Macri & Associates, LLC NJ Elder Law/Estate Planning Attorneys | Serving Morris County, Essex New Jersey 2026-06-22T23:32:03Z https://www.mchughandmacri.com/feed/atom/ WordPress On Behalf of Macri & Associates, LLC <![CDATA[3 compelling benefits of funding a special needs trust]]> https://www.mchughandmacri.com/?p=49768 2026-06-22T23:32:03Z 2026-06-22T23:32:03Z 1. The ability to retain state benefits If the person with special needs eventually receives a large inheritance, that windfall could affect them ineligible for benefits that they rely on for housing, income and medical coverage. Trusts with proper limitations on distributions allow beneficiaries to retain key benefits.

2. Asset protection

Children and other family members with special needs often end up in vulnerable positions if creditors and other interested parties file lawsuits against their caregivers or take legal action during estate administration. The loss of resources due to creditor claims can leave people with medical challenges in an especially vulnerable situation. Trusts can help protect resources from creditor claims and probate complications.

3. The support of a trustee

When a parent or other caregiver dies or becomes incapacitated, a person with special needs might struggle to manage their own affairs. The trustee named to manage the resources in a special needs trust can provide both practical and social support for a beneficiary struggling with abrupt changes. Creating a special needs trust can provide parents and caregivers with a sense of security and can offer lasting benefits. A lawyer can help to ensure that a special needs trust has adequate funding and structure that reflects the needs of the beneficiary and their caregivers.  ]]> On Behalf of Macri & Associates, LLC <![CDATA[How can adult children prepare for making elder care decisions?]]> https://www.mchughandmacri.com/?p=49767 2026-06-15T17:05:49Z 2026-06-15T17:05:49Z learn about your parent’s wishes while they can still communicate them to you.

Start with a calm conversation

One of the first things you should do is to have a calm conversation with your parents. Discuss their finances, healthcare plans and living arrangement wishes. While these might be sensitive topics, they’re likely going to be easier to discuss when there’s not an emergency looming. You may need to take notes so you can ensure you remember what was discussed and what your parent wants.

Get the plan in writing

There are certain documents that you should ensure are in place while your parent still has the mental capacity to get them done. These include things like a will, power of attorney designations and advance directives. All of these documents will allow your parent to outline their wishes and who they want to assume responsibility in re: ensuring that they’re upheld.

Determine ideal living conditions

It can be difficult to think about your parent having to go into a long-term care facility, but it’s best to discuss that possibility before the decision has to be made. Discussing where your parent wants to live if they can’t remain at home may be beneficial as a result. These conversations aren’t easy, but they can help you to plan for the future while giving your parents a meaningful say in what happens next.]]> On Behalf of Macri & Associates, LLC <![CDATA[Who may serve as a New Jersey conservator or guardian?]]> https://www.mchughandmacri.com/?p=49766 2026-05-27T01:14:35Z 2026-05-27T01:14:35Z Many people can pursue legal authority Current state rules require that the courts give priority to the person selected by a struggling adult in cases involving conservatorship. However, the courts may determine that the proposed conservator cannot fulfill that duty effectively. They also cannot defer to the wishes of an incapacitated person in a guardianship scenario. The courts can also appoint a spouse, adult children, the next of kin of the struggling individual or any other suitable party as conservator or guardian. In some cases, the courts may choose a professional who has held a caregiving role or someone working for a care facility where the individual currently resides. Especially in scenarios where there have been issues with finances, families may want to act promptly to seek legal authority to prevent those representing medical businesses from pursuing guardianship before they do. Discussing an individual's challenges with a skilled legal team, and learning more about current court rules, can be helpful for those who believe that guardianship or conservatorship might be necessary. An attorney often plays a key role in helping people secure the authority necessary to support someone struggling to manage their resources or consistently act in their own best interests.]]> On Behalf of Macri & Associates, LLC <![CDATA[Who files tax returns during estate administration?]]> https://www.mchughandmacri.com/?p=49765 2026-05-19T10:29:00Z 2026-05-19T10:29:00Z The personal representative usually files the necessary returns In some cases, the deceased person may have a surviving spouse, and they may have previously filed joint income tax returns. Despite their circumstances, their surviving spouse usually does not file their final income tax return. Instead, the personal representative files the last return. Doing so informs the IRS of the individual’s passing and helps ensure the reconciliation of any outstanding income tax obligations while there are still estate resources available to cover their income taxes. If the probate process requires the sale of estate property, the estate may owe income taxes based on the amount of revenue generated through estate sales. Once sale revenue reaches $600, the estate typically needs to report those funds as income and pay appropriate income taxes. Tax returns and other financial responsibilities are a major component of estate administration. Having guidance during estate administration can help surviving family members and personal representatives navigate what is both an emotional and complex legal process.]]> On Behalf of Macri & Associates, LLC <![CDATA[When should you consider a special needs trust?]]> https://www.mchughandmacri.com/?p=49764 2026-05-18T09:43:38Z 2026-05-18T09:43:38Z Protecting government benefits while providing support If your family member receives Supplemental Security Income (SSI) or Medicaid, you have probably discovered how strict the eligibility requirements can be. These programs often have asset and income limits that could disqualify recipients if they receive a traditional inheritance or gift. A special needs trust could help you navigate this challenge. By placing assets into this type of trust, you might be able to supplement your loved one's quality of life without affecting their eligibility for crucial government assistance. The trust can pay for items and services that government benefits may not cover, such as education, recreation, therapy or personal care attendants.

