Category: Estate Planning

You will certainly get better sleep when your affairs are in order the older that you get. Thinking about the legacy you want to leave behind for your loved ones is an important step to take. Estate planning is a major concern for everyone, regardless of the size of your estate. You might want to ensure, for example, that any assets you have accumulated are used wisely by those that you intend to give it to.

This is one of the primary reasons why many individuals approach estate planning with questions about how they can retain control. You may be able to put assets aside now in order to plan for these situations, but you might also want to support you and your spouse’s needs through retirement. This generates complex estate planning questions.

You’ll need to have full ownership of these funds for the time being, but also retain income and full withdrawal rights. There are also issues associated with tax. More individuals who relocate and move to a new country may be impacted by cross-border taxation and this is a major issue that can be easily overlooked. A trust gives peace of mind that assets are planned for appropriately and managed correctly. If you have concerns about your loved loves being able to manage things properly then you need to consult with an estate planning attorney as soon as you can. Setting up a meeting now will help to alleviate the vast majority of your concerns and also help you prepare for the future. Your loved ones may otherwise end up in major arguments over the intention of your assets and could resent you for your lack of planning.

If you are thinking about passing on that amazing vacation home to your loved ones and you want to keep it in the family for future generations to use, taking the time to plan now can be extremely beneficial. First of all, you need to consider who actually wants the property. A second home you have held in sentimental value for a long time might lead you to think that your children are automatically interested in having a stake.

However, you need to make sure that family members are actually interested in owning it. Some of the practical issues for your family members could include whether or not their income can contribute to the taxes, upkeep, and other costs. Others might not be able to travel to visit the home on a regular basis and therefore don’t see the benefit.

Your children might also prefer a more liquid asset. In the event that you have identified family members who are interested in owning the vacation property, the next step is determining the right form of ownership. Although the simplest method is to leave that home outright to your children in your will or to the family members who wish to inherit it, this could add additional complexities and disagreements for your heirs.

One option is to pass down your vacation home through a trust which would help to minimize some of the concerns associated with outright ownership. You would appoint a trustee to be in charge of all decisions associated with the home and then your heirs would become the beneficiaries of that trust.

Did you know that only about 45% of adult Americans have already put together their estate plan? As individuals accumulate more assets with every year that they age, it increases the importance of putting together estate planning.

This also increases the probability of problems if you do not engage in estate planning at all. If you don’t have clear planning documents, your family could be exposed to:

• Wasted time
• Frustration
• Not receiving what you intended for them to receive
• Costly court and attorney expenses

When you pass away, your assets could go to taxes, attorneys, appraisers, friends, family, charity, courts and other service providers. Having your estate planning documents in order can help speed up this transfer process as well as decrease cost and minimize family arguments. If you haven’t done so already, talk to an experienced estate planning attorney. You might be under the impression that an estate plan and a wealth transfer plan is the same. Did you know that 70% of family wealth is lost by the second generation and more than 90% of family wealth is lost by the third generation? It can be challenging for your loved ones to adapt to being responsible for a vast sum of money, but using trusts in your wealth transfer plan can help articulate how these individuals receive these assets and use them.

The biggest driver of demand for estate planning trusts over the last two decades has been minimizing the consequences of estate taxes. The biggest considerations for many people from an estate planning sense today are income and capital gains taxes. 

There are many positive reasons to consider creating a trust as opposed to passing things on outright. Trusts are powerful vehicles for allowing individuals to manage assets for themselves, their beneficiaries and their families both during their lifetime and after they pass away. Trusts allow you to pass assets on to your children in a controlled and thoughtful manner and give you more control over how those assets remain available to others and who is able to access them.

For wealthy parents especially, trusts make sense for protecting children from overspending. Trusts are a very powerful means to provide for the administration of wealth and property for family as well as philanthropy. Meeting with the right advisor in the form of an estate planning attorney can help you reveal some of the most pertinent issues you should consider when putting together a trust.

An attorney can analyze your individual situation and make recommendations based on that to help point you in the right direction.

Our world is increasingly digitalized, meaning that you can catch Pokémon, text someone, watch videos or any number of phone related activities while you are taking the train to work, going on a morning run, walking the dog, or even while you’re taking a swim. 

