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."
On November 13, Carl Merino co-presented on "Acquiring U.S. or UK Real Estate" at the U.S./UK Tax and Estate Planning Conference, sponsored by Frank Hirth and held in London, UK.
On November 9, Peter M. Shapland, chair of Day Pitney’s Trust Services and Fiduciary Compliance practice group and chair of the firm’s Trust Oversight Committee, served as a panelist at the Massachusetts Bar Association’s Sixth Annual Probate Law Conference held in Norwood, MA.
On October 24, Aaron Kriss will be speaking on a panel, entitled "Onboarding a New International Client," at the 13th Annual Delaware Trust Conference, presented by the Delaware Bankers Association and the Delaware Financial Education Alliance.
On October 17, Day Pitney LLP's Individual Clients Department and Family Office Practice hosted "Investing in Art," a private, invitation-only program in the firm's ongoing Family Office Investing Series, held at the Downtown Harvard Club of Boston.
On October 11, partner Angela Titus McEwan will be speaking at "Smart Women, Savvy Planning," a program presented by UBS Private Wealth Management and held at UBS in Florham Park, NJ.
Darren Wallace was quoted in an article, "Paul Allen's $26 Billion Estate Will Take Years to Unravel," published by Bloomberg.
On October 3, Day Pitney LLP and the Association of Corporate Counsel (ACC), Northeast Chapter – Women's Initiative co-presented a program, "The Power of Women with Wealth," held at Day Pitney's Boston office.
Partner Leigh A. Newman has been selected by the Jewish Federation of Greater Hartford to receive the Jewish Federations of North America's 2019 Kipnis-Wilson/Friedland Award.
Day Pitney Press Release
Day Pitney Press Release