Category: Estate Planning

Estate planning is a demonstration of personal values. As humans we have the unique ability to conceive and do the right thing like writing down a plan and matching our deeds to it. Quite apart from the real world penalty, estate plans can promote integrity by incentivizing positive activities and beneficiaries or by philanthropic gifts.

You need to carefully consider what you want in your own plan as well as the legacy you want to leave behind for your loved ones. A completed estate plan aims to accomplish both goals at the same time, and may include various strategies and elements to help you do this.

As C. S. Lewis expressed it, it is less about only doing what is required or what one can get away with legally. Integrity is about doing the right thing even when no one is watching. Estate plans are strategies which set in motion behaviors which, in the best view, show a pattern of values by which one wants to live and be remembered.

Using a trust can place business succession in a well-controlled structure that, when done earlier than succession might actually occur, allow assets to grow within the trust. The most appropriate way to do this is usually creating a grantor trust with the intentional flaw that income taxes are still paid, beneficiaries are shielded from tax and the grantor transfers assets that normally would have remained in his or her estate and been subject to higher tax rates.

In passing along value while retaining control, assets are leveraged and will grow outside the grantor’s estate. A succession structure may be built within the trust, shielding it from future disruption such as sibling rivalry or divorce.

Putting a little bit of effort into your business succession planning can go a long way towards preventing problems now and in the future. Consult with a New Jersey business succession planning attorney today to learn more about your options and determine the key questions you’ll need to consider in this process. Contact info@lawesq.net for more information.

With persons over 50 possessing 70% of the wealth in the majority of families across the United States, family members and predators alike may attempt activities equal to abuse. Key signs to look for in order to prevent abuse in these situations include a sudden appearance of a new best friend, utility disconnect notices or unpaid bills, unusual bank activity with no supporting statements or strange signatures on checks. If you notice these issues, make sure to document it and set aside a time to research it further. 

There are many reasons that outside predators and family may engage in elder abuse as it relates to finances. Family reasons for abuse include addictions, financial troubles and a sense of entitlement that assets will pass to them at any rate, or fear that disability and illness could deplete an estate.

Outside predators may operate through becoming caregivers in order to get access, contacting individuals alone through the study of death notices or overcharging for dubious services. Being aware of some of these common scams could help to protect your loved ones from falling victim.  Need help planning for elderly care or have estate planning questions? Contact info@lawesq.net.

The key in planning ahead for the well-being of your beloved pet is to find a caring organization or person and to candidly talk to ensure willingness and ability to take that responsibility.

A will can bequeath the pet and funds for its care but it cannot usually be enforced.

A pet trust, however, has the advantage of creating a legal obligation, provisions for enforcement and how care should be given either with the death or incapacity of the owner.

Since the cost and flexibility of a trust appear to be disadvantages, less formal arrangements and non-legal arrangements may be preferred. While any plan is better than none, state laws will determine the outcome. If you are concerned about planning ahead for your pets, it’s a good idea to consult with a knowledgeable estate planning attorney who can advise you of all the various assets and property that you may need to consider in the comprehensive estate planning process.              

The just-announced Chan-Zuckerberg Initiative may change the face of high network giving, as rather than granting funds to an outside entity they acted to give to themselves.

The CZI was structured as an LLC which does give up some tax benefit but in return gains certain freedoms, like the ability to lobby legislation, engage in public policy discussions and to take part in for-profit initiatives close to the core business. This is not something that a non-profit organization can do.

One note of caution if you find yourself in the situation of considering an initiative like this is public perception. The idea of a for-profit may remove the luster from the traditional public appreciation of great philanthropy.

Keeping in mind that doctors, business owners and real estate investors are most vulnerable to attacks on their assets, the goal for protection is to actively plan and plan ahead. Every six months, you should inventory every possible asset. Never be in the psychological position of just waiting for the future.

Be very careful with the written promises of contracts and make sure giving your word is done as the business rather than as a personal guarantee. Utilize multiple strategies based on your comfort zone and with the opinion of your financial and legal advisors.

Finally, explore any possible state and federal exemptions for assets. Asset protection planning is an ongoing process and one that should be done in conjunction with a knowledgeable attorney.

Part of prudent cost prevention lies in understanding the spectrum of health for seniors as well as the spectrum of costs. Home care of a non-medical nature such as laundry and other related services as well as home healthcare such as checking temperature, pulse or equipment will both average around $20 an hour.

Based on a 250 day work year this is about $40,000 and can represent a significant cost if you are not properly planning for it. Daycare provides supervision and social activities and will average about $17,000.

