New York Estate Planning & Elder Law Blog

Estate Plans Should Contemplate Pets

Published on: March 1, 2022 | by Ettinger Law Firm

Many people find great enjoyment in sharing their life with a pet. Data reveals that about 90.5 million families in the United States own pets. For both people who are natural caregivers and those who require a pet’s companionship, pets can introduce a great sense of belonging to people. The consideration of pets is routinely overlooked when anticipating death and incapacity, though.

Consider Your Pet’s Specific Needs

When creating a trust or last will and testament, the needs of specific animals should be considered. Passing on responsibilities associated with small pets that live indoors is substantially different than requesting someone watch barnyard animals. You should consider who might be able to act as a future caregiver for your pet. Remember to be realistic about how this person will likely handle taking care of your pet.

Estate Planning Lessons from Rain Man

Published on: March 1, 2022 | by Ettinger Law Firm

The 1988 film Rain Man was directed by Barry Levinson and is cited by many people as a favorite film. Rain Man tells the story of Charles Babbitt (Tom Cruise) who finds out that his estranged father has passed away and left all of his large estate and its associated assets to the other son, Raymond (Dustin Hoffman), who is an autistic savant. Only after the father passes away does Charles Babbitt learn of Raymond’s existence. Rain Man shines some interesting issues in regards to estate planning and many people have questions about how the movie would play out in real life.

In the real world, Sanford Babbit would likely meet with his estate planning attorney before his death. Sanford would likely inform his lawyer that he has two children at this point. Sanford would also likely tell the lawyer that he had placed his autistic son in a private care facility for individuals with intellectual disabilities. Sanford would also likely express a legitimate concern about Raymond and his desire to make sure that his son can always live at this facility and remain protected.

A knowledgeable attorney would likely recommend that Sanford establish a revocable trust. Following Sanford’s death, the trust would continue for the benefit of Raymond, while also potentially making annual distributions to Charlie. Following Raymond’s death, the trust would then be distributed to Charlie. Sanford would also likely execute a no-content clause stating that if Charlie seeks to argue or place aside the trust or Sanford’s will or disrupt Raymond’s situation, annual distributions to Charlie would be discontinued and the trust is passed from Charlie to the facility when Raymond passes away.

How the Pandemic Impacted What Technology Is Used by Seniors

Published on: March 1, 2022 | by Ettinger Law Firm

The COVID-19 pandemic has changed people’s lives in countless ways. One impact the pandemic had is convincing elderly adults to become nimble with technology. In recognition of this, a growing number of tech companies are focused on catering to the needs of older adults.

For many elderly adults, using technology to shop and interact with others is an efficient way to combat isolation as well as loneliness. To marketers, wealthy elderly adults are an attractive demographic which is why they’re tailoring more services to them.

One recent news report even named the elderly as a popular consumer trend in 2022.

Answers to Commonly Asked Medicare Home Health Questions

Published on: March 1, 2022 | by Ettinger Law Firm

The Center for Medicare Advocacy recently published a document answering various questions about Medicare’s home health benefits. In addition to a document answering frequently asked questions, the Center also published recordings of two webinars, “Medicare Coverage of Home Health Services”, which reviews the eligibility basics for Medicare coverage of home health services.

What Do Home Health Agencies Do?

Medicare’s home health benefits are known as the Mediacertified home health agencies. These benefits have been approved by Medicare to provide the home health services that Medicare covers. The agency has agreed to receive payment from Medicare. Additionally, Medicare only pays for home health services administered by home health agencies that are Medicare-certified.

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