Gifts Large & Small for Family Members Suffering from Dementia & Alzheimer’s

I was reading my youngest son a story before bedtime. Lately, he’s been into the Berenstain Bears and tonight we read The Berenstain Bears and The Joy of Giving. This one is a Christmas story that tries to teach that there is more joy in giving than receiving. Just the right lesson for a 5 year old. But, the story got me thinking about how that difference extends into adulthood.

If you have a family member suffering from dementia or Alzheimer’s, most people would still find more joy in giving than in getting and perhaps the greatest gift would be a pill that could prevent or cure the disease. It turns out scientists are already at work on such a pill. Here’s a link to an article discussing the specific gene sequence that some scientists believe can help lead to a cure.

Until that time comes, people struggle to find appropriate gifts for loved ones with dementia. My friend, and fellow AATEELA lawyer, Victoria Collier, has put together a great list of thoughtful gifts. You can read the list here. All of these gifts deal with the joy of giving something that may spark recognition or comfort in the family member with dementia.

Posted by Victor Medina

Medina Law Group & The New Jersey Estate Planning Center

 

 

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Interesting Article from Forbes Magazine on the Five Crucial Estate Planning Mistakes You Are Making

Here is one of those posts that tells you to go read another website. Nothing fancy on this end, just go read that other article.

Interesting article today in Forbes, entitled Five Crucial Estate Planning Mistakes You Are Making. Read it here: http://www.forbes.com/sites/financialfinesse/2011/12/15/five-crucial-estate-planning-mistakes-you-are-making/

 

Posted by Victor Medina

Medina Law Group, LLC – The New Jersey Estate Planning Center

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My Post About Steve Jobs

When I heard about Steve Jobs resigning as CEO of Apple, I was in the middle of running rehearsal for the a cappella group of which I am the assistant musical director. I found out the news because my friend, Mark Merenda, had texted me with a simple, “Steve Jobs resigns as CEO”, and I suppose there wasn’t much more to say than that. It was short-hand for news I knew would come eventually, but I didn’t I wouldn’t have time to process it – to leave it alone — as I had to do that Wednesday evening.

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It’s a bit of a cliché to say that his resignation marks the end of an era, but it’s important to lay that foundation because it creates an excuse to look backwards over time since he returned as Apple’s CEO. In the days that followed the announcement, there were scores of articles that spoke about what he had created, the products that Apple released, and, my favorite, personal encounters with Steve. Some of the articles read more like obituaries, which I didn’t appreciate or think appropriate, and others used a lot of words to create conjecture about whether Apple’s best days were behind it — another topic that seemed wasteful.

For me, Steve Jobs’s retirement affected me in a way that caused me to feel sad and wistful — and I couldn’t quite figure out why. After some reflection, I realize I am emotionally involved in Steve’s retirement because he’s been a model for the kind of business leader I want to be. Now, I wouldn’t be the first to write about Steve’ fanatical attention to detail, or how doggedly he stuck to his vision (regardless of what the “market” thought, and sometime to glorious failure), or how important presentation is (the “SteveNote” is legendary).

However, this blog post isn’t about those things, as interesting as they may be. It’s about the most important thing I learned from Steve Jobs, which is about passion. Here’s the quote that sums it up:

“When I was trying to decide whether to come back to Apple or not I struggled. I talked to a lot of people and got a lot of opinions. And then there I was, late one night, struggling with this and I called up a friend of mine at 2am. I said, ‘should I come back, should I not?’ and the friend replied, ‘Steve, look. I don’t give a fuck about Apple. Just make up your mind’ and hung up. And it was in that moment that I realized I truly cared about Apple.”

I care about my law firm and my clients, and I have an overwhelming passion for the law practice I run, both what it is today and what I want to be in the future. The vision I have is not one that most attorneys share, which means that there isn’t strong support from The Establishment for what I am building. Along the way, though, I’ve been supported by watching the success that Jobs had running Apple. As much as Jobs cared about the details, so did (do) I and I’ve been willing to sacrifice pleasing the masses in favor of delighting a smaller group of people who are enthusiastic supporters of what I do.

Which, I suppose, (finally) brings me to my point:

I’m sad to be losing one of my role models.

I know, I know – let’s not get melodramatic here. I mean, it’s not my reason for living is gone or I suddenly regret the Apple tattoo I got on my lower ba…wait, never mind.  

