Hanlon Niemann Blog | A Freehold, New Jersey Law Firm

By: Fredrick P. Niemann, a NJ Accredited Veterans Benefits Attorney

You may be eligible for a monthly check from the VA in many cases of between $985.00 and $1959.00 per month (or more) for military services you (or your spouse) performed for our country many years (even decades) ago.

If you want the bottom line and you want  to find out if its likely you’re eligible for a monthly check from the VA (I say likely eligible because of course the VA makes that decision), then the quickest way to find out is to call my office at (732)863-9900.

Then, after scheduling a brief in person meeting or phone conversation with me, I’ll be able to give you an understanding of what benefits may, or may not, be available through the VA.

If there are things we can do to help you get qualified, we’ll let you know.  And if there is nothing to do or no steps to take we’ll let you know that too.

Wouldn’t it be nice to have a trusted guide, someone who has been on this path many times before, shine a light and show you where to go and what pitfalls to avoid? That’s what I do for my clients as I take them towards VA benefit eligibility.

If you would like to discover if you are eligible for a VA benefit, call me at (888)800-7442.  Or, if you would prefer, email me at fniemann@hnlawfirm.com and ask me to follow up with you.  That way, if you need answers you have got a place to turn to.  And I am happy to help you right away if you would like.

In the meantime, here is the information I promised you:

So if you want to know about the veteran’s pension benefits maze?  I know if looks daunting!  This is exactly why at our firm we call it a “maze”.  Take a quick look now, but don’t worry-we are going to walk you through all of this in plain old English during our consultation… and there may well be a very big payoff for you and your loved ones by the time we finish going through the VA maze.

Benefits Chart 2011 Figures

Service Pension Rates (The veteran is alive):

Service Pension
Maximum Annual Pension Rate - $985.00
Monthly MAPR - $11,830.00
With one dependent:
Maximum Annual Pension Rate - $1,291.00
Monthly MAPR - $15,493.00

Housebound
Maximum Annual Pension Rate - $1,205.00
Monthly MAPR - $14,457.00
With one dependent:
Maximum Annual Pension Rate - $1,510.00
Monthly MAPR - $18,120.00

Aid and Attendance
Maximum Annual Pension Rate - $1,645.00
Monthly MAPR - $19,736.00
With one dependent:
Maximum Annual Pension Rate - $1,959.00
Monthly MAPR - $23,396.00

For each additional dependent child:
Maximum Annual Pension Rate - $168.00
Monthly MAPR - $2,020.00

Death Pension Rate: (The Veteran is not alive):

Death Pension
Maximum Annual Pension Rate - $661.00
Monthly MAPR - $7,933.00
With one dependent child:
Maximum Annual Pension Rate - $865.00
Monthly MAPR - $10,385.00

Housebound
Maximum Annual Pension Rate - $808.00
Monthly MAPR - $9,696.00
With one dependent child:
Maximum Annual Pension Rate - $1,012.00
Monthly MAPR - $12,144.00

Aid & Attendance
Maximum Annual Pension Rate - $1,100.00
Monthly MAPR- $13,195.00
With one dependent child:
Maximum Annual Pension Rate - $1,261.00
Monthly MAPR - $15,128.00

For each additional dependent child:
Maximum Annual Pension Rate - $168.00
Monthly MAPR - $2,020.00
Well that’s a lot to absorb.  But here’s the point, if you qualify you can receive between $600 and almost $2,000 per month in what is known as an Aid and Attendance Pension Benefit.

 
If you have any questions with regard to Veterans Pension Benefits, contact Fredrick P. Niemann, Esq; an experienced Veterans Benefits attorney toll-free at 888 800-7442 or e-mail him at fniemann@hnlawfirm.com today.

By Fredrick P. Niemann, Esq., a New Jersey Probate Attorney

Recently a New Jersey intestate estate (death without a will or trust) passed under New Jersey law to the surviving spouse.  The decedent owned several joint bank accounts with his wife. The decedent had quite a few debts, including credit card and medical bills.  The question raised is whether non-probate assets are subject to creditor claims or if the estate can be deemed insolvent. 

The answer may surprise you.  Non probate assets are not immune from creditors against an estate of a deceased party to pay debts, taxes, and expenses of administration, if other assets of the estate are insufficient.  A surviving party, P.O.D. payee, or beneficiary who receives payment from a joint-party account after the death of a deceased party shall be responsible to the extent necessary to discharge the claims and debts unpaid by the decedent’s estate.  A proceeding in the Chancery Division of the New Jersey Supreme Court to assert this liability must be commenced no later than 2 years following the death of the decedent.  Sums recovered by the estate representative are to be administered as part of the decedent’s estate. 

