Elder Law

What Is a Qualified Personal Residence Trust (QPRT)?

May 23, 2023

A qualified personal residence trust (QPRT) is an irrevocable trust used to achieve estate and gift tax savings. The basic idea behind a QPRT is to transfer the equity in a qualified residence out of a person’s estate and to their heirs while reaping lower transfer tax consequences. A QPRT can also be used to prevent creditors […]

What Is IRMAA and How Does It Affect My Medicare Premiums?

May 16, 2023

As we near retirement, we may assume that once Medicare kicks in, our medical insurance premiums will be fixed. However, many people may not realize that there are special rules regarding how much they pay for Medicare Parts B and D if they are in a higher income range. What Is IRMAA? If the Social Security Administration […]

Who Can Override a Power of Attorney (POA)?

May 8, 2023

A power of attorney (POA) is a legal agreement that gives a person (agent) the ability to act on behalf of another person (principal). A common question asked about POAs is under what circumstances a person can override them. POAs can be overridden. However, the “who” and “how” depends on whether the principal is of sound mind. […]

Appointing an Executor? Here’s What an Executor Cannot Do

May 4, 2023

The person you name as your executor will be accountable for a number of important tasks, even in managing the administration of a small estate. This may include filing tax returns, keeping meticulous records, and distributing assets to your beneficiaries. At the same time, there are rules about what the person in this role is […]

Does Power of Attorney End at Death?

April 21, 2023

A power of attorney is a powerful planning document that enables you (the principal) to give another person (the agent or attorney-in-fact) the power to act for you while you are alive. Because it is often prepared in the context of estate planning, many believe it gives their agents the power to continue acting after their death. […]

What Does the Term “Decedent” Mean?

April 13, 2023

“Decedent” is a legal term that refers to a person who has died with unsatisfied legal obligations. At the end of their life, a decedent has some legal duties that must be fulfilled through a representative. For example, decedents remain obligated to satisfy certain debts incurred during their life and file their last income tax […]

Step-Up in Basis and Why It Matters in Estate Planning

March 21, 2023

Recent news stories may have made you aware of the “step-up in basis” and the current administration’s desire to eliminate or adjust it. If you are considering engaging in estate planning or you may be inheriting assets, it is important to understand what the step-up in basis is and how it may affect you. What […]

How to Become a Legal Guardian in New Jersey

March 20, 2023

Becoming a legal guardian in New Jersey can be a complex and time-consuming process, but it can also be a rewarding experience for those dedicated to providing care and support to individuals who are unable to make decisions for themselves.  When Guardianship Becomes Necessary In New Jersey, guardianship may become necessary when an individual cannot […]

What Are the Benefits of Having a Testamentary Trust?

March 17, 2023

There are various benefits to creating a testamentary trust. This article discusses the benefits of adding a testamentary trust to your estate plan. What Is a Testamentary Trust? A testamentary trust allows a testator to manage wealth by giving a trustee instructions for distributing their property after the testator’s death. A testamentary trust is a part of the testator’s […]

Mandelbaum Barrett PC Elder Law and Special Needs Newsletter: February 2023 Issue

February 27, 2023

The Elder Law and Special Needs Departments at Mandelbaum Barrett PC are pleased to bring you our February newsletter in its new and improved format. Check out the Hot Topics and industry events our team has been busy with. As always, we would love to hear your feedback! Read the full newsletter here.

Trouble in Graceland

February 13, 2023

One month after the sudden passing of Lisa Marie Presley, a dispute over who should control her estate has cast a cloud over Graceland. Lisa Marie Presley was the only child of Rock ‘N Roll legend, Elvis Presley, and his ex-wife, Priscilla Presley. Elvis’ Will left his estate to his father, Vernon Presley, his grandmother, […]

Support a Charity – and Your Loved Ones – With a CLAT

February 6, 2023

A charitable lead annuity trust (CLAT) is an estate planning tool whereby a person (grantor) creates a trust that initially benefits a charitable organization, foundation, or other qualifying entity for a defined period. After this time ends, the CLAT’s remaining assets are distributed to non-charitable beneficiaries, usually a grantor’s loved ones or family members. Depending […]

What Does It Mean to Be Estranged?

January 19, 2023

Estrangement refers to a breakdown in a relationship, such as a relationship with a spouse or family member, where there is no longer any communication, or communication has become hostile, and the individuals lead separate lives. Although estrangement can significantly impact individuals’ lives, it is not a legal term and, in many cases, might not […]

Social Security Disability Benefits to Rise for 2023

January 11, 2023

The Social Security Administration has announced that its beneficiaries will see a significant increase – totaling nearly 9 percent – in their monthly Social Security checks come January 2023. This cost-of-living adjustment (COLA) is the largest boost to Social Security benefits in more than 40 years. The increase for 2022 was 5.9 percent. Supplemental Security Income (SSI), […]

No Will? You’re Putting Your Kids at Risk

January 9, 2023

Many people delay the conversation or thoughts of having to prepare a will. Confronting the possibility of one’s death is not easy. However, as the recent death of Anne Heche shows us, not having a will can place a significant burden on your children and cause undesirable complications. Even if difficult, planning ahead may be […]

