Help! I’m An Executor and I Don’t Know What to Do!

Maybe you were always the one everyone expected to have a plan growing up. Maybe you were more a follower than a leader. Maybe the one you always knew you could count on to have a plan is gone. No matter what, death can hit us like a ton of bricks, whether we thought we were prepared or not. And if you’re here reading this article, you’ve likely just been hit with a ton more. Maybe you and your siblings drew straws and you came up short and now you’re the executor of the estate, and trying not to lose your mind because you don’t know what that means.

If that’s you, fear not! As a New Jersey Estate Planning Attorney, I’m here to help explain things a little better.

First Steps of The Executor

First things first, if you were named as an executor in your loved one’s will, you’ll need to go to the surrogate court and ask to be formally appointed as an executor. You can do this as soon as ten days after death, and will need to bring the will and a certified copy of the death certificate. If the will isn’t self-proving, you’re going to need two witnesses who saw the deceased person sign the will (and who signed it themselves) to appear or submit a sworn statement as well.

What If There Is No Will?

If there isn’t a will, or if the person named as executor in the will doesn’t want to step up, it’s okay! No need to panic. If that happens, the court will then appoint an administrator for you. This person takes on all of the same responsibilities as an executor, and New Jersey law allows for the surviving spouse, if any, the priority of the appointment.

What If I Don’t Live in New Jersey?

If your administrator or executor is not a resident of New Jersey, they must post a bond, unless they will state otherwise. And if you’re confused about bonds, all a bond does is protects the estate (as a kind of insurance policy) if the executor or administrator tries to steal or mismanage any estate funds.

Letters Of Testamentary

If there’s concern that the will is not valid, or someone is contesting it, the surrogate court will issue a document called “Letters of Testamentary.” This document allows an executor or administrator the ability to do the following:

  • Collect, inventory, and keep safe the deceased person’s assets.
  • Have assets professionally appraised, if necessary
  • Pay any valid debts and taxes and
  • Distribute the remaining property as the will or state law (if there is no will) directs.

Notifying Heirs and Beneficiaries

As an executor, you also must mail notice to all heirs and beneficiaries of the proceeding, and you have 60 days to do it. You are also entitled to compensation (or commission) for settling all the affairs of the estate. The commission is normally 6% of the income of the estate, plus 5% of the gross value of the estate up to $200,000. If it’s over that, you get 3.5% up to $1 million and 2% on amounts over $1 million.

So as you can see, it’s a lot to take in and a lot to do, but there is a bit of light at the end of the very dark tunnel. And in a time where everything seems dark, sometimes even the faintest bit of light is enough to brighten up the entire world.

How to Avoid Probate: Part 2

Welcome back! If you’re here, you probably already read the first part of our handy How to Avoid Probate series. In part 1, we discussed how to avoid probate using revocable living trusts and Pay-On-Death accounts and registrations.

In this, the second part of our guide, our New Jersey Estate Planning Attorney will take a quick look at two more ways to avoid the probate process. You are able to do that by jointly owning property or by giving gifts. We’ll go into more detail below, so keep reading and be enlightened!

Joint Ownership of Property

The truth is that using this method provides a quick and easy way to avoid probate altogether whenever the first owner passes away. Actually, there are several ways this can be accomplished. To take the title with someone else and avoid probate, all you have to do is a state, on the paper that shows your ownership (like a real estate deed, for instance), how you want to hold the title.

Generally, no other documents are needed, and when one of the owners dies, the property transfers to the joint owner, without ever getting probate involved. Neat, huh? There are a few ways to do this, so let’s quickly look at them below:

  1. Joint tenancy with the right of survivorship
    Any property owned in joint tenancy will pass automatically to the surviving owner when one owner dies.
  2. Tenancy by the entirety
    In a few states, married couples can often take a title not in joint tenancy, but in what is called “tenancy by the entirety.” It’s like joint tenancy, but in fact, only married couples may use it. In some states, even same-sex partners can do it, as long as they have registered with the state. Both ways work to avoid probate in exactly the same way.
  3. Community Property with right of survivorship
    You can find another route to take if you live or own property in the following states: Alaska, Arizona, California, Idaho, Nevada, Texas, or Wisconsin. If you are married and co-own property with your spouse, you can use community property with the right of survivorship. This way, if one spouse passes, the other spouse automatically owns any assets upon death. If you’re in California and in a same-sex partnership, you can also do this as long as you’ve registered a domestic partnership with the state.

