Neel Shah | Shah & Associates, P.C. Estate Planning & Elder Law Blog

November 16, 2016November 16, 2016

Why You Need an Estate Planning System

Once and done is a common rallying cry for online sites that promise you a template-generated will. However, it’s a big mistake to look at your estate planning in that manner. You could end up creating more hassle for yourself and for loved ones. There are many more advantages associated with an estate planning system, one that’s aligned with your individual needs and dreams.

An estate planning system can be crafted with the help of an experienced lawyer. Working with a lawyer gives you the best possible chance to protect yourself and have the peace of mind that all aspects of your incapacity and after-death planning have been accomplished. Setting up a meeting once gets the ball rolling, but it’s your responsibility to follow-up at least on an annual basis to make sure your estate planning is in line with any life or policy changes.

Some of the most important aspects of an estate planning system include:

Peace of mind for a business owner to control his or her wealth/business for as long as they desire or live
Treat all children fairly in the passing down of assets
Ensure that an individual and his/her spouse have considered incapacity issues and have a plan in place to support their lifestyle as long as they live
Planning ahead for how a business will be passed on to future heirs or in-company talent
Clears up concerns about going through the probate process

Your system, and in particularly working with an attorney who undertands your unique concerns, is the only way to comprehensively address all your issues on an ongoing basis. Estate planning is not something that should be looked at once and then ignored.

November 15, 2016November 15, 2016

Year-End Planning and Trump’s Tax Plan: What You Need to Know

There’s always some concern during transition years that tax planning could be going through some major changes in the near future, prompting many to evaluate their current plans. That’s certainly true this year as experts begin to speculate the real tax plan proposals of a President Trump.

Although we’ll have to wait until January and beyond to see what changes are actually pushed through, there are four key components to his current plan worthy of considering as you approach your year-end planning:

Business tax cuts: Although he’s proposed some hefty business tax cuts, he also plans to eliminate a lot of business deductions, too.
Individual cuts: In addition to getting rid of the Obamacare net investment income tax, Trump has proposed making three tax brackets in the US: 12%, 25%, and 33%.
Estate taxes: The president-elect has previously gone on the record saying that he wants to eliminate the estate tax completely.
Foreign profit taxes: Trump argues that far too many dollars are escaping the US tax system entirely and therefore supports a 10 percent repatriation tax on accumulated profits for U.S. company foreign subsidiaries.

No matter what changes do happen, it will be intelligent to have a relationship with an experienced tax and estate planning firm already established. These changes are certainly not unexpected, but it could rock the current planning opportunities and present the chance to overhaul your individual and business plans. Keeping your eye on the news and putting in a call to your estate planning lawyer for an annual review could be well worth it so that you remain poised to adapt to changes as necessary.

At Shah & Associates, we’re ready to review your current estate and tax planning and talk about next steps should the tax code change. If you haven’t yet started the process, now is the time. As always, planning ahead will be important for minimizing your tax obligations and allowing you to pass on as much as possible to beneficiaries. Contact us today to learn more about how we can help: info@lawesq.net

November 14, 2016November 14, 2016

Entrepreneur Estate Planning Tips

Many entrepreneurs have one thing in common: they tend to like to do everything by themselves, at least when the company is started. Over time, however, what tends to separate the extremely successful from the barely surviving is being able to tap into other resources and surrounding the entrepreneurial journey with a team of professional advisors who help him or her implement short and long-term strategy.

Entrepreneurs have unique estate planning needs. In addition to thinking about the future of their own assets, it’s equally important to consider the future of the business, too. Finding the right estate planning attorney can have a big impact on an entrepreneur’s ability to plan. There are five primary tools that most entrepreneurs should consider when putting together their estate and their long-term business planning. Meeting with the right lawyer can help to identify the best opportunities to move forward with estate planning while keeping the future of the company in mind as well.

The top six tools that can help an entrepreneur include:

A trust
A buy-sell agreement
A trust
Power of attorney
A will
A succession plan

In many cases, the estate planning for an entrepreneur may be infused with both individual and business plans. This is why it’s so crucial to identify an attorney who understands that and works to create a comprehensive and personalized plan for the business owner. Having to suddenly exit the business due to incapacity, for example, can raise a lot of questions for the entrepreneur about who is empowered to make medical or financial decisions for the business owner but also how the company will be handled, whether it’s a short or long-term absence.

Entrepreneurs frequently pour their heart and soul into founding and growing a company. Determining the most appropriate way to protect it is equally important. Make sure you identify an estate planning lawyer with experience helping individuals as well as business owners with estate planning and succession planning needs. The right lawyer can give you a lot of peace of mind about the future.

