Archive for the ‘Elder Law’ Category

Don’t Leave Children Unequal Shares

Friday, May 14th, 2010

Siblings do not always receive equal shares of a parent’s estate. Sometimes the inequality is intentional and sometimes it is accidental. Regardless of how it happens, it can cause arguments among the children. However, there are some steps parents can take to promote family harmony.

If you intend to leave your children equal shares of your estate, don’t forget to consider any money or property held jointly with a child. Property in a joint account passes outside of your estate. If you add a caregiver child to one of your bank accounts out of convenience, the account will pass to that child alone when you die. This is true for any property held in joint tenancy or any property in a POD (Pay on Death) account. If you don’t intend for that child to receive a bigger share of your estate, you can add a provision in estate planning documents stating that any property passing through joint tenancy to a beneficiary will be treated as an advancement of that beneficiary’s share.

On the other hand, you may intend to leave one child a different share of your estate than your other children. For example, you may want to reward a caregiver child or you may feel that a child with a disability needs a bigger share. If you do decide to favor one child over another, you should explain in detail your reasoning in your estate planning document. This may help your children understand your decision. You also need to make it clear that it is your decision and not the influence of the favored child. If your children are unhappy with how much they have received, they may try to challenge your will.

A qualified elder law attorney can help you ensure your estate is divided the way you intend.

What is a Trust Protector

Friday, April 23rd, 2010

April 23, 2010

Trust protectors — long popular in offshore trusts set up by high rollers — are now gaining popularity in trusts established here in the U.S. by less affluent folks. A trust protector is someone who is appointed to watch over a trust that will be in effect for a long time and ensure that it is not adversely affected by any changes in the law or circumstances.

There are a number of reasons for appointing a trust protector. Having a protector allows a long-term trust to be more flexible and adapt to factual and legal changes. For example, beneficiaries may get divorced or die prematurely or the law may change. A protector can also be helpful if you believe there may be conflict among the beneficiaries and the trustee or if you don’t fully trust the trustee to fulfill your wishes.

You can name a trust protector in your trust document, which will also dictate the trust protector’s powers. Here are some powers that a trust protector may be given:

•    Remove and replace a trustee
•    Allow the trust to be amended due to changes in the law
•    Resolve disputes between trustees (if there is more than one) or between beneficiaries and the trustee(s)
•    Change distributions from the trust based on changes in the beneficiaries’ lives
•    Allow new beneficiaries to be added if there are additional descendants
•    Veto investment decisions

Whatever powers the trust protector has, you should be as specific as possible in the trust document. The more specific you are, the more likely your wishes will be carried out. An attorney can help you ensure that the trust protector does not have too much power.

Technically, anyone can serve as a trust protector; however, it is a good idea to appoint an independent third party rather than a family member or a beneficiary. A lawyer or accountant may be a good choice. There are also companies that provide trust protector services.

Understanding Financial Elder Abuse

Sunday, March 28th, 2010

Financial elder abuse is a serious problem for many senior citizens in the United States. Being able to recognize and report this kind of abuse will ensure the safety of your loved ones.

Elder abuse occurs when a victim is financially exploited, usually due to his or her diminished mental capacities. Financial elder abuse can take a number of different forms, including stealing money and other assets, forcing the elder to sell his or her property, and withholding money from the elder for daily living expenses. Taking an elder’s money and using it for purposes other than caring for him or improving his quality of life may also be financial abuse.

Abuse of this nature is a crime, and it is often committed by someone who is close to the victim– a family member, close friend, or even a service provider such as a doctor or therapist. Fraud, theft, forgery, extortion and the wrongful use of a Power of Attorney are other popular forms of financial abuse. This kind of exploitation may occur with or without the victim’s knowledge. Often, this kind of abuse may go unreported because of the elder’s inability to identify the situation, fear of the abuser, shame at the fact that he or she can’t control the situation, fear that he or she will not be believed, or a feeling that he or she is incapable of accurately describing the situation due to mental incapacitation.

Financial elder abuse also occurs when the victim is manipulated into signing legal documents, such as changing a Durable Power of Attorney, trust details, or Living Will. This practice commonly affects elders who have decreased mental capabilities, which makes it easier for them to be manipulated.

