Monroe Township NJ Estate Planning and Elder Law Attorney Blog | Neel Shah - Part 2
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The Top Four Retirement Risks

January 11, 2018

Filed under: Retirement Planning — Neel Shah @ 9:15 am

As you look ahead towards your own retirement, do you think you’ve done enough planning? In volatile times, it’s hard to tell what kind of risks you might face years into the future when it’s time for retirement. You need the support of a team of professionals who can help you guard against major retirement risks. 

A solid income plan should always be used to avoid problems with your retirement. If you thought that saving for retirement was difficult, your nest egg needs to be protected well after you reach age 65 or the age at which you intend to retire. Some of the most common risks include taxes.

If you have a silent partner in Uncle Sam because you have been putting away money in a tax-deferred retirement plan, you could be putting yourself at risk for less income than you expect. In addition, investment risk, inflation risk, and legacy and estate risk can all pose problems for you, if you do not have the assistance of an experienced estate planning attorney. When you know how you intend to get to retirement and what you will do to protect your assets once you get there, you will feel much more confident in the management of your estate and the fact that you have done everything possible to minimize potential risks.

Top Things Entrepreneurs Get Wrong in Running a Business

January 10, 2018

Filed under: Business Planning — Neel Shah @ 9:15 am

There are so many different risks to think about and potential growth opportunities affecting entrepreneurs that far too many of them fall prey to missing out on important planning opportunities. One of these includes not preparing for a lawsuit well before it happens. Most entrepreneurs only worry about this after a lawsuit has been filed or after an accident has occurred. However, at this point, options are limited.

Being an entrepreneur comes with a long to-do list, but it’s still important to consider that protecting your risks is a worthwhile endeavor. Asset protection planning is one worthwhile goal. 

Some advanced asset protection planning carried out with the assistance of a lawyer can help you. You don’t want to commit what is known as a fraudulent conveyance, such as moving money around to avoid losing it to a lawsuit once the lawsuit has already been filed. The best time to plan for asset protection planning is when there is no risk in sight. If you plan appropriately, you may be able to settle lawsuits for very little compared to the potential exposure.

The crucial aspect of this is having a comprehensive plan drafted by an estate planning attorney so that those assets cannot be taken from you.

What Did Whitney Houston, Michael Jackson And Prince All Do Wrong?

January 9, 2018

Filed under: Estate Planning — Neel Shah @ 9:15 am

 

The deaths of icons Whitney Houston, Michael Jackson and Prince rocked the world, but unfortunately, left their families burdened and broken-hearted with estate taxes and fees. Despite having professionals to help with practically every aspect of their lives, none of these artists had a total estate plan, which ultimately ended up costing their heirs millions of dollars and what would have otherwise been avoidable taxes and legal fees. avoid these estate planning mistakes

An estate plan is crucial for the peaceful transfer of assets from your generation to the next. However, even if your estate doesn’t include things like private amusement parks or music rights, there are still takeaways from these artists’ situations to avoid the same costly mistakes. Even though Prince, for example, had paid all necessary taxes without audits from the IRS and had appropriately valued assets, he left no will when he died.

This means that more than 45 people ultimately came forward claiming to be heirs, including nieces, half siblings, siblings and supposed children, which cost the estate tremendous amounts in legal fees to investigate this and respond to it. In order to avoid these challenges, schedule a consultation with an experienced estate planning attorney, regardless of the size of your estate. You can get your own peace of mind and ensure that your beneficiaries receive the assets to which they are entitled well in advanced.

Don’t Forget a Successor on Your 529 Plan

January 8, 2018

Filed under: College Planning — Neel Shah @ 9:15 am

A 529 plan is one of the most common methods for people to plan ahead for their children with regard to education. 529 plans are used by parents as well as grandparents to leave behind assets for a child’s use in college and beyond. The importance of naming a successor, however, cannot be understated. 

You should contact your 529 plan manager for the form to submit both primary and secondary successors. The account holder will submit the form naming the successor as the new account owner and if the owner dies unexpectedly, the primary successor assumes all control. Remember that the successor has all the rights of a traditional account owner.

That means he or she can choose to change the beneficiaries, so this should be somebody you trust. Scheduling a consultation with an experienced estate planning attorney who has helped many other people gather the necessary strategies and tactics to protect investments and assets for college education is important. Sitting down and walking through what you intend to do with your assets, including 529 plans and naming successors and secondary beneficiaries on all of your accounts can give you greater peace of mind that your wishes will be followed in the future.

