MEDICAID PLANNING. Medicaid planning is a process through which an individual attempts to preserve all or a portion of her assets for her and her family’s benefit by transferring assets to other (typically family) individuals. Although Congress attempted to restrict the ability of an individual to engage in Medicaid planning with the passage of the Deficit Reduction Act of 2005 on February 8, 2006, many Medicaid planning techniques remain viable.
PLANNING FOR CHILDREN WITH DISABILITIES. For children with disabilities, the preservation of government entitlement benefits, such as Supplemental Security Income and Medicaid, is paramount, since these programs provide necessary services. Through proper estate planning, family members can pass assets to disabled children in a manner that does not displace the child from government entitlement benefits.
LIVING WILL/HEALTH CARE POWER OF ATTORNEY. Advanced health care directives are documents that permit another individual to make medical decisions for you and to gain access to your medical information, so he can make informed decisions for you.
WILLS/TRUSTS. A last will and testament is the fundamental estate planning document, governing the disposition of a person’s assets post-death. But a Will can do so much more, such as, contain trusts for a minor or disabled child, appoint a guardian for a minor or disabled child, and reduce or eliminate estate taxes.
LIVING TRUSTS. A revocable living trust is sometimes referred to as a “Will-substitute,” because a living trust is a substitute for a last will and testament. In New Jersey, a state in which probate is a simple and inexpensive process, the benefit of a living trust is minimal; however, for New Jersey residents who own real estate in states other than New Jersey, a living trust can be a useful part of their estate plans. Living Trusts can be used as a probate-avoidance tool, particularly for individuals with real property in more than one state.
ESTATE PLANNING. The process through which an individual provides for the orderly disposition of his assets to his family and for the minimization or elimination of death taxes.
GUARDIANSHIP. A guardianship is a court procedure through which one individual, known as the “guardian,” is appointed to make decisions for another individual, called the “ward.” For those individuals who still retain their mental facilities, a guardianship procedure can be avoided by having powers of attorney and advanced health care directives in place.
POWERS OF ATTORNEY. A document through which an individual, called the “principal,” grants authority to another individual, called the “agent,” to make financial decisions for her.