If you have any questions regarding New Jersey Probate Law, please contact Fredrick P. Niemann, Esq. today. He can be reached at toll free 732-863-9900 or by email at fneimann@hnlawfirm.com. Mr. Niemann would be more than happy to answer any questions you may have.

By Fredrick P. Niemann, Esq., a New Jersey Estate Planning Lawyer

New Jersey law allows a waiver of right to inherit an estate of a deceased spouse.  A widow’s premarital waiver of an elective share to the Estate of her late husband will however be voided after lawsuits are filed when the underlying premarital contract is found unenforceable. 

Often there are conflicts between a step-parent and the children of the deceased parent.  The issues involve the enforceability of the steps-parents’ rights to inherit a portion of his/her late husband’s estate, even though she had waived her rights to the estate before marriage.

Under New Jersey Law, because of the requirements of N.J.S.A. 3B:8-10 and N.J.S.A. 37:2-30, if a premarital agreement cannot be enforced then a waiver of rights is unenforceable.

Fredrick P. Niemann, Esq. of Hanlon Niemann, a central New Jersey law firm commented that a married person needs to exercise extreme caution and adherence to both form and substance who contemplate second and/or successive marriages and who want to protect their estate for the benefit of their children.  Mr. Niemann cautions that without a carefully prepared pre-marital agreement, “Older, financially successful men and women must be aware of the significant, almost enormous risks to them should the marriage fail.  By consulting with a qualified New Jersey Estate Planning attorney, the individual can take meaningful steps to protect their life’s savings for the benefit of all who are intended to receive it.”

If you have any questions regarding Premarital Agreements and New Jersey Estate Planning, contact Fredrick P. Niemann, Esq. toll-free at (888) 800-7442 or e-mail him at fniemann@hnlawfirm.com.  He will be happy to assist you.  For more information, go to http://www.youtube.com/user/NJElderLawCenter#p/search/0/8be14yDEeJc to learn more.

By Fredrick P. Niemann, Esq. a New Jersey Estate Administration and Probate Lawyer
The Requirement of Filing Federal Gift Tax Returns – Under the tax code the general rules applicable to income tax returns apply to annual gift tax returns.  That is, a 3-year statute of limitations applies to the initiation of an audit based on the value of the gift.  The IRS has issued regulations describing substantiation requirements to ensure the protection of the statute of limitations for gift purposes. The IRS can challenge the substantiation or appraisal information on gift tax returns many years after the expiration of the statute of limitations under certain cases, mainly based on fraud.  The IRS may challenge the gift value based on the adequacy of the substantiation provided with the initial return and will most likely occur when the donor’s estate is audited.  Our recommendation at this time is that all records, such as valuation reports, bank records, and any other items substantiating a gift tax return, should be kept until the donor’s estate tax return is settled.

New Jersey and Federal Estate Tax Returns - The federal statute of limitations is, again, 3 years from the date the return is filed.  However, in many cases, the federal estate tax return is extended by 5 months beyond the normal due date of 9 months following the date of the decedent’s income tax returns as long as the estate is open.  These income tax returns will also have a 3-year statute of limitations.  A good rule of thumb is to keep the estate records for 5 years after the decedent’s death or until a final closing agreement is reached with the IRS, if later.

If you have any questions regarding gift taxes, contact Fredrick P. Niemann, Esq. toll free at (888) 800-7442 or e-mail him at fniemann@hnlawfirm.com.  He will be happy to assist you.

By Fredrick P. Niemann, Esq., a NJ Will Attorney

When creating your last will and testament as part of estate planning, an important decision you will have to make is who to name as your executor fiduciary. By fiduciary, I mean your Executor under your Last Will and Testament.  An estate fiduciary is a fancy legal term for the person who will take care of your assets and Estate if you are unable to do it yourself, such as the 1) executor of an estate, 2) the trustee of a trust, or 3) an attorney-in-fact under a power of attorney. Your first reaction might be to name one of your children as a fiduciary, but if you want to avoid conflict among your children, this might not be the best option.

When naming a fiduciary, be confident you can rely upon the individual.  This is why people often name family members as fiduciaries. However problems can arise when a parent with two or more children names one child as a fiduciary. According to Fredrick P. Niemann, an attorney from Freehold, New Jersey, who spoke on the issue of family harmony at a recent will seminar, a child is often not the best fiduciary for several reasons:

• It is hard for a child to be completely objective.
• Children often disagree over many things, including how long the estate should take to complete, the   selling of assets, and  the division of personal property.
• Children often don’t communicate with each other well.
• Unresolved lifetime rivalries.

