In light of recent events within the banking industry, President and CEO of Peapack-Gladstone Bank, Doug Kennedy, has been moved to address an open letter to clients as well as the general public.
SPECIAL REPORT – Tax Law Change
New Jersey Governor Chris Christie last week signed bipartisan legislation designed to restore the NJ Transportation Trust Fund (TTF) by increasing the gas tax by 23 cents per gallon effective November 1st. Gov. Christie agreed to an increase in the gas tax after negotiating a reduction in the state’s sales tax and an elimination of the New Jersey estate tax by 2018. Analysis of the legislation’s various components indicates that retired and affluent Garden State taxpayers will significantly benefit from the savings. Legislators hope that this tax reform will stop people from leaving New Jersey for lower tax-cost states. The most significant and meaningful change for most of our clients regards the elimination of the New Jersey estate tax that imposes a levy on any estate valued over $675,000. Given the substantial tax law change, many estate plans that have been constructed based on the current estate tax exemption of $675,000 will not function as originally intended. It would be advisable for wealthy individuals to review their current estate plans with one of our Wealth Advisors based on these noteworthy changes to the estate tax law.
PEAPACK-GLADSTONE BANK IS A HIGH-PERFORMING BOUTIQUE BANK, LEADERS IN WEALTH, LENDING AND DEPOSIT SOLUTIONS, KNOWN NATIONALLY FOR UNPARALLELED CLIENT SERVICE, INTEGRITY AND TRUST.