November 10, 2016November 10, 2016

What Trump’s Election Means for Wealth and Tax Planning

Now that Trump has been elected, it’s time to look forward to see what potential implications this has from a wealth and tax planning perspective. Of course, this is all dependent on the direction things go in January when he takes office, but there’s agreement across a typically-divided Washington that the tax code needs major reform. With the support from both sides of the aisle and a Republican Congress, there’s a good chance that bipartisan tax legislation will be on the agenda in the first 100 days of a Trump presidency. NJ tax attorney

The main gist of the tax plan is to reform the code by dropping income tax rates for businesses and individuals and raising the standard deductions. Personal exemptions would be repealed and itemized deductions limited. Furthermore, Trump has shared his desire to repeal the federal estate tax. However, the least is known about how a repealed estate tax would actually get through.

It’s not just individual income taxes that are going to take a hit, either. The corporate tax rate may be dropped from 35 percent to 15 percent. The majority of corporate tax expenditures will be eliminated except for research and development credits, and Trump also supports a one-time 10 percent tax for those who keep corporate profits offshore.

No matter what the changes end up being, it’s clear that the winds of change are blowing. Everyone, whether it’s an individual planning ahead for their estate or a business owner concerned about long-term tax planning and asset protection, should be prepared for considering new strategies in the near future. Partnering with a law firm where the attorneys have extensive experience interpreting these complex issues and translating them into strategies for individuals will be more important now than ever.

November 9, 2016November 9, 2016

Life Insurance Still Matters as Part of Your Estate Plan

Don’t make the mistake of assuming that life insurance is an entirely separate asset outside of your estate plan. Many people set up their life insurance policy early on in their working years and use it to think about income and mortgage payment replacements during this time. However, as your needs evolve, your life insurance policy may need to evolve as well. You may need an additional policy or you may trade in an old life term insurance policy for a universal life policy.

A full review of your estate plan should be conducted on a regular basis in order to evaluate where your life insurance policy simply is not performing the way that it needs to, to be in line with your estate planning goals. The ‘set it and forget it’ mentality often associated with a life insurance policy puts individuals at risk of making mistakes. A client might be under the impression that life insurance is totally outside of their other assets and may fail to appropriately account for this asset in the estate plan, missing opportunities to provide for your beneficiaries. If you have an underperforming or old policy that has higher administrative costs or yields lower interest rates than a current policy, there’s a good chance that you need a fresh look. Furthermore, you might get benefits from using an irrevocable life insurance trust and you should always take a look as we get closer to the end of the year, whether or not you have nonexistent or outdated beneficiary designations.

Some of the most common mistakes in this area include naming a former spouse, a deceased individual, omitting children who were born after the policy was issued, or naming a minor grandchild or child. Reach out to an experienced estate planning attorney today to talk about setting up a consultation to ensure that your life insurance is in line with the rest of your estate planning goals.

November 8, 2016November 8, 2016

New Study Shows That Pre-Retirees and Retirees Are Uncomfortable with Estate, Retirement & Investment Planning

Getting close to the point of retirement and thinking about it within the next five years should prompt discussions with these individuals about their next steps as it relates to estate planning, investing and retirement planning. It’s hard for anyone to plan for the future, but it becomes all the more important as longevity in the U.S. is increasing. This means that you not only need to think about retirement, but you need to be prepared to fund a potentially long retirement and consider how long-term care issues may also influence your situation.

However, according to research from Hearts & Wallets, more than 5,000 adults shared that they are uncomfortable with the prospect of estate planning. A full 26% of the individuals who participated in the study said that estate planning was very difficult or somewhat difficult for them. This represents an increase of 2 percentage points since the previous years’ study asking the same question. Despite recognizing that estate planning was a worthwhile endeavor to explore, only 8% of retirees and pre-retirees admitted that they had sought help for estate planning in the previous 18 months.

Not getting help for estate planning can easily be avoided because you’re uncomfortable thinking about your own mortality or feel as though the issues don’t apply to you. However, everyone can benefit from comprehensive and aligned estate planning. Reach out to an experienced New Jersey estate planning attorney today to learn more about what’s right for you. Send us an email to info@lawesq.net to learn more.

