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Estate planning is easier when you’re not dead

Dealing with the division of your estate and property can be emotionally draining for your loved ones when you pass away. If you haven’t carried out proper estate planning by this stage, your heirs can be faced with quite a daunting and unpleasant task. They may have to deal with unfair division of your property, excessive inheritance tax and a probate process which will have them tearing their hair out.

New Jersey estate planning attorneys are always advising clients to get their estate in order well in advance. Yes, you might have many happy and healthy years ahead of you, but wouldn’t you like to have the peace of mind that your descendants will receive their inheritance without a glitch and minimal estate taxes will be imposed? Having your financial matters in order is a major component that’s often overlooked when it comes to aging gracefully.

With the help of a professional NJ estate planning attorney you can ensure all your loose ends are tied up and that all your assets and property can be properly divided. With an estate plan in place the following details will be resolved for your beneficiaries:

  • The state of your finances at the time of death.
  • Information on all property you own.
  • Appointment of guardians for children who are minors.
  • What tax amounts you can expect to pay when transferring property to beneficiaries.

Estate planning services offered by NJ estate planning attorneys:

  • Identification of beneficiaries you wish to include.
  • Management of all legal proceedings with regards to the transfer of property to your beneficiaries. We will ensure your estate is divided according to your strict instructions.
  • Keep estate taxes to an absolute minimum.
  • Ensure any life prolonging medical care instructions that you have given are presented to the relevant medical parties and family members.

These are just a few of the ways in which we can help you to get your affairs in order while you are still able to.

Estate planning at SCC Legal

While it is not a fun prospect to think about your death and how your possessions will be dealt with, you still need to face the reality of death in your future. If you want to ensure that your heirs and loved ones have a simple process to go through, then hiring a compassionate and dedicated NJ estate planning attorney is the best course of action. Frank Campisano of SCC Legal provides an empathetic and professional estate planning process. With the help of him and his team you can expect for your loved ones to be able to gain access to their inheritance with relative ease.

There is simply nothing that you can do after death and we strongly advise all clients to take the time to make these decisions before it’s too late. Be in touch with us at SCC Legal for more assistance with your New Jersey estate planning.

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Revocable living trusts in New Jersey

The beneficiaries and heirs to your estate can suffer quite an overwhelming loss in the event of your death if you have not made arrangements for proper estate planning. A revocable living trust can help to ease some of the pain and burden during this particularly difficult time for your loved ones. Without such in place, your children can be faced with confusing and lengthy probate processes, hefty inheritance taxes, and even will contests.

There are various types of living trusts one can look into. There are two main types we see, revocable living trusts and irrevocable living trusts. As New Jersey estate planning attorney’s it is our duty to be familiar with all types. Federal laws that dictate the ins and outs of estate planning and taxation can be quite confusing and this is why it is essential you have a professional attorney on your side.

A revocable living trust is one that can be altered as time goes by. If you decide you want to change the beneficiaries or trustees, this can be quite easily and legally done. Irrevocable living trusts however cannot be changed once the document has been signed.

What are the benefits of a revocable living trust?

  • With such a trust you can avoid probate processes.
  • You can provide protection for property and assets handed over to certain beneficiaries. This is often the case if the beneficiaries are under age. The trust will ensure the inheritance is handled in a particular way.
  • Estate taxes can be reduced or eliminated due to living trusts being provided with certain deductions and credits that are allowed under tax laws.
  • Management of property upon incapacity. This means successor trustees can take over when you become incapacitated or resign.
  • A trust can avoid a will contest. This is possible as a will only takes effect after the death of the individual. A living trust is in action from the moment the documents are signed.

These are just a few of the reasons why we strongly feel you need to set in place a revocable living trust in New Jersey.

The role of an attorney in the estate planning process

Drawing up a living trust forms part of your estate planning and you should try to do this as early on as possible. Having a reputable and empathetic estate planning lawyer or elder law attorney on your side will mean that your heirs are assisted by a professional with their best interests at heart.