Avoid Probate through Gifting

Another way you can avoid probate is very easy and simple. You give all your stuff away! It’s true! Getting rid of all your possessions (or most of them) before you die is a way to avoid the process.

How? It’s simple: If you don’t own it when you die, it does have to go through the process! Doing this can lower probate costs because generally if there are assets with a higher monetary value going through probate, that makes the expenses higher as well. Plus, with most gifts, you don’t have to deal with federal gift taxes either, and not dealing with taxes is always a plus!

Stay Tuned for Part 3

That concludes part 2 of How to avoid Probate. In our next blog, we will take a look at how to avoid probate if you are a smaller estate. The New Jersey estate planning attorneys at Scott Counsel are here to answer your questions and provide the representation you need. Contact us today or give us a call to discuss your case. See you next time.

If There’s No Will, Is There Still a Way?

We discussed what a will is and why it’s important to have one in another article (which you can find here). That’s all well and good, but what if you don’t have one? So, what now? Now, before you start panicking, let me put your mind at ease. If you don’t have a will, two things can happen, and we’ll look into those two things more closely now. The first of these is known as an Affidavit.

Affidavit

While the term may appear to be confusing, an affidavit is simply a written statement of facts. There are, however, various types. For example, if a person dies but is survived by a spouse and the property they owned is less than $20,000, an Affidavit of Surviving Spouse can be issued to dispose of the property without involving Administration.

If there are heirs but no spouse, an Affidavit of Heirs can be issued to the person who is the deceased’s closest kin. However, keep in mind that property owned by the deceased alone cannot exceed $10,000, and that consent from certain individuals may be required.

If everything goes well, the Surrogate can issue either an Affidavit of Spouse or an Affidavit of Heir, allowing the named individual to act on behalf of the deceased in relation to the property listed in the document. These documents are not available until the sixth day after the death.

Administration

If the value of the property owned exceeds $20,000 and there is a surviving spouse, that person may be appointed Administer of the estate, and a bond for the full value will be posted if there are other people entitled to inherit it.

If there is no surviving spouse and the estate exceeds $10,000, the next-in-line heir can be appointed as administrator, and the rest of the process is the same. Please keep in mind that renunciations may be required.

If you want to be considered for the position of administrator, the Surrogate Court requires a few things. A certified copy of the death certificate and qualification papers signed by the applicant are included (s). Letters of Administration and certificates will be issued once all requirements have been met, but not until the sixth day after death.

Contact New Jersey Estate Planning Attorney Today

No need to panic if you don’t have a will. While attorney Justin Scott agrees it can be (and usually is) beneficial, he also says:

“There are ways to work around it. These steps, while they can seem rather daunting, are in fact quite easy to understand, if you have knowledgeable people passionate about what they do. It’s our job to take care of the hard parts because waking up and living each day with the loss of a loved one is plenty hard enough.”

Contact us today at (856) 485-4585.

How to Avoid Probate: Part 1

“Probate this, probate that!” you may be thinking. That’s fine, but what if I don’t want to deal with any of it? Is there a way to avoid it entirely?

The simple one-word answer is: YES!

In Part 1 of this three-part quick how-to guide, we’ll cover a couple of things: Revocable Living Trusts, Pay-On-Death Accounts, and Registrations.

To begin, let’s look at the first thing.

Revocable Living Trust

Basically, Living trusts were created in order to give people an end-run around probate. One advantage of having any of your valuable property in a trust is that it is not considered part of the probate estate. Keep in mind, however, that it is counted as part of the estate for federal tax purposes.) The reason for this is because someone called a trustee, and not you as an individual, owns the property left in the trust.

