New York Estate Planning & Elder Law Blog

Making the Most of Estate Planning in 2022

Published on: February 12, 2022 | by Ettinger Law Firm

While some people anticipated otherwise, 2022 started without any new federal regulation or tax changes addressing estate planning. As proposed legislation passed through the legislative process in 2021, major potential changes to federal estate and gift tax were dropped. These potential changes included a decrease in the estate and gift tax exemption as well as the elimination of a step-up basis.

Furthermore, no reports exist that any changes will be made any time soon. This is not a guarantee, though. Potential changes can emerge at any point in the future. While no changes are looming, it’s worth noting that one substantial change will occur in a few years when in 2025, the federal estate and gift exemption will be reduced to $5,000 per person.

Positive Changes to Estate Planning This Year

Taking the Time to Review or Create an Estate Plan

Published on: February 12, 2022 | by Ettinger Law Firm

Each year, it’s important for anyone interested in planning for the future of their assets to either create or revise their estate plan. Taking the time and including loved ones in estate planning discussions is the best thing that you can do to avoid conflict or estate planning disagreements.

Estate planning involves planning for the use of your assets after you become incapacitated or pass away. While many people think that estate plans are written in stone, this is not the truth. In actuality, various life events including births and divorce should lead people to review and ultimately revise the terms of their estate plan.

Acknowledge What You Own

Avoiding Undesirable Estate Planning Situations

Published on: February 12, 2022 | by Ettinger Law Firm

TV shows often depict unpleasant estate planning situations that can arise including a deceased person leaving assets to a former spouse. While these situations often do not occur in the way depicted on TV or film including the recent Netflix film I Care A Lot, a former spouse could end up receiving assets from your assets or other undesirable situations can occur if you are not careful.

For a large number of people in New York as well as the rest of the country, estate planning documents including wills and trusts are a person’s final communication with their loved ones as well as the rest of the world.

Make Sure to Revise Your Estate Plan

How to Help an Elderly Loved One Without Overstepping Boundaries

Published on: February 12, 2022 | by Ettinger Law Firm

New variants of COVID-19 including Omnicron and most recently IHU have led many people to prolong social distancing. Understandably, this extended isolation has had a detrimental impact on the mental health of many elderly adults. While you understandably want the best for your loved one, it’s critical to approach discussions about care with the utmost respect for your elderly loved one’s independence. This avoids not overstepping your elderly loved one’s boundaries.

Decide If Your Family Member Needs Assistance

One of the best places to start is to create a mental checklist of what you should examine about how your elderly loved one lives. Some of the most important details you might decide to examine include:

Center for Medicaid Services Revised FAQ

Published on: February 12, 2022 | by Ettinger Law Firm

At the beginning of January 2022, the Centers for Medicaid and Medicare Services revised the organization’s “Frequently Asked Questions” sections. This FAQ addresses the agency’s Nursing Home Visitation Guidance.

The revised FAQ emphasizes that visitation must be allowed at all times and states that visitation is essential for all residents. The FAQ also acknowledges that previous limitations on visits led to a decline in the physical as well as psychosocial health of residents.

The Primary Updates

Understanding the Role of Federal Taxes in 2022

Published on: February 1, 2022 | by Ettinger Law Firm

As we begin our way through 2022, understanding various federal tax issues can help make the most of your estate planning this year. Because the federal legislature might pass regulations that alter these laws sometime during 2022, it’s important to understand critical federal tax laws you might want to utilize now. Before acting on any of these regulations, however, it’s often wise to speak with an attorney who is up to date with these changes and can make sure that you engage in actions that best benefit your situation.

# 1 – Lifetime Exclusion Amounts

Starting January 1, 2022, the amount of federal estate and gift tax exclusion in addition to the generation-skipping transfer tax has increased to $12,060,000 from $11,700,000. Remember, this amount is doubled for married couples. These threshold amounts are poised to decrease substantially at the beginning of 2026, though.

The Advantage of Utilizing SPA Trusts in Your Estate Plan

Published on: February 1, 2022 | by Ettinger Law Firm

In times of economic uncertainty, estate plans can benefit substantially from flexibility. As the country both continues to recover from the COVID-19 pandemic as well as face the challenges brought on by new strains of COVID-19, it’s a good idea to consider how to make your estate plan flexible. Not to mention, looming changes brought on by changes to tax law also make it a good idea to consider flexibility while creating an estate plan.

What SPA Trusts Do

Special power of appointment (SPA) trusts (or as they are sometimes called SPAT trusts) is a type of irrevocable trust in which either the creator or settlor of the trust grants appointment power to another person. The person who receives these powers functions in a non-fiduciary role to direct the trustee to make distributions to anyone except for the person who made the appointment of powers.

The Status of Estate and Gift Taxes in 2022

Published on: February 1, 2022 | by Ettinger Law Firm

The Status of Estate and Gift Taxes in 2022

In 2021, Congress, as well as the Executive branch, proposed revisions to the tax code that if passed would have substantially changed estate planning. If these changes had been made, some proposals would have been put on the side, while the frequency of use for other estate planning strategies would have increased.

Some estate planning proposals would have lowered the amount of estate and gift tax exemptions from the current level of $12.06 million a taxpayer to around half the amount. While no guarantee exists that such changes will be made at any time in the future, those interested in making the most of their estate plan should still understand how the law is written as well as what steps they can take to anticipate these looming changes.

Considering Medicare Advantage Plan Alternative

Published on: February 1, 2022 | by Ettinger Law Firm

Approximately, 26.9 million Americans are enrolled in Medicare Advantage Plans as of January 2022. While many people are content with their plans, not everyone is. Individuals have between January 1, 2022, to the end of March 2022 to make revisions to their Advantage Plan. During this period, a person can also drop a Medicare Advantage Plan and opt for a basic Medicare plan, which includes Part A and B.

Individuals should be aware of some important details before switching Medicare plans, though. For one, people can change plans early in the year. For example, a person might discover that their Medicare plan no longer covers important medication.

The Narrow Window to Change Plans

A Few Ways to Increase Your Retirement Savings in 2022

Published on: February 1, 2022 | by Ettinger Law Firm

As the new year begins, new opportunities are created for people to make the most out of their finances. Currently, the country is proceeding through the “Great Reshuffle”, which is seeing a large number of workers leave their jobs and make new ones. While many workers want to do their best to save as much as they can, some people are finding it hard to save and reach financial goals. This article reviews some of the important things that you can do to make the most of your finances in 2022 and beyond.

# 1 – Examine Existing Retirement Plan Contributions

This year, 2022 workers can contribute as much as $20,500 to a 401(k) or make similar contributions to 403(b) plans and many 457 plans. This is $1,000 greater than the limit established in 2021. If you’re at least 50 years old, you can also add another $6,500 in “catch-up” contributions.