Estates Left Unattended – Part 2
In my post last week I explained that while probating a will is not necessary in each and every instance, when there is a need - because there is an asset that can’t be administered any other way - there is a danger in not attending to this need. The risk is that some or all of the assets can be lost for ever. We see this time and again in our office. Currently we have a case in our office of a client for whom we prepared a will, who then passed away. Her executor, a friend who was also the sole heir of the estate, decided he did not want our help in administering the estate but rather preferred to handle it himself. Except that he didn’t finish the job before he died. The assets included a house and several bank accounts which he did not transfer into his name before he died. He also never paid the inheritance tax that he owed as a Class D beneficiary. By the time his family called us for help it was almost a year after he died. As it turns out, the executor also never executed his own last will and testament so New Jersey’s intestacy laws predetermined which
Estates Left Unattended
When we get a call from family members when a loved one has passed away, they typically ask how quickly they can or need to probate the will or otherwise begin the estate administration process. The act of probating or “proving” the will - presenting it to the county Surrogate and seeking appointment as the executor named in the document - can be done at any time. The actual appointment by the Surrogate cannot be issued earlier than 10 days after death. Sometimes there is no need to probate - or at least there doesn’t initially appear to be a need. That typically can be the case when a spouse dies leaving a surviving spouse. Because many married couples hold their assets jointly with right of survivorship, these accounts automatically pass to the surviving co-owner by operation of law. No probate of the will is necessary. Other assets may have a payable on death (POD) or transfer on death (TOD) designations such as retirement accounts, life insurance policies and annuities. This designation also overrides what is in the will. This can result in many cases where probating the will is not necessary or at least not yet necessary until an account solely in the name of the decedent without
Another Home Based Medicaid Option – Part 3
In the final post of 3, this week I again discuss the Personal Preference Program, a home based Medicaid program. As I explained last week, once an applicant is approved through the usual Medicaid application process, a consultant is assigned to the case to determine a budget that is then used for the services, support and goods that will enable the Medicaid recipient to complete his or her activities of daily living. So what exactly can PPP pay for? It can cover the hiring of individuals to perform personal assistance (ie. a home aide). This person can even be a family member or neighbor. The aide need not be hired thru a licensed home health agency, although an agency can work as well. The program can also pay for cleaning services, errand services, laundry services, equipment, small appliances and technology that increase the Medicaid recipient’s independence. Examples include a microwave oven or a washing machine to name a few. Funds can also be used for transportation of the Medicaid recipient and his or her employees and the purchase and installation of vehicular modifications that are related to achieving accessibility. The purchase and installation of environmental modifications are permitted expenses as well. As with most government programs there are a myriad
Another Home Based Medicaid Option? Part 2
Last week I wrote about another possible home based Medicaid option in New Jersey beyond the traditional one. It’s called the Personal Preference Program or PPP. It gives the Medicaid recipient and his or her family members more control over the type of care the recipient receives. As I stated last week the application process is the same. One must meet the same financial requirements and produce 5 years of records, etc. Proof of the need for nursing home level care is also a requirement, however, once approved an application to the PPP program is made for self directed personal care assistance services. This application triggers a screening process to determine eligibility for the PPP program. Because this is a “self directed” program, meaning there is more autonomy in terms of choice, an authorized representative, who will assist in managing the services for the Medicaid recipient must be interviewed and approved for this role. For example, persons with a violent felony record or allegations of abuse of vulnerable populations cannot serve as authorized representatives. A consultant, who is an employee of a counseling agency under contract with the State of New Jersey or the Vendor Fiscal Employer Agent, conducts this evaluation. The consultant is also responsible for monitoring the care and
Another Home Based Medicaid Option?
In the past year we have probably handled more Medicaid home based applications than in the previous 5 years combined. Much of this has to do with the current pandemic and the reluctance of families to place their loved ones in facilities where maintaining Covid safety is more difficult than in one’s own home. The home based Medicaid program has its limitations. As I typically explain, it tends to be the least comprehensive of the 3 New Jersey programs that cover long term care. Once an applicant is approved, a caseworker evaluates the amount of care needed. Although one must satisfy the requirement of needing “nursing home level” care, on average the home based Medicaid program pays for about 30 hours a week of care. Once that determination is made the Medicaid recipient must then use a Medicaid certified aide which can be difficult to locate. Often families are already using an aide that their loved one is comfortable with. Change is not made easily. In many cases family members are providing much of the care but because they are not Medicaid licensed, they cannot be compensated under the home based program. For some, however, there may be another option. New Jersey has another program called the Personal Preference Program (PPP). It
Remote Notary Revisited
Last year in response to the COVID crisis, first New York and then New Jersey temporarily allowed for the execution of documents that must be signed before a notary to be done remotely. Legal documents such as powers of attorneys and wills could now be signed with a notary looking on via video as long as certain requirements were met such as keeping a recording of the signing. As social distancing and lockdowns became the new normal during the pandemic, relaxing the in person signing requirements was of critical importance in allowing people without important documents in place before the pandemic to execute them and carry on important aspects of their lives or allow designated fiduciaries to step in for them when needed. The temporary change was made by the governor of each state by executive order. Last month, however, Governor Cuomo ended New York’s State of Emergency which also ended the remote notary provisions. The assumption was that Governor Murphy would do the same in New Jersey. So far that has not happened. While Governor Murphy has lifted New Jersey’s public health emergency, the State of Emergency remains in effect and, at least for now, New Jersey continues to allow remote notarization of documents. There has also