Monroe Township NJ Estate Planning and Elder Law Attorney Blog | Neel Shah - Part 2
Website Home Contact Us Blog Archives Blog Home

Interesting Image
 
 
 

Would you like more information on:

 
 
 
Schedule a Phone Call
to discuss your planning needs!
Click to Schedule an Appointment







Website Home


Topics



Archives


Contact Information

Forsgate Commons
241 Forsgate Drive
Monroe, NJ 08831
PH: (732)521-WILL (9455)
FX: (732)521-1204
Info@LawEsq.net
www.LawEsq.net






Do I Need Both a Living Will and a Healthcare Power of Attorney?

August 22, 2017

Filed under: Advanced Directives — Neel Shah @ 9:15 am

When it comes to estate planning, it’s hard to know what documents you need versus those that are not necessary for your individual situation. The only way to know for sure is to schedule a meeting with an estate planning lawyer directly. That way you can share your interests and desires and the lawyer can help you pick the documents necessary for protecting your future and your intentions for your assets. Two of the documents you might discuss during this meeting are the healthcare power of attorney and a living will. power of attorney

It is strongly recommended that any person have both a health care representative appointment and an advanced medical directive. These documents do not accomplish the same goals. While they may overlap in some of the responsibilities outlined in the documents, they offer different benefits. There are two primary types of advanced medical directives and these deal with end of life decisions.

Although the living will is the most common, some states do allow for the life-prolonging procedure declaration. Advanced medical directives allow you as the creator to provide clear guidance about how life decisions should be handled and what types of care should be provided to you or avoided. This allows you to tell both your doctors and your family members what kind of care you do want at the end of your life. A healthcare power of attorney, however, can be part of a representative appointment or the same goals can be included in a durable power of attorney. Both of these enable someone else to make medical decisions for you in the event that you cannot make them on your own. This includes all medical care decisions regarding end of life. Consulting with an experienced estate planning attorney is strongly recommended if you have a goal of establishing these concerns early on.

Legal Documents You Can Use to Empower Someone Else to Make Decisions for You

August 21, 2017

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

There are many different legal documents that may become an important component of your estate plan. In the event that you become incapacitated, your investments must still be managed, your bills must still be made and other financial issues must be dealt with. A durable power of attorney is a document that helps to ensure that if you were to become incapacitated, there is someone to manage your finances. This person serves as your agent and he or she will be able to deposit, write checks and withdraw money from the accounts on your behalf as well to speak with your financial advisors. Ensure that you name a financial agent as someone who you can trust who will act in your best financial interests. A power of attorney is different from a durable power of attorney. legal documents for estate planning

A durable power of attorney can be problematic because many real estate title companies or financial institutions are hesitant about using them because they are not sure whether or not it is the most recent version of the power of attorney. Your general power of attorney ceases to become valid legally as soon as you become incapacitated. However, find out the criteria associated with real estate title companies and your financial institutions before putting together a power of attorney. The companies that manage your retirement accounts might have their own power of attorney forms or other requirements that you need to follow in order to comply. If they do have necessary documents, make sure you use theirs and share this information with your estate planning lawyer.

Some people identify the problems with the power of attorney documents and chose to set up a revocable living trust instead. This can act like a super power of attorney because financial institutions such as banks are legally required to comply with their terms. A revocable living trust tends to be most appropriate for estates that are worth more than $1 million. Transferring assets into the trust and designating yourself as the trustee is the typical course of action followed by people using revocable living trust for estate planning purposes. Contact a knowledgeable estate planning lawyer to learn more about how this can benefit you.

                                                                                                                

Long Term Care and Longevity: Will We Get Overwhelmed?

August 17, 2017

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

Most people know about the potential impact of costs tied to long-term care, but they haven’t taken time to protect themselves.

Long-term care costs could become overwhelming as a result of longevity. The number of individuals turning age 65 and older is set to double by 2060, by the time that today’s Millennials start to turn 65. They will also make up 24% of the population as compared with 15% today. That means that 1 in 4 individuals will be in an older age category at high risk of needing long-term care.  long term care costs

This is the result of data collected by a study referred to as Aging in the United States. The number of older individuals in the U.S. right now places a major burden on breadwinners in their productive years, but by 2030, there will only be approximately 2.8 adults of working age for every individual age 65 and older. This is a decrease from 5 in 2000.

