Category: Ask Garden State Trust

Dear Garden State Trust: My spouse died two years ago, leaving me an estate worth several million dollars. Because the estate was less than the federal exemption amount, I was told that no federal estate tax return was necessary. Was that advice correct? —Having Second Thoughts Dear Having: It’s complicated. Not filing the federal estate…

Dear Garden State Trust: At what wealth level do I need to worry about the federal estate tax? —Affluent, Not Rich Dear Affluent: That depends upon your circumstances. The amount exempt from the federal estate and gift tax in 2022 will be inflation-adjusted to $12,060,000, up from $11,700,000 in 2021.  If you are married, you…

Dear Garden State Trust: I’m looking for an investment that could double or triple my money in a year. However, it can’t be too risky, as I’ve had some financial setbacks this year. I have a lot of ground to make up, but I have to do it safely. What do you recommend? —Mixed Signals…

Dear Garden State Trust: What is a GRAT?  Is this something I should be considering? —Curious About Trusts Dear Curious: GRAT stands for Grantor Retained Annuity Trust. This is a temporary trust that may be used to transfer large sums free of federal gift or estate tax. The Grantor establishes the trust for a specific…

Dear Garden State Trust: Now that the federal estate tax exemption is over $11 million, do I still need a marital deduction trust in my will for my wife? —Concerned Husband Dear Concerned: Most likely, yes. If your current will includes a trust for a surviving spouse, you probably will want to keep it. A…

Dear Garden State Trust: What are the chances that we will see tax reform soon? —Rate Worrier Dear Rate: Based upon past experience, I would say that the odds are somewhat against tax reform this year. Usually tax reform legislation has had a lengthy and public process as it moves from broad goals to specific,…

Dear Garden State Trust: I’ve read that when interest rates go up, bond prices go down. Why should this be so? It seems a bit irrational to me. —Cynical Investor Dear Cynical: It’s not irrational. It’s not emotional at all; it’s just math. Here’s a simplified example. You have a bond with a face value…