In view of the repeal of the New Jersey estate tax as of January 1, 2018, as well as the recent significant increases in the federal estate, gift and generation-skipping transfer tax (“GST”) exemptions to $11,180,000 per person, also effective January 1, 2018, many clients should review their estate plans.

A. Formula Gifts in Wills and Trust Agreements. For example, if the estate plan bases the disposition of the estate on the available estate tax exemption and divides the estate into shares, with one share for the spouse and the other share for the family, that plan could now result in over-funding the amount passing to family members other than the spouse, thereby reducing or eliminating the spousal share. In short, if the estate plan is based on a formula gift, whether outright or in trust, or if the plan creates a marital trust and a “credit shelter trust” or “family trust” (sometimes called an “AB trust plan”), the estate plan and documents should be reviewed.

B. GST Exemption Gifts. Similarly, if an estate plan includes a gift based on the amount of the GST exemption, for example, a bequest of the GST exempt amount outright to grandchildren, or to a trust for the benefit of children for life and then for grandchildren, this too could significantly reduce the amount a client may wish to provide for his or her spouse or other beneficiaries.

Years of experience in administering estates have taught us that the best way to avoid litigation after death is to plan during life. We have come to identify several “red flags” that, when not addressed during estate planning, are more often than not resolved in a courtroom. Not only does this mean that a judge, rather than the client, is ultimately deciding how the client’s property is disposed of, but the process can be lengthy, emotional, and expensive. With the possibility that attorney’s fees will be paid before any property is distributed to the family members, the lawyers may become beneficiaries of the estate when it is contested.

Unequal distribution of assets amongst children.

Clients who want to distribute their property to their children unequally are almost always asking for a fight. They may want to do this because they are estranged from a child or because they believe that one child “needs” more than another. The slighted child, however, may not agree with mom or dad’s decision. When this comes as a surprise to a child after the client’s death – and the parent is no longer here to explain the thought process and to act as mediator amongst the children – the slighted child feels like his or her only recourse is to hire an attorney.

Although there is no federal law requiring private employers to provide handbooks to their employees, there are numerous reasons for employers to do so, including:

  • Providing an opportunity to formally welcome new employees, introduce the organization and explain expectations;
  • Grouping various employment policies together in a handbook makes it easier for an employer to ensure that each employee receives copies of all relevant policies;

An advance directive for health care (“Advance Directive”) is a legal document that expresses an individual’s wishes regarding end of life medical treatment, and can include a designation of another person as his or her health care representative.

In contrast, a POLST, Practitioner Orders for Life-Sustaining Treatment, is a health care document that sets forth medical treatment orders.  A POLST allows individuals to work with their medical teams regarding treatment decisions in connection with serious illness.  The POLST form is completed jointly by an individual and a physician or advance practice nurse, expressing the individual’s goals of care and medical preferences.

Unlike an Advance Directive, a completed POLST form is an actual medical order that becomes a part of the individual’s medical record.

Tresa Baldas of Detroit Free Press recently interviewed Kathleen Connelly in reaction to the ongoing investigation of TV Station WXYZ ‘s inadequate response to Anchorman Malcom Maddox allegations of sexual harassment. Kathleen, who specializes in employment law and workplace investigations questioned the TV Station WXYZ’s investigation given the severity of the allegations.

“It appears that the company did not handle this situation properly and perhaps conducted a sham investigation,” said Connelly, who has practiced employment law for nearly 30 years. “In this situation, if the allegations are true … the two-week suspension does not appear to be a sufficient penalty.”

To read the full online article click here.

Although not required by federal or New Jersey law, many employers utilize policies, which govern appropriate dress and grooming standards for employees in the workplace. For example, when attending business meetings with visitors or clients, employers may require that employee attire reflect that of the individuals with whom that employee is meeting. In other circumstances, employees may simply rely upon common sense and good judgment regarding their appearance and clothing in the workplace or employers may choose to give employees examples of what is appropriate and inappropriate attire. In doing so, however, employers need to be mindful of the potential implications under federal laws such as Title VII of the Civil Rights Act of 1964 (“Title VII”), the Americans with Disabilities Act (“ADA”), or state laws like the New Jersey Law Against Discrimination (“NJLAD”).

