New York Estate Planning & Elder Law Blog

What to Consider Following the Increase in the Annual Gift Tax Exclusion

Published on: March 14, 2022 | by Ettinger Law Firm

In 2022, the annual exclusion for federal Gift Taxes was increased to $16,000 per individual annually. Even though a near-universal acceptance exists that gift-giving can play an important role in estate planning, a person should consider various issues before making gifts.

The way that gifts are made can have a substantial impact on beneficiaries. This is especially true if the party who receives a gift is below the age of 21. Direct gifts made to young people can have their own challenges which include exposure to creditors and limited control over how gifts are made. Consequently, it’s a wise idea in these situations to consider placing gifts in a trust.

The Danger Behind Direct Gifts

Crisis and Estate Planning Documents

Published on: March 14, 2022 | by Ettinger Law Firm

The 2020s have been filled with tension. First, in 2020, the Covid-19 pandemic emerged. Then, race tensions hit an all-time high following the death of George Floyd and several others. Now, the invasion of Ukraine has left many people in more difficult situations than ever before. All of these events are enough to make even the calmest person uneasy.

The most seasoned estate planning professionals are used to addressing two major sources of uneasiness with clients: death and taxation. Planning for these certain events will help to reduce the uneasiness that a person feels. While it’s impossible to control the future and the state of the world, people can engage in thorough estate planning and be fully prepared for any complications that might happen and impact their estate plans.

Estate planning frequently attempts to pass or minimize risk. Some of the most helpful risk-avoiding or risk-shifting techniques that people utilize in an estate planning environment include:

Demand for Estate Planning Increases As More Millennials Become Caregivers

Published on: March 14, 2022 | by Ettinger Law Firm

As the country enters a third year of living in a pandemic, estate planning is seeing an increase in millennials who are surpassing the baby boomer generation as the generation who performs the most caregiving for both children and aging parents.

Millennials are creating their own families, while simultaneously caring for their aging parents during a pandemic. This, in turn, is leading more caregivers to plan for the future. Even though millennials are taking responsibility for writing wills and creating trusts to establish families’ financial status, most adults in the United States lack an estate plan. Hopefully, by making digital estate planning as easy as possible, more people will create estate plans that achieve their wishes.

Key Findings from the Study

Geriatric Guidelines Suggest How to Improve Elderly Care

Published on: March 14, 2022 | by Ettinger Law Firm

The substantial growth of elderly adults in the United States leads to more emergency room visits and complications from injuries and diseases. To meet this challenge, the Geriatric Emergency Department Guidelines were published in 2014 and later received support from several large medical organizations including Emergency Nurses Association and the American Geriatrics Society.

The guidelines characterize the nuanced needs of older emergency department patients and current best practices to promote more cost-effective and patient-focused care. These recommendations require more staff as well as more resources.

What Researchers Discovered

What Should You Do After a Loved One Passes Away?

Published on: March 14, 2022 | by Ettinger Law Firm

When a person passes away, survivors almost always remember the need to take several important actions. Often, some of these actions are time-sensitive and must be performed within a narrow time window. Given the substantial emotional repercussion of losing a loved one, the process is often overwhelming and can even be difficult to navigate. To better prepare you for what happens after an elderly loved one passes away, this article reviews some important steps that you will likely need to take or at the very least consider taking.

Actions Immediately After a Loved One’s Death

Many people find themselves in shock immediately following a loved one’s death. During this period, it’s critical, however, to take some important steps, which include the following:

Hidden Estate Planning Advantage to This Year’s IRS Filing

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

This year’s tax filing season has some hidden advantages. Amidst a backdrop of the Covid-19 pandemic and current tax laws, the Internal Revenue Service has predicted over 160 million Americans could start filing their federal tax returns at the end of January 2022. In regards to gift returns, this does not appear to be as nearly as problematic. The challenges primarily involve individual returns. Among the various tax strategies that clients have been using this year include under-the-radar trusts.

In 2021, donors could give up to $15,000 to another person like a friend or family member without this amount is subject to taxes. Each spouse in half of a married couple could utilize this limit to pass on assets to beneficiaries. Internal Revenue Service returns for many gifts over the threshold (As well as some under this threshold) are due on April 18, which is the same deadline that individual tax returns are due this year. Additionally, tax-payers can pursue an automatic six-month extension for both of these returns.

The Role of Annual Gifts

4 Estate Planning Strategies to Protect Your Assets

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

Considering that someday you will no longer be alive is an unpleasant thought. You might be frightened of the unknown, particularly when it involves issues of what will happen to your loved ones. Even though you will no longer be around to play a role in managing your estate, you do have an input in what happens to your estate after you pass away. This article reviews some of the helpful things that you can do to protect your money after you pass away.

A vital part of estate planning is creating a will, which is a type of legally-binding document that articulates your wishes for what should happen after you pass away including who you would like to manage your estate and how you want your assets to be divided. Wills can also include instructions regarding the care of any dependent or pets that you might have.

A poll conducted in 2021 revealed that less than half of the adults in the United States have a will. The results of this study are similar to other polls conducted as early as the 1990s. Even though it can be challenging to consider that you will someday pass away and to place instructions regarding how your family should manage your assets, doing this can be critical to making sure that your assets, as well as your loved ones, remain protected after you pass away.

The Importance of Reviewing Digital Asset Estate Plans

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

The world has changed substantially over the last few decades including in regards to estate planning. Even if you have a detailed estate plan, reviewing and updating the terms of the estate plan as appropriate is still critical. Due to advances with healthcare, more people are living longer and understandably need a wider range of options with their estate planning documents.

This article reviews some of the areas in the estate planning documents that most commonly need to be updated.

# 1 – Digital Assets

Commonly Asked Questions about Over-the-Counter Tests and Medicare

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

It’s almost an understatement to say that the Covid-19 pandemic has changed our lives and how we live in a range of ways. While Medicare did not pay for Covid-19 tests that were available over the counter, the Center for Medicaid Services is in the process of executing an effort in the spring of 2022 that will offer payment directly to qualifying pharmacies as well as other business entities that participate in this program to help Medicare recipients receive up to eight Covid-19 tests free each month.

Currently, Medicare Advantage Plans sometimes cover and pay for over-the-counter (OTC) Covid-19 tests as a supplement in combination with providing Medicare Part A and Part B coverage. If you’re enrolled in a Medicare Advantage Plan, you should review the terms of the plan to check whether the plan will cover and pay for Covid-19 tests.

All Medicare beneficiaries with Part B qualify to receive eight free OTC Covid-19 tests, despite whether a person is enrolled in a Medicare advantage plan.

How Medicare and Medicaid Are Addressing Long-Term Care Issues

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

Deciding how to receive the medical care that a person needs is a critical part of the elder law process. Unfortunately, the unpredictable nature of aging and medical issues can make it challenging to determine what lies ahead. Various states have also begun to attempt to resolve financing challenges associated with elder care that a growing number of Americans will face in the next couple of decades as a growing portion of the baby boomer generation requires medical care.

The Growing Need for Assistance

Any person can end up needing assistance as they age. This is true regardless of whether a person ends up facing dementia, a significant drop in eyesight, or mobility issues. The degree of assistance and how long a person faces these issues can vary substantially. A person might end up needing assistance with meals, other daily living activities, or total care for the months or years before they pass away. Other times, people end up needing total care for years. The unpredictable nature of a person’s future makes it challenging to plan ahead.