Frank Campisano of SCC Legal is more than just another attorney. He is dedicated to providing professional, compassionate and efficient elder law advice and estate planning assistance. He and his team are trusted and respected legal advisors in New Jersey, and for good reason. With Frank Campisano, your first consultation is always free and he welcomes you to take the time to discuss your particular situation with him at any time.

While it is unpleasant to think about the future in this light, it is better to be prepared than to leave your descendants in an uncomfortable situation.  We welcome you to chat to us at SCC Legal about your needs and requirements without delay.

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New Jersey Inheritance Tax

The confusion and frustration of having to deal with inheritance tax can be quite overwhelming when dealing with the loss of a loved one. Heirs can suffer quite a lengthy process and experience quite a financial loss if you have not properly planned your estate. Many people do not think of the taxes imposed and find out too late, which unfortunately can result in the heirs of the estate suffering.

In New Jersey receiving an inheritance doesn’t come without strings attached. If you take a quick overview of New Jersey inheritance tax you will find that tax is imposed on an estate when it is left to a descendant.

The state of New Jersey has a very low estate tax exemption of around $675,000.00, which would be adequate if only probate assets were considered legally part of a deceased’s estate.  Unfortunately non-probate assets are also included in a deceased’s estate and this is where inheritance tax can catch you out. Of course there are ways in which individuals can legally avoid New Jersey inheritance tax, if they take the time to implement proper measures before it’s too late.

Avoid inheritance tax with a marital trust

If you have been wondering how inheritance tax can be avoided, then marital trusts are the answer and have been for many people over the years, in New Jersey.

The allowances of a marital trust are as follows:

  • The trust makes arrangements for a portion of the deceased’s spouse’s estate to support the surviving spouse.
  • Certain assets are included in the surviving spouse’s estate.
  • The surviving spouse’s estate can avoid extensive tax liability if this trust is carefully constructed and managed.

Do I need a lawyer to assist with avoiding inheritance tax?

If you are unsure of the process and want assistance with understanding how much tax will be attached to your property and other assets then yes, you definitely need the assistance of a lawyer. An experienced lawyer can save your heirs the time and hassle of having to figure out what taxes are involved, or more distressing – losing a large chunk of their inheritance to tax. You can save time, frustration and money if you choose to hire a qualified Elder Law Attorney.

At SCC Legal, Frank Campisano is dedicated to assisting clients with their estate planning needs. He is a compassionate Elder Law attorney and will professionally advise you on the best course of action at all times. He and his team are empathetic to your needs and situation and are trusted legal advisors in the New Jersey area.

At SCC Legal we are confident we can minimize the amount of New Jersey inheritance tax imposed upon an estate by providing a professional estate planning service and drafting a marital trust fund that will protect the deceased’s estate.

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Are You a Trust Fund Baby?

Well if you are, I’m jealous!  Being a trust fund baby typically means you will not need to worry about making money of your own during your life. Your wealthy parents may have set up a trust fund of some type for you which was handed over to you when you reached a certain age, or a certain incident occurs (often the death of a parent or family member).

So what does a trust fund of this type consist of? Well, it can be anything from cash and stocks to property and various other financial products. Of course the fund isn’t just paid out to a trust fund baby. In most instances strict terms are attached so that a certain amount is paid out on a monthly or annual basis to the beneficiary to ensure financial security over the long term. Usually general living expenses, education and similar are paid from this fund.

How do trust funds of this type work?

A trust fund baby is very fortunate in that the person setting up the fund has planned and prepared well in advance for their financial security. Generally the fund is set in place and a trustee, who is responsible for managing the trust fund and ensuring it is being conducted according to the terms of the trust and also in the best interests of the beneficiary, is appointed. The trustee is usually a legal entity such as the family lawyer or someone close to the family.

The trustee of the fund has certain responsibilities:

  • Ensuring tax returns are filed.
  • Compiling and presenting financial reports to the grantor.
  • Approving the withdrawal and use of funds by the beneficiary.

As a trust fund baby you will need to be in touch with your grant trustee and the legal or financial entities involved in the management of the fund in order to benefit. You will usually be advised of your fund by the grantor, or you will be informed via someone’s will after the event of their death.

How an Attorney can help you create your own Trust Fund Babies!

