There are questions that are naturally going to be asked about taxes when the subject of inheritance planning is being discussed. In this post we will look at them, and there is some good news to report, as well as some bad news. Regular Income Taxes Since the IRS wants you to report virtually every source of income, you may naturally assume that an inheritance would be taxable income. Surprisingly, you do not have to claim an inheritance when you file your annual tax returns. An inheritance … [Read more...] about Are Inheritances Subject to Regular Income Taxes?
They say that time marches on, and it stands still for no one. When you are a child, this is hard to wrap your head around, because time seems to move very slowly as you look forward to getting older. However, at some point in time, you see how true these statements actually are. If you are a parent in your own right, you watch your children as they start to come into their own as young adults. On the other end of the spectrum, you may also see that your parents are getting up there in years. … [Read more...] about Nursing Home Asset Protection: Advise Your Aging Parents
Children are naturally inquisitive, and they tend to ask a lot of questions. When you are a youngster and you engage your curious nature, your parents invariably answer many of the questions by saying "it all depends." This is the answer to many questions that people have about inheritance planning. In many cases, what would happen under various different circumstances will depend upon the actions that you take when you are involved in your inheritance planning efforts. With this in mind, let's … [Read more...] about Can My Son’s Creditors Take His Inheritance?
The legacy that you leave behind to your loved ones will be largely defined by the actions that you take along the way. If you have clear-cut objectives with regard to the things that you would like to be able to do for your loved ones, you have to take the right steps to make your legacy vision a reality. When you are thinking about the money that you will need for yourself when you are a senior citizen, you may envision the active years at first. Without question, you need to position … [Read more...] about Three Facts of Life That Can Impact Your Legacy
People who have not looked into the subject very deeply often make general assumptions about estate planning that are not accurate. There are those who think that you have two choices: a will, or a single type of trust. This is one misconception, and the other misconception is the notion that a trust can only be useful for extraordinarily wealthy people. In fact, there are numerous different types of trusts. One major distinction is the power of revocation. There are trusts that you can revoke … [Read more...] about What Type of Trust Should I Use?
You should gain an understanding of the probate process when you are devising your estate plan. This process can enter the picture when your assets are being transferred after you pass away. Property that was in your direct personal possession at the time of your passing would become probate property, and it could not be distributed to the heirs until after the estate was probated by the court. In the state of New Jersey, the probate administration process is efficient and streamlined, so it … [Read more...] about Probate Administration: Is It Always Required?
Many people are not aware of the existence of the probate process. When a will is used to direct distribution of property after someone dies, the court will probate a will. In the state of New Jersey where we practice law, the court that would be required to probate a will is the Surrogate's Court. The court would probate a will in accordance with state laws. Probate is a necessary and effective legal process in the state of New Jersey. However, after all, it is in fact a legal proceeding. The … [Read more...] about How Does the Court Probate a Will?
A revocable living trust can be a good choice as an asset transfer vehicle for a wide range of people, but it does not satisfy every single objective. We will examine the value of these trusts in this blog post, but first, we will look at the matter of matter of asset protection planning. Asset Protection Planning It is said that we live in a litigious society. Indeed, there are people out there who like to file lawsuits, especially if they feel as though the person they are targeting has a … [Read more...] about Asset Protection Planning and Living Trusts
When you work and you examine your pay statement, you invariably see this pesky FICA deduction. It can seem like money going out the window, but you do get something in return for your contributions if you are fortunate enough to attain senior citizen status. You earn retirement credits when you pay this tax. It is possible to earn up to four credits in a year, and once you have accumulated 40 credits, you will qualify for Medicare and Social Security as a senior citizen. Accumulating the … [Read more...] about New Jersey Medicaid Planning for Married Couples
Living trust attorneys help clients on a number of different levels. Before we get into the matter of estate administration, we should first explain why you may want to utilize a living trust as an alternative to a last will. Spendthrift Protections Most families are not perfect. You may have someone in your family who is not good at handling money. Plus, people who are generally levelheaded can sometimes make bad decisions when they experience a significant improvement in financial status. They … [Read more...] about Living Trust Attorneys & Estate Administration