Jane M. Fearn-Zimmer, Esquire is a partner at Archer Brogan, LLP. She dedicates her practice to serving clients in the areas of elder and disability law, special needs planning, asset protection, tax and estate planning and estate administration.
At Fearn Law, LLC, in Marlton, New Jersey, https://fearnzimmerelderlaw.com/, we love our dogs! So, in honor of National Dog Day, we are marking the Dog Days of Summer by sharing some of our pups’ photos.
Noel, One Precious Pup!
Nothing compares to a dog’s unconditional love, boundless energy and entertaining antics. Did you know that dog ownership may even delay cognitive decline in solo agers?
Solo agers, also known as elder orphans, are individuals who living alone without care from a family member or partner. A recent study of more than 7,000 participants aged fifty (50) years or older, positively correlated pet ownership with slower rates of decline in verbal memory and verbal fluency in solo agers. See Yanzhi Li, Ph.D., Wanxin Wang, Ph.D., Liwan Zhu, Ph.D. et als., Neurology, published online December 26, 2023, https://pubmed.ncbi.nlm.nih.gov/38147332/.
How Can a Pet Trust Help Elder Orphans and their pets?
Solo agers (and other pet owners) can ensure a life long stream of treats, and continuity of care upon the owner’s disability or death, with a pet trust.
A pet trust is a legally enforceable agreement that ensures the pet is cared for if its owner becomes incapacitated or passes away. The solo ager, or other pet owner, establishes the trust by signing a trust document and funding the trust. The trust appoints a caregiver for the pet, states where the pet will be cared for, and nominates a Trustee, who is the person responsible for managing the trust investments and trust distributions to pay for the pet’s comfort and care. The grantor, who establishes the trust, can provide specific care instructions, and through the trust’s terms, can designate back up caregivers.
Why a Pet Trust Gives More Protection Than a Note or a Will
This structure and funding can provide the pet with more protection than a note to a family member, which may not be legally enforceable. Under N.J.S.A. 3B:3-22, there is a ten-day waiting period after the date of death. The waiting period must expire before a decedent’s Last Will and Testament can be probated in the Surrogate’s Court. In addition, a Will only takes effect after death. For more information about the probate process in New Jersey, see the very helpful probate guide available online at /https://co.burlington.nj.us/DocumentCenter/View/15397/Surrogate-Probate-Guide.
During the ten (10) day waiting period for probate, the former pet owner’s estate cannot be probated. if the pet owner had a general durable power of attorney, this document expires with the pet owner’s death. This creates a void of authority. Without a pet trust (or an informal, and unenforceable arrangement), no one has legal authority to care for the pet. Fortunately, a well-drafted and properly signed and witnessed pet trust is a good solution for a seamless transition in care. It’s also a good idea to keep a notebook and an old school or an electronic folder with notes on your pet’s care, vaccinations, medications and preferences. If opting for the electronic version, be sure to provide the Trustee and the pet caregiver with the digital username and account passwords, and any other information needed to access the electronic documents, including any dual factor authentication.
For questions about estate planning for you and your pets, contact Jane at Fearn Law, LLC at (856) 938-8578 or by email at fearnzimmer@gmail.com.
You’re Invited: Lunch & Roundtable on “Solo Aging with Success”
Navigating long-term care decisions can feel daunting—especially for those who are single or divorced. But with the right guidance, you can take control of your future and protect your independence.
Join us for a complimentary lunch and an insightful roundtable discussion featuring four seasoned professionals from the long-term care, legal, and financial fields. Together, Linda B. Goldberg, MSW LCSW, CDP, Lotus Elder Care & Counseling, Salvatore J. Cocivera, CFP, MSFS, CDFA, CRCP, President and Chief Compliance Officer of CORA Capital Advisors, Helene Weinstein, Regional Director of Strategic Partnerships South Jersey, Allaire Health Services and Marlton, New Jersey elder care attorney, Jane M. Fearn-Zimmer, Esquire will share practical strategies and essential steps to help you age with confidence and clarity. To attend, RSVP by September 12, 2025 to Hweinstein@allairhs.com, call Helene at (609) 929-7968, or scan the QR Code on the event flyer.
Veterans serve tirelessly to protect our country and earn valuable educational benefits through their service. A recent SCOTUS decision explains how some veterans with separate and qualifying military service periods can accrue and combine educational benefits under two programs, to maximize their educational benefits.
Did you know that veterans with multiple qualifying service periods can combine educational benefits under two programs to receive up to 48 months of Veterans Administration educational benefits, even though each program separately provides for up to 36 months of benefits?