If you are a wealthy individual with significant assets to pass on, establishing a trust fund for your dependents is an absolutely essential part of your inheritance and estate planning. And while the common meaning of trust fund babies is sometimes equated with less than complementary characteristics, you can set up your trust fund in an infinite variety of ways so your children don’t become too spoiled.

In all scenarios involving trust fund creation or gaining access to one, hiring a estate planning attorney who is familiar with trusts is essential. For more information on how to start a trust fund or gain access to one, take the time to chat with us at SCC Legal. Your initial consultation is always free.

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What is a living will?

A living will is slightly different from your last will and testament. This particular type of will is designed for those who are receiving medical treatment or will in the future, and want to be able to express their desires regarding treatment when they are no longer able to speak for themselves. This is often referred to as an “advanced directive” and usually dictates that an individual does not consent to artificial life support when dying/after an operation/when involved in an accident and so on.

The living will is usually signed in duplicate and at least two witnesses are required. It is important to ensure you let your doctors and family members know of this particular will and where to find it in the event of something happening to you. It is vitally important to have one of these wills in place if you want your loved ones and health care providers to be advised of your wishes when it comes to life prolonging medical treatment.

Setup a living will – New Jersey residents

In New Jersey, you can actually download a form called an “Instructive Directive” from the State of New Jersey Department of Health’s Website. You will see a variety of sections that need to be completed and it is strongly recommended you make use of a lawyer to assist you with completing each section correctly and with enough detail. Alternatively your lawyer can draw up all the paperwork involved for you.

Of course the requirements for a living will are different in each state, which is why it is vitally important to have a lawyer involved in the drawing up of the will. Most elder law legal practices will include a living will as part of their estate planning package, much the same as we do at SCC Legal.

Take the time to discuss your legal needs and requirements with us at SCC Legal and we will insure you are assisted every step of the way.

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Why Do I Need To Establish Legal Guardianship?

Have you given much thought to the welfare of your children should you pass away? Are you taking care of elderly or long term disabled individuals? What will happen to them? Who will look after them? Many people don’t give this enough thought and fail to plan, but you can turn that around. Legal guardianship arrangements are legally binding and by ensuring you have planned for your children’s or dependents lives after your death. This is especially important for children, by doing this properly you can safeguard them from becoming a part of the government adoption/foster care system, a place you really don’t want them to end up.

In the state of New Jersey, the court allows for a parent of a minor to designate or propose legal guardianship of minors in the event of their death (death of both parents) as long as the court approves.

What does legal guardianship mean?

If someone has legal guardianship of your children when you die, it means they will be responsible for their well-being and financial interests. Plainly put, they will become your child’s parents in many respects of the term and have the authority to make decisions which will affect the minor’s life (which will hopefully be in their best interests).

The best way to safeguard your children from becoming part of the government system is to ensure you establish legally binding guardianship for all dependents. Hand in hand with this is having estate planning and a will set in place as early in your life as is possible. This will ensure your property and children will be properly taken care of in the event of anything untoward happening to you.

By having a legal guardianship established, and a last will and testament in place, you can avoid having a court appointed executor or administrator tending to your estate (and your children) as they see fit.

How does an Elder Lawyer Help Setup a Legal Guardianship?

At a minimum, a good elder lawyer will help you draw up the legal documents that establish an ironclad plan for the care of your minor children or other dependents when you die. A really good elder lawyer will help you work through your personal concerns as a trusted adviser and expert so that you are sure all options for care have been considered when designating a legal guardian. This is probably even more important than the legal paperwork, and is something we pride ourselves on, no matter how long it takes to figure out.

Frank Campisano and the team at SCC Legal have established legal guardianships for concerned families and individuals in every possible situation. Don’t leave this all important situation to the winds of chance.  Call us today.

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New Jersey Probate Court

The Probate Court of NJ and its processes can be a confusing and frustrating exercise for families already dealing with the loss of a loved one. Heirs can be forced to wait months, even years to get final disposition of the estate, even when a proper will exists. Your goal in your family’s estate planning is to arrange and legally document the distribution of all assets to insure that the absolute minimum time is spent in probate, and that all the heirs get their inheritances as soon as possible. Only in this way can families put this difficult period behind them and get on with their lives.

