Data breaches have been one of the hot topics this year in the wake of the Capital One data breach which compromised nearly 100 million Americans. But what hasn’t been receiving much major media coverage are the recent breaches affecting seniors.

One such breach occurred last year in May, and that breach compromised the personal information of almost 4,000 clients and employees of home care and support services for seniors in the bay area. That “personal information” includes quite a lot, from names, emails, and phone numbers to Social Security numbers, financial records, and health information.

2018 saw three times as many records breaches as in 2017, with 15 million patient records compromised in the healthcare sector. And this issue has only been exacerbated in 2019, with potentially more than 25 million records breached as of July.

Just one security incident in April affected at least 60 facilities in Massachusetts, Minnesota, Missouri, and Tennessee, compromising the personal information an unknown number of patients in those four states.

This is an issue that is becoming increasingly important, in a variety of sectors but especially in the healthcare sector. However, many in this area are ill-prepared to handle it. Data breaches are going on for extended periods, and not being reported within the 60 days mandated by HIPAA.

Part of the problem is that HIPAA is not well equipped to deal with security needs today, in a technological landscape remarkably different from that of 1996 when HIPAA was enacted. Unfortunately, any legislation or regulation enacted today would face a similar problem: technology continues to adapt quickly, and the market pushes the healthcare sector to invest in technological advances as they come.

A few tips to protect your online information: 1) Never open an email from an unknown sender that contains an attachment. 2) When storing information online with a bank or medical provider, make sure you choose a strong password – one that contains a combination of letters, numbers, and symbols that is not easy to guess. 3) Do not store credit card or social security information online.

If you have questions or would like to discuss your planning needs, we would be happy to help. You can reach any of our six offices by clicking here to send us a message or by calling us at (866) 456-9668.

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In our society, seniors need as much protection as possible to ensure they are not taken advantage of, exploited, or abused physically and emotionally. To make this happen, New Jersey has a variety of elder laws in place to benefit seniors and those who care for and about them. When legal situations arise involving seniors, they often focus on such areas as estate planning, establishment of a guardianship, obtaining various types of government benefits, and so forth. If you and a loved one are dealing with these or other similar issues, rely on the experience of Fairfield New Jersey elder law attorneys at the Law Offices of Faloni & Associates.

Estate Planning

Time after time, questions arise regarding the estate planning of seniors. In many cases, a family member or caregiver will be accused of taking advantage of the elderly person’s mental incapacity to drain bank accounts, seize property, or have themselves written into a will. When this happens, a variety of legal complications always follow. However, New Jersey elder laws take these situations into consideration and offer protections against such events taking place. If you suspect these or other similar issues have occurred, consult with Fairfield New Jersey elder law attorneys at the Law Offices of Faloni & Associates.

Gaining Benefits

Whether it is Social Security, Medicare or Medicaid, or perhaps various types of Veteran’s benefits, many elderly individuals need assistance in gaining the benefits they worked so hard for and deserve. Unfortunately, the process toward gaining such benefits can often be complex and confusing. Since much paperwork must be completed and filed by certain deadlines, it is imperative everything be done correctly from the beginning. Therefore, trust the expertise of Fairfield New Jersey elder law attorneys in these matters.

To discuss your case in greater detail, schedule a consultation today with the Law Offices of Faloni & Associates.

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When Jeanette’s mother was hospitalized, Jeanette’s father begged her, with tears in his eyes, to take care of mother if he ever couldn’t. Of course, Jeanette said “yes.”

Years later, when Jeanette’s father had gone and mother’s hearing and eyesight failed, she could no longer drive, and she had fallen several times, Jeanette remembered that promise.

Jeanette’s first step in keeping that promise is to make sure that if mother hasn’t already done so, she should visit us, your friendly elder-law counselors. We will check to see that mother has done the financial planning and powers of attorney that every adult needs, especially older adults, particularly those in mother’s situation.

