How Death Taxes Get Paid – Part 2
In this week’s blog post I continue discussing death taxes and how they get paid. Last week I explained how estate taxes and inheritance taxes are calculated. In each case the assets subject to the tax are not necessarily all within the control of the executor/administrator of the estate. That’s because non-probate assets
How Death Taxes Get Paid – Part 1
In this week’s blog post, I address death taxes - the taxes owed as a result of one’s passing - but more specifically how to pay them. It is not always as straightforward as one might think. First, let’s be clear what we are talking about. In New Jersey, we need to be
Medicaid Redeterminations Revisited – Part 3
In my blog post last week about Medicaid redeterminations, I wrote about the reasons why Medicaid conducts annual redeterminations. Recent changes in the written application, however, has caused some confusion. As I explained last week, the application has more than doubled in length. The new “redet” application now looks more like the application
Medicaid Redeterminations Revisited – Part 2
In my blog post last week, I wrote about changes in Medicaid’s redetermination process, especially in the last 6 to 7 years. More recently, in the last 6 to 7 months, Medicaid has changed the redetermination application itself. Before the change, the “redet” application was 7 pages. Now it is more than double that,
Medicaid Redeterminations Revisited – Part 1
There are many misconceptions about Medicaid and the application process. One of them is that after Medicaid is approved, ”we are home free”, so to speak, meaning no more worries about the eligibility requirements. Unfortunately, not true. As I often tell new clients and their families, we first must focus on meeting all
A Capital Gains Tax Mistake (Part 3)
In my blog post last week, I was explaining the large and unexpected capital gains tax a client faced. I explained that capital gains is paid on an asset that has appreciated when it is sold. In my client’s case, he had sold real estate that his mother had given him after
A Capital Gains Tax Mistake (Part 2)
In my blog post last week I told you about a call I received from a client facing an unexpectedly large income tax bill. The increased tax resulted from real estate that he inherited from his parents - or so he thought. An inheritance is what one receives from someone as a
A Capital Gains Tax Mistake – Part 1
A client called recently after receiving his income tax return from his accountant. Much to his surprise, he was facing a significant 6 figure income tax bill. So why was he calling us? We don’t prepare and file income tax returns. The reason had to do with the sale of real estate that he
Significant Change to New Jersey Guardianship Law
As part of the long term care planning guidance we provide to clients, we often file guardianship applications on behalf of families. A typical scenario is one in which an elderly parent needs assistance but did not execute a power of attorney or health care directive designating a family member to
Second Marriage Issues – Part 5
In last week’s blog post, I was in the midst of telling you about a dispute between Husband and his deceased Wife’s children regarding the sale of their home. Although 50% of the home was titled Husband and Wife joint with rights of survivorship (the other 50% owned by Wife’s children),