New York Estate Planning & Elder Law Blog

New Guide to Senior Financial Exploitation

Published on: December 19, 2012 | by Ettinger Law Firm

ElderCare Locator recently released a helpful new brochure that offers basic (but important) reminders about the need to be vigilant to prevent senior financial exploitation. The guide provides information about the scope of the problem, information on what to do if you suspect financial abuse, and prevention tips. You can download your own copy of the guide by clicking this link.

The Scope of the Problem

Getting accurate information of the significance of the problem is notoriously difficult. The vast majority of these incidents are never reported. In fact, one study found that even seniors who did report the misconduct, later denied ever having been victimized by financial exploitation in follow-up surveys. There remains a cloud of embarrassment, confusion, and shame surrounding these issues. That is unfortunate. The more discussion about these issues between family members, the more likely we are to tackle the problem.

Donor-Advised Funds for Charitable Giving

Published on: December 18, 2012 | by Ettinger Law Firm

The holiday season is a popular time for charitable giving. It is helpful for those considering gifts–particular sizeable donations–to properly think through all of the tax and legal implications. There are smart ways to make contributions and clumsy ways. As always, an estate planning lawyer or similar professional can explain how any such decision is best carried out.

For example, the Wall Street Journal reported recently on the rise of “donor-advised” funds. The use of these tools is likely spurred by two tax uncertainties in the upcoming year. Will charitable deductions on taxes be limited in the future, counseling toward a large gift this year? Will income tax rates increase next year, counseling toward using the deduction next year instead of this year? It is a somewhat tricky problem, as no one knows for sure what lawmakers might decide.

That is where these donor-advised funds come into play. They are accounts managed by national charities and foundations. The basic idea is that a donor can give the gift this year–locking in a tax deduction–while waiting to actual disperse the funds to the charities as they see fit over time. The funds grow tax-free throughout this period.

Consumer Voice Updates on Filial Responsibility Laws

Published on: December 17, 2012 | by Ettinger Law Firm

Few seniors have the resources to pay for long-term skilled nursing home stays. As we have previously discussed, New York maintains one of the highest average cost per day rates at these facilities. For most families, those costs are far more than they are able to pay from their own income and savings. That is one reason why the elder law attorneys at our firm urge consideration of long-term care insurance (LTCI). However, LTCI premiums remain too high for many, and so Medicaid is generally used to provide for necessary care.

Some facilities are actually resorting to another option to ensure they are paid for providing care–getting adult children to foot the bill. Recently, the Consumer Voice–one of the nation’s leading nursing home resident advocacy groups–published information on the use of filial responsibility laws. While enforcement of rules based on these statutes remains relatively rare, some argue that more and more facilities will take a look at pursuing adult children to increase payments.

Local residents should know that New York currently does not have a filial responsibility law on the books. Some neighboring states do have these rules however, including New Jersey, Pennsylvania, Massachusetts, and others. Those with loved ones in facilities in one of those states need to be aware of the possibility of a facility filing suit against an adult child for unpaid nursing home bills.

Legislators Issue Call to Protect Medicare & Medicaid From Fiscal Cliff Talks

Published on: December 13, 2012 | by Ettinger Law Firm

Talks between President Obama and Speaker of the House John Boehner to avert the “fiscal cliff” continue this weeks. While not the only leaders involved in the effort, most disagreement on the issues exist between the President and House Republicans. Some observers are confident that the parties will reach an agreement before the January first cliff. However, members of the public remain skeptical, and many are rightly worried about how the automatic cuts and tax increases will affect them.

New York seniors are likely wondering whether their Medicare or Medicaid support will be changed in any way as a result of going over the cliff or in a compromise to avoid it. While we will not know for sure until things are more settled, some members of Congress recently came forward to issue their support for protecting the full value of the programs.

As reported by Now NY, the group of Democratic Senators and House members held a conference this week arguing that no deal to avoid the cliff should include cuts to Medicare or Medicaid. This is stark contrast to some other policymakers who argue that there is no way to get a deal without actually conceding some budget cuts for those programs.

Face Retirement: Psychology to Spur Long-Term Financial Planning

Published on: December 12, 2012 | by Ettinger Law Firm

Virtually everyone agrees that it is important to invest for retirement, take care of inheritance details, prepare for long-term care, and otherwise plan for the future. But there is a big difference between understanding the value of these tasks and actually taking the time to do it. Considering the financial and political stresses that come with caring for an aging population, figuring out how to motivate community members to do what is necessary to plan for the future is drawing more and more attention.

One new tactic stems from unique psychological research on financial motivation. In previous studies out of Stanford, experts found that one way to spur real action on long-term planning was getting individuals to visualize their future, elderly selves. Interestingly the researchers found the most benefit not when people just imagined themselves in old age but actually saw digitally enhanced images of themselves when they were older. The surprise of seeing their own face in old age was a real spur to stop putting off the necessary planning.

The lead researcher in the Stanford experiment summarized that, “People who see an age-progressed rendering of themselves are more likely to allocate resources to the future.”

First “Fiscal Cliff” Proposal Made — What It Means for Estate Planning

Published on: December 4, 2012 | by Ettinger Law Firm

You cannot turn on the TV, flip open a newspaper, or pull up a news website this month without seeing the words “fiscal cliff.” As many are aware, this refers to sweeping, mandatory federal tax and budgetary changes that are set to take effect January 1st unless the Congress and White House pass legislation with an alternative plan. Essentially the “cliff” is about $7 trillion worth of tax increases combined with significant spending cuts across the board–including everything from Medicare and Medicaid to the military.

