For many of us, the thought of preparing a Will is very uncomfortable; it makes us nervous.  We feel that doing a Will may “invite” death.  To be sure, this is superstitious thinking, but, nevertheless, such thinking stops many of us from doing what’s in our best interest.

Preparing your Will is not bad luck.  Quite the contrary.  It’s the smart thing to do.  Getting your affairs in order helps ensure that your wishes will be respected when the time comes.  It doesn’t make that time come any sooner.  In fact, doing your Will is often accompanied by a sense of relief – one more thing off  of your “to do” list.

Planning ahead is a good thing.  We do it all the time – opening college funds to save for our children’s futures, opening 401Ks to save for our retirement, getting annual physicals to help ensure we stay healthy and “nip things in the bud.”  Doing a Will is part of planning; it’s part of taking care of ourselves and arranging for what’s important to us.

Getting Legal Help

Experienced  Estate Planning Attorney, Elga Goodman, can help you understand what estate planning is all about.  She can guide you through the process and work with you to prepare a Will that reflects your unique situation and wishes.

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In March 2013, the New Jersey Revised Uniform Limited Liability Act (RULLCA) was signed into law.  RULLCA makes significant changes to existing laws governing Limited Liability Companies (LLCs).

Of major significance,

- RULLCA establishes several “default” provisions in such key areas as LLC governance, voting and allocation, and distribution of profit and loss.  In cases where an LLC’s operating agreement is silent on RULLCA issues, or no operating agreement exists, the RULLCA default provisions will govern.  In those cases where an operating agreement exists, and it addresses RULLCA issues, the operating agreement overrides RULLCA.

- RULLCA goes into effect for all existing LLCs (those created on or before MARCH 17, 2013) on March 1, 2014.  Existing LLCs that do not like the RULLCA default provisions have up to February 28, 2014, to modify their existing operating agreements if needed, or to create new operating agreements, that will override these RULLCA provisions.

- RULLCA will apply to new LLCs created on or after March 18, 2013.  In cases where new LLCs wish to be exempt from RUULCA default provisions, alternative provisions must be incorporated into their operating agreements.

Getting Legal Help

Experienced Tax Attorney, Elga Goodman, can work with you to assess how RULLCA can benefit your LLC.   She can assist you in modifying existing operating agreements or creating new ones to optimize benefits.  Contact us today at 973-841-5111.

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It’s easy to get confused when it comes to legal terms.  Some terms sound like the same thing.  But, they’re not.  Today we’ll be discussing Wills vs. Living Wills, two very different documents.

- A Will (officially called a Last Will and Testament) is a document that states how you want your estate to be handled after you’re gone.  It specifies how your assets will be distributed to your beneficiaries, and names the Executor(s) who will oversee your estate to implement your wishes.   Your Will must be admitted to Probate Court where the Executor is “officially” authorized to manage the process.

- A complete Living Will includes an Advance Directive and a Health Care Proxy.  The Advance Directive states what medical treatment you want if you are terminally ill and unable to communicate your wishes.  The Health Care Proxy is where you designate your Health Care Agent, an individual selected by you who will be responsible for overseeing your medical care and ensuring that your wishes are respected.

- Unlike a Will that addresses your wishes after you’re gone, a Living Will provides instructions regarding medical treatment at the end of your life, while you’re still alive.  For example, if you are brain dead, but still breathing, do you want to remain on a ventilator or be removed?  Please note that although not required, it is highly recommended that you identify a Health Care Agent as part of your Living Will (see Health Care Proxy noted above) to speak on your behalf.

Getting Legal Help

Experienced Estate Planning Attorney, Elga Goodman, can help ensure that your Will and Living Will accurately reflect your wishes and needs, and that all necessary documents are correctly completed and compliant with state laws.  Contact us today at 973-841-5111.

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Divorce is a reality in today’s world.  Numerous studies indicate that 50% of marriages will end in divorce.  Of course, many divorced individuals go on to remarry.  And, of those who remarry, many have children from prior marriages. Hopefully, remarriage results in one big happy “blended family.”   However, a blended family comes with a unique set of estate planning and inheritance issues that must be addressed.

