in good old-fashioned Spring cleaning and you’re not sure what to do with your unwanted but perfectly usable goods, we have some suggestions.
Here’s a list of charities in the Union County NJ area that accept donated goods:
Furniture Assist
Provides “everything that makes a house a home” to persons who were recently homeless.
Items accepted: furniture, linens and bedding, curtains, lamps, mirrors, pictures, rugs with bound edges, toys, dolls, games, small appliances, kitchen items, clothes and shoes.
Drop off only – Sundays at 24 Commerce St, Springfield Twp, NJ 07081. If you are not located in Union County, please check this website for information on similar organizations near you.
Pluckemin Medical Mission of the Pluckemin Presbyterian Church
www.ppch.org/get-involved/medical-equipment
Provides medical equipment to those in need.
Items accepted: hospital beds, wheelchairs, walkers, lifts, commodes, shower seats, bed rails, etc.
Drop-offs only at the church or as directed. Church is located at 279 US 202-206, Pluckemin, NJ 07978. Please call (908) 396-6057 for specific guidance on donations and drop-off hours.
GoodWill
www.goodwill.org/donate-and-shop/donate-stuff/
Items accepted: vehicles (special arrangement required), flat screen TVs, clothing, shoes and boots, accessories, books, records, CDs, DVDs, games, toys (no stuffed animals), sports equipment, kitchen and housewares, small appliances, collectibles and décor, linens and bedding, hand tools and small power tools, consumer electronics (stereos, radios, VCRs, DVD players), some furniture, some computers and office equipment.
Drop off at 126 Route 22 West in Springfield NJ 07081 and other locations in Paramus NJ, Fairfield NJ, Pompton Plains NJ and Nanuet NY. Call (908) 912-0156 to inquire about pick-ups.
Navigating The Shifting Estate Tax Landscape
The attorneys at Phelan, Frantz & Peek want to help you navigate the rolling hills that have become the landscape of inheritance and estate taxes in New Jersey. Until January of 2018, New Jersey was one of two states in the United States (the other is Maryland) that had two death taxes. The first is an inheritance tax that is imposed based on WHO inherits from an estate. The second is an estate tax that is imposed based on the VALUE of the assets passing from one generation to another. As of January 2018, the estate tax is no longer.
NJ Estate Tax Repealed
In October 2016, then-Governor Chris Christie signed into law a bill that repealed the New Jersey estate tax as part of a transportation funding bill that included .23 cent/per gallon tax hike on gasoline. At that time, the state’s estate tax exemption was $675,000 – meaning that an individual could leave up to $675,000 without triggering the estate tax. The exemption amount was increased to $2 million in 2017 and is now eliminated entirely with the ushering in of the New Year.
NJ Inheritance Tax Remains
While the estate tax repeal may have some dancing in the aisles – especially those whose net worth exceeds $2 million, the catch for New Jersey families is that the inheritance tax remains. New Jersey’s inheritance tax is levied on assets passing to anyone other than a descendant’s blood line (children and grandchildren in one direction and parents in the other) or a charity. It is important to note that domestic partners, legally adopted children, stepchildren (but not step-grandchildren), and mutually acknowledged children are included in this class.
Those not exempt from the inheritance tax are siblings, in-laws, civil union partners, nieces, nephews, and friends, to name a few. The tax imposed on gifts left in a Will to individuals in these categories varies depending on their classification and the amount of the gift.
Federal Estate Tax Exemption Increased
And last, but certainly not least, is the federal estate tax. The federal estate tax individual exemption was increased from $5.49 million in 2017 to $11.2 million after President Trump signed the Tax Cut and Jobs Act of 2017. The increase will only last until 2026, when the exemption amount is scheduled to return to 2017 levels. Between now and then, few will have to contemplate this issue.
What does all this mean for you?
As evidenced by the up and down of the past twelve months alone, the landscape of estate taxes is subject to frequent fluctuation. Given recent changes, now is a good time to review your estate plan with a professional to determine if your wishes are still being addressed under the new laws, and insure there is some flexibility built in to deal with possible frequent changes to these laws at both the federal and state levels.
Make Your Will Your New Year’s Resolution
Most of us see the New Year as an opportunity to turn the page on those things left undone from the year before. If you are one of the more than 65% of Americans who do not have a Will, now is the time to get it done and check it off your list.
A Last Will and Testament is a legal document that outlines your wishes regarding the distribution of your assets and property upon your death. If you have minor children, a Will also can dictate who you want to take care of your children if you should pass away unexpectedly and how you want your children’s finances to be managed while they are young.
Whether you have a little or a lot, crafting a Will insures that your personal wishes are implemented upon your death and that the people you want to manage your affairs after you are gone are in charge. Without a Will, a court will be responsible for making all these decisions on your behalf and your assets will be distributed pursuant to a statute enacted by the New Jersey legislature.
If you do have a Will, the New Year also is a great time to revisit your estate plan to determine if any changes need to be made. It is a good idea to revisit your Will approximately once every five years and make any necessary updates. Questions to consider include:
- Have any life circumstances changed? For instance, have you gotten married or divorced, had another child, moved to another state, or inherited money from a family member?
- Have estate tax laws changed?
- Is the distribution plan you implemented still what you want to happen?
- Are your executor, trustee and guardianship designations still valid?
Contact the attorneys at Phelan, Frantz & Peek, LLC to discuss the creation or revision of an estate plan that fits your needs. We pride ourselves on providing the level of personalized care, concern, and attention to detail that befits the task at hand by spending time with our clients and getting to know your unique needs and wishes.
Women in Leadership
We are proud to announce that Gretchan Ohlig will be participating in a panel on “Lessons Learned” as part of the Women In Leadership Initiative sponsored by the New Jersey Association of School Administrators at this week’s New Jersey School Boards Association Workshop in Atlantic City. All of PFP’s lawyers are active volunteers in our community who believe strongly in giving back.
