Davidov Law Group

May 21, 2020 by Davidov Law Group

Beginning October 1, 2020, New York will impose a new requirement regarding community Medicaid, those Medicaid services provided in an individual’s home such as homecare. The state will start to use a new “look-back” period of 30 months or 2 ½ years of an individual’s financial records. This means a person applying for community Medicaid must submit financial information for the 2 ½ years prior to their application. The current law has no such condition or a look-back period.

Under the present law, if you were to apply for community Medicaid today, your application would show your finances only as of today, like a snapshot of your present situation. There would be no examination by the Medicaid agency of any transfers of assets made up until that point. If you met the requirements for Medicaid, your application would be approved for those services.

Under the new law, your application must be submitted with your financial records of the preceding 30 months. If you were found to have gifted your assets or placed them into a trust, for example, to protect that property during the last 30 months prior to the filing of the Medicaid application, the value of those assets would start a penalty period which would delay coverage by Medicaid.

The need to protect your assets has never been greater. The new law does not go into effect until the fall, so there is still time to plan. Any arrangement to qualify for Medicaid services at home and retain your assets by placing them in a trust, should be made soon. Without it, under new law, long term health care services could cost you $60,000 per year or more. Planning now will bring you peace of mind.

For those who presently need home health care, it is especially important to apply before October when the “look-back” period will be implemented. It could mean the difference between qualifying immediately for Medicaid benefits or having to wait up to 2 ½ years.

If you have already established a Medicaid asset protection trust, a review of the trust and the assets it contains is in order. Any assets not in the trust are not protected.

You may already have a revocable living trust. A revocable trust does not offer protection from long term care expenses and may need to be restated to address long term care asset protection.

We can review your specific situation to determine if an asset protection trust is needed, or if your existing estate plan needs to be updated. While the State has issued directives for social distancing, we are making appointments available to new and old clients remotely by phone or video conference. Since New York allows for estate planning documents to be signed remotely, we can get this prepared and completed remotely.

To set up a consultation with one of our attorneys, please call us at 516-587-5555 or schedule a meeting through our website at www.davidovlaw.com.

February 13, 2017 by Davidov Law Group

In an interesting trend, more and more Americans are living in multigenerational households than ever before. Multigenerational homes are defined as those with more than one adult generation residing in them. In 2012, about 56.8 million Americans lived in such households, approximately 18.1% more than in 2011. In comparison, only about 28 million lived in such homes in 1980.

Part of the reason for this shift is the economy. If people lose jobs or have tight household budgets, they consolidate homes. More children are living with their parents, and more elderly parents are moving in with their adult children. High student loan debt, rising rents, and poor job prospects for millennials have caused many people from ages 18 to 34 to delay leaving home and buying their own houses.

The housing industry has responded to this shift by offering homes specifically for multigenerational families. NexGen homes, as they’re called, are larger homes built for larger families who want to stay out of each other’s hair. Each floor might come with a separate living room, kitchenette, and private entrance, and some models come with a master bedroom on each level.

Architects who build these homes are working on new designs that can create an area within the home where people can live in areas set aside for them but where there’s connectivity inside the rest of the house.

Other people who already have homes are looking to adapt their current houses to fit a multigenerational home style. Instead of having to buy a new home or worry about finding assisted living facilities for older parents, people are opting to live in shared spaces with each other.

This trend can make the estate planning process a little less impersonal. There is no need to plan for incapacity outside the home. Instead, planning for incapacitation would only necessitate the need to bring in medical equipment and hire a nurse to assist an elderly individual inside the multigenerational home.

Likewise, if more than one generation is living inside the same house, there is no need to worry about which child gets to live in or sell the parent’s house. One or more children may already be living with their elderly parent under the same roof.

If you’re hoping to set your estate in order, don’t hesitate to give our skilled Nassau County estate planning attorneys a call. We can work with you one-on-one through the entire process. Let us offer compassionate counsel and insightful guidance.

