New York Estate Planning & Elder Law Blog

Elder Care Issue: Drug Abuse in Nursing Homes

Published on: July 21, 2014 | by Ettinger Law Firm

This summer, one nursing home settled a massive class action suit against the facility for using powerful and dangerous drugs on its residents without their informed consent or consent from family members. One member of the suit was a daughter whose mother entered the facility for eighteen days for physical therapy for a broken pelvis. The nursing home had given her heavy medication, including many dangerous antipsychotics, and within a matter of weeks she was dead. This class action lawsuit was the first of its kind in the country, and with a growing issue of drug abuse in nursing homes it will most likely not be the last.

A Growing National Issue

Sadly, this case is not an isolated event. Researchers estimate that as many as one in five elderly patients in nursing homes are given powerful antipsychotics and other drugs that are wholly unnecessary. This growing trend comes from a variety of sources, including but not limited to inadequate training of staff, understaffing of facilities, and aggressive selling by pharmaceutical companies. The Center for Medicare Advocacy has been quoted as saying that “The misuse of antipsychotic drugs as chemical restraints is one of the most common and long-standing, but preventable, practices causing serious harm to nursing home residents today.”

Updating Your Estate Plan: Excuses Why People Don’t & Reasons Why You Should

Published on: July 18, 2014 | by Ettinger Law Firm

Most people feel a sense of accomplishment after drafting and executing an estate plan. Afterwards, it is commonplace to file away the paperwork and promptly forget about the documents. The issue in this is that most people’s lives change between the creation of an estate plan, and it will need to be updated accordingly. In fact, recent studies have shown that people at all levels of wealth, including the very rich, have estate plans that are routinely more than five years old.

As some estate planning attorneys have noted, an estate plan is not like a time capsule that should only be opened at a future time. An estate plan needs to be routinely updated as life events occur. You should plan on regularly updating your estate plan every three to five years; however, it should occur more often if major events happen. In some cases, estate plans that have not been updated have led to large, public disputes between family members. These fights have destroyed families as well as the inheritances that they were supposed to have. These situations are even more unfortunate because the vast majority of these disputes could have been avoided if the estate plan was up to date.

Common Excuses Why an Estate Plan is Not Updated

Estate Planning Tips for Business Owners

Published on: July 17, 2014 | by Ettinger Law Firm

Many people, business owners and everyone else, are concerned about the federal estate tax when creating their estate plans. Although the federal estate tax is 40%, it does not apply unless the decedent has an estate worth over $5.34 million, and the estate amount is doubled if the person is married. However, there are other concerns besides the federal estate tax that a business owner should take into account when creating an estate plan.

Other State and Federal Taxes

The estate tax should be the least of a business owner’s worries when creating an estate plan. Before an estate tax is even considered other state and federal taxes are first deducted from a business and the estate. The federal income tax rate on an equity owner of a business can top out at 44.6%. State income taxes compound the issue by charging even more on an equity owner’s share. A business owner should first try and minimize the damage done by income taxes on his estate before dealing with the possibility of an estate tax.

More States Showing Support for Uniform Adult Guardianship Act

Published on: July 15, 2014 | by Ettinger Law Firm

The Massachusetts Senate just passed through a bill adopting the model set of rules for the Uniform Adult Guardianship and Protective Proceedings Jurisdiction Act (UAGPPJA). The bill now goes to the state House of Representatives, and if it is passed then Massachusetts will be the thirty-ninth state in the country to adopt this act. This model set of rules makes it easier for family caregivers to provide care for their loved ones across state lines.

Guardianship

A court will appoint a guardian to a person when someone is incapable of managing personal decisions or property. The guardian then makes decisions about personal property, medical choices, living arrangements, and financial issues. Appointing a guardian in court can be difficult and time consuming; however, they are a great way to prevent elder abuse, neglect, or exploitation.

New Estate Planning Option: Longevity Insurance

Published on: July 11, 2014 | by Ettinger Law Firm

One of the most important parts of elder care is ensuring that you or your loved one is financially secure in later years. A wide variety of financial tools and plans are available to help structure this care for seniors, but as of July a new tool has been introduced for retirement planning that has not been widely available before – longevity insurance.

What is Longevity Insurance?

