New York Estate Planning & Elder Law Blog

Minnesota Case Emphasizes Important Trust Management Lessons

Published on: February 21, 2022 | by Ettinger Law Firm

In a recent opinion, a Minnesota Appellate Court rejected a petition to revise a trust’s terms to permit the early distribution of trust assets to beneficiaries. The court also rejected a request by the petition for the trust to pay attorney’s fees and held that the litigation was neither necessary nor existed for the benefit of the trust. This opinion functions as a reminder of the high threshold that a person must overcome when beneficiaries attempt to revise a trust’s distribution terms.

The Court’s Decision

In Skarsten-Dineman v. Milton, a trust settlor established a revocable naming his six children as the primary beneficiaries following his death. Assets were to be passed to the man’s children until three of them had passed away then the trustee was to end the trust and pass on the principal equally divided to the surviving children.

Riverside v. Snukst: A Lesson on How to Avoid Trust Disputes

Published on: February 21, 2022 | by Ettinger Law Firm

In the recent case of Riverside County Public Guardian v. Snukst, a California appellate Court resolved an issue involving the Medi-Cal program, which is California’s version of the federal Medicaid program. The program is overseen by the California Department of Health Services. In Riverside, the Department of Health Services pursued payment from a revocable inter vivos trust for the benefits provided on behalf of a person during his life. After the man’s death, the probate required the assets in the revocable inter vivos trust be passed on to the sole beneficiary instead of the Department of Health.

The Court of Appeals determined that federal and state law involving revocable inter vivos trusts required the Department of Health receive funds from the trust before any distribution to the beneficiary. Subsequently, the judgment was reversed and remanded.

For trusts to work as a person wants, the trust must avoid future disagreements and disputes among those impacted by the trust’s terms. This article reviews some of the best things that you can do to avoid trust disputes.

Lessons from Heiting v. the United States: Utilizing Claim-Of-Right Deductions

Published on: February 21, 2022 | by Ettinger Law Firm

In the recent case, Heiting v. the United States, an appellate court denied a claim-of-right deduction in accordance with Section 1341 of the Internal Revenue Code. The case originated from an effort by a taxpayer to receive a tax refund from the Internal Revenue Service. Following a denial of the refund by the Internal Revenue Service, the taxpayer initiated a lawsuit pursuing a tax refund of the taxes paid on an unauthorized stock sale made by the grantor trust.

Claim-of-Right Deductions

The claim of right deduction is a regulation that governs how income recognition is time. The law decides when income is taxed instead of whether it can be taxed. The regulation results from Congress’s implementation of an annual accounting period. If a person who pays taxes receives earnings under a claim of right and no restrictions exist regarding the disposition, the individual has received income to which he or she is required to return. This is true even though the person may claim that he or she has no entitlement to retain the funds.

Federal Agency Increases Visibility about Fines Faced by Nursing Homes

Published on: February 21, 2022 | by Ettinger Law Firm

The federal department tasked with overseeing nursing homes throughout the country recently announced it is revising its policy and will now publicly post details online about all fines received by care facilities regardless of payment status.

This new policy’s announcements occur during a period of increased criticism due to the Centers for Medicare and Medicaid Services (CMMS) Care Compare website. The agency describes its website as existing to provide American citizens with details regarding matters of the level of care at nursing homes.

Changes to Nursing Home Fines

Court’s Expansive Interpretation of Abuse Act Widens Protection for Elder

Published on: February 21, 2022 | by Ettinger Law Firm

As 2022 begins, one court case highlights the role of the Elder Abuse Act as well as the prevalent nature of elder abuse cases litigation involving trusts and estates. In the Ring case, an appellate court considered a loan scheme utilized to empty equity from a house retained as part of an estate proceeding through probate.

Even though a loan was withdrawn by a person acting in the role of the estate’s personal representative, the court held that the representative could pursue a claim of elder abuse connected to the loss of the representative’s interest in relation to the estate.

The Basis of the Case

Making the Most of Estate Planning in 2022

Published on: February 12, 2022 | by Ettinger Law Firm

While some people anticipated otherwise, 2022 started without any new federal regulation or tax changes addressing estate planning. As proposed legislation passed through the legislative process in 2021, major potential changes to federal estate and gift tax were dropped. These potential changes included a decrease in the estate and gift tax exemption as well as the elimination of a step-up basis.

Furthermore, no reports exist that any changes will be made any time soon. This is not a guarantee, though. Potential changes can emerge at any point in the future. While no changes are looming, it’s worth noting that one substantial change will occur in a few years when in 2025, the federal estate and gift exemption will be reduced to $5,000 per person.

Positive Changes to Estate Planning This Year

Taking the Time to Review or Create an Estate Plan

Published on: February 12, 2022 | by Ettinger Law Firm

Each year, it’s important for anyone interested in planning for the future of their assets to either create or revise their estate plan. Taking the time and including loved ones in estate planning discussions is the best thing that you can do to avoid conflict or estate planning disagreements.

Estate planning involves planning for the use of your assets after you become incapacitated or pass away. While many people think that estate plans are written in stone, this is not the truth. In actuality, various life events including births and divorce should lead people to review and ultimately revise the terms of their estate plan.

Acknowledge What You Own

Avoiding Undesirable Estate Planning Situations

Published on: February 12, 2022 | by Ettinger Law Firm

TV shows often depict unpleasant estate planning situations that can arise including a deceased person leaving assets to a former spouse. While these situations often do not occur in the way depicted on TV or film including the recent Netflix film I Care A Lot, a former spouse could end up receiving assets from your assets or other undesirable situations can occur if you are not careful.

For a large number of people in New York as well as the rest of the country, estate planning documents including wills and trusts are a person’s final communication with their loved ones as well as the rest of the world.

Make Sure to Revise Your Estate Plan

How to Help an Elderly Loved One Without Overstepping Boundaries

Published on: February 12, 2022 | by Ettinger Law Firm

New variants of COVID-19 including Omnicron and most recently IHU have led many people to prolong social distancing. Understandably, this extended isolation has had a detrimental impact on the mental health of many elderly adults. While you understandably want the best for your loved one, it’s critical to approach discussions about care with the utmost respect for your elderly loved one’s independence. This avoids not overstepping your elderly loved one’s boundaries.

Decide If Your Family Member Needs Assistance

One of the best places to start is to create a mental checklist of what you should examine about how your elderly loved one lives. Some of the most important details you might decide to examine include:

Center for Medicaid Services Revised FAQ

Published on: February 12, 2022 | by Ettinger Law Firm

At the beginning of January 2022, the Centers for Medicaid and Medicare Services revised the organization’s “Frequently Asked Questions” sections. This FAQ addresses the agency’s Nursing Home Visitation Guidance.

The revised FAQ emphasizes that visitation must be allowed at all times and states that visitation is essential for all residents. The FAQ also acknowledges that previous limitations on visits led to a decline in the physical as well as psychosocial health of residents.

The Primary Updates