New York Estate Planning & Elder Law Blog

Credit Card Fraud Among the Elderly on the Rise

Published on: June 5, 2012 | by Ettinger Law Firm

Main Street had a helpful story this week discussing the risk that many seniors face from credit card fraud. The story was published in awareness of May as “Older Americans Month.” Each New York elder law attorney at our firm appreciates the need to increase community understanding of the various issues affecting seniors, including financial exploitation.

Credit card fraud is common because it is relatively straight-forward. A thief gets the senior’s credit card information and uses it to make a string of purchases. The culprit usually continues until the senior catches on to the problem and puts a stop to it. Depending on the senior’s living situation, it may be quite some time before the theft is identified. Thousands and thousands of dollars can be lost in these simple scams.

Prevention measures take two forms: minimizing risks that the credit card information will be obtained and putting steps in place to catch wrongdoing soon after it occurs.

What is Legal Incapacity for Medical Decision-Making Purposes?

Published on: June 3, 2012 | by Ettinger Law Firm

Legal incapacity is an important term in New York elder law estate planning. An crucial part of the process is ensuring that another is able to handle legal, financial, and medical affairs in case one is unable to do so on their own. “Incapacity” is the term used to delineate when that alternative decision-making kicks in, giving an agent the power to act on another’s behalf. There is not necessarily a bright-line rule when it comes to identifying incapacity on a case-by-case basis. Therefore, many local residents might wonder how incapacity is defined in the law.

Defining Capacity

The New York Department of Health is a good starting point, as the agency website provides an overview of how incapacity is determined in our state for medical decision-making purposes. The resource explains that for health care purposes capacity to make medical decisions is “the ability to understand and appreciate the nature and consequences of health care decisions, including benefits and risks of and alternatives to any proposed health care and to reach an informed decision.” When a patient lacks capacity, then an identified agent (often via a New York Health Care Proxy) is able to act on the patient’s behalf. An elder law attorney can help create the Health Care Proxy so that the desired agent is able to make decisions in the event of disability.

Misconceptions About Cost of Insurance

Published on: May 31, 2012 | by Ettinger Law Firm

Market Watch reported last month on new research that suggests that many community members are misinformed about the cost of certain types of insurance. As New York estate planning attorneys we understand the importance of life insurance policies in many local resident’s financial planning efforts. Similarly, an important part of an elder law estate plan often involves securing long-term care insurance. Misinformation about the practicalities of these insurance options may leave local residents less legally and financially secure down the road.

The latest research focuses mostly on life insurance and was conducted by LIMRA and the non-profit group, LIFE (Life and Health Insurance Foundation for Education). Most surprisingly, the effort–conducted via surveys–found that consumers often overestimate the cost of life insurance. The confusion about the costs means that some families may have less protection than they need.

The research involved asking respondents to estimate the cost of different types of policies. The average estimates were four to seven times higher than the actual cost. For example, the annual cost of a 20-year, $250,000 life-insurance policy for a healthy 30-year old is about $150, but the average consumer guess was over $400.

Graduation Season is Perfect Time for Grandparents to Consider Gifts

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

This is the time of year when many teenagers and young adults end one chapter of their lives and prepare for the next. It is also a time for many families to consider how far they’ve come and what the future holds for themselves and their loved ones. For those graduating high school, the obvious next step is college. Our New York estate planning attorneys are intimately aware of the challenges of paying for a college education these days–tuitions seem on a never-ending upward spiral.

No matter what the family financial situation, there is benefit to properly planning for these costs and understanding the implications of certain financial decisions. For example, Daily News published a story this week on the way that grandparent gifts to grandchildren heading to college can be properly tailored to meet tax goals. The story noted how the tremendous student loan burden faced by so many college graduates make tuition support one of the best gifts any grandparent (or other loved one) can provide to a young person.

But not only is the gift an act of generosity, it may be a particular prudent financial decision this year. Right now the lifetime gift and estate tax exemption rate is at $5 million. The level is set to drop down to $1 million next year. It may be logical to take advantage of these rates, so that assets can be passed on now instead of through one’s estate.

How to Choose the Best New York Nursing Home

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

Making the decision to place a loved one in a nursing facility is heart-wrenching. Most seniors prefer to live at home, and everyone has heard horror stories about substandard care provided at some of these facilities. However, even with those concerns, there are times when it is absolutely essential that a senior have access to the around-the-clock skilled nursing care that these facilities provide. Our New York elder law attorneys understand that preparation and investigation before making a nursing home selection are crucial to ensure that the chosen facility is capable of providing the high-level of care that your senior loved one deserves.

Below are a few basic issues to consider when selecting a nursing home:

1) Choose a local facility. Senior care advocates explain that few things are more important at nursing homes than frequent visits by loved ones. Ensure that friends and family will be able to stop by easily. Also, be sure that the facility has liberal policies so that spur-of-the-moment visits, early morning visits, and late-night visits are accommodated.

