Taxation & Estate Planning

You and Yours Blawg is Moving

Posted on August 06, 2009
Category: Elder Law, Estate Planning, Estate and Inheritance Tax, Business Law and Planning, Tax Law and Planning, Probate and Estate Administration, Financial Planning, Miscellaneous MusingsYou and Yours Blawg is moving its platform over to New Jersey Estate Planning and Elder Law Blog...

Haven't Paid NJ Taxes? Now Might Be the Time

Posted on March 20, 2009
Category: Tax Law and Planning Courtesy of JH Cohn: New Jersey Enacts Tax Amnesty Program "New Jersey Governor Jon Corzine has signed a bill creating a 45-day New Jersey state tax amnesty period that will end no later than June 15, 2009. Presumably the program will begin on or about May 1, allowing the New Jersey Division of Taxation some time after the April 15 filing deadline to gear up for the program...

Lets get Banks Lending - SBA Loan Guarantee Amount to 90%

Posted on March 16, 2009
Category: Business Law and Planning As report by NJBIZ, in an effort to get banks lending again, "Starting today, the U.S. Small Business Administration is raising to 90 percent the federal guarantee on most SBA loans and temporarily suspending a fee that is charged to banks, but passed along to borrowers...

Tax Law Changes in Stimulus Bill

Posted on February 19, 2009
Category: Tax Law and PlanningWell, the bohemoth stimulus package has passed - what now?  and how will it efftect you?  A summary of the tax law changes in the bill curtesy of JH Cohn.Economic Stimulus Bill Contains Numerous Tax ChangesOn February 17, 2009 President Obama signed The American Recovery and Reinstatement Act of 2009 into law...

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Tax Changes in Stimulus Bill that may Impact You

Posted on February 19, 2009
Category: Tax Law and PlanningWell, the behemoth stimulus package has passed - what now?  And how will it effect you?  A summary of the tax law changes in the bill courtesy of JH Cohn. Economic Stimulus Bill Contains Numerous Tax Changes On February 17, 2009 President Obama signed The American Recovery and Reinstatement Act of 2009 into law...

Prevent Identity Theft

Posted on February 16, 2009
Category: Financial PlanningHOW TO PREVENT IDENTITY THEFT - Courtesy of Valeria and Carolyn Messia of http://www.messinamortgageinfo.com/What is Identity Theft?Identity theft is the unlawful use of another person?s identification, and may take many forms...

Silver Alert Legislation Making its Way Through Trenton

Posted on January 27, 2009
Category: Elder LawA good and reasonable new law to help families of those suffering from dementia and other diseases is making its way through Trenton.Baroni Silver Alert Legislation Approved by Committee New Jersey Senator Bill Baroni NJ District 14: "The Senate Law and Public Safety Committee approved bill S1551/S1844, establishing a ?Silver Alert System? for missing people who are believed to be suffering from dementia or other cognitive impairments...

It's A GO! New Jersey Combines Medicaid Waivers For Seniors & Adults With Physical Disabilities

Posted on January 05, 2009
MediLexicon News - It's A GO! New Jersey State Combines Medicaid Waivers For Seniors & Adults With Physical Disabilities: "Department of Health and Senior Services (DHSS) Commissioner Heather Howard announced today the State has received approval from the U...

Changing your 529 Investment - Not so Fast

Posted on October 29, 2008
Category: Financial Planning I learned something new this week - 529 plans (Qualified Tuition Plans under Internal Revenue Code Section 529) only allow one (1) investment change a year.  So, if you reallocated in February, you can't do it again in September...

A Different Approach to $7,000,000,000.00 "Bailout"

Posted on September 24, 2008
Category: Elder Law, Estate Planning, Estate and Inheritance Tax, Business Law and Planning, Tax Law and Planning, Probate and Estate Administration, Financial Planning, Miscellaneous MusingsI can't seem to stop reading about this "bailout" or No Banker Left Behind Act...

The No Banker Left Behind Act

Posted on September 22, 2008
Category: Miscellaneous Musings To all Taxpayers - the proposed $700,000,000,000.00 (yeah, that is a real big number - looks much more menacing with all the zeros spelled out) bailout represents a cost of $2,310.23 per each man, woman and child in US...

