Category: Ask Garden State Trust

Dear Garden State Trust: My estate is about $10 million—do I have to worry about federal estate taxes? —Affluent, Not Rich Dear Affluent: You are close to the boundary for exposure to the federal estate tax. The exemption for 2020 has been increased to $11.58 million, which would seem to let you off the hook.…

Dear Garden State Trust: I’m intrigued by something I heard about recently, a “dynasty trust.” What is that, and how does it work? —Legacy Builder Dear Legacy: Traditionally trusts with private beneficiaries were not permitted to last forever, but had to have a determinable end date.  This policy was enforced by the “rule against perpetuities,”…

Dear Garden State Trust: The opioid crisis just hit a bit closer to home. Some friends of ours have a 20-something child who has an addiction problem. They are trying another round of rehab; maybe this time it will work. But they’ve confided in me that they don’t know what to do about an eventual…

Dear Garden State Trust: I’m financially secure, and have married for a third time. Lately my kids (from the first two marriages) have been asking about their inheritances. They seem to be concerned that my spouse — or perhaps a future spouse — might freeze them out. How might I allay their concerns? —Third Time’s…

Dear Garden State Trust: When the Fed cut interest rates at the end of July, the stock indices fell. I thought lower interest rates were good for stock prices? What’s going on? Should I be worried about my portfolio? —Worried Investor Dear Worried: Two factors seem to have been at work to produce this unexpected…

Dear Garden State Trust: My parents are retired, living in another state. They have a sizeable investment portfolio and are financially comfortable. However, as they are getting older, they are having trouble keeping up with their paperwork. Last year they were late in making tax payments, very unlike them. I would help them, but I…

Dear Garden State Trust: How much of my salary do I need to save for retirement? —Responsibly Planning Dear Responsibly: The irreverent answer would be “all of it.”  All kidding aside, there is no simple answer for everyone.  The answer depends upon how many years until retirement, how much income will be required then, what…