November 7, 2016November 7, 2016

Three Types of Powers of Attorney That You Should Be Aware of

A power of attorney refers to your written approval for someone else to act on your behalf in business, legal or private affairs. Many people overlook the benefits of a power of attorney because they assume that the primary aspect of estate planning is to handle things after you pass away. However, this could be a major mistake as incapacity or disability can happen at any point during your life and not having someone to step in and manage your affairs can create further confusion and problems. NJ estate planning lawyer

There are three primary types of power of attorney, including:
• Durable power of attorney, which allows another individual the authority to manage financial transactions on your behalf. This allows you to appoint someone else to manage all of your financial affairs if necessary.
• A healthcare power of attorney that enables you to allow someone else to oversee your medical care and make healthcare decisions on your behalf if you are unable to do so.
• A springing power of attorney. Much like a durable power of attorney, this allows you to appoint someone else to handle your financial affairs and this can only happen when there has been a triggering event such as your incapacitation.
To learn more about various powers of attorney, reach out to the offices of an experienced New Jersey estate planning attorney today.

November 3, 2016November 3, 2016

Estate Planning and Long-Term Care Go Hand in Hand

There’s no doubt that estate planning is an important part of your looking ahead in your own life and even to after what happens when you pass away, but it’s important consider how you incorporate long-term care planning, too. 5

People in America are living longer than ever, and this means that traditional approaches to estate planning and retirement planning no longer cut it. Wanting to pass on assets to your loved ones is a worthwhile goal, but so is setting aside the time to ensure that you have taken care of your own future as well.

Long-term care planning involves multiple components such as thinking about your next steps if something were to happen to you, including safety nets like a long-term care insurance policy and a long-term Medicaid plan. Trying to deal with these concerns in the heat of the moment when a problem has already appeared is extremely difficult. It can also limit your options in the moment. Although no one wants to think about the potential for a disabling event or a cognitive decline, recognizing that the statistics show that at some point you’ll be dealing with this is the best way to approach the situation from a planning perspective.

Long-term care may be short term or it may involve a more in-depth situation like being in a nursing home. The only way to plan ahead is to think about whether the goals you have line up with your plans as they are now. It might be hard to look that far into the future and yet that’s a worthy goal in order to protect you and your loved ones.

November 2, 2016November 2, 2016

Don’t Forget the Founder’s Role in Business Succession Planning

Without a proper business succession plan, the very future of the company is in question. The entire business could even tank due to a lack of a proper succession plan. Without some guiding documents in place, new owners and family members may be stepping in to a very complex situation and may end up in conflict with one another. It’s important to meet with an attorney who has extensive experience in the realm of business succession planning to start with to ensure a comprehensive approach towards protecting individuals and the interests of the business.

Although to some extent certainty and clarity should be incorporated into your estate plan, the owner might assume risks in order to help grow the business. The owner may even have a concept in mind for when he or she will elect to leave the business. However, there are so many different events that can disrupt this plan. If you have not planned for some adaptability in the business succession plan, all the hard work can go up in smoke.

One key aspect to remember in any business succession plan is the transition of the owner. How will he or she maintain an operational role or compensation during the succession process? If the clients intend to remain with the business because of their connection to the owner, this transition period could lead to a lack of trust. Any buyer will want to be able to minimize the potential impact of fleeing or unhappy clients. One way to address this is by using an earn-out structure for the owner’s exit.

If you have more questions about the business succession planning process, reach out to an experienced lawyer today.

November 1, 2016November 1, 2016

Why Worrying About Asset Protection Planning is Worth It

In today’s busy world it’s easy to overlook the numerous responsibilities that you have on your plate. Thinking about estate planning, running a business, managing your family, and dealing with all of the details associated with day-to-day life in the US can be overwhelming. That being said, you have worked so hard to establish your assets and your growing wealth.

In the event that you ignore these, you could find yourself in big trouble down the road if you do not engage in the process of asset protection planning. One of the most important things you can do is to set up a meeting with an experienced asset protection planning attorney.

Without a plan in place, you expose yourself to risks associated with a divorce, lawsuit, or creditors coming after you. In the blink of an eye, all of your assets may be exposed immediately in just one unfortunate event. If you take some time to continue the planning process with a lawyer is important.

You have put a lot of effort into protecting your family and building your own personal legacy. You should be concerned about protecting it, too. There are many different strategies available to you that can help you accomplish estate and asset protection planning goals at the same time. You should not hesitate to reach out to a lawyer when you find yourself in this situation.

October 31, 2016October 31, 2016

Key Documents for Avoiding Estate Planning Mistakes

There are always a handful of documents you should include in your estate plan to accomplish the most effective goals for you. This is true whether you have a complicated estate with a lot of assets or whether you need some simple tools to accomplish your basic goals. Remember that estate planning is about more than figuring what will happen to your property after you pass away. You also need a clear plan to protect yourself while you’re still alive, including documents that enable others to make decisions on your behalf if something happens to you.

