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....

Read More »

Wills Protect Your Family

WILLS AND TRUSTS PROTECT YOUR FAMILY The primary purpose of Wills and Trusts created in your Will, but not funded until after your death, is protecting your beneficiaries from themselves and creditors. Trusts created in your Will are called Testamentary Trusts. A By-Pass Trust is a great way to reduce estate taxes but it can also provide a surviving spouse with income while preserving trust principal for children of the current or a prior marriage. The By-Pass Trust may also be used to assure that wealth is responsibly used for the benefit of minor and adult children. The family, spendthrift, asset protection and special needs provisions described in the following paragraphs may be included in your by-pass trust. With a testamentary Family Trust you may provide income to your adult child while minimizing the risk that the funds will pass to the child's spouse upon the child's death or divorce....

Read More »

New Jersey Protected Assets - Questions & Answers

Question 1: Assuming that someone has won a money judgment against me in court, from what assets of mine does the judgment creditor satisfy the judgment?
Answer: The three basic sources which a judgment creditor may satisfy the judgment (1) income, (2) tangible and intangible personal property and (3) real property.

Question 2: What is considered income?
Answer: Income includes wages, debts, earnings, dividends, interest, salary, income from trust funds and business interests and profits. The debtor will be allowed to keep a portion of income and will pay the rest to the creditor. Generally, all income is subject to execution, but there are exceptions. ....

Read More »

Limited Liability Company - Questions & Answers - Tax Planning

Question 1: If I transfer an asset into a single-member LLC, will I have to pay any tax?

Answer: No. The transfer is to yourself for income tax purposes, thus there is no capital gains on the transfer.

Question 2: If I give membership interests to my children, will I have to pay gift tax?

Answer: Whether or not you pay gift tax and how much you might pay depends on the value of the membership interests you transfer. The IRS taxes the transfer of property by gift, whether direct or indirect. Any transaction in which a property interest is gratuitously passed or conferred upon another, regardless of the means or device employed, constitutes a gift subject to tax.

Read More »