With the federal estate tax exemption at five million dollars per person in 2011 and 2012, the margin between the New Jersey exemption six hundred and seventy five thousand dollars and the New York exemption of one million dollar has widened appreciably.

The consequence of this is that for married taxpayers who want to take advantage of the first spouse to die’s full federal exemption and pass five million to their beneficiaries (for example, to an exemption trust for the benefit of the surviving spouse and/or children), then without special planning, a New Jersey/New York estate tax of approximately three ninety one thousand and six hundred dollars would be due.

Parties have to consider whether it is worthwhile to pay some state level estate tax in the first spouse to die’s estate, especially in light of the fact that beginning in 2011, a married decedent’s federal estate tax exemption is transferable meaning the surviving spouse can use the first spouse to die’s unused estate tax exemption amount.

One’s father is deceased. There is a trust agreement, along with a will. Mother of the person and all three siblings are co-trustees on the trust and listed as beneficiaries on the will. It is believed that a trust agreement supersedes a will. The home is now owned by the person’s three siblings with the mother with right of survivorship. The big question is when is the best time for selling the house in regard to taxes?

It had been told that when the mother dies the house will become a part of the trust estate and that the taxes would be less. The person’s mother has other assets, so does not need to sell the house, but the house is now vacant. Renting is not favorable as the house is fifty years old. Mother, sister and the person would like to sell it now, but the brother does not agree because of the tax question. Mother’s entire estate is under one million dollars. This is stated by a lady called Betty. They are utterly confused