Spotswood Senior Center Wills, Estate Planning & Probate Seminar

Spotswood Senior Center Wills, Estate Planning & Probate Seminar

May 23 at 12:00 

Free community program 

Spotswood Senior Center

  

 WILLS & ESTATE ADMINISTRATION-PROTECT YOUR 

FAMILY AND MAKE PLANNING EASY 

 SPEAKER: Kenneth Vercammen, Esq. Edison, NJ (Author- Wills and Estate Administration by the ABA) 

The NJ Probate Law made a number of substantial changes in Probate and the administration of estates and trusts in New Jersey. 

Main Topics:

1. changes to NJ Estate Tax & changes to taxes on pensions 

2.  changes in Federal Estate and Gift Tax  

3. The New Probate Law and preparation of Wills

4. Power of Attorney  

5.  Living Will        

6.  Administering the Estate/ Probate/Surrogate

You do not have to be a resident to attend 

       COMPLIMENTARY MATERIAL: Brochures on Wills, "Answers to Questions about Probate" and Administration of an Estate, Power of Attorney, Living Wills, Real Estate Sales for Seniors, and Trusts. 

  For information contact 

Spotswood Senior Center

Materials:    2017 update Wills and Estate Planning Seminar materials

                By Kenneth Vercammen

1. NJ Estate Tax eliminated on Estates under $2,000,000 as of January 1, 2017

2. NJ Inheritance Tax stays if assets are going to persons other than spouse or children.

3. Federal Estate Tax exemption increased to $5.49 million in 2017 but gifts limited to $14,000 per person

4. Set up a testamentary trust in your Will for Protection for spouses and leaving assets to children: 

5. We recommend Self- Proving Wills since witnesses often move or pass away

6. The New Probate law NJ Senate Law No. 708 made a

7. NJ Supreme Court holds if an executor or trustee violates fiduciary duty they can be liable for attorneys fees

8. Power of Attorney- Do not use a form purchased online. 

9. Federal Health Privacy Law (HIPAA)- Have a new Living Will prepared

10. Competency required to sign a Will or Power of Attorney

    Materials also online at http://njprobate.blogspot.com/2017/01/2017-update-wills-and-estate-planning.html

1. NJ Estate Tax eliminated on Estates under $2,000,000 as of January 1, 2017

The new law phases out the estate tax over two years, by first replacing the current $675,000 threshold with a “true” exclusion amount established at $2.0 million for decedents dying on or after January 1, 2017, and then eliminating the estate tax for decedents dying on and after January 1, 2018. 

     P.L. 2016, c. 57 provides that the New Jersey Estate Tax exemption will increase from $675,000 to $2 million for the estates of resident decedents dying on or after January 1, 2017, but before January 1, 2018.  For these estates, the New Jersey Estate Tax no longer conforms to the provisions of the federal Internal Revenue Code of 1986 in effect on December 31, 2001 and instead follows the current federal Internal Revenue Code for determining the value of the estate, which will be subject to New Jersey Estate Tax.

New Jersey Estate Tax is not imposed on transfers of estates of resident decedents dying on or after January 1, 2018.

2. NJ Inheritance Tax must be paid if assets are going to persons other than spouse or children.

In addition to the Estate Tax, New Jersey imposes an Inheritance Tax on the estates of certain resident and nonresident decedents. P.L. 2016, c. 57 made no changes to the New Jersey Inheritance Tax.

Even if no inheritance tax due, a Tax Waiver on a house must still be obtained and filed if the house was not co-owned by the spouse.

INHERITANCE TAX BENEFICIARY CLASSES

Class A 

No Tax • •Parent 

• •Grandparent 

• •Spouse 

• •Child of a decedent (includes legally adopted child) 

• •Grandchild, great-grandchild, etc. of a decedent 

• •Stepchild of a decedent 

(does not include a step-grandchild or great-step grandchild) 

• •Mutually acknowledged child 

• •Civil union partner (after 2/19/2007) 

• •Domestic partner (after 7/10/2004) 

Class C •Brother or sister of a decedent 

•Spouse or surviving spouse of a child of a decedent 

•Civil union partner or surviving civil union partner (after 2/19/2007) of a child of a decedent 

Class D •Anyone not included in Classes A, C, or E 

Class E 

No Tax Including, but not limited to:

•Qualified charities

•Religious institutions

•Educational and medical institutions

•Non-profit benevolent or scientific institutions

•The State of New Jersey or any of its political subdivisions 

See exempt organizations Exempt Organizations:

"Class E transferee" means any of the following:

• The State of New Jersey or any political subdivision thereof;

Any educational institution, church, hospital, orphan asylum, public library or Bible and tract society or to, for the use of or in trust for any institution or organization organized and operated exclusively for religious, charitable, benevolent, scientific, literary or education purposes, including any institution instructing the blind in the use of dogs as guides, no part of the net earnings of which inures to the benefit of any private stockholder or other individual or corporation; provided, that the exemption does not extend to transfers of property to such education institutions and organizations of other states, the District of Columbia, territories and foreign countries which do not grant an equal and like exemption of transfers of property for the benefit of such institutions and organizations of this State.