Still, I got a lot from watching how a great company like Apple worked, which was largely due to how Steve worked. Maybe the new guy (Tim Cook) will be as good as Steve, but until he proves himself to me, I’ll be rewatching this video for direction, inspiration and how to deliver a great keynote:

Posted by Victor Medina, Managing Partner

Medina Law Group, LLC & The New Jersey Estate Planning Center

 

Posted in Apple, Family, Personal, Tech | 2 Comments

Sometimes You Don’t Want To Be Number One – New Jersey Leads Combined Federal & State Death Tax Rates

Will Ohio Estate Tax Repeal Trigger More  Robert W Wood  The Tax Lawyer  Forbes

One of the first consequences of the new estate tax law for 2011, the one raising the federal exemption amount to $5 million for an individual, was that financial advisors and planners were saying that “estate tax planning was OVER.” There was going to be no need to think about estate taxes ever again because of the high exemption amount. While I have maintained that tax planning is only one of the reasons to do estate planning, blanket statements like “estate tax planning is over” need to be examined a little more closely.

Here is a recent article from Forbes focused on estate taxes. The thrust of the article is that people are not taking into consideration the effect of state estate taxes, specifically the lack of credit given by the federal government. While the state estate taxes can be used as a deduction, that’s not the same as a credit. When you add it all up, the effective combined federal and state estate tax for New Jersey is over 54%. That is eye-opening.

Posted by Victor J. Medina, Managing Attorney

Medina Law Group, LLC

New Jersey Estate Planning Center

 

Posted in Advanced Estate Planning, Sophisticated Planning Techniques, Zero Tax Planning | Leave a comment

My 7 year old gives a warning, and I get the point – eventually.

The project looked simple enough. I had no reason to believe that, in 2008, I would set a chain of events in motion that would find me across an examination table, in full moon, awaiting the business end of a hypodermic needle filled with steroids.

Plants had begun to grow over my air conditioning condenser, threatening its operation and my comfort. After mowing the grass that morning — an operation that normally causes me much humiliation as I fire up my self-propelled, gas mower for a postage stamp of a lawn —I climbed over the waist-high vinyl fence I installed three years ago to keep my kids out. My enemies were clumps of greenness on all sides of the condenser and I was armed only with a set of hand-clippers, and my wit. Some might say I was outgunned on all fronts.

I spent the next 20 minutes cutting and pulling until I had removed every green thing from around the condenser. About 90% into the project, Aidan (my oldest son) walked by with a look of concern and asked “Is there any poison ivy in there?” — Poison ivy?!? Silly boy, I mused, of course there’s no poison ivy in there. Poison ivy wouldn’t dare lie in wait to coat my arms (and later my face as I wiped sweat away). Poison ivy announces itself like a gentleman and politely requests my presence in combat.

After clearing the brush, I moved to power washing my deck in an effort to restore its luster, and small part of my sanity as I put off the decision on hardscaping in my backyard. That chore took about a two hours during which I thought about lots of good “life lessons” — fodder for future blog posts about there being no shortcuts — and I left the day of work prepared to write one kind of blog post.

And then 8pm rolled in.

I felt a little itching in my arms, but nothing that required real scratching. I flicked on the light in my living room as was greeted by, what can only be described as, an army of red dots advancing on my elbow. Magically, the itching intensified and spread to my other arm.

My wife, who I am obligated to call a “saint”, ran to CVS to get me some calamine lotion and an anti-histamine. I contemplated the complex set of lies I’d have to tell Aidan to explain that, while it may look like his father is an idiot disfigured by poison ivy, in actual fact the rash was the result of something perfectly logical and understandable, as soon as I could think of what that might be.

I dabbed my arms with the pink solution and passed out for the evening. About 5am, I woke up to thunder and rain, but I couldn’t quite focus on my surroundings. My eyes felt heavy. I stumbled to the bathroom, closed the door and turned on the light. The face that greeted me was swollen beyond recognition. While I’ve never experienced a bee sting to my eyes, I’m pretty sure I’d look similar to what I saw this morning.

I went 3-for-3 on family members laughing at my appearance over morning coffee. I would tell you who laughed in what order, if I was capable of seeing out of my swollen eyes. If only. Instead, I made an appointment at the after-hours care center and explained to the receptionist that I don’t normally look like a boxer after 9 round of using his face as target practice. Not sure he bought it.

After diagnosing my condition as a reaction to poison ivy, the doctor left the high-skill work to the nurse, who returned shortly with a filled needle and instructions for me to drop my shorts.

That’s all of the story that’s worth retelling. To his credit, Aidan didn’t rub it in…much.

In searching this foolish story for a business lesson, this is the best I can come up with: what looks like a simple project can sometimes turn into a pain in the ass.

Posted by Victor J. Medina,
Medina Law Group, LLC
The New Jersey Estate Planning Center

Posted in Family, Personal | Leave a comment

Daddy, Can I Have An Apartment In The City?

One of the joys of having some success in life is your ability to do things for people you love — probably your children, first of all. For some New Jersey parents, that might include the ability to buy an apartment in the City (New York City) for their kids.

What, you may be wondering, does that have to do with estate planning?

(Although I warn you that I plan to blog periodically on matters that have very little to do with my legal specialty.)