After you pass away, the trustee can then easily and quickly pass along the trust property to whomever you left it to—thus avoiding the probate process. You are also able to specify in the trust document (think of it almost like a will) who you want to inherit the property, whether family or friends.

Pay-On-Death Accounts

Something interesting that you can do with your bank accounts and retirement accounts are to convert them into what is known as a Pay-On-Death account. This process is rather easy. All you have to do is fill out a simple form and then list someone as a beneficiary. Upon death, the monies in those accounts go directly to the beneficiary you listed and thus avoid the probate process.

Registrations

You can also do the same thing for security registrations and, in some states, even vehicle registrations as well. It is important to note that some states also allow for Payable-On-Death real estate deeds that use a deed that doesn’t go into effect until you pass away.

Other Ways to Avoid Probate

So as you can see, there are quite a few ways to fully avoid going through probate if that’s something you decide you’d rather not do. In part 2 of our article, we’ll look at how to avoid probate using Joint Ownership of Property and by giving Gifts.

Scott Counsel’s attorneys are well-versed in Surrogate Court procedures. When your rights are violated, we can advise you of your rights and, if necessary, file a lawsuit to seek an appropriate remedy. Contact us today at (856) 485-4585.

A Simple Will: Just the Basics, Please

So, most people have heard of a will. It’s a good idea to have one because if you don’t, the state decides who gets your belongings and, in some cases, who raises any children you leave behind. If the thought of that scares you as much as it does me, you should probably make a will. While this may appear to be a nearly impossible task, it does not have to be. In fact, there is such a thing as a basic will, and our New Jersey estate planning attorney will explain further.

You Can Write Your Basic Will Yourself

If all you want or need is a basic will, you can actually write it up yourself, without any legal help, using a do-it-yourself book or software. Fear not, making a will this way ensures that it’s just as legally binding as if you had a professional help you with it.

With a basic will, you can make a binding document that does the following:

  • Leaves your property to the people and organizations of your choice
  • Names a guardian to care for any minor children you have in case you can’t
  • Names someone to manage any property you leave to any minor children (either your own or someone else’s) and finally
  • Names your personal representative, who makes sure that the contents of your will are carried out.

When Do You Need a basic Will in New Jersey?

In general, if you’re under 50 and don’t expect to leave a lot of valuable assets behind to estate taxes, you should be able to get by with just a basic will. However, as you get older and have more valuable possessions, it may be a good idea to look into something better.

Can A Basic Will Avoid Probate? 

Unfortunately, there is no way to answer that question. If you leave anything more than a small amount of property in your will, probate proceedings will almost certainly be initiated. It’s no secret that probate is a time-consuming and expensive process, lasting anywhere from six months to a year and costing up to 3-5 % in lawyer and court fees. Beneficiaries will also receive little to nothing until the process is completed.

The good news is that if you only need a basic will, you don’t need to worry about probate right now. If you’re young, in good shape, and don’t have a lot of money, your main priority should be to plan for the unlikely event that you die suddenly and unexpectedly. Aside from that, you almost certainly have enough time later to plan for all of these other things.

Our New Jersey Estate Planning Attorney is Here to Help

So concludes our brief examination of a basic will. We hope this helps to shed some light on a situation that you may not have realized could apply to you. Finally, consider this quote from New Jersey estate planning attorney Justin Scott.

“Anything dealing with legal matters can be confusing and costly, so it’s good to let people know there is something they can draw up themselves, with the help of books or software, and make sure that the important things in their lives are taken care of without having to go through the stress and hassle of having to shell out a lot of money to hire a professional.”

Can Medicaid Take Your House?

If you are an elderly individual who has been living with your spouse for most of your life, it can be a scary situation if they are suddenly put into a nursing home, and it can leave your mind full of swirling questions and concern. Not the least of those questions might be if Medicaid can actually take your house in order to pay for the cost of the nursing home care that your spouse requires. Dealing with such a transition is hard enough in and of itself; you shouldn’t have to worry about potentially not having a place to live on top of it. So let’s put those fears you may have to rest.

