Archive for the ‘Estate Planning’ Category

Preparing for Crisis and Disaster from an Attorney’s Perspective

Tuesday, November 6th, 2012

By Scott M. Solkoff, Esq.[1]

People with dementia thrive on routine.  When the normal calendar of life is disrupted by crisis or disaster, it can be upsetting to any person – but for a person with dementia, it can be a very real threat.  From my view as an Elder Law Attorney, having worked with thousands of families to plan for their future, I have learned some simple steps that can be taken now to prevent big problems later.

Crisis and disaster can strike in many ways.  In Florida, it can come ashore as a hurricane but can also be caused by a health event, the sudden loss of a caregiver, fire and other causes that could befall any of us.  What all of these events have in common is a major disruption in routine and an increased need for safety and communication.  Most people know to keep flashlights, batteries, a water reserve, canned food, a manual can opener and other such supplies on hand.  This should be done and a caregiver should make a list and check the home regularly.  If the subject of our concerns is in a facility, the caregiver should speak with facility personnel about provisions.  Each facility is mandated by law to have a disaster plan and the caregiver should be aware of that plan.  For example, if a facility has no power, is there a generator large enough to meet basic needs?  Where would your loved one be taken if the facility itself becomes unsafe?  Get the answers.

Access and communication is critical.  You must be able to establish your authority to act for your loved one.  As a caregiver, you should have copies, if not originals, of all important legal documents, most important among them being the durable power of attorney, any trust agreements and the health care surrogate designation.  If at all feasible, the elder should also have copies, even if suffering from significant dementia, of the health care documents.  My clients are supplied with “digital pocket vaults,” flash drives that we have fabricated to be about the size of a credit card and which are kept right behind the person’s drivers’ license.  If I have an incident and paramedics come, they must look in my wallet for my I.D.  Right behind my I.D., is this special “vault.”  As soon as it is plugged into any computer (e.g., in the ambulance or the hospital), my caregiver’s name and phone number pop up so that they can be quickly identified and contacted.  My health care surrogate designation and living will are also on the card.  Create some way to make these critical documents portable.  Put a noticeable sticker on the refrigerator (another place paramedics often look) with caregiver contact information.  You can even put a sticker on the outside of the fridge telling the paramedics to look in the refrigerator door for a copy of the health care documents, a common practice.  Some organizations provide “safe return” bracelets, a wonderful tool that allows anyone who finds your loved one to get him or her back to safety.

One of the most important safety devices is people.  Make sure you, as a caregiver, have people you can count on to do the simple task of knocking on your loved one’s door if you cannot reach them yourself.  Get to know at least one neighbor.  Call your loved one regularly to “check in.”  If there is no answer, do not panic.  There is more often than not a good reason.  If there is still no answer and too much time has passed, call that neighbor to go knock on the door.

To read more about elder law and estate planning, please visit www.elderlawnewyork.com.  Two of the nation’s leading elder law and special needs planning firms, one in Florida and one in New York, have developed a relationship to coordinate services and knowledge for people who have connections to both states. Solkoff Legal, P.A., of Delray Beach, Florida and Littman Krooks, LLP of Manhattan, White Plains, and Fishkill, New York are dedicated to helping seniors and individuals with special needs, along with their caregivers and their families, to read more, click here.


[1] Scott Solkoff is a Florida Bar board certified Elder Law attorney, co-author (with his father) of West Publisher’s national and state books on Elder Law, Past-Chair of the Elder Law Section of The Florida Bar and a Fellow of the American College of Trusts and Estate Counsel (ACTEC).  Scott practices Elder and Disability Law in Delray Beach, Florida.

Assistance is Available for Struggling Seniors

Wednesday, October 10th, 2012

Seniors face many issues relating to housing, hunger, income, abuse and isolation. In the State of New York, The Office of Temporary and Disability Assistance is accountable for developing and overseeing programs that provide aid and support those that are eligible and need assistance. The programs mentioned below compliment the primary government benefits programs of Social Security, Medicare and Medicaid for seniors and people with special needs.