As Jeanette keeps her promise, she will join a community of millions who are taking care of aging parents. The challenge is enormous. Caregivers can feel the loss of freedom keenly. Family emotional issues left unaddressed for years, may re-emerge. Jeanette might be spending money she’s not sure she has. She can’t sleep for worry. She is wrestling with the demands of caregiving, at the same time she’s striving to meet commitments to her own family and workplace. Her or another family member’s health can act up. Time off from work is harder and harder to come by, yet she may face daily demands and frequent emergencies.

The great numbers of people in Jeanette’s situation pose a substantial public health issue. Congress has recently passed the RAISE Family Caregivers Act , to establish a national strategy to provide assistance to so many of us.

It’s very important that caregivers also take care of themselves. Time-honored flight attendants’ advice is good here, too: Put on your own oxygen mask first. For advice on self-care and how to manage caregiver stress, visit the Mayo Clinic website, here.

Then, take full advantage of the numerous resources listed below. Remember:

Keep the home fires burning – but don’t you burn out yourself.

* * *

Area Agencies on Aging

This is a national association of nonprofit agencies serving as a clearinghouse for information on public long-term support and benefits. Services include elder transportation, emergency assistance, respite care (temporary supervision of the elder to provide rest for the caregiver), individual counseling and support groups, and caregiver education classes and training.

Caregiver Action Network

This website provides advice organized by the stage of the process the caregiver is in, helpful care checklists, and advice on cost management and juggling work and family obligations with caregiving responsibilities.

Caregiving.com

Here find podcasts, a story-telling project, a directory of caregiving consultants, an extensive free webinar library covering numerous topics including “decision fatigue,” plain old fatigue, boundary-setting, respite care, and many others.

Family Caregiving Alliance

This is the first community-based nonprofit in the country to address the needs of families and friends providing long-term care for loved ones at home. The site provides information, support, and resources state-by-state, as well as sponsoring research initiatives for caregiver programs and policies.

National Alliance for Caregiving

This site provides a long list of resources, including government programs for family caregivers, care locators, caregiving calendar to coordinate group volunteer efforts, financial information, and organizations that address caregiving for specific conditions like cancer and Alzheimer’s.

Parenting Our Parents

Peer-to-peer networking, family coaching, videos, and website compendiums.

If you have questions on anything you have read or would like additional information, please don’t hesitate to contact any of our six offices by clicking here to send us a message or by dialing (866) 456-9668.

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When a person obtains guardianship over an elderly individual, they have the right to the care, custody and control of that person. A guardian has the legal authority to make decisions for the individual, as well as the obligation to look out for their wellbeing. In order to obtain an adult guardianship, certain legal findings must be made by a court. If you wish to pursue a guardianship, then contact the Fairfield NJ elder law attorneys from the Law Offices of Faloni & Associates.

What is needed to get a guardianship?

In order to get an adult guardianship, a court must find that there is evidence of incompetence or other inability to care for oneself. A judge must also decide that the guardianship is in the elderly person’s best interest.

Because a guardianship limits the person’s rights to make decisions for themselves, a court will consider many factors in making its decision. This will include input from medical professionals, as well as a neutral court-appointed advocate who will conduct their own investigation and report back to the court.

If a judge determines that a guardianship is necessary, then it may only be set aside by order of the court. The guardian is provided with documentation that can be used to provide proof to financial institutions, care providers, medical providers and other parties that the guardianship is legal and that you have the authority to act for the individual.

Why should you contact an attorney about a guardianship?

Fairfield NJ elder law attorneys can provide legal advice and representation to assist with guardianships. Our law firm in Fairfield is experienced and knows what it takes to successfully have a court order a guardianship. We strive to help our clients understand how the law applies and your obligations if you are declared as a guardian.

Contact our law firm in Fairfield to receive answers to your questions about guardianship laws in NJ. The team at the Law Offices of Faloni & Associates looks forward to working with you.