Do Estate Planning Now If Nursing Home Could Be in Your Future

January 4, 2018

Filed under: Medicaid — Neel Shah @ 9:15 am

Planning ahead can make things easier for you and your loved ones, even if you are not currently affected by a disability or a medical condition that could lead you into a nursing home. If you do comprehensive estate a minimum of five years before you would need to enter a nursing home, you can help to protect a large portion of your assets from having to be spent on long-term care. Seniors may wish to consider getting some of the assets out of their own name and into their kids’ names. An estate planning attorney and a financial advisor are both recommended, so that you avoid consequences associated with poor Medicaid planning.

Trust planning to help protect your assets can still enable you to have control over the distribution of these assets and know that you will likely be entitled to take advantage of Medicaid when it becomes available to you. Consulting with an experienced estate planning attorney is often the first step in identifying what you need to do to protect your loved ones. Although it might seem difficult to look into elder law planning many years before you might actually need it, it is often these unexpected surprises that can generate concerns for you and your loved ones. Avoid a guardianship proceeding and other challenges associated with long term care planning, by scheduling a consultation with an estate planning lawyer today.

Wealthy Individuals Must Not Forget Art Planning

January 3, 2018

Filed under: Asset Protection Planning — Neel Shah @ 9:15 am

Many wealthy individuals set aside time to sit down with an experienced estate planning attorney to talk about how their bonds, stocks, private equity and more are passed down to heirs. However, they frequently leave out their art collection and do not allow beneficiaries to have the appropriate information to have it valued and protected. 

The Art Basel, Miami Beach BS Study called ‘For the Love of Art’ showed that up to 87% of current art collectors intend to pass their collection down to their children, but nearly 60% have not told their heirs how to sell it, appraise it or manage it. The UBS study was part of a bigger research project, looking at more than 2,400 investors that had at least a million dollars in investable assets. For the purpose of the art collection study, 363 art collectors were evaluated.

Many children of art collectors do intend to keep the art that their parents pass down, up to 81%, in fact. However, less than half of those art collectors have even had their art appraised, which is a crucial step for protecting the valuable pieces now and well into the future.

Business Succession Planning Faces Major Opportunities in Coming Years

January 2, 2018

Filed under: Business Succession Planning — Neel Shah @ 9:15 am

Historically low interest rates have been a major catalyst for economic growth in the last several of years, but this has also led to a surge in private equity firms that are looking to invest in a broad range of small and medium sized businesses. 

This means that there is a once in a lifetime opportunity for the owners of these companies to become new millionaires and to raise their value significantly. Research collected by BizBuySell inside reports showed that a historic number of small businesses were sold in 2017’s third quarter.

This represented a 24% increase in the number of small businesses sold than the year before. Furthermore, Thomson Reuters shares that private equity funds generated more than $340 billion in 2016 and there has been a 12% increase in the number of private equity funds over the course of this year. Since the Federal Reserve may raise interest rates throughout 2018, now is the appropriate time to schedule a consultation with the business succession planning attorney to talk about the pros and cons of doing your planning now.

Most Commonly Overlooked Aspects of Elder Law

January 1, 2018

Filed under: Elder Law — Neel Shah @ 9:15 am

Planning ahead for elder law is just as important as considering your estate and your retirement planning. Unfortunately, despite the fact that elder law has become more popular and widely practiced by attorneys in recent years due to the number of people nearing and reaching retirement, elder law mistakes can still be made that can compromise the integrity of your estate plan and make things more difficult for you or your children.hire an elder law attorney to help you

Some of the most common failings in elder law planning include not addressing any of the following issue, such as:

  •   Transferring your assets to your beneficiaries in the manner and in the time frame you want.
  •   Protecting your assets from the cost of comprehensive long-term care and the qualifications for government benefits.
  •   Choosing trusted individuals who are able to manage your affairs if you are disabled.
  •   Keeping your assets in your own bloodline and protecting them from the future claims of creditors, lawsuits and divorce as associated with your children.

Furthermore, you will also need to consider the benefits of doing everything you can to avoid a guardianship proceeding. This can allow a judge to appoint someone else to step in and manage your affairs, if you are unable to do so and if you have not explained your desires for who is eligible to step-in in this case.

Do Teenagers Need Estate Plans?

December 29, 2017

Filed under: Estate Planning for Children — Neel Shah @ 9:15 am

An estate plan is something that most people think about as they near retirement or after they bring on a mortgage or have children. However, an estate plan can even benefit teenagers because turning 18 and heading off to the college means that that child is technically classified as an adult under the eyes of the law. Particularly true in light of social media and digital estate planning, Gen Xers and Millennials lead their lives online. teens can use estate planning, too

This means that a parent or another individual may need to know how to preserve the pictures or any writing that that person may have done on social media accounts. Answers to security questions in addition to passwords must be properly seared with an appointed individual. If a young adult does not feel comfortable sharing all of this information with a parent, such details can be given to an attorney who does the necessary estate planning with the condition that the materials associated with the security questions can be open upon death.

