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."
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).
On January 16, Carl Merino and Warren Whitaker participated in "Estate Planning Across Borders: A Guide for the Perplexed," a program at the annual meeting of the New York State Bar Association presented by the Trusts and Estates Law Section.
On January 16, Dina Kapur Sanna will be speaking on a panel, "Lose the Fear of the Foreign – Practical Planning Strategies," at the 53rd Annual Heckerling Institute.
Rebecca Tunney authored a case comment article, "Protecting Real Property from MassHealth's Estate Recovery Claim: Is it Possible?" published by the Massachusetts Law Review.
Warren Whitaker and Edda Santiago presented a webinar, entitled "A Guide to International Estate Planning for U.S. Citizens, Residents, Trusts and Assets," produced by Lawline.
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.
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.