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Before you retire or leave full-time employment for other pursuits, consider the impacts of your decision on the financial well being of your future. The transition to your next phase of life, whether full or semi-retirement, adventure-seeking, or family-driven, requires thoughtful planning to avoid needless surprises that can mean the difference between financial success or financial stress. Whether you have been planning your retirement for decades or days, contemplating these six key retirement elements can help you avoid unexpected problems.

Health insurance and the cost of health care throughout your retirement years is the first key consideration
. If you have been on an employer-sponsored plan, it is crucial to understand the depth and breadth of coverage options and associated costs when you leave your full-time employment. Health care costs will rise as you get older, and according to Fidelity Investments, the average 65-year-old couple will spend $280,000 on health care costs during retirement.

Fidelity Investments Retirement Planning

Medicare is a definite help once you reach the age of 65; however, it does not cover the cost of everything, which is why supplemental health insurance becomes necessary. Learn what Medicare does cover and then explore insurances that will fill in the gaps you most need to cover, such as dental, vision, and long-term care. If you are younger than 65, you will have to supply your health care coverage through vehicles like COBRA
if that is an option available through your current employer. If not a COBRA plan you can try the Affordable Care Act
(Obamacare). Employing this option and depending on your income, you may even qualify for a subsidy, but open enrollment periods are limited, and you must plan your retirement accordingly. Other insurance options include less robust coverage choices with short-term plans. These plans are only viable for generally healthy people who have no pre-existing conditions.

You may think you want to retire fully; however, it is not uncommon to shift gears and decide for a sense of purpose that you want to work part-time in your “retirement”. Depending on your age, part-time work may affect your social security benefits if you have already begun claiming them. The second key consideration
then is to know what your social security strategy is. Most retirees do not want to hold off on receiving their benefits at the age of 62 but the longer you can delay the larger your monthly checks will become. Your benefit increases 6 percent annually until full retirement age and then 8 percent annually until you reach the age of 70.

Since over half of Americans
ages 60 – 64 are still working full or part-time, it is critical to know what effect your wages will have on your social security benefits. Nearly one-third of Americans ages 65 – 69 are still in the workforce, and their earned wages are also affecting their social security benefits. The penalty, when exceeding the earnings cap, is short-term substantial. If you make more than $17,640 in 2019, for every dollar you exceed the cap, your benefit will be reduced by one dollar for every two dollars you earn. The monetary penalization will come back to you when you reach full retirement age in a higher monthly benefit check however it depends on your overall income, and up to 85 percent of your benefit is subject to federal income tax. The scenarios get complicated, and it is essential to understand the nuances of social security benefit rules and how they relate to your situation.

When you are preparing to retire the third key consideration
is evaluating your tax strategies based on your income. You may have provided for passive and multiple streams of income, and they have distinct tax implications depending on the type of financial retirement vehicle or product. Many people have a variety of retirement incomes such as 401(k)s, IRAs, taxable savings, investment accounts, health savings accounts (HAS) and business or trust incomes. All of these assets have optimal times to tap into for retirement income because of tax consequences. Know your strategy especially since your annual income can affect what you pay for Medicare.

The fourth key consideration
is to check what the risks are in your retirement accounts and income plans. By the time you retire, most of your financial portfolio should be in risk-averse financial vehicles. Evaluating and allocating your portfolio to include financially stable products like bonds or well-researched annuities is essential. If you do not have to be overly risky in your strategy, then, by all means, do not be. It is better to live comfortably, or even modestly, in your retirement years then throw everything you have on a betting wheel and come up empty-handed. If you have had the same investment strategy since you were in your early twenties, it is beyond time to re-evaluate your choices.