A recent SCOTUS decision confirmed that veterans with separate and qualifying military service periods can accrue educational benefits under both the Montgomery GI bill and the post-9/11 GI Bill. They can combine their benefits under both programs, subject to a total cap of 48 months of educational benefits. Rudisill v. McDonough, Secretary of Veterans Affairs, 601 U.S. ___ (No. 22-888, April 16, 2024).
These educational benefit programs for veterans are summarized in the table below.[1]
Montgomery GI Bill Act of 1984 (Active Duty)
Post 9/11 Veterans Educational Assistance Act of 2008
Who is eligible
service dates from 1985-2030
Active-duty service of at least 36 months (for 100% benefit) on or after September 11, 201
What it covers
Monthly stipend of up to $2,358 per month
In-state tuition for public universities Private tuition and fees up to $27,120.05 Monthly housing allowance $1,000 annual book stipend One-time relocation payment
How The New SCOTUS Decision Can Help Qualifying Veterans.
Example. Joe Rogers (J.R.) enlisted in the United States Army in 2000. J.R. served honorably for 8 years, in three different periods of military service.
J.R.’s first military service period began in 2000. He served in combat in Iraq and Afghanistan. He was injured in the line of duty and earned a bronze star.
J.R.’s service qualified him for up to 36 months of educational benefits under the Montgomery GI Bill. After his second tour of duty, J.R. went back to school, used 25 months and 14 days of his Montgomery GI Bill benefits, earned an undergraduate degree, and graduated in 2007 with a college degree.
J.R. re-enrolled in the Army and served for a third period. He then was accepted to Yale Divinity School, to become an Army chaplain. Due to his multiple service periods, J.R. is also eligible for benefits under the post-9/11 GI Bill. If he wishes, J.R. can opt to switch to the post-9/11 GI Bill benefits to finance an additional 22 months and 16 days of graduate school, which is the unused portion of his 48 months aggregate cap under both the Montgomery GI Bill and the Post-9/11 GI Bill. See Rudisill v. McDonough, supra. He is not limited to 36 months of benefits under only one program. A copy of the Rudisill decision is available online at 22-888 Rudisill v. McDonough (04/16/2024) (supremecourt.gov)
Jack and Jill are healthy and in their sixties. Jill’s friend’s husband has Alzheimer’s Disease and dementia. Jill’s friend spent hundreds of thousands of dollars in long-term care costs at the private pay rate, before qualifying her husband for Medicaid. Jill’s friend had a life estate, and now Jill and Jack are convinced that they need one, too.
Giving Away a Remainder Interest is Like Having Major Surgery or Getting a Tatoo.
Personally, I have nothing against medically necessary surgeries and high-quality body art. However, just because your friend has one, doesn’t mean that you need a life estate. It’s almost never that simple. To determine your best strategy, a seasoned elder law and estate planning lawyer will gather the important facts and assess the client’s objectives and wishes.
Jack and Jill have a beautiful home that they want to protect for each other and for their adult children. They might transfer their home into an irrevocable five-year Medicaid trust. That is a trust that Jack and Jill cannot undo and to which they have no ability to receive the income or the principal of the trust. If Jack or Jill should later wish to qualify for Medicaid to pay for long-term care, neither can have any ability to take the property or its income back out of the trust under any circumstances that could reasonably transpire under the terms of the Trust Agreement.
Often, homeowners don’t feel comfortable giving up control over the family home to a Trustee, who is often a financially responsible adult child. If Jack and Jill don’t want to relinquish control over the home, retaining a life estate and deeding the remainder interest in the home to their adult children may be another option for them.
What is a life estate?
A life estate is the right retained by the owner of the home to continue using and occupying the home, for the rest of the life of the owner. The owner remains responsible for the carrying costs and maintenance on the home during the life tenancy. The owner typically gives away a remainder interest. Upon the death of the life estate holder (who is referred to as the life tenant), the life estate which they held during lifetime, expires with them.
Advantages of Life Estates
Life estates can be a strategy to allow a surviving spouse in a second marriage to stay in the marital home after the death of the first spouse, and while also ensuring that the biological children of the predeceased spouse will ultimately inherit the house. A life estate may also be a way to provide a home for a dependent adult child upon the death of the parent. However, if the dependent adult child is not a financially capable person, a trust may be a better option. Depending on the circumstances, an irrevocable trust, a revocable lifetime trust, or a testamentary trust for a special needs or dependent child, with or without a life estate, may be a more appropriate solution.
Sometimes, life estates can be beneficial in Medicaid planning because they are generally not subject to a Medicaid estate recovery upon the death of the life tenant. In some cases, a parent may consider purchasing a life estate in a child’s home and residing in the child’s home for at least a year.
