Davidov Law Group

Do you have an estate plan in place? While April Fool’s day has past us, the last thing you want to be is a fool! If you haven’t taken the time to create an estate plan, you may be setting yourself up for serious problems in the future. With a proper estate plan, you can protect yourself, your assets and your loved ones. Take the time to meet with an estate planning attorney.

Below are 15 reasons why you need an estate plan:

1. You want to properly plan for the future.
2. You want to be able to decide how your assets are distributed after your death.
3. You want to choose a guardian who will be responsible for caring for your children if you become disabled or die.
4. You want to choose who will be responsible for managing and distributing your assets after your death.
5. You want to lessen your estate’s taxes.
6. You want to care for your loved ones after your death.
7. You want to outline important medical decisions ahead of time.
8. You want to outline funeral arrangements ahead of time.
9. You want to make sure that your loved ones are able to make responsible decisions regarding the use of your assets.
10. You want to avoid the costly and time consuming processes of guardianship and probate.
11. You want to protect your assets from creditors.
12. You want to provide for a loved one with special needs.
13. You want to avoid family conflicts and disagreements.
14. You want to make sure that your beneficiaries receive their assets in a timely manner.
15. You want to make sure that your pet is cared for after your death.

Don’t be an April fool! Take the time to meet with an estate planning attorney.

If you have any questions about the need for an estate plan, consult with a qualified estate planning attorney.

The basic estate plan consists of four different documents. Although an estate plan can be as complicated as it needs to be, the groundwork for most estate plans include these documents. No matter how old you are or what your personal situation is, if you are at least 18 years old, you should have the basic documents that are included in an estate plan.

A Will– With this document you can leave instructions that include who should inherit your assets and personal property, as well what each person should get. You will also name the person that you would like to act as executor of your will, and if you have children you can name a guardian for those children in your will. If you do not have a will, the Surrogate Court will decide all of this, and those that inherit may not be whom you would have chosen if you’d had a will.

A Durable Power of Attorney – With this document you will name someone that will have the power to act on your behalf if something should happen that prevents you from handling your legal and financial affairs on your own. Most often this would be if you were to become incapacitated for some reason.

Health Care Proxy – This document names someone that can make medical decisions for you if you are incapable of making those decisions yourself. For example, if you were in an accident and unconscious, your Health Care Proxy agent can make decisions regarding your treatment until such time that you can communicate with medical personnel.

A Living Will – If you have a Living Will you can leave instruction on what type of care you would like. In most cases this would cover end of life treatment and life support. If you do not want to be kept alive by artificial means, this is where you would include instructions concerning this issue.

Not everyone needs a complicated estate plan, but everyone does need the basic estate plan

When visiting various nursing homes, it can be difficult making the best choice. You want to make sure that you choosing a nursing home that will provide excellent care to your elderly loved one. Take the following things into consideration when narrowing down your nursing home options.

• Make sure that your loved one feels comfortable at the nursing home that you choose. If possible, bring your loved one along to tour the facility. This will give you an idea of whether or not it is the right choice.
• Consider any special care that your loved one might need. Make sure the nursing home of your choosing is able to accommodate these needs.
• Choose a nursing home facility that offers a convenient location. You want to make sure that your loved one will be able to see friends and family often. It is best to select a nursing home that is nearby.
• Meet different staff members to make sure everyone is friendly and helpful. You want to pick a nursing home with staff members who will take the time to answer your questions. You also want to make sure that your loved one is receiving the best care possible.
• Only visit nursing homes that have proper licensure. This will allow you to choose a nursing home that meets all of the specific state guidelines and regulations.
• Pick a nursing home that offers social activities and events. This will help to make sure your loved one is involved and has companionship which can aid in making sure your loved one is happy.
• Compare finances of each nursing home. You will need to find a nursing home that is affordable. Ask around to make sure that you are getting an affordable deal.

Consider the above pointers when considering different nursing home options for your loved one. With proper care and planning, your loved one will be safe and well cared for at his or her new nursing home facility.

If you have any questions about choosing a nursing home, consult with an experienced elder law attorney.

If you’re like most people, you have concerns about your ability to pay for long term care should you or a loved one need the support of long term care in the future. With nursing homes costing more than $130,000 per year in New York City, your concerns are well founded.

Long term care refers to care in your home, assisted living facility, or a nursing home when you can no longer care for yourself. There are four main ways to pay for long term care; and one of the ways is so limited, we really should call this article, “3 Ways to Pay for Long Term Care.”

1. Private pay

Private pay means that you pay for long term care out of your own savings and/or income stream.

2. Long term care insurance

Long term care insurance pays for your care in a long term care facility such as a nursing home or assisted living facility. It also pays for your care at home.

While the premiums are somewhat hefty, all of what you pay in premiums over the years will likely add up to less than the cost of one year in a nursing home. The average nursing home stay is three years.

3. Medicaid

Medicaid is the government’s health care plan for the poor. If you are eligible, Medicaid will pay for your long term care. Elder law attorneys help families qualify for Medicaid without losing all of their assets.

4. Medicare XXXXXXX

Medicare pays so little of long term care expenses and there are so many qualifications to receive payment that we thought of not even including it in this article. Your best bet is to not count on Medicare and if you receive any long term care benefits, consider it a bonus.

Planning for long term care is part of the estate planning process. Jot down all of your long term care questions and concerns and call our office. Our qualified elder law team helps people just like you.

The charitable remainder trust is a really interesting tool in your estate planning attorney’s tool belt. It’s so cool that we thought you might find it interesting and want to incorporate it into your estate plan. Here are our thoughts on the charitable remainder trust itself as well as its tax benefits.

• You set up a trust and donate low basis highly appreciated assets into the trust (yes, there must be some highly appreciated assets out there!)
• Because a charity doesn’t pay income taxes, when the assets are sold, you do NOT pay any capital gains taxes (tax benefit #1.)
• You name an IRS recognized charity as the beneficiary of the remainder interest so you receive a federal income tax deduction based upon the remainder interest (tax benefit #2.)
• The assets you donate to the trust are out of your estate for federal estate tax purposes (tax benefit #3.)
• Because the assets are out of your estate, there will be no probate fees associated with these assets.
• You receive an income stream for your life (or the joint lives of you and your spouse) or for a period of years (i.e. 20 years.)
• The income stream you receive is tiered so it is not straight income and has an overall lower income tax rate (tax benefit #4.)
• Your charitable remainder trust planning benefits you, your family, and your favorite charity, and not the government.
• You get to make a gift to a charity during your lifetime, not later.
• Note that this type of trust is irrevocable, meaning that it cannot be changed or amended.
• If you transfer real property or otherwise taxable property into the trust, you will no longer pay the taxes on the property (tax benefit #5.)
• The transfer of the gift into the property is a gift to a charity and thereby does not incur gift tax or eat up any of your lifetime exemption (tax benefit #6.)
• Because the property is no longer yours, it can’t be taken by creditors. Creditors can attempt to attach the income stream.
• You become a philanthropist.

If you have any questions about the charitable remainder trust, consult with a qualified estate planning attorney.