  • Energy Assistance: The Home Energy Assistance Program (HEAP) is a federally-funded program to assist people with low incomes with their energy expenses, including heating bills and some energy-related home repairs (HEAP can help those who are meet eligibility requirements pay for any of the following: electricity, propane, natural gas, wood, oil, kerosene, coal or any other heating fuel). In order to qualify for HEAP in New York State, you must need help with your energy bills and meet an income requirement.  A single person must have an annual income of less than $24,360.  Applications can be made at any social services office. To locate a social services office in your area, click here.
  • Housing Assistance: The Bureau of Housing and Support Services (BHSS) concentrate solely on the problems revolving around the homeless, at-risk, and low-income households in New York State. The Homeless Housing and Assistance program supplies capital grants and loans to not-for-profit corporations, charitable and religious organizations, municipalities and public corporations to acquire, construct or rehabilitate housing for persons who are homeless and are unable to secure adequate housing without special assistance.
  • Telephone Assistance: Low-income seniors may also qualify for assistance with their telephone bills.  The Lifeline program provides federal assistance for low-income older adults, for one telephone per household.  The program is available for landlines or cell phones, and you can apply directly through your telephone service provider. To be eligible, consumers must have an income that is at or below 135% of the Federal Poverty Guidelines or participate in a qualifying state, Federal or Tribal assistance program.
  • Food Assistance: The Supplemental Nutritional Assistance Program (SNAP) provides an Electronic Benefits Transfer (EBT) card, which can be used just like a debit card to purchase groceries at participating supermarkets and other retail food stores.  The program is available to people with low incomes, particularly seniors, and you can apply in person at your local social services office, or online at myBenefits.ny.gov. To find out if you are eligible for SNAP, click here.

To read a full list of supplemental benefit programs offered by the State of New York, visit:  http://otda.ny.gov/workingfamilies/. For more information about our elder law services, visit www.elderlawnewyork.com.

Understanding Medicaid Rules: the Deficit Reduction Act of 2005 (DRA)

Thursday, August 23rd, 2012

Understanding Medicaid Rules: the Deficit Reduction Act of 2005 (DRA)

In previous postings, we examined the asset rules and transfer penalty rules for Medicaid, which many seniors rely on for nursing home care or, in New York, home health care.  In 2006, significant changes to the program went into effect, and we review them here.

In 2006, President George W. Bush signed the Deficit Reduction Act of 2005 (DRA), cutting approximately $40 billion from Medicaid, Medicare and other programs over five years.  The effect on Medicaid has been to tighten eligibility rules.

The primary impact of the DRA on Medicaid was to change the rules regarding the transfer penalty, which we examined in detail in a previous posting.  The DRA lengthened the “look-back” period from three years to five years, and changed the transfer penalty start date from the date of the transfer to the date an applicant enters a nursing home and would otherwise be eligible for Medicaid.

Another key change is in the application of stricter home equity limits.  In New York, Medicaid applicants cannot have more than $786,000 of equity in their homes, unless a spouse or other dependent relative resides there.

The DRA also affects certain estate planning tools that some Medicaid applicants have found useful.  The rules have been tightened on the use of annuities, promissory notes and life estates.

Annuities can provide income to nursing home residents, provided they are considered “noncountable” toward Medicaid asset limits.  To meet this requirement, they must be irrevocable, non-transferable and actuarially sound.  The DRA added a new requirement: the state must be named the remainder beneficiary, up to the amount of Medicaid benefits the applicant receives.

Prior to the passage of the DRA, a Medicaid applicant could avoid the transfer penalty by showing that a transfer of assets was not a countable gift, but a noncountable loan, by producing a promissory note or mortgage contract.  The DRA imposed restrictions on such loans: the term of the loan must not be longer than the anticipated life of the lender, deferred payments and balloon payments are not permitted, and the debt cannot be canceled upon the lender’s death.

