Free Wills and Power of Attorney available for Princeton University covered employees under Metlife Legal Plan

 

Free Wills and Power of Attorney available for Princeton University covered employees under Metlife Legal Plan

The Law Office of Kenneth Vercammen serves as a New Jersey Access Attorney for Metlife Legal HYATT Plan and several other major national legal service plans. We prepare Wills, Powers of Attorney and Living Wills for members. 

 

      For covered Princeton University employees, they will be entitled to a free Will for them and spouse, Power of Attorney for husband & wife, Living Will husband & wife, Testamentary Trust within a Will for minor children.  There is also representation for certain Traffic Offenses in NJ,

 

 

  Why a Will is essential to persons with children or who own property

      

     If you leave no Will or your Will is declared invalid because it was improperly prepared or is not admissible to probate:

 

* State law determines who gets assets, not you

* Additional expenses will be incurred and extra work will be required to qualify an administrator-Surety Bond, additional costs and legal fees

* Judge determines who gets custody of your children

* Possible additional State inheritance taxes and Federal estate taxes

*  If you have no spouse or close relatives the State may take your property

* The procedure to distribute assets becomes more complicated 

*  It may also cause fights and lawsuits within your family

     When loved ones are grieving and dealing with death, they shouldn’t be overwhelmed with financial concerns.  

 

     Who don’t you want to receive your assets?

 

     Who is not the best choice to raise your children, or safeguard your children's money for college?   Do you want children, or grandchildren, to get money when they turn 18?  Will they invest money wisely, or go to Seaside and play games?

 

 

What HYATT Metlife members can do to get started… 

 

HYATT Metlife members should call HYATT Metlife legal at 800.821.6400to obtain an authorization numbers for each Will, Power of Attorney, Codicil and Living Will you want. 

Members can also obtain authorization numbers online at https://members.legalplans.com/Home/

 

You can always call HYATT Metlife Legal Plans Monday through Thursday 8-7 and Friday 8-6 Eastern Time for assistance and information about your legal plan.

 

    After obtaining an authorization number, call Kenneth Vercammen’s Law Office for a free confidential consultation and preparation of Wills and estate planning documents- all free to HYATT Metlife members

A Will must not only be prepared within the legal requirements of the New Jersey Statutes but should also be prepared so it leaves no questions regarding your intentions.

 

WHY PERIODIC  REVIEW IS ESSENTIAL

     

     Even if you have an existing  Will, there are many events that occur which may necessitate changes in your Will.  Some of these are:

     

* Marriage, death, birth, divorce or separation affecting either you or  anyone named in your Will

 

* Significant changes in the value of your total assets or in any particular assets, which you own

     

* A change in your domicile

     

* Death or incapacity of a beneficiary, or death, incapacity or change in residence of a named executor, trustee or guardian of infants, or of one of the witnesses to the execution of the Will

 

* Annual changes in tax law

 

* Changes in who you like

 

If you have a current Will, can you change it the next year?

     

     Yes.  A Will may be modified, added to, or entirely changed at any time before your death provided you are mentally and physically competent and desire to change your Will.  You should consider revising your Will whenever there are changes in the size of your estate. For example, when your children are young, you may think it best to have a trust for them so they do not come into absolute ownership of  property until they are mature.  Beware, if you draw lines through items, erase or write over, or add notations to the original Will, it can be destroyed as a legal document.  Either a new Will should be legally prepared or a codicil signed to legally change  portions of the Will.

 

     THE FOLLOWING IS A SAMPLE OF A VARIETY OF CLAUSES AND ITEMS WHICH  KENNETH VERCAMMEN’S LAW OFFICE OFTEN INCLUDES IN A WILL

 

1ST:  DEBTS AND TAXES

2ND: SPECIFIC BEQUESTS

3RD:  DISPOSITION TO SPOUSE

4TH: DISPOSITION OF REMAINDER OF ESTATE

5TH: CREATION OF TRUSTS FOR SPOUSE

6TH: CREATION OF TRUST FOR CHILDREN

7TH: OTHER BENEFICIARIES UNDER 21

8TH: EXECUTORS

9TH: TRUSTEES

10TH: GUARDIANS

11TH: SURETY OR BOND

12TH: POWERS 

13TH: AFTERBORN CHILDREN

14TH: PRINCIPAL AND INCOME

15TH: NO ASSIGNMENT OF BEQUESTS

16TH: GENDER

17TH: CONSTRUCTION OF WILL

18TH:  NO CONTEST CLAUSE

    

Kenneth A. Vercammen is an Edison, Middlesex County, NJ trial attorney who has published125 articles in national and New Jersey publications. He is co-chair of the Probate & Estate Planning Committee of the American Bar Association, Solo Division. He often lectures to trial lawyers of the American Bar Association, New Jersey State Bar Association and Middlesex County Bar Association.  