The fifth key consideration
is to prepare for an adverse event by having a financial cushion. Most financial advisors recommend that you keep several years of your income away from market-driven investments and maintain the cash in more stable vehicles like money markets, cash, and other investments that have minimal risk. The rule of thumb is never put the money you need to maintain your lifestyle for the next three years at risk. That allows you time to respond to any adverse event that may crop up while maintaining your retirement lifestyle. This way, if the investment markets are down, you will not have to sell those assets, potentially at a loss, to survive.

Finally, the sixth key consideration
is to prepare emotionally for the ups and downs and loss of identity that you have cultivated during your career. Many retirees have a difficult time transitioning to retirement when so much of their life has been defined by what they did for a living rather than who they are as a person. Many people become inextricably linked to their identity through their career and moving into retirement without that career identity can create unforeseen depression. If you do not have to work, it is important to create a new life purpose. Volunteering and mentoring is a fantastic way to help your fellow humankind and ward off feelings of loneliness and lack of self-worth. Also, prepare yourself that the money and those asset accounts you have worked so hard for all your life are going to reflect the change of retirement brings. It can be hard to watch withdrawals for your retirement living chunk away at what you worked so hard to build. Do not go to places of dark imaginings. Retirement spending is exactly what you worked for your entire life.

It isn’t always easy to transition to retirement life. Your working norm must be redeveloped into your retirement norm. Think carefully through the issues that will be most important to your success and well being BEFORE you retire.

Contact any one of our six offices
today by dialing (866) 456-9668 to schedule an appointment to discuss how we can help you with your planning.

The post Before Retiring, Go Through These 6 Considerations
appeared first on Faloni Law Group.

A letter of instruction can be a beneficial piece in estate planning. It is an informal document that will give your loved ones important information about personal and financial matters after your death. Letters of instruction are not legally binding and do not replace your need for a will or a living trust, however, it can be a nice complement to those documents. The informal nature allows you to create the letter on your own and change it whenever necessary. It is important to keep the letter up to date, as life circumstances change over time. Let’s look at some of the information that may be included in a letter of instruction.

The first thing you may want to include in your letter of intent is information about your funeral and burial arrangements. Be sure to include any plans you’ve already made, or what your wishes are as this can be very beneficial to grieving family members. Information about the type of funeral service you’d like, including who should officiate the service and special things to be included like music selections, can be a part of your letter of instruction. If you prefer to be cremated rather than buried, be sure to include that in your letter.

Another helpful inclusion would be a list of people you want to be contacted when you pass, and contact information if available. You may also include your wishes for donations to specific charities in your memory.

Information about your bank accounts, assets you hold title to, and other accounts can greatly help family members when trying to carry out the provisions of your estate plan. Be sure to include names and phone numbers of professionals who can help locate your accounts or who helped you plan. The location of other important documents should also be included with the letter of intent. These could include but are not limited to birth certificates, social security account information or statements, marriage license, divorce documents, and military paperwork. In addition, be sure to leave behind information related to mortgages and other debts.

These days, many of our accounts have transitioned to the digital world. Therefore, leaving behind information about your digital assets in your letter of intent becomes more important. This should include usernames and passwords for digital accounts, social media accounts, and the devices themselves. It is important not to leave family members guessing on this information.

Personal items can be a source of contention among family members when a loved one dies. A letter of intent can provide details about who will receive personal effects, including collections, important personal items, and other things that may not have monetary value, but do have sentimental value. In this section, you can also include information about the care of the pets you may leave behind. This section of your letter may include personal statements about your wishes and hopes for the future and can address specific family members.

A letter of intent can be a very real source of peace and comfort to your family members in their time of grief. It can be difficult to think about getting started on a letter of this nature, as none of us like to think about our own death. However, if you consider the items to include and create a plan, a letter of intent can often write itself. Taking this step can alleviate much stress and many family squabbles about what you leave behind.

A letter of intent is an important piece of your overall estate plan and should be written with the help of an attorney to make sure the letter compliments and does not contradict your estate plan. If you would like help creating your estate plan or a letter of intent, please feel free to contact any of our offices in either New York, New Jersey or Pennsylvania by clicking here or by calling us at (866) 456-9668.