An alternative is to hire a professional fiduciary or executor. A professional fiduciary can be a bank, investment firm with estate administration experience, a certified public accountant, or a trust company. A professional fiduciary will charge a fee, but the fee is established ahead of time. In addition, because a professional is experienced in managing money and property, your assets are more likely to increase under this person’s or institution’s guidance.

To ensure that your family remains partially involved and has some input, you can include a provision that allows one or more family members to discharge the fiduciary if they feel the professional is not doing a good job. This will allow your family to make sure the fiduciary is performing properly without having the burden of acting as fiduciary.

For further information and advice in any estate planning matter or by the use of a will, do not hesitate to contact me toll-free at (888) 800-7442, or e-mail me at fniemann@hnlawfirm.com.  We can meet to discuss your questions and issues.  For further information, go to http://www.youtube.com/user/NJElderLawCenter#p/search/0/XfXdZF-5snk to learn more.

By Fredrick P. Niemann, Esq., a NJ Power of Attorney Lawyer

When creating an estate plan and creating a power of attorney, an important decision you will have is who to name as your fiduciary. By fiduciary, I mean your  power of attorney. A fiduciary is a fancy legal term for the person who will take care of your assets if you are unable to do it yourself, such as an attorney-in-fact under a power of attorney. Your first reaction might be to name one of your children as a fiduciary, but if you want to avoid conflict among your children, this might not be the best option.

When naming a fiduciary, be confident you can trust the individual.  This is why people often name family members as fiduciaries. However problems can arise when a parent with two or more children names one child as a fiduciary. According to Fredrick P. Niemann, an attorney from Freehold, New Jersey, who spoke on the issue of family harmony at a recent estate planning seminar on powers of attorney, a child is often not the best fiduciary for several reasons:

• It is hard for a child to be completely objective.
• Children often disagree over many things.
• Children often don’t communicate with each other well.
• Unresolved lifetime rivalries.

An alternative is to hire a professional power of attorney. A professional fiduciary can be a bank, investment firm with trust administration, a certified public accountant, or a trust company. A professional fiduciary will charge a fee, but the fee is established ahead of time. In addition, because a professional is experienced in managing money and property, your assets are more likely to increase under this person’s or institution’s guidance.

To ensure that your family remains partially involved and has some input, you can include a provision that allows one or more family members to discharge the fiduciary if they feel the professional is not doing a good job. This will allow your family to make sure the fiduciary is performing properly without having the burden of acting as fiduciary.

For further information and advice with a power of attorney, do not hesitate to contact me toll-free at (888) 800-7442, or e-mail me at fniemann@hnlawfirm.com.  We can meet to discuss your questions and issues.  For further information, please go to http://www.youtube.com/user/NJElderLawCenter#p/search/3/a65_eWdihuU to learn more.

By:  Fredrick P. Niemann, Esq., a New Jersey Estate Planning Attorney

This is the 3rd part of a three part series on credit shelter trust and the new federal estate tax portability.

Blended Family Estates

Reliance on portability may also defeat, either intentionally or unintentionally, the testamentary plan of the pre-deceased spouse.  It is common today for one or both spouses to have children from prior marriages.  There is no assurance that a surviving spouse who inherits outright the estate of his or her pre-deceased spouse will leave that property to the pre-deceased spouse’s children.  It is equally common for a surviving spouse to remarry.  If such a remarriage ends in divorce, it is possible that some or all of the inherited assets may be subject to division by the family law court.  If the marriage is successful, it is equally possible that the surviving spouse will leave his or her new spouse some or all of the assets inherited from the pre-deceased spouse.

Tax Considerations

A credit trust is a potentially more tax efficient vehicle than reliance on portability.  A property drafted credit trust can be used to sprinkle taxable income to beneficiaries in lower tax brackets, which cannot occur when property is left outright to the surviving spouse without such distributions being treated as taxable gifts.  If portability is relied upon and the pre-deceased spouse leaves his or her surviving spouse to children during his lifetime will constitute taxable gifts to the extent they exceed the surviving spouse’s annual exclusion.

Lastly, planners should keep in mind that portability will sunset for people dying on or after January 1, 2013.  Planners relying on portability are limited to factual situations in which both spouses die prior to that date.  In most situations, it appears estate plans that use credit trusts are far more practical and far less dangerous than reliance on portability.

For more information on credit shelter trusts and the new federal estate tax portability, please contact Fredrick P. Niemann, Esq. toll-free at (888) 800-7442 or email him at fniemann@hnlawfirm.com.