2017 INHERITANCE TAX RATES

Class A- No tax is due

Class C

First $25,000.......................No tax is due

Next $1,075,000................ 11%

Next $300,000..................... 13%

Next $300,000..................... 14%

Over $1,700,000................... 16%

Class D [other people]

First $700,000......................... 15%*

Over $700,000......................... 16%

Class E- charities

No tax is due

3. Federal Estate Tax exemption increased to $5.49 million in 2017 but gifts limited to $14,000 per person

For 2017, the estate and gift tax exemption is $5.49 million per individual, up from $5.45 million in 2016.

    That means an individual can leave $5.49 million to heirs and pay no federal estate or gift tax. A married couple will be able to shield just shy of $11 million ($10.98 million) from federal estate and gift taxes. 

The annual gift exclusion remains at $14,000 for 2017.

      Gifts permitted without Federal Estate & Gift tax remained at $14,000 per person. Gift Exclusions

The annual exclusion for gifts is $11,000 (2004-2005), $12,000 (2006-2008), $13,000 (2009-2012) and $14,000 (2013-2017).

However, the amount permitted for Medicaid transfers is zero. 

4. Set up a testamentary trust in your Will for Protection for spouses and leaving assets to children: 

The Credit Shelter Trust (sometimes referred to as a “Bypass Trust” or an “A/B Trust”) was a popular estate planning technique used by married couples with combined assets to avoid the NJ Estate Tax. A Testamentary Trust (sometimes referred to as a Will trust or trust under will) is a trust, which arises upon the death of the testator [person who signed the Will]. A Credit Shelter Trust is a type of Testamentary Trust.

The purpose of the Credit Shelter Trust was to avoid the wasting of federal and state exemptions on the death of the first spouse. Instead of leaving all assets to the surviving spouse and thereby exposing the surviving spouse’s estate to more tax, Nursing Home & Medicaid issues, plus elective share by a future spouse, both spouse’s Wills are drafted to establish a Credit Shelter Trust to come into existence and be funded on the first spouse’s death. 

Since NJ is eliminating the NJ Tax, a Testamentary Trust within the Will is still a useful device to help ensure children and grandchildren with receive money down the road. Otherwise, the surviving spouse can spend all the money in Atlantic City. The surviving spouse could also get remarried and do a new Will leaving all assets to the new spouse. Many families want to protect at least some of the money from wasteful spending or a new spouse.

In a typical Testamentary Trust, the surviving spouse is entitled to receive all of the income from the Trust for his or her lifetime, and has the right to demand principal distributions for his or her health, education, support and maintenance in his or her accustomed manner of living. Distributions in excess of that standard require the cooperation of a Co-Trustee – often an adult child of the surviving spouse or a trust department of a bank.

If the Testamentary Trust technique is implemented as part of a Client’s Estate Plan, you can hire the attorneys for a separate fee  to assist the Client in re-titling his or her assets so that assets are available to fund the Credit Shelter Trust. Re-titling is necessary because most Clients tend to hold assets jointly with right of survivorship and assets must be titled individually in a person’s name in order to be eligible to fund a Testamentary Trust. We work with a tax attorney to help our clients. Protect your money if you pass away and your spouse gets re-married or has to go into a nursing home.

Some persons even hire an attorney to set up a personal residence trust or irrevocable trust and have the assets taken out of your name and put into a trust or given to children and grandchildren in the trust. Minimum fees for trust are $3,000. This is not something a non-attorney can do on their own. It is also illegal for a non-attorney to provide legal advice or prepare most legal documents. 

Beware of the “Elective share” rights of a new spouse. Have a Prenuptial Agreement if entering into a 2nd marriage

    Currently, the new spouse who is not given money in a Will can challenge the terms of the Will. This is called "electing against the Will by a spouse". A spouse could receive up to 1/3 of the estate, even if only married for 2 weeks. The spouse must file a Caveat or lawsuit in Superior Court.  We suggest a formal prenuptial agreement in 2nd marriage situations. If there is no Will, the new spouse receives 50% of the estate even if only married three days.

5. We recommend Self- Proving Wills since witnesses often move or pass away

An old New Jersey Probate law required one of the two witnesses to a Will to travel and appear in the Surrogate’s office and sign an affidavit to certify they were a witness. This often created problems when the witness was deceased, moved away, or simply could not be located.  Some witnesses would require a $500 fee to simply sign a surrogate paper. My Grandmother’s Will was not self- proving, and the witness to Will extorted a $500 fee.

