When you give someone a gift you are aware of the fact that you are giving away something that has value and it costs you something to engage in this act of generosity. This is the essence of gift giving, a selfless act of divesting yourself of something that you own for the benefit of someone that you care about.

The above is all good, but what you may not bargain for is the tax man taking advantage of this opportunity as well.

If you give gifts that exceed a certain amount they are subject to the federal gift tax. The gift tax exemption is unified with the estate tax exclusion. Right now this unified exclusion is $5.12 million, but it is scheduled to be reduced to just $1 million at the beginning of 2013.

So if you were to give gifts totaling $1 million next year, your entire estate and any future gifts that you give while you are still alive would be subject to a tax. This levy will be carrying a 55% rate in 2013 unless changes to existing laws are made between now and then.

The above is not good news, but there are some gift tax exemptions that can be utilized that are separate from the unified lifetime gift/estate tax exclusion. One of them allows you to give as much as $13,000 to an unlimited number of people every year free of the gift tax. You can also pay the medical expenses and school tuition of others as a gift free of the gift tax.

Given the intricacies of the tax code expert advice is needed when you are planning your estate. To obtain the professional guidance that you need to optimally position your assets take action right now to arrange for a consultation with a good Somerset County estate planning lawyer.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

Depending on your unique situation, various different approaches may be necessary when you are planning your estate. There can be a lot more to it than simply drawing up a last Will. This is one of the reasons why you would do well to steer clear of do-it-yourself estate planning software and generic template last will documents.

Certain scenarios can call for some advanced estate planning techniques, and sometimes they are implemented in an effort to gain estate tax efficiency. The Federal estate tax sits poised to consume 35% of the taxable value of your estate as of this writing and this figure is scheduled to rise to 55% at the end of the year.

There are also New Jersey state death taxes to consider. So depending on the extent of your resources and the various forms they may be in some advanced strategies may be employed in an effort to gain estate tax efficiency.

Another type of situation that sometimes arises involves an heir who may have special needs. Individuals who have special needs may be receiving benefits from the government that are valuable to them. It can take some specialized planning to provide for a loved one with special needs while not doing anything to jeopardize his or her benefits.

It is important to recognize the fact that any number of legal instruments may be necessary to optimally prepare your assets for eventual distribution to your loved ones. This can only be accomplished with the assistance of a licensed, experienced and savvy Central New Jersey estate planning lawyer.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

Somerset County estate planning lawyers are adamant about emphasizing how important it is for people of all ages to execute the appropriate estate planning documents.

Far too many people go through life under the impression that they are too young to have to worry about estate planning. But in reality, it is never too soon to start taking steps to provide for your family in the event of your death. After all, there are no guarantees and you do not know what the future holds.

This fact was demonstrated by the recent death of the singer Whitney Houston. Houston was just 48 years old when she passed away and it is not yet known precisely how she planned her estate. Observers suggest that her vast resources will be inherited by her 18-year-old daughter Bobbi.

Though Whitney Houston had a lot of financial success throughout her life, experts say that the value of her estate will increase dramatically as a renewed interest in her work takes hold.

Few of us expect pass away before we celebrate our 50th birthdays, but as you can see it does happen and it can happen to people who have everything to live for.

If you are currently unprepared for all eventualities action is required. The logical first step is to reach out and contact a good central New Jersey estate planning lawyer. He or she will answer all of your questions, evaluate your unique situation, and assist you as you execute the appropriate estate planning documents for the well-being of those that you love.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

During our current era social networks have become a very large part of our lives and you may be surprised to hear just how true this is.

Sometimes you hear a statistic that really is kind of hard to believe, and when you examine Facebook usage it is rather incredible. About one out of every four page views that takes place on the Internet is a Facebook page. As recently as 2010 statistics indicated that Facebook visits accounted for one out of every 10 excursions onto the Internet.