Fein Such Awarded for Excellence in Workplace Flexibility

Posted on September 15, 2008
Category: Miscellaneous MusingsAs a pat on the back to our firm and its wonderful employees, Fein Such is a proud recipient of the Alfred P. Sloan Awards for Business Excellence in Workplace Flexibility. The Sloan Awards recognize organizations that are dedicated to making work ?work? for both the employer and the employees by creating effective and flexible workplaces that meet the needs of the 21st century.

New Moves for Permanent Estate Tax Reform

Posted on September 03, 2008
Category: Estate and Inheritance TaxCourtesy of Donald Vanarelli, Esq. Bipartisan Senate Bill Would Fix Estate Tax at 2009 Level"Senate legislation, S.3284, was introduced July 17, 2008, by Sens. Tom Carper (D-DE), Patrick Leahy (D-VT) and George Voinovich (R-OH)...

Long-Term Care Costs Rising - NJ Averages $280 a day

Posted on August 18, 2008
Category: Elder LawIt is no surprise that a lead NJBiz article is "Long-Term Care Costs on the Rise". It is less of surprise that NJ is on the high side of average for the cost of long term care nationwide.Average long-term care costs have jumped between 5 percent and 13 percentnationwide since 2006, according to a study released today...

"Legal Eagles" at Fein, Such, Kahn and Shepard, PC

Posted on August 15, 2008
Category: Elder Law, Estate Planning, Estate and Inheritance Tax, Business Law and Planning, Tax Law and Planning, Probate and Estate Administration, Financial Planning, Miscellaneous MusingsFein, Such, Kahn & Shepard PC Shareholders Jim Shepard, Eric Kapnick, and Deirdre Wheatley-Liss were featured in local newspaper Parsippany This Week "Legal Eagles"...

Most companies in US avoid federal income taxes - Yahoo! News

Posted on August 12, 2008
Category: Tax Law and PlanningWhile there are certainly causes for issue with Washington and the tax code, the misleading tone of this article from the top Yahoo News stories today is creating an issue where none exists:Most companies in US avoid federal income taxes - Yahoo!: "WASHINGTON - Two-thirds of U...

Welcome to NJ - The most expensive place to live and die

Posted on August 11, 2008
Category: Tax Law and PlanningFrom Tax Girl: New Jersey is #1!: "According to the Tax Foundation, New Jersey residents paid the highest percentage of state and local taxes. Folks from New Jersey paid a whopping 11.8% of income in state and local taxes, more than 2% above the national average...

Gov't Borrows Money to Give to Banks to Give to People who Can't Pay Back Current Loans???

Posted on July 30, 2008
Category: Miscellaneous MusingsAccording to Yahoo News, the US government is borrowing an additional $27 BILLION dollars. This is because the business that is our country spends more than it takes in. President Bush also just signed the new housing law package...

Resources for sunset planning for aging parents

Posted on July 28, 2008
Category: Elder Law,This question was asked on www.linkedin.com: What approach have you taken when faced with sunset planning for aging parent(s)?I am looking for information related to resources available for helping surviving children understand and execute their aging parent(s) wishes in the sunset years...

A Check-Up on your Health Care Provider

Posted on July 25, 2008
Category: Elder LawSometimes I run across the question of if a senior (or any person for that matter) is receiving the best possible health care. A site I was introduced to gives consumer feedback on health care (http://citehealth.com/ ). Health care is a choice - just because you saw a doctor once doesn't mean that he or she is best for you needs...

Longer Life Puts Women at Risk in Retirement

Posted on July 09, 2008
Category: Financial PlanningWe ladies have it hard enough dealing with glass ceilings, boys networks, balancing family and careers, and caring for older family members. Even with balancing all this, we statistically live longer than men. The problem with this? Our "family first" and "go along to get along" attitudes can cost of down the road when we live longer, save less, and have higher health care costs...

Did the Seniors You Know Get Their Tax Stimulus?