He is a highly regarded lecturer on litigation issues for the American Bar Association, ICLE, New Jersey State Bar Association and Middlesex County Bar Association. New Jersey Law Journal, ABA Law Practice Management Magazine, and New Jersey Lawyer have published his articles.  He is the Editor in Chief of the New Jersey Municipal Court Law Review. Mr. Vercammen is a recipient of the NJSBA- YLD Service to the Bar Award.

In his private practice, he has devoted a substantial portion of his professional time to the preparation and trial of litigated matters.  He has appeared in Courts throughout New Jersey several times each week on Criminal personal injury matters, Municipal Court trials, and contested Probate hearings.  He serves as the Editor of the popular legal website www.njlaws.com

KENNETH VERCAMMEN & ASSOCIATES

ATTORNEY AT LAW 

2053 Woodbridge Ave.

 Edison, NJ 08817 

(Phone) 732-572-0500 

(Fax) 732-572-0030 

website: www.njlaws.com

 

 

 

Stelton Senior Club meeting Wills & Estates Update Seminar May 2 at 12:00pm-1:00 Monday Edison Senior Center 2963 Woodbridge Ave, Edison, NJ 08837

 Stelton Senior Club meeting

Wills & Estates Update Seminar

May 2 at 12:00pm-1:00    Monday

   Edison Senior Center    

2963 Woodbridge Ave, 

Edison, NJ 08837

    Join the Stelton Senior Club to attend

    Wills & Estate Administration-Protect Your Family and Make Planning Easy 

Speaker: Kenneth Vercammen, Esq. Edison, NJ (Author-Wills and Estate Administration by the ABA)

    Main Topics:

1.       Handling Probate without going to New Brunswick Surrogate

2.       Dangers If You Have No Will or documents invalid

3.       Getting your Estate Planning Documents done when you can’t go into a law office

4.       Changes in Estate Tax

5.       Power of Attorneys recommendations

6.       Living Will & Advance Directive for Medical Care

    COMPLIMENTARY MATERIAL: Brochure on Wills, “Answers to Questions about Probate” and Administration of an Estate, Power of Attorney, Living Wills, Real Estate Sales for Seniors, and Trust.

https://www.facebook.com/events/517625769744288

 

Do you have a current will?  Have you ever had to deal with the probate process? The Edison law offices of Kenneth Vercammen will join the library this evening to hold a workshop on the latest legal issues regarding Estate Planning and Probate. Remember, the laws are constantly changing and you should be aware of what is new and how it will affect you and your family.  In a recent newsletter, lawyer Kenneth Vercammen tells us to "beware of the inexpensive forms you can get online."  He warns, "Often cheap online forms are rejected" in the probate process.  a hear what you need to know when considering how to legally protect your assets for your family. 

 

Free Will Seminars and Speakers Bureau for Groups

SPEAKERS BUREAU

         At the request of senior citizen groups, unions, and Middlesex County companies and organizations, the " Speakers Bureau " is a service designed to educate citizens about how laws affect their lives and how the judicial system operates.  We have attorneys available to speak to businesspersons, educational, civic and social organizations on a wide range of topics during business hours.  If your organization in Central NJ would like to schedule a Will & Estates seminar, call Kenneth Vercammen’s Law Office at 732-572-0500 or email Vercammenlaw@njlaws.com

 

     10 years ago the AARP Network Attorneys of the Edison/Metuchen/Woodbridge area several years ago established a community Speakers Bureau to provide educational programs to AARP and senior clubs, Unions and Middlesex County companies. Now, Ken Vercammen, Esq. and volunteer attorneys of the Middlesex County Estate Planning Council have provided Legal Rights Seminars to hundreds of seniors, business owners and their employees, unions, clubs and non-profit groups. http://www.njlaws.com/freeseminars1.html

 

Details on free programs available

    These quality daytime educational programs will educate and even entertain. Clubs and companies are invited to schedule a free seminar. The following Seminars are now available: 

1. WILLS & ESTATE ADMINISTRATION-PROTECT YOUR FAMILY AND 

MAKE PLANNING EASY 

2. POWER OF ATTORNEY to permit family to pay your bills if you are temporarily disabled and permit doctors to talk with family 

       All instructors are licensed attorneys who have been in practice at least 25 years. All instructors are members of the American Bar Association, New Jersey 

State Bar Association, and Middlesex County Bar Association. All programs include free written materials. 