The New Jersey Legislature later passed a law to create a type of Will called a “Self-Proving Will.”  In such a Will, the person for whom the Will is made must sign.  Then two witnesses sign.  Then the attorney or notary must sign; with certain statutory language to indicate the Will is self-proving.  Beware of online documents not prepared by an attorney

When done properly, the executor does not have to locate any witnesses. This usually saves time and money.  If your Will is not “self-proving” or if you are unsure, schedule an appointment with an estate planning attorney. Some law offices ignore the revised law, and fail to prepare self proving Wills. Do not use a law office that follows old methods and does not do a self-proving Will.

6. The New Probate law NJ Senate Law No. 708 made a number of substantial changes to the NJ probate laws.

  Non-formal writings could be Wills under the New Probate Law provisions governing the administration of estates and trusts in New Jersey.  So make sure you have a Formal Will drafted by an estate attorney.

You must have your original Will. A photocopy cannot be admitted to probate. Don’t leave the original in a Wells Fargo safe deposit box that cannot easily be accessed by Executor 2.

  The law expanded situations where writings that are intended as Wills would be allowed, but requires that the burden of proof on the proponent would be by clear and convincing evidence. Possibly a Christmas card with handwritten notes could be presented as a Will or Codicil. To present a non-formal Will or writing requires an expensive Complaint and Order to Show Cause to be filed in the Superior Court, and a hearing in front of a Superior Court Judge. Be careful; have a Will done properly by an experienced attorney.

7. NJ Supreme Court holds if an executor or trustee violates fiduciary duty they can be liable for attorneys fees

In the Matter of the Estate of Adrian J. Folcher (A-3-14) (074590) the NJ Supreme Court addressed improper acts by family members in the handling of money and assets. In case of In re Niles Trust, 176 N.J. 282 (2003) the Court declared that “when an executor or trustee commits the pernicious tort of undue influence, an exception to the American Rule is created that permits the estate to be made whole by an assessment of all reasonable counsel fees against the fiduciary that were incurred by the estate.” 176 N.J. at 298-99. The Court explained that “[a] fiduciary relationship exists between a trustee and the trust[,] similar to the attorney-client relationship,” and that “[both the attorney and a trustee act as officers of the court when acting on behalf of clients and beneficiaries.” Id. at 297. The Court concluded that non-attorney status should not prevent an award of attorneys’ fees in suits against trustees or executors for undue influence. Id. at 299.

Thus, Niles created an exception to the American Rule in trustee or executor undue influence cases “based on the fiduciary’s intentional misconduct regardless of his or her professional status.” Id. at 300.

Underscoring the foundational importance of the finding of undue influence that supported fee-shifting to a fiduciary and his facilitating cohort in Niles, the Supreme Court declined to extend that fee-shifting exception in the circumstances presented in Vayda. There, a non-attorney executor of an estate was found to have acted negligently and with bad faith in his administration of the estate, but he was not found to have committed undue influence. Vayda, supra, 184 N.J. at 124. Reaffirming New Jersey’s “strong public policy against” fee shifting, ibid. (quoting Niles, supra, 176 N.J. at 293), the Court unanimously resisted the plea to extend Niles. The Court pointed out instead that Rule 4:42-9(a)(3) provides a specific remedy in probate actions; attorneys’ fees could be paid from the estate. Ibid.

Five years later, our decision in Stockdale, supra, reaffirmed, albeit in dicta, the narrowness of our fee-shifting exception created in Niles. 196 N.J. at 307 (emphasizing that Niles was “directed solely to circumstances in which ‘an executor or trustee commits the pernicious tort of undue influence’” (quoting Niles, supra, 176 N.J. at 298)). The circumstances of Stockdale provide guidance in the present matter.

Stockdale was a wealthy, elderly, reclusive woman in declining health, who had planned to leave much of her estate to a local charity (the first aid squad), when her neighbor Sollitto insinuated himself into her life. Id. at 284-86. Through a series of orchestrated acts, Sollitto with help from an attorney friend, Casale, had Stockdale deed her home to Sollitto; amend her will; name Casale the executor of the estate; make Sollitto the residual beneficiary; and forgive the purchase-money mortgage she took when Sollitto purchased her home that covered almost the entirety of the purchase price. Id. at 290-94.

The trial court found that the Will was unenforceable as the product of undue influence. Id. at 297. The transfer of Stockdale’s home, including the deed and the contract of sale, was also found to be unenforceable. Ibid. The trial court reinstated the original will -- the will naming the local charity as the residual beneficiary. Ibid. Relying on Niles, the trial court granted the charity attorneys’ fees as a form of punitive damages, reasoning that undue influence is a form of intentional tort that can sustain a fee award. Ibid. According to the trial court, the fee award was a measure of punitive damages that was necessary to make the estate whole. Ibid.

The Appellate Division reversed the fee award and “remanded for consideration of an award of punitive damages.” Id. at 298. The fee award was not supported “under Niles because Stockdale’s estate was not financially depleted by Casale’s and Sollitto’s conduct.” Ibid.

