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IN THIS ISSUE
CHANGING BENEFICIARIES
FEDERAL TRANSFER TAX EXEMPTIONS
RETIREMENT PLAN UPDATES
ARTICLES OF INTEREST
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There is a rising tide on the horizon--Solo Agers--that is, people who are over sixty with little or no familial support.
"Solo Agers need to arrange future legal guardianship for themselves - someone who will take over in a fiduciary capacity if they are unable to make decisions for themselves. That person may be a relative or a friend or even a professional fiduciary or private guardian. Of course, everyone needs the legal protection of a health care directive and an estate plan, but Solo Agers have a heightened need to have in place while they are still relatively young and healthy since no adult child will be rushing in from the hinterlands to provide that assistance and guidance." says, Sara Zeff Gerber, Ph.D., the author of Essential Retirement Planning for Solo Agers: A Retirement and Aging Roadmap for Single and Childless Adults.
Many people already understand just how much time and energy goes into supporting an older person, as they are or have been caregivers for their own parents. Visiting to lessen loneliness, monitoring medications, managing finances, or simply providing rides to a house of worship or get groceries--it can be a major time commitment. A Solo Ager needs support systems, with the flexibility to change over time as needs and abilities change. Being a Solo Ager does not have to mean aging alone.
In fact, it is possible to have a higher level of care by relying on an institution such as Garden State Trust Company and our access to caregivers than one might have relying on the support of one individual. Therefore, many of these questions should be considered not only by Solo Agers, but by everyone. To that end, we have put together a slide presentation, Seven Critical Questions For Solo Agers, that addresses many of the issues faced by a Solo Ager. You can find our presentation here, https://gstrustco.com/resources/seven-critical-questions-for-solo-agers/
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ASK GARDEN STATE TRUST COMPANY | |
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Dear Garden State Trust Company,
My lawyer tells me I need a Trustee for my Standby Trust. I found your name on Google and looked you up on BBB. Can you be my Trustee?
Steven G
Dear Mr. G,
Thank you for your question. Garden State Trust Company can serve as Trustee for a Standby Trust. For those readers who do not know, a Standby Trust is a type of living trust that is created for the benefit of a beneficiary or beneficiaries in the future, often activated upon a specific event trigger, such as the incapacitation of the grantor (the person setting up the trust). It is designed to become operational if needed but remains inactive otherwise. This type of trust is usually part of an overall estate plan, with many benefits such as ensuring assets are managed according to the grantor's wishes and keeping financial affairs private.
Your first step in considering Garden State Trust Company as your Trustee is to meet with us in person. You want to meet with the people who will be your trustee to make sure you have a comfort level with those who will be helping you in the future.
Best,
Adam Brower, CTFA
President
Phone: 732-255-5000
Email: abrower@gstrustco.com
2101 Highway 34 South, Suite A
Wall, NJ 07719
HAVE A QUESTION ON TRUSTS, WILLS, OR INVESTMENT MANAGEMENT?
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For general informational purposes only. This information does not constitute legal advice. | |
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In this month's informational article, Changing Beneficiaries, read what happened when a doctor changed his will and then the beneficiary designation on his life insurance policy to disinherit his ex-wife in favor of his three adult children. In another informational article, Federal Transfer Tax Exemptions, read about the new federal estate and gift tax exemption amounts for 2024.
From all of us at Garden State Trust Company we wish you a very Happy, Healthy and Safe Holiday Season.
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On September 5, 2016, Teresa James informed her husband of 13 years, Dr. James Rocconi, that she was leaving him. She filed for divorce three days later. Accordingly, on September 9 Dr. Rocconi changed his will to disinherit Teresa in favor of his three adult children. On October 17, 2016, Dr. Rocconi called Allianz Insurance Company to determine what, if any, insurance policies he had with them, and to remove Teresa if she was a beneficiary of any of them, because she had left him. The call was recorded, so we know that he told the representative "She could have told me that pope left the church and was getting married and I wouldn't have been more shocked."
The representative sent a change-of-beneficiary form via fax, which Dr. Rocconi filled out by hand and returned via fax the same day, removing Teresa as beneficiary. Apparently the insurance company did not record the change, but instead sent a letter to Dr. Rocconi stating that the form was incomplete without his signature. However, no evidence of such a letter was found among his papers.
After Dr. Rocconi's death, the insurance company notified Teresa about the $300,000 death benefit. The children and the estate's executor intervened, claiming that the Doctor had substantially complied with the requirements for changing the beneficiary. The lower court agreed, the Court of Appeals reversed, and the Supreme Court of Arkansas reversed again, reinstated the lower court's decision. "Under Arkansas law, only substantial compliance with the insurance policy's change-of-beneficiary procedures is required." The completion of the faxed form, buttressed by the testimony of Rocconi's lawyer and the recording of his conversations with the insurance company, are sufficient to meet that test.
(December 2023)
© 2023 M.A. Co. All rights reserved.
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Federal Transfer Tax Exemptions | |
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The amounts exempt from federal estate and gift taxes goes up again next year, to account for inflation. The gift tax annual exclusion rises from $17,000 to $18,000. This is that amount that may be given to any one person without the need to file a federal gift tax. There is no limit to the number of annual exclusion gifts that may be made in a year, but the exclusion expires every year. Use it or lose it.
The amount exempt from federal estate tax is $12.92 million for estates of those who died in 2023, and will be $13.61 million for those who die in 2024. Married couples each have an exempt amount, so together they can shelter $27.22 million from federal estate tax if they both die next year. The exemption may also be used for transfers by gift that exceed the annual exclusion amount.
That exemption amount will excuse the vast majority of 2024 estates from worrying about the federal estate tax. Two important caveats apply, however. Those states that still have death taxes (the term includes estate taxes and inheritance taxes; some states have both) typically impose them at much lower wealth levels. Second, under current law the amount exempt from federal estate tax is scheduled to fall roughly in half in 2026.
It's much too soon to stop worrying about death taxes.
(December 2023)
© 2023 M.A. Co. All rights reserved.
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The 401(k) plan contribution limit will increase to $23,000 in 2024, up from $22,500 for 2023. The change was announced on November 1 by the IRS, along with other inflation adjustments noted below.
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Source: Notice 2023-75
(December 2023)
© 2023 M.A. Co. All rights reserved.
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WALL - MAIN OFFICE
732-255-5000
SOUTH JERSEY / PHILADELPHIA REGION
856-281-1300
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LEBANON REGION
908-287-7188
LINWOOD / SOUTH JERSEY REGION
856-281-1300
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Because of the rapidly changing nature of tax, legal or accounting rules and our reliance on outside sources, Garden State Trust Company makes no warranty or guarantee of the accuracy or reliability of information contained herein nor do we take responsibility for any decision made or action taken by you in reliance upon information provided here or at other sites to which we link. ©2023. All rights reserved. | | | | |
