Utilizing A Pre-Paid Irrevocable Funeral Contract (or Trust) To Qualify For Chronic Care Medicaid

using a pre-paid irrevocable funeral trust to qualify for medicaidWhen an individual is entering a skilled nursing facility, it may be necessary to complete an application for Chronic Care Medicaid. A skilled nursing facility may cost anywhere from $15,000.00 to $25,000 per month, which can quickly lead to the depletion of available resources. Medicaid is a need-based program that assists with the cost of care in a skilled nursing facility. To qualify for Medicaid, an individual must meet certain asset and income requirements. Continue reading Utilizing A Pre-Paid Irrevocable Funeral Contract (or Trust) To Qualify For Chronic Care Medicaid

Do Not Use Funds from an Irrevocable Trust to Cover the Cost of an Assisted Living Facility

New Jersey irrevocable trust lawyerOftentimes, individuals will put the proceeds from the sale of a house into an irrevocable trust.  When the time comes, an elderly person may move into an assisted living facility, which can be expensive. A trustee of an irrevocable trust may look to use the funds in an irrevocable trust to cover the cost of the assisted living facility. However, the money in an irrevocable trust should not be used to pay for care in an assisted living facility.  The reason being is that an irrevocable trust is only exempt for Medicaid purposes when there are no principal distributions being made to a grantor or in this case to an assisted living facility on an individual’s behalf because doing so would violate the terms of a trust.

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Should You Contest a Family Members Will?

familyWhile some people are pleased with the way a decedent allocated assets to his or her beneficiaries, others may not be. However, just because a person was not given what he or she felt they were entitled to, does not necessarily provide them with the grounds necessary to challenge a decedent’s will. An individual must determine whether challenging a decedent’s will is both valid and will succeed in the eyes of the law because the process is timely and expensive. It is worth mentioning that a decedent has a right to allocate his or her assets or other meaningful possessions to those of their choosing.  This includes leaving assets or large sums of money to a charity or other institution. However, this does not preclude a beneficiary or heir from challenging the decedent’s will.

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Protect Your Financial Future with a Comprehensive Estate Plan

New Jersey estate planning lawyerRegardless of how many assets you own, estate planning is an important component of your overall financial plan. A properly expected estate plan can help to secure a financial legacy for loved ones and express medical decisions if you are unable to do so. Estate planning can be complex, so it is important to consult the guidance of an experienced estate planning lawyer.

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Housebound For Veterans

Housebound for New Jersey veteransAccording to the 2012 U.S. Census brief, there are more than 12.4 million veterans age 65 and older living in the United States. The Department of Veterans Affairs (VA) is responsible for adjusting the level of benefits that veterans are entitled to receive. In addition, the Department of Veterans Affairs provides a pension service program to elderly veterans known as Housebound. Housebound entitles a veteran to receive additional monetary compensation on a monthly basis.

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Transfers of Assets Affect Medicaid

New Jersey Medicaid planning lawyerIf a Medicaid applicant is married and his or her spouse resides in the primary residence, then the home is an exempt resource. The spouse is entitled to keep resources of $120,900. The applicant must have less than $2,000. Any additional resources above these limits must go toward the cost of his or her nursing home care. If the applicant has a spouse, he or she may retain a portion of the other spouse’s income under certain circumstances.

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College Students Executing A Health Care Proxy And Power Of Attorney

For many teens across the country, college has finally begun! Many students are beginning their freshman year of college at 18 years old.  This means that they are considered an adult. Due to this, parents or guardians no longer have the right to access their child’s medical information even though they are likely paying tuition and have the adult child on their health insurance. Many estate-planning attorneys are advising parents and guardians to obtain a health care proxy with a HIPPA waiver, as well as a Power of Attorney.

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Utilizing An In Terrorem Provision In A Last Will And Testament

An in terrorem is a Latin word meaning “in fear”.  It refers to a provision within a Decedent’s Will to disinherit a beneficiary if he or she challenges the Will in any way.  Instead of a beneficiary receiving what he or she may have been entitled to within the Will, the individual will receive nothing, due to challenging the Will.  He or she will essentially have forfeited any inheritance they were entitled to.  This provision is intended to dissuade a person from contesting a Decedent’s Will.  Further, an in terrorem provision is strictly construed by the courts.

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Having Assets in Multiple States

Today, it is common for retirees to have residences in multiple states.  Some choose to keep his or her family home and acquire a small home in Florida to visit during the cold months.  When a person who owns residences or financial accounts in two different states passes, an ancillary probate proceeding must be commenced where the other real property is located.  An ancillary proceeding is an administrative proceeding that is required in addition to the original probate process of a Last Will & Testament. Usually, this administrative proceeding is required because a person owns real property outside of his or her home state.

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Difference Between A Gross Taxable Estate And Probate Estate

A gross taxable estate includes assets that maintain an interest upon an individual’s death, regardless of whether the assets pass by way of a last will and testament. A gross taxable estate includes gifts made during an individual’s lifetime that exceed $14,000 per person per year. Also, a gross taxable estate includes property transferred during a person’s life that he or she retains an interest in. This means that, if the property is transferred to another individual but one retained a life estate in the property, then it is part of the gross taxable estate. Also, the interest that is payable upon someone’s death, such as a property or life insurance policy, may be deemed as part of the gross taxable estate.

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