Adult medical daycare will add 5% to 15% to that cost. Assisted living will annually run around $43,000 and a full nursing home care is around $80,000. Having a plan in place to address elder planning is crucial for your success, so find an attorney you can trust today.

As art collections increase over time, they become more important in terms of estate value. They can also become more problematic if the heirs are not lovers of the medium. The use, donation and loan of art can involve a transfer of wealth valuation which can benefit collectors as appraisals are often not done. 

As art is an illiquid asset, an appraisal by an independent broker can be set low and can be found acceptable by a tax man. recognizing potentially high gift taxes, one interesting tool can involve transfer of ownership and not the work itself, done in exchange for a promise to pay or replacement with a trust with a lease back provision.

Make sure to consult with your estate planning attorney today to learn more about how to protect yourself if you are an art owner and wish to maximize its value or determine where it will go after you pass away.              

Holidays are, for many families, a gathering of multiple generations and if entered into properly, could be an uplifting opportunity to discuss both past living and future planning. A start could be a video or just the opportunity for the elders to talk of their lives including successes and mistakes.

This would almost always often encompass the financial aspect. Expressed wishes and hopes can lead them to talk of where things are at and what things are needed.

And, at the least, a future time for greater discussion or follow up can be agreed upon. Children, both adult and younger should be included so that values and examples of good valued action can be passed along. Getting the family together represents a significant opportunity for engaging in estate planning over the holidays.

It’s estimated that between 80% and 90% of businesses in United States are controlled by or owned by families, and as many as one-third of them are Fortune 500 companies. This doesn’t mean however that all family owned businesses in America are big corporations. In fact the majority of them are small or mid-sized businesses. Family owned businesses also represent another important statistic in the United States, which is that they account for up to 78% of jobs created within the country.

One thing you need to know about owning a family business is that more than 30% of all family in businesses make it to the third and second generation, 12% make it to the third generation and 3% to the fourth and beyond.

This means that even though it was a given that you or your parents would have taken over the family business, you need to understand how future generations are less likely to take on these responsibilities. This presents questions related to whether you should consider selling or developing your business in such a way that it is capable to capitalize on the maximum sale cost down the road. You should evaluate all possible options before simply assuming that the children you have will take over the family business.

Consulting with a knowledgeable business succession attorney can help to answer many of the questions you have about the succession process and give you a better perspective on what you need to consider.

Both enrollment and spending on Medicaid rose just under 14% in the last fiscal year. But the good news was that the per person per month averages were actually lower. The Kaiser Family Foundation Survey indicated that as many newly eligible individuals are both younger and healthier that it is important to consider how your healthcare costs may rise. 

Living longer and potentially needing services sooner in life than you expect can represent a significant challenge to your savings. States where costs have increased are in many cases saving overall as other costs such as mental health decline.

This is overall good news for seniors looking to guard cost, increases in spending totally covered by the federal budget through 2016 and 19% thereafter.

Understanding what you may be responsible for in terms of paying for your healthcare is one reason to consult with a New Jersey elder law attorney who is knowledgeable and experienced in this area.

 Parents should have a plan to avoid court intervention at the time of death. Minimizing costs while maximizing assets should be a primary goal of this and you may also be able to accomplish providing for financial and healthcare decisions. In many cases, most parents did not wish to have their estate go through the process of probate but by the time their loved ones face it, it is too late to have alternative plans in place.

Have needed documentation such as creating and funding a revocable living trust if this is beneficial to your situation. Another goal of estate planning parents should be to create flexibility in tax decisions like signing a fiduciary to react to current tax laws as necessary.

Determine the conditions necessary for defining incapacity. Hire the right fiduciaries, clearly detail both final wishes and the distribution of personal effects. Initiating a dialog with your parents by focusing on healthcare helps to avoid all of discussion of assets and allows the door to be pushed open. This sets the groundwork for future progress.            

According to recent research by NerdWallet, only 2/3 of couples have proper insurance and 43% of those couples say they are not financially prepared for estate planning. Here are five simple steps to take into account what you need to do for estate planning. 

1. Calculate the need by adding all of your long term expenses multiplied by the number of years you need to cover and then subtract any annualized income.
2. Know the details. Only 67% of individuals without children know the details of their policies and women are less likely than men to know. You need to know who holds the policy, why it was taken out, the total payout costs and possible exploration.
3. Do a will. A 2013 Harris poll reported that as many as 70% of adults with young children had no will at all.
4. Keep your records where they can easily be found. 30% of married adults and children do not know how to access critical information regarding medical conditions or other issues.
5. Talk about final wishes. Of those married individuals with children, 55% knew their spouse’s wishes but the remainder did not. Having these conversations and knowing how to have these basics in place can help to prevent confusion or frustration if something were to happen to you.

