In this Issue: 1. NJ Inheritance Tax must still usually be paid if assets are going to other than spouse, children, grandchildren.
2. Power of Attorney- Do not use a form purchased online.
3. Set up a Testamentary Trust in your Will for Protection for a second spouse to protect assets for children and grandchildren.
4. Federal Health Privacy Law (HIPAA)- Have a new Living Will prepared.
5. Always have proper Self-Proving Wills since witnesses often move or pass away, don't rely on cheap online forms.
6. VOLUNTEER INTERN WANTED - ABA Asst Editor of Books for Young Lawyers
7. Congratulations to Robert Adochio, Middlesex Bar Municipal Court Attorney of the Year.
8. Congratulations to Middlesex County's Anthony Ashnault, National champion in wrestling and 4 time NCAA All American.
9. April Upcoming Seminars / Programs
_______________________________________________________
1. NJ Inheritance Tax must still usually be paid if assets are going to persons other than spouse, children, grandchildren.
Separate from the Estate Tax, New Jersey imposes an Inheritance Tax on the estates of limited resident and nonresident decedents. The elimination of Estate Tax in NJ made no changes to the New Jersey Inheritance Tax.
Even if no inheritance tax due, a Tax Waiver on a house must still be obtained and filed if the house was not co-owned by the spouse. Your attorney will assist you by filing the mandatory Tax forms.
2019 INHERITANCE TAX RATES
Class A- children, grandchildren, parent: No tax is due
Class C: brothers, sisters
First $25,000.......................No tax is due
Next $1,075,000................ 11%
Next $300,000..................... 13%
Next $300,000..................... 14%
Over $1,700,000................... 16%
Class D [other people]
First $700,000......................... 15%*
Over $700,000......................... 16%
Class E- charities, non profits: No tax is due
2. Power of Attorney- Do not use a form purchased online.
A Power of Attorney should contain reference to the NJ statute requiring banks to honor the Power of Attorney. Section 2 of P.L. 1991, c. 95 (c. 46:2B-11). A NJ bank does not have honor a Power of Attorney without the NJ language. Also, if you or your representative move it is a good idea to have a new POA prepared since a bank may give your selected person a hard time if the address on their ID is different than the address on the POA.
3. Set up a Testamentary Trust in your Will for Protection for a second spouse to protect assets for children and grandchildren.
The Credit Shelter Trust (sometimes referred to as a "Bypass Trust" or an "A/B Trust") was a popular estate planning technique used by married couples with combined assets to avoid the NJ Estate Tax. A Testamentary Trust (sometimes referred to as a Will trust or trust under will) is a trust, which arises upon the death of the testator [person who signed the Will]. A Credit Shelter Trust is a type of Testamentary Trust.
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.
Even though NJ has eliminated 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. Also, if your spouse gets remarried and their new spouse has to go into a nursing home, your spouse may have to use some of your hard earned money to pay for the new spouse's expensive nursing home. Many families want to protect at least some of the money from wasteful spending or a new spouse. In a typical Will Testamentary 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 another trusted family member or friend.
If the Will Testamentary 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 Testamentary Trust. We work with a tax attorney to help our clients. Protect your money if you pass away and your spouse gets re-married or has to go into a nursing home.
Some persons even hire an attorney to set up a personal residence trust or irrevocable trust and have the assets taken out of your name and put into a trust or given to children and grandchildren in the trust. Minimum fees for trust are $3,000. This is not something a non-attorney can do on their own. It is also illegal for a non-attorney to provide legal advice or prepare most legal documents.
Beware of the "Elective share" rights of a new spouse. Have a Prenuptial Agreement if entering into a 2nd marriage
Currently, the new spouse who is not given money in a Will can challenge the terms of the Will. This is called "Electing against the Will by a spouse". A spouse could receive up to 1/3 of the estate, even if only married for 2 weeks. The spouse must file a Caveat or lawsuit in Superior Court. We suggest a formal prenuptial agreement in 2nd marriage situations. If there is no Will, the new spouse receives 50% of the estate even if only married three days.
4. Federal Health Privacy Law (HIPAA)- Have a new Living Will prepared.
The federal regulation known as the Health Insurance Portability and Accountability Act (HIPAA) was adopted regarding disclosure of individually identifiable health information. This necessitated the addition of a special release and consent authority to all healthcare providers before medical information will be released to agents and interested persons of the patients.
Any old Powers of Attorney, Living Wills, Revocable Living Trusts, and certainly all Medical Directives now require HIPAA amendments. After you sign the Living Will in your attorney's office, provide a copy to your doctor and family.
Powers of attorneys and Living Wills should be updated to reference this Federal reg. More information on the HIPAA law at http://www.njlaws.com/hipaa.html
5. Always have proper Self- Proving Wills since witnesses often move or pass away, don't rely on cheap online forms.
An old New Jersey Probate law required one of the two witnesses to a Will to travel and appear in the Surrogate's office and sign an affidavit to certify they were a witness. This often created problems when the witness was deceased, moved away, or simply could not be located. Some witnesses would require a $500 fee to simply sign a surrogate paper. My Grandmother's Will was not self- proving, and the witness to Will extorted a $500 fee.
