Elder law estate planning

Qualifying for Medicaid to Pay for Long-Term Care

Published on: June 1, 2023 | by Ettinger Law Firm

Spend-down. Look-back. Penalty Period. Uncompensated Transfer. These are just some of the terms Medicaid uses to determine eligibility for long-term care coverage. Medicaid is a combined federal and state program that pays for long-term care at home (community Medicaid) or in a nursing facility (institutional Medicaid). Asset, income and gift rules vary for community Medicaid versus institutional Medicaid.

To qualify for community Medicaid, an individual cannot make more than about $1,700 per month and cannot own more than about $30,000 in assets. A married couple cannot make more than about $2,300 per month and cannot own more than about $40,000 in assets. Applicants can “spend down” excess income to the allowed amount by paying for medical expenses.

To qualify for institutional Medicaid, an individual can keep $50 per month (the excess goes to the nursing home) and cannot own more than about $30,000 in assets. For married couples, the spouse at home can keep about $3,700 per month and can own between about $75,000 and $130,000 in assets. If the spouse at home makes more than $3,700 per month, she may have to contribute some of the excess to the spouse’s cost of care. For married couples, the residence, up to value of about $1,000,000 and one car are exempt (not counted as assets). Everyone can have a burial trust worth up to $1,500 or any amount in an irrevocable pre-paid funeral trust.

Reasons to Revise Your Estate Plan

Published on: May 19, 2023 | by Ettinger Law Firm

Estate planning is not written in stone. Instead, estate plans should be revised and reconsidered when various major life events occur.

Marriage may or may not involve a prenuptial agreement. Regardless, it may call for adding your new spouse’s name as beneficiary on insurance policies, on a will or trust, power of attorney, health care proxy and deeds.

Serious illness requires that you give thought to appointing someone to handle your affairs and making sure they have the documents needed to discharge the responsibility. You may want to add a second person to share the load or as a back-up. It is also the time to consider asset protection strategies should long-term care be needed one day, either at home or in a facility. One of the biggest mistakes we see, as elder law attorneys, is that the family becomes so focused on the medical side of things that they fail to focus on the legal side until it is too late.

The Five Steps to an Elder Law Estate Plan

Published on: March 22, 2023 | by Ettinger Law Firm

Elder law estate planning provides for (1) your care in the event you become disabled as you age, and who will be in charge of that care, and (2) the passing of your assets on death to whom you want, when you want, the way you want, with the least amount of taxes and legal fees possible. These are the five steps to creating such a plan.

Step One: Understanding the Family Dynamics. Clients often overlook the inestimable value of getting to know the family dynamic. We are firm believers that the social goes first and the legal should serve the social. Too often it is the other way around. Once we understand who’s who and everyone’s interpersonal relations with each other, we are far better able to craft a plan that will work socially as well as legally. The failure to address the social aspects has led to many a plan tearing the family apart.

Step Two: Reviewing the Client’s Assets. IRA’s and other “qualified” assets (i.e. tax deferred) are treated quite differently, on death or disability, from “non-qualified” assets. The determination of the amount and value of all assets, who owns them, and whether they have named beneficiaries are of the utmost importance in planning correctly, including saving legal fees and taxes.

In Wills We Trusted

Published on: January 19, 2023 | by Ettinger Law Firm

Ask most people if they’ve done their estate planning and a common answer is, “Yes, I have a will.” However, estate planning is not just a plan for death. It’s a plan for life that addresses what happens if you become disabled. About half of us will eventually becoming disabled. You can choose ahead of time who will be in charge of your affairs if you become disabled through a power of attorney, health care proxy, and a trust.

A will cannot provide for disability. A will tells the world where you want your assets to go when you die. A will is probated, which means proven, in court, and becomes a public document. Those without their own living trust plan, with their personal choices for who will be in charge if they become disabled, risk getting the state’s plan of guardianship proceedings where the court chooses who will handle your affairs if you become disabled.

Probate court proceedings can go smoothly but they may also be complicated, such as having a special needs child or disinheriting a child. Also, if you own property in another state, a trust makes more sense than a will because you may deed the out-of-state property into the name of your trust, and avoid both a New York probate and a probate in the other state.

2023 Elder Law Estate Planning Changes

Published on: January 6, 2023 | by Ettinger Law Firm

Happy New Year to all!

There have been significant changes in the law in a number of areas as of January 1, 2023.