Section 8 Housing Choice Voucher Program Enrollment

January 6, 2023

The New Jersey Department of Community Affairs (DCA) will soon begin accepting pre-applications for the Section 8 Housing Choice Voucher (HCV) Program. The enrollment period will run from Tuesday, January 17th, 2023 at 9am until Friday, February 3rd, 2023 at 5pm. This is a federally funded program to provide housing subsidies to New Jersey residents in order […]

Elder Law and Special Needs Newsletter: January 2023 Issue

January 5, 2023

In the January issue of our Elder Law and Special Needs Newsletter, our attorneys share some of their recent articles on industry hot topics, such as “5 Reasons for Seniors to Celebrate in 2023.” We also highlight recent and upcoming events including our Elder Law Team (Richard Miller, Esq., Jason Marx, Esq., Shawna Kirchner Brown, Esq., Donald “Donny” […]

IRS Raising Annual Gift Tax and Estate Tax Exclusions in 2023

January 3, 2023

Although inflation is generally nothing to be pleased about, the IRS recently announced inflation-adjusted changes to the annual gift tax and estate tax exclusions for 2023. If you are considering wealth transfer tax planning, these are welcome increases. Gift Tax Annual Exclusion Effective January 1, 2023, the gift tax annual exclusion will increase from $16,000 […]

5 Reasons for Seniors to Celebrate in 2023

December 29, 2022

It has been a tumultuous few years. Amid a continuing pandemic, tense midterm elections, and a war in Ukraine, we have grappled with more than our fair share of grim news. However, with the new year upon us, there are some silver linings — in particular for seniors. Here are five reasons for seniors to […]

What Is the Difference Between a Springing and Non-Springing Power of Attorney?

December 14, 2022

A power of attorney is a document that grants various powers and responsibilities to a trusted third party or “agent” who can act on your behalf. This document usually only allows an agent to make non-medical decisions on your behalf. A power of attorney can be a valuable planning tool that lets you decide in […]

Majority of Adult Children Cannot Support Boomer Parents, Surveys Find

December 2, 2022

A recent survey by the American Advisors Group (AAG) finds that 55 percent of adult children say they are not financially prepared to help their Baby Boomer parents cope with rising inflation and living expenses. “Americans want to see their parents age with grace and dignity and have the resources they need to live comfortably, but for […]

Medicare Open Enrollment Reminder

December 1, 2022

The Medicare open enrollment period runs through December 7th, 2022.   Medicare adjusts costs, coverage, and accepted providers on an annual basis. If you have received “Evidence of Coverage,” or an “Annual Notice of Change,” from Medicare, now is the time to review your coverage, and, if necessary, make changes to your Medicare healthcare plan to […]

What Is a Life Estate?

November 21, 2022

When discussing estate and Medicaid planning, the phrase “life estate” is sometimes mentioned, but what does it mean? A life estate is a form of joint ownership that allows one person to remain in a house until his or her death, when it passes to the other owner. Elder law attorneys use life estates to help avoid probate […]

Five Ideas to Consider when Exploring Home Health Care Options for an Aging Loved One

November 18, 2022

Anyone who has considered home health care for an aging loved one will undoubtedly remember how daunting the process can be. From the foreign terminology to the overall structure of an individual care plan, enrolling a loved one in a home care program may cause a great deal of frustration for families experiencing this process […]

Getting Medicare Food Benefits

November 15, 2022

As people age, accessing healthy meals can become more challenging. According to Feeding America, one in five older adults was food-insecure in 2020. Some older adults struggle with affording healthy foods, whereas others have difficulty going to the grocery store and preparing meals when recovering from an illness or injury. Although original Medicare does not offer […]

Nursing home residents’ rights at risk in new SCOTUS case 

November 14, 2022

More than 83 million people access Medicaid services, many of whom are elderly or disabled and using Medicaid resources to fund their residence in a long-term care facility. If you or a loved one are one of these people, you may be interested in the recent case being argued before the Supreme Court last week. […]

What Happens to My Frequent Flyer Miles When I Pass Away?

October 26, 2022

Accumulated frequent flyer miles can be valuable assets, but what happens to those miles after someone dies? Can a spouse or other heirs inherit them, or do the miles simply evaporate like a contrail? Whether they can be inherited depends on the airline, and in most cases, airlines will point out in their terms and […]

How Much Long-Term Care Insurance Should You Purchase?

October 12, 2022

Long-term care insurance helps you prepare for financial costs associated with aging, such as nursing home care, assisted living, or in-home care. Yet long-term care insurance policies vary widely in terms of the amount of coverage and how long the protection lasts. The Average Costs of Care The 2021 Genworth cost of long-term care survey provides national […]

What You Should Know About Nursing Home Admissions Contracts

October 5, 2022

They cannot require you to be financially responsible for your loved one’s care. Approximately 48 million adults in the U.S. are caring for an adult with health or functional limitations, and nearly one in six is adults is caring for someone aged 50 or older through illness or disability.[1] Nursing homes and residential care facilities […]

Four Provisions People Often Forget to Include in Their Estate Plan

October 3, 2022

Even if you’ve created an estate plan, are you sure you included everything you need to? There are certain provisions that people often forget to put in a will or estate plan that can have a big impact on a family. 1. Alternate Beneficiaries One of the most important things your estate plan should include is at […]

Is a Qualified Disability Trust Right For Your Estate Plan?