Another strategy to avoid the transfer penalty is for the applicant to purchase a life estate in the home of another person, for instance a child.  This is still permitted, but the applicant must actually reside in the home for at least one year.

These estate planning tools can still be useful to Medicaid applicants, but they require the assistance of a qualified estate planning attorney.


For more information about New York Medicaid rules, visit http://www.health.ny.gov/health_care/medicaid/.For more information about our elder law services, visit www.elderlawnewyork.com.

Understanding Asset Rules for Medicaid

Friday, August 17th, 2012

Many seniors take advantage of Medicaid for health insurance coverage, nursing home care, or, in the state of New York, home health care.  Because Medicaid is a joint program between the federal government and the states, it is important to understand the rules that apply where you live.  Here we will review the resource or asset rules that apply to the program for nursing home or home health care recipients, both generally and in the state of New York.

Individuals who have a disability, are blind or are age 65 or over, or who require nursing home care, must pass a resource test to be eligible for Medicaid.  In New York, in order to be eligible for Medicaid, a person’s assets must be $14,250 or less.  Income is restricted to $792 per month if the person continues to reside in the community.  Nursing home residents are permitted a small monthly income for personal needs.

Asset rules also apply to a nursing home resident’s spouse, known as the “community spouse.”  In New York, the Community Spouse Resource Allowance (CSRA) is $74,820, or half of the joint assets of the couple, up to $113,640 in countable assets.

The community spouse is also entitled to a small amount of income, what is known as a minimum monthly maintenance needs allowance (MMMNA).  For income in excess of the MMMNA, 25 percent may go to the cost of the nursing home resident’s care.

Assets that do not count against the resource limits are those defined as “noncountable,” including personal possessions like furniture and clothing.  A primary residence and an automobile can be considered noncountable, with certain restrictions.  Prepaid funeral arrangements, some life insurance, and assets that are “inaccessible” can also be considered noncountable.

For more information about New York Medicaid rules, visit http://www.health.ny.gov/health_care/medicaid/. For more information about our elder law services, visit www.elderlawnewyork.com.

Married LGBT Couples in New York Should Be Aware of Tax Issues

Thursday, August 9th, 2012

Every couple planning a life together should make sure their financial and legal house is in order, but same-sex couples have additional concerns.  Even in New York, and other states where same-sex marriage is legal, there are issues that LGBT couples should be aware of.

One concern is paying taxes.  Previously, the state of New York recognized gay marriages performed in other states, but that recognition did not extend to tax matters.  Now, with gay marriage legal in New York, taxes are a bit more complicated.  Same-sex married couples in New York must now maintain two separate tax identities.

When it comes to state income taxes, same-sex married couples in the state of New York must now file their state taxes using a married filing status, and file their federal income taxes on an individual basis.  Unfortunately, this will result in an additional burden of time, as two separate tax returns will now be necessary.  Married LGBT New Yorkers will have to file their federal tax return as if they were not married, but will still have to complete a return using married status in order to calculate their state income tax.  If the couple is using an accountant, the additional time unfortunately results in additional costs as well.

LGBT couples who wed at any time in 2011 will be considered to have been married for the whole year, for tax purposes, so 2011 state returns will need to be filed as married.

To learn more about our legal services, visit www.littmankrooks.com.

Seniors Should Be Aware of Benefits Available to Them

Thursday, July 26th, 2012

As people approach their golden years, they should be aware of public benefits that can improve their quality of life.  The Brookdale Center for Healthy Aging and Longevity has produced a helpful Benefits Checklist for Older Adults.  The Center is associated with Hunter College, of the City University of New York.

The first item on the list is Medicare, which guarantees access to medical insurance for Americans over the age of 65.  Medicare Part A covers hospital care and provides limited coverage for hospice and in-home care.  Part B provides limited coverage for outpatient services, physicians and durable medical equipment, while Part D covers prescription drugs.