End users of the new Pokémon Go application may start to think about putting real value, both sentimental and financial on their progress in the game. So what happens to these assets when someone passes away. What happens to other accounts like Facebook, Gmail, Twitter and any other game purchases.

The answer is at the same time easy as well as complex. The short answer is that all applications, accounts, and digital games have some kind of property right attached to them. When you pass away, these assets become part of your digital estate. However, if you don’t go through the planning process, it’s all too easy for these items to be difficult to access. For example, perhaps you want a friend or family member to be able to access your Facebook account after you pass away.

Without any digital estate planning, you might not be able to accomplish this and you can create a number of problems and further difficulty for your loved ones. Some states have an act of legislation to allow executors or fiduciaries obtain access to digital assets when the owner passes away. But if your digital assets are treated more like traditional assets then your state succession laws, trust laws or real rules could account how these are transferred upon death.

Even if you are an older adult without any children and without a spouse, it is still beneficial to have an estate plan. Many individuals in this position put off putting together an estate plan because they believe that if something happens to you, an adult child, then the parents would get everything. It is a good idea, however, to encourage your adult children to plan, especially if you have recently gone through the planning process yourself.

If an asset has a beneficiary designation name, then that asset doesn’t transfer according to the New Jersey inter-estate rule. Even if you do not have any minor children or a spouse who may be eligible to receive part of your estate, consulting with an estate planning attorney can help you identify your next steps and to help prevent further confusion or problems in the event that a loved one passes away suddenly.

Putting together an estate plan can be easily accomplished by consulting with a New Jersey estate planning attorney sooner rather than later. A knowledgeable attorney can help advise you if the relevant documents you may need in addition to a will, including whether or not it makes sense to put together any trust, a durable power of attorney, a financial power of attorney and other materials. Only an attorney should be used for the estate planning process as it’s all too easy to make mistakes when doing this on your own.

There are several different mistakes you can avoid when setting up future plans for your disabled child. An individual with special needs will have concerns that will continue for years after you pass away and planning ahead significantly can ease your own fears about this individual’s future. What follows are some of the most common mistakes that are easily avoided by working with a New jersey special needs planning attorney.

• Choosing the wrong trustee. A special needs trust is always very complex, so it is important to work with someone who understands these needs. It can be a mistake to choose a close friend or a family member to serve in this role because family members and friends are unlikely to be experts on these kinds of trusts. You might choose to have an attorney serve in this role instead.
• Failing to maintain or properly fund the plan. It is essential that sufficient assets be available for an individual throughout his or her lifetime when special needs are a concern. Life insurance may be the appropriate vehicle for this purpose.
• Relying on siblings to pay the way for a special needs brother or sister. You should not count on your children using their own inheritances or assets to provide for a special needs sibling. This is a risky long-term strategy, especially in the event that one of these siblings develops financial problems and is no longer able to support their sibling with special needs.
• Creating a special needs trust inside a will rather than using a revocable living trust.

Special needs planning can be very complex which is why you need to consult with a New Jersey estate planning attorney who understands all of the issues at play and can advise you about potential next steps. Keeping this estate plan updated as well is important for planning ahead for your loved one’s future.

When you are approximately five years away from retirement, you need to make sure you follow the five steps below in order to protect your interests and ensure that you have planned ahead appropriately for all possible concerns. 

• Make a protection plan. Guard against risks that could burn down your income plan. You need to take a careful look at your retirement accounts and ensure that you have enough to support you. Some estate planning is beneficial to help protect you from taxes, particularly in states that have an estate tax.
• Make an appreciation plan. Working with your financial management advisor can help you with any financial goals you have in the years leading up to retirement.
• Identify an Income Plan
• The best way to understand the income you’ll need in retirement is to think about fixed expenses, variable expenses, and debt. You can compare this against the guaranteed sources of income like a pension or social security. You may need to identify other opportunities just for yourself as well.
• Make a tax plan by working with a knowledgeable estate planning attorney and potentially and accountant.
• Put together your estate and legacy plan. To put to rest any concerns you might have about taking care of your loved ones in the future, consult with a knowledgeable attorney to make sure that all of your documents are in order including your financial power of attorney, healthcare directives, trusts, wills and your financial power of attorney.

