Posted by: Susan Green
Historically, New Jersey residents have had to prepare for three primary death taxes in the administration of estates: the federal estate tax, the New Jersey inheritance tax, and the New Jersey estate tax. Currently, a federal estate tax is imposed on estates valued in excess of $5,120,000. The rate of taxation is 35%. If Congress does not act within the year, this exemption will drop to $1,000,000 in 2013. Further, the tax rate will increase to 55%. New Jersey has two taxes. First, there is the inheritance tax, which is imposed on certain beneficiaries and paid by those beneficiaries. Immediate [...]
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Filed under Estate Planning, Estate Planning.
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Posted by: Thomas D. Begley, Jr.
Since the advent of Section 111 of the Medicare, Medicaid and SCHIP Extension Act of 2007, defendants and defense counsel are more vigorous in ensuring that all Medicare liens are paid in full from settlement proceeds and that a Medicare Set Aside Arrangement (MSA) is established where required. Unfortunately, since this area is new, many defense counsel are requiring MSAs in third party liability cases, even in instances where none is required. To avoid the establishment of an unnecessary MSA, the Begley Law Group assists plaintiffs’ personal injury firms by providing written Opinion Letters in appropriate cases stating that an [...]
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Filed under E-Lerts, Estate Planning, Personal Injury Consulting.
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Posted by: Thomas D. Begley, III
In December 2010, Congress and President Obama passed legislation which, in part, significantly altered the federal estate tax. For the next two years, there is a federal estate tax exemption of $5,000,000 per person. With a proper post-mortem election, a couple can preserve $10,000,000 without any pre-mortem planning. Of course, with proper planning, this $10,000,000 objective can be attained as well. In light of this great expansion of the federal estate tax exemption, many individuals are understandably questioning whether or not they need to maintain current levels of life insurance. For some individuals, it may no longer be necessary for [...]
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Filed under E-Lerts, Estate Planning, Estate Planning.
Tags: Estate Planning
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Posted by: Thomas D. Begley, III
By: Thomas D. Begley, III, CELA and Lee Holmes, CELA A frequently contentious area in the elder law arena is the establishment of effective fiduciary relationships. Such relationships are frequently established through powers of attorney, living trusts and other inter vivos documents. Problems frequently arise when writings, establishing these relationships, are poorly drafted and when fiduciaries are not properly selected. Such problems are further compounded when no legal direction is either sought or given after the establishment of such relationships. Increasingly, legal challenges are asserted against a fiduciary for breach of fiduciary duty. At times, such challenges accurately attack a [...]
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Filed under Estate Planning, Estate Planning, Library.
Tags: Estate Planning
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Posted by: Susan Green
The personal representative of an estate can be compensated in several different ways. For an executor, compensation may be set by the terms and conditions of a will. Alternately, the will may include: (a) a clause authorizing the executor to take a commission based on the state statute, (b) a clause directing that the executor take reasonable compensation for services rendered, (c) a clause that sets a flat fee for compensation, or (d) a clause that states that the executor shall serve without compensation for services rendered. For an administrator, compensation is set by state statute. Trustees appointed under living [...]
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Filed under Estate and Trust Administration, Estate Planning, Estate Planning, Library.
Tags: Estate Administration, Estate Planning
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Posted by: Thomas D. Begley, III
For high net-worth individuals and couples, there are a variety of transfer techniques in order to minimize exposure to death taxes. These include, but are not limited to Disclaimer Trusts, Credit Shelter Trusts, Applicable Exemption Trusts (a/k/a Credit Shelter Trusts), and Q-TIP Trusts. These Trusts, effective for use with married couples, can be utilized in Wills and Revocable Living Trusts. To further minimize potential payment of estate and inheritance taxes, a variety of other techniques may be employed. These techniques focus on major lifetime gifting. They include, but are not limited to: A. Annual exclusion gifts. Each year, an individual [...]
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Tags: Estate Planning
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Posted by: Thomas D. Begley, III
The federal estate tax will return on January 1, 2011. However, in an astonishing turn of events, it is coming back with a greater exemption, a lower rate than before, and a wrinkle that appears to make estate planning easier on the taxpayers. All of this is arguably good. On the other hand, this law has a notable catch and apparently will not impact state laws created in the past decade affecting estates. In a nutshell, the Tax Relief Act of 2010 reinstates the federal estate tax which had been eliminated this year. It is reinstated at a flat rate [...]
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Filed under E-Lerts, Estate Planning, Estate Planning.
Tags: Estate Planning
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Posted by: Thomas D. Begley, III
Any individual, who aspires to practice estate planning or elder law, must be proficient in the areas of will drafting, trusts, and basic taxation. One of the fastest growing areas of litigation throughout the country is will contests. The primary reasons for this growth are: (1) the increase in our elderly population and (2) inadequate preparation of estate planning documents. The latter reason stems from the fact that many attorneys utilize a boilerplate approach to estate planning, believing that “one will fits all.” This problem is also found in the utilization of trust mils and computer programs. Competent attorneys recognize [...]
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Filed under Estate Planning, Estate Planning, Library.
Tags: Estate Planning, Wills
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Posted by: Thomas D. Begley, III
Any individual, who aspires to practice estate planning and elder law, must be proficient in the areas of will drafting and trusts, and basic taxation. Competent attorneys recognize that individual and financial factors must be evaluated prior to preparing a will or trust. An evaluation of these factors will determine what clauses should be utilized in drafting a will or trust, whether a living trust should be utilized as an alternative to a will, and the extent to which federal and state death taxes must be addressed. This article shall focus on the basic elements of drafting for trusts in [...]
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Tags: Estate Planning
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Posted by: Thomas D. Begley, Jr.
The American Bar Association has just published a booklet entitled “Legal Guide for the Seriously Ill: Seven Key Steps to Get Your Affairs in Order.” This article summarizes the ABA Report. Step 1 – Plan How to Pay for the Health Care You Need 1.1 Worker’s Compensation 1.2 Social Security Disability Benefits 1.3 Veteran’s Benefits 1.4 Medicare 1.5 Medicaid 1.6 Private Medical Insurance 1.7 Accelerated Death Benefits under life insurance policies 1.8 Reverse Mortgage 1.9 Tax Deductions and Credits 1.10 Bankruptcy Step 2 – Make a Plan to Manage to Health and Personal Decisions 2.1 Do a Living Will or Health [...]
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Filed under Estate Planning, Estate Planning.
Tags: Estate Planning
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