New York Estate Planning & Elder Law Blog

What if a Beneficiary Dies First?

Published on: March 12, 2014 | by Ettinger Law Firm

Of the many estate planning lessons pulled for the tragic death of Philip Seymour Hoffman in New York last month is the need to properly update your documents. Hoffman’s will was drafted nearly ten years earlier. It had not been changed to reflect his new life circumstances, particularly the birth of two more children. While his first son was left assets in trust, there was no mention of his two daughters.

This is a common problem when an estate plan is outdated. In addition, the opposite problem can also arise. Instead of failing to account for a new birth, a plan can also miss the fact that one has died. Many New York residents may have questions about what happens when someone set to inherit per the terms of a will or a trust beneficiary is not alive.

“Anti-Lapse” Statute in New York

Do Even “High Ranking” New York Nursing Home Neglect Residents?

Published on: March 11, 2014 | by Ettinger Law Firm

Nursing home horror stories abound, and everyone has likely heard some tale of seniors suffering neglect at a New York long-term care facility. It is for that reason that elder care advocates always suggest doing your homework before making a final decision about where to receive skilled nursing care.

One of the most well-regarding nursing home ranking system is the federal “Nursing Home Compare” website. The site lists most nursing homes and gives them a star rating, from one to five. The rating is based on health inspections, staffing levels, and various quality measures. As a general guide, browsing the rankings of all local New York homes is a very helpful way to get an idea of home performance.

However, can the star system be relied upon exclusively? Is admission to a home with four or five stars a guarantee that the care provided will be proper?

Art Collections and Estate Planning

Published on: March 10, 2014 | by Ettinger Law Firm

Art Collector Disappointed Her Kids Don’t want her Collection: Makes Backup Plan

A recent Wall Street Journal article discussed how estate plans protect art collections. The feature focused on a widowed woman with an art collection worth $250,000. The woman and her late husband traveled extensively and amassed the collectibles over a 50-year time frame. Now in her 80s, she wants to make future plans for the valuable collection.

Upon her death, she would like her cherished art to pass to her two daughters. However, she discussed her desires with her children and discovered that they do not want the Asian art collection. She reluctantly came to grips with the reality of her art moving beyond the family. The Asian art aficionado requested that, if possible, the art assortment stays together and be sold to one collector.

New York Elder Care Planning – When You Have No Children

Published on: March 5, 2014 | by Ettinger Law Firm

Messages about elder care, selecting a nursing home, securing Medicaid support, and similar matters are often directed not at the seniors themselves but their adult children. This is a cultural adaptation that recognizes the role that adult children play in caregiving for their parents. While the rate of child-caregivers may be decreasing from decades past, they remain a key component of senior aid throughout New York.

But that begs the question: What about seniors without children?

Planning Need Even More Imperative

Are You Too Young to Have an Estate Plan?

Published on: March 4, 2014 | by Ettinger Law Firm

A quick Google search reveals about 10,000 articles providing 5, 10, 15, or more reasons why everyone needs an estate plan. While that makes a catchy headline, it may not be technically correct. After all, in most instances, it is impossible for minors under 18 years old to enter into legal agreements. It is not reasonable for your five year old (or even high school student) to have a will drafted or a trust created for assets.

But realistically, when at what point is it prudent for New York resident to draft at least a minimal estate plan, including a Last Will and Testament? Perhaps more importantly, at what point does it make sense for one to invest some money in having a professional create an estate plan?

Not Age But Life Circumstances

Marriage Matters – A Reminder of the Tax Benefit

Published on: February 28, 2014 | by Ettinger Law Firm

Earlier this week we discussed the tragic death of New York actor Philip Seymour Hoffman. There are many estate planning lessons to take away for Hoffman’s situation, including the need to update a will after every life event. Hoffman unintentionally left out two of his children by not updating his will to include them specifically–his oldest son is named directly as a beneficiary of a trust.

