Frequently Asked Questions about Estate Planning & Elder Law
Estate planning can often seem overwhelming and confusing. To add some clarity to the process, our attorneys have compiled a list of our FAQs about estate planning in the space below. If you have further inquiries, do not hesitate to contact our office, and we will happily answer your questions.
General Estate Planning
What does estate planning involve?
Estate planning includes legal documents and strategies to manage your assets, protect your loved ones, and outline your wishes for healthcare and finances in the event of incapacity or death.
Do I need both a will and a trust?
A will goes through probate and distributes your assets after death. A trust avoids probate and allows for management of assets during your lifetime and control after death.
When should I update my estate plan?
After any major life event, marriage, divorce, birth, death, or major financial change. Even without major changes, review it every 3–5 years.
What is asset protection planning?
It’s a legal strategy to shield your assets from lawsuits, creditors, or other financial risks using tools like LLCs, trusts, and exemptions under New Jersey law.
Elder Law & Long-Term Care
What does an elder law attorney do?
They help seniors plan for long-term care, qualify for Medicaid, set up healthcare directives, and manage legal issues related to aging.
What’s the difference between Medicare and Medicaid?
Medicare is federal health insurance for those 65+, mainly covering short-term needs. Medicaid is need-based and helps cover long-term care like nursing homes.
Can I protect my home while qualifying for Medicaid?
Yes, with the right legal planning, such as using irrevocable trusts or transfers, you can preserve your home while qualifying for benefits.
When should I start planning for long-term care?
As early as possible. The sooner you plan, the more legal options you’ll have to protect your assets and qualify for care.
Special Needs Planning
What is a Special Needs Trust (SNT)?
It’s a trust that allows assets to be used for a disabled person’s benefit without affecting their eligibility for SSI or Medicaid.
What can a Special Needs Trust pay for?
It can cover education, therapy, personal care items, recreation, and technology, but not basic needs like food or rent.
What’s the difference between first-party and third-party SNTs?
First-party SNTs are funded with the disabled person’s own money and must repay Medicaid. Third-party SNTs are funded by others and don’t require payback.
Who should serve as trustee?
Someone financially savvy who understands government benefits. Options include family, professionals, or a combination of both.
Guardianship & Conservatorship
When is guardianship necessary?
When an individual is incapacitated and has no legal documents (like a power of attorney) in place to authorize someone else to act.
What’s the difference between guardianship and conservatorship?
Guardians make personal and medical decisions. Conservators handle financial matters. One person can serve in both roles.
Can I avoid guardianship through planning?
Yes. Having a power of attorney and healthcare proxy in place can eliminate the need for court-appointed guardianship.
Probate & Estate Administration
What is probate?
It’s the legal process of proving a will is valid and overseeing the distribution of a deceased person’s estate under court supervision.
What are the executor’s responsibilities?
Duties include notifying creditors, inventorying assets, settling debts, filing paperwork, and distributing property to heirs or beneficiaries.
What are common probate mistakes?
Mistakes include late filings, distributing assets too soon, poor communication with beneficiaries, and mishandling estate property.
Dual Citizenship Estate Planning
Why is estate planning different for dual citizens?
Cross-border assets and U.S.-based holdings may face complicated tax and legal requirements. Probate can be especially time-consuming without a trust.
What is a Revocable Living Trust and how does it help?
It helps bypass probate and IRS delays, giving family quicker access to U.S. assets after death. It’s amendable and doesn’t require extra tax filings during life.
Long-Term Care Insurance
Is long-term care insurance worth it?
Yes. It helps cover the high cost of nursing home or in-home care and protects your estate from being depleted.
When should I buy a long-term care policy?
Before you develop health issues. The younger and healthier you are, the lower your premiums and the more options you’ll have.