New York Estate Planning & Elder Law Blog

5 Types of Estate Planning Documents You’ll Need

Published on: October 4, 2021 | by Ettinger Law Firm

Many people make the mistake of thinking that they don’t need to engage in any type of estate planning. While you might not be one of the 1% in regards to financial wealth, you should still give great thought to what you would like to have happen if you become incapacitated or pass away. Various estate planning tools exist, but this article reviews six of the most helpful estate planning documents that you should consider creating.

# 1 – Beneficiary Designations

Retirement accounts, as well as life insurance death benefits, are distributed through beneficiary designations instead of through the terms of a will. As part of your estate plan, it’s a good idea to both review and update your life insurance policy and retirement account, particularly following major events like death and divorce. Remember, if you fail to update these designations, undesirable results can occur. Beneficiary designations also have important tax repercussions under the Secure Act. Under the Secure Act, some beneficiaries are no longer able to distribute retirement account assets over their lifetime.

The Basics: Estate Planning Issues for the Unmarried

Published on: September 30, 2021 | by Ettinger Law Firm

Estate planning should be tailored to fit your unique situation. Each person has their own list of objectives that they must achieve. The issues that unmarried people must address are different from those that need to be tackled by married couples. This article reviews some of the common issues that arise when unmarried couples engage in estate planning.

Taking Domestic Partners Into Consideration

Married couples are bestowed under the law with certain rights and obligations that unmarried individuals simply do not have. State laws for married individuals involving property division do not extend to people who are in relationships but not married. Laws are not the same for unmarried individuals in case of a break-up or death. With adequate estate planning, unmarried people can create estate planning documents to make sure that their wishes are carried out when it comes to things like estate planning.

Study Reveals Turning 65 Greatly Lowers Health Care Costs

Published on: September 28, 2021 | by Ettinger Law Firm

When people in the United States qualify for Medicare on reaching the age of 65, they often notice a substantial decline in medical costs paid out-of-pocket.

A new study recently discovered that reducing the eligibility age would save even more for people. The study’s lead author, an assistant professor of cardiac surgery at the University of Michigan’s Medical School, found that these savings would be most profoundly felt by those who most need financial protection.

The study examined out-of-pocket health care costs including co-pays and deductibles for individuals in their late 50s to early 70s. The average out-of-pocket cost declined 27% between the ages of 64 to 66 even though income remained the same. Meanwhile, average health costs paid by individuals and insurance increased 5%. Meanwhile, the percent of older individuals lacking health insurance decreased from 5% to almost 0% from ages 64 to 66. The study made note of older individuals whose health care costs consumed 40% of their income after food and housing. This category included 9% of uninsured 64-year-olds but dropped by 35% for 66 year olds. Not having medicare benefits likely contributed to the fact that approximately 6% of 66-years-old spent more than 40% of their disposable income on health care costs.

Things You Should Know Before Your Writing a Will

Published on: September 25, 2021 | by Ettinger Law Firm

Many people fall into the trap of thinking that wills are only for the wealthiest individuals. Other people falsely believe that because they are young, there is little to no reason to write a will. In reality, life is overwhelming and unpredictable. As easy as it is to assume that estate plans are for other people, it’s also important to understand that death will occur regardless of whether or not one would like to avoid it. If you fail to create an estate plan, there will be no designated individuals to receive your assets after you pass away. In these situations, New York law will dictate how your assets are divided as well as where your assets are transferred.

To make matters even more complex, only one in every three people in the United States is reported to have a will. This equates to only half of the people over the age of 55 having an estate plan. Any person, however, can benefit from having a will even if this makes things easier for survivors who have recently lost a loved one. It’s also important to remember that wills need not be complicated and that a person can write one without having to spend a substantial amount of money. This article reviews some important details to consider if you’re considering creating a will.

Consider Your Goals

Performing Successful Estate Planning When You Have a Blended Family

Published on: September 22, 2021 | by Ettinger Law Firm

Family wealth has led to disputes over the years. Today, Hollywood also continues to make films like Knives Out that address what happens when families cannot agree on how an estate should be divided. Given that the Covi-19 pandemic has placed an increased amount of financial pressure on families, a growing number of people are disputing the terms of wills and other estate plans. Additionally, the number of blended families has grown substantially. Data reveals that currently, 16% of children live in “blended families”. Blended families mean that personal finances are much more nuanced than they once were.

Selecting who will inherit your assets and how much they will receive can be difficult even among the simplest family arrangements. When step-children or other aspects of blended families are involved, the chances for disputes rise greatly.