By Fredrick P. Niemann, Esq., a NJ Trust Attorney

When creating an estate plan under your will, an important decision you will have is who to name as your fiduciary. By fiduciary, I mean your Executor under your Lat Will and Testament.  A fiduciary is a fancy legal term for the person who will take care of your assets and Estate if you are unable to do it yourself, such as the 1) executor of an estate, 2) the trustee of a trust, or 3) an attorney-in-fact under a power of attorney. Your first reaction might be to name one of your children as a fiduciary, but if you want to avoid conflict among your children, this might not be the best option.

When naming a fiduciary, be confident you can trust the individual.  This is why people often name family members as fiduciaries. However problems can arise when a parent with two or more children names one child as a fiduciary. According to Fredrick P. Niemann, an attorney from Freehold, New Jersey, who spoke on the issue of family harmony at a recent trust seminar, a child is often not the best fiduciary for several reasons:

• It is hard for a child to be completely objective.
• Children often disagree over many things, including how long the estate should take to complete, the selling of assets, and  the division of personal property.
• Children often don’t communicate with each other well.
• Unresolved lifetime rivalries.

An alternative is to hire a professional fiduciary. A professional fiduciary can be a bank, investment firm with trust administration experience with trust powers, a certified public accountant, or a trust company. A professional fiduciary will charge a fee, but the fee is established ahead of time. In addition, because a professional is experienced in managing money and property, your assets are more likely to increase under this person’s or institution’s guidance.

To ensure that your family remains partially involved and has some input, you can include a provision that allows one or more family members to discharge the fiduciary if they feel the professional is not doing a good job. This will allow your family to make sure the fiduciary is performing properly without having the burden of acting as fiduciary.

For further information and advice in estate planning with living ,revocable trust, do not hesitate to contact me toll-free at (888) 800-7442, or e-mail me at fniemann@hnlawfirm.com.  We can meet to discuss your questions and issues.

Part 4 of 4
By: Fredrick P. Niemann, Esq. an Estate Planning Attorney

This is the fourth and final installment on the use of beneficiary designation in probate and estate planning.

For nonretirement assets, your assets and savings typically flow into your estate upon death and are distributed according to your will or trust, assuming you have one.

For retirement assets, it’s not simple.  The funds would be distributed according to your administrator’s plan document, for example:  to your spouse if you are married, or to your estate if you are not.  This can happen inadvertently if you don’t update beneficiary forms when beneficiaries die, or if you don’t name contingent beneficiaries.  (A contingent or second beneficiary the person or entity you want to get the proceeds of your accounts if the primary beneficiary predeceases you. There can be multiple contingent beneficiaries).

I recently read of a person, a widow, who died suddenly last year.  If the widow’s beneficiary designations had not been updated after her husband passed away, her $1 million IRA would have gone to her estate instead of directly to her children, triggering a big tax bill and preventing her children from stretching out the IRA distributions for decades.

How can I ensure my wishes will be honored?

Financial institutions merge.  Records can be lost.  Keep copies of all your beneficiary forms and send them certified mail, return receipt requested.  Then check regularly, perhaps at tax time, to make sure that what your institution has on file is correct.  Don’t expect your bank, broker or IRA custodian to tell you if something is amiss with your beneficiary designations.  Don’t assume its right.
For more information please contact Fredrick P. Niemann, Esq. toll-free at (888) 800-7442 or email him at fniemann@hnlawfirm.com.  For further information, please go to http://www.youtube.com/user/NJElderLawCenter#p/search/0/XpuVawQtBnQ to learn more.

By: Fredrick P. Niemann, Esq., a New Jersey Estate Planning Attorney

         
This is the first part of a three part series on credit shelter trusts and the new federal estate tax portability laws.

Does portability mean the end of the “Credit Shelter Trust”?

The answer is no!  The 2010 Tax Act has made it possible for the estate of a surviving spouse to make use of the unused estate tax exemption of his or her predeceased spouse. Some have suggested that portability makes it unnecessary to continue to draft estate plans that include credit shelter trusts.

Understanding portability involves understanding two new estate tax terms:  the basic exclusion amount and the deceased spousal unused exclusion amount (DSUEA).

The new $5million estate tax exclusion is available for people dying beginning January 1, 2011, and December 31, 2012.  Portability will exist only if both spouses die within the next 18 months.

A second issue may make use of his or her predeceased spouse’s exclusion, if the predeceased spouse’s estate files a timely estate tax return.  Advocates of using portability in lieu of credit trusts argue that portability reduces the cost of estate planning because plans relying on portability will be simpler documents to draft and the survivor will be faced with less post-death complexity because the number of trusts the survivor must contend with will be reduced.  Both assumptions are questionable.

In our next post we will discuss why.

For more information, please contact Fredrick P. Niemann, Esq. toll free at (888) 800-7442 or e-mail him at fniemann@hnlawfirm.com.