Sollitto, and not the first aid squad, filed a petition for certification, arguing that Niles did not authorize a punitive award. Id. at 299. Thus the issue before this Court was not the reversal of the fee award but rather whether punitive damages could be a remedy for the undue influence tort in probate proceedings.

This Court found that punitive damages were available in the probate part in the rare case. Id. at 304. The Supreme Court noted that, in the usual undue influence case, “undue influence is not a separately pleaded tort, but is the analytical framework within which the decision about whether to admit a will to probate is made.” Ibid. The main issue normally is which will to admit to probate. Ibid. If none of the competing parties has gained control of the estate, the estate has suffered no loss, and “the only remedy sought is the admission of a particular will to probate.” Ibid.

However, the Supreme Court explained that a tort-based claim for compensatory damages can be asserted when the estate has suffered loss, if, for example, one of the parties has depleted the estate’s assets. Ibid. Even then, a compensatory award will be rare because equitable relief will usually suffice. Id. at 304-05. An executor is generally entitled to a commission based on the value of the estate; but if an executor engages in misconduct, his commission may be surcharged, and his monies offset by the loss he caused the estate. Id. at 305. Further, the Supreme Court explained that the surcharge “does not equate with a compensatory award.” Ibid. When those remedies prove inadequate, a compensatory award, and in turn a punitive award, can be justified. Id. at 309.

Those who hold the legal title of executor or trustee plainly owe a fiduciary duty to the beneficiaries of the estate or the trust respectively. But there is no dispute on this record that Bernice was not Folcher’s executor and that she did not owe a formal fiduciary duty to the Estate or to its beneficiaries. Bernice was in a confidential relationship with only her husband. The burden of establishing undue influence rests with the party contesting the will. However, “[when there is a confidential relationship coupled with suspicious circumstances, undue influence is presumed and the burden of proof shifts to the Will proponent to overcome the presumption.” Stockdale, supra, 196 N.J. at 303.

8. Power of Attorney- Do not use a form purchased online.

      A Power of Attorney should contain reference to the NJ statute requiring banks to honor the Power of Attorney. Section 2 of P.L. 1991, c. 95 (c. 46:2B-11). A NJ bank does not have honor a Power of Attorney without the NJ language.

9. Federal Health Privacy Law (HIPAA)- Have a new Living Will prepared

         A federal regulation known as the Health Insurance Portability and Accountability Act (HIPAA) was adopted regarding disclosure of individually identifiable health information. This necessitated the addition of a special release and consent authority to all healthcare providers before medical information will be released to agents and interested persons of the patients.     

       The effects of HIPAA are far reaching, and can render previously executed estate planning documents useless, without properly executed amendments, specifically addressing these issues.

        Any previously executed Powers of Attorney, Living Wills, Revocable Living Trusts, and certainly all Medical Directives now require HIPAA amendments.  After you sign the Living Will in your attorney’s office, provide a copy to your doctor and family.

         Powers of attorneys and Living Wills should be updated to reference this new law. More information on the HIPAA law at http://www.njlaws.com/hipaa.htm

      

10. Competency required to sign a Will or Power of Attorney

     Attorneys cannot prepare a Power of Attorney, Will or any other legal document unless a person is mentally competent. If someone is unable to come into our office, we require the client or client’s family to have the treating Doctor sign the “Doctor Certification of Patient Capacity to Sign Legal Documents” It is the client or client’s family’s responsibility to contact the doctor, obtain the signed Certification at the clients’ expense, and then provide the law office with the original signed Certification. A Law Office cannot accept phone calls stating someone is competent. Therefore, it is wise do have your documents drafted while you can drive and are healthy.

More information on Wills and Probate at

http://njwillsprobatelaw.com 

      To schedule an appointment for Wills and Estate Planning 

Contact KENNETH VERCAMMEN & ASSOCIATES, PC

ATTORNEY AT LAW 2053 Woodbridge Ave. Edison, NJ 08817(Phone) 732-572-0500  

If you or anyone you know needs an updated Will, Power of Attorney or Living Will, please have them fill out our confidential interview from and schedule a consult.

KENNETH VERCAMMEN & ASSOCIATES, PC

ATTORNEY AT LAW

2053 Woodbridge Ave

Edison, NJ  08817

(Phone) 732-572-0500 (Fax) 732-572-0030

"CONFIDENTIAL WILL QUESTIONNAIRE"

         Please fill out completely and fax or mail back. This form is extremely important. Your accuracy and completeness in responding will help me best represent you. All sections and information must be filled out prior to sitting down with the attorney.

         Please be sure to check all appropriate boxes. If "NONE", please state "NONE". 

If "NOT APPLICABLE", please state "N/A" or none.

