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Archive for category Estate Planning

How does a Trust work?

Jul 21

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The following article was written by E. Gregory M. Cannarozzi, Counselor-at-Law, L.L.C. and can be found on New-Jersey-Lawyers.com

Trusts are the process by which the grantor transfers legal ownership to a person or institution (called the trustee) to manage the property for the benefit of another person (called the beneficiary).

Trusts create a fiduciary relationship between the trustee and the beneficiary. The trustee must act solely in the best interests of the beneficiary when dealing with the trust property. If a trustee does not live up to this duty, the trustee is legally accountable to the beneficiary for any damage to his or her interests. The grantor may act as the trustee himself or herself, and retain ownership instead of transferring the property. A grantor may also name himself as one of the beneficiaries of the Trust.

To find more articles about New Jersey  Wills and Probate Law can be found at New-Jersey-Lawyers.com.  New Jersey lawyers who can help with wills and estates in new jersey can be found at New-Jersey-Lawyers.com , NJLawFirms.net and Njlawyers-NewJerseyLawyers.com

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Are there different types of Wills?

Jul 14

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The following article was written by E. Gregory M. Cannarozzi, Counselor-at-Law, L.L.C. and can be found on New-Jersey-Lawyers.com

There are many types of Wills:

  • Holographic Wills are entirely handwritten, dated, and signed by the testator.
  • A Living Will, Medical Directive or Health Care Directive is one that authorizes the continuance or cessation of life-sustaining medical treatments from an individual who is incapable of making that decision due to debilitating circumstances.

Who should make a Will?

Every adult person should consider making a Will. Each year a large number of people die without Wills, leaving major decisions in the hands of the states of New Jersey or New York.  Wills are especially important for parents of children who are under eighteen, as arrangements for the children’s financial support and/or appointed guardian can be determined. Without a Will, any property distributed to minor children could be subject to an expensive court-appointed guardianship, which could greatly affect inheritance. And in some states, if you were married and childless, your parents could split your property with your spouse if not alternatively predetermined in a Will.

To find more articles about New Jersey  Wills and Probate Law can be found at New-Jersey-Lawyers.com.  New Jersey lawyers who can help with wills and estates in new jersey can be found at New-Jersey-Lawyers.com , NJLawFirms.net and Njlawyers-NewJerseyLawyers.com

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How A Power of Attorney Functions in Estate Planning

Jan 7

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The following article was written by Franklyn Aronson, Esq. Of Kamensky♦Cohen & Associates and can  be found on New-Jersey-Lawyers.com

A Power of Attorney (POA) is a legal document giving another person or institution the right to do certain legal acts or tasks for another person (the Principal).  This document may be one of the most important in an Estate Planning.  It will save significant time and money if circumstances necessitate its use.  A person giving another Power of Attorney can make it very broad (General POA) or can limit it to certain acts ( Limited POA).

The person giving another a Power of Attorney does not surrender his or her rights.  It simply authorizes another to act on his or her behalf, much like giving another person an extra set of keys to your house; you, of course, still maintain the access to your house yourself and you can take back the key or change the locks if you choose.

A “General” Power of Attorney gives your agent very broad powers to do almost every legal act that you can do.  The document will list numerous authorizations and then contain a general catch-all authorization for the person with the Power of Attorney to perform acts for you.  It will include financial, health and property management powers.  A “Limited” Power of Attorney gives the agent only certain powers or rights to engage in a particular transaction on your behalf, such as signing financial documents on your behalf if, say, you cannot be present at a house closing.

A “Durable” Power of Attorney comes into play if what you want to accomplish is having . …..click here to finish this article

For more information about  NJ Estate Planning  Law or to find a New Jersey Estate Planning Lawyer.  Additional lists of NJ Law firms can be found here.

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Trusts – Questions and Answers Introduction

Feb 3

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The following article about Estate Planning
Is featured on New-Jersey-Lawyers.com


Written by Michael B Mangini, J.D.

Question 1: What is a trust?

Answer: A trust is a legal relationship among persons that requires: (1) a person who creates and funds the trust (trustor), (2) a person who benefits from the income and principal in the trust (beneficiary), and (3) a person who manages the property in the trust and distributes income and principal according to the terms of the trust (trustee). Think of it as a contract. The governing instrument is the writing that contains the relevant provisions.

Question 2: What is the purpose of a trust?