Powers of attorney and directives should also be drafted by someone who has reached age 18 because the issues surrounding sudden incapacitation or disability can affect anyone. Schedule a consultation with a knowledgeable estate planning lawyer today to learn more about protecting your interests.

Estate Planning Efficacy and The Impact of Dementia

December 28, 2017

Filed under: Long Term Care — Neel Shah @ 9:15 am

Unfortunately, the aging population in the United States is becoming increasingly affected by dementia. Furthermore, family members who are seeking assistance on behalf of their loved ones with dementia may be confused about how to proceed if they have never made a will before. Testamentary capacity is one of the most important components of the estate planning process for someone who has recently been diagnosed with dementia. hire a NJ lawyer for incapacity planning

A person who is in the more advanced stages of dementia may not be able to understand what they are signing or be able to explain what they wish to happen to their property. This means that the will could eventually be challenged when that person passes away. the sooner on in the dementia diagnosis that you can share these concerns directly with your loved one and begin to put together a plan of action for addressing the major concerns for his or her future, the better all of you will feel about the situation and the less likely it will be to face a contested will situation down the road.

It is never easy to deal with a major diagnosis in your family, particularly when you have estate planning intentions that you wish to carry out. Having a knowledgeable estate and elder law planning attorney who has managed these delicate situations before and who can give you proper guidance about your future is extremely helpful in this difficult situation.

Should Married Couples Have Separate Wills?

December 27, 2017

Filed under: Wills — Neel Shah @ 9:15 am

 

You and your spouse might have the same intentions for your future estate planning, but there’s plenty of good reason to set aside your own will for the purpose of protecting your loved ones. You need to ensure you have the right documents to protect your interests and plans. hire a lawyer in NJ for your individual will

When putting together a will for a husband and a wife, your estate planning attorney will probably recommend that each person has their own will. Although a married couple may reference a will as a joint document, the word will in the New Jersey probate code is usually used in the singular tense to refer to the last will and testament of a woman or a man. Establishing an individual will is extremely important particularly as your life circumstances change.

Although there is history for joint wills in New Jersey, it is not entirely clear how this would work unless both parties passed away the same time, such as in an accident. Because of this, you may wish to articulate similar goals as your spouse in your own individual will but it is powerful and preferred that you have your own estate planning document. You and your spouse can sit down and discuss the goals that you intend to accomplish and putting together a last will and testament together.

What U.S. Citizens Living Abroad Should Know About Asset Transfers

December 26, 2017

Filed under: Asset Protection Planning — Neel Shah @ 9:15 am

In the process of international estate and trust planning, there are many different details that need to be addressed to maximize the financial health of families that have connections to overseas countries and the United States, and to minimize the potential tax implications. tips for Americans living abroad taxes

There are many concerns that will become more prominent in the coming years about proper succession planning and the transfer of wealth for U.S. citizens living abroad.

Many of these individuals have a concern about reducing their estate tax liability upon the death of the U.S. citizen wherever possible. Succession planning strategies that are implemented to minimize or reduce estate tax obligations should be carefully crafted so as not to trigger adverse tax consequences down the road. Scheduling a consultation with an experienced estate planning lawyer is the only way to know for sure that you have considered all potential obstacles and issues in your individual plan to minimize tax obligations.

The right attorney can be a significant asset as you raise questions and ensure that your plan comprehensively addresses all of your primary concerns. Schedule a consultation with an estate planning lawyer today to learn more.

New Study Shows That Younger Caregivers Face Challenges

December 21, 2017

Filed under: Baby Boomer Generation — Neel Shah @ 9:15 am

Many adult children are now looking to step in and help their elderly loved ones with managing illness or disability. This requires a lot of adjustment, not just on the part of the caregiver but on the part of the person receiving support as well. caregivers face new challenges

A family member who needs support may cause sudden and long-lasting impacts on your family, dealing with the implications of such an illness and what it means for the future as well as adjustments in your career.

In an ideal situation, your loved ones would be able to get care from a nursing home or similar facility. However, with the average cost being extremely high, it could decimate someone’s savings with just one stay of a few months long in such a place. Furthermore, family members are often interested, at least in the beginning, in stepping in to help support your needs.

Caregivers often have very little training when it is a family member stepping in and this highlights why it is so important to explore all possible care options and stipulate a plan for long term care.

