Life insurance — a useful tool for estate planning and management
An Estate without funds can be very difficult to administer! If the estate’s assets include real estate or a business to be sold, substantial cash may be needed to pay property taxes or wind down the business. If the beneficiaries of the Estate are Class C (siblings) or Class D (all others), New Jersey Transfer Inheritance Tax will need to be paid unless the inheritance is small. Many...
The new New Jersey Uniform Trust Code and Special Needs Trusts
The new uniform trust code which goes into effect in New Jersey on July 17th has a section dedicated to “special needs trusts.” See NJSA 3B:31-37. The section concerns both first-party trusts (often called “Special Needs Trusts” or even “d(4)a trusts,” referring to the section of federal Medicaid law which authorizes them) and third party trusts (often...
Time marches on and the Trust in your Will may no longer be needed
Estate planning can be thought of as a life-long process. A young person may not have much in the way of worldly posessions, but may have particular opinions about who should make the medical and financial decisions for them if they become incapacitated. So a power of Attorney, health Care Directive and basic Will can be signed anytime starting at age 18. Later, you get into a relationship or...
Special Needs Trusts play Vital Role for SSI & Medicaid Recipients
A person with disabilities who is incapable of engaging in substantial gainful activity for self-support in the competititve workplace may be receiving Supplemental Security Income (SSI) and the Medicaid benefits for health care that accompany the SSI. http://www.state.nj.us/humanservices/dmahs/clients/medicaid/abd/index.html The person may reside in the community, in an assisted living...