NY Elder Law

Be Aware of Potential Pitfalls with Joint Bank Accounts

Published on: May 20, 2011 | by Ettinger Law Firm

Opening up a joint bank account is one of the first things that some area seniors and their loved ones consider when they begin seriously analyzing their need to conduct New York estate planning. Providing a child or other trusted relative access to one’s finances is often the easiest way for a potential victim of elderly financial exploitation to provide an extra set of eyes on their finances. With many unscrupulous individuals willing to prey on vulnerable community members for their own financial advantage, some protection is better than none.

However, as was discussed in a March New York Times blog post, the joint bank account option is typically a dangerous and inadequate means of protecting a senior family members assets.

The joint bank account can create problems for both the senior and the co-signer. If for some reason the co-signer has financial problems, that individual’s creditors may be able to go after the senior’s account, regardless of the elder member’s connection to those debts. These accounts also include a right of survivorship, which entitles the family member who joins in the account to retain the proceeds following the older family member’s death. The potential for complicated family disagreements around that issue are clear and should be avoided.

Fortunately much more comprehensive, tailored, and effective means of protecting and preparing an estate are available. For example, a New York elder law attorney would be able to explain that a more logical solution may be for a family to create a durable power of attorney. This legal instrument often provides more balance to fill the needs of an aging senior–this option comes with both rights and responsibilities for the family members involved.
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Disability Planning from the Elder Law Perspective

Published on: March 2, 2011 | by Ettinger Law Firm

By Michael Ettinger, Esq.

A power of attorney will assist you in the event of possible physical incapacitation.

This means someone else can handle your legal and financial affairs that might require your physical presence, such as a real estate closing or refinancing. Later in life, it is imperative that you have your own plan for disability because

How Gifts of Money Can Affect 2011 Medicaid Eligibility for Nursing Home Care in New York State

Published on: February 14, 2011 | by Ettinger Law Firm

Medicaid Supervisor for Ettinger Law Firm, Elizabeth Schalk, has been reviewing Medicaid applications for over fifteen years. Having worked in this capacity for a nursing home and an elder law estate planning law firm, Schalk has gained valuable insight and experience from counseling New York State residents in various counties about receiving Medicaid assistance.

“The most frequent thing I see is when someone’s mom or dad is sick and s/he knows it will be a short time before his/her parent will have to go into a nursing home. All of a sudden, money gets transferred out of the sick parent’s resources. The thinking behind this is that that this will make his or her parent eligible for Medicaid to pay for nursing home costs. Nothing can be further from the truth. In fact, these kinds of “gifts” can cause a delay in Medicaid benefits.”

When a person transfers assets and then receives or applies for Medicaid-covered nursing home services, the local New York Department of Social Services ”looks back” at financial transactions made within 60 months or five years from the first date on which the person was subsequently institutionalized and applied for Medicaid coverage.

Grandparents raising Grandchildren

Published on: September 17, 2010 | by Ettinger Law Firm

The recession has caused a dramatic new development in child rearing. According to a 2009 Pew Research Center study, 2.9 million children were being raised primarily by their grandparents in 2008 – up 6% from 2007 and 16% from 2000. The census data attributes financial problems as the chief cause of the sharp rise in seniors now having to assume more “traditional” child-rearing duties.

These duties will cause a real strain on seniors’ budgets. Child care costs, like more groceries, clothes shopping, health care and activities can add up quickly. Depending on the length of time a grandparent will now be asked to assist in raising his/her grandchild, these expenses over time could be substantial.

These seniors may find themselves needing to readjust their time and money to accommodate their new and perhaps unexpected responsibilities.

Protecting Assets With Caregivers Agreements

Published on: August 18, 2010 | by Ettinger Law Firm

by Bonnie Kraham, Esq.

Family members overwhelmingly provide the care for elderly and disabled loved ones at home. Although a labor of love, taking care of ailing loved ones also has a market value, meaning that caretakers can be paid as a way to protect assets.

Through the use of a Caregivers Agreement, also known as a Personal Services Contract, the disabled or elderly person can transfer money to family members as compensation rather than as a gift. Gifts to family members made in the last five years before applying for Medicaid to pay for nursing home costs disqualify the applicant from receiving Medicaid for a certain period of time, known as a “penalty period.”