To learn more about how these tools can help you, consult with a New Jersey estate planning attorney today.

Wills and trusts are both essential estate planning tools. A living trust cannot address everything like naming a guardian for your minor children, so even in the event that you have identified that a living trust will help you, you’ll still need a will in addition. It’s a good idea to have a will, regardless of the size of your estate.

A will is always needed to address assets that are not transferred into the living trust prior to death. Living trusts can be helpful but they often must work in cooperation with a will. The primary reason to use a living trust is to avoid the probate process.

A will would have to go through probate but a living trust does not. In the state of New Jersey, probate is often seen as an inconvenience because there is a time delay and some costs associated with management before the assets can be distributed. This isn’t, however, so burdensome that a will should be avoided entirely.

If you have out of state property, a living trust may be the right tool to use in order to avoid ancillary probate which is a separate probate process entirely in the state where the property is located. Trusts can also be helpful for long term care planning situations and planning ahead for special needs.

While many people understand the benefits of having a will, they still avoid putting one together. Without a will, all of your heirs may become co-owners of your various assets. this means that they’d have to work together in order to disperse or manage that property. You might think that your estate is too small for estate planning, but that’s not the case. Anyone who owns property or has minor children can benefit from using a basic will. Skipping this process could make things more confusing or frustrating for your loved ones, so it’s better to outline your wishes in a will after you’ve spoken with an attorney. Wills are relatively easy to put together and they can clarify your wishes for your property after you pass away. 

A will, however, can protect you, your children, and your spouse. It allows you to accomplish multiple goals at once, including:

• Naming a person to manage any assets you leave to your minor children
• Identifying a guardian to care for your minor children
• Naming and executor to ensure that your will is carried out the way you want
• Leaving your assets or property to specific organizations or people

It can be a mistake to avoid putting together a will in the first place but it can be an even bigger mistake to try to put together a will on your own. All wills must fall in line with applicable state laws and small mistakes on your paperwork could render your will invalid. Thankfully, many of these goals can be accomplished or concerns eradicated by meeting with a New Jersey estate planning attorney. Since the will is the most basic of estate planning documents, consulting with an attorney protects you now and into the future.

If you believe that you have an elderly loved one possibly impacted by Alzheimer’s, it is important to consider this as a unique opportunity for retirement and estate planning. Many individuals in the sandwiched generation may be thinking about putting together the legal documents for their loved ones but also planning ahead for their own future to protect their interest as well. New survey research indicates that Americans fear developing Alzheimer’s disease more than any other life threatening disease including heart disease, diabetes, stroke, and cancer.

The survey also identified that if diagnosed with the disease, Americans most fear the inability to care for themselves and having to burden their family members by losing memory of loved ones and their life. According to research from Harris Interactive, since 2006 the percentage of individuals who fear getting Alzheimer’s has increased more than other diseases significantly. The average cost during the last five years of life for dementia can run as high as $278,000.

While some of these expenses can be paid for with Medicare, Medicaid, and insurance, a substantial amount is often paid by family members as well. Doing the advanced work to prepare for the Medicaid process can be beneficial by contacting a New Jersey estate planning attorney.

Estate planning often gets pushed aside in this process although it can be significantly helpful for preparing a loved one for the potential in the future of developing Alzheimer’s disease. To learn more about what you can do as far as Medicaid planning and estate planning to protect your own interest and the rights of your adult parents, speak with an experienced New Jersey estate planning attorney today.

 If you’re thinking about passing on parts of your estate to your beneficiaries, this is certainly a worthwhile goal but it’s one that should be considered carefully. Leaving gifts outright can lead to problems. For example, some of the most common issues associated with leaving assets to your beneficiaries directly include:

• The trustee of any trust does not have an opportunity to build relationships well with the beneficiaries.
• Bankruptcy courts can seize a bankruptcy beneficiary’s inheritance to pay creditors and associated costs
• A divorce court could ultimately ward some of the inheritance to creditors, limiting your beneficiary’s inheritance to satisfy the creditor’s claim

Using trusts to plan ahead can allow you to have some control over how these assets are distributed to your beneficiaries while also giving you peace of mind that some or all of these issues can be addressed. Depending on your overall goals, a trust can help fit into your general estate planning and allow you to accomplish multiple goals at once. A trust, among other asset protection planning tools, is strongly recommended. 