Writing a Will that Decreases the Risk of Estate Planning Disputes

Medicaid Issues Statement on Third-Party Liability

Published on: September 21, 2021 | by Ettinger Law Firm

The Center for Medicaid Services recently issued a notable statement requesting that parties conform with the duties and obligation of third-parties found in existing law. The Center recently reviewed each state’s Medicaid plan to make sure that states complied with recent statute changes. The Center for Medicaid decided that many states are yet to revise their guidelines to meet regulations found in the Bipartisan Budget Act as well as the Medicaid Services Investment and Accountability Act. Regulations found in the Bipartisan Act include statements that impact regulations connected to the treatment of some kinds of care.

The Background of These Changes

Medicaid often disperses funds only as a “last resort”, which means that Medicaid issues payment for treatment and services only when it is assessed that no other payment sources exist. The Social Security Act’s Section 1902 requires all 50 states to take measures deemed reasonable when deciding on third-party payer liability. The Act also specifies what the term “third-party payer” means. The definition of “third-party payer” encompasses various entities including health insurers, qualified health plans, and any other entity that are classified as legally responsible for certain medical treatment. The Bipartisan Act revised section 1902 to require all 50 states to utilize standard cost avoidance methods rather than paying the total amount allowed under the appropriate payment schedule then seeking third-party reimbursement.

Anticipating Estate Planning Changes Under the Biden Administration

Published on: September 19, 2021 | by Ettinger Law Firm

The year 2021 began with President Biden assuming his role in office. Democrats now control the House as well as the senate. As a result, many people are anticipating what changes the left has in store. While the introduction of tax changes has been discussed, it’s still too early to anticipate what will happen. The Covid-19 pandemic, however, will likely postpone estate planning changes. Given the changes that likely lie ahead, it’s important to do what you can to stay ahead of what might be coming.

Estate Tax Exemption Level

One anticipated change is that the estate tax exemption will drop to $5 million or lower. This change would lead to people utilizing various unique estate planning strategies. Some people have voiced the concern that if they pass away up to the current estate tax exemption of $11.7 million and later pass away when the exemption has been lowered to $5 million, they will owe estate tax on the lower amount as well as whatever assets are still found in their estate. The Treasury has provided directions as well as stated that they will not claw back gifts made before 2021, which afforded taxpayers the option to decrease their federal estate by transferring assets immediately and then drawing appreciation.

Ways to Reduce the Risks of Probate Litigation

Published on: September 17, 2021 | by Ettinger Law Firm

Disputes involving conservatorship and guardianship fall under the purview of probate litigation, while trust and will debates also fall under this category. The best approach to not mitigating the risk of probate litigation is to plan. Your plans may very well include comprehensive estate plans as well as measures to resolve incapacity issues and documentary evidence that supports gifts.

The Creation of Wills and Trusts

Creating a will before a person passes away allows the creator the chance to both control and communicate their wishes for how their assets should be handled. The creator of a will is also able to nominate either their personal representative or the person charged with administering their estate. By creating a will, your estate plan will not be subject to the control of New York’s intestacy law. Individuals who create wills are instead permitted to have the terms of their will dictate the distribution of their estates and resolve their affairs. A nominated personal representative has the capacity to act in such a position. Without this appointment, surviving loved ones are often left to fight over how an estate is administered. Without the will’s creator appointing such a person, loved ones often fight over who is suited for the job. Additionally, the terms of a will must be clear and inarguable to anyone who reads them to reduce the risk of future litigation.

Making the Most of Life Insurance In Your Estate Plan

Published on: September 15, 2021 | by Ettinger Law Firm

For many years, life insurance played a critical role in estate planning to either pay off or avoid estate taxes. Due to the raising of exemptions to a sizable degree including both on a federal and New York state level, people now utilize life insurance to achieve various goals. This article reviews some of the ways that you can achieve estate planning goals through the use of life insurance.

Income Taxes

Following the recent passage of the Secure Act, some new techniques have been introduced involving income taxes. The Act requires beneficiaries who inherit IRAs to make withdrawals from these accounts over the following decade. The creation of this 10-year duration lowered what was once expected to be the rest of the withdrawer’s life.

Important SSI Changes that You Should Know

Published on: September 14, 2021 | by Ettinger Law Firm

The Social Security Administration recently revised its rules addressing how pandemic-related financial assistance can end up impacting a person’s eligibility for Supplemental Security Income or monthly Social Security Income benefits. The Social Security Administration once counted various types of assistance as income and resources for social security income purposes, which led to individuals having their social security income benefits reduced or suspended. Sometimes, social security benefits were outright denied.

A Change to What the Agency Counts as Assistance

Due to the covid-19 pandemic, the Social Security Administration has decided to not count many types of pandemic-related assistance against either Supplemental Security Income eligibility or benefit amounts. Some types of assistance that are now excluded include economic impact payments, state stimulus payments, unemployment assistance, paycheck protection, and loans or grants to employers and self-employed workers.