PLEASE PRINT CLEARLY

1. Your Full Name: _______________________________

2.    IF MARRIED OR SEPARATED, complete (a) and (b) below:

(a) Spouse's Full Name:

________________________             

First                                Last

3.  Your Street Address: _________________________     

City ________________ State ____  Zip Code ______________

             

4.    Telephone Numbers:                

Cell: _______________________________    ___________________

                                                                                      

Day: ____________________/Night: ________________________

5.    E-mail address: _______________________________________

6. Referred By: ___________________________________________

         If referred by a person, is this a client or attorney?  If you heard about the law office on the Internet, what search terms did you use?

7. Today's Date ____________________

       We recommend a Durable Power of Attorney in the event of your physical

or mental disability to help you with financial affairs? 

                                                                           Yes ________  No ________

        We recommend a Living Will telling hospitals and doctors not to prolong your life by artificial means, i.e. Terri Schiavo; Karen Quinlan?      

                                                                          Yes ________  No ________

Confidential Will Q                   Rev 1/12/16

How can we help you? What are your questions/other important information?

_______________________________________________________

[It is required by Court Rules that all pages be filled out in person's own handwriting prior to seeing the attorney]

8.    Your Marital Status:        [  ] Single        [  ]  Married         [  ]  Separated                       [  ] Divorced        [  ]  Widowed   [  ] Domestic Partner

9.  Your Day/Month  of birth:  ___________________   

10.  Spouse Day/Month of birth:  _________________   

11.  If you are the parent or legal guardian of a minor child or minor children, please check here.  [   ]

2.  ESTATE EXECUTOR

         The person charged with administering/Probating your estate, paying taxes and/or other debts, preserving, managing, and distributing estate assets and property is called an Executor. This person should be one in whom you have trust and confidence. Your SPOUSE is usually named as primary Executor, followed by the child who lives closest to your home.

         Please provide the following information about the person you wish to name to serve in this capacity.

1. PRIMARY Choice of Executor/Personal Representative in Power of Attorney:

Name: _________________     ______________________________

            First              Last

Relationship: _______________ Address: _________________

2. SECOND Choice of Executor/Personal Representative in Power of Attorney:

         This individual will serve in the event that the primary executor/personal representative is not alive at the time of your death, or is unable to serve.

Name: _________________________     _____________________

            First                     Last

Relationship: _______________  Address: ________________

   The two proposed Executors must be filled out prior to meeting the attorney. We do not recommend Joint Executors, which often cause conflicts and additional work for the Estate. It is best to select one primary person, then a secondary person.

Asset Information- Must Be Completed - If none, write “none”

House/Real Estate Address  __________________________

Estimate Total Real Estate Value: ________ Approx mortgage _____

Bank Accounts, Stocks, CDs and Assets: __________________

Approximate Amount ____________________________

Direct Beneficiaries of Accounts - If none write "none" ________

Other Major Assets - If none, write "none" _______________

Approximate Life Insurance: ___________  Beneficiary _______

In the Will- Who do you want to get your assets:

Beneficiary (1) __________________ Relationship _______________

Beneficiary (2) _______________ Relationship _______________

Beneficiary (3) ___________ Relationship _______________

    It is required that assets and beneficiaries be filled out prior to seeing the attorney

Any Specific Bequests of Money and Property:

______________________________________________________

[  ] A. MARRIED PERSONS WITH CHILD(REN) OR GRANDCHILD(REN).

       Generally most married people provide that, upon their death, property will be distributed as follows:

         1. Your estate (all property and assets not owned jointly with another person) will be distributed to your surviving spouse.

         2. If your spouse predeceases you, then your estate will be divided in equal shares among all of your living children, If any child shall predecease you, then that child's share to their children (grandchildren).

Names of Children:  ________________________   

LIST THE NAMES AND AGES OF ALL CHILDREN EVEN IF THEY ARE OLDER THAN EIGHTEEN. IF NO CHILDREN, WRITE NONE. If no  minor children, skip page 5.

III. GUARDIAN(S) OF MINOR CHILD(REN) or Trustees of Trust

       [Skip this section if you have NO minor children and DO NOT want a trust. There are substantial additional fees for preparation of a Trust, minimum $2,500 for stand alone trusts]

       The surviving parent of a minor child is ordinarily entitled to be the GUARDIAN of that child. In the case of simultaneous death of you and your spouse, or if you are a single parent, you should appoint a Guardian for your minor child. It is advisable, prior to the completion of this Questionnaire, to make sure that your proposed Guardian(s) is (are) willing to serve as Guardian(s). In addition, the Guardian will also hold the monies for the minor children UNLESS you direct us otherwise. In your Will you can have any adult serve as Trustee of monies for minor children.

