Happy New Year from all of us here at Simeone & Bonfrisco!!
Get the new year started off right with a great estate plan!
In honor of the New Year we would like to offer you One FREE Simple Will.
Please call our office to set up an appointment and mention our New Year offer. (856) 663-3800
This offer is only valid until 2/1/2010
If you already have a simple will, please mention this offer to a close friend or family member.
For more information please visit our website:
www.NJTrustLawyer.com
Tuesday, December 29, 2009
Tuesday, December 22, 2009
Today's NJ Probate Answers
Do all estates pay Federal Estate Taxes?
No. The federal government has given every person in the United States an exemption for estate tax purposes. Presently, the exemption is $2,000,000 in 2006. That means if your estate at the time of your death is less than the exemption, there will be no federal estate taxes due. In deciding whether your estate is greater than or less than the exemption, the government includes everything you own, even the face value of your life insurance policies.
The exemption will increase to $3,500,000 in 2009. In 2010, the estate tax is repealed. However, in 2011, the estate tax comes back with an exemption of only $1,000,000 and a maximum tax rate of 55%.
Is there an Estate Tax Deduction for married people?
Yes. In addition to the phased-in personal exemption that everyone gets, the federal government has exempted all transfers of wealth between a husband and wife. This is called the Unlimited Marital Deduction and it means that regardless of the size of your estate there will be no federal estate taxes levied when the first spouse dies and leaves the estate to the surviving spouse. Keep in mind, however, that this is merely a postponement of tax. There will be a tax on the estate of the surviving spouse when it passes to the children or other beneficiaries. Since in all probability the estate will continue to appreciate in value, taxes may be paid at a higher rate.
WARNING: There is no unlimited marital deduction for surviving spouses who are not U.S. citizens. Without special planning, all non-citizen spouses are restricted to the tax-free transfer of the personal exemption amount from their deceased spouses.
For more information, please visit our website:
www.NJTrustLawyer.com
No. The federal government has given every person in the United States an exemption for estate tax purposes. Presently, the exemption is $2,000,000 in 2006. That means if your estate at the time of your death is less than the exemption, there will be no federal estate taxes due. In deciding whether your estate is greater than or less than the exemption, the government includes everything you own, even the face value of your life insurance policies.
The exemption will increase to $3,500,000 in 2009. In 2010, the estate tax is repealed. However, in 2011, the estate tax comes back with an exemption of only $1,000,000 and a maximum tax rate of 55%.
Is there an Estate Tax Deduction for married people?
Yes. In addition to the phased-in personal exemption that everyone gets, the federal government has exempted all transfers of wealth between a husband and wife. This is called the Unlimited Marital Deduction and it means that regardless of the size of your estate there will be no federal estate taxes levied when the first spouse dies and leaves the estate to the surviving spouse. Keep in mind, however, that this is merely a postponement of tax. There will be a tax on the estate of the surviving spouse when it passes to the children or other beneficiaries. Since in all probability the estate will continue to appreciate in value, taxes may be paid at a higher rate.
WARNING: There is no unlimited marital deduction for surviving spouses who are not U.S. citizens. Without special planning, all non-citizen spouses are restricted to the tax-free transfer of the personal exemption amount from their deceased spouses.
For more information, please visit our website:
www.NJTrustLawyer.com
Friday, December 18, 2009
Common Probate Terms
Understand what your needs are with knowing the common probate terms, Some of these terms may even answer your questions!
Revocable Living Trust- Prepare comprehen-sive, customized plans according to your needs.
Special Needs and Divorce Protection- Pro-tect loved ones and get informed advice on these important estate planning issues.
Asset Protection- Receive guidance on pro-tecting your legacy.
Retirement Planning- Ensure that your tax-deferred accounts are properly structured to give your family the greatest tax advantages possible.
Long-Term Health Care- Make sure you have properly outlined necessary health care instruc-tions.
Creditor Protection- Find out how you can pro-tect your estate and your heirs.
Structured Buy-Out Plans- The plan you cre-ate for your children to sell or distribute land and assets.
Trust Administration- Distributing your estate after the first and second spouses pass away according to the way your Trust dictates.
Advanced Planning- Get assistance with mat-ters such as Family Limited Partnerships, Ir-revocable Life Insurance Trusts, Charitable Remainder Trusts and Business Succession Planning.
