The Connection Warren-Watchung Edition-Sept/Oct/Nov 2019

SEPT/OCT/NOV 2019 THE WARREN-WATCHUNG CONNECTION PAGE 27 Sponsored by: GAIL L. ABRAMS, ATTORNEY AT LAW 908-753-4156 or register online at www.estateattorneynj.com 7 Johnston Drive • Watchung, NJ 07069 Limited Seating, Call to Reserve Seats As Soon As Possible CALL TODAY! ESTATE PLANNING WORKSHOPS Tuesday, Sept. 17, 2019 Grillestone 2377 Route 22 West Scotch Plains, NJ 07076 Lunch:11:00am Prompt! Thursday, Sept. 19, 2019 Chimney Rock 342 Valley Road Gillette, NJ 07933 Lunch:11:00am Prompt! Tuesday, Oct. 22, 2019 Grillestone 2377 Route 22 West Scotch Plains, NJ 07076 Lunch:11:00am Prompt! Thursday, Oct. 24, 2019 Chimney Rock 342 Valley Road Gillette, NJ 07933 Lunch:11:00am Prompt! TOPICS • Don’t leave your family Lost in the New Tax Laws! • The government has changed the Tax Code, your Estate Documents need to be reviewed! • Learn how Powers of Attorney and a Living Will can protect you if you become Incapacitated. • Learn about the consequences your heirs face if you do not have a Living Trust or a Last Will and Testament. • Learn How to avoid the Double Taxation of your IRA & Retirement Accounts and pass your assets to your Heirs. 2019 ESTATE PLANNING WORKSHOP ESTATE TAX LAWS HAVE CHANGED!!! LEARN ABOUT THE CRITICAL UPDATES AND HOW THEY AFFECT ALL TRUSTS, WILLS, POWERS OF ATTORNEY AND MORE!!! You are Cordially Invited to attend this Free Workshop Many seniors unfortunately add an adult child to their bank account for ease and convenience so the children can help with money management and payment of bills. However, while joint accounts can be con- venient, they can pose serious conse- quences in some families. Discussed below are some reasons why an adult child should not be on an account with their parent. Money that is held in a joint account belongs to both account holders equally. The account holders can withdraw all or some, spend, or transfer money in the account without the consent of the other person on the account. What about your Will and the way you want assets to be distributed when you pass away? When one account holder dies, the money in a jointly owned account auto- matically belongs to the other account holder without passing through your Will or Trust. In my practice, many children will keep the money in this account for them- selves and not share it with the rest of the heirs. The unintended effect of joint own- ership is that the parent could be disinher- iting his or her other children from this asset if they are not also named on the bank account as owners. Additionally, not all children have their par- ents’ best interest at heart. Quite often chil- dren will remove assets from the account and not tell the parent. There is nothing to prevent that child from removing the entire balance of the account. What about your daughter-in-law or son-in- law? They could have undue influence on your child. If your child gets a divorce, 50% of your shared bank account may be con- sidered a marital asset and be shared with the ex-son-in-law or ex-daughter-in-law. Additionally, if your child becomes disabled or needs assistance, the joint account may make your child ineligible for benefits because this account will show up as an asset. Quite often in our practice, we will get a question as to whether a parent should add their child to the title on their homes. This presents negative tax consequences should you sell the house or pass away. Families do not realize they have created a tax burden where if they had just gotten a legal con- sultation, they would have avoided a tax nightmare. What are some simple solutions? A Durable Power of Attorney can provide the same kind of access to a bank account with sig- nificantly greater, more powerful protec- tions in place for a parent than a shared bank account would offer. In addition to creating a Power of Attorney for Assets, everyone should also have a Living Will, a Power of Attorney for Health Care to pro- tect them and their assets should they become ill and unable to care for them- selves or their property. Everyone should also have a Last Will and Testament or a Liv- ing Trust based estate plan, depending upon their needs. This is a complex area of law and these documents should only be prepared by a qualified estate-planning attorney. Gail L. Abrams has been in prac- tice for 25 years and specializes in Estate Planning. The Law Office of Gail L. Abrams offers free workshops on these topics. Please visit Gail Abrams web site at www.estateattorneynj.com for dates and locations. Reservations are required! Reservation line is (908) 753-4156. Here is a list of upcoming workshops that the Law Office of Gail L. Abrams offers: Estate Planning Workshops in September and October Tuesday, September 17th and Tuesday, October 22nd at the Grillestone 2377 Route 22 West, Scotch Plains NJ 07076 11:00am Prompt! Lunch Will Be Served! Thursday, September 19th and Thursday, October 24th at the Chimney Rock Inn 342 Valley Road, Gillette, NJ 07933 11:00am Prompt! Lunch Will Be Served! SENIORS SHOULD AVOID SHARING JOINT ACCOUNTS OR ASSETS WITH THEIR ADULT CHILDREN By: Gail L. Abrams, Attorney At Law theconnectionsnj.com