For example, how will you handle the assets that each of you accrued prior to remarrying?  This includes property and other financial assets as well as material items such as jewelry, furniture, all sorts of personal mementos.  Should the bulk or all of these assets go to your biological children?  Do you want to leave something to your stepchildren?  Do you want to provide for your surviving spouse?  The list goes on and on.  Without proper estate planning, you run the risk of unintended consequences after you’re gone. Your kids may not get what you planned.  There may be insufficient funds for your surviving spouse.  Family feuds and legal actions may ensue.

While there are many issues you will need to address, here are some things to start you off:

1.  Pre-nuptial agreements (“Pre-nups”) are useful tools for specifying what each of you owned before remarriage.

2.  Make sure you have a Will.  (And, if you have a Pre-nup, make sure your Will and Pre-nup are consistent.)  Without a Will, your assets will be distributed according to state laws, and these laws may be inconsistent with your wishes.

3.  Consider establishing a trust to provide for your surviving spouse.  A properly drafted trust will enable the surviving spouse to receive income and/or principal from the trust’s assets during his/her lifetime.  However, when your surviving spouse is gone, the principal can be distributed among your heirs as you intended.

4.  Review any beneficiary designation forms you have for retirement accounts and insurance policies.  Frequently, people forget to update these forms when they divorce or remarry.  But, it’s important to update these documents to insure that your assets go to your intended beneficiaries.

Getting Legal Help

Experienced Estate Planning Attorney, Elga Goodman, can help you understand the various issues and options available when planning involves a blended family.  She can help ensure that your assets are distributed in keeping with your wishes.  Contact us today at 973-841-5111.

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Divorce is a reality in today’s world.  Numerous studies indicate that 50% of marriages will end in divorce.  Of course, many divorced individuals go on to remarry.  And, of those who remarry, many have children from prior marriages. Hopefully, remarriage results in one big happy “blended family.”   However, a blended family comes with a unique set of estate planning and inheritance issues that must be addressed.

For example, how will you handle the assets that each of you accrued prior to remarrying?  This includes property and other financial assets as well as material items such as jewelry, furniture, all sorts of personal mementos.  Should the bulk or all of these assets go to your biological children?  Do you want to leave something to your stepchildren?  Do you want to provide for your surviving spouse?  The list goes on and on.  Without proper estate planning, you run the risk of unintended consequences after you’re gone. Your kids may not get what you planned.  There may be insufficient funds for your surviving spouse.  Family feuds and legal actions may ensue.

While there are many issues you will need to address, here are some things to start you off:

1.  Pre-nuptial agreements (“Pre-nups”) are useful tools for specifying what each of you owned before remarriage.

2.  Make sure you have a Will.  (And, if you have a Pre-nup, make sure your Will and Pre-nup are consistent.)  Without a Will, your assets will be distributed according to state laws, and these laws may be inconsistent with your wishes.

3.  Consider establishing a trust to provide for your surviving spouse.  A properly drafted trust will enable the surviving spouse to receive income and/or principal from the trust’s assets during his/her lifetime.  However, when your surviving spouse is gone, the principal can be distributed among your heirs as you intended.

4.  Review any beneficiary designation forms you have for retirement accounts and insurance policies.  Frequently, people forget to update these forms when they divorce or remarry.  But, it’s important to update these documents to insure that your assets go to your intended beneficiaries.

Getting Legal Help

Experienced Estate Planning Attorney, Elga Goodman, can help you understand the various issues and options available when planning involves a blended family.  She can help ensure that your assets are distributed in keeping with your wishes.  Contact us today at 973-841-5111.

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It is estimated that, annually, over 50% of adults in the United States die without a Will.  Fortunately, state laws are in place to handle such occurrences.  Our February 14, 2013, post discussed settling an estate when a Will exists.  This post addresses how estates are settled when there is no Will.

There are two big differences between leaving a Will or dying “intestate ” (without a  Will).

1.  If you have a Will, you can specify who your Executor will be (i.e., the person who settles your estate after you’re gone).  In other words, you pick the person(s) who you prefer to handle your estate.  However, if you die intestate, then the state Surrogate’s Court will appoint an Administrator (who performs the same duties as an Executor).

