New York Estate Planning & Elder Law Blog

The Truth About Medicaid “Estate Recovery” Concerns

Published on: January 29, 2014 | by Ettinger Law Firm

The New York Medicaid system is the primary source of funding for many seniors in need of long-term care at nursing homes. Medicare does not cover these extensive stays, and the out-of-pocket costs are tremendous. As a result, many seniors enroll in the program to pay for their care.

Payments for long-term care make up a sizeable part of the entire Medicaid budget. As a result, policymakers are often looking at ways of cutting expenses or funnelling more money into the program to pay for those in need. One way that Medicaid law has accounted for ths is via a Medicaid estate recovery program. The basic idea is that the state can re-coup portions of the funds spent on an individual under Medicaid after that person’s passing. This takes the form of the state receiving a portion of the decedent’s assets.

The laws regarding Medicaid estate recovery are quite complex, with exceptions depending on surviving spouses, dependent children and similar details. But, under current rules,recovery may be made on “assets passing under the terms of a valid will or by intestacy, and any other real and personal property and other assets in which the decedent had any legal title or interest at the time of death…”

Is There a Future in Outsourcing Elder Care?

Published on: January 28, 2014 | by Ettinger Law Firm

A somewhat bizarre story out of Europe is leading a few elder care experts in the United States to question whether “shipping away” seniors may be part of the future of long-term care for some families.

As reported by the BBC, one adult daughter in Switzerland ignited an ethical debate recently by deciding to send her mother to a long-term care home in Thailand for support. The daughter explained that her decision was based on both her mother’s specific condition and financial realities. The 91-year old mother apparently suffers from severe dementia, and is unable to remember much of anything about the present. In addition, the cost of care in Switzerland was incredibly high–similar to that in New York–while Thai care was far more affordable. The daughter felt that her mother could receive better services in Thailand where she now lives with a group of other Swiss and German seniors.

A Wave of the Future?

Understanding Social Security Benefits for Seniors

Published on: January 27, 2014 | by Ettinger Law Firm

The words “Social Security” remain synonymous with retirement benefits for seniors. Earlier generations grew up with the understanding that Social Security would provide an income net in their golden years, allowing a modest but safe retirement. However, the current generation does not have nearly the same picture of the system. Political debates are daily filled with arguments about the “impending” collapse of the system and the bare bones support given to those on the program.

For many New Yorkers, Social Security represents only a small part of their retirement plans. Still, considerations must be given in estate planning to when one should begin collecting Social Security. There are different options for taking early withdrawals, regular withdrawals, or delaying payments for potential benefit down the road.

In general, payouts range from 75% of “entitled benefit” for payments at age 62; 100% of benefits of age 66; and 132% of benefit at 70. Lawmakers are frequently discussing changes to this scheme, particularly in light of rising life expectancies, and so it is critical to be aware of the potential alterations down the road.

Did You Prepare for That?

Published on: January 24, 2014 | by Ettinger Law Firm

Screenwriter and director Woody Allen once said, “There are worse things in life than death.” Becoming incapacitated and unable to make medical treatment decisions for yourself may be one of those things. The case of Terry Schiavo is a perfect example of the problems that can arise when one does not plan for incapacitation. Following Mrs. Schiavo’s hospitalization and being found incapacitated, an emotional battle erupted between Mrs. Schiavo’s husband and her family over whether she would continue to receive life-sustaining treatment.

Good estate planning is all about preparing for the unthinkable. While a will or trust addresses what happens once you die, what about if you become incapacitated and unable to make your own medical decisions?

The Health Care Proxy – The Unsung Hero of Estate Planning

New York Medicaid “Look-Back” Period & Proper Records

Published on: January 22, 2014 | by Ettinger Law Firm

The price of nursing home care in New York is staggering. It is not uncommon for a stay to cost upwards of $15,000 – $20,000 per month. This is a burden that many New York seniors can not afford to pay. After all , many local residents are only living on small fixed incomes, and coming up with $180,000 – $240,000 per year to live in a skilled nursing facility is unthinkable.

