Category: Estate Planning

According to a research study from 2015, just slightly more than half of American parents have a living trust or valid will document. Even more troubling is the fact that the majority of adult children wouldn’t know where to locate these documents if they needed to find them. There are several reasons why adults today do not have access to these critical estate planning documents. First of all, most people are not planning for their own mortality.

Cost, too, may also be a factor but this is because many people do not realize how affordable it is to obtain a living trust or a will from an experienced attorney as well as the long terms implication of protecting yourself and your future by doing so. It is important to have a will and a living trust to outline your wishes and to make things easier for your loved ones if something were to happen to you. Even more important than developing a relationship with an estate planning attorney for this purpose is to make sure that your loved ones know where to find this document if something does happen to you.

Keeping a copy at your attorney’s office is a good idea but you may also wish to use a safe deposit box or secure online storage location so that your family members can have access to these materials if they needed. Planning ahead for the future is important whether you choose to use a living trust, a will or other combination of documents. Setting up a meeting today with an estate planning attorney can help you figure out what is most appropriate for your situation and to put together a comprehensive plan to accomplish your goals.

Even if you have not yet completed these documents, you probably have heard the terms “will” and “power of attorney” before. From that point, however, a lot of people fall for some common myths about these critical estate planning documents. Get the details on what you really need to know below.

First of all, a last will and testament is not the same thing as a living will. Your last will and testament is your official declaration of how you want your assets distributed when you pass away. If you do not have a last will and testament, then the state of New Jersey determines what happens to your property. Your living will, however, is the document outlining who you want to make decisions about your healthcare in the event that you are unable to do so. The biggest reason why people choose to have a living will is because they want to define what measures should be taken if their condition appears terminal. Your living will can share your wishes regarding the duration of and the level of care you’d receive in a situation like this. 

Likewise, all powers of attorney are not one and the same. A power of attorney allows you to name someone else authorized to make decisions on your behalf if you are unable to do so. Your power of attorney could be temporary or limited, meaning that only circumstances trigger this individual being allowed to make decisions for you. A durable power of attorney, however, allows you to appoint another individual to represent you until death. Finally, your healthcare power of attorney is a different document altogether in which you name someone to make decisions regarding your health needs.

These might seem like small differences, but they are not. You need to be well-informed about your estate planning in order to have the documents that will help support your wishes should the need arise.

Too many people make the mistake of assuming that you only need estate planning after you have accumulated significant resources or when you have children. Everyone at all ages, however, can benefit from estate planning. This is true even for single individuals and unmarried couples.

Estate planning is about more than putting together your will to distribute property after you pass away. In fact, some of the most challenging situations that pose legal issues are those that happen while you’re still alive. For example, do you have a plan for who can make financial or legal decisions on your behalf if you become incapacitated? While no one expects these scenarios to happen, one car accident or long-term care event could render you unable to make these decisions for yourself, even temporarily. 

Without proper planning, you put your family members and loved ones in a difficult situation. A loved one who is not legally allowed to visit with you in the hospital, for example, may struggle with unnecessary frustration if something were to happen to you. Thankfully, there are documents that can help to address all of these concerns and these goals can be easily accomplished by setting up a meeting with an estate planning attorney. Having these documents on file means that you have a plan in case you need it while you’re alive and it makes things easier for your family if something does happen to you.

Your estate plan should be an evolving set of documents designed to help you address critical illness or disability issues, plan for distributing your property after you pass away, and to minimize the implications of taxes. Setting up a meeting today with a New Jersey estate planning attorney can help you address one or all of these goals, and forming a relationship now with someone you can trust means that you’ll be able to update your materials easily as your plans change, too.

With every change of administration come concerns about how this will impact national policy. The election could have several outcomes depending on Congress, as well, which will also impact just how much wiggle room and legislative support the incoming president receives. The reality is that it’s not likely much will change if the parties stay as polarized and split as they are currently, but here are some predictions about how estate planning laws and strategies might look different depending on who walks away the winner.

A Republican Congress and a Democratic president over the last four years has meant there has not been much substantial change in the way of estate planning recently, and that’s likely to continue if Clinton wins. That’s mostly because Clinton supports the same strategies as Obama, such as minimizing the estate tax exemption from $5 million to $3.5 million and boost the estate tax rate up from 40% to 45%. Unless Democrats are able to walk away with control of the Senate and the House, however, it’s unlikely either one of these provisions makes it through and becomes a reality.