So, for example, let’s say your father died without a Will, your mother is still alive, and you have a sister.  Since there is no Will, someone must go to Surrogate’s Court and file an application so that he/she can be appointed the estate’s Administrator.  NJ state law specifies the “order of priority” regarding who may apply for the Administrator position.  At the top of the list are the closest surviving next of kin.  In this case, that would be your mother.  However, if your mother doesn’t want this responsibility, next in line are you and your sister.  If no family member wants this position (that includes grandchildren, cousins, etc.), then a creditor or other interested party may apply.

As noted above, the Administrator will perfom the same duties that would be performed by the designated Executor in a Will.  These duties include identification, collection, and valuation of the decedent’s assets, management of all assets, and payment of all debts and expenses, including all federal and state taxes.  Once these responsibilities are fulfilled, then all remaining assets  are distributed to beneficiaries.  It can take the Administrator quite a while to wind up the decedant’s affairs, and the services of professionals such as attorneys and accountants may be needed.

2.  If you have a Will, you have much more control over how your estate will be distributed – who will receive what, and how much!  If you die without a Will, state laws provide detailed guidelines regarding how much and to whom your estate will be distributed.

In our example, state guidelines would specify what perecentage of your father’s estate went to your mother, you, your sister, your father’s surviving parent(s), your father’s surviving siblings, and the list goes on.  Bottom line, because your father died intestate, there was no record of how he wanted his estate handled and he, therefore, had no control over how his estate was distributed.

Getting Legal Help

If you have assets, and you want to specify how those assets should be distributed when you’re gone, then it’s important to have a Will.  Experienced Estate Planning Attorney, Elga Goodman, can work with you to prepare a Will that best reflects your wishes.  Contact us today at 973-841-5111.

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We’ve all seen the movie.  A relative passes away, and the surviving loved ones silently sit in an office as the attorney for the deceased reads the “Last Will and Testament” out loud.  Welcome to Hollywood!

In actuality, there is no formal “reading of the Will.”  Rather, when someone passes away, the Will is “admitted” to probate court, at which time the court appoints an Executor who is responsible for settling the estate.  (Typically, the Executor was named by the deceased in his/her Will.)

Within 60 days of  having been appointed, the Executor must notify all next of kin and beneficiaries named in the Will that the Will has been probated, and that an Executor has been appointed (name and contact information included).  Included with this notification will be a copy of the Will or information regarding how to obtain a copy. This is a key step in the process and one that is very important for your purposes.  While there is no formal “reading of the Will,” if you are a beneficiary, this is how you will be officially notified.  And, since you will have access to a copy of the Will, you’ll know the details pertaining to you.

Sorry to disappoint those of you who love the “reading of the Will”  suspense.   There’s always the movies!

Getting Legal Help

Experienced Estate Planning Attorney, Elga Goodman, can assist you with all aspects of Wills and estate planning.  Contact us today at 973-841-5111.

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Question: My aunt passed away a month ago and my cousin, her daughter, seems to be in charge.  I think my aunt left me some money, but my cousin has not given me any information.  I don’t want to be insensitive and discuss this with my cousin in her time of grief.  However, I would like to know if I really am a beneficiary, and, if so, how much was left to me, and when I can expect to receive my inheritance.  What do I do?

Answer:  This is a great question and a fairly common one.  First of all, be patient.  Settling an estate takes time.  Here are some things you need to know about the process:

1. The first official act that occurs after someone dies is that his/her Will is “admitted” to probate court.  At that time, the court designates an Executor who is responsible for “settling” the estate.  This starts the probate process.  (It should be noted that, often, the Will specifies who the Executor is.  However, if there is no Will, or no Executor was named in the Will, the court will appoint an Administrator.)

2. Within 60 days of  having been appointed, the Executor/Administrator must notify all next of kin and beneficiaries of the Will that the Will has been probated, and that an Executor/Administrator has been appointed (name and contact information included).  Included with this notification will be a copy of the Will or information regarding how to obtain a copy. This is a key step in the process and one that is very important for your purposes.  If you are a beneficiary, this is how you will be officially notified.  And, since you will have access to a copy of the Will, you will know the details pertaining to you.

