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A recent report by the Old-Age, Survivors, and Disability Insurance Trust (OASDI) Board of Trustees indicates that funding for the nation’s Social Security program will face massive funding deficits in the coming future. According to OASDI’s 2017 Report, Social Security will begin paying out billions more than it takes in starting in 2022, due in large part to waves of Baby Boomers entering retirement.

Currently, more than 62 million Americans rely on benefits from Social Security to help pay for basic expenses like food and shelter. Of that number, 42.8 million are retired workers who have already paid into the system while the remainder are beneficiaries are those who are the disabled or and the survivors of workers who’ve passed away. The Center on Budget Policy and Priorities found in 2016 that Social Security’s guaranteed monthly payout ensures that over 22 million people are kept out of poverty, 15 million of which are retired workers.

Since 1982, the OASDI trust has consistently taken in more income than it has paid out to American retirees. OASDI’s reserves currently sit at $2.9 billion, which is primarily invested in special-issue bonds, and is expected to hit roughly $3 trillion by 2021. However, just one year after the reserve assets peak, funding is expect to take a sharp downturn as millions of Baby Boomers enter retirement.

In 2017, reportedly 80 percent of all fine art collectors interviewed by the accounting consulting firm Deloitte thought art collections to be a valuable category of investment. A serious consideration for any investor interested in retaining and distributing the value of those tangible assets according to plan, a will, estate, or trust document specifies the future heirs of an investor’s artwork, antiques or rare collectibles. A professional estate planner can assist you to draft and execute a plan for passing on beloved and highly valuable treasures.

Estate Tax Law

The Internal Revenue Service (“IRS”) defines “collectibles” as artwork, antiques, rugs, fine jewelry or other metals and gems, stamps and coins, and vintage alcoholic beverages. Under IRC Section 408(m), the IRS allows estate holders to distribute personal property to heirs or to charities. Special tax and estate laws on distribution of artwork and other collectible assets held in an estate differ by state, as mentioned in New York Consolidated Laws, Tax Law – TAX § 1115. Exemptions from sales and use taxes.

A recent analysis of generic drug prices paid by Medicare Part D enrollees by healthcare consulting firm Avalere Health determined that despite the relatively stable prices of these medications, some seniors find themselves paying more and more each year. The reasons, according to the report, have to do with the way insurance companies place enrollees into pricing tiers and the lack of policy changes to curb higher out of pocket costs for elders.

As reported by Avalere, insurance companies have been moving many generic drugs into copay tiers requiring patients to pay larger portions of the drugs’ cost, thus shifting more costs onto patients this way and keeping Part D premiums stable. The moves are important to insurance companies because they understand enrollees decide on their Medicare Part D plans based on the price of the premiums. Unfortunately for patients, they do not realize the full costs of their healthcare plans until they start filing prescriptions.

The numbers on just how much Part D enrollees are paying for their generic drugs is quite staggering. Despite the average prices of generic drugs increasing by on 1 percent from 2011 to 2015, total out of pocket costs increased by $6.2 billion, or 93 percent. Unfortunately, some of the drugs subject to these massive upcharges include some of the most widely prescribed and low cost medications for chronic conditions such as cholesterol, hypertension, and diabetes.

Since introduction of Bitcoin as a valuable retirement fund asset, the significance of blockchain technology has come to influence the estate planning process as well. Estate planning investors with cryptocurrency assets acknowledge blockchain technologies are vital instruments for ensuring a will or estate does not extend into a lengthy probate proceeding. By registering a will, estate, or trust on a blockchain such as “Blockchain Apparatus” or “Proof of Existence,” many of the traditional legal issues surrounding settling executor responsibilities are more readily negotiated. The result: time-efficient distribution of assets or liquidation of those assets on behalf of heirs.

“Self-executed” Registration and Modifications

Modification of blockchain wills, estate, or trust documentation is also easier. Estate holders can now elect to alter inheritance decisions without delay with smart contracts.  The platform Blockchain Apparatus allows an estate holder to “self-execute” a will without assistance from an estate planner or attorney. While the verdict is still out on blockchain will execution services, niche market digital legal services specifically for cryptocurrency investors like “Will and Testament Coin” which is in the early development stage, may soon be an option for those planning an estate.

New York law allows for a creditor to attach a debt collection order to an estate with a claim of lien. A judgment lien is a court ordered sale of real and personal property part of an estate such as antiques, art, jewelry, and other tangible valuables. A licensed attorney at law specializing in estate law and advise an executor or trustee of New York statutory rules of “Estates, Powers, and Trusts” pertaining to an estate that has been attached with a lien.