The right time to establish a trust

You might want to consider setting up a special needs trust in several situations. If you are creating an estate plan and have a child or relative with disabilities, now could be the time to explore this option. It might be beneficial not to wait until it is too late to protect their future. Parents and grandparents often establish these trusts as part of their wills or living trusts. This ensures that when they pass away, their loved one with special needs will have financial resources without losing government benefits. You might also want to consider a special needs trust if your family member is about to receive a settlement from a lawsuit or insurance claim. Receiving a considerable sum of money directly could immediately disqualify them from benefits they depend on.

Moving forward with confidence

Every family's situation is unique, and what works for one person might not be the best solution for another. Understanding your options is crucial when making decisions that will impact your loved one's long-term financial security and well-being. Taking the time to explore your options now can provide peace of mind and financial security for your loved one's future. The earlier you start planning, the more options you might typically have available.  ]]> On Behalf of Macri & Associates, LLC <![CDATA[What Medicaid spend-down means for New Jersey families]]> https://www.mchughandmacri.com/?p=49763 2026-04-30T15:43:25Z 2026-04-30T15:43:25Z When an older parent needs long-term care, many families discover that Medicaid has financial eligibility rules. A parent may need help at home, in assisted living or in a nursing facility, but still have too much income or too many countable assets to qualify right away. That is where spend-down planning can come in. In New Jersey, Medicaid spend-down generally means reducing countable resources or applying income toward care in a way that follows program rules. The goal is not to hide money. It is to understand what the rules require before a family makes costly mistakes.

Spend-down is not random spending

A spend-down does not mean giving money away or rushing to empty accounts. In fact, gifts or transfers made without proper planning can create eligibility problems, especially when long-term care coverage is involved. Families often need to sort assets into categories. Some properties may count toward eligibility, while other properties may receive different treatment under Medicaid rules. The home, bank accounts, retirement funds, life insurance and prepaid funeral arrangements may all need review. For older adults and caregivers, Medicaid planning can help connect those financial details to long-term care needs.

Long-term care has its own rules

New Jersey’s long-term care program can cover services at home, in assisted living, in community residential settings or in a nursing home. Financial eligibility is only part of the process. A person may also need to meet clinical requirements based on their care needs. This matters because families sometimes focus only on account balances. Care level, timing, documents and prior transfers can also affect whether an application moves forward smoothly.

Records matter during the process

A Medicaid application can require detailed financial information. Families should expect to gather records before and during the spend-down process. Helpful documents may include:
  • Bank statements
  • Deeds and property records
  • Life insurance policies
  • Retirement account statements
  • Funeral or burial contracts
  • Records of gifts or transfers
  • Medical and care facility bills
Keeping these documents organized can help explain where money went and whether expenses were proper.

Start before care becomes urgent

Spend-down questions often arise during a health crisis, but crisis planning leaves less room for careful decisions. If a parent may need long-term care soon, start by listing assets, income, debts and recent transfers. That first step gives the family a clearer picture of what may count, what may need review and which decisions should not wait until a facility is asking for payment.]]> On Behalf of Macri & Associates, LLC <![CDATA[How do you obtain guardianship of a parent with dementia?]]> https://www.mchughandmacri.com/?p=49761 2026-04-27T09:27:13Z 2026-04-27T09:27:13Z What is guardianship? Guardianship is a court arrangement where a person is appointed to make decisions for someone who cannot make them on their own. When a parent has dementia, the court may consider guardianship if the condition results in a chronic or irreversible lack of capacity in judgment and daily functioning. Depending on what the court authorizes, you may be able to manage healthcare decisions or financial matters. In many dementia cases, the court appoints a guardian for both areas because the condition affects all aspects of decision-making.

What are the legal requirements for guardianship in New Jersey?

In New Jersey, a complaint must be filed with the Superior Court to obtain guardianship. The court requires detailed medical evidence that shows incapacity. These records must include affidavits from two medical professionals who have examined the individual within 30 days of the filing. The filing must also specify whether the request is for guardianship of the person, the estate or both. Additionally, New Jersey requires that you give notice to close family members and other close relatives. This allows interested parties to participate in the process.

How does the court determine if guardianship is necessary?

During a hearing, the court reviews all evidence under a “clear and convincing” standard. This means the proof must show strong and reliable support for incapacity. The court focuses on how dementia affects the parent’s ability to understand decisions, manage finances and meet daily needs. New Jersey law also requires the court to confirm whether less restrictive tools already exist, such as a power of attorney or healthcare directive. In such cases, guardianship may not be necessary. If your parent retains some capacity, the court may grant limited guardianship. Once guardianship is approved, the court issues Letters of Guardianship authorizing you to act on your parent's behalf. This helps ensure ongoing care and protection for your loved one.