September 30, 2022

Many individuals engaging in estate planning opt to create a third-party special needs trust to provide for their loved one living with a disability. However, did you know that these trusts may have to pay taxes on any income generated from the trust assets and retained by the trust for future use? If the trust is […]

How You Can Help Your Loved Ones by Planning Your Funeral Arrangements

September 28, 2022

When an individual passes away without a funeral plan, responsibility for arranging the funeral often falls on the deceased’s close family members, such as surviving spouses and children. Planning your own funeral arrangements can assist your loved ones in an emotionally challenging time, while also protecting them from incurring extraneous costs. According to the National […]

Don’t Yet Want Your Heirs to Know About Your Assets? Use a Quiet Trust in Your Estate Plan

September 15, 2022

Trusts are great tools for leaving assets to your heirs while maintaining control over their access to those assets. In many cases, you would tell your beneficiaries that you have made a trust for them. However, this is not always desirable — and this is where a “quiet” trust may be helpful. A quiet trust is […]

How Long Should I Hold on to Important Documents?

September 7, 2022

It is hard to know what documents to trash and when. Before you know it, your spare room, office, basement, or garage is overflowing with boxes of papers that all seem important. Trying to weed through the mess and figure out what to toss? Keep reading. Which Documents Should I Keep? There are some documents […]

How Changes to Portability of the Estate Tax Exemption May Impact You

September 1, 2022

On July 8, 2022, the Internal Revenue Service issued new guidance that allows a deceased person’s estate to elect “portability” of their unused gift and estate tax exemption for up to five years after their death. So, if your spouse passed away less than five years ago, you may be able to file an estate […]

It Pays to Be a Smart Shopper When Buying a Medigap Insurance Policy

August 29, 2022

Medigap premiums for plans from insurance companies offering the same benefits vary widely, so it pays to be a smart shopper. Federal law requires that each insurance company offers the same benefits for each of the Medigap plans lettered A through M, but each company sets its own premium rates. A Medigap insurance company sets […]

What You Should Consider Before Scattering a Loved One’s Ashes

August 26, 2022

Where Do You Want to Scatter the Ashes?   The place you choose to spread your loved one’s ashes is very important. The rules for spreading someone’s ashes are different depending on the type of location.  Is the Area Private or Public Property? The biggest question about location is whether the property is public or […]

Keeping Your Emergency Contacts and Medical Information Updated for First Responders

August 24, 2022

If medical personnel are able to access your medical history during an emergency, it could mean the difference between life and death. But if, for example, you are injured, in shock, suffering from dementia, or are otherwise incapacitated, you may not be able to provide that information yourself. There are several systems readily available to […]

Is a Grantor Retained Annuity Trust Right For You?

August 19, 2022

What is a GRAT? Grantor Retained Annuity Trusts (GRATs) ­are a mechanism by which wealthier individuals and couples can transfer appreciating assets to their heirs and minimize gift or estate taxes. High-net-worth individuals and couples can use GRATs to freeze the value of their estates and transfer any increase in the value of their assets […]

The Powers and Responsibilities of Representative Payees

August 18, 2022

Do you have a friend or loved one who receives Social Security and is unable to manage her payments? If so, you can request that the Social Security Administration (SSA), the government agency that disburses Social Security, name you as the representative payee for that person. Being a representative payee gives you the power and […]

When Is a Nursing Home Eviction Legal, and What Can I Do?

August 10, 2022

Nursing home evictions, or involuntary discharges or transfers, disrupt the lives of residents, leading to homelessness, separation from familial support systems, and loss of care. As federal law covers all federally funded nursing home residents, nursing home evictions are legal only in particular instances, such as: The nursing home can no longer provide for a resident’s needs. […]

The Ins and Outs of Estate Sales

August 9, 2022

Following the death of a family member, you may find yourself needing to sort through many possessions accumulated over the deceased’s lifetime. An estate sale is one way to distribute those items that you do not want or need quickly and efficiently. While selling someone’s furniture, jewelry, artwork, antiques, and other belongings yourself can mean […]

What is an Executor?

July 28, 2022

An executor is the person or institution responsible for managing the administration of a deceased person’s estate. The executor (also called a personal representative) is either named in a will or appointed by the court, if there is no will. In addition to an individual, a bank, trust company, or other institution can serve. Executors are […]

Some Social Security Beneficiaries Can Get Retroactive Payments — But at a Cost

July 26, 2022

If you need a lot of cash on hand upon retirement, Social Security offers a lump-sum payment option that’s worth six months of benefits. However, it comes at a cost. It is important to understand the details before agreeing to the payment. If you have waited beyond your full retirement age (66 for those born […]

Dynasty Trusts: A Tax-Efficient Way to Pass Wealth Down Through the Generations

July 25, 2022

If you want to pass money to future generations without having it subject to gift and estate taxes, then a dynasty trust may be right for you. A dynasty trust allows trust assets to be used for the benefit of multiple generations while keeping the assets out of the grantor’s and the beneficiaries’ taxable estates.  […]