    You don't have to be wealthy or near death to do some thinking about a Will. Here is your opportunity to listen to an experienced attorney who will discuss how to distribute your property as you wish and avoid many rigid provisions of state law. 

   Topics discussed include: Who needs a Will?; What if you die without a Will (intestacy)?; Mechanics of a Will; "Living Will"; Powers of Attorney; Selecting an executor, trustee, and guardian; Proper Will execution; Inheritance Taxes, Estate Taxes $14,000 annual gift tax exclusion,  Bequests to charity, Why you need a "Self-Proving" Will and Estate Administration/ Probate.

 

       Sample materials: Hand-outs on Wills, Living Wills/Medical Advance Directive, Power of Attorney, Probate and Administration of an Estate, Real Estate, Working with your Attorney, Consumers Guide to New Jersey Laws, and Senior Citizen Rights. 

 

SPEAKERS BUREAU 

     At the request of senior citizen groups, unions, and Middlesex County companies and organizations, the " Speakers Bureau " is a service designed to educate citizens about how laws affect their lives and how the judicial system operates. We have attorneys available to speak to businesspersons, educational, civic and social organizations on a wide range of topics during business hours.

     In today's complex world, few people can function successfully and safely without competent legal advice. In order to insure your estate plans are legally set up, you need to know exactly where you stand so that you can avoid possibly catastrophic mistakes impacting both you and your family. 

 

       About the speaker: Kenneth A. Vercammen is a trial attorney in Edison, NJ. We is the author of the American Bar Association’s book “Wills and Estate Administration”

He is co-chair of the ABA Probate & Estate Planning Law Committee of the American Bar Association Solo Small Firm Division.  He is a speaker for the NJ State Bar Association at the annual Nuts & Bolts of Elder Law & Estate Administration program. 

He was Editor of the ABA Estate Planning Probate Committee Newsletter. Mr. Vercammen has published over 150 legal articles in national and New Jersey publications on litigation, elder law, probate and trial topics. He is a highly regarded lecturer on litigation and probate law for the American Bar Association, NJ ICLE, New Jersey State Bar Association and Middlesex County Bar Association. His articles have been published in noted publications included New Jersey Law Journal, ABA Law Practice Management Magazine, and New Jersey Lawyer. He established the NJlaws website www.njlaws.com which includes many articles on Estate Planning, Probate and Wills. He is a member of the AARP and often lectures to groups on the importance of an up to date Will, Power of Attorney and Living Will.

 KENNETH  VERCAMMEN & ASSOCIATES, PC

ATTORNEY AT LAW

2053 Woodbridge Ave.

Edison, NJ 08817

(Phone) 732-572-0500

 (Fax)    732-572-0030

www.njlaws.com 

 

 

ABLE ACT- INFORMATION ABOUT TAX-FREE SAVING ACCOUNTS FOR DISABLED INDIVIDUALS

 ABLE ACT- INFORMATION ABOUT TAX-FREE SAVING ACCOUNTS FOR DISABLED INDIVIDUALS

The Stephen Beck, Jr., Achieving a Better Life Experience Act (ABLE) became law on December 19, 2014. The law aims to ease financial strains faced by individuals with disabilities by making tax-free saving accounts available to cover qualified disability expenses.

IMPORTANT FACTS TO KNOW ABOUT THE ABLE ACT

The designated beneficiary of an ABLE account is the eligible individual who owns the ABLE account. He or she must be:

eligible for Supplemental Security Income (SSI) based on disability or blindness that began before age 26;

entitled to disability insurance benefits (DIB), childhood disability benefits (CDB), or disabled widow’s or widower’s benefits (DWB) based on disability or blindness that began before age 26; or

someone who has certified, or whose parent or guardian has certified that he or she met the criteria for a disability certification before age 26.

An eligible individual may have only one ABLE account.

