New York Estate Planning & Elder Law Blog

The Fine Print in Nursing Home Contracts

Published on: May 18, 2017 | by Ettinger Law Firm

When we send our beloved elders to a nursing home, we expect them to receive the care and attention need to live happy, comfortable, and dignified lives. Unfortunately for many seniors and their families, nursing home abuse and neglect is an all too common problem facing our nation’s elder care and assisted living system. While we expect nursing homes to do the right thing, nursing home abuse allegations can often lead to time consuming legal fights to recover damages and hold the facility accountable.

To make matters worse, many nursing homes have the power to insert clauses in their contracts with residents that strip away their right to due process in a court of law and instead require any disputes be settled in an administrative process known as arbitration. Because many families make the decision to place a loved on in an assisted care facility under duress, they often overlook key clauses in nursing home contracts.

What are predispute binding arbitration clauses?

Roth IRAs and Estate Planning

Published on: May 18, 2017 | by Ettinger Law Firm

When people think of estate planning, they do not automatically think of utilizing retirement planning strategies to maximize their estate’s potential. However, there are many benefits available during retirement that can have a significant impact on how you plan your estate. One such vehicle that can allow for more comprehensive estate planning is a Roth IRA. Roth IRAs are a type of retirement savings account similar to a traditional IRA but with some very important differences that could be beneficial to you. CNN Money provides an explanation of the differences between the two types of accounts, and some of the benefits of Roth IRAs that could be applicable to your estate are discussed below.

Benefits of a Roth IRA

The main benefit of a Roth IRA is that it is funded with after-tax dollars. In other words, the money you put into it has already been taxed. That means that money invested into the account can grow tax free and you do not have to pay taxes on the money you withdraw from it at retirement. There are, however, potential tax penalties associated with unqualified early distributions that an experienced estate planning attorney can help you understand.

Estate Planning and Buy-Sell Agreements for Your Business

Published on: May 16, 2017 | by Ettinger Law Firm

Comprehensive estate planning can be an extremely complicated process for an individual. This is even more true when the individual owns a business. The owners of closely held businesses own businesses with a limited number of shareholders and the stock in such businesses is not regularly traded publicly. While this type of business can provide many benefits for business owners, it can also create issues when one of the business owner dies. However, structuring a buy-sell agreement for a closely held business can help make estate planning easier when it comes to your interest in such a business.

Redemption Agreements

With a redemption agreement, the company itself purchases a life insurance policy on the various owners of the company. When one of those owners die, the sole owner of the life insurance policy – in this case, the company – will receive the benefits of the life insurance policy and can buy back the deceased shareholder’s shares. There are some potentially negative tax consequences for this type of arrangement, including the possibility of the business to be subject to the current corporate alternative minimum tax on the proceeds from the life insurance policy.

Tips for Selecting a Guardian for Minor Children

Published on: May 13, 2017 | by Ettinger Law Firm

Comprehensive estate planning is a deeply personal process. There are so many different factors to consider, and working with an experienced estate planning attorney can help streamline the process and ensure that you explore all of the aspects of estate planning that pertain to you. One of the most difficult parts of comprehensive estate planning is selecting a guardian for your minor children if both parents should become deceased or incapacitated at the same time, leaving neither able to care for any shared children. As difficult as the process can be, it is extremely important to undertake it so that the best interests of your children are provided for in a worst-case scenario. The following are some tips in approaching the guardian selection process and provide some important considerations for you to remember when selecting a guardian, and an experienced estate planning attorney can help you with the process.

Choose Compatible People

Most people put a great deal of planning and thought into how they choose to parent. It is important for your peace of mind as well as your children’s well-being that you select individuals that share a similar parenting style and outlook. If academics are important in your household, make sure that they are also important to prospective guardians. Additionally, making sure that individuals you are considering as guardians are ready to undertake the responsibility that comes with it is extremely important.

What are the Rules for Medicaid Asset Transfer in New York?

Published on: May 12, 2017 | by Ettinger Law Firm

Medicaid is a terrific program designed to help older Americans pay for the cost of their prescription medication, hospital care, and even long term assisted living facility needs. Of course, like any other program, the system is in imperfect and comes with its own unique set of limitations, restrictions, and penalties that seniors and their families need to understand in order to take full advantage of under the law.

Designed as a resource to help low income and disabled seniors, Medicaid requires applicants meet certain financial criteria to qualify for benefits. Sometimes, seniors find themselves in a delicate situation where the state considers them too wealthy to qualify for Medicaid but unable to pay for vital nursing and hospital care on their own. In these circumstances, seniors may need to spend down or transfer assets to qualify for Medicaid assistance.

While this may seem like a practical idea, application for Medicaid in New York requires seniors to disclose asset transfers over the previous five-years to ensure applicants are truly in need of government assistance. The Department of Social Services ”looks back” at financial transactions made by the applicant or his/her spouse and may institute a so-called “penalty period” on non-exempt transferred assets which creates a waiting period on benefits which varies depending on the situation.