If you are one of the many people who has a Facebook account (there are over 155 million Americans on Facebook according to CheckFacebook.com) you may want to leave instructions with regard to how you want your account handled after you pass away. You probably don’t want an unattended Facebook identity lingering on the Internet into perpetuity.

Facebook has this figured out through their practice of memorializing the accounts of deceased Facebook users. If the family member of a deceased individual lets Facebook know about the passing of an account holder Facebook will do a number of things with the account.

For one, no further access to it will be allowed. In addition, status updates and the personal information of the deceased account holder will no longer be available. The deceased individual will no longer come up as a potential friend or appear in searches. But, friends of the memorialized account holder will still be able to post on his or her wall.

There certainly are a number of things to consider when you are planning your estate in the digital age, and social networks accounts are just one of them. To create a comprehensive estate plan in light of today’s routine use of modern technology, simply arrange for a consultation with a good Central New Jersey estate planning lawyer who is up to speed with regard to Internet usage.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

When you are in the field of estate planning the implications of federal and New Jersey state death taxes are always going to be in the forefront of your thinking. Yet, many average citizens may not realize that the assets that they have left over after they pass away may be subject to taxation.

Why would they? You paid taxes all of your life on every penny that you earned and on most purchases that you made. If you are fortunate enough to have anything left after paying all these taxes you can put it in the bank. Your after-tax savings are not subject to any further taxation.

So why would there be a tax imposed as these resources are being passed on to your family members after you die?

This is the question that many people ask when they find out about the estate tax, and an answer that makes sense is like the Jersey Devil; there are rumors of its existence but it has not yet been found.

In spite of the fact that the tax may not be logically supportable as fair, the estate tax is a reality all the same.

If you are exposed to the tax you can take steps to reduce your liability with the appropriate legal assistance. Should you be interested in hearing about possible solutions given your unique situation, don’t hesitate to take action to arrange for a consultation with a licensed, experienced, and savvy Central New Jersey estate planning lawyer.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

You will sometimes hear people say that they are not worried about the estate tax because you have to be “rich” to be exposed. In truth, this would depend on your definition of the word rich and in fact many people who do not consider themselves to be wealthy should indeed be concerned about the estate tax.

The estate tax exclusion amount is not something that is set in stone. It has changed a number of times over the last decade and it is scheduled to change yet again at the end of 2012.

This revision is going to raise the estate tax rate from 35% to 55% and reduce the exclusion from $5.12 million all the way down to $1 million. As a result, the portion of your estate that exceeds $1 million in total value will be subject to a 55% federal levy when 2013 arrives.

We were faced with a similar situation in 2010 as the Bush tax cuts were scheduled to expire. Had they been allowed to sunset with no new legislation passing the exclusion would have been $1 million and the rate would have been 55% at the beginning of 2011. But a tax relief measure was signed into law in the middle of December that gave us the parameters that we have right now.

The bottom line is that you do not have to be Warren Buffett or Bill Gates to be exposed to the estate tax. The upside is that there are legal steps that can be taken to reduce the taxable value of your estate. If you would like to explore them simply take a moment to pick up the phone to arrange for a consultation with a good Central New Jersey estate planning lawyer.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

You will always hear estate planning attorneys emphasizing how important it is to plan for the future. Many people will let this advice go in one ear and out the other, telling themselves that they will always have time to make these plans at a later date. The cold hard truth is that if you do this you are putting the people that you love in harm’s way.

As a case in point consider the estate of the man who wrote the popular crime novel The Girl With The Dragon Tattoo, a book that was subsequently adapted to the big screen. The author was a Swedish fellow named Stieg Larsson and his talents with the pen paid off handsomely. It was estimated that the estate of Stieg Larsson was worth around $40 million when he passed away in 2004.

Larsson died intestate, meaning that he passed away without having executed any estate planning documents. He reportedly lived with the same woman for some 32 years. He passed away at age 50, so they were together for his entire adult life.