Trump, however, plans to eliminate the estate tax entirely. Obama also currently has plans to eliminate or tighten up the requirements for more advanced planning strategies, including dynasty trusts, gifts to defective trusts, intra-family discounting, and GRATs.

The most important thing you can do with your planning goals is to work with an estate planning attorney you can trust. Although administrations and legislation do change, having an informed attorney can be one of the most effective ways to accomplish your estate planning goals. It’s imperative that all your documents are properly worded and drafted with the current laws in mind, and an attorney in the know can help you determine how any upcoming changes will impact your current plans. Consult with a New Jersey estate planning attorney to learn more.

If you have recently remarried, there are unfortunately more opportunities for uneven distributions and disputes when you pass away. You need to carefully consider the inheritance you have set aside for anyone else as well as any beneficiaries you have named in your life insurance, trust, wills and retirement accounts.

It is likely that after remarrying, you may still have your former spouse listed on these accounts. If you do have minor children you also need to think carefully about who needs to be their guardian in the event that you were to pass away. Some of the following questions you should consider when conducting your estate planning with a blended family include:

• Does my current spouse or former spouse have the authority to make healthcare decisions for me if I were to become incapacitated?
• Has my new spouse given me the authority to act on his or her behalf for financial and healthcare decisions?
• Does my current spouse or former spouse have the ability to manage my financial assets if something happens to me?
• Is my surviving spouse now listed as beneficiary on all accounts including trusts, wills and retirement?
• Does my current estate plan outline that my current spouse will be cared for when I pass away and does it ensure that my children will receive any remaining benefits when he or she passes away?

Conducting your estate planning with a blended family is just as important as any other circumstance. Contact an experienced New Jersey estate planning attorney today to learn more.

The Obama administration recently revealed several areas of focus and efforts to limit loopholes that foreign individuals use to hide assets within the U.S. In his remarks, Obama shared that the Panama Papers helped to indicate steps forward the government is taking to have clearer responses to these kinds of issues, and the president is also asking Congress to formalize better legislation on the topic as well.

The Treasury Department is already taking two big steps related to this. First, they finalized what’s being referred to as the “customer due diligence rule”, mandating that financial institutions do their research to determine where a company is truly located and where the profits from the company are headed. The second step requires that some foreign-owned companies obtain a tax identification number from the IRS. 

The president requested four specific actions to be taken with regard to these issues over the course of the future, including:

• Clear legislation about “beneficial ownership” transparency so that companies would be required to submit these details
• Legislation to empower law enforcement with better tools to fight corruption
• Approve 8 pending tax treaties currently stalled in the Senate
• Evaluate and improve current legislation associated with reciprocal transparency

Questions about asset protection or things you need to know when establishing and managing a business in the U.S.? Get help from an experienced attorney.

It is a mistake to believe that as an unmarried couple that you don’t have legal rights and protections that can be afforded to you by the process of basic New Jersey estate planning. This myth is easy enough to believe if individuals suspect that having no real legal relationship means they don’t have anything that needs to be addressed in their estate planning process.

Unfortunately, if you do not address your estate planning options early, even as an unmarried couple, you may run the risk of your significant other being removed from your life or having no rights in the event that you become incapacitated. There are three primary documents that an unmarried couple should consider in their estate planning.

• A durable power of attorney which allows you to name another individual to act on your behalf if you become incapacitated.
• A will or living trust so that you can stipulate how you wish your assets to be distributed if something were to happen to you.
• A healthcare power of attorney which empowers another individual to make healthcare decisions on your behalf if you are unable to do so.

All of these documents and many more can be accomplished by setting up a meeting with your New Jersey estate planning attorney as soon as possible. Unmarried couples certainly have legal rights to consider and working with an attorney who understands their needs is critical.

In meeting with an estate planning attorney, one of the options that may be recommended to you that of a trust. A trust can be two primary types: living or testamentary. A living trust is created during your lifetime by giving your signature on an authorized trust document. A testamentary trust is generated through your will which means that this trust doesn’t actually exist until you pass away.