Today’s working age citizens will be hit by a double whammy trying to build their own economic future and the economy. Data from aging parents shows that approximately 3 out of every 4 aging Americans will need some type of long-term care after age 65. The odds of a financial impact for any working couple with two sets of parents is extremely high if any of those parents does not have the resources for their own care. Long-term care services can be extremely expensive, costing between $100,000 or $200,000 per year, depending on the type of claim services and the location.

When multiple family members involved need long-term care, the cost can become extremely prohibitive, but these financial impacts extend beyond the cost of care. It can also lead to interrupted employment if one partner has to take time off work in order to care for an aging parent.

Retirement Being Redefined By Lack of Confidence for Baby Boomers

August 16, 2017

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

Baby boomers make up a significant portion of the population today, and as many of them are confronting retirement and realizing they do not have appropriate support behind them, this is redefining what it means to retire. There are approximately 76 million Baby Boomers coping with the impacts of the financial crisis as they prepare for or enter retirement. retirement and lack of confidence

The financial crisis decreased the value of their homes, and it cut into their net worth and savings. This means that the confidence carried out by baby boomers in achieving a satisfying retirement decreased significantly. Those are the results of a study commissioned by Bankers Life Center for a Secure Retirement. Less than 4 out of every 10 baby boomers are certain that they will be able to have a personally satisfying retirement. The study looks at how lack of confidence has changed the attitudes and behaviors regarding saving and investing, and how many of them are adapting to meet the new challenges.

Approximately 28% of Boomers are making more conservative investments, and 26% report that they no longer invest due to having weathered the most recent crisis. The Boomers who were surveyed also have decreased their expectations for complete financial independence in retirement. This study indicates that

-Only 19% expect to pay off their mortgage.

-34% expect to retire free of debt.

-16% believe they will have an inheritance to pass on to heirs.

-16% expect to have savings.

The percentage of Baby Boomers who expect to work part-time or full-time in retirement has increased from one-third to almost one-half since before the crisis. The new retirement often means working longer and reconsidering the amount of money they will need to support themselves in retirement.

If you have questions about how retirement planning and estate planning can work together, schedule a consultation with an experienced estate planning lawyer. A lawyer can walk you through how these issues often intersect, and the appropriate strategies and tactics you can use to protect yourself now and well into the future. With a lot on the line for your retirement, as well as your ability to pass on assets to your loved ones, taking action sooner rather than later is strongly recommended.

Five Things You Can Accomplish with Estate Planning for Your Children

August 15, 2017

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

 

Your children are probably some of the most important people in your life. Parents spend a lot of time worrying about and thinking about their children’s future. estate planning for your children's sake

Spending time with your children over the summer holidays can reignite concerns about what will happen to them after you pass away. This is a natural inclination that may even prompt you to schedule a meeting with an estate planning attorney. Although estate planning certainly has individual benefits for the person putting together the materials, it also has many advantages associated with your children or your grandchildren. There are five primary ways that properly structuring your estate plan and consulting with a knowledgeable attorney can assist you. These include:

  • Protecting benefits for a disabled child.
  • Protecting the inheritance that you leave behind for children.
  • Ensuring future vacations at the family vacation home.
  • Assisting adult children with health care decisions.
  • Providing for someone to step in and care for your minor children in the event that you pass away.

All of these crucial issues can be addressed typically in one or a series of meetings with the right estate planning lawyer. Many people put off the prospect of estate planning because they assume that they do not need it or that it is too time consuming or expensive. However, scheduling a consultation now will give you an overview of all of the different things that can be accomplished with the right lawyer.

DIY Dangers

August 14, 2017

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

You know you need to set up a will and perhaps a trust, too. A Google search reveals a broad range of websites that promise to help you do just that either for free or a minimal cost. Pointing and clicking, though, is a dangerous approach to take with your estate planning. NJ estate planning lawyer

Using an online site to put together estate planning documents like a power of attorney, a trust or will is appealing if you think that you might not be able to afford to shell out a few hundred dollars for an estate planning lawyer, or in situations in which you need the paperwork settled quickly. However, there can be major risks associated with doing this, particularly if you have an issue that requires legal oversight like caring for a special needs child to protect him or her being cut off from government benefits, or if your financial situation is complex.

If you have an uncomplicated estate, it’s still a good idea to schedule a consultation with an experienced estate planning attorney because you can get further insight about how relevant laws and regulations affect you as well as further strategies that can help to protect you and carry out your wishes. With so many things that must be accomplished and even the most basic of estate planning documents, it can be a mistake to assume that a generic form is capable of capturing all of the information you will need to have your wishes carried out once you pass away.