How to Get Into a Nursing Home as a Medicaid Recipient

July 20, 2022

While Medicaid helps pay for nursing home care, being admitted to a nursing home as a Medicaid recipient is not always easy. There are several ways to navigate the process, depending on your situation.  With the median cost of a nursing home room being more than $250 a day, most families need help paying for long-term care. […]

How to Deal with an Estranged Child in Your Estate Plan

July 19, 2022

Unfortunately, not all families get along. If you are having problems with one of your children, you may not want them to benefit from your estate. There are several strategies for dealing with an estranged child in your estate plan. Depending on the level of estrangement and the reasons for the estrangement, the following are […]

Using an Intentionally Defective Grantor Trust to Transfer Assets

July 12, 2022

An intentionally defective grantor trust (IDGT) is a common estate planning tool that is used by wealthy families to transfer assets from one generation to the next while achieving significant tax savings. IDGTs are especially useful if you have assets that will appreciate significantly over time.   An IDGT is “intentionally defective” because it purposely […]

What to Do if You Want to Leave Your Children Unequal Inheritances

July 11, 2022

Parents usually want to leave their children equal shares of their estate, but equal isn’t always fair. If you plan to provide more (or less) for one child in your estate plan, preparation is important.  It is natural for parents to want to treat their children equally in their estate plan, but there are some […]

Medicare Advantage Plans Often Wrongly Deny Necessary Care, Study Finds

July 8, 2022

In an alarming number of instances, private Medicare Advantage plans are denying coverage for medical services that would be covered under original Medicare, according to a federal investigation. These denials are likely preventing or delaying medically necessary care for tens of thousands of Medicare Advantage beneficiaries each year. The investigation by the Department of Health and […]

Filial Responsibility: Requiring Adult Children to Pay for Aging Parents’ Care

July 6, 2022

Did you know that in many states you could be responsible for your parents’ unpaid medical bills? In fact, more than half of all states currently have laws making adult children financially responsible for their parents, including their parents’ long-term care costs. However, these laws are rarely enforced. Notably, New Jersey does not have filial […]

The Tax Consequences of Selling a House After the Death of a Spouse

July 5, 2022

If your spouse dies, you may have to decide whether or when to sell your house. There are some tax considerations that go into that decision.  The biggest concern when selling property is capital gains taxes.  A capital gain is the difference between the “basis” in property and its selling price. The basis is usually […]

Can My Family Inherit My Season Tickets?

June 17, 2022

Sports fans with season tickets may want their families to enjoy the tickets after they are gone, but passing on these tickets may not be simple.   Getting season tickets to your favorite sport is not always an easy task. Season tickets for some teams can cost a lot of money and require time on […]

Should You Prepare a Medicaid Application Yourself?

June 17, 2022

Navigating the Medicaid application process can be complicated, especially if you are applying for long-term care benefits. Hiring an attorney to help you through the process can be extremely helpful.  Whether you should prepare and file a Medicaid application by yourself or should hire help depends on answers to the following questions: How old is […]

Three Warning Signs That You May Need a Professional Trustee

June 17, 2022

Sometimes a parent or relative of a person with special needs will establish a special needs trust for their family member and decide to serve as the sole trustee of the trust. In other cases, a parent won’t want to serve as trustee, but will ask a close friend or family member to serve without […]

What to Do If Your Medicaid Application Is Denied

June 17, 2022

If you apply for long-term care assistance through Medicaid in New Jersey and your application is denied, the situation may seem hopeless. The good news is that you can appeal the decision. Medicaid is a program for individuals with minimal resources, so it has strict asset eligibility requirements. Qualifying for Medicaid requires navigating the complicated […]

5 Rights That Trust Beneficiaries Have

June 17, 2022

As a trust beneficiary, you may feel that you are at the mercy of the trustee, but depending on the type of trust, beneficiaries may have rights to ensure the trust is properly managed. A trust is a legal arrangement through which one person, called a “settlor” or “grantor,” gives assets to another person (or […]

Why Small Business Owners Need an Estate Plan

June 17, 2022

Running a small business can keep you busy, but it should not keep you from creating an estate plan. Not having a plan in place can cause problems for your business and your family after you are gone. While an estate plan is important for everyone, it is especially important for small business owners. Planning […]

Using a Roth IRA as an Estate Planning Tool

May 9, 2022

A Roth IRA does not have to be used as just a retirement plan; it can also be a way to transfer assets tax-free to the next generation.

Unlike a traditional IRA, contributions to a Roth IRA are taxed, which means that the distributions are tax-free. Also, unlike a traditional IRA, you are also not required to take any distributions on a Roth IRA, regardless of your age. If you don't need the money for retirement, you can leave all of it in the IRA to grow tax-free and eventually pass on to your heirs.

How Long Does an Executor's Job Take?

April 26, 2022

Being the executor of an estate can be a time-consuming job, depending on the size and complexity of the estate. While a simple estate can take a few months and not require a huge time commitment, if there are problems, the job can drag on for years.

An executor is the person responsible for managing the administration of a deceased individual's estate. Although the time and effort involved will vary with the size of the estate, even if you are the executor of a small estate you will have important duties that must be performed correctly or you may be liable to the estate or the beneficiaries.