If you suspect this is happening to one of your elderly loved ones, there is something you can do to correct and even prevent it. Importantly, if the elder in question has any form of cognitive deficiency or he/she has been diagnosed with dementia, you can obtain a letter from the elder’s physician stating that the elder is no longer competent enough to handle finances. Without any medical or psychological evaluations of the elder, it is difficult to provide protection from financial abuse.

To prevent this kind of abuse, you may wish to consult an elder law attorney, who may be able to obtain permission from the court for an evaluation, even if the elder’s “agent,” does not wish to obtain such a test. An elder law attorney can help guide you through the process and help to secure your loved one’s health and happiness.

Bernard Krooks is a New York Elder Law and New York Estate Planning lawyer with offices in White Plains, Fishkill, and New York, New York. To learn more, visit Littmankrooks.com.

Same Sex Couples and Retirement Planning

Monday, February 22nd, 2010

A large number of same-sex couples will be entering retirement in the next few years, and many of them will face great challenges in planning for their financial futures. The majority of these problems will stem from their unmarried status. Unmarried couples are not guaranteed the automatic legal protections that take effect when one member of a married couple dies. In addition, unmarried couples lack many of the other advantages in planning for financial security in their retirement; these are advantages that most couples take for granted.

Same-sex couples are at a disadvantage when it comes to receiving 401(k) benefits. Same-sex surviving spouses, unlike the surviving spouse in a married union, cannot directly receive the balance of their deceased spouse’s 401(k) plans. Because they must begin making withdrawals on the balance right away, they face a higher tax rate than their married counterparts and experience the loss of accruing interest. In addition, a married person can transfer his or her deceased spouse’s 401(k) funds into an IRA without paying taxes, yet a gay or lesbian who inherits 401(k) funds may end up paying up to 70 percent of those funds in taxes and penalties.

Pension benefits also do not apply to same-sex couples in that way that they apply to married couples. If a worker passes away, most pension plans will pay survivor benefits solely to a legal spouse of the participant. As such, gay and lesbian partners are excluded from these pension benefits. Not receiving these benefits could cause significant financial problems for surviving same-sex spouses.

In order to better plan for their future, same-sex couples should consult with an attorney who specializes in estate planning.

Spicing Up Your Ethical Will

Wednesday, February 3rd, 2010

An ethical will can be anything from a letter to your children spiced with anecdotes or appropriate humor, to a novella length memoir chronicling your experiences in a manner uniquely your own.

While legal formalities which accompany wills, trusts, and other formal documents are, indeed, generally formal in nature, the ethical will can be more relaxed and can convey more of the author’s values.

In such a document, the writer’s personality survives to provide freshness and power to capture the life of a real person.

To learn more about New York Elder Law, NY Elder Law, New York Elder Care, NY Elder Care, or New York Estate Planning visit http://www.elderlawnewyork.com.

Federal Estate Tax Repealed for 2010

Wednesday, February 3rd, 2010

The government recently eliminated the estate tax for the entire year of 2010. Effective January 1, no federal estate tax or generation-skipping taxes (GST) will be imposed upon individuals who pass away in 2010. Both federal estate taxes and GST taxes are to be reinstated in 2011, and there will be a $1 million exemption (for GST taxes) and a maximum federal tax rate of 55 percent. The million dollar exemption is less than the maximum exemption in 2009, which guaranteed a $3.5 million exemption. What this means is that there will be many more estates subject to estate tax in 2011.

While the current relief from estate taxes seems promising, the estates of those who pass away before the end of the year may not be given to their heirs free and clear. In fact, Congress may have the ability to reinstate estate taxes for this year and make them retroactive to January 1, 2010. If this happens, Congress may impose the rates from 2009 or they may increase these rates.

These changes in the estate tax law may significantly impact your estate planning documents. To learn more about how the change in estate tax affects you and your family, contact a lawyer who specializes in estate planning.

Losing Your Spouse Shouldn’t Mean Automatic Poverty

Friday, January 29th, 2010

Losing a spouse is never an easy thing to deal with – emotionally or financially. Many people who have lost a spouse feel adrift in a sea of doubt, without an anchor. Simple interactions may suddenly appear too daunting because their “other half” is missing.

The emotional loss, though, is only the beginning.

If the deceased spouse was the primary source of income, or handled all the family finances, it gets worse, especially if discussions about death and finances weren’t comfortable topics. It’s typical for the survivor to attempt to continue living in an accustomed lifestyle, but this may not be feasible or even possible. Effective coping begins with regaining a sense of organization. The surviving spouse should seek the services of an elder law attorney to administer the estate of the deceased, and to update his or her own estate plan.

