Why Does Estate Administration Take So Long? Part 3
In this week’s post explaining why estate administration takes so long, I cover the scenario when there is no will. New Jersey law establishes who has the first right to serve as administrator and who inherits the estate. Often, however, identifying the correct individuals is not easy. An administrator is tasked with the job of gathering together the assets, paying the debts and taxes if any and distributing the balance to the correct heirs. The law establishes that a spouse has the first right to serve as administrator if he or she wishes. After that, the next in line are the remaining heirs or some of them if any will accept. That’s where it has the potential to get complicated. For example, if the heirs are three children, each has equal right to serve. Each child must either apply to serve or decline to serve by signing a renunciation. Locating and arranging for the necessary paperwork to be signed can take time depending on how cooperative each person is. If any of the heirs refuse to cooperate by indicating one way or the other what they want to do, then an application must be made by way of order to show cause before a judge, on notice to all interested
Why Does Estate Administration Take So Long? (Part 2)
In my post last week I addressed a common question concerning the process of administering the estate of someone who has died. Why does it take so long? On average it can take 9 to 12 months for most estates to be completed although I did explain last week that easier estates can take less time. Such cases are where there is a will, few assets to administer and one heir (who is also the executor or administrator). Having an original validly executed will does expedite the process. That’s because the New Jersey probate process is very easy if you have the original will and it complies with the State’s document execution requirements. No judicial court order is necessary. Submitting an application with the original will and certified copy of the death certificate allows the county Surrogate to issue the appointment, usually within a week or so. If, however, you don’t have the original will or it lacks any of the execution requirements per state law, the will can still be accepted as the “official” last will, but that determination must be made by a judge by way of an order to show cause. Copies of this court filing must be provided to all heirs and next of kin. The court
Why Does Estate Administration Take So Long? (Part 1)
When I explain the estate administration process, I am usually asked, “how long will it take?” The person will often preface that question by first stating that “it’s a simple estate” or “all the heirs are in agreement”. I tell people that, on average, an estate can require 9 months to a year to finalize. It does, however, vary depending on how much of a decedent’s (the person who died) assets are passed by way of a will (or intestacy laws when there is no will) vs. other methods such as by payable on death designation or operation of law (ie. joint with right of survivorship), whether there is a validly executed will, whether there are multiple heirs and whether there are any estate, inheritance and/or income taxes due. Conversely, the estate administration process is quite simple and relatively quick in many cases. The commonalities to an “easy” estate tend to be few probate assets, no tax issues and a sole heir who is also the executor or administrator. Estate administration in these instances can be accomplished in a matter of weeks or a couple of months. So, why is it that some estates take longer to administer? There are a variety of reason but we can start
The Types of Long Term Care Facilities and Why It Matters – Part 3
In this third post of three, I continue to discuss why understanding the type of facility you are considering is so important. Last week I talked about long term care insurance policies that may apply differently to nursing home care vs. assisted living care or home care. The type of facility also matters when we have to consider Medicaid. So often we get calls from families after they have made a move to an assisted living facility (ALF). They are spending down assets and want help with applying for Medicaid. When I ask what agreement they have with the facility, they might tell me that they have met a 2 or 3 year private pay requirement. That, however, may only apply to the ALF. If there is a nursing home and an assisted living facility on the same grounds, you cannot assume that the private pay requirement you met in the ALF, will also be credited towards the nursing home. In some cases it may but in other cases it may not. You must clarify that with the particular facility, ideally before your loved one is admitted. Additionally, a resident in the ALF may need to move to the dementia unit where higher levels of care and a
The Types of Long Term Care Facilities and Why It Matters – Part 2
In my blog post last week I addressed the differences between types of facilities and the confusion I see when someone tells me the type of facility they are looking at for a loved one - or they think they are looking at. This matters, for example, when someone has a long term care insurance (LTCI) policy. I am often told that Mom or Dad has an LTCI policy, followed by the question “that will cover the cost of care, right?” There isn’t a one size fits all answer to this question. Maybe yes, maybe no. It depends on what the policy says. In other words, what type of coverage did they buy? LTCI may cover care at home, in an assisted living facility (ALF) or in a nursing home (NH). It may cover one, two or all three of these. The more it covers the higher the premium. More coverage may have originally been purchased and then reduced when a policyholder was faced with an increase in premium. The amount of coverage - as defined in terms of a maximum daily rate and a length of years at that maximum rate - may be different for each type of care. For example, the home care maximum daily rate may be 50%
The Types of Long Term Care Facilities and Why it Matters – Part 1
Searching for care options for a loved one can be very confusing. When you add to the mix the possibility that there may not be enough money to cover the cost of that care - in other words when government benefits such as Medicaid may be needed - it adds another element of complexity to that search. As I have previously written, many people don’t recognize the difference between nursing homes and assisted living facilities and even sometimes independent facilities. That is because there are many facilities that take in residents who need more than one type of care. Sometimes there are two separate buildings on the same grounds. Other times there may be one building with separate wings for the different types of care offered. For example, in one location there might be a nursing home but also an assisted living facility. It could also be that assisted living type care is offered as well as independent living. Adding to the confusion may be that many people assume that a “memory care” unit, where residents who need higher levels of care reside, is a nursing home, probably because residents who reside there need nursing home level care. These units, however, are located within an assisted living facility so