New York Estate Planning & Elder Law Blog

The Role of the Stop Unfair Medicaid Recoveries Act

Published on: April 18, 2022 | by Ettinger Law Firm

Current federal regulations require Medicaid programs run by states to try to recoup the cost from estates of recipients who have since passed away even if the state would rather not pursue such recovery.

Medicaid programs must pursue compensation for the cost of nursing home services as well as home and community-situated services in addition to other associated services if a person who receives Medicaid was at least 55 at the time the services were provided. States have the choice to pursue recovery for other services due. The recovery is restricted by the size of the deceased individual’s estate. No other public benefit program requires that correctly paid benefits be received from a deceased Medicaid recipient’s family members. The minimum revenue created by estate recovery is surpassed by the burden it places on low-income individuals. The burden unfairly falls on families whose loved one’s experience

The Stop Unfair Medicaid Recoveries Act was introduced by an Illinois representative and if passed into law would revise the Social Security Act’s Title XIX to repeal requirements that states create a Medicaid Estate Recovery Program and restrict the circumstances when a state can institute a lien on property owned by a Medicaid beneficiary.

Instability in Nursing Home Staffing Impacts Resident Quality of Care

Published on: April 18, 2022 | by Ettinger Law Firm

Nursing home staffing levels frequently decreased on weekends. In 2018, the Center for Medicare and Medicaid Services distinguished facilities with low staffing on weekends and ordered states to perform surveys in a section of those locations on weekends.

In January 2022, the Center started posting weekend staffing levels at nursing homes. Besides single staffing measures citing two reports about the need for additional staffing details on the Care Compare website.

Study Shows Value of Providing Public with Staff Information

What to Know About New York’s Estate Tax Cliff

Published on: April 18, 2022 | by Ettinger Law Firm

New York’s estate tax cliff can lead to heirs in the state paying estate tax at a rate that surpasses 100%. The existing per-person New York state estate tax exemption is $6.11 million. This is the amount that a person can pass on to heirs at his or her time of death without being obligated to pay New York state estate taxes.

Provided a person’s taxable estate falls into the “Estate tax cliff range”, which occurs between $6.11 million and $6.711 million in 2022, a person falls off the estate tax cliff in New York state, and the amount surpassing the exemption is taxed at a rate greater than 100%. Fortunately, various solutions exist to this challenging situation.

Utilizing Charitable Bequests

Start-Up Poised to Make Estate Planning Accessible to Everyone

Published on: April 18, 2022 | by Ettinger Law Firm

The estate planning start-up, Wealth, is pursuing a $180 billion U.S. market by utilizing a digital dashboard that updates holdings in real-time. Many technology companies have offered potential approaches to solving these issues ranging from WillMaker to EverPlans. The CEO of Wealth has stated that he believes his company is pursuing a more unique strategy by appealing to workers that want to offer more value-added benefits.

The Company’s Founding

The company was founded by the former CEO of the company Emailage, which has since been acquired by LexisNexis. The assets from such a sale allow individuals to create, manage, and visualize estate plans through a detailed ecosystem of proprietary legal documents as well as third-party APIs.

What You Need to Know about Living Trusts

Published on: April 18, 2022 | by Ettinger Law Firm

If you’re creating a plan for what will happen to your estate after you pass away or become incapacitated, you’ve likely familiar with the advantages you can realize by creating a living trust. Items positioned in a trust do not pass through probate, which can be a costly and time-intensive process. Living trusts (also referred to as revocable trusts) let a person appoints a trust administrator to look after an estate after the creator passes away.

Living trusts often simplify how assets in estates are passed on. Unfortunately, countless opportunities exist to make errors, especially if you’re tasked with transferring items to a trust. Certain kinds of accounts should never pass into a trust. These certain accounts should not pass into a trust even in situations where they represent the majority of an estate. This category includes retirement accounts like 401(k) plans as well as other types of retirement accounts.

If you pass on assets to a trust, the Internal Revenue Service will classify the interaction as a distribution and you will be required to pay income taxes.

