Kyle T. Kievit Attorney at Law

Disclaimer

admin — Thu, 03 Feb 2011 15:48:59 +0000

This website is provided for informational purposes only and is not intended as a substitute for legal advise. You are urged to consult with an attorney regarding any legal issue that you have. Viewing this site does not constitute an attorney/client relationship with this firm.

TEN POINT ACTION PLAN

admin — Fri, 28 Jan 2011 20:42:54 +0000

1. Contact us to schedule an Inheritance Planning Conference (IPC)
2. We will send you a preconference package to prepare you
3. Complete your Family Inventory worksheet and return to us prior to our conference
4. Attend the IPC (about 2 hours) and determine if one of our planning strategies has value to you.
5. Engage our services and we will design the plan that fits your needs during the IPC
6. In about 4 weeks after the IPC we will have your plan ready for you to sign.
7. After signing, we will help you implement the plan
8. You have 90 days after signing to make changes at no additional cost to you
9. We will have a Family Meeting. at your direction, with no additional cost to you.
10. We review your plan with you ever 3 years to make sure your plan continues to meet your needs

PROTECTING THE DISABLED

admin — Fri, 28 Jan 2011 20:40:20 +0000

Our firm is lead counsel for a disabled individual in matter currently before the New Jersey Supreme Court. In Davis v. Devereux Foundation, the Court will decide if an institution that provides residential care for the mentally disabled can delegate its responsibility of care to its employee. The employee of Devereux intentionally caused injury to a resident by scalding him with boiling water. Normally, an employer is not responsible for the intentional acts of its employee. However, the Supreme Court will determine if the care owed to the mentally disabled is so important that the institution can not delegate its responsibility to someone else and must be held accountable for the intentional actions of the employee responsible for care.

This case will have substantial impact on the rights of the disabled. Charitable institutions such as Devereux, have immunity for negligent but not intentional acts. If the Court decides in Davis’ favor, institutions like Devereux will be held accountable for the physical abuse inflicted on those is their care.

DISCRETIONARY TRUSTS AND ALIMONY OBLIGATIONS

admin — Fri, 28 Jan 2011 20:39:04 +0000

A case is currently pending before the New Jersey Supreme Court concerning whether the income generated from irrevocable trust could be used in the computation of an award of alimony. The trust, created by the wife’s family, provided that the trustee had discretionary authority to make distributions to the wife for her support. The husband argued that the trust income should be used to offset his obligation for alimony. The Appellate Court ruled that, under current law, the wife’s beneficial interest in the trust was not an asset in determining alimony. The Appellate Court stated that the Supreme Court was the appropriate authority to determine if the language of the trust should be examined to determine if the beneficiary had the ability to compel distributions based up the trustee’s unreasonable abuse of discretion.

On January 7, 2011, the Supreme Court has decided to hear the case in Tannen v. Tannen.

CAN THE COURT CREATE A SPECIAL NEEDS TRUST WHEN THERE IS NO WILL

admin — Fri, 28 Jan 2011 20:38:14 +0000

A mother of four children, two with special needs, died before she could sign a will and create a supplemental needs trust. After her death, her administrator asked the court to allow the administrator to create and fund theses trusts, arguing it was the mother’s probable intent to create and fund the trusts. While the administrator was able to convince the trial judge, the Appellate Division reversed. The Court ruled that the concept of probable intent is not available when there is no will. Once the mother died, the children’s interest vested immediately under the law of intestacy.

The lesson to be learned – never wait to create a Special Needs Trust.

THE LAWYER DRAFTED THE WILL BUT THE CLIENT NEVER SAW IT – IS IT A VAIID WILL?

admin — Fri, 28 Jan 2011 20:37:36 +0000

Sadly, a client visited her lawyer’s office with the intent of changing her will. She gave the lawyer notes of the changes to be made. The lawyer created a draft of the new will but the client never saw or signed it before her death. The Appellate Court has ruled that to be admitted as her will, the proponent must prove by clear and convincing evidence that (1) the decedent actually viewed the document in question; and (2) thereafter gave her final assent to it.

Lesson to be learned – once the documents are created you must review and sign them to avoid problems.

CONGRATULATIONS TO SURROGATE JAMES CURCIO

admin — Fri, 28 Jan 2011 20:36:48 +0000

James Curcio was sworn in as the newly elected Surrogate of Atlantic County. I met with the Surrogate at the office in Mays Landing on January 13, 2011. He is getting settled into his new position and is anxious to set up his office in Mays Landing. Former Surrogate James Carney had performed much of his duties out of the Atlantic City office. Clerks at the office informed me that about 50% of the probate and administration cases are filed in Mays Landing.

We look forward to working with Surrogate Curcio.

ESTATE TAXES ONLY FOR THE SUPER WEALTHY – NOT IN NEW JERSEY

admin — Fri, 28 Jan 2011 20:35:43 +0000

After much debate and speculation, the Congress has enacted legislation that relieves estates less than $5 million of paying any federal estate tax, at least for the next two years. Many are surprised to hear that New Jersey still imposes an estate tax on estates over $675,000. In fact, New Jersey residents face the highest estate and inheritance tax burden in the country.

Don’t be lulled into a false sense of security. If you are a New Jersey resident, Estate Tax Planning should be at the top of your “to do” list in 2011.

SHOULD YOU ADD YOUR CHILDREN’S NAME TO YOUR ASSETS?

admin — Fri, 28 Jan 2011 20:35:04 +0000

Many people intending to make things “easy” for their children add their child’s name to the bank account or other property. However, doing so may have serious consequences. For example, the account may be subject to claims made in the event of the child’s divorce or subject to claims of the child’s creditors. The original owner of the account might also loose tax advantages such as step up in basis or result in a gift tax. The owner also looses some control over the asset as it may be impossible to later sell or transfer the asset without the child’s consent.

A Living Trust is often a better strategy to avoid probate without the pitfalls of adding your child’s name to the account.

WHAT EVERYONE NEEDS TO KNOW ABOUT ESTATE TAX LIENS IN NEW JERSEY

admin — Fri, 28 Jan 2011 20:34:08 +0000

While most estates of New Jersey residents are not subject to any federal estate tax liability, the State automatically imposes a state estate tax lien on ¬all property of the decedent. While no tax may even be due, the burden is on the representative of the estate to obtain a waiver of the tax lien to transfer the property. Until the waiver is issued, a New Jersey bank, for example, is only permitted to release one half of the account until the waiver is received. In the event the estate is over $675,000 the lien will not be fully released until the estate tax return is filed and the estate tax is paid. This often means that the one half of the bank account of the decedent may not be available for a year after death!

These problems can be eliminated with the use of a Living Trust. The assets in the trust are not subject to the automatic lien and the trustee has full access to all of the trust’s assets.