The length of your life is going to be a big factor to consider when you are planning ahead with your elder years in mind. While no one has a clear view into the future you can examine longevity statistics to get some general ideas about the averages and go from there.

According to the 2010 United States Census Bureau’s compiled statistics the segment of the population that geriatric experts refer to as the “oldest old” (people who are 85 years of age and older) is growing more rapidly than any other.

Clearly when you reach your mid-to late 80s there is a good chance that you will either be residing in a nursing home or need nursing home care at some point in the future.

10% of the people who reside in nursing homes stay in the facilities for at least five years. Given the fact that the average charge for a year in a nursing home in New Jersey last year was over $100,000 (and it should be noted that costs are rising) this is something to take seriously from a financial planning perspective.

You can find out how long your life expectancy is given your present age by using this valuable tool that can be found on the Social Security administration website: Longevity Calculator

If you are concerned about the possibility of incurring significant long-term care expenses late in your life in light of the longevity statistics we are seeing we have prepared a report that you really must read. To gain access to your free elder law report click here: Paying for Long-Term Care

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

When you are thinking everything through in an effort to plan your estate properly you should consider the matter of your final arrangements.

Imagine the scenario that may exist after you pass away. Different family members may have different ideas with regard to the final arrangements.

Many families get along well and would have no difficulties coming to an agreement with regard to what is best. On the other hand, this is not always the case, and emotions can run high when people have just experienced the loss of a loved one.

To prevent any problems you can assert your own wishes regarding your final arrangements if you could include an authorization for final disposition when you are working with an estate planning attorney to draw up your estate planning documents.

With this authorization you name someone who would be empowered to make your final arrangements in a hands-on manner.

When you execute such an authorization your entire family will know who you have selected so there are not going to be any disagreements regarding who is in charge.

In addition to the selection of an individual to make preparations you can also state your specific funeral and burial or cremation preferences in writing. Your representative will know exactly how to proceed, and your family will know that things are being done in accordance with your wishes.

If you are interested in creating an authorization for final disposition get in touch with our firm for a free consultation. You can reach us electronically by simply completing the form that you see on this page: Free Central New Jersey Estate Planning Consultation

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

The so-called “fiscal cliff” included changes to the estate tax that would have been devastating for many. If no deal was made to avoid falling over the cliff in 2013 the estate tax exclusion would have been reduced to just $1 million. The maximum rate of the tax would have gone up from the 35% that was in place in 2012 to a staggering 55%.

After the crisis was averted via an 11th hour compromise we were spared the above fate.

Going forward in 2013 we have much of the same with a slight alteration. The estate tax exclusion has been set with a $5 million base that is adjusted for inflation. In 2012 this adjustment resulted in a $5.12 million exclusion. As of this writing the IRS has not determined the exact adjusted figure for 2013, but it will be somewhere in the vicinity of $5 million.

The maximum rate of the estate tax throughout 2012 was 35% as mentioned above. The fiscal cliff deal included an increase in the top rate of the federal estate tax to 40%. This also applies to the lifetime gift tax exemption and the generation-skipping transfer tax exemption.

One of the major positives that came about as a result of the compromise is the continued portability of the estate tax exclusion.

Let’s say that your spouse was to pass away without having utilized his or her exclusion. Prior to 2011 you could not use your deceased spouse’s exclusion. However, the exclusion was made portable as a result of the passage of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.

Under the terms of this new deal a surviving spouse can still use the exclusion that his or her deceased spouse was entitled to as an individual taxpayer.

To learn more about the estate tax and estate planning in general download our free report: New Jersey Estate Planning Report

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

Deciding to go into business for yourself is a very big step, and success takes a lot of careful and informed planning.

At the same time, once your business is on firm footing you have to ask yourself how you will be exiting the business, and this too is something that takes some intelligent planning.

You may love what you do and have no intention of retiring. Some people feel this way, and if you are one of them you will be more concerned about how you’re going to be passing along the business after you die or become incapacitated.

Perhaps a son or daughter or even a grandchild who has worked in the business would be a logical candidate to take over. If this is the case you must consider how you’re going to balance inheritances.

