On the surface this can seem like a very useful and simple solution when you are planning your estate. However, there are some shortcomings to consider when you talk about payable on death accounts.

One important thing to take into account is the possibility of estate tax exposure. If the overall value of your estate exceeds the estate tax exclusion amount you are going to have to take steps to reduce the taxable value of your estate. When you place resources into a payable on death account you have incidents of ownership and as a result these assets are part of your taxable estate.

Another factor that makes payable on death accounts less attractive is the fact that many financial institutions will not allow you to split the resources among multiple beneficiaries in different percentages. They require you to allow for the assets to be split among the beneficiaries equally, and you may not want to divide the resources in this way.

Payable on death accounts are also not going to address the matter of who handles the assets in the event of your incapacity. Your beneficiary does not have access to the funds until you actually pass away.

POD accounts are not a comprehensive solution. The best way to plan for the future is to sit down and discuss all of your options with a licensed and experienced Central New Jersey estate planning lawyer.

When you look at these trusts you see that they are not extraordinarily complicated. You have a grantor or settlor who is the individual who creates the trust, funding it and setting forth instructions in the trust agreement. The grantor has to name a beneficiary who will benefit from the resource placed into the trust and a trustee who will manage the funds.

If you create a revocable living trust you may want to serve as both the trustee and the beneficiary while you are still alive and capable of making your own decisions. You also name successors to step into these roles after your death or incapacitation.

When it comes to the selection of a trustee, a lot of people will select a trusted family member. However, if that is not an option you may utilize a professional entity like a trust company or the trust department of a financial institution. This ensures the appropriate handling of the resources, which can include making investments.

If you are interested in the possibility of creating a revocable living trust, the intelligent first step would be to sit down and discuss your unique situation with a licensed and experienced Somerset County NJ estate planning lawyer. He or she will listen attentively as you explain your wishes and help you to craft a plan that ultimately makes your vision a reality.

Many people who must seek estate tax efficiency are also interested in contributing to charitable causes. One way to achieve both aims would be to create a charitable remainder unitrust.

With these trusts you name a non-charitable beneficiary who will receive annuity payments from the trust annually. These payments must equal between 5% to 10% of the annual valuation of the trust. In the majority of cases the grantor of the trust will act as the non-charitable beneficiary.

When you are creating the trust you also decide on a charitable beneficiary. This charity will assume ownership of the remainder that exists in the trust after its term has expired. (You decide on the length of this term when you create the trust).  The remainder amount must equal at least 10% of the overall value of the trust.

Creating the trust shifts the assets used to fund the vehicle out of your estate for estate tax purposes. Capital gains responsibility could be spread out during the trust term, and there is a charitable deduction to be had as well.

If the possible creation of a charitable remainder unitrust interests you, reach out to discuss the details with a licensed and experienced Somerset County estate planning lawyer.

One of the reasons why people fail to plan ahead for the well-being of their pets is because they expect to outlive the animals. Of course you may indeed live longer than your pets, but that does not mean that you should not be prepared just in case.

Parents with dependent children are going to have to select a potential guardian for the children in the event of the death of their parents. This is not likely, but you don’t want to leave anything to chance. The same thing is true with your pets.

Pet planning is going to involve a two-pronged approach. First of all you’re going to have to get someone to agree to care for the animal should you predecease it. There are a lot of animal lovers out there so this should not be too much of a problem.

In addition, you are going to have to provide financial resources so that the caretaker can provide for the pet’s needs. This can be done through the creation of a pet trust and this has become a very popular option. Another possibility would be to leave an inheritance to the caretaker earmarked for the benefit of the pet.

If you are ready to make sure that your pets are provided for come what may, simply make an appointment to sit down and discuss the matter with a licensed and experienced central New Jersey estate planning lawyer.

It may not be the most positive statistic in the world but somewhere in the vicinity of half of marriages that are taking place during our current era wind up ending in divorce. Of course most marriages yield children and the majority of people who do get divorced eventually remarry. Blended families are the result.

Estate planning for blended families can be a bit complicated and require very specialized attention and expertise. Exactly how to proceed is going to vary depending upon the nature of your assets and exactly what it is that you want to accomplish with your legacy.

Other families are headed by same-sex couples and the family dynamic within these families can require a specialized approach as well.

Another possible scenario would be providing for a family member who has special needs. This too is going to necessitate the execution of some very pointed estate planning documents.

The above are just a few examples of some of the various family situations that can exist. Each family is unique, and every individual has a different vision for the future. To get the personalized attention that you and your family deserve, develop an ongoing relationship with an experienced and dedicated Somerset County estate planning attorney that you will feel comfortable working with for the long haul.