Specifically, employers need to be aware of the following potential forms of discrimination that that may arise as a result of a dress code policy:

  • Disability: A policy that does not take into account a reasonable accommodation to its dress code for an individual with a disability may lead to claims under the ADA or NJLAD, unless doing so would result in undue hardship.

Workplace harassment remains a harsh and unavoidable reality for employers. Given the recent #MeToo movement, employers can expect to see a continued rise in complaints concerning harassment, specifically sexual harassment. Although no guidelines can define sexual harassment with complete clarity, unwelcome sexual advances, requests for sexual favors, and other physical, verbal or visual conduct based on sex constitutes sexual harassment when:

  1. Submission to such conduct is made either explicitly or implicitly a term or condition of an individual’s employment, or;
  2. Submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting the individual, or;

Bob Anderson, co-chair of Lindabury’s Cybersecurity and Data Privacy practice group, was recently interviewed by Karen Talley of FierceCEO, a publication that is considered a must-read source for running a business. Bob reports to Ms. Talley that “there is a tendency for businesses to not put the emphasis on employees, but they are the greatest vulnerability” and that “most cyberbreaches are caused by employees, inadvertently.”

To read the full article online click here.

Both New Jersey and the Federal government have established laws prohibiting workplace harassment in any form including discrimination that is based on a person’s race, color, religion, sex (including gender identity and pregnancy), national origin, age, disability, genetic information, sexual orientation, or marital status. In addition, these laws prohibit retaliation against any employee who invokes his or her right to a workplace free of discrimination and harassment.

Internal investigations by employers into allegations of unlawful harassment and other workplace misconduct are becoming more and more common in today’s work environment. The practice of conducting workplace investigations is often the best way to avoid litigation, as employees who feel their employers have heard their complaints and taken appropriate action are typically less likely to seek redress in court. In the event an employee does decide to pursue legal action, however, an employer’s internal investigation of a complaint can play a crucial role in developing a comprehensive defense against potential claims of liability.

Solution: Conduct Workplace Investigations In a Timely and Effective Manner to Minimize Risk of Legal Exposure to the Employer.

Liquor licenses are state-issued licenses that enable your business to legally sell alcohol. The laws around liquor licenses vary by state and New Jersey has some of the most restrictive liquor license laws in the nation (along with being some of the most expensive). In New Jersey, the Division of Alcoholic Beverage Control (“ABC”) regulates the sale of alcoholic beverages and the conduct of licensees through the issuance of licenses. There are three types of licenses: manufacturing, wholesale and retail.  The subject of this article is a “33 License” or a Plenary Retail Consumption license (i.e. the license you need for a restaurant or similar.)

New Jersey law grants individual municipalities substantial discretion in passing ordinances regulating the sale and consumption of alcoholic beverages within their limits. The number of 33 Licenses available is determined by a municipality’s population, and may be further limited by the town’s governing body. As a result, the availability of alcohol and regulations governing it vary significantly from town to town. Retail licenses tend to be difficult to obtain. The market is in high demands and because of this 33 Licenses are subject to exorbitant prices if and when they become available. License holders (“licensees”) resell their license on the private market — subject to limitation. A license may only be used within the municipality that issued it originally. Moreover, any sale must be approved by the issuing authority. Here is how to get a liquor license broken down into four steps.

  1. Find the license, for sale on the private market. You will have to enter into a Purchase and Sale Agreement contingent upon successful application to the municipal ABC Board. You will also want to check to ensure the license is in good standing, has been properly renewed, etc. In order to do this you will want to run lien searches, request documentation of renewals, etc.
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