Erie County Launches New Task Force to Combat Senior Exploitation

Published on: May 8, 2017 | by Ettinger Law Firm

The Erie County District Attorney recently announced the creation of a new enhanced multidisciplinary team (eDMT) to help combat the 1,600 cases of senior financial exploitation reported each year in the country. The approach is a brand new model design to create a public-private partnership across multiple disciplines to investigate, prosecute, and educate the public about the very real danger facing many vulnerable elders both in the county and the state as a whole.

According to the Erie County District Attorney’s website, the eDMT “is coordinated by social worker Kathy Kanaley of Center for Elder Law & Justice, and includes the Erie County District Attorney’s office and representatives from Erie County Adult Protective Services and Senior Services.” Furthermore, the task force includes a forensic accountant assisting in the accounting of stolen funds, as well as a geriatric psychiatrist to help with determinations of capacity.

“This collaboration will help our office spot and aggressively prosecute those who prey on these vulnerable members of society,” said Erie County District Attorney John J. Flynn. “The sooner we can take action, the easier it will be to get justice for these elderly victims.”

Understanding Donor Advised Funds

Published on: May 5, 2017 | by Ettinger Law Firm

Many individuals want to make sure that part of their estate is dedicated to their favorite charitable causes, and many make the move to guarantee this during their lifetime. There are several ways to do this. Some individuals may consider structuring an endowment while other may choose deferred gifts or planned giving. Another vehicle to ensure your charitable wishes are carried out can include the creation of a private foundation. However, for some people, the best option for charitable donations during one’s lifetime and after might be to create a donor advised fund.

The Basics of a Donor Advised Fund

When we give to various charities, their tax status allows us to take advantage of a tax deduction. However, in order for our donations to qualify as tax deductible, the organization must typically be registered as what is known as a 501(c)(3) organization. These types of organizations must comply with certain rules established by the IRS, including restricted political and legislative activity while following other important guidelines. The IRS defines a donor advised fund as a fund or account that is maintained and operated by a 501(c)(3) organization known as the sponsoring organization.

Avoiding Probate when Passing on an Estate

Published on: May 3, 2017 | by Ettinger Law Firm

Executing a will or estate through probate court can be a costly, time consuming process full of surprises and complex issues. On top of that, the probate process creates a public record of the proceedings that may reveal information individuals wish to keep private, including debts, real estate holdings, and prenuptial agreement agreements.

Fortunately, New York probate law gives individuals planning their estate options to avoid this burdensome process by creating living trusts, setting up joint ownership, and various transfer agreements. However, even these options come with various challenges that can complicate what is meant to be a less stressful process.

By thinking ahead, weighing options, and speaking to an experienced estate planning attorney, individuals and couples can tailor a plan that best suits their needs and ensures their final wishes are carried out with the greatest benefit to survivors. Here are some common ways to avoid probate court in New York.

Long-Term Care Insurance and Estate Planning

Published on: May 2, 2017 | by Ettinger Law Firm

Almost every post, we remind people that estate planning is a comprehensive undertaking that has many different options that can be tailored for individual needs. Experienced estate planning attorneys can help clients understand the role that different option can play in the estate planning process. Another vehicle that can provide individuals and their loved ones with financial security is long-term care insurance. With the growing cost of medical care and the average life expectancy of people reaching 65 today at approximately 85 years of age, high healthcare costs can become a severe drain on a family’s financial resources. However, planning for the cost of long-term medical care can help you maintain the bulk of your estate to distribute to your heirs as you see fit.

What Is Long-Term Care Insurance?

Long-term care insurance not only protects your heirs from the expenses associated with caring for elderly family members, but can also help you prepare for the costs of caring for your aging family members. The purpose of long-term care insurance is to help offset the costs of long-term care that can come with age. For instance, caring for an aging family member that has developed cognitive impairments such as Alzheimer’s disease can sometimes require a daytime visiting nurse while you and your family are at work and/or school, or even around-the-clock medical care in a nursing home facility.

Estate Planning and Debt

Published on: April 28, 2017 | by Ettinger Law Firm

Estate planning is a complex process that involves a great deal of attention to detail. However, truly comprehensive estate planning goes beyond creating a Last Will and Testament or even a trust and includes things like understanding how debt will affect your estate once you die. The best way to avoid the negative effects of debt on your estate is, of course, to avoid debt. However, that is often impossible to do today. In fact, according to sources cited by a recent Yahoo! Finance article around 73 percent of Americans have outstanding debt when they die with an average debt of $62,000 per person. As such, it is important to understand your debt as well as how to manage it appropriately to minimize any potential financial burden such debt could cost your loved ones.

Different Types of Debt

There are several different types of debt, and understanding the differences between them as well as how each type will affect you can help you understand how to manage them. The first type of debt is secured debt. Secured debt is debt that has been guaranteed by some type of collateral. This allows lenders to provide better interest rates on secured debt because a default on such debt typically awards the collateral to the lender. The most common examples of secured debt include residences and vehicles.