There are many factors that must be considered when you are trying to handle your parent's estate when they pass away. Since it was your parent who passed away, you are considered a Class A beneficiary. This plays an important role in how the estate is handled, particularly for tax purposes.
Parents may want to leave their children money when they're gone, but they might want to ensure that their children don't have to pay taxes on this wealth transfer. This concern could lead parents to assume that the best course of action is to give their children the bulk of their inheritances while they're still alive. Doing so, however, could be a very big mistake and lead to serious, unintended tax consequences.
There are many negative consequences to owing a significant amount of debt. In addition to the stress of watching your balances increase and getting calls from debt collectors, you may also get notice of a wage garnishment. This means that your New Jersey employer will be withholding a portion of your wages for the purpose of paying off your debts.
Once you get your estate plan together, you might think that you can file it away and forget about it. This isn't the case at all. You will need to review the estate plan periodically to ensure that it accurately reflects your family and financial situations.
The choice to deal with your overwhelming debt through bankruptcy is not an easy decision to make. It is a major step for New Jersey consumers, and it requires careful thought and consideration before you move forward. Before you file for Chapter 7 bankruptcy, you may find it beneficial to learn about how this process will affect your property rights.
When you are creating your estate plan, there are many things you have to think about. One of these is how you will be able to pass along as much of your estate to your loved ones when you pass away. This means that you need to consider your debts, but it also means that you need to think about estate taxes.