An irrevocable trust can be created to preserve assets in the event that a person requires long-term care through the Medicaid program, which is a primary payer of skilled nursing facility costs. In order to be eligible for the Medicaid program, an applicant must meet specific income and asset requirements. In most instances, individuals will transfer assets into a trust to ensure Medicaid eligibility. Normally, the transfer of assets is completed prior to an individual requiring long-term care assistance, because the assets must remain in the trust for five years in order for the Grantor to not be penalized or be caused ineligibility for Medicaid. Continue reading “Selling a Home in an Irrevocable Trust and Purchasing a Different Property”
Category: Estate Planning
The Difference Between a Living Will and a Last Will and Testament
Living Will
A living will is a medical directive outlining how a person wishes to be treated in the event that he or she becomes incapacitated and can no longer make decisions for themselves. A living will may address situations involving: Continue reading “The Difference Between a Living Will and a Last Will and Testament”
Executor Ineligibility
A testator has the ability to name anyone as executor of his or her estate. The executor is responsible for carrying out the administrative process of an estate and is not required to have prior experience or knowledge in the field. In New York State, the court usually honors the nomination of an executor selected by the testator unless there are grounds for disqualification. Continue reading “Executor Ineligibility”
What To Do If You Don’t Have The Original Last Will And Testament
Probate is the process in Surrogates Court where a Last Will and Testament is proved and accepted, an executor is appointed and all assets are distributed to the intended recipients as stated in the Will. Joint assets with a right of survivorship, life insurance policies or other assets that name a beneficiary are not probated. The probate process includes paying estate taxes, debts, taxes and administrative costs, as well as distributing assets to the intended beneficiaries. Continue reading “What To Do If You Don’t Have The Original Last Will And Testament”
Don’t Forget to Sign a Spousal Refusal
To be eligible for Medicaid, which is a need-based program, certain income and asset requirements must be met. Oftentimes, one spouse will require care in a skilled nursing facility, while the other spouse continues to reside in the community home. More often than not, the spouse residing in the community home depends largely on joint income and assets in order to continue to pay necessary expenses. For this reason, Medicaid provides certain spousal allowances, which allow the community spouse to retain his or her income plus the institutionalized spouse’s income up to a total of $3,022.50. Continue reading “Don’t Forget to Sign a Spousal Refusal”
NY ABLE Program
The New York Achieving a Better Life Experience (NY ABLE) program is a savings plan for individuals with disabilities. The program allows those with disabilities to save money in their name without jeopardizing their benefits.
Continue reading “NY ABLE Program”
Guardianship Proceedings in New York State
New York State offers two types of guardianship proceedings for adults:
- Article 17-A guardianship under the Surrogate’s Court Procedure Act (SCPA)
- Article 81 guardianship under the Mental Hygiene Law (MHL)
While both of these proceedings involve a court being petitioned to appoint a guardian to care for the needs and property of another, there are some differences. Continue reading “Guardianship Proceedings in New York State”
Distributing A Decedent’s Personal Property
Estate assets are distributed in accordance with a decedent’s Last Will and Testament. Oftentimes, a Last Will and Testament will provide guidelines as to how a decedent’s personal property shall be distributed. However, there may still be personal property remaining that does not have specific instructions for its distribution. In regard to this remaining personal property, there are many ways to distribute a decedent’s personal items when there are no instructions available, though there are some general ways. Continue reading “Distributing A Decedent’s Personal Property”
Disinheriting A Child May Result in a Will Contest
A disinherited child has the right to contest a parent’s Will if he or she is disinherited, not named as a beneficiary or left with a disproportionate share. In accordance with the laws of estate administration, a disinherited child is allowed to contest a Will because he or she would have been entitled to a share of a parent’s estate if he or she had died without a Will. Continue reading “Disinheriting A Child May Result in a Will Contest”
Duties and Responsibilities of a Trustee
It is important for a named trustee to understand his or her duties and responsibilities. A trustee is responsible for safeguarding the trust assets for the settlor and his or her beneficiaries. A trustee has a fiduciary responsibility, which holds an individual to a higher ethical standard. A trustee shall adhere to the trust documents in order to remain compliant with the settlor’s wishes. In addition, a trustee should be aware that the failure to follow the terms of a trust document could result in their discharge and the forfeiture of commissions. Continue reading “Duties and Responsibilities of a Trustee”