Consulting with a New Jersey estate planning attorney is strongly recommended if you intend to go through this process. Speaking with an attorney sooner rather than later can help to accomplish your goals now and take these worries off your plate.

Most people are aware of the benefits of saving for retirement, or even setting up a meeting with an estate planning attorney. But what about unexpected emergencies like critical illness? Costly medical bills, the need to provide financial security for any surviving family members and the costs associated with home care and hospitalization can be devastating.

That’s why many individuals approaching retirement age are thinking not just about how to support themselves in retirement, but also about the benefits associated with long term care insurance plans or other planning strategies. Most people expect that Medicaid will kick in immediately if they are involved in a long-term care event warranting hospital or nursing home care. In order to qualify for Medicaid, however, you must have limited resources and assets.

Not all individuals will be able to qualify for this. An increasingly long term care events are happening to individuals who are young and otherwise healthy before an accident happens. Long term care events are not isolated to individuals who are classified as elderly. A long term care event can happen to anyone. For example, imagine that you have been injured in a serious car accident and you need to take a month or even three months off of work to recover in a facility with intensive care.

Even with health insurance, the costs of going through this process can be catastrophic and it can change your life in big ways. Make sure you think about the benefits of planning for emergencies like disability or accidents in addition to all of you long term planning goals.

Everyone can benefit from estate planning, but this is especially true for adult children who find themselves sandwiched between caring for their own young children and helping aging parents. According to research from the Associated Press, nearly 10% of adults aged 40 or older are currently supporting at least one of their own children while also providing regular ongoing care for an older relative. This gives rise to financial concerns. However, those concerns don’t often translate to action.

More than half of those sandwiched Americans have done nothing or very little planning for their estate. Being introduced to the needs of an older individual can help to initiate this conversation about the benefits of estate planning.

Consulting with a lawyer about your estate planning goals is extremely beneficial, regardless of whether you need basic tools like a will or a living trust or a more complicated planning. An estate planning attorney can also help you discuss elder law planning for your aging relative so that you have some idea of what to expect and can take strategic steps now to prepare for long term care events.

Most people will benefit from having the basic estate planning document known as a simple will. It might seem like it’s too overwhelming of a process or that you don’t need this, but everyone can benefit from putting their thoughts into a will. Setting up a meeting with a New Jersey estate planning attorney can help you accomplish this goal. Everyone can benefit from having at least this basic document in their estate planning file folder. As your needs become more complex, you can continue to work with your New Jersey estate planning attorney to incorporate additional strategies and documents as necessary.

A simple will is a document that helps you take care of the most essential of estate planning goals, including naming a guardian for your minor children, putting someone in charge of the minor children’s financial affairs, selecting the person who will serve as executor of your estate, and distributing property after your death. If you have a relatively small estate and you’re under the age of 50, then a simple will likely will handle all of the aspects of estate planning you need at this particular point in time.

With a larger estate or more assets with more complicated plans, then a simple will might not be the right choice for you. Consulting with a New Jersey estate planning attorney can give you a broader overview about what to expect in the estate planning process and when a simple will does and doesn’t work for your individual needs.

Much like any other strategy for planning ahead for your future like purchasing an insurance policy, setting up your retirement account or stipulating a college savings account for your children or grandchildren, estate planning is an important part of your life. There are many different steps that you can take and it can be as structured or as simple as you need it to be.

The good news is that meeting with a New Jersey estate planning attorney can help you accomplish the majority of your goals. Read on to learn more about 10 various steps you need to take in the process of estate planning.

1. Appoint a healthcare durable power of attorney.
2. Designate a general power of attorney.
3. Write out your last will and testament and have it reviewed by a New Jersey estate planning attorney.
4. Draft a living will if you have specific wishes about your medical care.
5. Write out your funeral or memorial instructions and make sure that your attorney has a copy as well as any relevant loved ones.
6. Put together a living trust.
7. Outline all documents and accounts.
8. Put together a care plan for your pet, if you need one.
9. Make sure that your digital and social media accounts are ready for the transition, if necessary.
10. Make sure that you review the plan on an annual basis.

