Cosner Law Group 2025-03-31T13:38:50Z https://www.cosnerlawblog.com/feed/atom/ WordPress On Behalf of Cosner Law Group <![CDATA[A home may be vulnerable if its owners need Medicaid benefits]]> https://www.cosnerlawblog.com/?p=46294 2025-03-21T15:15:15Z 2025-03-21T15:15:15Z Medicaid eligibility depends on financial need Medicare is an earned benefit that people acquire through years of gainful employment. Medicaid is a needs-based system that provides medical coverage to those without adequate income or personal assets. There are strict rules regarding how much countable property an individual can have and the amount of their monthly income when they apply for Medicaid benefits. People can qualify despite owning a home and having tens or hundreds of thousands of dollars in accrued equity. However, any amount they receive in Medicaid benefits could be subject to estate recovery efforts after they die. The Medicaid estate recovery program can make a claim in probate court seeking repayment for all payments made for the care of a Medicaid recipient. If there aren't enough other resources in the estate to repay Medicaid for care costs, the courts might grant a lien against the primary residence of the deceased beneficiary. In some cases, families have to refinance or liquidate the home to repay the benefits an older adult received before they died. Planning in advance can protect the home and the legacy of the older adult from estate recovery efforts. There are numerous strategies that people can use. They can take on co-owners long before they apply for Medicaid. They could transfer the property to a trust. The overall extent of their resources and their family relationships may influence the best solution for protecting a home as part of a Medicaid planning effort. Taking steps at least five years before an older adult might require Medicaid coverage can help eliminate the risk of a penalty when they start receiving benefits. It may also be possible to limit or eliminate state recovery efforts with the right plan. Preparing in advance for a future Medicaid application can help people feel more confident as they prepare for retirement.]]> On Behalf of Cosner Law Group <![CDATA[Asking your spouse for a divorce on Valentine’s Day]]> https://www.cosnerlawblog.com/?p=46293 2025-02-15T03:20:09Z 2025-02-15T03:20:09Z contemplating divorce, you may wonder whether breaking the news to your spouse on Valentine’s Day is appropriate. Perhaps speaking about divorce could lead to unnecessary pain for both parties. It is important to explore the benefits and drawbacks of delivering such life-changing news on a day that is associated with love before doing so.

The emotional weight of Valentine’s Day

Suppose Valentine’s Day holds significant emotional meaning for you and your spouse. If so, breaking such news to your spouse on Valentine’s Day may add an extra layer of heartbreak to what will likely already be a difficult conversation. The cultural and societal emphasis on love during this holiday may amplify your spouse’s emotions even if they saw the divorce coming. The emotional context of Valentine’s Day can make it more challenging for both you and your spouse to process the conversation calmly. If your partner has expectations for romance or intimacy on this day, the news might feel like an unexpected betrayal. Timing matters and choosing a less emotionally charged day may allow for a more constructive dialogue.

Why choose Valentine’s Day?

While it may seem counterintuitive, there are reasons to consider breaking the news on Valentine’s Day. Suppose the relationship is already strained or distant. You may feel that addressing the truth is more compassionate than engaging in a false display of affection. In such cases, going through the motions of a romantic holiday might feel disingenuous. Withholding the news may create an atmosphere of tension or resentment. In such a predicament, Valentine’s Day can serve as a symbolic moment to confront reality. If your decision to divorce has been long considered, you may view the holiday as an opportunity to close a chapter and begin a path toward healing. Ultimately, it is important to approach asking your spouse for a divorce with honesty, empathy and respect, regardless of the day you choose. The end of a marriage marks the beginning of a new chapter, and how you navigate this pivotal moment can influence the journey ahead for both you and your spouse.]]> On Behalf of Cosner Law Group <![CDATA[How retiring adults can plan to avoid guardianship later]]> https://www.cosnerlawblog.com/?p=46292 2025-01-19T14:25:41Z 2025-01-19T14:25:41Z By designating someone to manage their affairs No one ever knows what may happen to their health as they age. Many people retain their cognitive capabilities and physical health well into their retirement years. Others may develop medical issues that make them reliant on others for support. Physically debilitating symptoms and conditions that cause cognitive decline can render people incapable of independently managing their daily lives. In such scenarios, family members, professional caregivers and other concerned parties could potentially go to court and ask for guardianship as a way to support an older adult. However, not everyone who pursues guardianship necessarily has the best interests of a vulnerable person at heart. People preparing for retirement can ensure that the person managing their finances or otherwise overseeing their affairs is someone who wants what is best for them. Drafting durable powers of attorney is a way to designate an agent or attorney-in-fact who can retain legal authority even if the party who drafted the documents becomes permanently incapacitated. They can perform the same essential functions as a guardian without needing probate proceedings to secure authority. Durable powers of attorney can remain in effect until an individual's condition improves or they die. Powers of attorney drafted without the necessary language to make them durable could lose their authority if the principal who drafted the documents becomes permanently incapacitated. The need for durable powers of attorney is one of many elder law matters that people may need help addressing as they prepare for retirement. Reviewing and expanding an estate plan with the assistance of a skilled legal team can help people age with dignity while accessing the support they may need.]]> On Behalf of Cosner Law Group <![CDATA[3 estate expenses that can reduce a personal legacy]]> https://www.cosnerlawblog.com/?p=46291 2024-12-19T22:30:11Z 2024-12-19T22:30:11Z 1. Probate court costs

Some people are able to establish estate plans that keep almost all of their property out of probate court. Creating a trust, for example, can help certain high-value resources completely bypass the probate process. Typically, the estate must cover probate costs before anything transfers to beneficiaries.