Another important benefit is Supplemental Security Income (SSI), which provides monthly cash benefits to individuals age 65 or older, and to persons who are blind or disabled.  To receive the benefits, individuals must meet certain income and resource limits, and must submit an application.

There are also benefits that apply specifically to older New Yorkers, such as the New York State School Tax Relief Program (STAR).  New York state residents who meet certain income limits can receive a reduction in school property taxes.  A real property tax credit and the Senior Citizens Homeowners Exemption (SCHE) are also available to those who qualify.

There are many public benefits that can provide assistance to seniors, and it is important to be aware of the help that is available.

The checklist is available here: http://www.co.genesee.ny.us/docs/OfficefortheAging/Benefits_Checklist_2011__rev_2_18_11_.pdf


To learn more about our estate planning services, visit www.elderlawnewyork.com.

Planning to Retire Soon? Create a Retirement Checklist

Monday, July 16th, 2012

If you are considering retiring within the next five years, now is the time to create a retirement plan.  Many seniors say they wish they had planned more carefully for retirement.  There are several things you can do now to make sure your legal and financial affairs are in order when you retire.

Define Your Financial Goals

Naturally, one of the most important considerations in planning for retirement is safeguarding your financial security.  That means defining what you expect your lifestyle to be during retirement, and how your financial goals will be met.  You will want to consider factors such as how you will allocate money from your savings to supplement your retirement income, the possibility of rising health care expenses, and the effect that inflation may have on your purchasing power.

Your retirement plan will need to include a budget and an asset allocation strategy, and you will need to consider how to balance different sources of income and benefits, including Social Security, Medicare, and your own assets.  If you are employed, one thing you can do to maximize your savings is to invest as much as you can in your 401(k) before you retire.  Your employer can be a valuable source of information on how best to make use of your 401(k), and what benefits you will receive in retirement.  If you are married, then you and your spouse should create a joint retirement plan.

Create an Estate Plan

If you do not already have an estate plan, now is the time to create one.  Before retirement, you will want to be sure that you have taken the necessary steps to ensure that your assets will be distributed according to your wishes, through the execution of a will, and the establishment of any trusts that would benefit you and your family.  It is also important to establish a durable power of attorney, designating a person to make decisions for you in the event you become incapacitated.  Through a living will, you can issue specific instructions for what is to be done in certain medical situations.  An estate planning attorney can help you create a holistic plan for the management of your assets.

Retirement is something to look forward to, and something to plan for carefully.

To learn more about our elder law services, visit www.elderlawnewyork.com.

How can Families get Started in Planning a Nursing Home Placement for a Loved One?

Wednesday, June 27th, 2012

Guestblogger: Ginalisa Monterroso, Entitlement Analyst, Archcare at Mary Manning Walsh Home

How can families get started in planning a nursing home placement for a loved one?

  • Families really need to do lots of research. Use the internet, visit the neighborhoods and facilities and look for reviews that are done by people that have had their family members in the nursing home. Search for a facility where your loved one’s immediate needs are met, ask questions, see if they have an available rehabilitation center, what foods they will serve, how they can cater to your loved ones, what insurance the nursing home will take.
  • Always visit and ask questions.

What is the New York Patient Review and how and where can it be completed?

  • It is a “quick” medical assessment of the patient’s needs – it states what the patient is being treated for, the diagnosis, any symptoms, medications, needs and requirements medically per the doctor’s orders,(as opposed to going through an entire medical chart it is a 7-page summary of all the medical needs of a patient (type of care, type of equipment needed, etc.) so that nursing homes can make a quick assessment).  It can be completed

What is the admissions agreement?