Probate Assistance- Get the assistance you need when someone with or without a Will passes away.
Updating Documents- Ensure that your affairs are in order with regular estate reviews. Amend or restate your existing estate plan to ensure its effectiveness.
Tax Planning- Preserve your wealth and reduce taxes with proper planning.
For more information regarding probate, please visit our website:
www.NJTrustLawyer.com
Revocable Living Trust- Prepare comprehen-sive, customized plans according to your needs.
Special Needs and Divorce Protection- Pro-tect loved ones and get informed advice on these important estate planning issues.
Asset Protection- Receive guidance on pro-tecting your legacy.
Retirement Planning- Ensure that your tax-deferred accounts are properly structured to give your family the greatest tax advantages possible.
Long-Term Health Care- Make sure you have properly outlined necessary health care instruc-tions.
Creditor Protection- Find out how you can pro-tect your estate and your heirs.
Structured Buy-Out Plans- The plan you cre-ate for your children to sell or distribute land and assets.
Trust Administration- Distributing your estate after the first and second spouses pass away according to the way your Trust dictates.
Advanced Planning- Get assistance with mat-ters such as Family Limited Partnerships, Ir-revocable Life Insurance Trusts, Charitable Remainder Trusts and Business Succession Planning.
Probate Assistance- Get the assistance you need when someone with or without a Will passes away.
Updating Documents- Ensure that your affairs are in order with regular estate reviews. Amend or restate your existing estate plan to ensure its effectiveness.
Tax Planning- Preserve your wealth and reduce taxes with proper planning.
For more information regarding probate, please visit our website:
www.NJTrustLawyer.com
Tuesday, December 15, 2009
Today's Probate Answers
Does a Living Trust avoid a Death Probate?
Yes. All assets transferred to a living trust completely avoid the probate process, both during your life and at your death. Living trusts are not new. They’ve been successfully used in one form or another since the Middle Ages. Both then and now, the living trust has required that the owner of assets transfer title from his or her name to the name of trust. This really means changing the title to your property. For real property, it means you will sign a new deed. For other assets, you sign special transfer documents changing ownership to the name of your trust. Once the process is complete, all your assets will be owned by the trust. Almost nothing will be owned by you personally. Your living trust has title to the assets, but don’t worry, you, or you and your spouse if you’re married, have complete control of the trust while you’re alive. You can amend the trust or even revoke it whenever you like. But when you die, there are no assets in your name so there’s no need to go through probate. The trust already has your written instructions directing your hand picked agent, the successor trustee, about how you want your estate distributed.
With a living trust, there’s no need for “help” from the probate court or probate lawyers. Your trust will completely eliminate these unnecessary costs. Moreover, your estate can be distributed instantly at your death. There are no judges to consult or bureaucrats to please. Your trustee merely follows your instructions in distributing your estate according to your wishes.
For more information, please visit our website:
www.NJTrustLawyer.com
Yes. All assets transferred to a living trust completely avoid the probate process, both during your life and at your death. Living trusts are not new. They’ve been successfully used in one form or another since the Middle Ages. Both then and now, the living trust has required that the owner of assets transfer title from his or her name to the name of trust. This really means changing the title to your property. For real property, it means you will sign a new deed. For other assets, you sign special transfer documents changing ownership to the name of your trust. Once the process is complete, all your assets will be owned by the trust. Almost nothing will be owned by you personally. Your living trust has title to the assets, but don’t worry, you, or you and your spouse if you’re married, have complete control of the trust while you’re alive. You can amend the trust or even revoke it whenever you like. But when you die, there are no assets in your name so there’s no need to go through probate. The trust already has your written instructions directing your hand picked agent, the successor trustee, about how you want your estate distributed.
With a living trust, there’s no need for “help” from the probate court or probate lawyers. Your trust will completely eliminate these unnecessary costs. Moreover, your estate can be distributed instantly at your death. There are no judges to consult or bureaucrats to please. Your trustee merely follows your instructions in distributing your estate according to your wishes.
For more information, please visit our website:
www.NJTrustLawyer.com
Wednesday, December 9, 2009
Congratulations to Estate Planning Attorney Michael D. Bonfrisco!