Posted on June 23, 2008
Category: Elder Law, Tax Law and PlanningAs many of us who work with seniors blogged about when the tax stimulus package came to pass , while great in theory, the need to file a tax return to get the stimulus payment had a big hole from an action plan standpoint...

Hybrid Long Term Care Insurance

Posted on June 22, 2008
Category: Elder Law, Financial PlanningThe appeal of a hybrid car is more than greater bang for your buck - it is about making an investment you feel good about. When it comes to Long Term Care insurance, the only people who seem to feel good about the investment are those who have been caregivers, and have seen the devastating costs of spending every single penny of a person's savings (or at least down to the few last pennies) and it still not being enough to cover the costs of care...

What's the Tax Plan Mr. President-in-Waiting

Posted on June 19, 2008
Category: Estate and Inheritance Tax, Tax Law and PlanningNow that the candidates are known, what is that next question? What they propose to do with your taxes of course. A quick summary rundown courtesy of National Center for Policy Analysis - YOUR TAX BILL: HOW MCCAIN, OBAMA DIFFER:Income taxes: McCain wants to make permanent the current federal income-tax rates...

Gas Costs Bringing Your Business Down

Posted on June 06, 2008
Category: Business Law and PlanningThe skyrocketing costs of gas are hitting all of us. Business owners are especially concerned as to how this will hit their bottom line, both directly in the costs of materials and shipping, and indirectly, as employees look to balance the cost of getting to work against their paycheck...

Assisted Living Company Sued for Forcing Out Elderly Residents

Posted on June 02, 2008
Category: Elder Law,From NJ Biz.com, a report that the New Jersey Public Advocate has filed papers against Assisted Living Concepts Inc., operating eight assisted-living facilities in southern New Jersey, for "allegedly forcing out elderly residents once they have run out of savings and qualify for Medicaid...

Is Favoring a Caregiver Child in a Will Unequal?

Posted on May 13, 2008
Category:Estate PlanningJoshua C. Tate, Esq., a professor at Southern Methodist University - Dedman School of Law; University of Pennsylvania Law School, writes a compelling new article about the need for revised thinking is testamentary planning to incorporate unequal distributions to reflect the contributions of a caregiver child...

Slow Medicine - A Different Approach to End of Life Care

Posted on May 06, 2008
Category: Elder LawA recent New York Times article "For the Elderly, Being Heard About Life?s End" describes the benefits of of "?slow medicine,? an approach that encourages less aggressive ? and less costly ? care at the end of life."There is an institutionalized bias to give any and all medical care...

Survey Says! Majority of Americans don't have Wills

Posted on May 05, 2008
Category: Estate PlanningIn looking for some statistical evidence of the extent to which Americans don't have an estate plan, I came across this Lexis-Nexis Press Release: Majority of American Adults Remain Without Wills, New lawyers.comSM Survey Finds...

Paid Family Leave now Law in NJ

Posted on May 02, 2008
Category: Elder Law, Business Law and PlanningHot from njbiz.com, Corzine Signs Paid Leave Bill in 'Legacy Moment' New Jersey's Governor Corzine today signed paid family leave into law. "Calling it a "legacy moment" and a "moral necessity," Gov. Jon S...

Tax Evasion - If it sounds too good to be true, it probably is

Posted on May 01, 2008
Category: Tax Law and PlanningActor Wesley Snipes has been given the maximum jail sentence of 3 years in federal prison for his failure to pay over $15 million in taxes. Snipes legal team essentially relied on the age old excuse of "but he said it was OK" in trying to sway the judge that he shouldn't be held responsible for following some one's advise to just stop filing tax returns...

Parsippany lawyer's practice a senior matter

Posted on April 28, 2008
Category: Elder LawElder law is pressing for seniors and their families. The biggest barrier to planning is lack of information. I was happy to do my part this past Sunday in the Daily Record article "Parsippany lawyer's practice a senior matter".Parsippany lawyer's practice a senior matterShe's one of 39 N...

