Save Your Estate

Why should the government or anyone else direct what happens with your estate assets? Why should a court, a stranger, or someone other than your choice make the medical and financial decisions for you if you become sick and incapacitated? Why should anyone other than your spouse, life partner, or the one you choose make the decisions about your illness, hospital visits, your funeral and what happens to your estate?

Monday, June 06, 2005

Death Taxes on IRA's

Question: Hi,my mom will inherit approximatly 500k from her sister's estate. Some funds are in IRA accounts, i understand the inheritence tax is 11% after the first 25k. My questions...are the retirement funds subject to inheritence tax? Are there any exemptions or deductions? Thanks, Karl

Reply: Not only are the IRA's subject to NJ Inheritance tax, they are also subject to US and NJ Income tax. If your Mom is in a high income tax bracket, the combined State and Federal Rate can exceed 40%. Try to have your Aunt see a good estate tax lawyer right away!I hope this helps.Ronald J. Cappuccio, J.D., LL.M.(Tax)

posted by Unknown | 10:41 PM