If You Don't Want an IRA Distribution, You Can Donate It to Charity

April 19, 2022

Not everyone wants to take the required minimum distributions from their retirement accounts right away. If you don't want your distribution, one option is to donate it to charity and get a tax deduction.

You are required to begin taking distributions from your tax-deferred IRA when you reach age 72 (70 ½ if you turned 70 ½ in 2019 or before) even if you don't need the money. The distributions are added to your income and taxed at your highest marginal rate, perhaps even at a higher rate than your other income if you're right at the threshold between two rates. You're more likely to have to pay a higher rate on this income if you are still working.

What Is Undue Influence?

April 18, 2022

Saying that there has been "undue influence" is often used as a reason to contest a will or estate plan, but what does it mean?

Undue influence occurs when someone exerts pressure on an individual, causing that individual to act contrary to his or her wishes and to the benefit of the influencer or the influencer's friends. The pressure can take the form of deception, harassment, threats, or isolation. Often the influencer separates the individual from their loved ones in order to coerce. The elderly and infirm can be especially susceptible to undue influence.

Arbitration Clause in Last Will and Testament Found to be Unenforceable by New Jersey Superior Court

April 11, 2022

Both lawyers and non-lawyers alike are familiar with arbitration clauses found in contracts. Whether the arbitration clause is found in a nursing home admissions agreement, or everyday "adhesion contracts" (for example, contracts governing the use and enjoyment of social media platforms), arbitration clauses can be found nearly everywhere – except a Last Will and Testament according to a recent New Jersey Superior Court decision.

What is Elder Law?

March 4, 2022

When I was admitted to the New Jersey State Bar four (4) years ago, I dove into the practice of elder law headfirst and I don't regret it. Since that time, I have encountered a re-occurring question from both practitioners and non-practitioners alike: "what is elder law?" It is a fair question, and in the spirit of full transparency, the name is somewhat of a misnomer.

When referring to the general practice area we call "elder law" the term "elder" encompasses both the traditional definition of an elderly person, as well as those who are disabled of any age. This expanded definition of "elder" sometimes creates confusion and leads both lawyers and non-lawyers alike to ask what exactly it is we do.

What Happens to a Medicaid Recipient If the Community Spouse Dies First?

February 28, 2022

When one spouse is in a nursing home and applying for Medicaid, planning has to take into account the possibility that the spouse who is not in the nursing home (the "community spouse") may pass away first. This is because the community spouse's death may cause assets to pass to the nursing home spouse and render him or her ineligible for Medicaid.

Incentive Trusts: Ensuring That an Inheritance Will Be Well Spent

February 25, 2022

Many parents or grandparents with sizable amounts of money to pass on to their heirs are apprehensive about the effect it many have on their children or grandchildren. In some instances, they fear that the recipients will misspend the funds on drugs, fancy cars or failing businesses. In other cases, the fear is simply that their children will lose their drive to achieve and overcome barriers that may present themselves if there's no financial necessity to do so.

You Can Now Compare Nursing Homes on Staff Turnover Rates and Weekend Help

February 23, 2022

The Centers for Medicare and Medicaid Services (CMS) announced that it will add data on staff turnover rates and weekend staffing levels to its Care Compare website, giving consumers another tool when choosing a nursing home.

The official Medicare website includes a nursing home rating system. Care Compare (previously called Nursing Home Compare) offers up to five-star ratings of nursing homes based on health inspections, staffing, and quality measures. Users can search for nursing homes by location and directly compare how they measure up.

Annual Contribution Ceiling for ABLE Accounts Rises and More States Add Programs

February 16, 2022

The maximum amount that can be contributed each year to an ABLE account for a person with disabilities rose $1,000 to $16,000 on January 1, 2022. The figure, which is tied to the inflation-adjusted value of the IRS's gift tax exclusion, had been stuck at $15,000 since 2018. Meanwhile, all but four states now offer ABLE programs.

Congress passed the Achieving a Better Life Experience (ABLE) Act in 2014, amending the Internal Revenue Code to allow families to create new tax savings plans, modeled after the popular 529 savings plans for higher education, that allow money to be set aside for or a person with special needs to pay for disability related expenses. This money can grow tax-free over time and is used to pay for qualifying expenses toward the care and support of the special needs beneficiary.

How Much Should a Trustee Be Compensated?

February 15, 2022

Serving as a trustee of a trust can be a huge responsibility, so trustees are entitled to compensation for their work. The amount of compensation depends on the type of trustee and the complexity of the trust.

Depending on the trust, a trustee's duties can include managing trust assets, making distributions to beneficiaries, paying taxes, and creating an annual report of all income and distributions. Performing these tasks can involve a lot of work, so it makes sense that trustees are compensated for their time.

How to Give Gifts to Your Grandchildren

February 9, 2022

Gifting assets to your grandchildren can do more than help your descendants get a good start in life — it can also reduce the size of your estate and the tax that will be due upon your death.