Notice of Lien Procedure

New York Laws CVP – Civil Practice Law & Rules, Article 52: Enforcement of Money Judgements §5202 and §5203 outlines statutory rules to lien procedure. A Claim of Lien must be filed with the Office of the Clerk in the county where the property is located four months after the work is completed or the materials supplied.

Federal regulators recently issue a warning health care providers accepting federal funding to be on the lookout for inappropriate prescriptions of a powerful antipsychotic drug commonly used in nursing homes to treat a host of disruptive behaviors. The memo comes from the Centers for Medicare and Medicaid Studies and applies to providers accepting Medicare Part D,  including nursing homes and pharmaceutical distributors.

The drug in question is called Nuedexta and is commonly used to treat a rare condition marked by uncontrollable laughing and crying, called pseudobulbar affect (PBA) but is suspected to also be overprescribed for so-called “off label” uses. In the past year, several media reports have indicated that doctors at nursing homes have been overprescribing Nuedexta in order to control not only the symptoms of those struggling with dementia but also generally unruly behavior in residents without dementia.

While Neudexta’s maker, Avanir Pharmaceuticals, claims many dementia patients suffer from PBA and benefit from the drug, the company has also generated millions of dollars in annual sales in nursing homes since the drug launched in 2011. In most cases, the federal government picked up the costs for those bills when it reimbursed nursing homes through Medicare’s Part D program.

In New York, the admirable and highly instrumental private foundation is well-recognized means to venerable ends. Indeed, in 2017, the U.S. federal Internal Revenue Service (“IRS”) reported that New York’s private foundations donated $10,716,118,775 in funds to nonprofit charities, the highest in the nation. Rules to private foundations, otherwise known as tax-exempt “trust” within federal and New York statute, guide the formation and administration of those entities during the life of a benefactor and in to the future after they are gone.  

Definition

Defined as a form of “trust” in subparagraph (a)(1) of Section 8-1-4 of New York Consolidated Laws, Estates, Powers and Trusts Law – EPT § 8-1.8, “Private foundations:  administration of certain trusts as defined in the United States Internal Revenue Code of 1954,” and more specifically in section 509 of the United States Internal Revenue Code of 1986, the private foundation is a tax-exempt entity formed to avoid liability of tax imposition on undistributed income.

A recent survey of family home caregivers revealed that many of these individuals are strained and stressed out by their duties the demands of their loved ones with developmental disabilities and deeply concerned about the future. The survey analyzed the feelings of over 3,000 individuals caring for family members at home with developmental disabilities and found that 95 percent said they were stressed out with nearly half describing themselves as very or extremely stressed.

The questionnaire was conducted by Family & Individual Needs for Disability Supports (FINDS) Community Report and released by The Arc and The University of Minnesota’s Institute on Community Integration. The data collected is based on responses from 3,398 unpaid caregivers across the country who responded to an online survey conducted between January and April 2017.

Researchers conducted the FINDS primarily through an on-line survey administered between January to April of 2017 and made available in English and Spanish paper versions. Those invited to take part in the survey included caregivers who were family members or friends providing support to people with intellectual or developmental disabilities.

What happens when a Facebook account holder dies and leaves valuable assets such as family photo albums and digital wallet details, including bank card information on the site? The Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) of 2015 amended federal guidelines to family member, executor, attorney-in-fact, or trustee access to digital assets transferred to an estate, trust, or will. The statute specifies express authorization must be obtained by the owner before a family member or fiduciary can access a digital asset for any purpose.

Why arrange family and fiduciary access to an account?

The widespread use of digital assets in the form of a personal “account” are now characterized by a range of designated access user identities linking individuals to everything from Bitcoin accounts used for cryptocurrency trading, to social media accounts like Facebook and their ever-expanding platform of services. A fiduciary’s ability to access a decedent’s online accounts requires designation of control for disposition of digital assets by the account holder before death.

When Michael Jackson’s estate filed suit against ABC Inc. and the Walt Disney Company in May 2018, the world viewed the consequences to unauthorized use of the late celebrity musician’s intellectual property (IP). The estate currently holds all copyright to Jackson’s songs and music video work. The thirty works which the estate owns full rights to were included as part of a two-hour made for television documentary about the artist. Attorney representation in the lawsuit argues that the estate was never approached about license of Jackson’s material for use. The defending parties in the case maintain infringement of the estate’s rights to the property never took place; countering “fair use” of material already in circulation within the media.

Copyright, Control, Contestation

According to New York law, rights to copyright ownership continue as estate rights after a decedent has passed. A gift or bequest provides an executor or trustee explicit instructions for copyright(s) licensing, use, and distribution. Intellectual property transferred to an estate or trust after registered with the United States Patent and Trademark Office (“USPTO”) entitles a registrant continued rights to that work seventy (70) to one hundred twenty (120) years after death depending on type of work, and existing distribution or installation in the public domain.