Far too many people never even realize the negative impacts of failing to take action because their family members will be the ones sorting out conflicts and unresolved issues after the loved one passes away. Do your family a favor and schedule a consultation with an experienced estate planning attorney so that you can learn more about the benefits provided by estate planning.

What You Need to Know About Medicaid And Estate Recovery in New Jersey

August 10, 2017

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

Knowing your rights as it relates to Medicaid can be extremely important if you intend to qualify for this government program. Federal Medicaid regulations mandate that a state obtain reimbursement from an individual’s estate for the cost of long term nursing facility services, as it relates to Medicaid. Medicaid recovery

The service may put a lien against a person’s personal or real property by a New Jersey Medicaid program as a way to secure reimbursement for services. In New Jersey, this Medicaid program carries out two types of Medicaid liens. The first is a pre-death lien placed on a person’s property prior to death.

An estate recovery or a post-death lien is filed after the death of the recipient. After an individual enters into the Medicaid program and is classified as permanently institutionalized, a lien is filed against a property to prevent assets from being transferred out avoid a Medicaid lien. This can have significant implications for your estate planning process and for that reason, should be discussed directly with a knowledgeable lawyer as soon as possible.

The Dangers of Planning for Your Estate After a Crisis Hits

August 9, 2017

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

Estate planning is always important, but most people are uncomfortable looking towards a future and considering the possibility of incapacity or death.

Waiting too long to consider asset protection, estate planning or business succession planning could expose you to major risks. Although there are still steps that can be taken to minimize the outcome of these problems after a crisis has struck, it is far better to do the diligence ahead of time to plan for a potential problem. Being caught in the midst of a legal conflict or a complicated issue can generate a great deal of stress and unnecessary confusion. a crisis and estate planning

Handling these issues well in advance by sitting down and talking them over with an experienced lawyer can help you identify where your estate is currently exposed to risk or jeopardy. Waiting too long to put together an estate plan or articulating how you intend for your business to be transferred to another person, for example, could make it difficult if you are suddenly incapacitated.

If you were unable to speak for yourself and these decisions had to be made, this could generate conflict within your family. It is far better to schedule time to consult with a lawyer about your own intentions so that your beneficiaries are empowered should something suddenly happen and so that you minimize the chances of confusion or conflict.

Five Things You Need to Know About Inherited Retirement Accounts

August 8, 2017

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

Almost everyone has some type of retirement account, whether it’s a pension, IRA, or 401(k). So, it’s important to plan ahead for your estate purposes. One of the first things to know about a retirement account is that your beneficiaries will most likely owe taxes on the retirement accounts passed down to them. IRAs and future planning

Assets like real estate, non-retirement investment accounts, vehicles and life insurance are not counted as income when they are inherited. However, retirement accounts are classified as income in respect of a decedent. The second thing to know is that not all retirement accounts are treated in a similar fashion. A beneficiary who left behind an employer sponsored plan like a pension or a 401(k) will be subjected to more requirements and limitations than IRAs.

Many people will name their spouse as their primary beneficiary, but the third thing to know about retirement accounts is that it doesn’t provide any level of protection or preservation for the inherited accounts. Make sure that your broader estate planning objectives match the beneficiary designations.

The fourth thing to know about retirement accounts is that there is an increased level of flexibility and protection afforded by passing a retirement account to your beneficiaries via a trust. However, retirement trusts have to be drafted appropriately by an experienced estate planning attorney because of the income tax treatment of inherited retirement accounts. Bear in mind that without significant planning, the funds could be subject to the claim of any beneficiary’s judgment, creditors, or bankruptcy. Consulting with an experienced estate planning attorney is one way to avoid these negative consequences.

The Great Debate Over Medicaid

August 7, 2017

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

Many people hope that they will never be disabled or poor, however, the biggest myth that many people are countering today that they will be able to pay for themselves in their old age. A majority of people are actually not able to do this. One in three individuals who turn 65 will end up in a nursing home at some point over the course of their lives and research from the Kaiser Family Foundation shows that 62% of them cannot pay the bill on their own. sparks fly in the Medicaid debate

When you run out of assets, Medicaid steps in to pay. The Medicaid program could have hundreds of billions of dollars less to spend, however, if the current Medicaid debate in Washington leads to significant cuts. The average annual cost of a nursing home for a semi-private room is $82,000, according to Genworth Financial. Most people cannot afford to pay that amount and certainly not for a long period of time, particularly if they have already spent a good portion of their retirement for the 10 or 20 years prior. If a spouse has already needed years of expensive care, then the other partner is even more vulnerable.