How to Avoid Disagreements with Trustees

Published on: April 10, 2022 | by Ettinger Law Firm

In the recent case of MBM Family Trust, one party initiated legal action against another concerning a foreign judgment. The party who initiated the lawsuit later added a trustee of a trust that the plaintiff claimed helped the defendant conceal assets. The trustee pursued a special appearance and argued over personal jurisdiction.

Ultimately, the trial court did not accept this object. Instead, the trustee appealed. On appeal, the court found that claims intended to recover assets from a trust can only be brought against the trustee who is the trust’s legal representative.

The appellate court commented that the trial court had evidence that the family trust was a lender and that the trustee stepped in to function as the lender of a home equity line. The home equity line of credit provided the line of credit was secured by a deed of trust to the trustee and apart from the home equity line.

A Quick Guide to Reverse Estate Planning

Published on: April 10, 2022 | by Ettinger Law Firm

Estate planning relies on a countless number of assumptions. One assumption is that assets only flow in one direction: from older person to younger person. In reality, this does not always have to be the case. By making the most of some unconventional estate planning techniques, people can realize some tax and estate planning advantages. This is where the concept, of “reverse estate planning” comes in.

Some adult children who have more assets than parents and can help take care of the older generation. In these cases, reverse estate planning can play a valuable role. This is particularly true when parents will not be able to use the entirety of their estate and gift tax exemptions. This is just as true if a parent is in a lower tax bracket than their child.

Tax Advantages through Reverse Estate Planning

Reasons to Revise Your Estate Plan:(And What You Should Consider Revising)

Published on: April 10, 2022 | by Ettinger Law Firm

Estate planning is not written in stone. Instead, estate plans should be reviewed and reconsidered when various major life events occur. This article reviews some of the big life changes that should cause you to review the terms of your estate plan. This article reviews some of the things you should consider reviewing after these changes happen. As always, if you have any questions or concerns about revisions to your estate plan, one of the best things you can do is speak with an experienced attorney.

Marriage

Marriage involves the combination of two lives. Understandably, your estate plan should be revised following a marriage to reflect this change. This will likely mean adding your new spouse’s name to insurance policies and estate planning documents. You should also take the steps necessary to revise your status on your will, trusts, and deeds.

National Institute of Health Bill Widens Medicare Telehealth

Published on: April 10, 2022 | by Ettinger Law Firm

A recent National Institute of Health (NIH) grant will make the most of electronic health records (EHRs), as well as intelligent machine learning, to better diagnose circulatory illnesses. The package in question will bolster access to telehealth and increase its benefits for several years. This is not the only measure proposed to increase funding for necessary care and support for the country’s elderly population. This other measure will widen access to telehealth and widen its benefits for the next few years. Additionally, a third Senate bill is focused on increasing waivers for acute hospital-at-home care. This article reviews some of these potential measures to support the elderly in our country.

Increase Funding for Covid-19 Testing and Vaccination

The National Institute of Allergies and Infectious Disease recently awarded almost a million dollars to a part of Illinois to lower barriers associated with testing and vaccinating for COVID-19. This funding will aid an effort run by various academics throughout the country designed to combat the Covid-19 pandemic. The project leader academic intends to speak to a group of people who reside in East St. Louis in Illinois. This meeting will primarily be a face-to-face method of learning common reasons why people hesitate to get a vaccination or fail to follow government suggestions regarding Covid-19 precautions.

Social Security in 2022 and Beyond

Published on: April 10, 2022 | by Ettinger Law Firm

The Social Security Program is 86 years old and has become a fundamental aspect of how many aging people pay for expenses. Despite its vast importance, social security is full of challenges and weaknesses.

Estate planning professionals once referred to a “three-legged stool” for retirement planning in this country. The three legs included a pension, personal savings, and Social Security payments. Pensions that secure income is not nearly as common as they once were. Furthermore, a very small portion of people in the United States has support from each of these three legs.

Since 1940, however, Social Security has remained a steadfast source of payment. Many people, however, are uncertain about the program’s future. While the program’s demise is not granted, Social Security’s funds are certainly on a downward trend and they must be fixed if they’re to last. If Congress fails to take action, very soon Social Security might lack the funds to pay its promised benefits.