         Provide the following information about the person(s) you select to be Guardian(s)/Trustee(s). In the event my spouse predeceases me, I name as GUARDIAN(S)/ TRUSTEE(S):

1.  PRIMARY Choice of GUARDIAN / TRUSTEE:

Full Name: _______________________________________

Relationship: ______________________________________

2.   SECOND Choice of GUARDIAN / TRUSTEE:

Full Name: _______________________________________

Relationship: _____________________________________

[  ] B. MARRIED PERSONS WITH NO CHILD(REN) OR GRANDCHILD(REN).

       Generally most married people with no child(ren) or grandchild(ren) provide that upon their death their property will be distributed as follows:

1. Your estate (all property and assets not owned jointly with another person) will be distributed to your surviving spouse, but

2. If your spouse predeceases you, then your estate will be distributed to your living parent, or equally to your living parents. 

3. But should both of your parents predecease you, then your estate will distributed equally to your brothers and sisters or equally to the children of a predeceased brother or sister.

         Please check B above only if you wish your property distributed precisely and exactly as indicated in section B, 1 through 3, above.

   Additional information on Wills, Probate and Elder Law available at www.njlaws.com This form online at www.njlaws.com/will_questionnaire.htm

[ ] C. DIVORCED OR WIDOWED PERSONS WITH CHILD(REN) OR GRANDCHILD(REN). Generally, most divorced or widowed persons with child(ren) or grandchild(ren) provide that upon their death property will be distributed as follows:  1. Your estate (all property and assets not owned jointly with another person) will be distributed in equal shares to all of your living child(ren).

         2. But if one or more of your children predeceases you, that deceased child's share will be distributed to his or her child(ren), your grandchild(ren) in equal shares

          [  ] D. ALTERNATE PLAN OF DISTRIBUTION - You may list specific gifts to individuals and/or divide your estate among several individuals by listing percentages to each, making sure that the percentages total 100%. You may add additional sheets if necessary or use the back of this form.  There are additional Will preparation fees if there are gifts, called specific bequests.

       Are there any beneficiaries with special needs, or receiving SSI or SDD? Please answer in detail

          ____________________________________

    Are you or any of your Beneficiaries  are not United States citizens? _______

If not US citizen, extra taxes apply.

Do you have any religious wishes on burial? ___

       PLEASE WRITE DOWN ANY QUESTIONS YOU HAVE HERE or anything else important that we should be aware. Use back of this page for additional important information:

_____________________________________________________

ESTATE PLANNING

    Your estate may be subject to NJ Estate Taxation if the total of your assets exceeds $2,000,000.  If your assets exceed $2,000,000 and you desire estate planning to avoid or reduce your estate tax or require a Trust to protect a spouse, please advise Mr. Vercammen.  A Standard Will is not designed to address estate tax issues. We do not do Medicaid Nursing Home Planning.

                  WILLS:

T 1- Parents with minor children and trust for children                 ____________

T 2- Parents no spouse   ____________

T 3 Unmarried             ____________

T 4- Parents without trust   ____________

T 5- Spouse/ Children Trust if assets over $1 million?                  ____________

         PAYMENT WILL BE MADE BY:  (Please circle one)

Check, Credit Card (Visa, Mastercard, American Express) or Cash

Checks are payable to Vercammen PC

         Payment is required for Will, Power of Attorney and other document preparation at the first consult and prior to any documents being drafted. Minimum fee for Last Will and Testament preparation is $200 each. We charge a $150.00 consultation fee, which is credited to the preparation of the Will or other document. This $150.00 fee is non-refundable even if the documents are not prepared. If there are any changes to a draft Will, Power of Attorney, or other document, there will be a minimum charge of $75.00 per revision. The Will needs to be signed within 21 days of initial consult or an additional fee of $100.00 will be charged. Due to complexity and need to re-title assets, Fees for Trusts are minimum $2,500.

This form was filled out by:  _________________________

                                    sign name

 Copyright 2017 Vercammen Law

WILLS AND ESTATE PLANNING

"SAVE MONEY AND PROVIDE FOR YOUR LOVED ONES "

By Kenneth A. Vercammen, Esq.  

As average Americans, we work 80,000 hours in a lifetime, or 45 to 55 years.  In spite of all the resources and assets we earn, the vast majority of us do not take the time to create a Will.

National statistics indicate that 80% of Americans die without leaving a Will.  There are several reasons for this: fear of death; procrastination; and misinformation (people presume that only the rich need to have Wills).  Whatever the excuse, it is clear that people would benefit from having a Will.

In the absence of a Will or other legal arrangement to distribute property at death, problems arise.  The result can be lengthy delays before the rightful heirs receive their property.  And because the state has no instructions from the deceased, no charitable gifts will be made.

IF YOU HAVE NO WILL:

 

If you leave no Will or your Will is declared invalid because it was improperly prepared or is not admissible to probate:

* State law determines who gets assets, not you

* Additional expenses will be incurred and extra work will be required to qualify an administrator

* Judge determines who gets custody of your children

* Possible additional State inheritance taxes and Federal estate taxes

*  If you have no spouse or close relatives the State may take your property

 * The procedure to distribute assets becomes more complicated-and   the law makes no exceptions for persons in unusual need or for your own wishes.

