Monday, September 22, 2014

Elective Share of Surviving Spouse


The New Jersey statute pertaining to a surviving spouse’s elective share, R. 3B:8-1, reads as follows:

“If a married person or person in a domestic partnership dies domiciled in this State, on or after May 28, 1980, the surviving spouse or domestic partner has a right of election to take an elective share of one-third of the augmented estate under the limitations and conditions hereinafter stated, provided that at the time of death the decedent and the surviving spouse or domestic partner had not been living separate and apart in different habitations or had not ceased to cohabit as man and wife, either as the result of judgment of divorce from bed and board or under circumstances which would have given rise to a cause of action for divorce or nullity of marriage to a decedent prior to his death under the laws of this State.”

Monday, September 15, 2014

Special issues for employees using their car for business matters


If you are a business owner and you have one or more employees who use their cars for business matters, you need to be aware of the rules governing employees’ use of vehicles. These rules not only pertain to reimbursements and deductions, but to employer liability as well. (Note that this is not for the employee commuting to and from work.)

Monday, September 8, 2014

How Assets Are Owned Will Affect Distribution at Death


Anybody who knows me knows that I always recommend a person have a Will, Living Will, and Power of Attorney.

This article will focus on a Will and the effects of how assets are owned. A Will distributes “probate assets.” “Probate assets” are assets owned by you without an automatic beneficiary.

Monday, September 1, 2014

“Domestic Partners” and Transfer Inheritance Taxes


Generally, when a person dies, New Jersey death taxes apply. We have two levels of taxes:
1.     NJ Estate Taxes. These are only owed if the decedent has more than $675,000 in total assets, including life insurance.
2.     NJ Transfer Inheritance Taxes. The rate depends on a person’s relationship to the decedent. Depending on the closeness of the relationship, the beneficiary will be either Class “A,” “B,” “D,” or “E.”

Husbands, wives, civil union members, and domestic partners are all considered “Class A Beneficiaries” under New Jersey law, which means that there are no Transfer Inheritance Taxes due on the inheritance received.