Congratulations to Attorney Michael D. Bonfrisco for receiving the award of AWESOME ATTORNEY by South Jersey Magazine!
In the November issue of South Jersey Magazine, attorney's are given special recognition for there astounding accomplishments. The local attorneys listed are the top vote-getters in Awesome Attorneys in South Jersey! To see the article, click here.For more information on our firm or Probate visit our website, www.NJTrustLawyer.com
Monday, December 7, 2009
Today's Probate Answers
Does Joint Tenancy avoid a Death Probate?
Well, the answer is yes and no. In the case of a husband and wife who own their assets in joint tenancy, there’s no death probate when the first spouse dies because title passes automatically to the surviving joint tenant. However, when the surviving spouse dies, there will be a complete probate on the entire estate.
The fact that joint tenancy ownership avoids death probate at the first spouse’s death is a small reward for the many other disadvantages of joint tenancy ownership. It can lead to huge unexpected liability when parents and children own assets together. In community property states it creates capital gains tax problems. It can create unintended beneficiaries and often causes gift and death tax problems. For these reasons, estate planning experts agree that joint tenancy may be the poorest estate planning tool.
Does a Will avoid a Death Probate?
No. In fact, a will guarantees probate. The word probate actually comes from the Latin and it means “to prove the will.” All property that is controlled by your will must go through the probate court. Once your estate enters the probate process, it’s trapped in the system until the judge releases it.
For more information, please visit our website:
www.NJTrustLawyer.com
Well, the answer is yes and no. In the case of a husband and wife who own their assets in joint tenancy, there’s no death probate when the first spouse dies because title passes automatically to the surviving joint tenant. However, when the surviving spouse dies, there will be a complete probate on the entire estate.
The fact that joint tenancy ownership avoids death probate at the first spouse’s death is a small reward for the many other disadvantages of joint tenancy ownership. It can lead to huge unexpected liability when parents and children own assets together. In community property states it creates capital gains tax problems. It can create unintended beneficiaries and often causes gift and death tax problems. For these reasons, estate planning experts agree that joint tenancy may be the poorest estate planning tool.
Does a Will avoid a Death Probate?
No. In fact, a will guarantees probate. The word probate actually comes from the Latin and it means “to prove the will.” All property that is controlled by your will must go through the probate court. Once your estate enters the probate process, it’s trapped in the system until the judge releases it.
For more information, please visit our website:
www.NJTrustLawyer.com
Monday, November 23, 2009
Today's Probate Answers
What happens to the real estate located in another state?
A probate must be instituted not only in the state where you lived, but in every state where you owned real estate. This is called an ancillary probate. Each state has probate jurisdiction of the real property located within its borders. That means that your family will have to file a new probate in each state and hire local counsel to represent the estate. Of course, this will add to the expenses that must be paid before your family receives its share.
Are there any other problems with a Death Probate?
Yes. Perhaps the most important disadvantage of death probate is that your family loses control of the estate. During probate, it may not be able to sell assets without court approval even if it needs the money. Opportunities can be lost because the cumbersome probate system moves so slowly.
Your family may pay an emotional price in probate as well. Because the process takes so long, it can be a constant reminder of the loss of a loved one. It can also foster arguments among family members who would normally seek support from one another. It’s common to see family members taking out their frustration about the system on one another, especially if one of the family members has been named the personal representative of the estate.
A probate must be instituted not only in the state where you lived, but in every state where you owned real estate. This is called an ancillary probate. Each state has probate jurisdiction of the real property located within its borders. That means that your family will have to file a new probate in each state and hire local counsel to represent the estate. Of course, this will add to the expenses that must be paid before your family receives its share.
Are there any other problems with a Death Probate?
Yes. Perhaps the most important disadvantage of death probate is that your family loses control of the estate. During probate, it may not be able to sell assets without court approval even if it needs the money. Opportunities can be lost because the cumbersome probate system moves so slowly.
Your family may pay an emotional price in probate as well. Because the process takes so long, it can be a constant reminder of the loss of a loved one. It can also foster arguments among family members who would normally seek support from one another. It’s common to see family members taking out their frustration about the system on one another, especially if one of the family members has been named the personal representative of the estate.
Friday, November 20, 2009
Living Probate
For most of our lives the greatest risk to our well-being isn’t death. It’s the ever-growing likelihood of becoming seriously ill or injured.