*  It may also cause fights and lawsuits within your family

When loved ones are grieving and dealing with death, they shouldn’t be overwhelmed with Financial concerns.  Careful estate planning helps take care of that.

SAVE MONEY BY HAVING YOUR ATTORNEY PREPARE A NEW WILL

 Your estate will be subject to probate whether or not you have a Will and in most cases, a Will reduces the cost by eliminating the requirements of a bond.  With a well-drawn  Will, you may also reduce death taxes and other expenses.  Don’t pinch pennies now to the detriment of  your beneficiaries. We have attempted to briefly explain in this article some of the issues, techniques, and decisions involved in Wills, Estate Planning, and Administration of an Estate.  Because the matters covered are complicated and the Federal and New Jersey laws frequently change,  this article can only outline some of the many legal issues you should  consider. 

The proper preparation of a Will should involve a careful analysis of  the client’s assets, family and his/her desires.  

         Estate Planning is the process of examining what will happen to your property when you die and arranging for its distribution in such a manner as will accomplish your objectives. 

         The cost of a Will depends on the size and the complexity of the estate and the plans of the person who makes the Will.  

         A properly drawn Basic Will without Trust costs approximately $300.00 to $600.00. It is one of the most important documents you will ever sign, and may be one of the best bargains you will ever have.

         Be sure your Will takes into account the Federal Tax changes and New Jersey Inheritance Tax changes.  Also, ascertain if your Will is “self-proving”, which would dispense with having to find the Will’s witnesses after death and pay for them to appear before the Surrogate.

WHAT IS A WILL?

         

         “A Will is a Legal  written document which, after your death, directs how your individually owned property will be distributed, who will be in charge of your property until it is distributed and  who will take care of your  minor children if the other parent should die ".  You should remember that the term “property” under the law includes "real estate as well as other possessions and rights to receive money or items of value.”  Everyone who has at least $3,000 in assets should have a Will.   You do not have to be wealthy, married, or near death to do some serious thinking about your Will.

THE FOLLOWING IS A SAMPLE OF A VARIETY OF CLAUSES AND ITEMS WHICH  YOUR ATTORNEY MAY INCLUDE IN A WILL:

1ST:  DEBTS AND TAXES

2ND: SPECIFIC BEQUESTS

3RD:  DISPOSITION TO SPOUSE

4TH: DISPOSITION OF REMAINDER OF ESTATE

5TH: CREATION OF TRUSTS FOR SPOUSE

6TH: CREATION OF TRUST FOR CHILDREN

7TH: OTHER BENEFICIARIES UNDER 21

8TH: EXECUTORS

9TH: TRUSTEES

10TH: GUARDIANS

11TH: SURETY OR BOND

12TH: POWERS 

13TH: AFTERBORN CHILDREN

14TH: PRINCIPAL AND INCOME

15TH: NO ASSIGNMENT OF BEQUESTS

16TH: GENDER

17TH: CONSTRUCTION OF WILL

18TH:  NO CONTEST CLAUSE and NO BEQUEST

A Will must not only be prepared within the legal requirements of the New Jersey Statutes but should also be prepared so it leaves no questions regarding your intentions.

WHY PERIODIC  REVIEW IS ESSENTIAL

Even if you have an existing Will, there are many events that occur which may necessitate changes in your Will.  Some of these are:

     

* Marriage, death, birth, divorce or separation affecting either you or  anyone named in your Will

*Significant changes in the value of  your total assets or in any particular assets, which you own

     

* A change in your domicile

     

* Death or incapacity of a beneficiary, or death, incapacity or change in residence of a named executor, trustee or guardian of infants, or of one of the witnesses to the execution of the Will

*Annual changes in tax law

  

MAY I CHANGE MY WILL?

Yes.  A Will may be modified, added to, or entirely changed at any time before your death provided you are mentally and physically competent and desire to change your Will.  You should consider revising your Will whenever there are changes in the size of your estate. For example, when your children are young, you may think it best to have a trust for them so they do not come into absolute ownership of  property until they are mature.  Beware, if you draw lines through items, erase or write over, or add notations to the original Will, it can be destroyed as a legal document.  Either a new Will should be legally prepared or a codicil signed to legally change  portions of the Will. 

You can also disinherit a child or grandchild. Your attorney should add a specific clause to the Will.

ADMINISTRATION OF  AN  ESTATE

If you are named the executor, you must visit the County Surrogate to probate the Will.  You will need the following items:

1. The Death  Certificate

2. The Original Will

3. Names and Addresses of decedent's, next of kin and list of beneficiaries

4. Minimum of $130.00 for Surrogate fees

A NJ state inheritance tax return must be filed if real estate is left and the tax may be required on the transfer of real or personal property within eight months after death.