A contribution is the deposit of funds into an ABLE account. Any person may contribute to an ABLE account for an eligible beneficiary. Typically, contributions for an ABLE account may not exceed the annual gift tax exemption ($15,000 in 2021). However, if the beneficiary is working, and they or their employer is not contributing to a retirement plan, they may contribute an additional amount equal to the lesser of their annual gross income or the individual Federal Poverty Level which is $12,760 in the continental US, $15,950 in Alaska, and $14,680 in Hawaii.

A distribution is the withdrawal from an ABLE account.  Distributions are only to or for the benefit of the designated beneficiary. 

A person with signature authority can establish and control an ABLE account for a designated beneficiary who is a minor child or is otherwise incapable of managing the account.

Qualified disability expenses (QDE) are expenses made for the benefit of the designated beneficiary and related to his or her disability, including, but not limited to:

Education;

Housing;

Transportation;

Employment training and support;

Assistive technology and related services;

Health;

Prevention and wellness;

Financial management and administrative services;

Legal fees;

Expenses for ABLE account oversight and monitoring;

Funeral and burial; and,

Basic living expenses.

A rollover is:

 the distribution of all or some of the funds from one ABLE account to the ABLE account of a member of the original designated beneficiary's family;or

A limited amount from a qualified tuition plan (also called a 529 plan) to the SSI applicant, recipient, or deemor’s ABLE account. Source https://www.ssa.gov/ssi/spotlights/spot-able.html

SSI Program

We disregard the first $100,000. Only assets above $100,000 count as a resource. If an ABLE balance exceeds $100,000 by an amount that causes you to exceed the SSI resource limit -- whether alone or with other resources, we suspend the SSI payment until the countable resources are below the allowable limit.

Medicaid Program

A beneficiary's Medicaid continues when an SSI recipient's ABLE account exceeds $100,000 by an amount that causes the recipient to exceed the SSI resource limit--whether alone or with other resources. The recipient retains eligibility for Medical Assistance (Medicaid) without a time limit as long as he or she remains otherwise eligible. If ABLE resources above $100,000 cause an individual to exceed the resource limit, then Medicaid continues uninterrupted. If non ABLE resources over $100,000 cause an individual to exceed the resource limit, Medicaid is suspended.

Medicaid Payback Provision

A portion or all of the balance remaining in the ABLE account of a deceased designated beneficiary must be distributed to a State that files a claim against the designated beneficiary or the ABLE account itself with respect to benefits provided to the designated beneficiary under that State's Medicaid plan. The payment of such claim (if any) will be made only after providing for the payment from the designated beneficiary's ABLE account of the designated beneficiary's funeral and burial expenses and all outstanding payments due for his or her other qualified disability expenses, and will be limited to the amount of the total medical assistance paid for the designated beneficiary after the establishment of the ABLE account over the amount of any premiums paid, whether from the ABLE account or otherwise by or on behalf of the designated beneficiary, to a Medicaid Buy-In program. After the expiration of the applicable statute of limitations for filing Medicaid claims against the designated beneficiary's estate, a qualified ABLE program may distribute the balance of the ABLE account to the successor designated beneficiary or, if none, to the deceased designated beneficiary's estate. Some States have taken steps to limit payback.

source https://www.ssa.gov/ssi/spotlights/spot-able.html

Frequently Asked Questions:

1. What is an ABLE account?

An Achieving a Better Life Experience (ABLE) account is a tax-advantaged savings account to which contributions can be made to meet the qualified disability expenses of the owner, or designated beneficiary. ABLE accounts receive favorable treatment and are excluded from resources in whole or in part, for purposes of certain means-tested Federal programs.

3. Who is eligible to own an ABLE account?

In order to be eligible to own an ABLE account, a person must:

be eligible for Supplemental Security Income (SSI) based on disability or blindness that began before age 26;

be entitled to Social Security Disability Insurance benefits (DIB), childhood disability benefits (CDB), or disabled widow’s or widower’s benefits (DWB) based on disability or blindness that began before age 26; or

have certified, or have a parent or guardian that has certified, that he or she met the criteria for a disability certification before age 26.

