Do you understand why it is so important to have a well thought out estate plan in West Palm Beach? The truth is in this modern, globally connected world there is a ton of different areas your assets are stored. Do you know where all of your accounts are located? Do you own real property throughout the country? Throughout the world? You need to consider a few different things before you consider your estate plan all done. Check out this case out of New Jersey where a woman is now paying an extra 15% in estate tax because her and her partner failed to file ONE form!
Estate Taxes, Tax Planning and Estate Planning
- It is true that in West Palm Beach there is no State estate tax.
- Does that mean your estate will never be subject to tax since you live here?
- Think again!
- First of all, yes, there is a federal estate tax (40%!).
- But also you may have property in other States or other Countries that will be subject totheir estate and inheritance taxes.
- Did you plan out for foreign taxes when crafting your West Palm Beach estate plan?
- You may want to.
- The fact that you are not subject to taxes in Florida is not going to change your liabilities in other states or countries.
- Experienced Palm Beach probate litigators deal with this issue everyday.
- Experienced estate planners in West Palm Beach know that this is an international city, with retirees who have assets from all over.
- If you are not getting a full estate plan, what are you really paying for?
- You do not want to end up like the couple who ended up paying 15% tax on their estate following the one partner’s death, take a look.
NJ Supreme Court Snubs Domestic Partner Inheritance Tax Case
- The world was just informed that the New Jersey Supreme Court will not hear an appeal filed by the beneficiary of a federal pension who was denied domestic partner status (and the applicable exemption) from state inheritance tax.
- The prior ruling was pretty harsh, it stated that because she had failed to file one document with the State, she was for all intents and purposes not a domestic partner.
- That means to inherit from her late partner she has to pay a 15% tax!
- Keep in mind that her partner had worked for the Federal Government and had filed notices with the Feds about their status.
- The New Jersey Court said that is not the same as the State affidavit and once more, its not good enough!
- Can you imagine having to pay money to inherit what is partly yours!
- The Court even noted the similarities of the documents but essentially said, close but no cigar.
- Is this fair?
- The truth is whether or not its fair does not matter much, now.
- What matters is making sure it does not happen to you!
Want to learn more about state inheritance tax failures?
Check out a recent article about this upsetting story by clicking here.