To learn more about New York Elder Law, NY Elder Law, New York Elder Care, NY Elder Care, or New York Estate Planning visit http://www.elderlawnewyork.com.

Living Will Hyperbole

Sunday, January 24th, 2010

The debate about health care reform, especially as it pertains to end-of-life issues, became increasingly contentious in “town hall” meetings across America, especially a few months ago. Some people claim that elder Americans were being herded into euthanasia and assisted suicide via rationing of medical treatment.

In fact, the Obama Administration’s health care reform initiative, although controversial, seemed intended to encourage potentially productive doctor-patient conversations concerning end-of-life issues that may be relevant to most anyone. In fact, a Living Will is good for individuals. It enables people to make essential choices about how they choose to end their days. Most attorneys already discuss these issues with their clients when preparing estate plans. Doctors often have these discussions now with their patients. The proposed health care reform initiative, depending upon what eventually emerges as law, should enable the doctor to be paid for spending the time to help patients think through these important decisions.

Proactive Elder Law attorneys continue to encourage their clients to create Living Wills and Advance Health Care Directives before it’s too late. Under the proposed legislation, doctors and their patients will now be encouraged to have this conversation, as well.

To learn more about New York Elder Law, NY Elder Law, New York Elder Care, NY Elder Care, or New York Estate Planning visit http://www.elderlawnewyork.com.

When a Will and Testament Becomes Contested

Monday, January 18th, 2010

A Last Will and Testament is a legal declaration by which an individual provides for the transfer of property upon death and names one or more people to manage the estate.

Death is inevitable. But a careful choice in selecting an executor is seldom a given, especially where property and money are involved. During life, families may seem to get along fine, but the death of a loved one, considerable property to be disbursed, and an executor who seems unfair or biased — can be a recipe for conflict. The living, prior to their passing, don’t always write out their wishes in clear and concise ways. If there is uncertainty in a family about what might occur upon the death of a patriarch or matriarch, for instance, the atmosphere following death can resemble an emotional war zone.

An executor can help resolve such conflicts. The best executors execute their duties professionally, with tact, with due regard for family dynamics, and with professional guidance from a knowledgeable attorney. If a will contest nevertheless does occur, at least it should then be grounded in law and fair play.

To learn more about New York Elder Law, NY Elder Law, New York Elder Care, NY Elder Care, or New York Estate Planning visit http://www.elderlawnewyork.com.

The Scamming of Our Elders

Friday, January 15th, 2010

It happens as much through e-mail as it does through postal mail or telemarketing calls these days. You receive an offer you can’t refuse promising riches or else alleging that you’ve already won. If it seems too good to be true, it usually is.

You’re checking your email. A message arrives from someone you don’t know. He is begging for your help. The situation might seem contrived or even preposterous, but you are tempted. You can’t help reading it. If you help this person, providing information about yourself or your finances, and perhaps sending some money, the writer promises that you will be rewarded many times over. You fall for it. Perhaps you succumb more than once.

Sometimes a postal mail, email, or telemarketing call identifies you as a lottery or contest winner. It doesn’t matter that you never entered; this fact is clouded by the fact you’ve won. Why would someone tell you that you’ve won something when you haven’t?

Because, as is too often the case, you are being scammed.

Seniors are often unsophisticated Internet users and may also be vulnerable to “snail mail” cheats. They are targeted by scam artists eager to separate them from their money. Duped elders have lost assets acquired over a lifetime – sometimes tens or hundreds of thousands of dollars.

With the Internet’s global reach, countries such as Nigeria and Sierra Leone have emerged as “scam industry centers.” Elderly victims tend to fit a profile. They often live alone, may have recently lost a loved one, or may be experiencing the early signs of diminished capacity. Besides routine crime prevention steps that can be taken to protect a loved one, an attorney focusing their practice in Elder Law can establish some protection from con artists by building effective language into trusts and estate plans. In addition, a trusted family member can be given power of attorney over bank accounts and financial matters. But being scammed can be painful for young and old alike.

To learn more about New York Elder Law, NY Elder Law, New York Elder Care, NY Elder Care, or New York Estate Planning visit http://www.elderlawnewyork.com.