New York Estate Planning & Elder Law Blog

DOMA Ruling & Retirement for Same Sex Couples

Published on: August 21, 2013 | by Ettinger Law Firm

Much discussion around the Windsor case that struck down DOMA dealt with the estate tax. As a result of the decision, married same sex will indeed be privy to the same federal estate tax exemptions as their heterosexual counterparts. But the effects will go well beyond taxes at death. In fact, it is important for same sex couples to remember that federal recognition of their marriage will also affect retirement planning.

The sweeping ruling granting federal equality will likely mean that many same sex couples will need to “re-do” planning that they previously undertook to account for their unequal status under the law.

Retirement Planning

Nationwide Nursing Home Report: New York Receives Failing Grade

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

A non-profit group called “Families for Better Care” recently released a comprehensive report card that ranks the skilled nursing care in all 50 states. The report, one of the most comprehensive ever, was based on a mountain of data taken from federal reports from 2013. Every state received a letter grade. Sadly, New York grade was far from passing–we received an F. The state was listed in the bottom as one of the worst places for nursing home care in the country.

The report also gave individual state grades on eight different criteria. Those factors included deficiencies identified in state inspections, staffing hours, ombudsman complaints, and more. Those individual grades were then combined to come up with the overall state grade.

The full report can be viewed online here.

Issues with Family Vacation Homes

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

Many New York families have vacation homes. While the reference often conjures up images of the super-wealthy wintering in palacial estates, the truth is that owning a second piece of real estate in a favorite location is not only for the elite. Middle class families who prudently save often decide to purchase a second home for investment purposes.

Considering the frequency of these homes, it is important for families to be aware of some financial and estate planning issues that they may create. A Forbes story from last week provides a helpful introduction into the topic.

Unfortunately, the use and future ownership of these homes is often cause for confusion, misunderstanding , and argument. For one thing, parents and children often have different ideas about the property. Is it meant to be a family keepsake that is passed down through the generations as a meeting place and memory maker? Or is it simply an investment item that can be sold if necessary without much thought? Often different family members have different levels of attached to these homes. One sibling may hold the location dear and never dream of getting rid of it while another may have few memories of the home and not wish to hold onto the property if it does not make financial sense.

Reminder: More Estate Planning Opportunities for Couples After Windsor v U.S.

Published on: August 14, 2013 | by Ettinger Law Firm

A JDSupra post from last month offers a helpful reminder of the changing legal landscape for New York same sex couples who are married.

As virtually everyone knows, in late June the U.S. Supreme Court declared the main portion of the federal law known as the “Defense of Marriage Act” (DOMA) unconstitutional. The crux of the particular case, Windsor v. United States, related to the estate tax. Windsor, a New York resident, was forced to pay over $350,000 in estate taxes following the death of her wife, Thea Spyer. The couple’s marriage was legally recognized in New York, but the federal government treated the pair as strangers.

Estate Planning Options

Children on Famed Football Coach Challenge Will

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

The State recently reported on another “will contest” involving a well-known South Carolina family. The story is an example of a very common estate planning problem, disagreement between adult children and a second (or third) spouse.

The basics of the family situation are well known. The patriarch, former University of South Carolina football coach Jim Carlen, had three children with his first wife, Sharon. In the early 1980s, Carlen divorced Sharon and married his second wife, Meredith. Carlen and Meredith had one child together. While specific details are sparse, it seems that Meredith and the Carlen children from the first marriage may not have had the best relationship. Tension of this sort is quite common among all families with parents who re-marry following divorce or death.

In Carlen’s case, the children are claiming that the man’s second wife exercised undue influence on him in his waning years, taking advantage of his dementia. Carlen apparently wrote a series of wills (among other estate planning documents). The first, in 1970, left his assets to his wife and children. All subsequent wills were similar, with the children left substantial property.

WSJ on the “Re-Thinking” of New York Medicaid

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

Drastic revisions to the New York Medicaid system have been well documented in recent years. Most attention relates to a crackdown on fraud and similar cost-cutting measures. The spur for the alternations, as with so many government program decisions, is the hope of reigning in costs and ensuring the program’s viability for many years to come.