Perhaps the simplest approach to gifting is to give the grandchild an outright gift. You may give each grandchild up to $16,000 a year (in 2022) without having to report the gifts. If you're married, both you and your spouse can make such gifts. For example, a married couple with four grandchildren may give away up to $128,000 a year with no gift tax implications. In addition, the gifts will not count as taxable income to your grandchildren (although the earnings on the gifts if they are invested will be taxed). Just remember that any gift can interfere with Medicaid eligibility.

New Jersey Drastically Expands the Medicaid Workability Program Opening the Doors of Eligibility to Thousands of Residents

February 8, 2022

In New Jersey, Medicaid, specifically, New Jersey Family Care, is an umbrella term that encompasses various Medicaid programs designed to accommodate people with different asset and/or income circumstances. The one common thread that binds all Medicaid programs together, however, is that no matter the program, Medicaid is a form of means-tested benefits. In other words, in order to obtain Medicaid coverage under one of New Jersey's various Medicaid programs, an applicant's income and/or assets (resources) are measured against certain federal poverty guidelines that are modified from year to year based on the cost-of-living adjustment (COLA).

You Can Just Say No: Declining to Act as an Agent Under a Power of Attorney or Advance Directive for Healthcare Decision Making

February 4, 2022

Acting as an agent under a power of attorney and/or advance directive for healthcare decision making is a big responsibility and it isn't something everyone can take on. It is possible to resign or refuse the position(s) when necessary.

When referring to a power of attorney in this article, the focus is on financial powers of attorney. Medical powers of attorney, also known as "living wills" or "advance directives", are separate documents and as such, should be distinguished from financial powers of attorney.

Two Underutilized Government Programs for Seniors May Prove Particularly Beneficial During Challenging Financial Times

January 31, 2022

One of the roles of an elder law attorney is to assist individuals and families navigate the maze of government programs established to assist the aged, blind or otherwise disabled. This article highlights two such programs that are very useful for those who qualify.

Elder Law Analysis: Creditor Claims in New Jersey

January 31, 2022

To enforce any property claim it is necessary for a personal representative of the estate to be appointed. Absent a personal representative there is no one to formally notice or enforce the claim against if the judgment is pursued.

The Difference Between Elder Law and Estate Planning

January 27, 2022

Elder law and estate planning serve two different — but equally vital — functions. The main difference is that elder law is focused on preserving your assets during your lifetime, while estate planning concentrates on what happens to your assets after you die.

Estate Planning for a Single Person

January 24, 2022

If you are single, you may not think you need to plan your estate, but single people are in as much need of a plan as anyone else. Estate planning not only involves determining where your assets will go when you die — it also helps you plan for what will happen should you become incapacitated, perhaps as the result of a stroke, dementia, or injury. If you don't make a plan, you will have no say in what happens to you or your assets.

You Can ‘Cure' a Medicaid Penalty by Returning a Gift

January 20, 2022

In general, a New Jersey resident is eligible for Medicaid if his assets do not exceed the State's resource limit. However, an applicant cannot simply give money away to bring himself under the limit. He will be subject to a Medicaid penalty if he gives or transfers assets to others within five years of applying for Medicaid. The penalty is a period of time the applicant is ineligible for Medicaid and is determined by dividing the amount transferred by what Medicaid determines to be the average monthly cost of a New Jersey nursing home. The current divisor in New Jersey for the purpose of calculating a Medicaid penalty is $361.20 per day.

Recipients of Supplemental Security Income Now Have 50 Extra Days to Appeal Benefits Cuts

January 18, 2022

People facing a reduction, suspension, or other change to their Supplemental Security Income (SSI) now have more time to file an appeal, in a concession by the Social Security Administration (SSA) to delays and difficulties wrought by the COVID-19 crisis.

Why You May Need a Trust in Addition to a Power of Attorney

January 17, 2022

While everyone should have a durable power of attorney that appoints someone to act for them if they become incapacitated, in some circumstances it is not enough. In these cases, a revocable trust can help.

ALF Medicaid vs. SNF Medicaid

January 11, 2022

Assisted living facilities are a housing option for people who can still live independently, but who need some assistance with their daily activities. Costs can vary greatly depending on location and services offered. Medicare won't pay for this type of care, but Medicaid will, subject to the assisted living resident meeting certain requirements.

ABLE Accounts vs. Special Needs Trusts: Why Not Have It All?

January 7, 2022

If you have a child with disabilities, it is crucial to set money aside for the child's future. At the same time, you need to consider your child's access to public benefit programs such as Medicaid and Supplemental Security Income (SSI), as well as the state and federal tax implications. The two major vehicles to accomplish these goals, ABLE accounts and special needs trusts (SNTs), each have their advantages and limitations. Using them in tandem may be the optimal strategy for your child with special needs.

Annual Gift Tax and Estate Tax Exclusions Are Increasing in 2022

January 4, 2022

The amount you can gift to any one person without filing a gift tax form is increasing to $16,000 in 2022, the first increase since 2018. The federal estate tax exclusion is also climbing to more than $12 million per individual.

What Are a Special Needs Trustee's Record-Keeping Duties?

December 27, 2021

One of the most important roles in a special needs plan is that of trustee, the person who administers a special needs trust (SNT). Of a trustee's many responsibilities, record-keeping is perhaps the most crucial. Because the trustee is managing accounts on behalf of someone else, every decision must be recorded with a paper or digital record. Here's a detailed look at the types of records the trustee must maintain.