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According to the Alzheimer’s Association, Alzheimer’s disease is a type of dementia that causes problems with memory, thinking and behavior. Symptoms usually develop slowly and get worse over time, becoming severe enough to interfere with daily tasks. Alzheimer’s affects a growing number of people. There are several factors known to play a role in Alzheimer’s. Let’s look at these factors both positive and negative.

Age is one of the biggest factors to consider when discussing Alzheimer’s disease. Symptoms generally begin for most after the age of 65. However, the proteins that damage the brain can begin taking a toll on the patient well before symptoms appear. The Alzheimer’s Association reports that after the age of 65, the risk of Alzheimer’s disease doubles every five years. Alzheimer’s disease is associated with old age, but early-onset Alzheimer’s disease occurs in some people, although it is less common.

Another factor associated with Alzheimer’s disease is genetics. Although family history is not necessary for a person to develop Alzheimer’s, a person with a parent or a sibling with Alzheimer’s disease is at greater risk of developing the disease. If more than one first-degree relative (meaning a person’s parent, sibling or child) has Alzheimer’s, the person is at even greater risk.

There are specific genes that can increase the risk of Alzheimer’s disease. If a person receives a gene from one parent they are at risk, and genes from both parents increase that risk. Although these genes can determine the risk of developing the disease they do not determine that a person will develop Alzheimer’s disease. In some rare cases, there are deterministic genes that guarantee a person will develop Alzheimer’s disease. There are genetic tests that can identify risk genes and deterministic genes for Alzheimer’s. A person can elect to have these tests to determine their risk for Alzheimer’s disease.

Lifestyle can be a great factor in helping to prevent Alzheimer’s disease. Researchers have found that aspects of a healthy lifestyle can help to prevent Alzheimer’s disease. Healthy eating, exercise, and sleep are some lifestyle factors that can be preventative medicine for Alzheimer’s. Exercise can help to increase blood and oxygen flow in the brain and eating a heart-healthy diet also shows great benefit. In addition, strong social connections have been shown to be a preventative factor for Alzheimer’s disease. Remaining mentally active can also help to reduce the risk of Alzheimer’s. Lifestyle is one factor everyone has control over and can go a long way in slowing or preventing Alzheimer’s.

There are other factors that can determine whether or not Alzheimer’s takes hold or not. Socioeconomic factors can determine whether Alzheimer’s takes hold. Recent research suggests that the more higher-level education a person has, the less likely that person is to develop Alzheimer’s. Head trauma earlier in life can put a person at greater risk for developing Alzheimer’s. Race and ethnicity have also been shown to play a role in the risk of Alzheimer’s disease. African Americans and Hispanics are at a greater risk for Alzheimer’s disease according to research. Gender also plays a role in Alzheimer’s disease. Research indicates that because women are likely to live longer than men, they are also more likely to develop Alzheimer’s disease.

Although we know some of the factors associated with Alzheimer’s disease, there are still many mysteries surrounding it. There is no known cure for the disease and treatments can only slow the progression of Alzheimer’s. With this information, it is important to take control of the risk factors you are able to and be fully aware of early warning signs. Being armed with good information can help to slow or prevent Alzheimer’s from taking hold.

If you have any questions about something you have read or would like additional information, please feel free to contact any one of our six offices by clicking here or by dialing (866) 456-9668.

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According to the American Psychological Society, elder abuse is the infliction of physical, emotional/psychological, sexual or financial harm on an older adult. Elder abuse can also take the form of intentional or unintentional neglect of an older adult by the caregiver. Elder abuse has a variety of causes. It is important that family members and caregivers of senior adults be aware of the causes of elder abuse in order to prevent abuse and keep senior loved ones safe and secure.