Testators may need to plan to minimize probate oversight. They may also want to address the possibility of probate conflict, including will challenges. Litigation among their beneficiaries could significantly reduce the overall value of the estate.

2. Personal debts

Any financial obligations owed by an individual become the responsibility of their estate after they die. The personal representative administering the estate has to notify creditors about an individual's passing. Parties ranging from student loan providers and medical creditors to credit card companies can file claims in probate court. Their demands for payment take priority over the inheritance rights of family members and named beneficiaries. Testators may need to make arrangements to pay their debts, possibly by purchasing sufficient life insurance coverage.

3. Tax obligations

There are typically two kinds of taxes that can affect the value of an estate. The decedent and the estate may have income taxes to cover. The personal representative handles the process of filing income tax returns and must use estate resources to pay any outstanding income tax obligations. If the estate is worth millions of dollars, then estate taxes might also apply. Testators can plan in advance to reduce what assets actually become part of their estate. Doing so can limit or eliminate estate tax responsibilities. Careful estate planning can help ensure that as much property as possible passes to an individual's beneficiaries. Identifying potential sources of financial liability can help people maximize their final legacy.]]> On Behalf of Cosner Law Group <![CDATA[Can children decide where to live when their parents divorce?]]> https://www.cosnerlawblog.com/?p=46290 2024-11-09T23:27:53Z 2024-11-09T23:27:53Z Children can influence custody but don't control it A child's preferences can be one of the factors that a judge considers when handling a contested custody case. However, the child does not decide where they live. Instead, they express their wishes, and the judge decides how much weight to give their preferences along with other factors when making the final custody determination. Typically, children over the age of 12 who demonstrate adequate maturity can voice their preferences. The reasoning they give for expressing a certain preference can influence how much weight a judge assigns to their wishes. For example, if a child expresses enthusiasm about playing video games with one parent, a judge may give that very limited consideration. However, if they express concerns because of an unhealthy dynamic with that parent, those concerns can carry more weight. The final determination for custody matters does not fall to the child in a litigated custody scenario. Instead, the judge decides what is best for the child based on their wishes and a host of other considerations. Parents who understand what influences a judge's determination may feel more confident about pursuing shared custody during a divorce. Even those who have a difficult relationship with their children still have an opportunity to spend liberal amounts of time with them after a divorce.]]> On Behalf of Cosner Law Group <![CDATA[What makes durable powers of attorney distinct?]]> https://www.cosnerlawblog.com/?p=46289 2024-10-18T12:52:05Z 2024-10-18T12:52:05Z Durable documents protect people for longer There are several scenarios in which powers of attorney lose their legal authority. When someone dies, they no longer require an agent to handle their affairs, and the authority to manage their assets transfers to their personal representative. Other times, an individual who has an incapacitating medical emergency, like a coma, may recover after receiving medical treatment. Once they become capable of expressing themselves and understanding their circumstances, they no longer need the assistance of an agent. In a scenario where people become permanently incapacitated and can no longer act on their own behalf or draft legal documents, standard financial and medical powers of attorney may lose their authority. People work with lawyers to draft durable documents so that they remain in effect even in cases involving permanent incapacity. State law recognizes the validity of durable financial and medical powers of attorney when the documents include the right language. People can effectively choose their own guardians who can manage their resources and medical care if they never regain the ability to effectively act on their own behalf. Creating custom documents that persist even after a long-term medical emergency can be an important component of modern estate planning. Durable powers of attorney with customized language offer people the best protection possible when they are at their most vulnerable.]]> On Behalf of Cosner Law Group <![CDATA[3 ways to pay for long-term care after retirement]]> https://www.cosnerlawblog.com/?p=46288 2024-09-14T17:23:33Z 2024-09-14T17:23:33Z With personal savings Some people have set aside significant amounts of money that allow them to retire in comfort. People with six or seven-figure retirement saving funds can potentially pay out of pocket for rooms in nursing homes and other long-term care. Of course, doing so may diminish what they leave for their loved ones after they die. Exploring the average cost of support can help people predict whether their personal savings can stretch far enough to cover those expenses or not.

With long-term care insurance

Given that long-term care costs can be exceptionally high, some people purchase private insurance policies to cover those costs as they age. Long-term care insurance policies can pay for nursing home and in-home care support expenses.