Given how many people are likely to suffer long term care challenges in the future, it is beneficial to schedule a consultation directly with an estate planning attorney to make things easier for your loved ones as well as you.   

 

Estate Planning and the Opioid Crisis

December 20, 2017

Filed under: Asset Protection Planning — Neel Shah @ 9:15 am

 

The opioid crisis has significantly affected many families across the country. The growing epidemic of addiction is also changing the need for estate planning. Addiction statistics show that more than 142 Americans die each day from a drug overdose. It’s also anticipated that more than 650,000 people will die over the next decade from opioid overdoses. estate planning and opioids

A family member suffering from addiction can generate unique concerns about estate and wealth planning. Estate planning professionals have for decades focused on tax planning- a valuable approach. 

However, a lot of tax exposure has been eliminated in recent years, although an addict can put unimaginable financial and emotional strain on a family. If you are concerned about someone who is addicted to opioids in your family, they may be exhibiting unpredictable or violent behavior, and this can lead to further conflict within the family.

Estate planning options for someone who appears to be addicted to opioids could include:

  •   An outright bequest
  •   A disinheritance
  •   Distribution of funds to siblings for the benefit of the beneficiary addicted
  •   Trust planning

The addicted beneficiary should be given an opportunity to review any trust and then funding should be completed after the beneficiary signs the document.

These complex issues highlight why it is so important to hire an experienced attorney who will be sensitive to your individual needs and protect your family and loved ones well into the future. The right lawyer is a major asset when putting together the paperwork for your claim.

The Value of Leaving a Structured Plan Behind for Your Children

December 19, 2017

Filed under: Asset Protection — Neel Shah @ 9:15 am

 

Far too many people put off the estate planning process for way too long and end up leaving behind a mess for their children. This can be literally, legally or financially.

The literal type of mess is the cluttered house, when the adult child must step in to clean out a house of things that have been accumulated after a parent passes away. However, the legal and financial mess may be associated with neglecting to put together a comprehensive elder law and estate plan in the event disability or death. Many times, when a loved one suffers a devastating disability or accident that ultimately claimed their life, this was unexpected. use an estate plan for your family's future

Failing to do the necessary preparation to make it easier for your loved ones to take quick action can put them in a very difficult situation. Many people want their spouse, followed by their children to take over in the event of a disability.

But children or a spouse may be barred from doing so without the proper power of attorney and living will. These are also referred to as advanced directives and enable you to put other people in charge in your life and avoid the hassle of a guardianship proceeding in which a judge makes a decision about your legal guardian.

When you consider how many issues are affected by your willingness to plan ahead, you can make things much easier for your loved ones by stipulating an estate and elder law plan now that considers your needs as well as their future.

Making A Meaningful Gift to Your Child’s College Savings Fund

December 18, 2017

Filed under: College Planning — Neel Shah @ 9:15 am

Passing things on to future generations is a common concern for many people interested in protecting their loved ones, but for a meaningful gift this holiday season, you might choose to establish an estate plan or contribute to a child’s 529 college savings accountplan for college education

When you are thinking about the future of your loved ones, it’s always helpful to have an estate planning attorney at your side.

Doing so with the assistance of an experienced estate planning attorney can help you pass on a gift that helps your loved one in the future to pursue his or her educational dreams. Education is the cornerstone of planning ahead for minor children and your thoughtful care to put together an estate planning tool that protects your loved one’s right to pursue education without having to worry about the burden of costs, can have positive impacts for generations to come.

Education is often very important to numerous family members and the selection of a 529 College Savings Plan or other estate planning tools that can allow your loved one to pursue education without fear of the high costs is a very valuable gift and one that will be treasured for years to come. Furthermore, college savings plans may offer you numerous estate and gift tax benefits. Consulting with a lawyer can tell you more about how this can affect you.

Top End of Life Documents You May Need

December 14, 2017

Filed under: Elder Law — Neel Shah @ 9:15 am

 

Most people already know that their last will and testament is the cornerstone of their financial and estate plan. However, many consumers don’t have this critical document in place. A 2014 American Journal of Preventive Medicine study found that up to three-quarters of Americans don’t even have a health care proxy, an advanced directive or a living will. plan ahead for end of life care

That’s in addition to only 42% of the population having a will. A well thought out will is one of the most important preparations to put in place as you age, but there are other estate planning and end of life documents that should be considered.