Mandatory Arbitration May be Coming Out of Nursing Home Contracts

Posted on April 18, 2008
Category: Elder Law, Estate Planning, Estate and Inheritance Tax, Business Law and Planning, Tax Law and Planning, Probate and Estate Administration, Financial Planning, Miscellaneous MusingsAs I have blogged before in Nursing Home Admission Contracts, Be Aware, Be Very Aware, a careful review of these contracts is a must...

Is your Life Insurance Rated due to Travel?

Posted on March 27, 2008
Category: Financial PlanningLife insurance companies are allowed to "rate" policies, i.e.: charge higher premiums, based on factors such as health or lifestyle. Up until yesterday, in New Jersey, one of those lifestyle factors was travel. However, Governor Corzine just signed legislation prohibited insures to rate policies based on travel...

Estate Tax in the Spotlight Again

Posted on March 26, 2008
Category: Estate and Inheritance TaxCongress is again considering a permanent modification to the federal estate tax.At present, US residents have a $2 million exemption from federal estate tax. That exemption is scheduled to increase to $3.5 million in 2009...

Enticing the "elderly" to turn in their driver's licenses?

Posted on March 19, 2008
Category: Elder Law, Miscellaneous MusingsWe all complain about other drivers, particularly here in New Jersey where we probably have the most awful traffic, road conditions and convoluted traffic patterns (we can't just turn left - we have a lovely invention called jug-handles instead) in the country...

Seniors - File a Tax Return with "Stimulus Payment" at the Top to get your Rebate

Posted on March 13, 2008
Category: Tax Law and PlanningDailyrecord.com tells Seniors about the Tax Rebate: "Get this straight: If you can pick up an easy $300 or more by summer, it's worth the trouble."As the Article illuminates, the problem with the tax rebate ($300 for singles, and $600 for couples) is that to get the tax rebate you need to file a return...

Ledger's will leaves nothing to daughter - Parental Responsibility to Prepare a Will?

Posted on March 10, 2008
Category: Estate PlanningWhile Heath Ledger's death may have been an accident, his failure to provide for his minor child is an example parental hubris I see all too often in parents of young children.Yahoo News reports that Ledger's will leaves nothing to daughter : "Heath Ledger's will leaves nothing to his former girlfriend and their 2-year-old daughter because it was never updated after they became part of his life...

February Dubbed "Let's Review our Will Month"

Posted on February 28, 2008
I have dubbed February as "Let's Review our Will Month" and it is rapidly coming to an end. To help you and those in your network look at this critical document and determine if what the Will says continues to meet the maker's goals and needs, I have developed an Estate Plan Review Checklist...

Economic Stimulus Package now Law

Posted on February 13, 2008
Category: Tax Law and PlanningPresident Bush signed the new Economic Stimulus Package into law today. For an excellent and detailed summary look to CCH 2008 Tax Alert.Some quick hallmarks:Tax Rebates for induvidual taxpayers with incomes less than $87,000/$174,000: At least $300 to almost everyone earning a paycheck, including low-income earners...

Estate Planning - Men v. Women (these are the jokes)

Posted on February 01, 2008
Category: Miscellaneous MusingsA totally non-serious estate planning tale, but good for a chuckle....Estate PlanningDan was a single guy living at home with his father and working in the family business. When he found out he was going to inherit a fortune when his sickly father died, he decided he needed a wife with which to share his fortune...

How Long Should you be keeping Financial Documents

Posted on January 15, 2008
Category:Tax Law and Planning, Financial PlanningI met with a client yesterday to go through decades of files to answer the question of "what papers do I still need to keep?" This seems to come up often around tax time, so much so that the question was posted on Yahoo Answers today...

Key NJ Medicaid Figures - Starting 2008

Posted on January 08, 2008
Category: Elder LawIn starting 2008, some key Medicaid figures for New Jersey:Minimum Community Spouse Resource Allowance - $20,880.00Maximum Community Spouse Resource Allowance - $104,400.00Resource Allowance for an Individual - $2,000.00Resource Allowance for a Couple (both husband and wife in a nursing home) - $3,000...

