Do you have enough assets and income to take care of your immediate family and donate to one or more of your favorite charities?
A great question to ask, especially in today’s economic climate, but it is exactly because times are hard, that I am asking. We’re all good people as a whole and when we’re passionate about one or more charities, well they become just like family to us.
A good number of my clients would like to leave a portion of their estate (even if it’s small) to one or more of their favorite charities but they don’t know how to do it! They are concerned that there won’t be enough left for their families. This is a valid concern but there are a number of options available that can make charitable gift-giving a “win-win” for all!
Here are some options to consider:
- Charitable Gift Annuities allow you to retain an income stream
- Charitable Trusts allow you to save income taxes today and estate taxes later on
Not only will you help your favorite charity but you can save income and estate taxes. If you’re thinking about charitable gift-giving, the first step you need to take is to determine which charities you would like to help out and in what way. Let me know what you think! Tell me about some of your favorite charities.
As many as 5.3 million Americans have it and it is the seventh leading cause of death. You may think it’s an “older” person’s disease; however there are 250,000 Americans who have it - under age 65. And thanks to Scott Kirshbaum’s documentary, we can get a first-hand account of the toll a wandering mind takes on the person without control.
We’ve heard the countless, heart-wrenching stories about the effects Alzheimer’s has on family members, friends and caregivers, but we've never seen the actual disease be the only “star” of the story, until now.
Scott Kirshbaum’s documentary You’re Looking at Me Like I Live Here and I Don’t is currently airing on PBS’ Independent Lens http://yourelookingatme.com/ program and it is a simple and bold introspection into one woman’s battle with this disease.
This film zeros in on the daily routine of one woman, Lee Gorewitz, who lives in a residential care center in Danville, California. According to Neil Genzlinger of The New York Times, “Kirschbaum catches glimmers of self-awareness in Ms. Gorewitz, indications that she recognizes her diminished capacity and knows there’s nothing to be done about it.”
On my television show, Family Comes First, we met the Henley Family where we focused on “Alzheimer’s Impact on Family.” Mike Henley was diagnosed with Early Onset Familial Alzheimer’s at age 36 and passed away at the age of 46 this past February. He bravely fought this disease but clearly, much more needs to be done.
Having to take care of a family member who has been diagnosed with Alzheimer’s disease can be a heartbreaking proposition. But there are many who refuse to give up and decide to take care of their loved one at home. We can find hope and strength from family and resources that are available in our community.
We must do our best to combat this horrible disease. As founding chair of the legal advisory committee of the Alzheimer’s Association Long Island Chapter (http://www.alz.org/longisland/) , we are available to help families take care of a loved one who has Alzheimer’s.How long has it been since you last reviewed your will, trusts, estate plans?
Before you tell yourself of course a seasoned attorney would ask me that question, I want you to think about this – I’m a Baby Boomer too. We may think that we have all the time in the world to update and plan and we think that we are too busy making sure our children and family are provided for should anything happen. Think again.
In a recent Forbes article, Five Reasons Baby Boomers Need to Review Estate Plans (And It’s Not About Taxes), http://www.forbes.com/sites/deborahljacobs/2012/03/29/five-reasons-baby-boomers-need-to-review-estate-plans-and-its-not-about-taxes/ senior editor Deborah L. Jacobs cited comments made by Paul G. Schervish, a Boston College professor and renowned researcher on wealth and philanthropy in America that was a little shocking, “Boomers will give away much more than they receive.” If that’s not a call to action to revisit your estate plans, I don’t know what is!
Do those documents still reflect who you are, what you care about and what you have today? Schervish tells us that it’s estimated that post-boomers, ages 28 to 45 are in better shape financially than we think and in fact, better shape than we were at that age.
As a boomer and an experienced estate planning attorney, I agree with Ms. Jacobs and Mr. Schervish - Take care of yourself and think about your legacy – the kids will be alright.
Boomers, tell me what you think!
On Tuesday, March 27th, the New York State Legislature voted to repeal the regulations utilizing an expanded definition of "estate" for Medicaid recovery purposes.
As a result, the prior definition of Estate Recovery, which limited estate recovery to only those assets included within the individual's estate and passing under the terms of a valid will or by intestacy, is back in effect.
As you may recall, the expanded Medicaid estate recovery regulations were issued last year which expired in December of 2011. New regulations were circulated which would have included recovery against certain retirement accounts effective July 1, 2012. For the time being, seniors can be comfortable that there is no expanded Medicaid estate recovery in New York.