Supreme Court Rules on Survivorship Benefits in Posthumous Birth Case

Published on: May 23, 2012 | by Ettinger Law Firm

We previously discussed the Supreme Court case Astrue v. Capato. At root in the case was the issue of whether or not children conceived after the death of a parent are entitled to federal survivorship benefits. It is important to note that this refers only to those whose actual conception occurred following the passing, usually using frozen sperm that was saved while the parent was still alive. While representing a relatively small group of children, our New York City estate planning lawyers know that these sorts of techniques are actually growing in popularity. Cancer patients and military servicemembers are the most likely to take advantage of this option.

The father of the children that sparked this case had his sperm frozen after being diagnosed with cancer in 2000–he passed away in 2002. Not long after his passing, his wife became pregnant with twins. After their birth she applied to the U.S. Social Security Administration for survivorship benefits. The agency denied the claim, sparking a lawsuit.

The district court sided with the SSA in denying the claim because application of the state intestacy laws would not have allowed the children to recover. On appeal, the U.S. Court of Appeals reversed. The U.S. Supreme Court agreed to hear the case and arguments were made in the middle of March.

Federal Government Overpays New York Medicaid System by $700 Million

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

The Medicaid program is a joint federal and state effort–the public bodies split the cost. The state cost itself is further subdivided into payments made by county governments and those coming straight from Albany. This interconnected relationship is helpful in that it doesn’t place the burden too heavily on any single public entity. Yet, it also means that the New York Medicaid system is at risk for cuts and changes whenever either the county, state, or federal government faces budget problems.

That means that local residents are constantly bombarded with stories about how one government or another is seeking to alter the way the system works to trim costs. The program is an essential lifeline for many local residents. Each New York Medicaid attorney at our firm appreciates the stress that comes with wondering whether a loved one will be able to stay in a long-term care facility or be admitted to a new facility when faced with health problems.

The latest scare came this week as federal officials admitted that they overpaid New York State by a shocking $700 million in 2009 for Medicaid services. The causes for the overpayment are still being rooted out. Essentially, officials believe that the main problem was a faulty reimbursement formula for nine centers for the developmentally disabled. The Poughkeepsie Journal explains that the rate paid per resident at those facilities was four times higher than the actual cost of care and ten times higher than reimbursement rates paid at similar facilities.

Senior Financial Exploitation Prevention: Legal Documents Before Incapacitation

Published on: May 15, 2012 | by Ettinger Law Firm

Law enforcement officers, senior care agency officials, and senior care advocates all believe that having neutral, third-parties with an eye on a senior’s finances is an important way to identify when financial exploitation occurs. Those outside parties can identify particularly suspicious transactions and alert authorities. Our New York elder law estate planning lawyers are proud to play a role in this process, ensuring some local seniors are not taken advantage of by the unscrupulous.

A Monterey County Weekly article on the topic of senior financial exploitation explained yet another factor in prevention efforts–ensuring proper legal documents are in place well before times of incapacity. This is one of the paramount goals of elder law estate planning. The legal documents, such as a Power of Attorney and Health Care proxy, are crucial in ensuring that trusted others can act on the senior’s behalf in case physical or mental problems develop.

One common problem is that mental health ailments rarely occur suddenly. Instead, most seniors experience lack of capacity gradually, over a period of time. This often leads families to put off taking the proper legal steps, assuming that there is always more time. Many are waiting for a clear sign that help is needed, even though that clear sign will only come when it might be too late. It should go without saying that the earlier alternative decision-making documents are in place, the better.

Does Each Spouse Need Their Own Estate Planning Lawyer?

Published on: May 11, 2012 | by Ettinger Law Firm

New York estate planning is a family affair–husbands, wives, children, grandchildren and others all have a stake in ensuring that planning is done properly and timely. This might lead some to wonder whether each individual with a stake in the planning needs their own lawyer. In particular, in blended families (involving subsequent marriages), does each individual spouse have adverse interests such that a single lawyer cannot represent them both in their planning?

That was a question discussed in a Forbes story this week.

Of course, in certain family situations it is usually vital that couples have separate counsel. For example, while certain types of uncontested divorces exist, in most cases couples going through a separation must have their own legal advocate, because the entire process is contentious.

First-Ever LGBT White House Conference on Aging Held

Published on: May 9, 2012 | by Ettinger Law Firm

Earlier this year New York City welcomed the opening of the nation’s first ever LGBT Senior facility. The SAGE Center (Services and Advocacy for GLBT Elders) is located in Manhattan on 27th Street in North Chelsea. As our New York elder law attorneys noted in a previous post on the center (see here) the facility will provide a range of services for the often-vulnerable members of this community. Many LGBT seniors have an increased need for support at this time because they are less likely to have adult children providing help when they age.

Fortunately, more and more advocates and community members across the county are recognizing the unique needs of this community. As reported by GSFLA News this week, the nation’s first White House LGBT Conference on Aging was held on Monday. The three day conference was opened by U.S. Representative and chairwoman of the Democratic National Committee, Debbie Wasserman-Schultz. In her remarks, Rep. Wasserman-Schultz noted that the long-term care needs of this community always existed, but they previously existed “in the shadows.” She went on to note the important of elder law issues, explained that, like all senior communities, LGBT elders need a wide range of support services down the road.

Other speakers at the event included an administrator at the U.S. Health and Human Services Department and an assistant secretary for policy development and research at the Housing & Urban Development Department. The two spoke on the crucial issues of senior healthcare and housing.