If a disaster impacts your family, you may also be concerned about how it will impact the assets you have already set aside and made some effort to protect. Your earning power is what enables you to prosper throughout your work life, but it can all be halted in an instant in the event of a disaster.

If you were to become disabled, however, all of this can be brought into question and perhaps your previous planning doesn’t meet your current needs. If you are disabled, social security disability payments can kick in but you must have a condition lasting at least one year and you must have worked long enough and recently enough to trigger this.

Worker’s compensation might also be able to contribute if the injury happened while you were on the job. Some employers may also offer a long term or short term disability insurance of varying lengths. You can look into purchasing disability insurance but it may cost 5 – 10 times what it was with a group policy. If you were to pass away unexpectedly, Social Security survivor benefits and group coverages may not be enough. Calculations of needed amounts can be conducted at www.lifehappens.org. Term life insurance is another critical part of your asset protection planning strategy that can help to protect your family if an accident were to take your life.

Confusion and dementia are serious concerns for the elderly population in the United States. Both of these can contribute to compromising freedom and flexibility for an elderly individual, and prompting family members to be concerned about the appropriate level of care necessary for individuals in this situation.

The first key to handling dementia and confusion is to address any treatable problems that could be eliminated. These include sight, hearing and depression, for example. In balancing safety with independence for your elderly loved one, consult friends, caregivers and relatives for insight into likely behaviors and risks.

Issues may include how long an individual can remain alone and whether your loved one can safely get back to his/her home when going outside. Another concern to be aware of is whether your loved one is capable of recognizing danger signs like smoke and appropriately calling for help.

If the senior you are concerned about already experiences life threatening episodes, you need to ensure that he/she has access to proper medications and proper dosages. Basic concerns like being able to prepare food and turning off the stove or oven and safely using the toilet and knowing who is appropriate to let inside the home are also key concerns when you are addressing issues like dementia and confusion. For more information about safely helping your elderly loved one, contact an elder law planning attorney today.

According to PEW research, in 2012 the number of unmarried individuals aged 25 or polder had reached 20% of the population. This is a significant increase of 9% since 1960. Although the majority of individuals think that estate planning follows after marriage, if you’re not married the concern can actually be even greater.

There is no clear path for decision makers and no plan means defaulting to an expensive and rigid legal state structure if you are not married and aim to avoid estate planning.

One key to avoiding these challenges is to reevaluate your plan every five years yourself as friendships and relationships may change relative to who possess the healthcare proxy, power of attorney and the like.

A second key is to consider carefully the advantages and pitfalls of combining financial and legal medical decisions in one single person. Contact an estate planning attorney to learn more about your options to determine what is most appropriate for you.

The incident and attendant health crisis of Lamar Odom are a sobering teaching point. Life changes and disability or death can be sudden and they should be planned for. In the California legal system, this meant that legally, a marriage was intact. 

The absence of a healthcare proxy, living will or power of attorney placed the responsibility for medical decisions in the hands of the still current wife, a situation that most individuals in divorce would not wish. The Odom case demonstrates that the intersection of divorce and estate planning can be complicated and something you should contemplate ahead of time.

While divorce severs the majority of relationship responsibilities, an estate plan requires updating and careful consideration at the time so that caregiving wishes may be separated from divorcing parties. To learn more about how to structure your estate planning in line with your current needs, contact an estate planning attorney today.

Would you rather Watch it than Read it? 

Here’s a quicklist of must-see videos to get you up to speed on some Wills, Trusts & Estate Planning.

Keep your popcorn ready!

For your Free consultation with Attorney Neel Shah, click here or Call 732-521-9455

One of the most basic steps to take in asset protection is using insurance. Insurance can help to protect your assets and an umbrella policy brings with an active defense of your assets through the insuring company.

Your retirement accounts, however, are protected through ERISA and bankruptcy law and because these often have matching contributions from employer, maxing out on your own contributions is a great tool.

For the home and real property, the state of New Jersey allows persons to choose between New Jersey & Federal exemptions in the event of bankruptcy. Joint ownership through tenancy by the entirety can protect the home against creditor for closure.

An LLC may be another opportunity that is better than gifting assets as you retain control over those assets. The overall key of protection however, is consultation and planning that ultimately builds a wall around your assets, matching the height of that wall in terms of complexity in cost to the anticipated threats.