4. Do you have to provide proof of disability when opening an ABLE account?

Proof of disability is one of the criteria necessary to establish an ABLE account.  However, State ABLE programs determine what additional proof an individual must provide at account establishment and recertification.  In regard to proof of disability, the eligible person, or the eligible person’s authorized legal representative, certifies that the person:

is eligible for Supplemental Security Income (SSI) based on disability or blindness that began before age 26,

is entitled to Social Security Disability Insurance benefits (DIB), childhood disability benefits (CDB), or disabled widow’s or widower’s benefits (DWB) based on disability or blindness that began before age 26, or

meets the criteria for a disability certification before age 26.

The person must make the proof available for the IRS or the ABLE program if requested to satisfy the disability certification requirement.  Account owners must recertify their eligibility annually.

5. Who is the owner and beneficiary of an ABLE account?

The person with the disability is the owner and the beneficiary of the ABLE account. Therefore, you may see “owner” and “designated beneficiary” used interchangeably when you get information about ABLE accounts.

6. Do ABLE account balances count toward the SSI statutory resource limit?

Up to and including $100,000 in the person’s ABLE account is excluded from being treated as a countable resource for SSI benefits calculations.

7. What happens if an SSI recipient has more than $100,000 in an ABLE account?

Up to and including $100,000 in an ABLE account is disregarded.  Only assets above $100,000 count as a resource for SSI purposes.  If the ABLE account balance exceeds $100,000 by an amount that causes the SSI recipient to exceed the $2,000 resource limit, either alone or with other resources, SSI benefits will be suspended without a time limit (assuming that the individual otherwise remains eligible for SSI).  SSI benefits are reinstated for all months in which the ABLE account balance no longer causes the individual to exceed the resource limit and the individual is otherwise eligible for SSI.

8. Will Medicaid be suspended if the ABLE account exceeds $100,000?

No. Medicaid eligibility continues even if the ABLE account exceeds $100,000 by an amount that causes the recipient to exceed the SSI resource limit, whether alone or with other resources, as long as the individual remains otherwise eligible for SSI.

9. Who may contribute to an ABLE account?

Any person may contribute to, or deposit funds into, an ABLE account. (The Internal Revenue Code defines a person as including an individual, trust, estate, partnership, association, company, or corporation.)

11. How much may be contributed annually to an ABLE account?

Total contributions from all sources are limited to the annual gift tax exclusion. In 2022, the limit is $16,000.

12. Can more money be contributed to the ABLE account of a working account owner?

Yes. ABLE account owners who are employed, and for whom certain other contributions have not been made for the taxable year, may contribute additional funds to the accounts beyond the annual gift tax exclusion limit ($16,000 in 2022). The additional annual contribution may not exceed the federal poverty level for a one-person household for the calendar year preceding the calendar year in which the tax year begins (in your state of residence) or the designated beneficiary's gross wages for the taxable year, whichever is less.

14. What are Qualified Disability Expenses (QDE)?

Qualified Disability Expenses (QDE) are expenses that relate to the disability or blindness of the designated beneficiary and that are for the benefit of the designated beneficiary in improving health, independence, or quality of life. Such expenses include, but are not limited to, expenses related to the designated beneficiary’s: education; housing; transportation; employment training and support; assistive technology; healthcare, prevention and wellness; financial management and administrative services; legal fees; account oversight and monitoring; funeral and burial expenses; and basic living expenses.

15. Do distributions from ABLE accounts impact SSI benefits?

A distribution for a housing expense or for an expense that is not a QDE is counted as a resource, if the designated beneficiary retains the distribution into the month following the month of receipt. If the designated beneficiary spends the distribution within the month of receipt, there is no effect on SSI eligibility.

16. Who can open an ABLE account?

The ABLE account may be established by a person selected by the eligible individual; or If an eligible individual (whether a minor or adult) is unable to establish his or her own ABLE account, an ABLE account may be established on behalf of the eligible individual by: the eligible individual’s agent under a power of attorney or, if none, by a conservator or legal guardian; spouse, parent, sibling, grandparent of the eligible individual; or a representative payee appointed for the eligible individual by the Social Security Administration (SSA), in that order. An account opened by a representative payee appointed by SSA must meet all of the SSA account rules and requirements.

source https://www.ssa.gov/ssi/spotlights/spot-able.html?tl=0%2C2%2C3%2C4%2C5%2C6%2C7%2C8%2C9%2C10%2C11%2C12%2C13%2C14%2C15%2C16%2C17%2C18%2C19

TURNING HOUSE OVER TO CHILDREN OUTRIGHT SO YOU DON’T OWN IT ANYMORE

 TURNING HOUSE OVER TO CHILDREN OUTRIGHT SO YOU DON’T OWN IT ANYMORE

 