Elder abuse can occur for a variety of reasons and complex issues. Family stressors are one of the reasons elder abuse occurs. Family members who are charged with caring for a senior family member can often become stressed and run-down dealing with the demands of caring for their loved one. In addition, these family members often feel isolated and do not take the time to recharge. These factors can lead to elder abuse. A violent family past can also continue to hold on to family members and this can lead to elder abuse. Financial burdens of a multigenerational household can also lead to financial elder abuse.

Caregiver stress can lead to elder abuse. Caregiving can create stress for the caregiver and the care recipient. This stress can lead to potentially harmful situations for the senior adult. If the caregiver is caring for a person who is sick or physically or mentally impaired, this can lead to stress that would cause a caregiver to abuse the care recipient. The caregiver can feel alone or helpless. Caregiving can lead to emotional and physical stress and exhaustion. These feelings can be overwhelming and may lead to elder abuse.

Certain societal issues can lead to elder abuse. Often senior adults are viewed as insignificant or unimportant. This has in many cases lead to the devaluing of this population, making them easy targets from abuse. This can make the senior more vulnerable to elder abuse. This is evidenced by the fact that scams and financial abuse among the elderly population continues to be a major problem.

How can elder abuse be prevented? Education is one way that elder abuse can be prevented. It is important that caregivers and family members be educated about the risk factors and signs of elder abuse in order to prevent it from occurring. It is also important that families and seniors be aware of financial scams that target the elderly in order to prevent seniors from being taken advantage of financially.

Respite care is also an effective way to prevent elder abuse. There are adult daycares and respite care agencies available to provide care for a few hours a week to take stress off of family members or caregivers. Respite care is especially important for those caring for patients who suffer from Alzheimer’s disease or dementia or are severely disabled. This gives the caregivers time to rest physically, mentally, and emotionally. Along with respite care, it is important for caregivers to maintain social contact and support. Often caregivers are thrust into difficult situations for which they are ill-prepared. They often neglect social interactions. It is important not to neglect these interactions, and even to seek support from groups or people who are in a similar caregiving situation. This can help to deal with stresses in caregiving.

Counseling is another option for preventing elder abuse. Caregivers and families alike can benefit from counseling. Counseling can help families deal with past issues, as well as dealing with the emerging stress of caregiving.

Knowing the causes of elder abuse and methods of prevention can help keep elders safe. Family members and caregivers should know and be aware of these. Elder abuse is a major problem and solutions must be found to protect our seniors.

If you have any questions about something you have read or would like additional information, please feel free to contact Faloni Law Group at any one of our six office locations by clicking here to send us a message or by calling us at (866) 456-9668.

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This is a common question we hear. Read on for information to help figure out whether you need a trust and, if so, what kind fits your specific situation.

For example, maybe you have a disabled child and you want a trust to permit that child to inherit without losing government benefits. Maybe your own or your spouse’s health is heading into difficulties, and you can foresee eventually needing long-term care benefits. Trusts can avoid an expensive, public, and lengthy probate process before your beneficiaries can inherit after you pass. Or, you might be in the classic “trust fund” situation, where you’re concerned that your children won’t be able to manage money wisely.

All these are excellent reasons to consider a trust. But what kind of trust? A quick count shows there are at least thirteen different varieties. Which one is best suited to your needs? Call us.

Here’s the basic idea behind trusts, to help you understand why you might or might not need one.

Think of a trust like a treasure chest. You originally bought property or earned money in your own name. You then transfer those assets into the trust’s name – into your treasure chest, in other words. The trust treasure chest becomes a legal entity separate from you, which now holds your property in its, and no longer in your, name.

Then you identify people who will occupy the three roles involved in managing trust property. First, you are the grantor, or settlor, or trustmaker – all those words mean the same thing, the “you” in this case. Second, you appoint a trustee. That person or entity is responsible for managing trust assets and following directions contained in the trust document. Third, you decide whom you want to receive trust assets – your beneficiary or beneficiaries, in other words.