December 30, 2016 by Davidov Law Group

You have built up a lifetime’s worth of assets, savings, and wealth, and are finally ready to retire. With smart financial decision-making and years of constant saving, you have even accumulated a healthy amount of money to leave as an inheritance to your children and grandchildren. But did you know that it can all disappear in a heartbeat if you should be sued?

Whether it be the result of financial predators who use the legal system to deprive you of your assets, a legal issue involving your business, or a sudden accident for which you are held liable, a lawsuit can be devastating for your financial situation. In fact, if someone wins a monetary judgment against you, your family could become bankrupt trying to pay it off. This is why asset protection techniques are so important.

What Is Asset Protection?

Simply put, asset protection is an area of law which utilizes various legal methods to shield your assets from being seized by creditors in the event that you should be sued. With a proper asset protection plan, creditors will be largely unable to force you to liquidate your assets or place a lien on an asset when they win a judgement against you.

Common asset protection techniques include:

Maximizing contributions to IRAs
Moving funds to an irrevocable trust
Retitling assets
Using limited liability companies
Using family limited partnerships

Asset protection can be beneficial for individuals of all tax brackets, not just the super-wealthy. With that being said, an asset protection plan only works if you act prior to being sued. If you are already facing legal action or fear impeding legal action, the courts will likely reverse any transfers of assets you have recently made which prevent creditors from reaching them. For this reason, it is important you retain the services of a skilled attorney and put a plan in place ahead of time before it is too late.

Protect Your Future with Davidov Law Group

Whether you work in a high-risk industry with a high likelihood of being sued or simply wish to make certain your assets remain intact for your heirs, our Nassau County asset protection lawyers at Davidov Law Group can help. Having provided premier-quality estate planning advocacy for clients throughout New York for more than 25 years, our team of top-rated advocates can bring the sound legal counsel and strategies you need to guard your and your family’s interests.

Call (516)-928-6594 or get in touch with us online today to discuss your situation.

December 16, 2016 by Davidov Law Group

When a person passes away, their assets are ordinarily distributed according to the terms of their will through probate court. With that being said, not all assets are required to go through this process. Obvious assets which need to go through probate are those that are titled in your name only, such as vehicles, property, investments, and more, as only the probate court can remove your name from an asset’s title after your death.

Assets which generally do not have to be probated include:

Jointly owned assets: Assets which are owned jointly, such as with a spouse, will automatically transfer to the surviving owner in the event of your death without the need for probate. If the surviving owner dies without adding another owner, or if both owners pass at the same time, it must be probated before it can be distributed to heirs.
Assets with a valid beneficiary designation: Certain assets such as insurance policies, IRAs, bank accounts, and retirement plans allow you to name a beneficiary to inherit the funds. If an asset has a valid beneficiary designation, it will only need to go through probate if 1) the chosen beneficiary dies before you or at the same time, 2) the beneficiary is incapacitated, or 3) if the named beneficiary is a minor.
Assets held in a trust: Assets which are held in a trust, such as a revocable living trust, will not be required to be distributed in probate. With that being said, testamentary trusts established in your will are not exempt from probate. Likewise, any assets left out of your living trust will likely still need to be probated.

How Can Avoiding Probate Be Beneficial?

Though necessary in many situations, probate can be a notoriously complex and costly process, oftentimes placing a heavy burden on a person’s family after they have passed. Probate court can tie up property for months or even years, along with court fees that can take up to 5% of an estate’s value. For this reason, setting up an estate plan which reduces or eliminates the need for probate can end up being a great gift to your family.

At Davidov Law Group, our Nassau County estate planning lawyers have been helping individuals avoid probate with effective and strong legal counsel for more than 25 years. To find out more about how our team of advocates can help you plan for your future, contact our office online or call us today at (516)-928-6594.

November 28, 2016 by Davidov Law Group

Most people believe that naming beneficiaries in their last will and testament is their only option for leaving property and assets to surviving loved ones at the time of their death. While this is indeed an option, perhaps a better option is to use a legal tool known as a living trust. A living trust, also known as an “inter vivos” or “revocable” trust, is a written legal document through which your assets are transferred to a trust which you control during your lifetime. At the time of your death, your assets are then transferred to your designated beneficiaries by your chosen representative.