As Carolyn Henderson anxiously watched her husband’s flickering vital signs on the Intensive Care Unit monitor, she considered the irony of their circumstances. When she and Kirk planned how they might spend their thirtieth wedding anniversary, this sickbed vigil was the farthest thing from their minds. But then on the very day they planned to celebrate 30 years of marriage, Kirk Henderson, a robust, health-conscious, ex-pro football player in his mid-fifties, unexpectedly suffered a stroke. As the hours ticked by with no sign that Kirk would regain consciousness, Carolyn considered for the first time that he might not pull through.
Although Kirk didn’t die, he hasn’t fully recovered either. Today, two years after his stroke, the aftermath of his illness has rendered him barely able to walk or use his right arm. His speech is slurred, his thinking processes are still muddled, and he will probably need physical therapy for the rest of his life. Carolyn tries not to dwell on the remnants of her husband’s illness, emphasizing instead on the miraculous progress he has made in so many areas. But just when she starts to think things are returning to normal, she’s reminded that in the eyes of the law, her husband is as good as dead.
Declared mentally incompetent in a court of law, Kirk Henderson no longer has the right to make any decisions for himself. He can’t sign a check, conduct a financial transaction, or even decide how he wishes
to be cared for.
When they least expected it, the Hendersons discovered what insurance companies have been trying to tell us for years. For most of our lives, the greatest risk to our well-being isn’t death. It’s the ever-growing likelihood of becoming seriously ill or injured. And when illness or injury make us unable to manage our affairs for ourselves, we may face an ordeal nearly as debilitating as our disability itself. It’s a legal process commonly called Living Probate.
For more information on Living Probate, visit our website:
www.njtrustlawyer.com
As Carolyn Henderson anxiously watched her husband’s flickering vital signs on the Intensive Care Unit monitor, she considered the irony of their circumstances. When she and Kirk planned how they might spend their thirtieth wedding anniversary, this sickbed vigil was the farthest thing from their minds. But then on the very day they planned to celebrate 30 years of marriage, Kirk Henderson, a robust, health-conscious, ex-pro football player in his mid-fifties, unexpectedly suffered a stroke. As the hours ticked by with no sign that Kirk would regain consciousness, Carolyn considered for the first time that he might not pull through.
Although Kirk didn’t die, he hasn’t fully recovered either. Today, two years after his stroke, the aftermath of his illness has rendered him barely able to walk or use his right arm. His speech is slurred, his thinking processes are still muddled, and he will probably need physical therapy for the rest of his life. Carolyn tries not to dwell on the remnants of her husband’s illness, emphasizing instead on the miraculous progress he has made in so many areas. But just when she starts to think things are returning to normal, she’s reminded that in the eyes of the law, her husband is as good as dead.
Declared mentally incompetent in a court of law, Kirk Henderson no longer has the right to make any decisions for himself. He can’t sign a check, conduct a financial transaction, or even decide how he wishes
to be cared for.
When they least expected it, the Hendersons discovered what insurance companies have been trying to tell us for years. For most of our lives, the greatest risk to our well-being isn’t death. It’s the ever-growing likelihood of becoming seriously ill or injured. And when illness or injury make us unable to manage our affairs for ourselves, we may face an ordeal nearly as debilitating as our disability itself. It’s a legal process commonly called Living Probate.
For more information on Living Probate, visit our website:
www.njtrustlawyer.com
Monday, November 16, 2009
Today's Probate Answers
How are probate fees calculated?
The way probate fees are calculated is exceedingly unfair to your family. State law sets the probate fees that attorneys and personal representatives can charge. Many states allow attorneys to charge any fee that the court considers reasonable, without any limitations. Other states limit the fees to a fixed percentage of the estate. Under either method, the fees can be very expensive.
Probate fees are often levied at each spouse’s death. Depending on how title was held on the date of death, a married couple could pay some form of probate fees on the death of each spouse.
Not only are these fees excessive, but the manner in which they arrive at the size of your estate bears little resemblance to its actual value. In states that use the percentage of the estate method, probate fees are calculated on your estate’s gross value without deductions for liens or encumbrances. This means that if you have property worth $100,000 but owe $90,000 to a bank or some other financial institution, your probate fees will be based on the full $100,000, not the $10,000 equity interest you actually own. As you can see, this valuation method unfairly increases the size of your estate and results in the payment of larger fees.
