New York Estate Planning & Elder Law Blog

Five Members of Long-Term Care Commission Issue Separate Report

Published on: September 25, 2013 | by Ettinger Law Firm

Yesterday we discussed the release of the federal Long-Term Care Commission’s final report. As mentioned, the major glaring issue with the report was its relative silence on financing solutions for this care. The Commission was made up of individuals with varying interests–from owners to residents–who have very different incentives. Issues regarding payment for long-term care services, particular Medicaid, is always a contentious topic. In that vein, it is perhaps not surprising that the report did not issue conclusive recommendations on that front.

Yet, that did not stop a subset of the Commission from issuing their own dissent which directly addressed the financing issue. A full version of that 17-page alternative report can be read online here.

Alternative Report

Final Report Issued by Federal Long-Term Care Commission

Published on: September 24, 2013 | by Ettinger Law Firm

You may remember that on New Year’s Day of this year, a large piece of legislation was passed by Congress and signed by President Obama. The bill was the one that (temporarily) avoided the fiscal cliff. It was the measure that seemed to permanently set the estate tax rates among other things.

At the same time, the legislation also called for the creation of a Long-Term Care Commission. Comprised of 15 members, selected by both Republican and Democratic leaders, the group was given six months to hold hearings, debate, discuss, and create a report on various issues regarding long-term care nationwide. More specifically, the entity’s specific charge was to “develop recommendations for the establishment, implementation, and financing of a comprehensive, coordinated, and high-quality system that ensures the availability of long-term services and supports for individuals who depend on this system to live full and healthy lives.”

The Recommendations

Do Black New York Seniors Receive Worse Nursing Home Care?

Published on: September 20, 2013 | by Ettinger Law Firm

A new study from researchers out of Rochester, New York took a look at quality of care trends from 11,500 nursing home and compared them with the racial make-up of residents in those homes. The summary finding from the project which is making headlines is that long-term care facilities with a higher percentage of black residents provide lower quality care.

First published this summer is a publication known as Health Services Research, the investigation involved analysis of data related to quality of care as well as financial performance over a five year period (1999-2004). Most information was culled from reports provided by the Medicare and Medicaid programs. Those facilities with zero residents on those programs were not included in the research.

The Connection Between Revenue and Nursing Home Care

Financial Advisors Discuss Ways to Save on Increased Capital Gains Taxes

Published on: September 19, 2013 | by Ettinger Law Firm

Many New Yorkers know that, as part of the federal tax package compromise that was passed on January 1st of this year, the capital gains tax rate was increased. Last year the top rate was 15% but that is now up to 20%. In addition, some individuals will also face a 3.8% investment surcharge tacked on top.

Prudent estate planning always takes tax considerations into account, and transferring assets which have accumulated in value is one of the most important (but trickiest) aspects of the process. As such, it is prudent to closely consider ways to legally save on taxes, particularly considering the new rates.

Forbes on Capital Gains

Home Health Care Workers to Receive Additional Worker Protections

Published on: September 17, 2013 | by Ettinger Law Firm

A growing number of New York seniors in need of caregiving support are opting to stay in their homes, instead of moving into nursing facilities. This is partially a result of Medicaid programs changing to accommodate more at-home caregiving, often saving money and better meeting elderly preferences at the same time.

As a result, more and more attention is being paid to home caregivers. In particular, some are voicing concern about potential negligent care. Obviously, caregivers can fall far short of standards no matter what the setting, from nursing homes to traveling support. One particular concern with home caregiving aides is that, unknown to many, they actually fall under an exempted category in the Fair Labor Standards Act–the federal law which includes issues like the minimum wage, overtime pay, and more.

At least that was the case. According to new rules released today by the U.S. Labor Department, the specific definition of the “companionship exemption” under which these caregivers previously fell will be narrowed. Beginning in 2015, home caregivers will no longer be exempt, leading to significant changes in their employment status and, some hope, the quality of their work.

Huguette Clark Estate Negotiations Fail, Set for Trial

Published on: September 12, 2013 | by Ettinger Law Firm

When most people envision legal trials, the first images that pop to mind involve bizarre crimes or large class action lawsuits. Thanks to movies and television shows, there is an assumption that trials are only for deciding whether someone is going to prison or if a large corporation acted inappropriately and hurt hundreds of innocent community members.

But believe it or not, trials actually stem from far less salacious situations–even disputes over wills and trusts.

$300 Million Estate Fight

Federal Long-Term Care Commission Set to Issue Report

Published on: September 11, 2013 | by Ettinger Law Firm

Advocating for better long-term care is not just a concern of NY elder law attorneys. Policymakers at all levels and of all political persuasions are also keenly aware of the impact that the growing need for long-term care will have on communities nationwide.

There are few challenges more acute than figuring out how to ensure adequate senior care for all community members. As most know, we are on the cusp of a “gray wave” with demographics changes requiring an increased commitment to skilled care and assistance for seniors. The need extends to all facets of elder care, from ensuring there are enough physical spaces for those in need to coming up with ways to pay for the care.

Federal LTC Commission

Tax Evasion Case – Hiding Inheritance from IRS

Published on: September 10, 2013 | by Ettinger Law Firm

One important purpose of estate planning is to ensure that as many assets as possible pass on to friends, families, and charities–instead of Uncle Sam. Using trusts and other legal arrangements to structure an inheritance is a prudent move for all New York families, but particularly those with sizeable assets. Taxes at both the state and federal level can take a significant chunk out of any inheritance. There are many high-profile cases of individual who failed to take advantage of all the planning tools at their disposal, resulting in an inflated tax bill. The estate of actor James Gandolfini’s, settled in New York, is just one recent example of how millions can be lost to taxes.

Illegally Cutting Corners

Unfortunately, some families may be tempted to cut corners and resort to illegal conduct in order to prevent the government from collecting on a large tax bill. The temptation to act in this manner is even higher when prudent estate planning is not conducted at the outset.

Genes & Life Insurance – Brewing Controversy

Published on: September 9, 2013 | by Ettinger Law Firm

Life insurance is a common tool used by New Yorkers to protect loved ones in the event of an uncertain future. At other times it is a useful way to transfer assets to a new generation, often with significant tax benefits. While there are different types of life insurances (term, universal, whole), the basic idea is the same. An individual enters into a contract with the insurance company to send monthly payments (premiums) in exchange for a lump payment to the insured’s beneficiaries in the event of death.

Naturally, the amount that you have to pay in a monthly premium to receive a certain size of lump sum depends on different factors. The life insurance underwriting process is complex, but it usually seeks to evaluate one’s general risk of dying in a certain period. Age is huge factor. It will cost far less for a 20 year to purchase the same value insurance as a 75 year old.

Factors That Can Be Considered

Two More NY Nursing Homes Fined for Poor Care

Published on: September 6, 2013 | by Ettinger Law Firm

Late last month we shared information on New York’s performance in a national Nursing Home Report Card. A non-profit organization compiled the list using a mountain of government data related to staffing ratios, inspection results, and more. Sadly, New York did not come out of the examination looking that great. In fact, the overall state nursing home care was given a grade of F and listed as one of the worst places for long-term care in the country.

Importantly, this condemnation of the state’s general care does not mean that every facility in New York is substandard. There are many very high quality facilities that work diligently to meet the needs of all New York seniors who need assistance on a daily basis.

However, the report is a reminder that there are vast differences in quality between homes. Simply picking any facility will not due. Those who want to guarantee quality support for elder loved ones need to take time to investigate options and make educated choices. Finances often play a role in available options, and so families are encouraged to explore long-term care insurance and similar strategies to ensure resources will be available for this care down the road.