The New Jersey Legislature later passed a law to create a type of Will called a "Self-Proving Will." In such a Will, the person for whom the Will is made must sign. Then two witnesses sign. Then the attorney or notary must sign; with certain statutory language to indicate the Will is self-proving. Beware of online documents not prepared by an attorney. Never use a cheap form on line. No one tries to do their own electrical work on their home anymore or change their own oil. Have a professional do it right.
When done properly, the executor does not have to locate any witnesses. This usually saves time and money. If your Will is not "self-proving" or if you are unsure, schedule an appointment with an estate planning attorney. Some law offices ignore the revised law, and fail to prepare self proving Wills. Do not use a law office that follows old methods and does not do a self-proving Will. Also make sure your Will includes a formal "no bond required" clause so the executor/ personal representative does not have to spend thousands of dollars being bonded.
Call the Law Office of Kenneth Vercammen at 732-572-0500 to schedule an in-office consultation.
6. VOLUNTEER INTERN WANTED - ABA Asst Editor of Books for Young Lawyers
We are helping the ABA re-write three well received books which help new & young lawyers and lawyers in transitional practice [ex- lost job in recession or law firm closed. 90% of the net profits go to the ABA and ABE American Bar Endowment.
You do not have to be a current student but do need to be able to be in Edison, NJ a minimum of ten hours per week.
ABA Books to be updated:
"Criminal Law Forms" American Bar Association 2013 500+ pages
"Smart Marketing For the Small Firm Lawyer" American Bar Association 2014 156 pages plus 700 pages on CD
"Wills and Estate Administration" American Bar Association 2015
You will be included in the book Forward for recognition of your work and will have a valuable addition to your resume.
Mail or fax cover letter and resume. Do not email.
Kenneth Vercammen Esq. Author
2053 Woodbridge Ave.
Edison, NJ 08817
PHONE 732-572-0500
(Fax) 732-572-0030
Volunteers will be invited to attend our NJ public events plus meet and network with the participants. Volunteers can also attend the ABA New York City meeting of the ABA Estate Planning, Probate & Trust Committee in May, 2019. Participants also can attend the summer The Annual Summer Networking Happy Hour is July 12, 2019 at Bar Anticipation
Other possible Duties
- Review and Revise Legal and Consumer Law Articles for Grammar and Punctuation
- Work as Assistant Editor of the New Jersey Municipal Court Law Review, which is distributed, for free to area Police, Judges, Prosecutors and other New Jersey professionals
- Prepare Correspondence to websites and New Jersey Media with Revised Articles
- Provide copies of published articles to
- Assist in Marketing projects
- Type Rough Draft Articles
- Gain some legal and publication experience
- Part-time volunteer, 10 hours per week required
- Fall and Spring Semesters available
Editor Kenneth A. Vercammen, Esq.
Author of 125 Legal Articles
This is an excellent opportunity to gain valuable experience as a volunteer intern and learn. Build your resume and obtain marketable skills. This will not be a brief writing and photocopying clerkship. For additional information on the Law Office, please visit the website at www.njlaws.com. This office is committed to excellence and service to clients and the community. Applicants must have attention to detail. Additional information on internship at
 8. Congratulations to Middlesex County's Anthony Ashnault, National champion in wrestling and 4 time NCAA All American. 
9. April Upcoming Programs / Seminar
April 4 Piscataway Library at 7pm Wills & Power of Attorney Seminar 500 Hoes Lane Piscataway NJ 08854 Free
April 8 Ethically Marketing Your Law Practice
Free for law student/ recent grad who helps with program. Save $200 New Jersey Law Center, New Brunswick 5:30 p.m. to 8:30 p.m.
This program will demonstrate proven techniques for promoting your practice while staying within the ethics rules whether you handle cases in Municipal Court or in other areas of law. Regular attendance is $200.
Featuring:
Carol Johnston, Esq., Supreme Court Clerk's Office, Trenton
April 9 Sayreville Public Library 6:30 Free
Sayreville Public Library 1050 Washington Road Parlin NJ 08859
April 11 East Brunswick Public Library 7pm Free
2 Jean Walling Civic Center East Brunswick, NJ 08816
April 15 Clara Barton Branch Library at 6:30 PM Monday Free
141 Hoover Avenue, Edison, NJ 08837
|
Friday, April 12, 2019
E558 1. NJ Inheritance Tax must still usually be paid. 2. Power of Attorney- Do not use a form purchased online. 3. Set up a Testamentary Trust in your Will for Protection for a second spouse. 4. Federal Health Privacy Law (HIPAA). 5. Always have proper Self- Proving Wills. 6. VOLUNTEER INTERN WANTED 7. Congratulations to Robert Adochio. 8. Congratulations to Anthony Ashnault. 9. April Upcoming Seminars / Programs
Subscribe to:
Posts (Atom)