With Medicaid benefits

Most working professionals and spouses who have supported a wage-earning partner qualify for Medicare after retirement. The different types of Medicare available can provide coverage for an assortment of different care costs. Unfortunately, Medicare typically does not pay for long-term care expenses. People may need to plan ahead to ensure that they are eligible to qualify for Medicaid when the time comes. Typically, planning for Medicaid needs to occur at least five years before people apply. They might otherwise be at risk of a penalty for any transfers and gifts during the 60 months prior to their application. Considering different options for covering long-term care costs can help those thinking about their needs when they retire. Those who plan ahead can feel more confident about their ability to access support when they are at their most vulnerable.]]> On Behalf of Cosner Law Group <![CDATA[What are the basic requirements for a valid New Jersey will?]]> https://www.cosnerlawblog.com/?p=46287 2024-08-19T00:46:23Z 2024-08-19T00:46:23Z A written instrument People often have typed or printed wills drafted by attorneys. In a handful of scenarios, people may also create holographic or handwritten wills on their own behalf. Audio and video recordings or statements made to witnesses are typically insufficient to serve as a will after someone dies. Creating a written document, often with the assistance of a licensed estate planning attorney, is necessary for those who want to establish meaningful legacies and protect their loved ones.

A competent adult testator

Generally speaking, people have to be at least 18 years old to draft a binding will unless they are emancipated minors. They also have to be of sound mind, meaning they have testamentary capacity. That typically means they must be aware of who is in their family and who their beneficiaries are as well as what property they own. Those who are truly incapable of understanding their circumstances may not have the necessary capacity to establish a valid estate plan.

The signatures of two witnesses

Some people believe that they must have a notary sign their estate planning paperwork. That typically isn't necessary for a will to be valid in New Jersey. However, there need to be at least two adult witnesses who watch the testator sign the document or hear them verbally attest to signing the document in their own free will previously. Those witnesses can help validate the document and the competence of the testator if there are any conflicts that arise later. Small mistakes when establishing or updating an estate plan could lead to questions about the validity of the documents at issue. Partnering with an estate planning lawyer is one of the most effective tactics for those who want to establish a will that they know represents their wishes and shall command the respect of the probate courts after their passing.]]> On Behalf of Cosner Law Group <![CDATA[3 assets that can inspire emotional disputes during a New Jersey divorce]]> https://www.cosnerlawblog.com/?p=46286 2024-07-15T12:54:14Z 2024-07-15T12:54:14Z Family pets People generally don't think of their pets as property. Their dogs, cats and other companion animals feel more like a part of their extended families. Unfortunately, the New Jersey family courts don't view animals that way. Instead, they look at pets as personal property. A judge doesn't divide pet custody but rather awards the pet to one spouse as part of the overall property division process. People often struggle with the idea of giving up access to a beloved pet or turning over a decision about that pet to a judge.

Real estate holdings

The primary residence where spouses live together and any vacation properties they own can be the setting of many treasured family memories. Real estate can also be a source of intense personal pride and much of someone's wealth. People fear losing their homes in a New Jersey divorce and may resent the idea of never going to the cottage or lake house again. People often become so emotional at the prospect of leaving their homes that they don't stop to consider whether keeping the house is practical.

Retirement savings and pensions

When it comes to retirement savings, people usually don't feel attached to the money itself but rather the future security that the retirement savings represent. They may find it difficult to give up some of their savings when they file for divorce. It may seem unfair to give away a portion of an account that only one spouse contributed to during the marriage. In most cases, the courts view any amounts saved during the marriage as part of the marital estate. Spouses who take the time to learn about divorce statutes and set specific goals are less likely to waste time and money during divorce because of their emotional reactions to certain property division issues. Thinking about long-term financial recovery and happiness may benefit those preparing for property division matters in a New Jersey divorce. Spouses with a focus on the future may feel less emotional about making concessions during divorce proceedings.]]> On Behalf of Cosner Law Group <![CDATA[What if couples don’t agree about property division during divorce?]]> https://www.cosnerlawblog.com/?p=46285 2024-06-14T13:18:20Z 2024-06-14T13:18:20Z New Jersey judges can make those decisions Judges in New Jersey have the authority to decide what happens with marital property in a divorce. They apply the equitable distribution standard enshrined in New Jersey state statutes to the marital estate. Equitable distribution means the fair division of property and debts. Judges generally have to consider numerous specific details about a marriage to divide marital property in a fair way. New Jersey's law includes earning potential, marriage duration, individual health and a host of other factors in the list of what a judge must consider when dividing marital property. Judges have the authority to award people assets and to make them responsible for debts. They can even sometimes order people to sell certain assets if there isn't a fair and reasonable way to directly divide them. How a judge views marital circumstances can be drastically different from how either spouse views the situation. Even when working with an attorney, it can be difficult to predict exactly how a judge may divide marital property. Those who expect to rely on a judge to make key property division determinations may benefit from being very thorough when creating an inventory of marital resources and debt. They may also need assistance when reviewing disclosures made by a spouse. Understanding the rules that apply in property division disputes can benefit those worried about the future during a divorce. New Jersey's equitable distribution statute typically helps ensure that neither spouse ends up in an unfair position post-divorce.]]>