High Net Worth Estate Planning: Issues to Consider
Estate planning is important for all adults in New Jersey regardless of socioeconomic status, income, and assets. At the same time, for high net worth individuals and families, estate planning is particularly critical. There are a wide range of complexities that often accompany high net worth estate planning processes, and it is important to work with an experienced Summit estate planning lawyer with experience in this area. The following are some of the key considerations for you to think about in high net worth estate planning. Once you are ready to begin working on a will, establishing a trust, and creating powers of attorney, our firm is here to assist you.
Minimizing Estate Taxes
New Jersey’s state law on estate taxes changed relatively recently, which means that the New Jersey Estate Tax is not imposed on any individual who has died, or dies, on or after January 1, 2018. However, there is still a federal estate tax that you will need to consider, especially if you have a high net worth estate. The threshold amount for 2025 is $13,990,000, but an estate planning attorney can discuss potential options with you for minimizing the federal estate tax.
Establishing Trusts to Ensure Substantial Assets Are Transferred Smoothly
For many high net worth individuals, ensuring that high-value assets are transferred smoothly is of utmost importance. Often, this can be done through the establishment of a trust. Our estate planning lawyers can discuss various trust options that may be available to you under New Jersey law.
Creating Powers of Attorney to Make Sure Finances Are Managed Appropriately
All individuals should have powers of attorney on file in the event of an unexpected incapacity, but powers of attorney for financial purposes are especially important for individuals with high net worth estates. An agent designated through a power of attorney can ensure that your finances, and your varied and complex assets, are handled properly in the event you become incapacitated and unable to continue making important financial decisions yourself.
Appraising Valuable Assets
In order to determine how you want to divide your estate, and for purposes of determining taxation and related financial matters, you may need to have new appraisals of valuable assets that pose complications for valuation purposes. While accounts may have a particular dollar figure at any given point in time, collectibles such as rare books or antique furniture may require an appraisal from a specialist. The market value of such collectibles can also shift over time, both up and down, so it is important to have a recent appraisal conducted. Your estate planning lawyer can assist you with this process and can ensure that your assets are properly appraised.
Contact a Summit Estate Planning Attorney
High net worth estate planning should be done with assistance and guidance from a Summit estate planning lawyer with experience handling estate planning matters for high net worth individuals. One of the experienced New Jersey estate planning attorneys at Dempsey, Dempsey & Sheehan can speak with you today about the complexities of high net worth estate planning, and how we can help you to protect your legacy for the future. Contact us today for more information about our services.
Sources:
law.justia.com/codes/new-jersey/title-3b/section-3b-3-2/
casetext.com/statute/new-jersey-statutes/title-3b-administration-of-estates-decedents-and-others/chapter-31-uniform-trust-code
nj.gov/treasury/taxation/inheritance-estate/inheritance.shtml
irs.gov/businesses/small-businesses-self-employed/estate-tax