4 Benefits:                                      

 

(1) Avoid nursing home costs/ Medicaid getting the house if you have to go into nursing home AFTER 5 years

 

 

(2) Gives responsibility/ up keep to children

 

 

(3) Transfers property to avoid probate

 

 

(4) Children responsible for taxes

 

 

(5) If child dies, who gets the house

 

 

  Major Problems:

(1)         Children/ new owners can kick you out and sell the house

(2)         (2) If children don’t pay taxes or sewer charges, town can foreclose

(3)         (3) If there is lawsuit against children, lose house or lien

 

(4) Lose senior citizen and/or veterans tax, life line, homestead

 

 

(5) If child does not live in house,   high capital gains tax

(6) If child dies, the child’s heirs can kick you out and sell the house

 

 

Irrevocable Trust Trusts to avoid probate and possibly protect assets from creditors, Medicaid and nursing home

  Irrevocable Trust Trusts to avoid probate and possibly protect assets from creditors, Medicaid and nursing home

 

        Compiled by Kenneth Vercammen

 

Irrevocable Trust:

        An Irrevocable Trust is a Trust which cannot be changed or canceled once, it is set up without the consent of the beneficiary. Contributions cannot be taken out of the trust by the grantor. 

        Some older people set up Trusts to avoid paying look nursing home. There is a 5 year look back. Vercammen law office does not handle Medicaid issues since this pertains to Federal laws

 

        Irrevocable trusts offer tax advantages that revocable trusts don't, for example by enabling a person to give money and assets away even before he/she dies. Opposite of revocable trust.

 

        Probate is defined as the procedure by which an Executor proceeds to admit a Will to the jurisdiction of the Surrogate Court, which is proved to be valid or invalid. The term generally includes all matters relating to the administration of estates.  There are instances where Surrogate Court monitoring of the estate is desirable.  Much has been written about the disadvantages of probate.  Following are just a few of the problems associated with probate and why certain people set up Trusts in addition to Wills.

 

Lack Of Privacy with Wills

        Documents filed with the Surrogate Court are public information.  They are available for inspection to anyone who asks. In large estates, which may require an accounting, your probate file will contain a complete list of all assets devised by your Will including business assets.  This lack of privacy may lead to problems among family members who now know the plan of distribution and may then contest any provisions with which they disagree.  Disinherited relatives and creditors are notified and given time by the Court to contest the Will distribution.  

 

Time Consuming

        The probate of an estate may take several months to several years to complete.  During that time family members may have to apply to the Surrogate Court for an allowance.

 

Fragmentation - Real Estate

        If you own real property in more than one state, probate rules must be followed in each state in which real property is located. The cost and time may be increased.

 

WHAT IS MEDICAID..........

        Medicaid is a Federal medical bills assistance program that pays medical bills for eligible, needy persons. It is administered by each state. All payments are made directly to the providers of medical and other health care services. The Medicaid-eligible person does not pay the health care provider for services. The only exception is a patient in a Medicaid-approved nursing facility who may be required to contribute part of his/her income toward the cost of care.

 

        It is important to note Medicaid typically has a lien on assets you own.

 

        Someone can avoid Medicaid and nursing home liens by setting up an Irrevocable Trust and waiting 60 months to apply for Medicaid. 

 

        What is a Revocable Living Trust 

        

       A Revocable Living Trust is a legal device that allows you to maintain complete control over your assets and avoids Probate.  However, a Revocable Trust does not reduce Estate Tax and does not protect your assets from nursing home fees.

        Because there is no probate of a Revocable Living Trust, your private financial matters remain private, there are no probate costs, no long delays and loss of control, and no fragmentation of the estate. However, since you still control the trust, it cannot shield assets from Nursing Home, Medicaid or Estate Taxes. To do that, you will need to hire an attorney to prepare an Irrevocable Trust. Fees are minimum $3,000- $5,000 for trusts.