All of these goals and more can be accomplished by setting up a meeting with your New Jersey estate planning attorney.

Having a new baby is an amazing and exciting experience, but it also brings many estate planning issues to the front of your mind. Taking charge of your estate planning will give you a great deal of peace of mind that your family is taken care of if something happens to you. It is a myth to believe that the estate planning process only incorporates strategies for minimizing estate taxes or handling your assets after you pass away. In fact, having a child brings to light many of the important issues associated with protecting your new child while you are still alive. These four issues are the most important to consider after you have given birth to a child.

Your Will

Not only does your will outline what happens to your assets after you pass away but it also allows you to name a guardian for your minor child.

Financial Power of Attorney

This empowers another individual, usually your spouse and a contingent person to make financial decisions on your behalf if you become incapacitated.

Medical Power of Attorney

Similar to your financial power of attorney, this allows someone else to make medical decisions on your behalf. You may also choose to put together a living will if you have specific details about your end of life medical decisions.

Other Things to Keep in Mind

Upon a birth of a child, you may want to go and add this individual as a beneficiary on your IRA, life insurance policy or retirement plans, so that it reflects your current family. Anytime you have a new child, this should also be done. Don’t want your child to get direct access or control of the funds right away or at too young of an age?  You can name a trust as a beneficiary as well. But be aware, the wrong type of trust can have adverse tax consequences.

Consult with an experienced New Jersey estate planning attorney today to learn how a growing family impacts your estate planning needs.

Estate planning can be as complicated as you want them to be, but in many cases, you could benefit from setting up a meeting with an attorney to discuss your options. An estate planning attorney can help you accomplish multiple goals, and if you have the desire to protect your assets as well as possible, this can often be achieved with several different methods.

Imagine, for example, that you have a substantial IRA set aside. You might be wondering about the best way to pass this on to your beneficiaries. Your primary options are to give them this benefit directly from the IRA itself or to place it inside a trust. Trusts for IRAs are very rare, but that being said, they also have their time and place. 

The basics of IRAs can be helpful to understand in this content. In most cases, if you’re married, the beneficiary on your IRA is your spouse. When you pass away, the surviving spouse has the option to transfer the IRA into his or her own name. From that period going forward, the regulations are not much different than what you might have experienced yourself. This includes any impacts from RMD rules. The other option is to treat the account as an inherited IRA. In this scenario, the deceased individual’s name stays on the IRA and the surviving spouse is named as the beneficiary. A big benefit to this strategy is that if the inheriting spouse is less than 59 1/2 years old, then the entire account is exempted from a 10% federal penalty. RMDs, though, begin on the date of birth based on the deceased spouse. If the surviving spouse is under this age threshold and needs access to some of the funds, an inherited IRA may be the best route. He or she can opt to rollover the IRA after meeting this age threshold.

To learn whether or not a trust is right for your estate planning goals, contact an experienced New Jersey attorney to learn more about your options. With many tools and strategies available, it’s a good idea to find the right mix for you.

The truth is that it’s never too early to begin the process of estate planning, particularly if you have minor children. Estate planning allows you to accomplish multiple goals at once, including:

• Minimizing the tax implications of your estate
• Naming a guardian for your minor children
• Deciding how you want your assets distributed if you pass away
• Determining who is appointed to make decisions on your behalf if you are incapacitated
• Making determinations about your end-of-life care

All of these decisions are things you should think about now, even if you’re under the impression that your net worth is not high enough to warrant estate planning. Too many people make the mistake of assuming that their net worth is not enough to meet the estate tax threshold and that therefore, all estate planning can be put off. This can be a major mistake, and one that’s easily avoided by setting up a meeting with an estate planning attorney.

Perhaps the most important aspects of the estate planning process are not associated with what happens to your property after you die but instead who is empowered to make decisions for you while you’re still alive. If something happens to you, for example, you may need someone to act your behalf with regard to healthcare decisions or financial options. Having someone to make these choices for you ahead of time means that you have the peace of mind that your affairs will be managed if you are suddenly incapacitated.

No one expects to be in an accident, but the reality is that being in one can turn your life upside down if you have not done some careful planning ahead of time. You need to think ahead about who you trust in a position like this and articular these desires to those individuals as well as your New Jersey estate planning attorney.