Supportive Housing Programs Offer Integrated Solutions for People with Mental Disabilities

December 23, 2021

Since the 1960s there has been steady reformation of mental health care in the United States. One of the most visible signs of this effort is the movement away from treatment in large state mental hospitals and towards community care. But "community care" encompasses a great number of programs, from treatment provided in group homes to interaction with a social worker to job training and other vocational training centers. One of the programs on the cutting edge of community mental health is called "supportive housing," and it incorporates not only housing but social services and medical care as well.

IRS Issues Long-Term Care Premium Deductibility Limits for 2022, and They Look Pretty Familiar

December 22, 2021

The Internal Revenue Service (IRS) has announced the amounts taxpayers of different ages can deduct from their 2022 income as a result of buying long-term care insurance, and the figures are almost the same as in 2021.

Many types of medical expenses are deductible from your taxes. To claim the deduction, your total unreimbursed medical expenses (which can include premiums for "qualified" long-term care insurance policies), have to be more than 7.5 percent of your adjusted gross income in 2022.

5 Estate Planning Tips for the Non-Traditional Family (Which Odds Are Includes Yours)

December 16, 2021

Is your family of the "Leave It to Beaver" variety — opposite-gender parents, the first marriage for each, one or more kids, all healthy and thriving? If so, your estate plan will probably be pretty straightforward. But if not, it's not as simple and you have a lot of company.

The percentage of married households in the United States fell from 75 percent in 1960 to 49 percent in 2020. About 40 percent of all marriages end in divorce. Nearly 80 percent of people who divorce remarry — accounting for a pretty large proportion of the 49 percent of American households that are married.

Can You Be Buried With Your Pet?

December 13, 2021

Pets are often regarded as a part of the family and increasingly their needs are accounted for in planning decisions. There is health insurance for pets, and most states allow for "pet trusts" to ensure that a cherished animal will be cared for after the owner's demise. But can you and your pet spend eternity with each other as well? The answer depends on what state you are in and on the meaning of "with."

Most states either have laws specifically prohibiting pets and humans to be buried together or are silent on the issue. But a growing number of states are adopting laws allowing some form of combined burial.

The Affordable Care Act's Estate Recovery Catch-22

December 13, 2021

Medicaid is a federal program administered through the states at the county level, and created under the Social Security Act, 42 U.S.C.A. § 1396 to 1396 w-5. The various Medicaid programs in New Jersey all fall under the umbrella of "NJ Family Care." The most recent major expansion of the Medicaid program at the federal level occurred on March 23, 2010 when the Affordable Care Act a/k/a "Obamacare" was signed into law.

What It Means to Need ‘Nursing Home Level of Care' for Medicaid Eligibility

December 10, 2021

When applying for Medicaid's long-term care coverage, in addition to the strict income and asset limits, you must demonstrate that you need a level care typically provided in a nursing home.

Who Makes Health Care Decisions If You Can't?

December 7, 2021

Being able to make health care decisions for ourselves is so important to us, but what happens if you become incapacitated and are unable to voice your opinion? If you don't have a health care proxy or guardian in place, state law chooses who can make those decisions.

Medicare Premiums to Increase Dramatically in 2022

December 6, 2021

Medicare premiums are rising sharply next year, cutting into the large Social Security cost-of-living increase. The basic monthly premium will jump 15.5 percent, or $21.60, from $148.50 to $170.10 a month.

Decisions to Make for Your Power of Attorney

November 24, 2021

A power of attorney may seem like a simple document, but there are several important decisions that need to be made when creating one. From whom to appoint to what powers to grant, care and consideration should be put into each choice.

The Benefits of Including an LLC as Part of Your Estate Plan

November 22, 2021

Limited Liability Companies (LLCs) are an important tool for small business owners, but they can also be useful in estate planning. An LLC can help you pass assets to your children while avoiding gift and estate taxes.

Hiring a Caregiver: Should You Employ One Yourself or Go Through an Agency?

November 16, 2021

Most seniors prefer to stay at home as long as possible rather than move into a nursing home. For many families, this means eventually hiring a caregiver to look after an aging relative. There are two main ways to hire someone: directly or through a home health agency.

COVID Vaccination Information Added to Medicare's Nursing Home Compare Site

November 12, 2021

Individuals who are researching nursing homes can now see staff and resident vaccination rates along with other quality and safety measure information at Medicare's Nursing Home Compare website.

The 6 Biggest Estate Planning Mistakes

November 11, 2021

If you're like most people, you have the best of intentions regarding how you want your estate distributed when you die or your affairs handled should you become incapacitated. Unfortunately, without proper planning, your best intentions may not be enough. Here are six of the most common estate planning mistakes people make.

This National Long-Term Care Awareness Month, Make The Decision to be Proactive About Future Planning

November 5, 2021

November is National Long-Term Care Awareness month! Here are our top five tips for anyone considering a long-term care placement:

How to Use Intrafamily Loans as Part of Your Estate Plan

October 18, 2021

When interest rates are low, intrafamily loans can be a good way to assist a relative (typically a child) with purchasing a house or a family business, and in certain circumstances they can be used to gift money to the next generation.