Additionally, the proposed elimination of Spousal Refusal for home care has been rejected. The concept of spousal refusal is based in federal and New York State law which is a life saver for married couples when one spouse is in need of long term care. This right of spousal refusal is very important because of New York's expansive home care program and the high cost of living. Without spousal refusal, many seniors would have been forced to consider nursing home care, which would be covered by Medicaid.
This is a major triumph for seniors and people with disabilities. My hat is off to the New York State Bar Association Elder Law Section and the New York Chapter of NAELA for advocacy efforts.
My father was having a cup of coffee with his buddies the other day
They wondered where the time went – as they are now in their eighties
They say that they feel like they're 39
My father told his friends – hey, guys, we are in over-time
– make the most of it!
My Planning Tip of the Day is live each day to the fullest.
When problems arise, let us give you peace of mind – so you can enjoy the day
At our law firm, we can help protect assets if long term care is needed
Wishing you health and happiness this holiday season!
Effective IMMEDIATELY, New York State has "EXPANDED" Medicaid Estate Recovery.
- Life Estates
- Revocable Trusts
- Certain Irrevocable Trusts
Everyone with a Life Estate or Irrevocable Trust needs to take action to ensure that their assets are protected.
The time to act is NOW!
- Contact us Immediately for a Consultation
- Attend one of our Free Seminars
- Participate in our Free Webinars
New York State has implemented new regulations effective September 8, 2011 that have “Expanded” Medicaid Estate Recovery.
In the past, New York State (NYS) was limited to recover against the estate of the Medicaid recipient as to assets passing under a Will or by intestacy (when there is no will). As a practical matter, generally, Medicaid recovery would occur when a Medicaid recipient retained ownership of his or her home while receiving Medicaid benefits. There are other restrictions on NYS as to Medicaid estate recovery which is not covered in this article.
There has been a monumental change in New York for same sex couples. For the first time in New York, same sex couples will have the right to be treated as spouses under the Marriage Equality Act of 2011, effective July 24, 2011. This means that same sex couples will have the option to marry under New York Law and hence be entitled to a whole host of rights as a married couple. These rights include the right to health insurance coverage, the right to file a NYS income tax return as a married couple, the right to favorable Medicaid treatment when one spouse requires long term care, the right to an inheritance when one spouse dies and the right to the marital deduction for New York State estate tax purposes.
It will be important for same sex partners to understand their rights and legal obligations under this new law. In our free webinar this coming Tuesday, August 23, 2011, we will explore estate planning options for same sex couples. Join Us!
FREE WEBINAR: MARRIAGE EQUALITY ACT & ESTATE PLANNING
Tuesday August 23, 2011, 7:00 p.m. - 8:00 p.m. EST
Join Us to Learn How the Equality of Marriage Act
Grants Rights to Same Sex Couples in New York State
LOCATION: Participate by Phone or Online!
To Register:
Contact: Susan Tame at 800-680-1717
Register Online: www3.gotomeeting.com/register/910652398
It has become clear to me that my worst fears regarding the 2006 changes to the Medicaid transfer penalty rule have become true. Expanding the lookback period to five years from three years has put an insurmountable burden on seniors with dementia and their families.
The Counties have been very aggressive in their documentation requirements for the five year period to the point that Medicaid eligible seniors are not qualifying for Medicaid.
At a recent fair hearing, I successfully argued that the gifts were made exclusively for purposes other than to qualify
for Medicaid, even though the applicant was in frail health at the time of the gifts.
Without this approval, I do not know how the nursing home would have been paid the $100,000 it was owed; the gifted money had been spent. This was a win-win situation for both the client and the nursing home.
The Deficit Reduction Act of 2005 (DRA) is not part of a natural evolution of the Medicaid program that was created along with Medicare and the Older Americans Act in 1965 in order to prevent the elderly from living their final years in poverty. Instead, the DRA is an unnatural partisan product of those determined to scare boomers and their parents into purchasing long-term care insurance. It contains the most regressive and punitive changes to the Medicaid program since its creation. These new rules will hurt seniors, the nursing home industry, and may or may not drive boomers to purchase long-term care insurance out of fear from what their parents are about to experience. That remains to be seen. And certainly the ethical question of denying care to chronically ill older Americans and people with disabilities in order to strengthen the demand for a private sector product must be evaluated by policy makers and the American people in the years ahead.