If the life estate is retained in the home owned by the life tenant, and the life tenant gives away a remainder interest, the life tenant can retain control over their right to stay in their home for the rest of their lives. Unlike with a 5 year Medicaid trust, the life tenants don’t have to worry about someone else (i.e., their Trustee) selling their home against their wishes. As the life tenants, if the home in which they hold the life estate is their primary residence and they are then living in the home, they can continue to receive the senior real property tax rebate (NJ Division of Taxation – Senior Freeze (Property Tax Reimbursement) | Eligibility Requirements (state.nj.us)) and if applicable, they can also continue to receive the veteran’s exemption for real property taxes on the home. New Jersey State Veteran Benefits | Military.com.
Capital Gains Income Tax Savings with Life Estates
As far as capital gains income taxes are concerned, if Jack and Jill sell the home during their lifetime and they lived in the home as their primary residence for at least two of the five years prior to the sale of the home, they can take claim the IRC 121 capital gains exemption for gains from the sale of a principal residence. If Jack and Jill are married filing jointly, this could allow them to legally exempt up to $500,000 in net home sale proceeds from long-term capital gain income taxes, which are typically taxed at either the 15% or 20% rate, with the 15% rate being most common. Topic No. 409, Capital Gains and Losses | Internal Revenue Service (irs.gov).
Problems with Life Estates
However, there is a major downside to the use of life estates in Medicaid planning. To return to Jack and Jill’s situation, if Jack and Jill hold back a life estate and their house is sold during their lifetime, they are entitled to the portion of the house sale proceeds corresponding to the value of their life estates. this means that if Jack or Jill needs care in a nursing home, their portion of the house sale proceeds is an available resource to them and must be accounted for in any Medicaid spend down. What typically happens with the sale of a home subject to a life estate during the five-year Medicaid lookback period is that the life tenant must spend down his or her or their portion of the net home sale proceeds.
Another drawback of the life estate is that if the remainder interest holder (typically, the adult children of the life tenants) have issues with poor credit, bankruptcy, divorce, substance abuse or gambling problems, then they would not be suitable remainder interest holders, due to the concern that their remainder interest could be taken into consideration in the adult child’s divorce, or liened to satisfy a judgment against the adult child.
Alternatives to Life Estates
An alternative to a life estate retained by the ill spouse is to simply transfer the deed into the name of the healthy spouse. This strategy can avoid Medicaid estate recovery (or a Medicaid lien) on the home after the sick spouse qualifies for Medicaid and subsequently passes away.
A life estate may not make sense if the home is going to be sold during the lookback period, if the home is not the primary residence of the life tenant, or if the proposed remainder interest holders have financial or addiction issues.
If the real property in question is a vacation home or a rental property, other options may include a limited liability company with an irrevocable assignment of the limited liability company interest to an irrevocable trust, or a qualified personal residence trust. The appropriate strategy will depend on the use of the property and the goals of the family in question.
In conclusion, just because your friend has one, doesn’t mean that a life estate is the best option for you. The takeaway is that there is no one-size-fits-all Medicaid plan and a life estate is not always the best solution. For a personalized assessment of your elder care planning challenges, contact Jane at Fearn-Zimmer Elder Law (fearnzimmerelderlaw.com or telephone number (856) 938-8578.
What happens when someone dies without a Will in New Jersey? Unless the individual signs a Will, he or she will have an intestate estate. That is, the individual’s future estate will not be governed by a Will. For the reasons discussed below, an intestacy (or an estate estate) often means confusion and problems.
A Will can actually save you money.
“When I pass away, I want my heirs to fight with each other and the tax authorities about my estate.” Said no one caring, ever. An intestate estate can be fraught with hidden risks. Here’s why that is, and what you can do to avoid leaving your heirs with a mess.
Compared to New York and the nearby City Philadelphia, New Jersey has “probate friendly” rules of court and readily accessible resources. Throughout New Jersey and especially in Burlington, Camden and Gloucester counties, the Surrogate’s Courts are well-run government offices. The Surrogates’ Courts are typically staffed by very helpful and knowledgeable employees. They can explain probate procedures. Their websites may contain helpful information and forms. A great example of this is my home county of Burlington’s website: https://co.burlington.nj.us/541/Forms-Documents. “
Intestate Estates are not “probate friendly.”
One would expect an intestate estate administration here in Marlton, New Jersey to be easy. However, the administration of a intestate estate is just as likely to be “probate friendly” as a “friendly divorce” is pleasant. You (or your parent or spouse) should not take intestate succession for $1.
A carefully designed estate plan brings peace of mind and can pay for itself.