Some of the most important documents you should have in your arsenal include:

Durable power of attorney
Basic will
Advanced medical directives
Letter of instruction
Living trust

Before you start looking online for a template, however, be aware that these generic forms often fail to capture the unique aspects of your life and may not even be legally valid for your state. Finding a lawyer and scheduling an initial consultation is strongly recommended in the event that you need insight from an experienced attorney. This gives you more peace of mind that your documents are accurate and in line with your life and needs.

October 27, 2016October 27, 2016

Avoid These 10 Estate Planning Mistakes

Did you know there are a lot of mistakes you can make in your estate planning process? Thankfully, many of them can be avoided successfully if you work with an experienced estate planning lawyer as soon as you intend to get started.

These mistakes can end up costing you and your beneficiaries a lot of unnecessary stress and frustration. Read on to learn more.

A do it yourself will or trust
Not having a will at all
Not coordinating beneficiary designations with your will
Not coordinating retirement account designations with the will
Improperly using a lifetime trust
Giving gifts outright to minors
Trying to do it all on your own
Failing to update your documents where necessary
Owning your own life insurance
Not including flexibility in your plan

Your experienced lawyer can help you figure out your next steps if you’re ready for estate planning.

October 26, 2016October 26, 2016

Why You Should Plan for Your Pets

The estate planning process can be as complex or as simple as you need, but one fact remains: make sure you don’t overlook something. Missing a planning opportunity can create many problems down the road, including those for your pets.

One of the aspects of estate planning often covered is that doing comprehensive planning protects your loved ones because you minimize confusion and help your beneficiaries get access to their assets quickly. However, your will and basic estate planning does not cover your pets unless you specifically share your intention to do this with your estate planning lawyer.

A pet trust is one of the most effective ways to address the needs of your pets. In addition to sharing your intentions with your lawyer and talking with anyone who you would like to step in and care for your pets if something happens to you, a pet trust can financially provide for the needs of your fur children. While no one expects to suddenly suffer from a disability or to be killed in an accident, this situation can be traumatic enough as is for your pets. Ensuring that you have a plan in place to have them provided for is important; it can help to minimize the challenges they experience after something happens to you.

A pet trust is even more important for an older pet or a pet with existing health concerns. Setting aside the time and money to address these needs is critical for your pet’s future. Reach out to a New Jersey estate planning lawyer today to talk options.

October 25, 2016October 24, 2016

A Customized Estate Plan Should Always be Handled by a Lawyer

If you are thinking ahead about your estate planning goals, it’s tempting to address your needs by filling out a form you found online.

A template will or other documents are not always legally binding and they may be a very poor fit for anyone who has special concerns or needs. In the event that your will is unclear or not in line with relevant state laws, your estate could become more complicated than you intended.

Here are some common situations that warrant the insight of an experienced lawyer:

Caring for a child with special needs
Wanting to give particular pieces of property to one beneficiary or another
Wanting to exclude someone from your will or other estate matters
Wanting to ensure that property is passed on with some element of control (such as through a trust)
Getting remarried or divorced and needing to update your plan or adjust to include past beneficiaries
Advanced planning strategies to assist with your estate or tax needs

As you can see, there are numerous situations that make it a good choice to set up a meeting with an experienced estate planning lawyer. Talking to a lawyer will help you identify the right strategies for you and your family now and well into the future.

October 24, 2016October 24, 2016

Preparing for Your First Meeting with an Estate Planning Lawyer

Before your first meeting with an estate planning attorney, it’s a good idea to think about whether you already have any documents from years ago or what assets you have that you want to pass on to others. Depending on your individual needs, your estate plan can be as simple or as complex as you want to make it. Thankfully, an estate planning lawyer can help you figure out your next steps.

Putting together an inventory of your assets is one way to start the process before your meeting with your estate planning lawyer. An experienced attorney will likely start off the meeting by asking you some questions in order to determine what you need. From there, you’ll develop a strategy and a plan to accomplish your estate planning goals.

Make copies of all your existing estate planning documents, your asset inventory, and the names of anyone who you want to include in your will. Your lawyer will help walk you through putting together documents to protect you during your lifetime as well as what will happen to your assets after you pass away.

Being organized is the most important step to be prepared for your first meeting with an estate planning lawyer. If you’re ready to talk options, set up a meeting with a NJ estate planning lawyer.

October 20, 2016October 20, 2016

Benefits of Advanced Medicaid Planning

Having a loved one experience a health event that may prompt more intensive care presents a lot of unique challenges for all family members. It can be a confusing and frustrating time with limited decision-making options. Given the rules regarding the Medicaid look-back period, it can be difficult to maximize asset protection and get the most out of planning ahead for Medicaid.

