In the New Jersey Star-Ledger's March 7 Biz Brain Column, a reader asks if his family would benefit upon his death if he declared Pennsylvania his primary residence rather than New Jersey. For the answer, the Star-Ledger turns to Day Pitney's Mary Lou Parker.
From the Star-Ledger:
"Both New Jersey and Pennsylvania impose an inheritance tax based on the relationship between the beneficiary and the decedent. Transfers to a spouse are exempt in both states, but in Pennsylvania, transfers to children are subject to Pennsylvania a 4.5 percent inheritance tax. Pennsylvania does not impose an estate tax, said Mary Lou Parker, an estate planning attorney with Day Pitney in Morristown.
"Parker says this is what your case looks like, assuming you and your wife are U.S. citizens, your New Jersey home is worth $300,000 and your Pennsylvania home is worth $200,000: Regardless of in which state you're domiciled, the first of you to die leaves everything to the surviving spouse, causing no tax. If the surviving spouse was domiciled in New Jersey and still owns both homes, there would be no New Jersey inheritance tax, but there would be a New Jersey estate tax of $26,560 and Pennsylvania inheritance tax of $9,000 ($200,000 x 4.5 percent), for a total of $35,560. If the surviving spouse was domiciled in Pennsylvania, the Pennsylvania inheritance tax would be $31,500 ($700,000 x 4.5 percent) and there would be no New Jersey tax.
"Parker said whichever state you choose, you could avoid the tax by splitting your assets and creating a bypass trust on the first death for the other's benefit. This would shelter assets from New Jersey's estate tax in both estates by taking advantage of the $675,000 New Jersey estate tax exemption, thereby maximizing your children's inheritance."
Dina Kapur Sanna will be speaking on two panels at International Estate & Tax Planning 2019, a conference presented by the Practising Law Institute and held in New York, NY.
Carl Merino spoke on a panel, "Non-Residents Acquiring Real Estate: Compare & Contrast Between the U.S. & UK," at the U.S.-UK Tax Planning conference, presented by KNect365 and held in New York, NY.
Day Pitney LLP hosted its annual invitation-only Palm Beach Family Office Forum at the Eau Palm Beach.
On March 27, Warren Whitaker will be speaking on "Passing Down Your Prized Possessions: How to Avoid Fights and Fees In Your Estate," a seminar hosted by the New-York Historical Society's Planned Giving Advisory Council and held at the Robert H. Smith Auditorium in New York City.
Warren Whitaker will be serving as chair of the 15th Annual International Estate Planning Institute, hosted by the New York State Bar Association and The Society of Trust and Estate Practitioners USA (STEP USA).
Tina Albright and Rebecca Tunney were quoted in an article, "USA Update: Engaging Women in Wealth Management," published by Citywealth.
Day Pitney attorneys Tina Albright and Rebecca Tunney have been shortlisted for "Best Female Advisors & Managers in the USA" for New York and Boston, respectively, as part of the U.S. Powerwomen Awards by Citywealth.
Day Pitney Press Release
Day Pitney's Family Office and Trusts and Estates practices have been shortlisted in two categories, "Best Private Client Law Firm" and "Best Trusts and Estates Division," for the 2019 Private Asset Management Awards.
Day Pitney's Family Office and Trusts and Estates practices have been shortlisted in the "Legal Team of the Year" private client category for the 2019 Family Wealth Report Awards.