What is the NJ Probate Process?

Probate is a legal process whereby a deceased’s will and testament is proven to be a legal and official document. This has to be done before the estate can be handed over to the various beneficiaries or descendants. During this process, it is the duty of the court to ensure the following are observed:

  • The correct version of the will is received and presented to those concerned while adhering to the correct probate process.
  • Listen to objections regarding the will.
  • All creditors of the deceased have been compensated. Especially the taxes due the government…  Some say this is the primary reason for the length of the probate process (-:
  • All remaining property is distributed to the designated beneficiaries according to the terms and conditions of the will.

What happens if someone dies without having a will in place?

If your loved one has passed on without having a will in place, they are said to have died “intestate.”  When this happens, a court appoints an individual called an Administrator to handle and distribute the estate legally.

The NJ probate process ensures all probate cases (this is where the will needs to be ascertained as original and legal) need to go through the surrogate court which is located within the county where the individual has died. This court distributes the required legal documentation either for an Administrator or an Executor to deal with the proceedings (a descendant who can handle the affairs of the estate).

Do I need a NJ Probate Lawyer to represent me through this process?

It really depends on how complex the estate is, how clear the Will is, and how many individuals are designated heirs.  In a very simple situation with one hier and a proper will in place, an astute individual could probably navigate the process.  But mistakes in filing documents, providing various proofs, and dealing with the taxation issues can cost you thousands, not to mention the time and experience it requires to get it done quickly and correctly. Small mistakes made providing information can result in large delays, after all we’re dealing with the government here.  An experienced probate lawyer can save you time, money, and aggravation through this process, regardless of the size or legal condition of the decedent’s estate. For these reasons, the vast majority of people choose to hire a qualified elder law attorney or probate lawyer.

Frank Campisano of SCC Legal is dedicated to the practice of elder law including acting as a probate attorney.  He can assist with complete estate planning processes in New Jersey and will ensure you are professionally advised on the probate process and what is involved. Whether you would like to properly plan to pass your estate onto your children, or if you are trying to sort out the estate of a deceased loved one, Frank and his team are empathetic trusted advisors and that makes all the difference.

 

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Avoidance of NJ Estate Taxes Through Marital Trusts

by Frank Campisano

New Jersey residents are generally unaware of the potential for the assessment of New Jersey estate taxes on their estates.   Although the current Federal exemption of $5,250,000.00 is more than adequate to shield most estates from Federal estate taxes, New Jersey has a relatively low estate tax exemption of $675,000.00.  At first blush, the New Jersey exemption of $675,000.00 also appears to be an adequate shield for most middle and upper middle income families until one undertakes a close examination of the assets which comprise a decedent’s gross estate.  A common misconception is that only traditional probate assets (e.g., assets passing under a Last Will & Testament) are included in one’s gross estate.  However, non-probate assets passing through beneficiary designations on contractual instruments such as investment accounts, IRAs, and Certificates of Deposits, which are termed “non-probate assets”, are also included in a decedent’s gross estate.  Moreover, all insurance proceeds or death benefits passing under life insurance policies owned by the decedent are also includable in the decedent’s gross estate even though they too pass through beneficiary designations rather than by a Will.

Although estate assets are also shielded by an unlimited spousal exemption, far too few people in New Jersey consider the impact of New Jersey estate taxes when both spouses ultimately die and leave their combined estates to the couple’s children.  For example, if the husband dies his estate will pass to the wife tax free under the marital exemption.  When the wife ultimately dies, however, her estate which is comprised of both her and her husband’s assets will then pass to the couple’s children.  If the combined estates of both spouses exceed $675,000.00, New Jersey will assess an estate tax on transfers to the couple’s heirs.   The failure to consider the tax consequences on the “second spouse to die”, coupled with the misconception regarding the inclusion of non-probate assets in the gross estate often lead to the payment of estate taxes which could have been avoided through effective estate planning.