A recent article in The New York Times points out some of the issues and gets many of the estate planning principles correct. (I would expect the NY Times to get that much right and they even used the words “family trust”.) The article spends a lot of time talking about issues related to passing co-op board interviews, and how to make sure that the other children are taken into account if the property is just for one of them.

The writer didn’t go into, however, any of the issues of whether a step-up in basis was preferable to a carry-over basis in the property if you title it in joint name between the parents and kids….but, then again, that doesn’t make for compelling reading, evidenced by the fact that your eyes likely rolled back into your head the moment I mentioned “basis.”

In fact, if you understand any part of what I just said, please call my office, I might have a job for you.

One thing the Times article got exactly right was its clear support for involving legal counsel before you engage in the real estate transaction. I can’t tell you how many times I’ve told clients, prospective clients, and planning partners that when they bring me an issue early, I have many more options than if they bring me an issue after decisions have been made. I try to encourage that kind of proactive attorney involvement by not charging clients in my Client Family Program for phone calls or strategic planning meetings. I figure that if I can take the cost element out of the occasion, then it’s easier for clients or their advisors to pick up the phone.

I did think they could have spared a few words about whether or not to leave the apartment to their kids as an outright distribution. There are some situations in which an outright distribution is a good choice, but many other times there are tremendous advantages to leaving the property protected from future ex-spouses, creditors, or as a means to protect vulnerable children from themselves. Whether or not that’s the right decision can be determined in a legal counseling session with a well-trained estate planning attorney, but I think it should have been mentioned in the article.

In any event, mark the day! Estate planning has gone mainstream and landed squarely on the front page of the Real Estate section of the New York Times – Sunday Edition!

Next: Estate Planning! The Musical.

Posted by Victor J. Medina, managing attorney
The New Jersey Estate Planning Center
Medina Law Group

Posted in Family, Living Trust, Membership Program | 1 Comment

The Self-Made Can Make It Again

When I talk to clients about the best way to leave assets for the next generation, I try to impress upon then the idea that inherited money feels different than money that is earned. It’s like Monopoly money, which is to say that it seems that it exists for play.

Perhaps that’s the reason why most inheritances don’t last beyond the first generation. It may also explain why heirs whose inheritance _does_ last more than one generation are not as charitable as people who have made their own fortune.

In this article from Bloomberg, Kat Rosqueta from the Center for High Impact Philanthropy suggests that for “those who made their wealth entrepreneurially, there’s a sense in which their wealth is theirs; as opposed to those whose wealth has been inherited, where they feel much more of a responsibility as a steward of somebody else’s wealth.”

A related article from the Wall Street Journal goes on to say that “the self-made rich have the confidence that even if they give away the majority of their fortune, they can always earn more.”

I think this has a lot to say about one’s view of the world. One is the belief that this is a world of abundance, and the other thinks that there is limited money to go around (so you should hold on as tightly as you can what what you have).

Charitable planning has the dual benefit of “doing good” while reducing estate taxes. Whether my clients are already charitably inclined or not, one of the things we discuss is how you can pass on life-lessons and values through estate planning. By engaging in charitable planning and leaving assets in a protected status, you can help the next generation understand that what they can make of this world is far more than what has been left to them.

And you thought estate planning was just about “documents” and taxes…

Posted by Victor J. Medina, Medina Law Group, LLC

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Why Estate Plans Fail

A common misperception about estate planning is that it is a “set it and forget it” activity. Often listed as a to-do on a long checklist of prudent adult responsibilities, creating a Will or naming guardians is a task that tends to be postponed year-to-year until something happens that causes you to visit an estate planning attorney. That’s as far as most people get — and that’s when (and how) estate plans begin to fail.

What most people don’t realize is that estate plans have an expiration date. The date is moveable, but its arrival is usually provoked by a “change” in circumstances.

Think about this: can you say you hold the same beliefs today as you did 5 or 10 years ago? Do you own the same assets as you did 5 or 10 years ago? Is your family situation the same as it was 5 or 10 years ago – that is, have you had any marriages, deaths, births, divorces, etc.?

In addition to changes to your personal and financial live, there have been numerous changes to the law in the last 10 years. And with the new estate tax law, there will be even more changes coming in the next couple of years.
The result of these changes is that a plan that was undoubtedly effective when it was created has grown stale, and like stale bread, the plan is no longer good for its original purpose. (Although it might still be okay for feeding the ducks.)

In my practice, I often see stale plans in the probate and estate administration cases we handle — encountering missing people, Wills that cannot be probated without hunting down witnesses, and financial strategies that made sense in the mid-90s, but which are simply unnecessary under today’s rules.

I’m sure you can think of similarities in your daily life, whether it’s periodic visits to the dentist, performing regular maintenance on a car or going to see a doctor early when there’s a problem. (My doctor likes to say, “Small problem, small solution. Big problem, big solution.”)