Your unique situation will determine which of these strategies and tools is most important for you and sitting down with an estate planning lawyer is one way to identify what will work for you as well as what you need to protect your best interests. These documents include:

  •      A living will
  •      Health care proxy or power of attorney for health care
  •      DNR – DNI orders
  •      Durable power of attorney
  •      Organ donor designation
  •      Diminishing capacity letters
  •      Life insurance
  •      Digital assets memorandum
  •      Personal property memorandum
  •      Relevant information collection

Make sure that when you spend all of the time to put together necessary documents to protect your assets and to articulate your end of life wishes, that you provide information for your loved ones or at least your attorney to access this. In a heat of the moment and in the midst of a crisis, it can be challenging for your loved ones to figure out where you have stored such information, but an experienced attorney can be one method for protecting your interests and your rights.  

 

Elder Fraud on The Rise-Up To $36 Billion

December 13, 2017

Filed under: Elder Safety — Neel Shah @ 9:15 am

A recent study found that three out of ten state securities regulators have seen an increase in elder fraud complaints and cases. Many people are under the impression that it is only cognitively affected older individuals who are at risk for financial scams. However, one out of every 18 cognitively intact elderly people can fall prey to financial abuse or fraud in a given study. avoid elder scams

One 2015 report estimated that more than $36 billion is lost every single year to financial abuse and scams. That problem is increasing and older adults who are experiencing a decline in their cognitive abilities are only a part of the overall story. The population that is currently retiring is one of the wealthiest in recent history, in terms of their retirement savings and criminals know this and will target these elderly individuals to exploit them.

Seniors can also be more vulnerable. This makes it especially important to have assets protected with an asset protection plan and an estate plan. These tools should be updated at least on an annual basis to reflect any changes in your life. Consulting with an estate planning attorney can help you avoid many of the most common financial scams and abuse and to figure out a long terms strategy to protect the assets you have worked so hard to build.

If you are concerned about an elderly loved one who may be subject to financial scam and abuse, working with an estate planning attorney to protect those assets inside a trust can help your loved have peace of mind that they will have the funds they need to get through retirement and old age without a high chance of scams.

Do You Have to Update Estate Planning Documents When You Move?

December 12, 2017

Filed under: Estate Planning — Neel Shah @ 9:15 am

Most people looking ahead to retirement are at least considering moving to another state, if only to be closer to family, maximize their retirement dollars or enjoy better weather. But you need to remember that when you establish estate planning documents in one state, the rules of another state could influence how they are managed. when you move, meet with an estate planning lawyer

Contracts are usually managed the same way and are usually consider effective in any state. One type of contract that this applies to is a living trust. A living trust is one in which you generate, create and control the trust and enter into an agreement with a trustee, who manages those assets for you on behalf of the beneficiary.

Then the beneficiary would receive those trust assets, how and when you choose. Typically, a trust is portable throughout the entire United States and you can identify which state laws you’d like to govern your trust. You can move to another state and not have to change your trust. However, your other estate planning documents like your will, your health care power of attorney and financial power of attorney may need to be updated when you move to a new state.

The drafting of estate plans can be accomplished by consulting with an experienced estate planning attorney as you move to a new state. Bring a copy of all of your relevant estate planning documents and strategies to discuss whether or not these are portable or whether they will be interpreted differently in your new state of residence.

Your home state documents may not offer all of the options that are available in your new residential state and the only way to figure out what is going to work best for you is to schedule a consultation with an estate planning attorney who can walk you through what is required as well as involved.

Proper Buckets for Your Retirement Planning & Estate Planning

December 11, 2017

Filed under: Asset Protection — Neel Shah @ 9:15 am

The composition of your retirement portfolio affects your ability to support your lifestyle after you retire as well as what you can give away to loved ones.

Many financial managers have recently found that retirees’ assets are in pre-tax accounts, also known as qualified plans. However, this has an additional consequence when it’s time to make withdrawals to cover your living expenses. You would need to pull out additional funds to cover the tax bill that comes with it. have a complex retirement strategy

Using a bucket strategy when planning for retirement can help to address this problem. A short-term bucket that has up to five years of retirement needs should be tapped without a major taxable event.

The second bucket should be filled with long-term fixed-income assets and after-tax equity. This bucket could be very important for generating taxable events, given the appreciation of assets. However, if the principle is all after tax dollars, this burden is reduced. The third bucket should be filled with 401(k), pre-tax retirement accounts, and traditional IRA accounts.

These are all subject to RMD rules that begin at age 70 and half and the distributions are taxed at ordinary income rates. The ratio of assets in your third and second buckets is determined by whether or not you have already saved enough to achieve your lifestyle goals in retirement. If you have more resources than you expect to need for your retirement goals, the pre-tax assets might be higher and you should consult directly with an experienced estate planning lawyer to talk about how you will pass on these assets to your loved ones in the future.

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