New York Estate Planning & Elder Law Blog

The Impact of Tax Cuts on Estate Planning

Published on: December 9, 2017 | by Ettinger Law Firm

Estate planning can be a confusing topic, especially when considering it along with financial planning. It can be even more confusing given the current debate over tax cuts and how they will impact the economy if they are enacted. A recent article from MarketWatch.com paints a rather bleak picture of the cost of tax cuts for middle class families, especially when it comes to estate planning in the future. However, understanding how these tax cuts could impact your estate plan is an important first step in navigating the complexities they may bring with them.

Impact of Public Deficits

According to the article, the Congressional Budget Office is projecting increased deficits if we remain on our current course. If we factor in proposed tax cuts, those deficits are predicted to increase even more. When combined with the ever-increasing cost of health care, especially long-term health care at an advanced age, these deficits may make it harder for younger individuals to save for retirement. This is especially true if important social programs, like social security and Medicare, start to experience cuts or even begin to run dry. The increase in public deficits that many analysts predict will accompany the proposed tax cuts are likely to put increased pressure on these important supplemental income programs and the programs in turn are likely to experience significant cuts in addition to already predicted shortfalls

Federal court rules medical malpractice victim must repay Medicare bills

Published on: December 6, 2017 | by Ettinger Law Firm

A U.S. District Court judge recently ruled that medical malpractice victimss receiving benefits from Medicare must pay back the federal government for medical care in cases where plaintiffs make a successful recovery in their claims. The victim’s wife brought the claim against the Center for Medicare and Medicaid Studies (CMS) in an attempt to block the agency’s action to collect on $171,537.04 in medical coverage paid out from the time of the victim’s diagnosis until his passing.

The case began in April 2007 when doctors diagnosed the victim with prostate cancer after initially failing to to so in a timely manner. From the time of the victim’s diagnosis until his passing in January 2012, Medicare conditionally paid the victim’s medical bills, which totaled $253,546.73.

In 2009, the victim and his wife filed a medical malpractice lawsuit in Cook County Circuit Court in Illinois against the victim’s primary care physician and urologist, arguing the defendant’s failed to make a timely diagnosis. After the victim’s passing, his wife became the administrator of his estate and continued the lawsuit on his behalf to recover for their damages under the Illinois Survival Act.

Financial Mistakes Made Now Could Significantly Impact Your Estate Plan

Published on: December 3, 2017 | by Ettinger Law Firm

Estate planning is sometimes thought of as something older, more established individuals engage in when they have kids to worry about and significant assets to protect. While it is never too early to start thinking about comprehensive estate planning, it is also important to be aware of and avoid some very common financial mistakes that can occur at any age and end up significantly impacting your estate plan and the assets you are able to leave behind to your heirs. Recently, The Huffington Post ran an article discussing some of these common financial missteps. Some of them are included below, and being aware of them can help make sure you understand their significance and can take steps to avoid them. This is not an exhaustive list, but an experienced estate planning attorney can work with you in making sure that your finances are moving in the right direction in order to support the estate planning objectives you have set for yourself.

Breaking Your Budget

Vacations and treating yourself are fine ways to enjoy your hard-earned money. However, it is important to make sure you incorporate these things are part of a well-balanced budget so that you don’t completely drain your savings and find yourself in need of resources that are no longer there. Creating a safety net for emergencies is a good way to make sure you can handle unexpected expenses that could appear out of the blue. You may be hit with medical bills, a family emergency, car repairs, or even loss of a job. Planning ahead will help you navigate these obstacles much more successfully.

Charitable Giving and Estate Planning

Published on: November 25, 2017 | by Ettinger Law Firm

For both practical and philanthropic reasons, charitable giving can be an important part of your estate planning strategy. However, it is important to approach charitable giving in estate planning in a responsible manner to make sure that you are getting the most out of it while being sure your objectives for charitable giving are being met.

Keep Tax Consequences in Mind

Tax consequences can play a significant role in our decisions to give to charity on a yearly basis, so it is no surprised that they play a significant role in our decision as to how to distribute assets to charity on death. Donations to qualified charities are tax deductible up to 50 percent of your adjusted gross income, which means that giving a little extra to charity could help you and your family save on taxes when it comes to inheritances.

Half of retirees and older Americans will need long term care

Published on: November 24, 2017 | by Ettinger Law Firm

A recent article by Time Magazine covered the financial struggles millions of aging Americans face trying to figure out how to pay for the long term in the future. Unfortunately, our nation’s health care system does not seem to have an effective way for our elders to pay for long-term health care, including residency in a nursing home or hiring an in-home health aid worker.

Although we all expect to live long, happy, and healthy lives, the truth is that most of us will eventually end up needing specialized long term health care that neither private insurance nor Medicare will cover. The average cost of a year’s stay in a nursing home can be upwards of $80,000, a figure that leaves only the very wealthy and the very poor (thanks to Medicaid) able to afford.

All tolled, an estimated 47% of men and 58% of women who are retirement age or older will experience a need for long-term care in the future, according to a February 2016 study by the Department of Health and Human Services. As if the financial burden of paying for necessary medical care was not enough, the county’s healthcare system is simply not equipped to handle the coming wave of tens of millions of Baby Boomers approaching old age.