The reality is that for many families, the first time they consider Medicaid planning is during a time when it’s too late to make advanced planning strategies work. No one wants to think about health deterioration for a loved one or themselves, however, doing so can help to ensure that someone does not have to spend down their own assets in significantly prior to qualifying for Medicaid.

Meeting with an attorney years before considering Medicaid has a lot of benefits. It allows you to consider how you’ll handle your assets now and increases the chances that you’ll be able to pass on assets to loved ones while also having some peace of mind about your own health needs. If you’re nearing retirement age, now is a good time to have an initial consultation about advanced Medicaid planning. This is because you’ll have more options and be able to have greater flexibility with your choices.

October 19, 2016October 19, 2016

New Study Says Half of Americans Think Estate Planning Not for Them

A new study from Wealth Counsel reveals that half of Americans believe estate planning is not for them and that it’s only for the extremely wealthy. These individuals assume they don’t have enough assets in order to reap any benefits from the estate planning process. Only 46 percent of people in the U.S. think that a trust would be a necessary component in their estate plans. Often, a trust is a key component in estate planning as it adds more control and privacy to any estate, regardless of size.

This is combined with the fact that more than one-third of people in the country admit to not even having a will. Of those, 37 percent say that they have not had the conversation about their estate planning with family members due to the perception of lack of assets. Nearly another 30 percent of those respondents believe that there’s no real benefit in putting together an estate plan at all.

The reality is that people of all income and asset brackets can benefit from estate planning. Whether it’s basic tools like a will that help to clarify things for loved ones after you pass away or documents that ensure your financial matters or healthcare wishes are taken care of if you become incapacitated are worthwhile endeavors.

If you have questions about how estate planning can help you, contact an experienced lawyer today to learn more.

October 18, 2016October 18, 2016

Remarrying? Update Those Planning Docs!

There’s a strong chance that your wedding checklist does not include a trip to your estate planning lawyer, but there’s a good reason it should: remarriage shifts the family dynamics and your new documents should reflect this new makeup. Many individuals in the U.S. are facing the prospect of a second or third marriage.

In fact, according to a Pew Research Center report, 40 percent of marriages in 2013 alone were remarriages for one or both spouses. The stats for failing to create or update an estate plan are even more problematic. As much as 63 percent of the U.S. population doesn’t even have a will, and nearly ten percent have an outdated one.

This combination of outdated or nonexistent documents and a new marriage can present a conundrum. If something happens to you, the old valid documents will still hold, even if they give power of attorney or property over to a former spouse.

If you’re getting married, there are plenty of things to celebrate, but don’t let your planning opportunities go out the window. It’s a critical time to update your documents and ensure that you have everything in line for your new family dynamics and individual needs. Contact a New Jersey estate planning lawyer to learn more.

October 17, 2016

Guarding Against Incapacity: Documents You Need

It’s Estate Planning Awareness Week and a good opportunity to remember that estate planning is about more than what happens when you pass away. It’s also about what happens during your lifetime. Should you become suddenly incapacitated, would you have someone to step in and help with your affairs?

Two key documents are worth considering in this process. When you plan properly, you can help to protect your assets and estate while you’re still alive. The first document to consider is a durable power of attorney. This allows someone else to manage your affairs if you were to become unable to do so as a result of a disability or other issue. This person can pay bills for you, direct investments, or file taxes when you are unable to do it.

The other document you should keep in your arsenal is an advanced medical directive. This means someone else can make medical decisions on your behalf. You can talk more with your New Jersey estate planning lawyer about how these work and how to choose someone to serve in this role.

October 14, 2016October 13, 2016

Shah & Associates Named 10 Best for Client Satisfaction

As a dedicated estate planning and asset protection planning law firm in NJ, we frequently credit our clients with the longstanding reputation we have earned in the area. We know that your planning needs are important to you and it’s always been our goal as a firm to meet and exceed your expectations. Whether we’ve just met you or have been working with you for years, it’s our mission to serve you personally and help to suggest strategies and tactics most aligned with your individual needs.

That’s why we are so thrilled to have been named as one of the 10 Best in the Estate Planning Division by the American Institute of Legal Counsel. While the long relationships we have with our clients, the referrals to others, and the thanks we receive from clients like you are our favorite part of business, being awarded from an outside party also carries its own excitement. We hope to continue to serve you and your families with the same compassion and vigor we’ve come to be known for since founding this office.

It’s truly a privilege to get to work with all of our wonderful clients in New Jersey and we hope to continue to be part of your estate planning process for many years to come. Thank you for making what we do so enjoyable!

Search:

Author: Neel Shah