For most resident the only alternative is support via the New York Medicaid system. But residents can usually only qualify for Medicaid if their non-exempt assets are “spent down.” In our state, the allowable amount of total assets is only $14,550. There are complex rules about what assets count toward this amount, but a NY Medicaid lawyer can explain whether things like a long-time family home can be saved or if retirement accounts must also be drained.

Look-Back Period

Do-It Yourself Estate Planning Problems: Transferring Real Estate

Published on: January 16, 2014 | by Ettinger Law Firm

There are some tasks where the “do-it-yourself” approach makes sense. This includes tightening a leaky pipe under the sink or changing the headlight bulb on your old car.

With those tasks, it is clear right away if your skills were up to the challenge and you did it correctly. If the sink still leaks or the light is still out, then you know that your efforts failed and you may need to call in a professional.

But there are some challenges where this “safety net” does not exist, and where do-it-yourself attempts can cause serious, irreparable harm. That is certainly the case with estate planning. Crafting a plan to transfer assets and save on taxes is delicate in that the only time when it will be used is at the very moment when it cannot be changed–after a passing. In other words, there are no “do overs” with estate planning, and so it is essential to have the aid of an experienced estate planning lawyer when making decisions about these issues.

Disorganization & IRA Inheritances

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

Many New Yorkers invest a sizeable portion of theirs assets into IRAs–retirement accounts to fund their golden years after their work life is over. Of course, no one knows exactly what their future holds, and so it is common for IRAs to contain significant funds upon one’s passing. Deciding who will receive those assets is a critical part of estate planning.

Unfortunately, as discussed in a recent Forbes article, sloppy planning on that front, which leaves designated beneficiaries in the dark, may ultimately cost those beneficiaries their inheritances.

Make Your Wishes Known

Avoiding Senior Isolation: The Julie Harris Case

Published on: January 14, 2014 | by Ettinger Law Firm

Elder law and estate planning often involve overlapping issues. This is not just because seniors are those in need of elder law support (like Medicaid planning) and also the one’s most likely to think seriously about estate planning. Instead, issues connected to securing proper senior care and thriving in one’s golden age can impact how inheritance and asset transfer matters are handled upon death.

Most notably, Will contests and other disputes after a passing are far more likely if the elder caregiving process was filled with confusion, anger, and disagreement.

Take, for example, the case of famed actress, Julie Harris. Harris was prolific in her many working years, starring in hits on Broadway, in television, and movies. Over her nearly sixty year career she won awards from virtually every major body, culminating in being named a Kennedy Center Honoree in 2005.

Favorable New York Estate Tax Laws on the Horizon?

Published on: January 13, 2014 | by Ettinger Law Firm

New York State, known as one of the heavier tax-imposers in the country particularly when it comes to estate tax, may soon be more appealing to retirees. New York may be following on the heels of the federal government’s revamped estate tax codes, which raised exemption amounts to levels that effectively omitted the vast majority of individuals and families from an Uncle Sam estate tax hit. The New York State Tax Relief Commission issued a December 2013 report that proposes changes in 2014 to lower the highest estate tax rate and raise the exemption amount to the same levels as that imposed by the federal government.

The Potential for Major Estate Tax Relief

The federal government and seventeen states impose taxes on estates upon the death of the individual. Each exempts a certain amount of an estate’s net worth from these taxes, although these amounts differ state to state. Thanks to the passage of the American Taxpayer Relief Act of 2012, starting in 2013 the federal government began operating under new rules for estate taxes that significantly increased the exemption amount and provided that this value would be indexed each year for inflation.

AARP Comment on Upcoming State of the State Address

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

Today, New York Governor Andrew Cuomo will deliver his 2014 “State of the State” address. Just like the more well-known “State of the Union” address that President Obama will deliver later this month,the purpose of the event is for the Governor to lay out his vision for the upcoming year. It is intended to be a starting point in policymaking, usually outlining the issues that the Governor will attempt to advance within the state legislature in the upcoming session.

Earlier this week, the New York State AARP Director, Beth Finkel released a statement sharing information about what the advocacy organization hoped to hear included within the address. In particular, the statement discusses the policy issues that are likely to affect older New Yorkers. Considering the critical role that state policy has on so many elder law issues, from New York Medicaid to nursing home quality, the issues to be addressed her should be on the radar of most New York families.

Relevant New York Policy Issues