Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Splitting Inheritances Evenly May Not Always Be the Best Policy
Author: Scarinci Hollenbeck, LLC
Date: February 22, 2013
Key Contacts
Back
How Will You Split Their Inheritance?
When it comes to dividing up an estate among heirs, many affluent individuals and business owners balk at leaving one child more assets, cash, or property than their other children for fear that it will cause sibling rivalry. However, when business interests or family heirlooms are involved, this may be the best policy.
Changes to the estate tax law allow individuals to leave $5.25 million – or $10.5 million for married couples filing jointly – to heirs in 2013, up from $5.12 million in 2012. The gift tax exclusion also increased to $14,000 for singles and $28,000 for couples, compared to 2012 limits of $13,000 and $26,000, respectively. As business owners may now transfer larger portions of their estates to heirs without triggering a tax, it’s important to make objective, rather than emotional, decisions regarding wealth transfers, according to recent article in the Pittsburgh Post-Gazette.
Many business owners hand down family assets in an effort to further their legacy and continue to build wealth for future generations. Splitting up assets evenly among several children can lead to family squabbles about how to manage assets, a scenario that could eventually diminish wealth. In addition, those who have different ideas about how to run the company or simply want no stake in it at all could sell their shares or make other decisions that impact a company’s future.
For these reasons, business owners are advised to take the competency and future goals of each heir into consideration before handing over a sizable portion of the estate. If one member is better suited to handle day-to-day operations than another, splitting assets evenly may not be a smart move. In addition, working with an estate attorney to create trusts designed to keep assets within the family is another move that may prevent heirs from selling off or jeopardizing a company’s future.
- Practices: Tax and Trusts & Estates, Sophisticated Estate Planning & Wealth Preservation, Estate & Trust Litigation, Real Property Tax Strategies
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
What Every Real Estate Investor Should Know Before Buying a Rental Property
Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]
Author: Donald M. Pepe
Can You Change an Irrevocable Trust in New Jersey?
In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]
Author: Marc J. Comer
How Intellectual Property Valuation Will Impact Business Transactions
Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]
Author: Jay McDaniel
Data Center, Dark Fiber, and Lit Services Agreements in New Jersey: Key Terms and Legal Pitfalls
For New Jersey data center owners and operators, a service agreement may look routine when it is signed. The network is functioning, the vendor is meeting its installation schedule, and the parties have agreed on pricing and performance specifications. The provisions that seem most important at that stage are often the technical ones. That changes […]
Author: George McGowan
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Author: Donald M. Pepe
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Author: Donald M. Pepe
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.