Answer: There are many purposes for trusts. Each trust is different. Primarily, the purpose of the trust depends on what the trustor wants to accomplish. The goals of the trustor dictate the way a trust is drafted, i.e. the drafter will write provisions designed to accomplish the trustor’s goals within the limits of the applicable law. After the trustor signs and funds the trust, the rights of the trustor and beneficiary and the duties of the trustee are determined with reference to the written provisions of the trust. Trusts may be used to protect assets, limit the use of assets, manage transfer taxes, avoid probate, benefit charities, provide for pets, and to address many other situations…….


To read the balance of this article or find a New Jersey Estate Planning and Administration Lawyer or visit twww.New-Jersey-Lawyers.com.

For additional listings of NJ lawyers, we suggest you also visit Njlawyers-newjerseylawyers.com

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Trusts – Questions and Answers Introduction

Jan 8

Posted by admin in Estate Planning | No Comments


The following article about Estate Planning
 Is  featured on New-Jersey-Lawyers.com

 


Written by Michael B Mangini, J.D.

 

Question 1: What is a trust?

Answer: A trust is a legal relationship among persons that requires: (1) a person who creates and funds the trust (trustor), (2) a person who benefits from the income and principal in the trust (beneficiary), and (3) a person who manages the property in the trust and distributes income and principal according to the terms of the trust (trustee). Think of it as a contract. The governing instrument is the writing that contains the relevant provisions.

Question 2: What is the purpose of a trust?

Answer: There are many purposes for trusts. Each trust is different. Primarily, the purpose of the trust depends on what the trustor wants to accomplish. The goals of the trustor dictate the way a trust is drafted, i.e. the drafter will write provisions designed to accomplish the trustor’s goals within the limits of the applicable law. After the trustor signs and funds the trust, the rights of the trustor and beneficiary and the duties of the trustee are determined with reference to the written provisions of the trust. Trusts may be used to protect assets, limit the use of assets, manage transfer taxes, avoid probate, benefit charities, provide for pets, and to address many other situations…….


To read the balance of this article or find a


New Jersey Estate Planning and Administration Lawyer or to find a nj lawyer for other new jersey legal needs visit  www.New-Jersey-Lawyers.com 

 

Use A Durable Power of Attorney (DPOA) To Avoid Problems

Mar 3

Posted by admin in Estate Planning | No Comments


We are publishing a new article from one of the many that can be found at New-Jersey-Lawyers.com.

Use A Durable Power of Attorney To Avoid Problems
By Michael B. Mangini, J.D., C.A.P.
www.newjerseyestatelaw.com

Published by www.new-jersey-lawyers.com

Although it does happen, it is a rare event when I suggest that a client not sign a Durable Power of Attorney (DPOA), a document that creates a legal, enforceable relationship between the person who signs it (known as the “principal”) and the person who acts for the principal (known as the “agent,” “attorney-in-fact,” or “personal representative”). It is important to note that a DPOA is freely revocable at any time before you become incapacitated. After that, a judge who finds cause may revoke the authority granted in the DPOA.

When you, as principal, sign a Durable Power of Attorney you authorize your agent to manage your finances and property in your best interests. The agent owes a fiduciary duty to you and your heirs to act prudently under all the circumstances for you. An agent who engages in self-dealing and who raises his own interests above your interests or the interests of your other family members may be subject to civil and criminal penalties.

A well-drafted DPOA tends to avoid the need for a person to ask a court to declare you incompetent and for an order of Guardianship. Such a proceeding wastes time and money that can be better used for your benefit.

There are a variety of cases in which a DPOA may be necessary. Consider these examples. (1) If you and your spouse own any real property together you probably own it as tenants by the entirety. If so, neither of you may sell, mortgage or otherwise affect legal title without the consent of the other. If one of you becomes incapacitated and the other needs to sell the property or refinance, the healthy spouse will have to seek an order of guardianship from the court before conducting the transaction. (2) Some individuals create a joint bank account in place of signing a DPOA; this can cause more problems than it avoids.

In many situations lifetime gifts represent a valuable asset-protection and estate-planning technique. The existence of a valid, well-drafted DPOA that includes an appropriate authority to make gifts may facilitate the implementation of the plan. The law in New Jersey is clear: an agent under a DPOA that does not specifically grant the authority to make gifts legally may not make gifts.

The most important qualifications for an agent are trustworthiness and an understanding of the agent’s fiduciary duty. Too often the agent misuses his “power” to the detriment of the principal and the principal’s family. The agent’s inability or refusal to act responsibly may result in acrimony among the family members along with prolonged, emotional and expensive court proceedings. Competent professional advice can go a long way to avoiding very serious problems.

Contact Michael Mangini for more assistance in your legal situation. Visit www.newjerseyestatelaw.com for more information.