The gift tax exclusion, which many people still think is $15,000, is now $17,000, up from $16,000 in 2022. Each person may give up to $17,000 to as many people as they want to without incurring any Federal gift tax liability and without using any of their Federal estate tax exemption at death.

Eight Good Reasons to Plan Your Estate

Published on: December 23, 2022 | by Ettinger Law Firm

1. Makes sure your estate goes to whom you want, when you want, the way you want. Most estate plans leave the assets to the next generation outright (i.e., in their hands) in equal shares. However, with a little bit of thought on your part, and some guidance from an experienced elder law estate planning attorney, you may dramatically improve the way your estate is ultimately distributed. For example, you may delay large bequests until children or grandchildren are older or give it to them in stages so that they have the chance to make some mistakes with the money without jeopardizing the whole inheritance. Similarly, you may place conditions on receipt of money such as “only upon graduation with a bachelor’s degree” or “only to be used to purchase an annuity to provide a lifetime income for the beneficiary”. The possibilities, of course, are endless.
1. Allows you to give back to the people and places that have helped you. Again, most people leave their assets to their children in equal shares. Yet time and again we see children who really don’t need the money or, unfortunately, don’t deserve it. Even when they do need and deserve it, there is a place for remembering those people and institutions who have helped make you what you are today.
1. It proves stewardship by showing your family that you cared enough to plan for them. When you put time, thought and effort into planning your affairs it sends a powerful message to your loved ones. You are saying that you handled the matter with care and diligence. This will reflect itself in how the money is received, invested and spent by your heirs.

Deciding Whether Your Senior Loved One Needs an Elder Law Attorney

Published on: June 16, 2022 | by Ettinger Law Firm

Choosing to retain the services of an experienced elder law attorney is not a light decision, but instead is often the result of great consideration. Unfortunately, deciding whether or not to retain an elder lawyer can result in a great amount of uncertainty as well as anxiety for the elderly individual as well as that person’s loved ones. Various reasons exist why deciding whether or not you need an elder law attorney is a difficult situation.

# 1 – Retaining an Elder Law Attorney Makes You Confront Your Mortality

One of the most direct reasons why retaining an elder law attorney is difficult is that it makes the elderly individual confront the fact that he or she will not live forever. Coming to grips with our mortality is a frightening prospect. An elder law attorney can be retained for various reasons including estate planning, which comes with the grim perspective each of our lives will one day draw to an end. Not only is this difficult for the elderly individual, but you also cannot look past the difficult emotions that this brings up in loved ones as well.

Tips on Avoiding Uncertainty about Health Documents While Estate Planning

Published on: May 24, 2022 | by Ettinger Law Firm

Health documents used in an estate planning context are some of the most valuable documents that a person can have. These documents, however, often invite uncertainty because the documents are referred to by various names and one document can be confused for another. When it comes to the subject of estate planning, four primary types of healthcare planning documents exist.

# 1 – Healthcare Power of Attorney

Healthcare power of attorney documents are the most commonly utilized in the estate planning field. These documents are also referred to as healthcare surrogates or medical power of attorney. These documents often exist separately from durable power of attorney documents, which address legal and financial issues. Comparably, healthcare power of attorney documents appoints at least one individual who will function as a healthcare agent. These documents should also address an additional individual who will function as a backup.

Restraining Orders by the Elderly Can Help Avoid Estate Planning Pitfalls

Published on: May 5, 2022 | by Ettinger Law Firm

In some situations, courts throughout the country are able to stop other individuals from altering an elderly individual’s estate plan.

In one recent case, White v. Wear, the appellate court considered the creation of a restraining order blocking the respondent from performing any alternatives to estate plans. The order might preempt estate planning changes and as a result, eliminate a further dispute over the estate planning document.

The man at the heart of the case established a corresponding trust several decades ago with the

Home Care and Hospice Services Still Uncertain about Federal Vaccine Requirements

Published on: November 11, 2021 | by Ettinger Law Firm

Frustration is growing for medical professionals including those who work at hospices as they wait for President Biden to reveal details about how federal regulations for COVID-19 will be enforced.

This frustration is in part driven by uncertainty about aspects like permissible exemptions, testing costs, and the number of worker counts that will be utilized. Until the regulation is published, the country will not be certain about the exact impact on home care organizations by COVID-19 regulations.

The National Hospice and Palliative Care Organization President and CEO have reported that there is widespread concern and that the country continues to collect input about COVID-19 to inform its discussions with the administration to make sure that the requirement is executed in the best possible manner.