In New York State, a gifting rider grants an agent the power to gift assets and resources. In addition, an agent may utilize the gifting rider to transfer assets out of the principal’s name for Medicaid purposes. For this reason, incorporating a gifting rider into a comprehensive power of attorney may be essential to managing and protecting assets in the event the principal becomes incapacitated. In addition, without a gifting rider, an agent is limited in their power.
Here, a wife involved in a serious accident would benefit from having a gifting rider as part of her power of attorney, because her husband, as the designated agent, may need to transfer assets in order for her to be entitled to long-term care benefits in a skilled nursing facility.
In the event that a person does not have a gifting rider as part of their power of attorney, a Guardianship proceeding may need to be commenced in order to transfer assets from one spouse to another. For this reason, it is important to have a gifting rider as part of a power of attorney. While a gifting rider may be beneficial, some individuals may not feel comfortable providing an agent that much power. With that being said, a gifting rider may be limited to powers specifically enumerated in the document. Therefore, a person may choose to expand an agent’s power to gift or limit an agent’s power to gift by setting forth-specific guidelines.
If you are looking to create a comprehensive power of attorney with a gifting rider, an experienced lawyer can provide you with the legal guidance necessary to help plan for your future. From the simple to complex, the attorneys at Blodnick, Fazio & Clark are skilled in all aspects of estate planning and are dedicated to representing their clients with diligence and compassion. With an office conveniently located in Garden City, Nassau County, the firm is dedicated to providing high-quality legal representation at reasonable costs. Call (516) 280-7105 to arrange a free consultation.