Uncategorized Archives - Page 6 of 7

No, You Can’t Just Give It Away! The Dangers of Gifting When Considering Long Term Care

February 24, 2010 by Kristina

Hardly a day goes by when I don’t have a client who tells me that they can give away a certain amount of money free and clear, avoiding look-back periods for long-term care planning. They inform me that their neighbor, friend, or cousin told them that this is allowable. I then have the unfortunate task of telling them that they are wrong and that most states that have enacted the Deficit Reduction Act. After February 8, 2006, the rules relative to gifts changed.

Regardless of the amount, any gift that is made is a transfer and is subject to a look-back period of five-years for MassHealth (Medicaid) purposes. This doesn’t mean that the State will take that money, but rather, that the State will not pay for the donor’s long-term care costs until the five-year look-back is exhausted, or in the alternative, until all the gifts that have been transferred are used to pay for the institutionalized person’s care. [Read more…]

Proposed Massachusetts Legislation Could Change the Way Assets are Counted for MassHealth

February 12, 2010 by Kristina

How often do you feel like you know what your state legislators are doing? The whole process can be mysterious and confusing. This week I would like to shed some light on the subject and tell you about a potentially helpful piece of legislation currently pending in the Massachusetts state legislature.

The proposed law would change the way assets are counted when determining whether a spouse in a nursing home, or certain other institutions and community based programs, is eligible for medical assistance through MassHealth (Medicaid). For MassHealth purposes, the spouse in the nursing home is called the “institutionalized spouse” and the spouse still living at home is referred to as the “community spouse.” Currently, under Massachusetts General Laws, chapter 118E, subsection 21A, many different types of income and asset types of both spouses are considered countable for purposes of determining eligibility. The total amount of countable income and assets are major factors the Division of Medical Assistance takes into account when determining if the institutionalized spouse is eligible for medical assistance from the Commonwealth (MassHealth/Medicaid). [Read more…]

What about Fluffy? Pet Trusts: Another Important Estate Planning Tool

January 27, 2010 by Kristina

It’s estimated that two-thirds of American households currently have at least one pet, a number that has steadily increased in the last 60 years. With more pets comes a growing industry devoted to helping Americans better care for, and even indulge, their pets, has developed. Businesses that provide pet day care, pet sitters, grooming, spa services, and even pet cemeteries have become common.

Many even consider pets part of their family, a sort of child, brother, sister, or at the very least, friend. Since so much love and attention is given to these fury and feathery companions, many wish to provide for their animals in the event that they become incapacitated or die before their pet. With family greed, skepticism, and fraud on the rise, many seek a better solution than hoping Junior will “do the right thing.” As a matter of fact, owner death and/or disability is one of the top reasons that animals end up in Shelters across the country. [Read more…]

Irrevocable Trusts & the Current Federal Estate Tax (IRC 1022), Friend or Foe?

January 13, 2010 by Kristina

The following is a repost of a blog recently written by Attorney Dale Krause of Krause Financial Services. Attorney Krause is also a fellow member of the National Academy of Elder Law Attorneys (NAELA).

An Irrevocable Trust can offer a grantor lifetime control over his or her assets of the trust is established with the following provisions:

All taxable income shall be disbursed to the grantor;
The grantor shall have the right to direct how the trust assets are held or reinvested; and
The grantor shall have a limited power of appointment over the final distributions of the trust; this power shall be in favor of a limited class of beneficiaries, consisting of the grantor’s children and grandchildren; the disbursements do not have to be in equal amounts or shares. [Read more…]

Ring in the New Year with an Estate Plan!

December 30, 2009 by Kristina

Resolutions abound as the New Year quickly approaches. Each year we make a pact with ourselves to make lifestyle changes for the better. Whether it is to exercise more, skip the daily fast-food lunch breaks, or give up bad reality television, the intentions are always good, though often we do not follow through. How many times have we seen the new year rush at the local gym, but notice the crowds slowly dwindle come the beginning of February? [Read more…]

Congress is Down to the Last Hour When it Comes to the Estate Tax Sunset Rules

December 7, 2009 by Kristina

Tick, tick, tick… The clock is ticking for Congress to act to extend/amend the current estate tax laws. They have about three weeks to prevent the federal estate tax to disappear all together in 2010. Experts agree that it is unlikely for Congress not to act.

The question is, however, will they act in time? [Read more…]

Astor Matter Reminds Us that Trustworthiness is Essential When Nominating Substitute Decision Makers

October 22, 2009 by Kristina

Lately, the matter of Brooke Astor’s estate has been covered in the media. Like many people she had an estate plan in place which included a Durable Power of Attorney and Health Care Proxy, which nominated subsituted decision makers in the event she would lose the capacity to make important financial and/or medical decisions at some point during her elder years. She did not want to burden her family with obtaining a Guardianship and/or Conservatorship through the courts. She did end up suffering from Alzheimer’s disease and her son took over her financial powers. He just didn’t do a very good job… [Read more…]

Senior Centers: The Importance of Elders Staying Active & Social

October 14, 2009 by Kristina

I’ve been trying to come up with a new slogan for area senior centers. So far I’ve come up with Senior Centers: come for the free food, stay for the crafts! or Senior Centers: It’s WAY more than BINGO!

But seriously, senior centers offer independence for aging adults. They play a very important role in the lives of elders today by encouraging them to become and remain social. [Read more…]

Elder Mediation: A Great Option to Diffuse Family Tensions When Planning for Elder Care

October 1, 2009 by Kristina

Can’t we all just get along?

I see it more and more and it really saddens me: families unable to “get along” when it comes to decision making for elder loved ones. It can be as simple as whether Mom and/or Dad need to meet with an Elder Law Attorney, to concerns over finances and inheritance issues, to whether siblings agree on who should serve as primary caregiver, and/or to whether assisted living/nursing home care is necessary. [Read more…]

Congress Begins to Work on the Federal Estate Tax

September 11, 2009 by Kristina

Experts view the current Federal Estate Tax system as a ticking time bomb. Some don’t consider planning for estate taxes because the 2009 threshold is set at $3.5 million. In other words, if you die in 2009 owning less than $3.5 million in total assets, you are not subject to a Federal Estate Tax.

If you die in 2010, as the law currently is written, no one owes estate tax, even if they had one hundred billion dollars (Dr. Evil reference, couldn’t resist). But here’s the rub: if you pass in 2011, the threshold reverts back to $1 million dollars. [Read more…]