Talking to an experienced estate planning lawyer about your options for planning for Medicaid is extremely important. It is a responsibility to do your planning and it’s not unethical to look ahead towards how to qualify for Medicaid legally. Medicaid is a complicated program fraught with rules and regulations, which is why you need an estate planning or elder law attorney who knows the landscape and can help walk you through these issues up front.

Should You Use a Fiduciary for A Trustee?

August 3, 2017

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

 

A fiduciary is someone with a moral as well as a legal obligation to put their client’s interests first. Not every adviser would consider themselves to be a fiduciary and this could leave that person open to conflicts of interest. A new fiduciary role, however, requires that all advisors who work with retirement plans or provide any type of retirement and planning advice consider themselves fiduciaries, but other financial advisors may or may not act as strictly as fiduciaries. The best way to know for sure is to ask to your advisor.

Make sure that when selecting a trustee, you choose someone with the right kind of knowledge. Your trustee will most likely have to make serious decisions about how to manage the assets within your trust and they will need to have the appropriate background to make educated decisions. Ideally, they will have both an investment and a tax background and other types of experience may be required based on the types of assets within your estate.

If you have a small business as part of your estate, for example, you will want a trustee with business management experience. Consulting with a knowledgeable attorney to discuss the various benefits of moving forward with choosing a trustee is wise. Make sure that the individual that you select is well aware of his or her responsibilities, is capable of carrying them out and is comfortable doing so.

Thinking About Using Your IRA to Pay for A College Student’s Tuition? Make Sure You Evaluate Your Options First

August 2, 2017

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

Approaching the overwhelming cost of college is a challenge that many parents are thinking about this summer as they are preparing to send off their new graduates to college. With the cost of graduate school as well as college on the rise, many prospective students and parents are looking towards retirement accounts as an effective way to pay for school.

According to a recent study conducted by Sally May & IPSOS, up to 6% of parents withdrew from their retirement savings such as an IRA or a 401(k) to help pay for a child’s college. Since the price of college has gone up, it may the case that parents do not have enough set aside to pay for college. There are some considerations to evaluate before using an IRA to pay for school:

  •       Withdrawals prior to age 59 and a half can lead to a 10% penalty except in situations like putting down a payment on a first home or higher education expenses. The expenses have to be for a child, grandchild, a spouse or yourself. When withdrawing from an IRA, a student or a parent can pay for tuition, books or other qualified education expenses with no penalty.
  •       There are major differences between using a traditional IRA and a Roth IRA for higher education costs. The best approach is to use a Roth IRA to pull out without a 10% early withdrawal penalty.
  •       You can roll a 401(k) into an IRA to pay for educational expenses.

A withdrawal from an IRA can impact financial aid. Students who apply for need based financial aid have to report asset information and income on the free application for federal student aid. Money inside a retirement account such as a traditional or a Roth IRA are assets that are exempted from being evaluated on the FAFSA, but withdrawing funds from an IRA account does count as income over the following years.

Does It Make Sense to Move College Savings Out of A UTMA Account and Into A 529 Plan?

August 1, 2017

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

 

Many people who have been saving for their children’s college education over the past couple of decades since the children were born will have set up a Uniform Transfer to Minor Act. Some financial aid documents may illustrate that it could be beneficial for the assets to instead be in a section 529 plan rather than in a custodial UTMA account. Student assets are assessed more heavily in the purposes of determining financial aid from the government perspective. 

Many of the assets owned by the parent are sheltered on the FAFSA. For example, life insurance policies, the net worth on the principle place of residence, small businesses owned and controlled by the family and life insurance policies, all do not have to be reported on the Free Application for Federal Student Aid. An age-based asset protection allowance also allows the parents to shelter up to $50,000 in assets. Student assets, however, do not have an asset protection allowance and can be assessed at the flat rate of 20%. Each $10,000 that has been set aside in the student’s name will increase the expected family contribution by approximately $2000.

On the FAFSA, a student is responsible for reporting the custodial UTMA account. A 529 college savings plan, however, is reported as a parent’s asset on the FAFSA, even if the account has the student’s name on it and it is owned by the student. The favorable treatment of 529 college plans became effective relatively recently in 2009. You may be eligible to transfer money from a UTMA or other custodial account to a 529 savings plan.

You will need to set up a custodial 529 college savings plan account since the money will be transferred from a UTMA account to begin with. When the child reaches the age of trust termination, which is usually 18 or 21 depending on the state, he or she officially becomes the owner of the section 529 plan. Talking to an experienced estate planning lawyer is strongly recommended if you are interested in these plans.

