Most of us are not exactly eager to get started on our estate plans, however, it is always better to create one sooner, rather than later. What’s more, if you are a high net worth individual, you have more assets than the average person to be concerned with. Please continue reading to learn more about creating a high net worth estate plan and how our New Jersey estate planning attorneys can help you through the process.
How Do I Minimize My Estate Taxes?
Wealth transfer taxes, meaning estate taxes, gift taxes, and generation-skipping taxes are worth 40% of the value being measured after the first $5.6 million. This means that the 40% tax only begins after your first $5.6 million, which is tax-free. Estate and gift taxes follow this rule. You should note that generation-skipping transfer taxes are only assigned to those who give property either to their child or their great-grandchild.
What Do I Need to Do to Plan for Incapacitation?
The thought of being unable to handle your personal affairs, including your monetary assets, is scary at best. However, if you have a plan, you will not have to worry about what will happen with those assets. The first thing you must do is appoint a Durable Power of Attorney to manage various assets and other aspects of your estate in the event that you become incapacitated. You should also create a Healthcare Power of Attorney, as most people would rather have someone they trust to make important medical decisions for them, should they be unable to do so themselves.
Additionally, many people wish to create living wills, which can dictate whether you want life-supporting treatments, such as breathing tubes, should you be unable to make that decision yourself at the time. Guardianships are also an extremely important part of estate planning, as they allow you to appoint an individual to care for your minor children if you no longer can. Though this is a sad thought, the truth is, you should select the person you trust, rather than have the courts do it for you.
How Do I Avoid the Probate Process?
Establishing a living trust is key. When you do so, you protect your assets from entering the probate process, as the trust is not in your name. Many people find that revocable trusts are beneficial in that they can change or revoke the trust at any point in their lives.
Contact Our Experienced New Jersey Firm
Juan C. Velasco, Esq. is a trusted attorney who concentrates on bankruptcy, family law, real estate, and estate matters who has been serving the New Jersey area for over 25 years. If you need experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.