Without a Will, there can be uncertainty and discord among relatives. If your adult children, Johnny and Jimmy, can’t get along at holiday dinners, how will they ever agree on how your estate is divided or who gets the family heirlooms? Even if there is family harmony, without a Will, your estate can be at risk, especially if there are minor children or creditors with large debt. For instance, if you pass away leaving a home subject to a mortgage, and your adult heirs do not apply to administer your estate, your mortgage company can. The mortgagor will have an interest in selling the home as quickly as possible to pay off the mortgage, while the heirs living in the home will want to remain in the home. Such a situation can occur if you have an extended illness, and miss several mortgage payments. Why would you want your heirs to face such a situation? To ensure stability for your heirs, it is better to appoint in your Will someone you can rely on to administer your estate.
Having a Will Frees Your Heirs from A Bond Requirement.
Another reason not to take intestate succession for $1 is that your personal representative will be stuck with the probate bonding requirement. Whoever is appointed in an intestate estate, (except for a spouse in a small estate), will probably have to post a bond. While there are some exceptions, such as for a spouse in a small estate, the exceptions are limited. A bond is like insurance. Like insurance, a probate bond has a premium. Without access to the decedent’s finances, the individual applying for appointment will have to pay the bond premium from his or her own personal funds and seek reimbursement from the estate later on. If the individual seeking appointment had a criminal conviction (even in the distant past), or poor credit, getting bonded can be a problem.
It may be possible to obtain a court order waiving the bond requirement, however, as with any court proceeding, there will be additional costs. Such costs can include probate and court filing fees, attorney’s fees, and mailing costs. If a court order is sought to waive the bond requirement in an intestate estate, delays will also result due to the period of notice that must be given to all other interested parties, which can include creditors, the other Will beneficiaries, and in the case of a charitable request, the New Jersey Attorney General’s office. With a valid Will in place, you can save time, money and agita, for your heirs. It is far more cost-efficient and quicker to avoid these hassles by having your Will prepared properly with a responsible personal designated as the Executor of your estate and a provision in your Will waiving the bond requirement.
Without a will, or with an inartfully drafted Will prepared by a layperson, there can be uncertainty and even litigation, over who will plan the funeral and how the decedent’s debts, expenses, and taxes (such as Inheritance taxes) will be paid and how money will be invested for a minor child. Without a Will establishing a minor’s trust, property left to a minor is required to be deposited with the Surrogate’s Court, in the Surrogate’s Intermingled Trust Fund (SIFT). In case you are not familiary with the SITF, here is some background information. Guardianship of Minors | Gloucester County, NJ (gloucestercountynj.gov).
A Will Can Protect Minor and Disabled Beneficiaries.
Funds left to minors through intestate estates or through beneficiary designations are invested at bank rate in the Surrogate’s Intermingled Trust Fund (SITF). Neither the minor nor the minor’s parents have any ability to select more productive investments. The funds will generally not be released without a court order until the minor claims the funds upon attaining the age of legal majority. Allowing an inheritance by a minor to be held in the SITF does protect the funds for the child until child attains the age of majority. However, a testamentary trust or facility of distribution provision in your WIll can enable the funds to be invested at higher rates of return than bank rates and can facilitate distributions for the benefit of the minor for purposes such as health, education, maintenance and support, without the cost, delay and uncertainty inherent in applying for a court order.
A Will Can Help Manage Digital Assets.
A properly crafted Will and estate plan can also protect digital assets. These can include assets such as software, business and professional websites, blogs, spreadsheets, presentations, photographs, social media accounts, blockchain technology, online ledger accounts, Cryptocurrency (such as bitcoin, Ethereum, ETR, and Litecoin) and online stores. Many of these assets can be monetized and/or have quantifiable value. Without a Will with digital asset provisions, access to the decedent’s digital accounts and private keys can be denied or delayed absent appropriate documentation on behalf of the estate. This can leave the administrator in the difficult position of having to pay death taxes on assets that there is no or delayed access to, forcing the administrator to come up with another source of cash, or worse, having to deal with a death tax audit.
A Will Can Help Prevent Probate Litigation.
When an individual or a family member drafts a Will without an attorney’s review, this can be an invitation for probate litigation. For an interesting article on what can happen when an estranged relative challenges a will, see Can estranged relatives contest your will after you die? | Legalzoom. The good news is that you can minimize the risk of probate litigation with a properly prepared estate plan prepared by a competent attorney.An experienced. knowledgeable and caring estate planning attorney can help you legally avoid, minimize or plan for death taxes, including the New Jersey Inheritance tax.
A tax savvy estate planning attorney can also help ensure that digital assets are properly planned for and that tax-efficient beneficiary designations are in place for your qualified retirement accounts. This is important to maximize income tax savings for the heirs.
These are just a few of the many reasons why estate planning is important to avoid the hidden perils of intestacy. For more information and solutions, For more information, visit the firm’s website at Fearn-Zimmer Elder Law (fearnzimmerelderlaw.com) or call to schedule an appointment at telephone number (856) 938-8578, or email Jane at fearnzimmer@gmail.com.