Generally, a person’s house is exempt, and as such, isn’t counted when he or she goes to apply for Medicaid. You need to check current law to confirm this in your case. However, if you’re married and your spouse continues to live in the home, the home then becomes exempt regardless of value.

Also, some states will require that the person applying for Medicaid or the homeowner indicate either orally or in writing that they “intend to return” to their house if they are ever physically able to do so, regardless of how unlikely a scenario it may be. If the person isn’t able to understand this or communicate it, then a family member can do so for them to the state Medicaid workers.

Please note that although the house might be exempt at the time the owner applies for Medicaid, there are a few states that will begin to count the house once six months have gone by, but only if it’s clear that the owner won’t ever be able to go back to the home according to a physician’s examination and conclusion. However, this is a minority position, and most states will continue to exempt the house for as long as the applicant is alive.

However, in all states, once the Medicaid recipient dies, the state will then seek repayment of any Medicaid outlays made on behalf of the recipient. For instance, if your loved one was in the nursing home two years, and Medicaid was paying them.

To finish up, in most cases, you will not lose the house in order to pay the nursing home as long as the recipient is alive, but it may be sold to pay off Medicaid once they have passed away.

Coronavirus Special Announcement

Our top priority at Scott Counsel is protecting the health and environment of our employees and clients. We are closely monitoring the current coronavirus (COVID-19) outbreak, and our top priority is keeping our employees and customers safe. In addition to following the guidance of the Centers for Disease Control and Prevention (CDC) and the World Health Organization (WHO), we already have policies and procedures in place across our business to address issues that may arise during this outbreak and potential pandemic events.

For the safety of our in-office appointments, we currently perform a temperature cleck, require face coverings, and hand sanitation upon entrance to our premises.

MAID: Assisted Suicide or Death with Dignity?

For supporters of MAID, allowing terminally ill patients the choice to have “death with dignity” is the humane and compassionate thing to do. On the other hand, some medical professionals view participation in MAID as a violation of their ethical responsibility to “do no harm.”

 

On April 12, 2019,  Governor Murphy of New Jersey signed into law the “Medical Aid in Dying for the Terminally Ill Act.” The law, which originally took effect on Aug. 1, 2019, established New Jersey as the eighth state to allow qualified terminally ill patients the option to request and self-administer lethal prescription drugs to “end their lives peacefully, with dignity, and at their own discretion.” (State of New Jersey Press Release, April 12, 2019).

A patient interested in undergoing medical aid in dying (“MAID”) must satisfy specific statutory requirements in order to be eligible. First, the patient must make a series of three statutorily required requests for the lethal medication. Two of the requests must be made orally to the patient’s attending physician at least 15 days apart, and the third request must be made in writing. The written requests must be witnessed by at least two people in the patient’s presence who can attest that the patient is capable and acting voluntarily.

In addition to making the requests, the patient must be found to be a qualified terminally-ill patient. In order to be a “qualified” terminally-ill patient, an attending physician must determine that the patient is:

  1. An adult resident of New Jersey,
  2. Capable,
  3. Terminally ill with a life expectancy of less than six months, and
  4. The patient must have voluntarily expressed a wish to receive a prescription for lethal medication.

If the attending physician finds the patient meets the above requirements, they must then refer the patient to a consulting physician to confirm their findings. If either the attending or consulting physician determines that the patient is not capable of making their own health-care decisions, the patient must be referred to a mental health-care professional. In that case, no lethal medication can be prescribed until the attending physician receives a written determination from the mental health-care professional that the patient is capable.

While many refer to “medical aid in dying” as physician assisted suicide or euthanasia, the Act explicitly states that the provisions of this Act “shall not constitute … suicide, assisted suicide, [or] mercy killing … under any law of this State.” (Medical Aid in Dying for the Terminally Ill Act). This creates a situation where you have a doctor advising about lethal medication, prescribing that lethal medication, and a patient self-administering lethal medication, yet it is not “suicide” or “assisting suicide” under the law of New Jersey. Instead, the Act provides that its provisions are to be considered “medical aid in the dying process.” N.J. P.L. 2019, c.59.