  • This is an agreement that is generated by the facility stating all the requirements of what the facility offers for the resident as far as the needs, insurance (required), payments needed, it is a breakdown of what is included in regards to services, room and board, rehabilitation, insurance, notification on insurance being discontinued, the guidelines for where to go if your insurance is discontinued. Everyone should always read the agreement, it is important to know what is going to go on in a facility when you admit your family member.

How does one pay for nursing home care? Can it be subsidized?

  • There are a lot of options to pay for care. There are short-term options and long-term options. Medicare covers a short-term stay, it also covers assistance in-state nursing facilities (up to 100 days); if you need an extension, or a longer stay, there are other insurances that may cover the extra duration of the stay, for example, a long-term care policy, or medicaid. Paying out-of-pocket is very, very costly.

How do you complete the Medicaid or Medicare application?

  • Call the Social Security Administration and get your family member on Medicare. You should have the Medicare before you go into a nursing home. Medicaid can always be done once the family member enters the nursing home if the need for an extended stay is necessary. There is a financial person on site who can assist with applying for Medicaid. You should always have long-term care insurance set up before your nursing home placement.

What happens if I am a long distance caregiver or when the patient lives out of state?

  • The process of searching is still the same. Ask questions! Technology today has expanded – – do they have an online site? You can view the facility and take a tour online. Ask to speak to the directors of each department (especially admissions).

What legal assistance is required (or preferred) when dealing with a nursing home?

  • Emergency situations where people haven’t planned in advance are surprisingly common in nursing home placements.  You always want to have a power of attorney; go to a certified elder law attorney (CELA®) when dealing with your loved one. A CELA® member knows all the rules and regulations and will know what needs to be done or prepared in regards to entering a nursing home. Guardianships and financial planning are also important to discuss with a CELA® member to ensure that your loved one’s stay is comfortable.

What rights do patients have while they reside in a nursing home?

  • Patients have the same rights as they would as if they were not living in a nursing home: the right to privacy, to not be discriminated against, they have all the same rights as they would as if they were living at home. No one can make any decisions without asking a resident or confirming with a guardian or social worker (who are always on-site).  The family member has a right to find out what is going on (medically, financially) with their family member or loved one.  They are to be notified of any emergencies or needs that their loved one may have as they change.

What is the best advice you can give to family members on how to place your loved one in a nursing home?

  1. Be preparedPlan Ahead
  2. Look for symptoms in family members who are becoming frail or ailing
  3. Keep paperwork in one place (medical, financial and legal records)
  4. Make sure that you have discussed the needs and wants of your loved one so you are prepared if an emergency takes place (in regards to finances, health and legal matters)
  5. Speak to a certified elder law attorney (CELA®) to ensure your family members’ needs are met – it always helps down the road.

To learn more about elder law, elder care or nursing home placements, visit www.elderlawnewyork.com.

What Jim Morrison Can Teach Us About Estate Planning

Monday, June 18th, 2012

Perhaps surprisingly, looking at the life and death of a 1960s rock star can teach us a few things about estate planning.  Actually, it’s a lesson in what not to do.

When Jim Morrison died in 1971, he left a simple will bequeathing his entire estate to his girlfriend, Pamela Courson, provided she survived him by more than three months.  If she did not, then his estate would pass to his brother and sister.  Courson was Morrison’s primary beneficiary and his siblings his secondary beneficiaries.  Courson did survive Morrison by more than three months, but she died in 1974, and her estate then passed to her own parents.  Morrison’s parents unsuccessfully challenged the will, and Morrison’s brother and sister were left with nothing.  This may have been Morrison’s intention, but probably not.

At the heart of this problem is the question of what happens to a bequest when the beneficiary dies, and that depends on whether one has left a simple will, or engaged in more careful estate planning to create a trust or trusts.

In the case of a simple will, when the person who made the will, the “testator,” dies, the estate passes to the primary beneficiary, provided the primary beneficiary has survived the testator by the specified amount of time, and met any conditions specified in the will.  Once the primary beneficiary or beneficiaries receive the money, it is theirs to do with as they please.  They need not take the original testator’s wishes into account in drafting their own wills, or they may fail to draft a will at all.  Generally speaking, a secondary or contingent beneficiary will not receive anything from a simple will unless the primary beneficiary is ineligible to inherit.