If you have other family members that you want to provide for and your largest asset is your business you may want to take out insurance policies to distribute among your other heirs.

Other individuals do not intend to work for the duration. They want to retire, and some will sell their businesses to finance their retirement years. If this is your intention you will want to prepare the business for sale eventually, and you may proceed differently along the way than you would if you were keeping the business in the family.

The best way to proceed with regard to small business succession planning is to sit down and discuss your vision for the future with a good estate planning lawyer. Our firm has a background assisting small business owners in the central New Jersey area, and we would be glad to provide you with a free consultation if you would like to devise a plan that leads to the fruition of your long-term goals.

We can be reached at (908) 222-8803.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

Incapacity planning is an important component to any comprehensive long-term plan. The fact is that people generally suffer some type of decline before passing away, and others become incapacitated due to accidents or unexpected catastrophic illnesses.

Given the fact that it is very possible that you will indeed become incapacitated at some point in time it is rather reckless to go through life without making any preparations for this contingency.

It should be noted that people are routinely living into their 80s and beyond these days, and some 40% of people who are at least 85 are suffering from Alzheimer’s disease. Of course this is not the only cause of incapacity, so we are talking about something that is quite relevant to all of us.

Advance health care directives are part of the plan. Durable powers of attorney are directives that you use to empower individuals that you select to make health care and financial decisions in your behalf if it becomes necessary.

There is also the matter of a HIPAA release. This acronym stands for the Health Insurance Portability and Accountability Act. This act prohibits the medical community from releasing health care records unless you have given someone authority to view them by signing such a release.

Your health care proxy is going to have to know your medical condition to be able to make decisions in your behalf so you would want to release the information to this individual.

It is also possible that he or she may have to bring these records to a physician who would determine whether or not you are truly incapacitated. The physician could not make a determination without access to the medical records.

If you have not yet planned ahead for the possibility of incapacity simply complete this form to request a free consultation:

Free Estate Planning Consultation

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

It is important to gain an understanding of the Medicaid program when you are planning ahead with the eventualities of aging. This is because Medicaid will pay for long-term care, but Medicare will not.

According to the United States Department of Health and Human Services 40% of people who reach the age of 65 are going to someday reside in a nursing home.

Of course the likelihood will rise as you get older.

These facilities are extremely expensive, and most people would find it very difficult to pay out-of-pocket. As a result, many individuals angle toward obtaining Medicaid eligibility as a way to pay for long-term care. In fact, the Medicaid program is paying for the nursing home care of most people who are residing in these facilities.

Though Medicaid is intended for people who have limited financial means you can retain some of your personal property and still qualify for eligibility. The limits have been adjusted for 2013 and we will share a few of them here.

The value of your home will not count toward Medicaid eligibility up to an equity limit of a minimum of $536,000 with each state having the ability to raise this to as much is $802,000. If you were to enter a facility and your spouse was to remain in the home there would be no equity limit.

The healthy spouse who is not institutionalized may keep half of community assets up to a limit that is set at $115,920 in 2013.

There is also a provision that allows the healthy or community spouse to retain some of the institutionalized spouse’s income to maintain a minimum standard of living. This is called a “monthly maintenance needs allowance,” and in 2013 the maximum is $2898.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

Most people do not have an estate plan in place, and younger adults are more likely to be going through life without having made any preparations than older ones.

You may say that this is logical because estate planning is absolutely more important for senior citizens than it is for young adults.

In fact, it could be argued that nothing is further from the truth.

At the time of this writing the average life expectancy for people of all ages is 78 years. So for the purposes of this example let’s say that you pass away when you are 78 years old.

How old do you think your children would be at that time? It is very likely that they would be fully self supporting adults who may in fact be approaching senior citizen status themselves.

Your 50 or 60-year-old children are probably not going to be looking to you for food and shelter.

On the other hand, if you are a younger adult with minor children in the home the dynamic is something else entirely. Your children are clearly dependent on you for everything.

For this reason it is important to have an estate plan in place as a young adult parent. One of the things to consider is the matter of guardianship. When you draw your estate planning documents you must include the selection of a guardian who would care for your children should both parents pass away.