But the analogy I find most apt is that estate plans are like pianos. Immediately after tuning a piano, every key produces a perfect sound. Over time, though, the piano falls out of tune and requires attention to keep it from making all those unpleasant notes. Those of you who inherit old pianos know that the longer it’s been out of tune, the harder (and more expensive) it is to fix. The piano requires special skill, multiple visits and loving attention to correct those years of neglect.

The same goes for estate plans — but there is a solution that is simple: a system and a process for regular updates. That system needs to include scheduled meetings with your estate planning advisor that make it possible for you to alert your lawyer about changes to your personal or financial picture. It also needs to provide for regular updates from your lawyer about any changes in the law or new planning techniques.

As you probably know, we do this already with our YourLawyers4Life maintenance program. In January, we sent out a client update letter on the new estate tax law. In March and April, we will be meeting with our membership clients for our annual meeting. In September and October, it’s time to update the estate plans and provide the trustee training workshops that will provide you with peace of mind, and ensure your plan is carried out as you want it.

This updating, fine-tuning, maintenance — whatever you want to call it — is all part of making good on our promise to create plans that will succeed – today and in the future.

Posted by Victor Medina, Medina Law Group

 

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Victor Medina Elected President of the American Association of Trust, Estate & Elder Law Attorneys

 

FOR IMMEDIATE RELEASE: March 25, 2011

Victor J. Medina, Esq. Elected President of the American Association of Trust, Estate & Elder Law Attorneys

Pennington, New Jersey, March 25, 2011 — Victor Medina, Managing Partner for the Medina Law Group, has been elected President of the American Association of Trust, Estate & Elder Law Attorneys (AATEELA), a national, by-invitation only, association of lawyers in the area of estate planning and elder law. Medina, 35, was elected by the trustees of AATEELA to serve a one-year term to begin immediately.

Medina, a member of the National Network of Estate Planning Attorneys and Vice-President of the Princeton Bar Association, represents private clients in the area of estate planning, elder law, estate administration, and estate litigation. He is a graduate of Tufts University and holds a law degree from Northeastern University School of Law. Before taking the helm of Medina Law Group, Medina was a partner in Medina, Martinez & Castroll, LLC, and worked for Drinker Biddle in Princeton, NJ and Bingham McCutchen in Boston, MA.

“It is an honor to be chosen by my respected peers to chart the direction of AATEELA for the upcoming year,” said Medina. “The estate planning world is in a period of extraordinary opportunity to counsel clients. I am excited to work with the talented AATEELA membership to sustain the momentum going forward and continue the organization’s contributions in the field.”

AATEELA members are selected on the basis of their professional reputation, ability and creativity in the field of trusts, estates and elder law. Each has made substantial contributions to these fields through lecturing, writing and continuing education instruction.

About Medina Law Group — Medina Law Group, LLC is a boutique estate planning, elder law and probate/estate administration law firm, focusing on serving private clients with concierge-level client service. Its practice philosophy includes planning for the financial and non-financial goals of its clients. For more information, contact Tiffany Lauritsen, Client Services Director, at 609.818.0068 or visit www.jerseyestateplanning.com

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Estate Tax Gambler’s Anonymous

One of the topics I discuss in my initial client meetings is the federal estate tax and its future. Over the years, the discussion has had to change as the landscape of federal estate tax changes. I’m often asked what I think Congress will do in the future with the estate tax…and the truth is…I don’t rightly know.

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This article from About.com talks about how estate planners have been wrong at guessing what would happen in the future based on the past. The article talks about how most estate planners never thought the estate tax repeal of 2010 would occur. Personally, I got that one right. The article also talks about how no estate planners thought that there would be a $5 million exemption with a 35% estate tax rate. In all honesty, I blew that one…big time.

The best, and most consistent, advice I’ve given my clients is that prudent planning includes a cost-efficient system for updating your estate plan as the laws change over time. Estate taxes aren’t the only things that change, by the way – your personal and financial situation changes over time, as does your estate planning attorney’s experience. [I'm like fine wine; I get better with time.] If that makes sense to you, then the way to make sure you have the most up-to-date plan is to work with an attorney that has a system for regular client updates and education.

I think the worst approach to take is to gamble that the laws will be in your favor in the future. Congress does not have your best interests in mind when it comes to what happens to your estate after you’re gone. Moreover, with the new estate take law being good for two years only, it’s clear that the estate tax has become another political football – subject to the tides of election cycles.

This is no different that gambling at a casino – and Congress is the house. You need a good estate planning attorney to stack the deck in your favor and take the guesswork out of it.

Posted by Victor Medina, Medina Law Group, LLC

Posted in Advanced Estate Planning, Foundational Estate Plans | Leave a comment