Protecting your parent’s well-being

New Jersey courts apply specific standards and require detailed medical and legal review before granting authority. Since dementia cases involve complex considerations, it may be beneficial to seek legal counsel who can help you explore legal options.]]> On Behalf of Macri & Associates, LLC <![CDATA[Why trusts are helpful for your asset preservation plan]]> https://www.mchughandmacri.com/?p=49760 2026-04-08T08:37:00Z 2026-04-08T08:37:00Z Maintaining your long-term financial stability Over time, your assets can become vulnerable to creditors, lawsuits and excessive taxation. You can shield your financial resources from these external liabilities by setting up trusts in your asset protection plan. For example, family and generation-skipping trusts can shelter your assets while ensuring that you can pass on a legacy to your loved ones. Considering this strategy can maintain your financial security now and in the future.

Preparing for future care and support

As you age, you may eventually need home care or to stay at an assisted living facility. Without proper planning, the wealth you accumulated over your lifetime can quickly erode due to these potential long-term care expenses. You can prepare for these future care costs by establishing a Medicaid Asset Protection Trusts (MAPT) or similar protections. A MAPT can protect your property by placing them under the care of your trustee, therefore maintaining your eligibility for government benefit programs. The rules can be complex, but working with a legal professional can help you construct a strategy that meets your exact needs.

Planning for your golden years

You can still enjoy your retirement while securing future care for yourself and leaving an inheritance for your family. Preserving your life savings and property requires careful and advanced preparation. Establishing a trust as part of your overall asset protection plan can be an important first step toward lasting financial security.]]> On Behalf of Macri & Associates, LLC <![CDATA[What taxes apply when passing assets to your children?]]> https://www.mchughandmacri.com/?p=49759 2026-03-23T11:20:18Z 2026-03-23T11:20:18Z Federal estate tax Federal estate tax only applies if your estate exceeds a high threshold, so most families will not encounter it. That threshold sits around $15 million in 2026 under current rules. If your estate falls below that amount, no federal estate tax applies. If it exceeds that level, the estate pays the tax before distribution, which can reduce what your children ultimately receive.

Income tax on inherited assets

Your children may still pay income tax depending on what they inherit. Retirement accounts like IRAs create taxable income when your children withdraw funds. Investment accounts and real estate often receive a step-up in basis, which can reduce future capital gains if they sell. If an asset produces income, such as rent, your children must report that income going forward. So even without an upfront tax, the type of asset you leave can shape the taxes your children deal with later.

Capital gains after inheritance

Capital gains tax usually applies only if your children sell what they inherit. Because of the step-up in basis, they pay tax only on increases in value after the date of death, not on the asset’s full lifetime growth. This can significantly reduce the tax burden, especially for real estate. If the asset continues to increase in value and they sell later, that additional gain can still be taxed.

The part people miss

Even when no inheritance tax applies, the structure of your assets still affects what your children receive and how easily they can access it. Some assets create taxes later, others cause delays and some do not transfer as cleanly as expected without proper planning. A conversation with an estate planning attorney can help you organize things in a way that avoids unnecessary tax issues and keeps the process straightforward for your family.]]> On Behalf of Macri & Associates, LLC <![CDATA[What are your options if a family member refuses guardianship?]]> https://www.mchughandmacri.com/?p=49758 2026-03-12T13:40:27Z 2026-03-12T13:40:27Z When an aging parent or disabled family member in New Jersey needs help managing their affairs, you may assume a close relative will step up to serve as guardian. However, family members sometimes refuse guardianship. If no one agrees to take on this responsibility, your loved one may face serious risks, such as financial exploitation or inability to consent to medical care.

Why family members decline guardianship responsibilities

Guardianship brings major legal duties and personal burdens that not everyone can handle. The guardian must manage finances, make medical decisions and report to the court regularly. Some family members live too far away to do this work. Others feel unprepared to handle complex money matters or medical choices. Courts recognize these as valid reasons to decline.

Other guardianship options when family refuses

New Jersey law recognizes that family members may not always be the best or most willing choice for guardianship. Assembly Bill 4293, introduced in February 2026, clarifies the strict order in which courts grant Letters of Guardianship when relatives decline to serve:
  • Spouse or domestic partner who was living with the incapacitated person
  • Family heirs or close friends when the spouse cannot or will not serve
  • A trusted neighbor or professional guardian who handles complex cases
  • A bank trust department or corporate fiduciary
  • The Office of the Public Guardian when no one else is available
Guardianship involves a complex legal process, which is why it might be worth considering speaking with a lawyer who can help with securing the necessary documents and filing forms.

Get legal help to navigate guardianship alternatives

An experienced elder law attorney can help you find suitable guardian candidates, file the necessary court petitions and explore whether less restrictive options like power of attorney (POA) might work better for your situation. Family disagreements and refusals make everything harder, but the longer you wait, the more your loved one suffers without anyone legally able to help them.]]>