The Benefits of a Revocable Living Trust

July 31, 2017

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

Many estate planning tools provide numerous benefits for a broad range of individuals. Believing that estate planning is only for the wealthy or only for those approaching retirement and beyond can be a big mistake. One of the most flexible and powerful tools associated with estate planning is known as the revocable living trust. It should always be set up by an experienced attorney.  

The basic purpose of any trust is to allow one responsible individual or a firm to manage the assets of someone else. The settlor may also be referred to as the grantor, donor or trustor. This is the person with the assets. The trustee then becomes responsible for those assets and acts on behalf of those receiving the assets. If you don’t want someone knowing the full details behind your assets and your worth, a trust can help to keep this confidential. When a settlor passes away, you can structure it such that all of your assets will transfer over to the trust.

This is why all assets should be in the name of the trust while the settlor is still alive. However, you might use an additional tool called a pour over will, that means these will eventually end up in the trust. A revocable living trust provides a great deal of flexibility because it can be changed over the course of your life.

This is in direct contrast to an irrevocable living trust, which is established once and cannot be changed over the course of your life. Knowing the different tools available to you and how to use a revocable living trust goes a long way in explaining how your future beneficiary will be able to receive assets. Talk to an experienced estate planning lawyer today to learn more.

Is Estate Planning Only for Your Finances?

July 27, 2017

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

Many people think that financial benefits are the only ones obtained by planning. Although the most obvious benefits of your estate plan are financial in nature, there are many other nonfinancial benefits as well. Identifying a guardian to serve for pets or for children or even protecting non-traditional assets like a stamp or gun collection can additionally be accomplished through the estate planning process. Talking things through with a lawyer can help you uncover all the advantages of a complete estate planning process. Estate Planning Tools

Another major reason that people schedule a consultation with an estate planning attorney to begin with is because of a concern over privacy. Establishing a trust gives a layer of privacy to someone who wants to accomplish estate planning without it becoming a matter of public record. An estate also has one other major non-financial benefit and that is peace of mind. All of the numerous what-if scenarios that through the mind of a person putting together an estate can be overwhelming, but sitting down and discussing these directly with a knowledgeable attorney can help to clarify your position and articulate your goals clearly in valid legal documents. While you can reap a lot of financial benefits through the estate planning process, there are many others that can be obtained, too.

Are you ready to ensure your existing documents meet your goals? It’s time to schedule a consultation.

The right attorney can make a big difference when contemplating the financial and non-financial benefits of estate planning. Do not hesitate to schedule a consultation with a New Jersey estate planning lawyer today.

What You Need to Keep in Mind After Selling Your Business

July 26, 2017

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

The process of preparing a business succession plan is only half of the battle. Knowing what you intend to do after you sell your business is just as important. You need to call in professional help to manage the proceeds of a major business sale and you may also need to be prepared to know what to ask these professional advisers. NJ business succession planning lawyer

Many family business owners have common concerns after selling their life’s work because they have a substantial sum of money as well as a paralysis over what to do next. Any person who comes into significant wealth such as through selling a business must consider three different factors when determining the right advisers to serve on your dream team. These include:

  • Experience and education.
  • The get out plan or stop loss strategy when the market falls.
  • A team of specialists.
  • Your financial planner must have soft skills in addition to technical ones.

There are many different emotional decisions surrounding what you will do with your life after you have sold a business. Having experienced professionals to guide you through this process and to answer your questions after you have sold your company can be extremely beneficial for anyone who needs advice about how to manage this money and how to plan for it from an estate planning perspective. Consult with a knowledgeable New Jersey estate planning lawyer today.

Adjusting Your Assets for Medicaid?

July 25, 2017

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

Planning ahead for Medicaid is an obvious step that most people in retirement contemplate at least once. Don’t fall for the assumption that Medicare and Medicaid will automatically cover all your expenses if you suddenly find yourself in need of long-term care. advanced Medicaid planning attorney

Medicare only covers certain expenses and Medicaid kicks in only once you have limited assets. If you’re new to the planning process, it might seem like the right choice is to give away as many of your assets as you can in order to meet Medicaid requirements, but doing this without the help of an estate planning and elder lawyer could be a mistake. Making gifts to someone for the purposes of spending down your assets within five years of applying for Medicaid looks like an attempt to skirt requirements and can lead to penalties for a person applying.