Accessing Safe Deposit Boxes

Published on: November 20, 2017 | by Ettinger Law Firm

Needing access to a deceased family member’s safe deposit box is a common issue many families face as they prepare to pass a last will and testament through probate in New York Surrogate’s Court. While many assume they can simply bring their loved one’s death certificate and box key to the bank and explain the situation to the bank manager, the truth is that most bank officials will turn down these requests without proper paperwork from the Surrogate Court.

When faced with the impasse, many individuals look at the situation as a catch 22. On the one hand, access to the safe deposit box is needed to probate the will and on the other hand, the safe deposit box cannot be accessed until the estate is probated. Fortunately, New York’s estates and trust laws are prepared for such scenarios and offer a somewhat streamlined process for gaining access to a safe deposit box where a will and other important documents may be stored.

New York Surrogate’s Court Procedure Act, Section 2003 gives interested parties, those with claims to an estate, the right to request access to the deceased’s safe deposit box for the purpose of uncovering the last will and testament. To gain an “Order to Open Safe Deposit Box,” the interested party will need to file the necessary paperwork with a copy of the death certificate and applicable fee.

Drugmaker Under Investigation for Going Off-label with Anti-psychotic Drug

Published on: November 17, 2017 | by Ettinger Law Firm

A recent report by CNN revealed the lengths to which one California drug maker may be going to push sales of Nuedexta, a little red pill developed to treat certain behavioral problems but has been increasingly used in nursing homes to control residents. The story by CNN was so compelling that the City Attorney for Los Angeles even opened an investigation into the drug maker’s targeting of nursing home residents.

The Food and Drug Administration (FDA) approved Nuedexta to treat a disorder marked by sudden and uncontrollable laughing or crying, known as pseudobulbar affect (PBA). According to maker Avanir Pharmaceuticals’ own data, less than 1 percent of American’s suffer from the condition and is most commonly associated with patients suffering from multiple sclerosis (MS) or ALS (Lou Gehrig’s disease).

Unfortunately, Avanir appears to paying doctors to push the medication onto nursing home workers as a way to control the behavior of unruly residents, something the drug is not approved for nor studied enough to warrant such applications. CNN reports suggest some doctors even took in tens of thousands of dollars in exchange for speaking engagements and other talks on the benefits of using the drug for “off label” applications.

Kinship Law in New York

Published on: November 17, 2017 | by Ettinger Law Firm

In New York, if someone passes away without a surviving close family member to inherit the estate, it becomes what is known as a kinship case. While most of us take the time to plan our estate by creating a last living will and testament or a trust to leave our assets to family members and close friends, not everyone is blessed to leave behind a loving family or close associates to pass on an estate.

Chapter 17(B) of the N.Y.S. Consolidated Laws codifies who is entitled to receive the deceased’s estate if he or she passes away without leaving a will. Typically, the surviving spouse is entitled to all of the deceased’s estate if the couple leaves behind no surviving children or grandchildren. If there are children, the surviving spouse receives the first $50,000 of the estate and then half or the remainder which will be split with the surviving children.

When children lose both their parents, the estate will be divided equally between the surviving children. But what if the deceased leave no wife or children? How far will courts and interested parties need to go to figure out who gets what? The answer depends on a variety of factors, including who the deceased leaves behind and whether any interested parties have passed away.

Increased Medicare B Costs May Consume More of Social Security Adjustments

Published on: November 15, 2017 | by Ettinger Law Firm

Millions of senior citizens will soon find out just how high their Medicare Part B premiums will be in 2018 and whether or not their cost of living increases from Social Security will be able to help offset those adjustments. Unfortunately, many low income seniors may be due for some especially bad news as the board of trustees of Medicare are likely to ask for a premium increase consistent with the expected cost of living adjustment from Social Security, leaving may struggling to better their current situation.

According to reports, the Social Security Administration is poised to increase monthly benefits by 2.2 percent, a raise from an average monthly allowance from $1,360 to $1,390. Although the increase is not dramatic, it is much higher than the miniscule 0.3 cost of living adjustment given last year. Those cost of living increases from the Social Security Administration are important because they have a direct impact on whether or not Medicare can increase premiums.

Under the law, Medicare’s board of trustees cannot allow any premium increases that would effectively decrease the amount of benefits individuals would receive from Social Security. While seniors did not see any increases in their Medicare Part B premiums over the past few years, this was because there was no corresponding increase in Social Security benefits.

Estate Planning for Young Families

Published on: November 13, 2017 | by Ettinger Law Firm

Starting a family is one of the most exciting times in our lives. With marriage and children comes responsibility to plan for our futures and ensure our loved ones are taken care of in the event of tragedy. While many young families may feel as though they can put off planning their estate, the truth is that it is never too early to start or too late to revise.

One of the first things new families will need to consider is appointing guardianship for children in the event both parents pass away. Although it is difficult to think about, children need to be entrusted to a reliable person to raise them to adulthood. The difficulty often lies in both parents coming to agreement on who should raise the children in a scenario like this.

Another important step is naming an executor to your estate to ensure your children receive all that is due to them should both you and your spouse pass away. Choosing who will manage your estate can have a tremendous impact on the situation and should be someone trustworthy and willing to go the distance until the children are grown and able to take responsibility.