Passing on Assets Outside of Probate: PODs and TODs

October 13, 2021

For a variety of reasons, people sometimes want some or all of their assets to pass directly to specific individuals upon their deaths, outside of probate. One way to accomplish this is to set up a "payable on death" (POD) account for money in a bank account or a "transfer on death" (TOD) account if funds are in a brokerage account.

Do You Need a Lawyer to Write a Will?

October 8, 2021

A will is a legal document that directs who will receive your property when you die. The legal requirements are pretty simple. In order for your will to be valid, you must know what property you have and what it means to leave it to someone, then sign the document and have it witnessed according to the laws of your state.

Make Sure Your Estate Plan and Other Essential Documents Are Safe from Disasters

October 5, 2021

It's an unfortunate reality that with the increasing number of natural disasters across the country, including fires, floods, and hurricanes, the chance that you could lose your house and possessions has become more likely. In the event of such a calamity, it is important that your estate planning and other important documents are beyond reach and easily retrievable.

Medicaid's Bias for Institutionalized Care May Be Shifting under President Biden's Proposed American Jobs Plan

September 27, 2021

Medicaid is a federal program, administered through the states at the county level, and created under the Social Security Act, 42 U.S.C.A. S. 1396 to 1396 w-5. The various Medicaid programs in New Jersey (all falling under the umbrella of NJ Family Care) are overseen by the Department of Human Services' Division of Medical Assistance and Health Services ("DMAHS").

Recreational Cannabis Has Come to New Jersey, but the State's Medical Marijuana Program Remains Largely Inaccessible to Populations Most in Need

September 17, 2021

New Jersey's Medical Marijuana Program is administered through the State Department of Health's Division of Medicinal Marijuana. New Jersey was the fourteenth (14) state to legalize medical marijuana in January 2010 when the Legislature passed the New Jersey Compassionate Use Medical Marijuana Act ("CUMMA"), also known as S 88.

What's in a Name: Why the Title on Your Financial Accounts Matter

February 10, 2021

A name often defines who we are and sometimes, even, who we become. The same is true for the name on your financial accounts. One of the biggest myths and misconceptions of estate planning is that a Will controls the disposition of all assets at death. This is not the case and could lead to […]

A Primer On New Jersey's Court Rules for Guardianships

February 9, 2021

In New Jersey, a child is considered an emancipated person at age 18, irrespective of the severity of disability. As a result, parents of special needs children no longer have the legal right to make medical, legal, financial or personal decisions for children over age 18 even if the child is unable to do so him or herself. Parents often must be appointed guardian for their disabled child to acquire the legal authority to oversee and assist with the child's affairs.

Should Medicaid Beneficiaries Worry About Their COVID-19 Stimulus Payments Counting as Income?

January 25, 2021

On December 27, 2020, Congress passed the Coronavirus Response and Relief Supplemental Appropriations Act of 2021, an economic relief bill intended to help offset the financial crisis caused by COVID-19. This act includes a round of $600 stimulus checks for a large number of Americans, including many Medicaid recipients and applicants who are concerned about […]

How To Contest a Will in New Jersey

February 27, 2020

A will directs how one’s estate should be distributed after a person passes away. Ordinarily, a will is admitted to probate and the wishes of the decedent are followed without issue. However, there are occasions where the validity of the will is questioned by family members or potential beneficiaries. A will contest is a formal […]

How to Become a Legal Guardian in New Jersey

February 5, 2020

When a loved one loses the ability to make informed and reasonable decisions, pursuing a guardianship may become necessary. A guardianship appoints one or more individuals to handle the affairs of another. Guardianship requires a court proceeding and ongoing judicial oversight.  The guardianship process begins by obtaining a report from two doctors who examine the alleged incapacitated […]

Small Estate Threshold Raised in New York

January 22, 2020

Probate and administration proceedings in New York State can be time-consuming and costly, but New York law allows for a simplified proceeding called voluntary administration for small estates with a value below a certain threshold. Recently, the threshold was expanded from estates valued at less than $30,000 to include all estates under $50,000. Voluntary administration […]

Recognizing, Preventing, And Reporting Elder Abuse In Nursing Homes

January 13, 2020

By Andrew R. Bronsnick Our senior years should be a time of comfort, security and safety. Sadly, many older Americans are being victimized by those who should be caring for them. Here’s what to do if you discover elder abuse. The United States has a shocking elder abuse problem, and it’s only getting worse. The […]

Are Self-Driving Automobiles the Future for the Elderly and Disabled?

November 11, 2019

I was recently in the market for a new car. A number of my friends purchased a Tesla so I decided to go for a test drive to see what all the hype is about. Out of curiosity, I asked the sales rep what segment of the population is buying Teslas. Besides environmentalists and techno geeks, the […]

Richard Miller Answers NJ.com "Biz Brain" Question on the Inheritance Tax in New Jersey

June 21, 2017

Richard Miller, Chair of the Firm's Elder Law Department, is featured in the June 21, 2017 nj.com "Biz Brain" section where he answers a readers question on the inheritance tax.