There is an assumption that saving on costs can only be accomplished by taking away available services. But that is not always the case. Take, for example, the long-term care aspect of Medicaid. The annual cost of care in a skilled nursing facility is incredibly high. New York homes have some of the steepest price tags in the country. On top of that, many residents would rather not live in the restrictive facilities in the first place. Obviously some of the most ill seniors simply must have around-the-clock care. But others who may be able to live off less intensive support are forced to move into a facility for lack of options. In other words, it is a situation where the state is paying significantly for a service that many would rather not have anyway.

Fortunately, in recent months the state has worked to flip the model, saving money and providing more tailored service in the process. A Wall Street Journal story last week touched on some of the general themes of the change.

Adding Candidates & Political Parties to Your Estate Plan

Published on: August 8, 2013 | by Ettinger Law Firm

How should you decide who you should name as beneficiaries in your estate planning documents? For many, the answer is not too complicated: leave it all to the children. However, just because that model is the most common form of passing on assets does not mean that there are not others who you might like to leave something. For many, designating beneficiaries in a will and trust documents is an important way to re-iterate their values, morals, and interests one final time. After all, estate planning is about legacy-building.

Charitable contributions are common, as New Yorkers seek to help out their favorite causes one final time. Similarly, many residents decide to leave assets to political causes. The total amount donated to political parties and candidates this way is actually quite substantial. However, because of campaign finance laws, there are some additional complications when making these bequests.

Political Beneficiaries

Taxes & Withdrawal From Retirement Accounts

Published on: August 7, 2013 | by Ettinger Law Firm

Planning for retirement is rarely a simple task. For one thing, a resident must carefully ask the basic question: How much do I need? Sophisticated models and projections exists to help make educated guesses about this answer. But it is never an exact science. That is because it is impossible to say with certainty how long the retirement will last or what the future financial world will look like.

On top of that, however, there is also significant complexity regarding the accounts, trusts, and other tools used to provide the assets and income needed in retirement. It is critical to understand tax issues with retirement accounts and investments to appreciate exactly how much money will be available for you to live in your golden years.

Take, for example, the issue of taxes and individual retirement accounts (or any other tax-deferred plan). Do you know how much of the account will be taxed on withdrawal?

GRATs – A Good Idea in this Low Interest Rate Environment?

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

A post over at Think Advisor last week provides some helpful insight into one financial and estate planning tool which might be appropriate for some New York residents. The tool is know as a GRAT – Grantor Retained Annuity Trust. As with many other trusts, one key purpose of the GRAT is to minimize tax liability, particularly for those with significant assets.

How It Works

The basic concept behind the GRAT is straightforward. Assets are placed in trust. The grantor (person creating the trust) then retains the right to receive fixed payments from the trust. Those payment can last either for a set period of time designated in advance or over the grantor’s life. At the end of the trust’s life the assets placed in the trust then fall to the beneficiaries.

New York Nursing Homes & Poor Dental Care

Published on: August 5, 2013 | by Ettinger Law Firm

Most horror stories about poor nursing home care include tales of grotesque “bed sores,” broken bones gone undiagnosed, and similar cases of obvious caregiving lapses. But the best way to measure the quality of long-term care facilities may not be to see how many of these “big” mistakes are made. Instead, it might be more appropriate to look into resident’s mouths.

As a New York Times article discussed last week, there is a chronic problem of poor (and virtually non-existent) dental care provided at far too many nursing homes. A facility’s attention to dental care may be a key indicator of their overall commitment to proper support.

For one thing, many seniors do not have dental insurance. Medicare usually does not cover basic dental care. Medicaid might, but many have reported problems finding local dentists who accept Medicaid coverage. Without private insurance, many seniors simply go without regular cleanings and preventative care. Following a medical setback, dementia, or other challenge, many of these seniors land in nursing homes already in poor dental health.