Creating a trust provides a way to control the distribution of one’s estate much more carefully.  For instance, rather than transferring a significant sum directly to certain beneficiaries, the principal can be held in trust for the benefit of those persons until their death, at which time the principal can be diverted to other uses, such as the benefit of another beneficiary.  Many more potential future events can be taken into account by a well-designed trust, such as the marriage or parenthood of the beneficiaries.  Careful estate planning entails confronting these potential future situations, to be sure that your estate is put to the good use you intend.  Contact an attorney to learn more.

To learn more about our estate planning services, visit www.littmankrooks.com.

Signs That A Loved One Should Consider Assisted Living by J.D. Davis

Tuesday, May 8th, 2012

Our latest guest blogger is J.D. Davis, a co-founder of Golden Years Living Solutions, which provides a free service to families searching for senior residences.  He can be reached at (914) 437-8675 or visit the company’s website for additional information.  www.goldenyearslivingsolutions.com


People with aging parents may find it difficult to have a discussion about the prospect of transitioning them into a senior residence, particularly an assisted living community.  Many adult children should expect to face some resistance from their parents who may feel they are not ready to give up their independence and/or move from their home.  However, there are potential warning signs that one should consider while evaluating the particular circumstances.  The following are some examples when having a discussion on the topic might be necessary:

  • The refrigerator is empty or filled with spoiled food, which may be a sign that food shopping and preparation are more difficult.
  • The parent has frequent bruises, which may be a sign of falling or mobility and balance problems.
  • The parent poses a safety risk by living alone (i.e., forgetting to turn off burners on the stove).
  • The parent wears the same clothing over and over again or neglects personal hygiene, which can be a sign that doing laundry and bathing are becoming more challenging.
  • The house isn’t as clean and tidy and is in disrepair, which may show that maintenance may becoming too much of a burden.
  • The parent forgets things (including doctor’s appointments and when to take medication) or dresses inappropriately for the weather, which may be due to memory loss or dementia.
  • The parent seems to be depressed or anxious, which may result from isolation and staying home alone, particularly if a spouse recently died.

Assisted living communities offer many great benefits to the residents and provides peace of mind to their loved ones.  Some of these benefits may include the following:

  • Dining plans with many choices of food to ensure that each resident is eating a well-balanced healthy meal.
  • Daily social and recreational activities to encourage an active social life.
  • Laundry and linen services.
  • Assistance with eating, bathing, dressing and medication management, ensuring greater health and personal hygiene.
  • On-site trained staff for medical emergencies.
  • Group transportation for shopping and community events, and personal transportation for doctor’s appointments.
  • On-site medical offices, physical therapists and other medical professionals.

While having a discussion with a parent about moving from the home may not be easy, promoting the benefits of assisted living can make the conversation much easier.  Planning ahead and getting them comfortable with the prospect of moving into such a residence is strongly encouraged.

Costs May Be More Affordable

Many families believe the costs of living in an assisted living community are too expensive, thereby making it not a viable option from a financial standpoint.  However, some residents are eligible for discounts at certain communities based on their former careers.  For instance, retirees who served as firefighters may save hundreds of dollars per month from the rent at certain communities.  In addition, certain residents may be eligible for a government benefit as much as $2,000 per month, which makes the costs significantly more affordable.

An appropriate diagnosis can help an aging individual and their loved ones plan for the future. Being proactive in the early stages can allow a person a chance to make long-term decisions about their care, living arrangements, finances, and legal concerns. This allows a person more opportunity to benefit from advanced medical care and support services so that the aging process and effects of the disease are managed better. To learn more about New York elder law or New York estate planning, visit http://www.elderlawnewyork.com