There is also the matter of making sure that there would be sufficient financial resources in place, and this can be accomplished through the purchase of life insurance if necessary. However, you do have to take specific steps when you are planning your estate to place controls over the funds, and this can be accomplished through the inclusion of a testamentary trust.

Our firm has a background assisting parents who want to provide for their minor children, and we are here to assist you if you would like to take the appropriate actions to ensure the well-being of your children come what may.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

Postmortem planning is something that you must take into consideration if you want to leave behind a self-actualizing estate dynamic.

Working with an estate planning lawyer to construct legally binding documents is part of the process, but you also have to plan ahead with the eventual administration of the estate in mind.

Certain steps must be taken after your passing to get the wheels in motion. If you utilize a last will to express your final wishes you choose an executor or executrix, and this individual takes care of the hands-on tasks with the assistance of a probate lawyer.

The logical course of action would be to arrange for the estate planning attorney who is drawing up your last will to act as the probate lawyer to help guide your executor through the process when it becomes necessary.

There are those who choose to utilize revocable living trusts to direct future asset transfers. For these individuals probate is not much of an issue, but trust administration is indeed something that must be taken into consideration.

We have prepared a free report that examines the process of trust administration in considerable detail. Our firm is currently offering this report to people here in the central New Jersey area and your copy is available to you right now.

Click the following link and fill in the form that you see on the right of the page to obtain access to your report:

New Jersey Trust Administration Report

This report is invaluable for anyone interested in creating a trust for the well-being of their loved ones, and we urge you to take action to obtain your copy.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

The 2012 holiday season may have receded into the distance behind us, but the spirit of giving may still be fresh in your mind early in 2013. This spirit can extend into your estate plan.

Legacy planning can be a part of the equation as you take steps to lend your name to philanthropic efforts. This is obviously something that can be personally rewarding, and doing something for others late in your life can be especially meaningful and even spiritually significant.

The above having been stated, it is often possible to set aside resources for charity in a manner that has positive tax consequences.

When you think about charitable giving and legacy planning the formation of a private family foundation may come to mind. Though some extraordinarily wealthy people are famous for starting foundations it is possible for individuals who are not among the super-rich to establish private foundations.

Many foundations are not staffed, and it is possible to work with a sum of money that is not in the seven figures.

In addition to the option of starting a foundation donor advised funds are another possibility. With these funds you can make a single donation but recommend that the fund give grants to multiple different charities.

From an accounting standpoint you are dealing with one entity rather than several so things are simplified. These funds are set up to accept contributions of securities while some charities that you may want to support are not. And, because many people utilize the fund and the infrastructure is in place the administrative costs to the donors are minimal.

If you are interested in creating a legacy that extends into the realm of philanthropy we would be more than glad to assist you. To set up a free consultation give us a call at 908-222-8803 or contact us electronically: Central New Jersey Estate Planning Consultation

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.

If you were a runner who was in training you would have certain goals with regard to the times you are able to achieve. When you know how fast you want to run a particular distance you have to check your watch along the way to see if you are on pace.

The same thing is true when you are planning ahead for the future on a financial level. As you traverse your career path you need to know exactly where you stand at each mile marker as it were so that you can verify the fact that you are indeed on course.

Should you find that you are falling short of your incremental goals adjustments may be necessary.

To get an idea of exactly where you stand you may want to create a net worth statement. In a general sense a net worth statement is a balance sheet upon which you enter your assets and your liabilities. When you lay everything out logically and do the math you gain an understanding of where you stand.

One thing to keep in mind in addition to financial planning as it applies to your near-term goals and your ultimate retirement would be the estate planning element. If you find that your assets exceed the amount of the estate tax exclusion you are going to want to discuss tax efficiency strategies with a good estate planning lawyer.

The estate tax on the federal level can significantly reduce your wealth, and here in New Jersey we also have a state level estate tax as well as an inheritance tax. These levies can erode your financial legacy significantly, so you do not want to go forward without the benefit of professional advice.

The Augulis Law Firm is a member of the American Academy of Estate Planning Attorneys.