3.  As for the Executor/Administrator “settling” the estate, this is where your patience needs to kick in!  It can take the Executor/Administrator quite a while to wind up the decedant’s affairs and, often, the services of professionals (such as attorneys and accountants) are required.  Highlights of the Executor/Adminstrator’s “To Do” list include identification, collection, and valuation of the decedent’s assets, management of all estate assets, and payment of all debts and expenses, including all federal and state taxes.  Only after all of these matters have been addressed can the Executor/Administrator proceed to distribute the remaining assets to beneficiaries.  Depending on the size of the estate, this process can take months, or, in many cases, one or more years to complete.

4.  It should be noted that if the beneficiary completed beneficiary designation forms for any Retirement Savings Plans such as 401Ks, Individual Retirement Accounts (IRAs), life insurance policies, and/or bank and brokerage accounts where applicable, these assets will fall outside of the probate process.  The individual institutions where these assets reside will be responsible for distributing the  monies directly to the designated beneficiaries.  However, it may still take several months for beneficiaries to receive their monies.

So, what should you do while the probate process works its way through to completion?  First, stay calm.  And try to maintain a cordial relationship with the Executor/Administrator.  Threats and arguments over your portion of the estate won’t necessarily help you get your inheritance any faster.  In fact, they may delay the process!

While this posting addresses beneficiaries’ issues where a Will is involved, our next post will address beneficiaries’ concerns where no Will exists.

Getting Legal Help

When inheritance issues arise, you may find it helpful to contact an attorney for information and guidance.  Experienced estate planning attorney, Elga Goodman, can assist you in understanding the issues and helping you with the process.  Contact us today at 973-841-5111.

So,what should you do while the probate process works its way to completion?  First, stay calm.  Have a cordial relationship with the Administrator is a definite plus.  Threats and arguments over your portion of the estate won’t necessarily help you get your inheritance.  In fact, it may iening to sue is not necessarily going to help expedite your claim to the will.

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Getting your estate in order requires careful attention to details.  Are you going to leave your assets outright to your wife and/or children or does establishing Trusts make more sense?  How can you provide ongoing assistance for a child with special needs after you’re gone? If you have a business, how will you distribute the shares among your heirs?  Who will you designate to be the Executor of your Will, the Trustee(s) for any Trusts you establish, the Guardian(s) for your young children? And the list goes on.

An important “to do”, but one that is sometimes overlooked, involves beneficiary designation forms. These forms should be completed for Retirement Savings Plans such as 401Ks and Individual Retirement Accounts (IRAs), life insurance policies, and bank and brokerage accounts where applicable.  Each company with whom you have such an account requires that you complete a beneficiary designation form.  On this form you designate the party or parties who will inherit the assets in that specific account after you’re gone.

Beneficiary designation forms are very important.  When people neglect to complete these forms, the corresponding assets may not pass to the intended beneficiaries.  Additionally, with certain types of accounts, such as IRA’s, there may be negative tax implications if the beneficiary designation has not been properly completed.  Problems may also arise in cases where people initially fill out these forms, but then neglect to update them as life circumstances change.  For example, you may have designated your first wife as your beneficiary on your life insurance beneficiary designation form.  However, you two have since divorced and you have remarried.  Do you still want your first wife to inherit your life insurance after your gone?  If the answer is “no”, then you need to update your life insurance beneficiary designation form with your current information!

You want to get it right when you do estate planning.  Be sure that the information you include on your beneficiary designation forms is consistent with the way you structured your Will.  Otherwise, there may be unintended consequences that do not reflect your wishes.  Working with an estate planning attorney is an excellent way to help insure that your Will correctly reflects your wishes, and that all the necessary forms, including beneficiary designation forms, are completed, updated as needed, and consistent with the terms of your will.

Getting Legal Help

Experienced Estate Planning Attorney, Elga Goodman, can help you understand the various alternatives in estate planning and the numerous issues that need to be addressed.  She can assist you in creating a comprehensive estate plan that best reflects your wishes and the needs of your loved ones.  Contact us today at 973-841-5111.

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