There are several different things you can accomplish with a living trust, which is why they are increasingly popular with individuals accomplishing their estate planning. The goals you can accomplish with a living trust include:

• Creditor protection
• Protection for children with special needs
• Allowing for planning for children from previous marriages
• Allowing for business succession
• Managing assets for children until they have reached an age which you select
• Deferring or reducing estate taxes
• Accomplishing vacation home management across multiple generations

Many people believe that trusts are one-size-fits-all and that they accomplish basic probate and tax problems. This is not true. Rather, these are legal instruments that can be designed for your individual needs. They are frequently part of your plan and a crucial part of that plan. If you have not carried out other elements of the plan, your trust may be relatively useless. Consult with a New Jersey estate planning attorney today to discuss a living trust and other options for your estate planning.

There is no doubt that college is one of the most significant investments that individuals make. According to the Department of Labor, the price index for college tuition grew twice as quickly as the consumer price index since 2003.

When your children are facing financial challenges associated with paying for your grandchildren’s college education, concerned grandparents may want to step in by helping with these costs. Using some plans like a 529 savings plan can be beneficial.

These plans can be used to help with qualified higher education expenses like fees, books, tuition and some room and board expenses. In the event that any funds are used for non-qualifying expenses, however, a 10% tax penalty and federal taxes do apply. 529 plans also receive what’s known as favorable treatment for the purposes of a student wanting to receive federal financial aid assistance. It is a good idea for grandparents to consider how separate gifts to their various grandchildren can impact their overall estate planning.

One of the most common issues is fairness as not all grandchildren may have the same financial need. Unequal treatment among grandchildren can cause anger and resentment. It is also important for grandparents to carefully consider their own future needs for long-term care. Nursing home care or private at-home care from a caretaker can be costly so you need to balance these potential needs with supporting your grandchildren. Consult a knowledgeable New Jersey elder law attorney today.

In terms of your retirement accounts, a new possible change coming down the pike could mean that your broker can be classified as a fiduciary.  In the next few months, the Department of Labor will be putting together the final version of a new standard for fiduciaries. This represents what many consider to be the biggest changes to ERISA in the past four decades. 

According to research, as many as 57% of Americans do not have a will and as many as 69% of parents with minor children do not have a will. Even though many individuals are familiar with the basic importance of planning ahead, many just simply cannot find a way to follow through.

Most people avoid getting a will because they think it will be too complex or too expensive to hire an attorney. Thankfully, this is not true. Many people go on the other end of the spectrum and assume that they can complete a will or other essential estate planning documents on their own. This can be just as detrimental as not having a will at all because failing to comply with state requirements could mean that your will is invalid, rendering a legal battle and mass confusion after you pass away.

Basic estate planning tools like a will can typically be accomplished after a short meeting with a knowledgeable New Jersey estate planning attorney. Meeting with an attorney can also give you more information about other aspects of managing your estate planning that could be helpful for accomplishing your goals such as using trusts. Setting up a meeting with a New Jersey estate planning attorney can be a significant step forward for protecting your interest now and well into the future.

If you spent the last couple of decades of your life working to build your business from zero to a profitable venture, you might not realize that the government could levy an estate tax or death tax on your business and reduce your company’s value by as much as 50%.
If family members, former spouses, and co-owners come out of the woodwork when you pass away suddenly, your business could be back to the zero level in less than one year after you pass away. Fortunately, taking care to plan your estate properly can help to minimize the challenges associated with this. Powers of attorney, trusts, wills and estate planning are some of the most common legal tools used by business owners thinking ahead to avoid the negative implications of unfortunate events.
One of the primary reasons that estate planning can be so beneficial for your business is that it gives you more options. A buy-sell agreement, for example, can help to ensure that when any owner passes away then the deceased individual’s interests are automatically purchased by other owners or beneficiaries of the deceased owner. This helps to avoid the chaos that might otherwise ensue after an untimely demise of a business owner.

When a new client first sets up a meeting with an elder law specialist or an estate planning attorney, the primary focus of their attention is usually in developing a will or some of the other basic tool associated with estate planning.

While an estate plan certainly is important and covers the scenario of what happens when you pass away, you also need to think carefully about what happens if you live. This is because more individuals are living longer and will have concerns about making their finances last during this period whether they are healthy or whether they are impacted by an injury or a long term care event. An elder law and estate planning attorney can help you accomplish all of these goals.

