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One of the more unique estate planning issues arising in recent years relates to “posthumous births.” This refers to a child who is born after one of their parents has already died.

This was always a possibility, as a parent could pass away in the months after a child was conceived by before the actual birth.

Yet, the issue has grown more acute with reproductive technology advances, including tools that allow the extraction and storage of genetic material, combined with in vitro fertilization. Children are now able to be conceived years after one of their parents has died. While the option is available to anyone, families in certain situations are currently more likely to take advantage of the technology, including those deployed in the military and when a partner has a serious medical ailment, like cancer.

The discrepancy in the law related to recognition of same sex unions may lead to some bizarre moves as part of an estate plan. That is particularly true when trying to avoid large tax burdens. For example, ABC News reported last week on a story out of Pennsylvania where a long-term couple decided to have one partner adopt the other to protect their long-term financial interests.

The couple has been together for four and a half decades. Yet, state law does not allow them to marry. As a result, even though they each planned to leave all of their assets to one another in the event of death, they would not be able to take advantage of inheritance tax exemptions for spouses.

One partner explained the situation regarding state inheritance taxes, “If we just live together and Gregory willed me his assets and property and anything else, I would be liable for a 15 percent tax on the value of the estate. By adoption, that decreases to 4 percent. It’s a huge difference.”

It is no secret that the federal budget (and many state budgets) are stretched thin as a result of rising healthcare costs. Medicare and Medicaid obligations make up a significant piece of the pie which has grown in recent years. In fact, the push to expand public healthcare options as part of the Affordable Care Act (Obamacare) was actually done in large part to save costs. That is because it offers the opportunity to provide more preventative care which may result in less expensive emergency services needing to be provided by the government.

It is for the same reason that the U.S. Department of Health and Human Services are working to educate the public on the reality of long-term care. The more preparation by community members, the better for residents themselves as well as public coffers. To help in this effort, the Department created a new website which provides a wide range of information covering different aspects of long-term care.

You can view the website here: www.longtermcare.gov

Many New York seniors who need long-term care are enrolled in the state’s Medicaid program. In many cases the payments are made for care in skilled nursing facilities–traditional nursing homes. However, Medicaid also helps with various other types of care, including some at-home services and medical equipment.

In general, the New York Medicaid program is one of the most expansive in the country, offering a wide range of care options that are not available to those needing assistance in other states. However, that is not to say that the service is without problems. In fact, many have offered sharp critiques of some current practices which may harm those using the program, including many New York seniors.

No Quick Fix

Long-term elder care is one of those tasks that most only think seriously about until it is needed–either for yourself or a loved one. However, as a growing chorus of advocates are sharing, if you wait that long it is probably too late to ensure that the available care is of the best quality and does not break the bank.

To help get your mind thinking about these issues now, the Albany Times Union recently published a report from ElderBranch which shares some basic information about how New York’s elder care system matches up with others across the country. Feel free to view the entire article here.

As many know, New York spends a significant sum of public funds on various programs, including Medicaid, in order to ensure residents have access to the quality services they need, including in old age. How do those significant payments (more than any other state in the country) pay off?