The federal estate tax exemption stands at $5.45 million in 2016, and there are a variety of ways that people can take advantage of it. One particularly popular option is using gifts. People are allowed to give up to $14,000 per person per year as a gift without it counting against their estate tax exemption. Additionally, married couples are able to give joint gifts, allowing couples to give gifts of $28,000 to a person every year.
People in New Jersey are typically aware of the need for addressing end-of-life matters. This process usually includes writing wills, deciding on powers of attorney and choosing guardianships. Unfortunately, however, people often make the mistake of asking a lawyer to help with drafting estate planning documents and then never reviewing the plan again.