In legal terms, a trust is a fiduciary agreement among you the original property-owner, your trustee, and your beneficiary. The trust document contains instructions for what you want to be done with trust property, both for how you want it invested and, also, for how you want trust assets to be distributed when you pass. Trusts are, thus, a highly efficient hybrid between a power of attorney, an asset-management vehicle, and a last will and testament, all rolled into one legal entity and document.

There are two basic kinds of trusts to understand before they split off into their thirteen-or-more different flavors: revocable or irrevocable trusts.

A revocable trust can be thought of like the treasure chest with the open lid. As a grantor/settlor/trustmaker of a revocable trust, you can get at trust assets freely.

You yourself can also occupy all three roles in a revocable trust – grantor, trustee, and beneficiary. If need be, you can also tinker with trust terms, by freely amending them to change the directions, beneficiaries, or trustees. Or, you can revoke the whole thing. Before that point, though, the trust document will be there to take care of everything you want it to.

If you should meet with an accident and lose capacity, the terms of your trust will designate a person to step in on your behalf and, thus, avoid the need to go to court to get a guardian for you. The trust will also direct who inherits, thus keeping your affairs private and out of probate court. This feature is especially important if you (formerly) and then the trust (after you created it) owns real property in various states. The savings in court costs in that situation could be significant.

This is the trust for you if you’re seeing the need for Medicaid long-term care benefits in your future, or you work in a field where suits are common, such as owning a small business or in the construction industry.

The disadvantage to an irrevocable trust, however, is that you will be sacrificing all or almost all control over trust assets, unlike in the revocable-trust situation. Once an irrevocable trust is established, you as a grantor/settlor/trustmaker cannot directly alter the terms and, generally speaking, your access to trust money is restricted or entirely precluded – as is required in order to enjoy the potent benefits of this kind of trust.

Think of an irrevocable trust as being like the treasure chest with the locked lid. Your trustee – who generally cannot be you – is the one with the key. You yourself can no longer reach your assets. This relinquishment of control is necessary to shelter your assets from creditors, or to protect your assets when entitlement to government benefits would otherwise require you to spend almost all you own first.

There are ways to draft an irrevocable trust carefully, so you can still exert your will over how assets are to be used. Just as in the revocable situation, you can impose conditions that must be met before a beneficiary can receive funds. You can designate how trust income is to be used for specific purposes like college tuition, business start-up, or travel. You can also authorize a person or entity as “trust protector,” who can alter trust language, correct drafting errors, or create a new similar trust if the law changes.

And there you have the basics. Now you’re ready to decide whether you need a credit shelter trust, or a charitable trust, or a qualified terminable interest trust, or a blind trust, or – just come see us to figure out all the rest!

Some sophisticated trusts do convey tax benefits, but, for the most part, IRS considers revocable trusts to be invisible. You as grantor/settlor/trustmaker will still pay tax on the revocable-trust income, albeit at your individual rate and not at the prohibitive trust rate.

As for estate taxes, trusts have no effect – but, at least regarding federal estate taxes, those are currently moot for most people. They are not incurred until the value of the estate exceeds $11.4 million as of 2019. Some states do impose estate and/or inheritance taxes; for those states, please consult this website.

Also, keep in mind that revocable trusts provide no protection against creditors. If you lose a legal action, a judge can force you to change the beneficiary of your trust to the winner. Irrevocable trusts are free from that kind of interference.

Still, irrevocable trusts must be established long before you run into that kind of trouble. If you create such a trust while credit problems are looming or have already arrived, you risk that your trust will be undone as a fraudulent conveyance.

Consult lawyers like us, who have experience in trusts and estates. Custom-constructing a treasure chest to fit your specific needs is a job for our specific skills.

You can get in touch with the Faloni Law Group at any one of our six locations by sending us a message here or by calling us at (866) 456-9668.

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