This is a reality, and you can address it in one of two ways. You can let the chips fall as they may and wander aimlessly to an unknown destination. Or, you can plan ahead proactively and map out a strategy that leads to the fruition of very specific goals.

Long-term planning is very important for all people and it is especially important for small business owners. If you work for an employer you certainly have to plan for your retirement years and this is something that small business owners must do as well. But, as an employee you don’t have to concern yourself with the business itself.

As a small business owner you are in a different position entirely. You have to have an exit or succession strategy in place, and the sooner you decide how you would like to exit the better. This is because certain decisions that you make regarding things like reinvesting in the business are going to be informed by your plans for the future.

If your intention is to keep the business in the family, you are building for the long haul but if you intend to sell the business when you retire you may approach things differently. Your plan for the future would also logically impact your interactions with personnel.

Small business owners require specialized attention when they are planning for the future. If you feel as though you would benefit from some expert advice, don’t hesitate to pick up the phone to arrange for a consultation with a Central New Jersey financial planning lawyer who has a background assisting members of the business community.

If you were to become incapacitated at some point in time without making any advance preparations, interested parties could petition the court to appoint a guardian to act in your behalf. You may not have a choice with regard to who this individual is, and this potential lack of control is quite disturbing to many people.

Within your revocable living trust you could appoint a disability trustee who would be empowered to handle your finances in the event of your incapacitation, eliminating the need for a guardianship proceeding.

There are those who are under the impression that you do not need to have a Will if you do use a revocable living trust as your primary vehicle of asset transfer. In fact, you should have a pour-over will as well if you intend to use a revocable living trust to direct your resources to your loved ones.

With a pour-over Will, you record your desire to have any remaining assets that remained in your possession when you passed away directed into your trust. This is an efficient way of accounting for these remaining resources.

To obtain more information about revocable living trusts and pour-over Wills, don’t hesitate to pick up the phone to arrange for a consultation with a good Middlesex County NJ Estate Planning lawyer.

People who do pass away without having executed any estate planning documents at all are said to have died “intestate.” In cases such as this, it is up to the surrogate court to sort through the mess and supervise the administration of the estate.

This is going to start with the appointment of a personal representative who will be charged with the responsibility of completing the hands-on tasks involved. While this process is taking place, creditors can step forward and seek satisfaction, and once the remaining assets have been inventoried they are eventually distributed via New Jersey intestacy laws of succession.

If your children were in line to inherit your assets in a case of intestacy they could disagree about the way that the assets should be liquidated. Of course you can split a pie equally, but we are not talking about a pie here. Your possessions are going to be in various forms and there may be sentimental value attached to many different items and there can be sensitive feelings involved.

In short, intestacy is not an option for any serious minded individual. If you are currently unprepared for the future, right now is the ideal time to pick up the phone to arrange for a consultation with a good Somerset County NJ Estate Planning lawyer.

With the above having been stated, Americans who are planning for their elder years should understand just how expensive long-term care has become. Most senior citizens will need long-term care of some kind, and the average length of stay is between two and four years. These are facts that you have to accept if you want to plan ahead intelligently.

Every year the MetLife Mature Market Institute puts out a survey for public consumption that enlightens us with regard to the current state of long-term care costs. They have released their 2011 figures, and as expected, long-term care costs are continuing to rise.

The national average for a year in a private room in a nursing home in the United States in 2011 rose by 4.4% to $87,235. The average cost in New Jersey was $316 a day and if you multiply this by 365 you’re looking at $115,340 per year. This is certainly a significant expense for most people.

As considerable as they are, there are steps that you can take to prepare yourself for these expenses. To explore your options, take a moment to arrange for a consultation with a licensed and experienced central New Jersey Elder Law attorney.

This is fantastic and goal setting is what it’s all about. When you can get excited about what lies ahead if you stick to an intelligently conceived plan, you have the motivation to stay focused and disciplined.

The above having been stated, a lot of people don’t like to think about contingencies that could be unpleasant. Ignoring things does not make them go away, and along these lines, it is a good idea to consider the second stage of your retirement that will follow the active years.

A high percentage of people will need living assistance at some point in time. Some will receive in-home care and others will reside in assisted living communities or nursing homes. This is a stark reality, and if you want to be truly prepared for the future you should face it head on and make preparations both financially and practically.

There is also the matter of possible incapacity to consider. The appropriate response would be execution of durable Powers of Attorney as well as a Living Will. A trust agreement could also contain incapacity provisions.

Multiple stages of life must be considered when you’re planning for the eventualities of aging. To develop a plan that addresses all contingencies, the wise course of action is to discuss your future with an experienced and savvy Middlesex County Elder Law attorney.