Your Estate is Going to the Dogs

Posted on December 30, 2007
Category: Estate PlanningThis news story about estate planning for pets is not as rare as you might think. For many people, the care of their beloved pets is a primary concern should they become ill or pass away.3 Md. dogs enjoy $800,000 inheritance - Yahoo! News: "The dogs ? named Buckshot, Katie and Obu-Jet ? inherited $400,000 and a house in Hagerstown with the death last year of owner Ken Kemper...

Whats missing from the Candiates Quick Fixes for the tax code?

Posted on December 27, 2007
Category: Tax Law and PlanningOp Ed pieces about taxation are usually so "Opinion" and so "Editorial" that they might better be called infomercials for a better tax system. So, when I stumble on a piece that is equally critical of all of the candidates vying for the Oval Office in 08, I stop to take a look...

Good - Avoiding AMT; Bad - Waiting for your Tax Refund

Posted on December 21, 2007
Category: Tax Law and PlanningAs with all things dealing with tax law, when the government giveth, it also takes away. Per USATODAY.com - Tax change may mean delay in refunds : "More than 20 million taxpayers will escape the alternative minimum tax this year, thanks to a stopgap measure Congress approved Wednesday...

3 New Years Resolutions for the Small Business Owner

Posted on December 19, 2007
Category: Business Law and Planning,I am always in favor of lawyers who can speak English instead of Legalease - here is a 1-2-3 New Years Resolutions for Small Business owners, courtesy of Jean D. Sifleet, Esq. I added some emphasis here and there for some points to really take to heart...

In NJ Continuing Care Retiremetn Communities must have a Resident on Board

Posted on November 05, 2007
Category: Elder LawUnder newly enacted S-425/A-3989, New Jersey's 27 Continuing Care Retirement Communities (CCRC) must now have at least one resident of the CCRC on their governing board. In addition the CCRC is required to discuss certain items, including the financial condition of the CCRC, with the governing body, as well as with the residents themselves at least quarterly...

Do your heirs a big favor: Choose IRA (and other) beneficiaries

Posted on October 22, 2007
Category: Estate PlanningWhile I have blogged on this idea before (Retirement Accounts and Beneficiary Designations - Myths and Misconceptions ), the intro to this article Do your heirs a big favor: Choose IRA beneficiaries reminds me of what we commonly see at the death of the second spouse - the Will had provided for contingencies, so no new estate planning was done...

Death and taxes - A British Perspective

Posted on October 11, 2007
Category: Estate and Inheritance TaxAs the Estate Tax Debate is likely to heat up as we head into the 2008 election season, I found the below articleNew Statesman - Death and Taxes from British political philosopher Martin O?Neill debating Great Britain's Inheritance Tax (which is structured similarly to our federal estate tax) excellent reading and very enlightening...

When do I need to look at my Wills again?

Posted on October 08, 2007
Category: Estate PlanningCongratulations! Unlike the vast majority of Americans, you have a Last Will and Testament. You have created an appropriate distribution scheme to take into account your family, assets, and goals. Now what?To continue to fit your needs, a Last Will and Testament, and indeed your entire Estate Plan, need to evolve over time...

Long Term Care Insurance Premiums on the Rise

Posted on October 02, 2007
Category: Elder Law, Financial PlanningJust like in the mortgage market where making mortgages too cheap in years past is making them more expensive today, the Long Term Care insurance market is in the midst of an upward adjustment. While many people may think that Long Term Care insurance is expensive, having to pay out of pocket for long term care is much more so ($100k - $120k a year is not unusual in northern NJ)...

Do the Presidential Candidates think like you do?

Posted on September 26, 2007
Category: Miscellaneous MusingsMuch of what I blog about here is subject to the whims of Congress and the President, particularly in the area of Taxation and Elder Law. One of the greatest things about our country is that we have the opportunity every 4 years to say who should be the President who will represent us...

The Presidential Candidates on Taxes - A look at what might be

Posted on September 19, 2007
Category: Tax Law and Planning,A look at positions of some of the 2008 presidential candidates on taxes. Note that there is no real secret to tax laws - its like dieting where you eat less and exercise more to lose weight. Either spend less and to tax less, or tax more to spend more...