OTHER ITEMS OF CONCERN TO BE PREPARED BY YOUR ATTORNEY

-Trusts (and Medicare Trusts)

-Power of Attorney- to allow a trusted person to  administer your assets during your lifetime, either  upon disability or now

-Living Wills- to state your wishes concerning  medical care in the event of your serious illness

Kenneth A. Vercammen is a Middlesex County trial attorney who has published 125 articles in national and New Jersey publications on litigation topics.  He has been selected to lecture to trial lawyers by the American Bar Association, New Jersey State Bar Association and Middlesex County Bar Association.  

       Call our office to schedule a confidential appointment 732-572-0500

KENNETH VERCAMMEN & ASSOCIATES, PC

ATTORNEY AT LAW

2053 Woodbridge Ave.

Edison, NJ 08817

(Phone) 732-572-0500

                                  (Fax) 732-572-0030                      

    Free Will Seminars and Speakers Bureau for Groups 

10 years ago the AARP Network Attorneys of the Edison/Metuchen/Woodbridge area several years ago established a community Speakers Bureau to provide educational programs to AARP and senior clubs, Unions and Middlesex County companies. Now, Ken Vercammen, Esq. and volunteer attorneys of the Middlesex County Estate Planning Council have provided Legal Rights Seminars to hundreds of seniors, business owners and their employees, unions, clubs and non-profit groups. For additional information on the Legal Seminars, contact our Coordinator, Kenneth Vercammen's law office at (732) 572-0500, email VercammenLaw@njlaws.com  

Details on free programs available

These quality daytime educational programs will educate and even entertain. Clubs and companies are invited to schedule a free seminar. The following Seminars are now available: 

1. WILLS & ESTATE ADMINISTRATION-PROTECT YOUR FAMILY AND 

MAKE PLANNING EASY 

2. POWER OF ATTORNEY to permit family to pay your bills if you are temporarily disabled and permit doctors to talk with family 

       All instructors are licensed attorneys who have been in practice at least 25 years. All instructors are members of the American Bar Association, New Jersey 

State Bar Association, and Middlesex County Bar Association. All programs include free written materials. 

       You don't have to be wealthy or near death to do some thinking about a Will. Here is your opportunity to listen to an experienced attorney who will discuss how to distribute your property as you wish and avoid many rigid provisions of state law. 

      Topics discussed include: Who needs a Will?; What if you die without a Will (intestacy)?; Mechanics of a Will; "Living Will"; Powers of Attorney; Selecting an executor, trustee, and guardian; Proper Will execution; Inheritance Taxes, Estate Taxes  14,000 annual gift tax exclusion,  Bequests to charity, Why you need a "Self-Proving" Will and  Estate Administration/ Probate.

       Sample materials: Hand-outs on Wills, Living Wills/Medical Advance Directive, Power of Attorney, Probate and Administration of an Estate, Real Estate, Working with your Attorney, Consumers Guide to New Jersey Laws, and Senior Citizen Rights. 

SPEAKERS BUREAU 

At the request of senior citizen groups, unions, and Middlesex County companies and organizations, the " Speakers Bureau " is a service designed to educate citizens about how laws affect their lives and how the judicial system operates. We have attorneys available to speak to businesspersons, educational, civic and social organizations on a wide range of topics during business hours. 

In today's complex world, few people can function successfully and safely without competent legal advice. In order to insure your estate plans are legally set up, you need to know exactly where you stand so that you can avoid possibly catastrophic mistakes impacting both you and your family. 

About the speaker: Kenneth A. Vercammen is a trial attorney in Edison, NJ. We is the author of the American Bar Association’s book “Wills and Estate Administration”

He is co-chair of the ABA Probate & Estate Planning Law Committee of the American Bar Association Solo Small Firm Division.  He is a speaker for the NJ State Bar Association at the annual Nuts & Bolts of Elder Law & Estate Administration program. 

He was Editor of the ABA Estate Planning Probate Committee Newsletter. Mr. Vercammen has published over 150 legal articles in national and New Jersey publications on litigation, elder law, probate and trial topics. He is a highly regarded lecturer on litigation and probate law for the American Bar Association, NJ ICLE, New Jersey State Bar Association and Middlesex County Bar Association. His articles have been published in noted publications included New Jersey Law Journal, ABA Law Practice Management Magazine, and New Jersey Lawyer. He established the NJlaws website www.njlaws.com which includes many articles on Estate Planning, Probate and Wills. He is a member of the AARP and often lectures to groups on the importance of an up to date Will, Power of Attorney and Living Will.

 KENNETH  VERCAMMEN & ASSOCIATES, PC

ATTORNEY AT LAW

2053 Woodbridge Ave.

Edison, NJ 08817

(Phone) 732-572-0500

 (Fax)    732-572-0030

www.njlaws.com