Patel Law Offices Blog

Estate Tax Pitfalls Seen In Court Case

Few things get people madder at their estate planners than fights over who must pay taxes when someone dies. A big source of trouble: the patchwork of state rules that apply. Most states say those who inherit have to share

New offshore account disclosure law

To pay for the hiring incentives in the recently enacted “Hiring Incentives to Restore Employment Act” (the 2010 HIRE Act), Congress passed several offsetting revenue raisers, including a comprehensive set of measures to reduce offshore noncompliance by giving IRS new

NJ Inheritance Tax

Inheritance Tax, also referred to as the death duty, is the set of taxes which has to be paid by the heir on inheriting the estate of a deceased person. This tax is calculated after taking the total value of

Tangible personal property: plan well to avoid family disagreements

People who provide for their beneficiaries in their estate planning documents generally do a good job with their financial assets but are oftentimes remiss in providing detailed instructions regarding their tangible personal property (ie. household furnishings, jewelry, collections etc…). This

New Jersey inheritance tax

If you live in New Jersey, then you’re lucky enough to live in one of the two states that collects both a separate state inheritance tax and estate tax (the other is Maryland). Currently the following rules apply with regard

Asset Protection for Physicians

Where physicians are most likely to lose wealth is through bad marriages, bad investments, bad tax planning, or a combination thereof.

Life insurance for disabled or special needs children

When a child is born, many people purchase a life insurance policy for him or her. The parent is typically the owner and beneficiary of the policy, and many of these policies are known as industrial or debit policies. There

The questions most frequently asked about probate in New Jersey.

1) How do I begin the probate procedure? The person that wishes to be appointed to represent the Estate will bring a certified copy of the death certificate and the original Will. While the Surrogate can begin the paperwork anytime

Pennsylvania’s 2010 Tax Amnesty Program

Our firm recently successfully filed several client's state amnesty applications.

Medicare and Medicaid Basics

Medicare Medicare Part A covers up to 100 days of “skilled nursing” care per spell of illness. However, the definition of “skilled nursing” and the other conditions for obtaining this coverage are quite stringent, meaning that few nursing home residents

New York Penalty and Interest Discount (PAID) program

In the state's press release, they mention they are increasing their enforcement efforts to collect unpaid bills.

New Jersey State Income Taxation of 2010 Conversion of a Traditional IRA to a Roth IRA

Therefore, New Jersey also conforms to the...provision regarding the Federal Income Tax reporting of a distribution from an IRA which the taxpayer converts into a Roth IRA this year in 2010.


Consideration of tax aspects can save heirs money.

Conservatorship or Legal Guardianship?: How Do You Know When It’s Needed?

The appointment of a legal guardian is something that's not taken lightly

Pointers on the Yearly Gift Tax Exemption

When you give money or property to another person as a gift, you may have to pay a gift tax. The tax is paid by the donor. The person receiving the gift does not have to pay the tax The

2009 Year-End Estate Planning News

The year 2009 was marked by many changes affecting estate planning and related areas on the local, national and international levels, against a backdrop of continuing uncertainty as to how—or if—the federal estate and gift tax applicable exclusion amounts and

Year-End Checklist for 2009

Consider the following before 2009 is over: Make year-end annual exclusion gifts of $13,000 ($26,000 for a married couple). Make year-end IRA contributions. Create 529 Plan accounts before year-end for children and grandchildren, and consider front-loading the accounts with five

Year End Estate Planning Tips – Make Annual Exclusion Gifts

This year the annual gift tax exclusion is $13,000 per person and in 2010 the exclusion will remain the same.

Foreign Account Tax Compliance Act – Traps for the Unwary

For anyone who has clients or family members that live and work abroad, the new Foreign Account Tax Compliance Act (FATCA) is a real problem. Although this Act is supposed to punish Americans who hide assets abroad to avoid their

The Need for Long Term Care Planning

One of the greatest fears of older Americans is that they may end up in a nursing home. This not only means a great loss of personal autonomy, but also a tremendous financial price. Depending on location and level of

Conservatorship or Legal Guardianship: Which is the Right Choice?

Conservatorship concerns only the conservatee's financial matters when they need assistance.

New Jersey Transfer Inheritance Tax : How the Tax Works

New Jersey also has an inheritance tax. An inheritance tax means that when a New Jersey resident dies his or her assets will be taxed on the basis of who inherits those assets No Tax on Most Inheritances For most

What is an Irrevocable Life Insurance Trust (ILIT)?

Many people aren’t aware that all of the proceeds from life insurance policies that they own at death will be included their estate for estate tax purposes. This is because if the policy owner can withdraw the cash value and

Estate Planning Discussions: difficult, emotional and stressful

Delaying these discussions can lead to significant family hardship and a loss of highly prized and hard-earned assets.

Navigating the Step-Up Tax Basis Rule

Do not try this at home alone. Consult with your tax adviser to determine the best course of action regarding your entire tax liability.

Non-Resident Estate Tax Trap

If you aren't a citizen or resident of the United States, and want to own U.S. shares, don't hold them in your own name.

Estate tax future unclear

Many commentators do not believe that a permanent fix for the federal tax will emerge anytime soon.

IRA Beneficiary Designation Planning

When an estate or another non-individual is a primary beneficiary, the entire IRA must be distributed within five years after the original owner's passing.


By Parag Patel, Esq. If the U.S. Government is your favorite charity, rest assured, it will find a way to use your donation.  But wouldn’t it be better to give your money to your children?  Studies show that 60% to

15 IRS Audit Tips

1. In an audit, you must convince the IRS that you reported all of your income and were entitled to any credits, deductions and exemptions that are questioned. 2. Delaying the audit usually works to your advantage. Request more time