Yet another lesson that fellow New Yorkers can take from the case is the role that marriage can play in these matters.

Companions vs. Spouses

Billions on the Line with New York Medicaid “Adjustments” from Federal Government

Published on: February 27, 2014 | by Ettinger Law Firm

New York State has the largest Medicaid system in the country. As most know, Medicaid is a joint state-federal program that provides healthcare to low-income residents. Unlike Medicare (which is a program exclusively for seniors based on their age), Medicaid is for all those who do not have enough assets to pay for the insurance they need out-of-pocket.

Medicaid provides general health care to residents of all ages. In addition it acts as the primary public provider of support for seniors in need of a nursing home stays or other elder care. Considering that each kind of support comes from the same pool of Medicaid money, it is useful for those reliant on the Medicaid system to keep up with all matters that affect the overall budget. In other words, any NY Medicaid budget issues may eventually affect elder care and support options.

Federal Government Adjustment

New York Estate Planning – No Child Left Behind?

Published on: February 26, 2014 | by Ettinger Law Firm

Some New Yorkers eschew an estate plan because they assume their wishes are very simple. “I just want the kids to split it” is a common refrain. For one thing, default rules in the state do not automatically mean that children will split a parents’ assets. The only way to do that is by ensuring you have a properly updated will, or, even better, use trusts to protect assets and streamline the process.

Even when residents wish to split their assets between the children, mistakes are made all the time. Take, for example, the recent high-profile passing of actor Philip Seymour Hoffman. The 46-year old passed away tragically earlier this year inside his New York City apartment. Recently, his will was made public and problems were quickly pointed out.

Perhaps most notably, the will was written ten years prior. The provisions specifically created a trust for Hoffman’s oldest son, who was then an infant. After the will was drafted, Hoffman had two additional children, but there is no mention of them in the older will. As a result, it is unclear what, if anything, they will inherit directly from their father’s estate. New York law provides some protection for unintentionally disinherited children, but the law can be murky in some cases.

Using a “Life Estate” in a New York Estate Plan

Published on: February 25, 2014 | by Ettinger Law Firm

Property rights and rules are some of the most complex (and arcane) areas of the law. Of particular importance for estate planning purposes, property rules allow different individuals to each have different “interests” in the same piece of property. It is not necessarily as simple as one person owning each piece property. This presents unique opportunities for estate planning, often providing different options to structure an inheritance, save on taxes, and otherwise best protect the varying interests of all those in a family.

For example, consider the possibility of a “life estate” to pass on real property (a home or land). This tool is easiest to understand in the context of property interests in a family home. The family home is often the largest asset within one’s estate. Protecting the home from potential estate taxes or being spent down to qualify for Medicaid is an important part of many New York estate plans.

Beyond simply transferring ownership to a family members or putting provisions in a will to pass it on to another. One option is the life estate. The life estate is a deed that essentially breaks up the interests in the home–at least for a time. The senior passes on ownership of the home, but they retain the right to live in the property for the remainder of their life. In other words by using a life estate deed, seniors keep some interest for themselves.

New York Nursing Home Costs & Medicaid “Lookback” Period

Published on: February 24, 2014 | by Ettinger Law Firm

Any family who has gone through the process of helping a loved one into a New York nursing home understands the initial “sticker shock.” New York remains one of the most expensive states in the country for long-term care.

As outlined in the latest Genworth Cost of Care study (from 2013), the median cost of a private room in a long-term care facility in the state is $125,732 per year. Not only that, but the rate is expected to jump by five percent over the next few years. Notably, the average cost nationwide is only $83,950. This means that our state is near the very top of the list when it comes to caregiving costs for seniors.

Do not forget, however, that these studies only report on averages or the median rate. In certain locations, the costs can even run higher. For example, last week Newsday published a story which found that within New York, Nassau and Suffolk counties average the highest in the state. In those counties, the average stay costs over $145,000 per year.