What is interesting about the cliff is that virtually no one on either side of the aisle actually wants it to take effect. Instead, it was only put into place as a compromise over a previous debt ceiling legislative fight. The idea was that that the cliff would be so abhorant to both sides that its impending appearance would force a compromise. However, as the end of the year gets closer, more and more observers are worrying that even with the serious consequences of the cliff, no compromise is in sight.

Currently, the Obama Administration and Congressional leaders (most notably, the Republican House leaders) are trying to reach agreement on an alterantive to prevent the mandataory changes. As part of that effort, President Obama recently released his “first offer.” As summarized in a recent article, the offer is far from what the Republican leaders have proposed, so it is unlikely that it will be taken seriously. Essentially, it calls for around $1.6 trillion in tax increases over a ten year period–mostly related to expiration of the so-called “Bush tax cuts.” In addition, it calls for modest stimulus spending. The proposal would also permanently eliminate Congressional control over the debt ceiling level (which caused the current crisis to begin with).

Celebrity Example Of Need for Living Will and Health Care Proxy

Published on: November 30, 2012 | by Ettinger Law Firm

The Huffington Post recently reported on the aftermath of the tragic death of former boxing champion Hector “Macho” Camacho. The boxer had only recently retired from the sport after nearly three decades in the ring against some of the sports biggest stars. In his 50s, the boxer lived in Puerta Rico following his 2010 retirement. Tragically, earlier this month he was gunned down outside of a bar on the island. Emergecy responders were able to stablize the fighter, but not before he was declared brain dead by medical professionals at a nearby hosptial. What ensued was a bit of family feuding over the star’s end-of-life wishes–a testament to all of us of the importance of making these wishes well-known before tragedy strikes.

Camacho’s family disagreed on whether or not to remove life support to the boxer. Reports indicate that there was mass confusion and infighting. However, in the end, the extra life support measures were removed and the boxer passed away. The disagreement between the family members in the final few hours, however, may very well affect the family dynamic for years to come.

New York Health Care Proxy

Modernization to New York Medicaid Coming As Part of Affordable Care Act?

Published on: November 29, 2012 | by Ettinger Law Firm

Speculation was rampant over the past year regarding exactly how full implementation of the Affordable Care Act (ACA) (Obamacare) would actually affect the current healthcare programs, like Medicare and Medicaid. Now, with President Obama’s re-election in place and the long-term security of the ACA secure, we are beginning to see some possible ways that the program is going to alter current state practices. For one thing, it may act as a spur to modernize the interaction between various state agencies, including Medicaid.

For example, as discussed in a recent Albany Times Union editorial, the federal Centers for Medicare and Medicaid (CMS) is making a one-time offer to states of 90% matching funds for “modernization” efforts. What does this mean? States will have a significant incentive to spend some resources to improve the efficiency of its programs, including Medicaid. This increased matching fund effort was spurred by the “health exchange” components of the ACA.

In general, CMS pays 50% of Medicaid costs, and the state pays the remaining 50%. That is why Medicaid is deemed a joint state and federal program. However, as part of this new push to improve certain aspects of the program, when a state wants to work on a modernization project, instead of paying for half of the cost of the project, they would only have to pay 10%, with federal coffers taking care of the remaining 90%.

Benefits for Children Conceived After Father’s Death to Be Decided By Court

Published on: November 28, 2012 | by Ettinger Law Firm

Medical and technological breakthroughs in recent decades have impacted virtually every facet of life–estate planning is no exception. For example, many rules in the field hinge on definitions of legal heirs. In the past, it was pretty clear who those heirs were, typically biological or legally adopted children. When an indiviual dies intestate (without a will), then each state has specific default rules regarding what to do with the individual’s assets. Often the biological or legally adopted children receive part or all of those assets.

But it doesn’t end with inheritance rules. Many state and federal programs also use these definitions to make decisions about who qualifies for certain benefits. This includes the federal Social Security program. In many cases, when a parent dies, a family eligible for Social Security assistance for the minor children that remain following their parent’s passing. In the past there as little confusion over when a child did or did not qualify for those survivor benefits.

No longer. As recent of improvements in medical research have changed reproductive technology, the line between when a child is considered an heir and when they are not is blurred. That is perhaps best evidenced by a new case that is slated to go before one state court.

The Hobbit & Long-Term Estate Planning

Published on: November 27, 2012 | by Ettinger Law Firm

One of the biggest movies set to debut this holiday season is “The Hobbit,” based on the well-known fantasy novel by J.R.R. Tolkien. This film follows in the footsteps of the very successful “Lord of the Rings” movies made over the last decade and a half. However, the release of the film is coinciding with a lawsuit filed by Tolkien’s estate against certain companies using material from the series. The case is a testament to the fact that proper estate planning can have implications many years after a passing –even half a century later . That is because the assets passed on at death are not necessarily just physical property, bank accounts, and other material that is finite at the time of the passing. Instead, trademarks, copyrights, and patents can also be given which may have implications far into the future.

Estate Lawsuit

In this case, according to a story published recently by Guardian News, Tolkien’s estate is claiming damage to his legacy as a result of certain gambling products and games using the Hobbit character and themes. The defendants in the case include the producers of the upcoming film version of The Hobbit. More specifically, the estate claims that the copyrights which were granted to the producers were infringed by use of the material in this way–for gambling and online games.