Other states have also grappled with making a distinction between assisted suicide and medical aid in dying. For example, in examining a statute that was very similar to New Jersey’s, the Montana supreme court articulated that patients were not seeking to commit suicide “[r]ather, they acknowledge that death within a relatively short time is inescapable because of their illness or disease. And with that fact in mind … they simply ask the government not to force them to suffer and die in an agonizing, degrading, humiliating, and undignified manner.” Baxter v. Montana, 224 P.3d 1211,1226 (2009).

Supporters of the Act contend that medical aid in dying allows patients who are already dying from a terminal illness to pass away in a manner of their choosing—instead of dragging out the inevitable while they are left to suffer. Steve Sweeney, the president of the New Jersey Senate, stated that the Act “provides a humane choice for terminally-ill patients who are experiencing tremendous suffering and pain. It offers the freedom of choice for those with no hope of surviving beyond six months to end their suffering in a dignified way.” State of New Jersey Press Releases, April 12, 2019.

Jessica Guenzel, a resident of Rutherford, New Jersey, voiced her support for the Bill after watching her mother suffer from a “horrible, drawn-out death. She [her mother] lost all of her dignity, all of her happiness. Everything hurt and we knew she was dying and all that we could do was sit there and wait while she begged for relief.” State of New Jersey Press Releases, April 12, 2019. Support for MAID seems to be growing as a May 2018 Gallup Poll showed that 72% of Americans believe that “doctors should be legally allowed, at a patient’s and a family’s request, to end a terminally ill patient’s life using painless means.”

While support may be growing for MAID, many people remain vehemently opposed to MAID. Sarah Steele, was told that most people with her prognosis only have three years to live, but that she has survived for 13 years. Her fear is that “a doctor’s ‘educated guess’ could be wrong, which means people may be throwing away years or even decades of their life.” (“Doctor-assisted suicide in New Jersey,” Wilson-Glover, 2019). Also opposed is Dr. Yosef Glassman, a physician who filed a lawsuit seeking to block the law from implementation

For those medical professionals opposed to participating in MAID, this isn’t just a political question, but it is something that strikes at the very core of what it means to be a healer. Glassman based his suit, in part, on the requirement that a physician who does not wish to participate in MAID must still refer that patient and transfer the patient’s records to a physician who is willing to participate in MAID. Glassman argued that the act of transferring the records and referring the patient to another doctor was tantamount to participation, and, in his view, this would make him complicit in something he viewed as both unethical and immoral. Glassman v. Grewal, 2019. Glassman further argued that participation in MAID violates his faith and his “oath as a doctor” which prohibits him from assisting in a “murder.” (Susan Livio, “Doctor tells judge N.J.’s new right-to-die law is murder,” 2019).

Initially, a New Jersey trial court ordered a preliminary injunction that blocked implementation of the law until after Glassman’s legal challenges could be decided on the merits. However, an appellate court disagreed, and the Supreme Court of New Jersey issued an order denying Glassman’s request for relief on Aug. 27, 2019. Order on Emergent Motion, Glassman v. Grewal, No. AM-000707-18T3 (N.J. Aug. 27, 2019). The court’s decision to deny the preliminary injunction allowed implementation of the law to continue, but it did not address the underlying merits of the case. The merits of the case are being decided in Mercer County Superior Court where Glassman and three other plaintiffs have challenged MAID.

While the medical community has moved forward with implementation of MAID, the courts of New Jersey are still grappling with Glassman’s underlying legal challenge. Most outlets seem to suggest that since the Supreme Court of New Jersey denied Glassman’s request for relief on the temporary injunction, the case is all but over; however, the reality is that until the merits of the case are decided by the court, this case is still ongoing—no matter how unlikely Glassman is to be successful. Susan Livio, 2019.