It would be logical to assume that a man worth $40 million who had a live-in girlfriend for over 30 years would want to provide something for her after his death. But in fact the courts ruled that she would receive nothing and that his entire estate would go to his father and brother.

Situations such as these paint a very clear picture: If you fail to plan ahead disastrous results can ensue. If you are currently unprepared for the inevitable, right now would be a good time to stop the cycle of procrastination and make an appointment to speak with a good Somerset County estate planning lawyer.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

When you start to probe into the subject of estate planning you invariably hear talk about payable on death or transfer on death accounts.These accounts allow for a beneficiary or beneficiaries to assume ownership of the resources remaining in the account after the death of the primary account holder.

On the surface this can seem like a very useful and simple solution when you are planning your estate. However, there are some shortcomings to consider when you talk about payable on death accounts.

One important thing to take into account is the possibility of estate tax exposure. If the overall value of your estate exceeds the estate tax exclusion amount you are going to have to take steps to reduce the taxable value of your estate. When you place resources into a payable on death account you have incidents of ownership and as a result these assets are part of your taxable estate.

Another factor that makes payable on death accounts less attractive is the fact that many financial institutions will not allow you to split the resources among multiple beneficiaries in different percentages. They require you to allow for the assets to be split among the beneficiaries equally, and you may not want to divide the resources in this way.

Payable on death accounts are also not going to address the matter of who handles the assets in the event of your incapacity. Your beneficiary does not have access to the funds until you actually pass away.

POD accounts are not a comprehensive solution. The best way to plan for the future is to sit down and discuss all of your options with a licensed and experienced Central New Jersey estate planning lawyer.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

You have options when you are engaged in the process of estate planning. You are not obligated to utilize a last Will to arrange for the transfer of your assets after you pass away. A lot of people are opting for revocable living trusts these days and they can be a good choice.

When you look at these trusts you see that they are not extraordinarily complicated. You have a grantor or settlor who is the individual who creates the trust, funding it and setting forth instructions in the trust agreement. The grantor has to name a beneficiary who will benefit from the resource placed into the trust and a trustee who will manage the funds.

If you create a revocable living trust you may want to serve as both the trustee and the beneficiary while you are still alive and capable of making your own decisions. You also name successors to step into these roles after your death or incapacitation.

When it comes to the selection of a trustee, a lot of people will select a trusted family member. However, if that is not an option you may utilize a professional entity like a trust company or the trust department of a financial institution. This ensures the appropriate handling of the resources, which can include making investments.

If you are interested in the possibility of creating a revocable living trust, the intelligent first step would be to sit down and discuss your unique situation with a licensed and experienced Somerset County NJ estate planning lawyer. He or she will listen attentively as you explain your wishes and help you to craft a plan that ultimately makes your vision a reality.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

If you are a pet owner, when you are planning a vacation that is not going to involve your pet coming along you recognize the fact that you are going to need to find someone to “pet sit.” In the same manner, it is important to remember your four-legged friends when you are planning your estate.

One of the reasons why people fail to plan ahead for the well-being of their pets is because they expect to outlive the animals. Of course you may indeed live longer than your pets, but that does not mean that you should not be prepared just in case.

Parents with dependent children are going to have to select a potential guardian for the children in the event of the death of their parents. This is not likely, but you don’t want to leave anything to chance. The same thing is true with your pets.

Pet planning is going to involve a two-pronged approach. First of all you’re going to have to get someone to agree to care for the animal should you predecease it. There are a lot of animal lovers out there so this should not be too much of a problem.

In addition, you are going to have to provide financial resources so that the caretaker can provide for the pet’s needs. This can be done through the creation of a pet trust and this has become a very popular option. Another possibility would be to leave an inheritance to the caretaker earmarked for the benefit of the pet.

If you are ready to make sure that your pets are provided for come what may, simply make an appointment to sit down and discuss the matter with a licensed and experienced central New Jersey estate planning lawyer.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.