 

        A Revocable Living Trust can easily be structured to automatically create separate Trusts upon the death of either your spouse.  Here's how it works.  If the wife dies first, the husband has total control of his Trust. Also, for the remainder of his life, he receives all income from her Trust and has the use of the assets whenever needed for living expenses.  When he dies, each Trust will claim its tax exemption, and some will go tax-free to their children, or any other beneficiary they designate, without having to go through probate. 

  http://www.njlaws.com/trust_v__wills.htm

 

 

You Maintain Complete Control Over Your Property In a Revocable Living Trust 

        The principle behind a Revocable Living Trust is simple.  When you establish a Living Trust, you transfer all your property into the Trust, and then name yourself as trustee, or you can name you and your spouse as co-trustees of the Trust.  The trustees maintain complete control over the property, the same control you had before your property was placed in trust  You can buy, sell, borrow, pledge, or collateralize the trust property.  You can even discontinue the Trust if you choose.  That is why it is called a "Revocable" Living Trust. We  will explain the "Irrevocable Trust" at the end of the  article.

 

Transferring Property Into the Trust

        The transfer of title to property into the Trust is a relatively simple matter when you hire an attorney. Anywhere you have assets, you will get help in transferring your property into the Trust.  Your attorney, securities investor, etc., will provide you with assistance needed to transfer your property into your Revocable Living Trust.  Your attorney will provide the information and assistance you need to properly fund your Trust.

 

Complete Privacy  

        Probate records are public, your Trust documents are private.  A Trust will safeguard the privacy of your family and your private financial matters.

 

Naming A Trustee

        Most people name themselves and their spouse as the initial Trustees of a Revocable Trust. This is usually true unless one spouse is incapacitated to the point that he or she is not able to manage your assets in the same way you do now. However, for an Irrevocable or Medicaid trust, the spouse cannot be the trustee.

 

Gifts To Religious And Charitable Organizations

        Many people wish to give a portion or sometimes all of their assets to a religious or charitable organization in order to carry on the work of those organizations that have given them comfort or peace of mind during their lifetimes.  This is easily accomplished with a Revocable Living Trust.

 

        Current Federal tax laws allow you to leave an unlimited amount to a spouse, tax-free. When your spouse dies, the estate is entitled to a $12,500 tax exemption.  

 

WHAT IS CREDIT SHELTER TRUST IN A WILL?   The Credit Shelter Trust (sometimes referred to as a “Bypass Trust” or an “A/B Trust”) is a popular estate planning technique used by married couples with combined assets to avoid the NJ Estate Tax.           The purpose of the Credit Shelter Trust was to avoid the wasting of federal and state exemptions on the death of the first spouse. Instead of leaving all assets to the surviving spouse and thereby exposing the surviving spouse’s estate to more tax, Nursing Home & Medicaid issues, plus elective share by a future spouse, both spouse’s Wills are drafted to establish a Credit Shelter Trust to come into existence and be funded on the first spouse’s death.             In a typical Credit Shelter Trust, the surviving spouse is entitled to receive all of the income from the Trust for his or her lifetime, and has the right to demand principal distributions for his or her health, education, support and maintenance in his or her accustomed manner of living. Distributions in excess of that standard require the cooperation of a Co-Trustee – often an adult child of the surviving spouse or a trust department of a bank.          Since NJ is eliminating the NJ Estate Tax, a Testamentary Trust within the Will is still a useful device to help ensure children and grandchildren with receive money down the road. Otherwise, the surviving spouse can spend all the money in Atlantic City. The surviving spouse could also get remarried and do a new Will leaving all assets to the new spouse. Many families want to protect at least some of the money from wasteful spending or a new spouse.       If the Intervivos Trust technique is implemented as part of a Client’s Estate Plan, you can hire the attorneys for a separate fee  to assist the Client in re-titling his or her assets so that assets are available to fund the Credit Shelter Trust. Re-titling is necessary because most Clients tend to hold assets jointly with right of survivorship and assets must be titled individually in a person’s name in order to be eligible to fund a Credit Shelter Trust. We work with a tax attorney to help our clients.

 

        Irrevocable Trust Accounts: Irrevocable trust accounts are deposits held by a trust established by statute or a written trust agreement in which the grantor (the creator of the trust - also referred to as a trustor or settlor) contributes deposits or other property and gives up all power to cancel or change the trust.

        An irrevocable trust also may come into existence upon the death of an owner of a revocable trust. The reason is that the owner no longer can revoke or change the terms of the trust. If a trust has multiple owners and one owner passes away, the trust agreement may call for the trust to split into an irrevocable trust and a revocable trust owned by the survivor. Because these two trusts are held under different ownership types, the insurance coverage may be very different, even if the beneficiaries have not changed.