A fundamental technique utilized by estate planning professionals to limit both Federal and New Jersey estate taxes involves the use of marital trusts.  A marital trust allows a portion of a spouse’s estate to support the surviving spouse, but exclude certain assets from being included in the surviving spouse’s estate.   A carefully crafted and funded marital trust will thus save the surviving spouse’s estate from significant estate tax liability

At Sedita, Campisano & Campisano, we provide effective estate planning to suit your family’s needs.  We are experienced in drafting and funding marital trusts which can minimize the amount of Federal and New Jersey estate tax liability.  We will review your financial situation and carefully formulate an estate plan that best suits your particular needs.

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MEDICAID – The New Long Term Care Program for the Middle Class

By necessity, Medicaid, which was intended to provide assistance to impoverished citizens, has become the default long-term care insurance for the middle class.

medicaidConsider this: The average cost of institutionalized nursing care in New Jersey is between $7,500.00 and $12,000.00 per month.  Contrary to popular belief, Medicare does not provide custodial long-term care coverage.  Instead, Medicare merely provides up to 100 days of care in a skilled nursing facility per each illness.  The vast majority of nursing home care, however, is “custodial” not requiring skilled nursing care.  Medicare therefore covers only a very small percentage of long-term care. Unfortunately, people of moderate means are unable to afford long-term care insurance policy which can, at least in part, cover nursing home costs.   Most people therefore end up paying for long-term care out their life savings.  It is therefore essential that middle class families with aging parents start planning for Medicaid eligibility should the need for long-term care arise.  This need is particularly acute for individuals with a family history of Alzheimer’s and dementia, since 70% of nursing home patients suffer from these illnesses.

Medicaid is a public assistance program jointly funded and administered by the Federal government and the individual states.  Presently, a Medicaid eligible applicant must have below $2,000.00 in countable assets and below $2,130.00 in monthly income.  Medicaid, however, affords married couples with the ability to retain additional assets for the community spouse.  The present “community spouse resource allowance” is $115,900.00.  The basic strategy for Medicaid eligibility planning is to spend down the patient’s financial resources within Medicaid’s asset and income limits. The Deficit Reduction Act of 2005, however, materially impacted Medicaid eligibility strategy by imposing a five (5) year look back period on all transfers where less than fair value is received. Medicaid will view “less than fair value transfers” as gifts, which must be returned to the patient before it will deem them eligible for long-term care benefits. Accordingly, the need for seniors to engage in long-term planning is essential to ensure eligibility for long-term care benefits without any unfortunate delays in receiving benefits.

Medicaid eligibility requirements are complicated and can present a mine field of costly errors for the inexperienced.  A misstep can lead to financially devastating penalties that can delay Medicaid eligibility for benefits for many months while nursing home expenses continue to mount at an average cost of $10,000.00 per month.  There are also many instances when an applicant has either overlooked a particular transfer or has made a gift to a charity or family member without considering its impact on eligibility.  It is therefore wise to proceed through the maze of eligibility requirements with experienced legal counsel.

At Sedita, Campisano & Campisano, we can guide you through the complexities of the State Medicaid eligibility requirements.  We can assist you and your loved ones in formulating effective strategies to pay for long-term care should the need arise.   It is never too late to engage in emergency Medicaid planning or too early to engage in long term care planning.

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Estate Planning

A comprehensive estate plan resolves a number of legal questions that arise whenever anyone dies: What is the state of their financial affairs? What real and personal property do they own? Who gets what? Does a personal guardian need to be appointed to care for minor children? How much tax will need to be paid in order to transfer property ownership?

An estate plan can and should accomplish the following:

  • Identify the family members and other loved ones that you wish to receive your property after your death.
  • Ensure that your property will be transferred to those you have identified, as quickly and with as few legal hurdles as possible.
  • Minimize the amount of taxes that will need to be paid in order for your property to pass to others after your death.
  • Avoid the time and costs associated with the probate process by utilizing estate planning devices like living trusts and “payable on death” bank accounts.
  • Dictate the kinds of life-prolonging medical care you wish to receive should you be unable to make your wishes known when the time comes.

When your hard earned assets are at stake, then estate planning can not wait until the last minute.

Call us now for a free, no-obligation discussion of your estate planning needs.

(973) 787-0299

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