Longevity insurance is also known as a deferred-income annuity. You pay a lump sum of money as a premium to an insurer in exchange for a lifelong stream of income that begins years later, even as late as your 70s or 80s. Before July, longevity insurance could not be widely used in 401(k) or other individual retirement plans because those types of plans require that the holder start making withdrawals at age 70½. The rules have now been changed that allow workers to purchase these annuities if they use a portion of their retirement money and begin to make withdrawals by age 85.

Walking on the Wild Side: Lou Reed’s Estate Plan

Published on: July 10, 2014 | by Ettinger Law Firm

The late lead singer and guitarist of The Velvet Underground, who later had a decades-long successful solo career, was the man who famously sang “Hey babe, let’s take a walk on the wild side.” He seemed to take that lyric to heart when it came to his estate planning, and his estate is worth more than $30 million.

Lou Reed passed away from liver disease on Oct. 27, 2013 at the age of 71. Recent filings in probate court in Manhattan show that since his death less than a year ago his estate has already earned another $20.3 million. This income has come from his copyright, publishing, and performance royalties as well as other deals that were put together by his longtime manager, Robert Gotterer. Mr. Gotterer is also one of the co-executors of Lou Reed’s estate.

Details of Lou Reed’s Estate

Elder Abuse Shelter Providers to Meet for Conference

Published on: July 8, 2014 | by Ettinger Law Firm

Some of the leaders in providing shelters for victims of elder abuse are meeting for the first time at a conference in an effort to combine forces and give more refuge to seniors in need. Eight shelters have formed an alliance that are meeting in suburban Cincinnati to discuss the growing problem of elder abuse as well as ways to better combat the issue. The shelters in the alliance have been participating in monthly conference calls to discuss their programs, and this is the first time that they will all be meeting in person to talk about their elder abuse shelters. They plan on sharing best practices, are bringing in expert guest speakers, and work together to create an even better network of elder abuse shelters.

Elder Abuse and Prevention

Estimates from leading researchers are that at least two million seniors are abused, exploited, and neglected every year in the United States alone. In addition, nearly everyone agrees that many more cases of elder abuse go unreported or undetected. The number of seniors over the age of seventy is expected to more than double to about 64 million people by 2050. Elder abuse occurs most often at the hands of a family member or other people close to the victim.

Trust Creation: Little Mistakes that Can Cost Big

Published on: July 3, 2014 | by Ettinger Law Firm

If you have accrued some wealth in your lifetime, have a significant life insurance policy, or simply want to look out for the best interests of your children the idea of incorporating a trust into your estate plan may have been suggested. A trust fund places assets into trust, run by an appointed trustee who makes decisions about the investment and distribution of trust assets to its beneficiaries. However, smaller mistakes can be made in the creation of a trust for your children that can cause major problems after you are gone.

Carefully Consider the Trustee

Naming a trustee for a trust fund for your children is different than naming a custodian for their physical care. Consider appointing someone who has financial knowledge and can make wise decisions regarding the trust assets. Also consider naming co-trustees to the fund, thereby creating a set of checks and balances that can preemptively avoid any type of trust abuse.

Lessons Learned from Casey Kasem’s Legacy

Published on: July 3, 2014 | by Ettinger Law Firm

Casey Kasem was known mostly for his long and illustrious career in radio. Almost everyone remembers his years on “American Top 40” or hearing him as the voice of Shaggy in the cartoon, Scooby Doo. However, his final years on earth also left his fans with a cautionary tale about caregiving and the problems that can arise.

During the last couple of years of his life, Casey Kasem’s family was torn about his caregiving needs. On one side were his children from his first marriage, and on the other side was his second wife. Their bickering led to very public court battles, and it culminated in his wife moving Kasem without telling his children of his location. In the end, one of his children was appointed his custodian, and thankfully his entire family was able to see him before he passed.

Family Conflict and Caregiving

Key Estate Planning Questions to Help Avoid Mistakes

Published on: July 1, 2014 | by Ettinger Law Firm

Many people are uncomfortable with the process of estate planning. As a result, people are not always completely forthcoming with their estate planning attorney or do not think through all aspects of their plan. If you are just starting to draft your estate plan or are thinking of revising your current documents, here are some questions to consider that can make the process easier.

· What are your personal goals? Professional goals?

Establishing personal and professional goals can give an idea of how much you will need to live comfortably in your lifetime and how much will be left for your heirs. If you plan on retiring early or need more money for personal, financial, or health reasons an attorney can help you structure your estate plan accordingly. Establishing goals is also a good way to indicate to your heirs what they should expect to receive from your estate.