Posted by: Susan Green
Bank Accounts The Federal Deposit Credit Union (FDIC) and the National Credit Union Share Insurance Fund (NCUSIF) insure banks and federally-insured credit unions, respectively. The FDIC, established in 1933 as an independent agency, insures all deposit accounts, including checking and savings accounts, money market deposit accounts, and certificates of deposit, placed in banks and savings associations, but it does not cover stocks, bonds, mutual fund shares, life insurance policies, annuities, or securities. If a member bank fails, the FDIC insures all depositors at that institution against loss up to a certain dollar limit. The current standard FDIC insurance amount is [...]
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Filed under Estate and Trust Administration, Estate Planning, Estate Planning, Guardianship, Medicaid Planning, Medicaid Planning, Special Needs Trusts, Special Needs Trusts.
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Posted by: Susan Green
In New Jersey, probate is handled by the county’s Office of the Surrogate (also known as the Surrogate’s Court). Unlike many other states, the probate process in New Jersey is fairly simple. Filing requirements and appearances before probate judges are generally atypical. However, it is still important to understand the probate process in New Jersey from both planning and administrative perspectives. Although the Office of the Surrogate generally enforces few requirements regarding the administration of an estate, a competent professional should make every attempt to ensure that the interests of the estate and its personal representative(s) are properly asserted. The [...]
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Filed under Estate and Trust Administration, Estate Planning, Library.
Tags: Estate Administration, Estate Planning
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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: 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, 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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Posted by: Dana E. Bookbinder
Because the attempt to mold religious tenets into legal systems continues to cause serious conflict even as we head into the twenty-first century, it is an especially rare opportunity when we can express our personal religious and ethical beliefs and have our own words and thoughts assume the authority of law. One such opportunity granted by our state and federal legislatures is the Advance Health Care Directive, often in the form of a Living Will. Through an Advance Directive, individuals execute a written declaration to a physician, hospital, nursing home or other health care provider as to how their medical [...]
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Filed under Estate Planning, Estate Planning, Library.
Tags: Advance Directive, Estate Planning, Health Care Proxy, Living Will
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Posted by: Thomas D. Begley, Jr.
Long-term care insurance can be helpful to clients who are healthy enough and affluent enough to afford it. As elder and disability law attorneys, we must all be aware that Medicaid and other public assistance programs may not continue to exist in the future as we know them today. In fact, the Deficit Reduction Act of 2005 has made it more difficult to become eligible for Medicaid. It would be a disservice to our clients to advise them to rely on these programs in the future. Clients who can afford long-term care insurance and who may be insurable should be [...]
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Filed under Estate Planning, Estate Planning.
Tags: Estate Planning, Long Term Care Insurance
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Posted by: Thomas D. Begley, Jr.
Reverse mortgages are increasing in popularity. These instruments can be a very useful tool for some people if properly used, but can actually be harmful in certain situations. What is a Reverse Mortgage? A reverse mortgage is a device where the borrower taps into the equity of their home and borrows money without the need to make monthly or other periodic mortgage payments. It is designed to enable people to meet the gap between their living expenses and income by withdrawing a portion of the equity in their homes. Most reverse mortgages are made through the Federal Housing Authority’s Home [...]
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Filed under Estate Planning, Estate Planning.
Tags: Estate Planning
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Posted by: Thomas D. Begley, Jr.
© Special Needs Alliance, LLC Harry, 48, and Sally, 46, have an autistic son, Bill, age 21. Bill lives with his parents. The couple is concerned about Bill’s welfare after they die. Harry and Sally always thought that Bill would live with his sister, Joan. Joan has three children and it is apparent that Joan’s husband, Andy, will not be happy with Bill living in his home. Harry and Sally have a home, retirement plans, and $100,000 in investments. They have life insurance. Bill receives SSI and Medicaid, and he can have no more than $2,000 of assets. Any income [...]
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Filed under Estate Planning, Estate Planning, Special Needs Trusts.
Tags: Estate Planning, Special Needs Planning, Special Needs Trusts
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Posted by: Thomas D. Begley, Jr.
1. INTRODUCTION The total return trust is an idea whose time has come. With the arrival of the Prudent Investor Rule and the development of the modern portfolio theory, Trustees now have great flexibility to invest aggressively and to improve the total return for both income beneficiaries and remaindermen. 2. TRADITIONAL TRUSTS Traditional trusts were known as income rule trusts. Under these trusts, the trustee held the principal and distributed the income. There was inevitable conflict between the income beneficiary who wanted trust assets invested to produce the highest possible income and remainder beneficiaries who wanted trust assets invested for [...]
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Filed under Estate Planning, Estate Planning, Library.
Tags: Estate Planning, Special Needs Planning, Special Needs Trusts
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