For both sides of MAID, the stakes couldn’t be higher. On one hand, you have terminally ill people who are suffering excruciating pain, and at times humiliation, as they wait for their imminent death. For supporters of MAID, allowing those suffering from terminal illness the choice to have “death with dignity” is the humane and compassionate thing to do. On the other hand, you have medical professionals who may view participation in MAID as a violation of their ethical responsibility to “do no harm.” For some, they may also view participation in MAID as a violation of their sincerely held religious beliefs or personal ethics. In either case, for medical professionals who do not wish to participate in MAID, the crux of the issue seems to hinge on whether transferring a patient’s medical files equates to participation.

Justin L. Scott serves as principal attorney for Cherry Hill elder care firm Scott Counsel, PC. 

 

Other names on your home title other than you and/or your spouse

When a married couple applies for Medicaid, assets are either exempt or countable towards the Medicaid eligibility limit. Exempt assets usually include the residence, when a spouse or certain other family members are living there, one automobile, furniture, clothing, etc., Typically, when one spouse is in a nursing home and the other spouse is living at their residence, the residence is exempt for Medicaid eligibility purposes. This would mean the spouse could keep living in the house and it would not negatively impact the other spouse’s Medicaid eligibility.

However, sometimes the title to the residence is not in the name of either spouse. For example, the home could be “owned” by a trust that the married couple established. In this case, it is possible that the home will not be exempted for Medicaid eligibility because it is not owned by either spouse. For example, a federal court decided that it was improper when a married couple set up a trust to have ownership of the residence at the time of the Medicaid resource assessment, when the ownership could shift back to the couple. As a result, the residence was not exempt for Medicaid eligibility because it was not owned by either spouse at the time, and the couple was penalized for Medicaid eligibility.

If you are in a situation or considering a situation where a trust would own your residence, or if you are considering transferring ownership to your residence to someone else, it is very important that you contact an elder law attorney beforehand. Transferring title to property prior to getting Medicaid may result in a Medicaid penalty if they find that you transferred it for less than fair market value. As you can see, title and ownership transfer can be a very sticky subject when you are trying to qualify for Medicaid. Make sure to talk to a professional to help keep your Medicaid eligibility on track.

Possible agent orange claim

Agent Orange was an herbicide used to clear plants and trees during the Vietnam War Era. Agent Orange was also used near the Korean DMZ and in certain related jobs during the Vietnam War era. Veterans who were exposed to Agent Orange and have developed a medical issue that is on the VA list of medical conditions associated with Agent Orange may be entitled to extensive financial compensation.

Many veterans may not realize that they are eligible for this benefit because over the years the VA has expanded the list of medical conditions that are now associated with Agent Orange exposure. The medical issues on the VA’s Agent Orange list include:

  • AL amyloidosis
  • chloracne, early-onset
  • chronic B-cell leukemia
  • Hodgkin’s disease
  • ischemic heart disease
  • lung and trachea cancers
  • multiple myeloma
  • non-Hodgkin’s lymphoma
  • Parkinson’s Disease
  • peripheral neuropathy
  • porphyria cutanea tarda
  • prostate cancer
  • soft tissue sarcomas, and
  • type 2 diabetes

If a veteran develops one of the above diseases and served in Vietnam between 1962 and 1975 or in the Korean DMZ between 1968 and 1971, then the VA will presume the disease is a result of exposure to agent orange. This can make it much easier to get disability compensation from the VA.

Benefits that a veteran could receive include health care benefits, financial compensation, and an Agent Orange Registry health exam. If you think you may fall under the category of veterans who developed a disease as a result of Agent Orange exposure then you would need to file a claim for disability compensation and submit you supporting documents to be used as evidence. If you have any questions about this process you can reach out to a VA attorney or similar professional and have them assist you with your claim.

Like always, if you have any questions or would like to explore your eligibility for these programs or any other Elder Care law issues, call 856-281-3131. We’d be glad to help ease your stress and form the plan that is right for you.