Family Contracts to Make Siblings Get Along for the Care of Aging Parents

Posted on September 17, 2007
Category: Elder LawOne of the biggest issues an Elder Law attorney faces is not how to plan for their elderly clients to reach their goals, but how to implement the plan with the dynamics of the family. Gender equalization not-withstanding, daughters (and daughters-in-law) bear most of the brunt of caregiving...

Credit Crunch and the Mortgage Industry - How did this happen?

Posted on September 07, 2007
Category: Financial PlanningCourtesy of Valerie & Carolyn Messina at Millenia Mortgage (973-575-5557) an excellent summary, in plain English, about how we got to where we are in the mortgage industry today. They take us back 8 years so the lightbulb will go off about how the mortgage industry created the credit crunch of today...

House Bill to Modify Estate Tax

Posted on September 04, 2007
Category: Estate and Inheritance TaxCourtesy of Elderlawanswers.com, the House has introduced a bill to modify the federal estate tax as follows:With the estate tax set to expire in 2010, a bipartisan bill (H.R. 3170, click here. ) has been introduced in the U...

Surprise! Forgiveness of a Debt is Taxable Income

Posted on August 21, 2007
Category: Tax Law and PlanningA recent New York Time article "After Foreclosure, a Big Tax Bill From the I.R.S." highlights a not well publicized fact of income tax law - discharge or forgiveness of debt is income to the taxpayer. A simple fact pattern - You have a house with a mortgage of $100,000...

Aging at Home - A Community Bands together to buck Institutional Care

Posted on August 17, 2007
Category: Elder LawAging in place. It is no secret that most seniors want to stay in their homes. It is also no secret that long term care today has a bias towards institutional care, and not towards allowing a person the resources need to stay at home...

Be Nice to Your Banker - An Investment in your Business

Posted on August 10, 2007
Category: Business Law and PlanningA nice posting about the unsung partner of every business - no, not the tax authorities - the Bank (or any other investor who expects a fixed return of capital and interest). This is especially true where there is an environment of shrinking capital (see today's market news)...

Business Owners - Don't Fail to Plan

Posted on August 06, 2007
Category: Business Law and PlanningIt is a truism that "Business owners often feel that they -- and the business -- will always be around. But without some thoughtful planning about succession, it's common that businesses wither when the owner passes away or leaves...

ABA Webite adds Blawg Directory - Must Bookmark

Posted on August 05, 2007
Category: Miscellaneous MusingsThe PA Elder, Estate & Fiduciary Law Blog tipped me off that "The American Bar Association now lists, on its home page, a link to "more than 1,000 legal blogs". This is a must bookmark site.The blogs or blawg are listed by category according to legal practice area...

Nuring Home Admissions Agreements - Be Aware, Be Very Aware

Posted on August 01, 2007
Category: Elder Law,Admitting a loved one to a nursing home can be very stressful. In addition to dealing with a sick family member and managing all the details involved with the move, you must decide whether to sign all the papers the nursing home is giving you...

Pets - More Than Companions to Seniors

Posted on July 30, 2007
In an odd bit of news re elder care, a cat that offers comfort to nursing home patients in their final hours. While it is a touching story, it highlights for me how many seniors die alone, and how many have pets that are their constant companions in later life that will need continuing care and provisions when their owner passes away...

A Practical Approach to a Power of Attorney

Posted on July 11, 2007
I always tell clients that just having a General Durable Power of Attorney is not enough - you need to have a broad and flexible General Durable Power of Attorney that will aid your attorney in fact, not hinder them. Remember that this will need to be used to make financial decisions for you, when you cannot otherwise make them for yourself...

Charitable Deduction Denied - Single Trust has Charities and Non-Charities as Beneficiaries

Posted on July 03, 2007
Category: Estate Planning, Estate and Inheritance Tax,The U.S. Court of Appeals for the Third Circuit (which controls District Court decisions in New Jersey) finds that the Internal Revenue Code prohibits an estate from claiming a charitable deduction when the proceeds of a single trust are distributed to both charitable and non-charitable beneficiaries...