That’s why any advance planning for Medicaid should be done with the help of a lawyer. The good news is that there are legal and accepted ways in which to spend down your assets, but you need a long-term plan and the insight of someone who understands the Medicaid landscape. Trusts, long-term care insurance, and annuity purchases are just a few of the ways that you can legally add diversity to your estate plan and keep an eye towards qualifying for Medicaid in the future. It’s important to check references for anyone you’re planning to work with for Medicaid purposes.

Given the complexity of the rules and regulations and the fact that some dubious individuals in the market try to sell a broad-range of confusing products to the growing baby boomer population, doing your research and making sure the professional you choose to work with. Verifying his or her credentials and asking for references from former clients is a great way to find out if the person you’ve chosen to work with is reputable and the right fit for your needs.

Since long-term care expenses can put a significant dent in your assets, Medicaid planning in advance is well worth it. Talk to an experienced lawyer to learn more.

Retirement Saving Is Going Digital

July 20, 2017

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

There is a good chance that you’ve probably been sorting away most of your retirement funds in a traditional account, however, digital capability in millennials may be the key to making changes in how retirement savings occur. If you are looking to boost retirement assets, millennials have a larger share of the available market and more are willing to move to find different advisors, while older consumers tend to have more money and they are less likely to change. retirement planning

A recent 2017 Future of Advice study identified that millennials between the ages of 18 and 34 have $1.5 trillion in total retirement assets, compared to the $22.5 trillion held in retirement by consumers aged 35 and above.

Retirement is a major priority for millennials. Consulting with a retirement planning professional in conjunction with the estate planner that you use to help draft all of your legal documents for what happens if you were to become incapacitated and what happens to your belongings after you pass away is a good idea.

Even if you feel late to the retirement game or are concerned about the best way to make your retirement investments last over the course your older years, being knowledgeable and engaging with these materials on a regular basis can help to benefit you. Do not hesitate to schedule a consultation with an experienced estate planning lawyer to talk more about how your retirement savings may become an important component of how you live your life and pass things on to your future generations.

Effectively Shopping for Long Term Care Services

July 19, 2017

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

 

Unfortunately, there is a huge disconnect across America about who will be paying for long term care and the total cost. There are several common alternatives to paying for long term care insurance to assist you. These include:

  • Low or no cost, in which your friends, family or spouse pitches in to take care of you, if they are able to and willing to do so. The time involved each day will vary widely, but many other family members and spouses may have to reduce their work schedule or quit their job entirely in order to assist you.
  • Low or medium cost. Personal care assistance, home health aides and companions can come to your house regularly to assist you with what you need. Genworth’s 2016 Cost of Care survey identified that the median rate in 2016 was a $125 for licensed homemaker services. The median daily rate for an adult day care facility is $68 so this can plough through your retirement savings quiet quickly.
  • High Cost. The most expensive option for a loved one who needs assistance is placing him or her in an assisted living facility or a nursing home. The median monthly rate for an assisted living facility according to the Genworth survey was $3628.

long term care planning NJ

Looking at the low-cost alternatives and the time to figure out what will work most for your individual family members is strongly recommended. However, it can be extremely expensive to try to figure out the best opportunities for your loved ones. Talking to an estate planning lawyer can help you to identify whether Medicaid and other options are available to you and how to plan for them appropriately.

Is It Possible to Be Too Early in Drafting Up a Will?

July 18, 2017

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

Is someone age 18 too young for a will or other estate planning documents? You might think so initially, but having a plan is always beneficial, particularly if you have special plans for your belongings or assets. In conjunction with a will, other tools like a power of attorney can even help a college student facing a medical issue. Once someone becomes an adult in the legal sense, scheduling a meeting with an estate planning lawyer makes sense just in case.

Putting together crucial estate planning documents is all too easy to ignore. In fact, most people skip the step of having an estate plan at all and don’t even have a basic will that articulates what they want to happen their possessions when they pass away. With no wills, some of the negative consequences that your family members may face include little to no direction, prompting conflicts and litigation costs, leaving children who have no assigned guardian and paying more in attorney fees, costs and taxes.

In addition to putting together a will, you may also want to list a document that explains what you want to happen to your remains, a financial power of attorney, create a willand a health care power of attorney. Individuals with more assets might also want to consider the most basic form of a trust and can accomplish this by consulting with an attorney. There are many different aspects involved in the estate planning process, but it’s important to remember that any person of any age and of any asset amount should consider the benefits of estate planning and consult with an attorney sooner rather than later. Failing to take these necessary steps could put your family members in a difficult situation in the future.

« Newer PostsOlder Posts »