An estate plan helps you answer the first question but only your New Jersey long term care plan can help you answer both of those questions. In order to approach your planning holistically, consult with a knowledgeable attorney who can help you think about what happens to your assets when you pass away, as well as how you construct your plan and assets to help you while you’re still alive. Carefully planning for your own future is just as important as thinking about how you can help your beneficiaries after you pass away.

In general, the executor’s primary role is to collect assets linked to the deceased individual to pay the taxes owed by the estate and to pay the debts associated with the estate. After this has been dealt with, the executor’s responsibility is to distribute any remaining assets to the estate beneficiaries.

While this is a very general overview, there are numerous details that frequently have to be managed in a typical New Jersey estate. This is why selecting the appropriate executor for your New Jersey estate is so important. You need to walk through the process with a New Jersey estate planning attorney so that you can make an informed decision about what is best for your future. Do not hesitate to reach out to an estate planning lawyer as soon as possible.

Selecting an executor and accomplishing other estate planning goals can be done easily when you have identified the appropriate attorney to help you with your situation. An executor will play an important role in the management of your estate, so it’s good to think ahead about the role this individual plays and the strategies and tools you’ll use to accomplish your estate planning wishes.

In a recent decision from the Supreme Court, IRAs are no longer classified as protected retirement funds which means that they could be subjected to creditors’ claims if the beneficiary filed for bankruptcy. In the case of bankrupted estates, inherited IRAs could now be classified as assets, meaning that they would be fully accessible to satisfy creditor claims. If you pass a retirement fund down to a grandchild or a child, you need to think carefully about whether you need to take additional steps to protect those funds.

In some situations, putting together a tool like a stand-alone retirement trust can help to protect your asset without minimizing your beneficiary’s access to those assets. Set up a meeting with an estate planning attorney so that your will can be drafted carefully in order to avoid potential challenges and to be set up so that it carries out your wishes.

Planning ahead is one of the most important things you can do whenever you have plans of passing on assets to a future generation. There are many different strategies and tools available for estate planners today that can help you accomplish these goals.

Unfortunately, many seniors who live alone or do not have the opportunity to leave their home on a regular basis may suffer from loneliness.

With a rising number of seniors living alone, isolation is a key concern for family members and those providing care. What follows are five tips to help your loved one stay active and feel included:

1. Give the elder a small garden or a pet. While pets offer endless love and joy, plants are also a good way for your loved one to feel as though he or she has something to do every day. A small outdoor or indoor garden to care for including a bird feeder can help give a lot of joy for a shut-in.
2. Make transportation easily accessible. Once a senior is no longer able to drive, it’s a good idea to consider options.
3. Schedule regular visits with friends and family. Having a schedule in addition to loved ones stopping in regularly will help your elderly loved one to have a more fulfilling life.
4. Get assistance from a professional caregiver. If your elderly loved one is no longer able to complete basic daily living tasks, there are healthcare providers who assist seniors with daily tasks as well as social interaction.
5. Find social clubs or activity groups. This is very important for seniors who do live alone. Look for activity groups that meet on a regular basis and plan ahead for transportation.

Following these tips can help make your loved one’s life easier and minimize your own concerns about your loved one feeling isolated.

It is very important to understand the legal documents that your elderly loved one may have when a medical event happens that causes many questions to be raised. Even if your loved one completed the majority of legal documents years ago, this does not necessarily mean that this person is still up-to-date with all their materials or that their wishes are the same as they once were. It’s a good idea as a family member to conduct a thorough investigation for all of the following documents.

• Full names and contact information for individuals that your loved one may like to name as a decision maker like a power of attorney agent
• Any financial documents that show the person’s assets like retirement account statements, deeds, insurance policies and bank statements
• All advanced directives including living wills that specify the kinds of medical intervention that your loved one wishes to have as well as what he or she does not want
• All crucial estate planning documents like trusts, will and powers of attorney

In addition to doing your own search for these materials, make sure to contact your parents’ estate planning attorney to learn what material may have been filed with the lawyer as well. This may help point you in the right direction for the most up-to-date details and documentation needed. There are many challenges you might face as you have an elderly parent with increasingly higher needs but doing your research and consulting with a lawyer can help you significantly.