How much does Probate cost?
Despite what probate lawyers say, probate can be very expensive. A recent national survey revealed that the average cost is between two and three percent of the gross value of the estate. A full sixty percent of the cost goes to lawyers and forty percent to personal representatives and others. One legal scholar who urges a reform in the probate system remarked that “the cost of probate expands to consume the money available.” Small estates are particularly vulnerable because even reasonable fees can eat up a large percentage of an estate’s assets. There just isn’t that much to go around. Remember, every dollar that goes to pay probate costs is a dollar that could benefit your family.
How long does Probate take?
The slow progress of your estate through probate can be very frustrating for the family. Although this complex process usually takes at least one and a half years to complete, many estates take years. Most people assume that their estates are simple and will glide through the system. Regardless of how simple an estate appears, it’s very difficult to close a full probate in less than a year. That’s because of all the steps that must be completed to the satisfaction of the court.
Are the details of the estate kept private in Probate court?
No. All probate proceedings are open to the public. Anyone who has an interest can pull your probate file and examine every detail of your financial life. The file will disclose an inventory and appraisal of every asset you owned at death. It reveals the name of all your creditors and amount owed to each. It lays out the names of all your beneficiaries and the amount and conditions of their inheritances. This information is often compiled and sold to those who use the information to sell products and services to vulnerable surviving family members. It can be particularly damaging if you owned a business. Your competitors will have a treasure trove of confidential business information at their fingertips in the probate file.
For more information, please visit us at www.NJTrustLawyer.com
The way probate fees are calculated is exceedingly unfair to your family. State law sets the probate fees that attorneys and personal representatives can charge. Many states allow attorneys to charge any fee that the court considers reasonable, without any limitations. Other states limit the fees to a fixed percentage of the estate. Under either method, the fees can be very expensive.
Probate fees are often levied at each spouse’s death. Depending on how title was held on the date of death, a married couple could pay some form of probate fees on the death of each spouse.
Not only are these fees excessive, but the manner in which they arrive at the size of your estate bears little resemblance to its actual value. In states that use the percentage of the estate method, probate fees are calculated on your estate’s gross value without deductions for liens or encumbrances. This means that if you have property worth $100,000 but owe $90,000 to a bank or some other financial institution, your probate fees will be based on the full $100,000, not the $10,000 equity interest you actually own. As you can see, this valuation method unfairly increases the size of your estate and results in the payment of larger fees.
How much does Probate cost?
Despite what probate lawyers say, probate can be very expensive. A recent national survey revealed that the average cost is between two and three percent of the gross value of the estate. A full sixty percent of the cost goes to lawyers and forty percent to personal representatives and others. One legal scholar who urges a reform in the probate system remarked that “the cost of probate expands to consume the money available.” Small estates are particularly vulnerable because even reasonable fees can eat up a large percentage of an estate’s assets. There just isn’t that much to go around. Remember, every dollar that goes to pay probate costs is a dollar that could benefit your family.
How long does Probate take?
The slow progress of your estate through probate can be very frustrating for the family. Although this complex process usually takes at least one and a half years to complete, many estates take years. Most people assume that their estates are simple and will glide through the system. Regardless of how simple an estate appears, it’s very difficult to close a full probate in less than a year. That’s because of all the steps that must be completed to the satisfaction of the court.
Are the details of the estate kept private in Probate court?
No. All probate proceedings are open to the public. Anyone who has an interest can pull your probate file and examine every detail of your financial life. The file will disclose an inventory and appraisal of every asset you owned at death. It reveals the name of all your creditors and amount owed to each. It lays out the names of all your beneficiaries and the amount and conditions of their inheritances. This information is often compiled and sold to those who use the information to sell products and services to vulnerable surviving family members. It can be particularly damaging if you owned a business. Your competitors will have a treasure trove of confidential business information at their fingertips in the probate file.
For more information, please visit us at www.NJTrustLawyer.com
Wednesday, November 11, 2009
Congratulations to Estate Planning Attorney Michael D. Bonfrisco!
Michael D. Bonfrisco, Esq. was named Top Attorney in the November Issue of SJ Magazine.
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