There are many kinds of trusts that you could opt for to create for your beneficiaries. Each type has its own benefits to consider. For example, a credit-shelter trust helps you give your estate to your spouse tax-free while also stating who you want to receive the trust. When your spouse passes away, you can even determine who will receive the remaining principal tax-free.
Face it - nobody likes to pay taxes. Neither will your heirs after you die. But while you likely won't be able to eliminate all taxes on your estate, there are perfectly legal ways to reduce them.
Did you know you could give away a substantial amount of money without paying the federal gift tax? If you plan on leaving wealth behind for your family or other heirs and you're worried about edging above the federal estate tax threshold and paying the whopping 40 percent tax, you might be looking at gifting money now to save your estate later. It's important to realize the ramifications of total gifting, though, because a miscalculation could leave your heirs on the hook for a great deal.
In New Jersey and elsewhere, people sometimes use the terms "executor" and "administrator" as though they're interchangeable regarding the estate planning process. However, they are not the same. Generally speaking, the two titles just mentioned refer to males designated to the positions while "executrix" and "administratrix" pertain to females, but for the purpose of this post, "executor" and "administrator" refers to both. When someone asks you to be one or the other, it's crucial you understand the roles and duties assigned to each before agreeing to accept the responsibility.