Here are the top ways in which a living trust can help you:

You can avoid probate: One of the greatest ways in which a living trust can benefit you and your family is that it can allow you to completely avoid the hassle and cost of probate. Even with a valid will, your estate would ordinarily have to go through probate and its associated legal proceedings before your assets would eventually be distributed, potentially taking months and costing your family thousands in legal costs. With a living trust, on the other hand, your assets are immediately transferred to your successor trustee and distributed as instructed.
Protection against court challenges: While court challenges against wills and living trusts are rare, living trusts are largely considered to be far more difficult to attack. Since living trusts require your continued involvement after their creation, this can often be seen as evidence that you were legally competent to manage your affairs.
You can avoid a conservatorship: In the event that you should become incapable of managing your living trust, such as through physical or mental illness, your successor trustee will be able to easily step in on your behalf. Without this authority, your family would instead be forced to go to court over the control of your financial matters – an oftentimes painful and highly public process. Most trust documents require the primary trustee to be certified as incapacitated by two physicians before the successor trustee may assume control.

Create a Living Trust Today – Dial (516)-928-6594

Nobody knows what the future holds. As such, it is important you take control and plan early to ensure your wishes are protected. At Davidov law Group, our Nassau County estate planning lawyers can eliminate the guesswork of creating a comprehensive estate plan and guide you towards a legal solution that is right for you. To find out more about how our team of top-rated Super Lawyers® can do for you, schedule your confidential case review today.

November 21, 2016 by Davidov Law Group

While nobody ever wants to entertain the thought of their own death, it is an inevitability that must be planned for ahead of time. One of the most important ways for you to plan your final affairs is to draft a thorough and legally sound last will and testament. This document will provide your surviving loved ones with clear instructions regarding how you want your property and assets to be distributed. But, like many legal matters, creating a will can be complex and somewhat confusing at first glance. Where do you even begin, and what exactly should you include within your will’s language? Our firm has put together a quick list of matters that must be addressed when drafting your will to ensure your wishes are properly memorialized.

Decide what property to include: To begin, make a list of your significant assets and determine which you will include in your will and which you will distribute through other means. While real property, vehicles, and more may be included within your will, assets such as jointly-owned property, proceeds of a life insurance policy, or money in certain retirement accounts may require alternative methods to be distributed, such as a payable-on-death account or a living trust. Likewise, it is important to remember that if you are married, both you and your spouse must each make a separate will, and you may only leave your share of assets you jointly own with your spouse. An attorney can help you sort through your assets and determine the most appropriate method for each.
Decide who will inherit your property: Once you decide which property to include, your next priority will be to determine who gets what. While this may seem relatively straightforward, things can get complicated if you are considering leaving certain individuals out of your will, such as your spouse or children. Once you decide, make sure to include alternate beneficiaries in case your first choices do not survive you.
Name an executor: Every will must name someone to serve as an “executor” or “administrator” who will carry out its terms, including distributing your assets and ensuring that your final debts are paid. Make sure you choose someone you trust and that they are willing to serve this responsibility when the time comes.
Choose guardians: If you have children younger than 18, it is imperative you decide who you want to raise them in the unlikely event that you and your child’s other parent should be unable to care for them. Prospective guardians must be at least 18 years of age and should have a genuine concern for your children’s welfare. It is also important to consider any special needs of your children, the health and financial stability of your chosen guardian, and whether or not they share the same values.
Choose someone to manage your children’s property: If you have chosen to leave property or money to your minor children, you must also choose someone to manage whatever they inherit until they become of age. This person may be considered a property guardian, a property custodian, or a trustee depending on your state.

Prepare for the Future with Davidov Law Group

While many websites provide do-it-yourself will creation forms, they often contain legal loopholes or are so generic that they fail to cover all issues that may arise in the event of your death. At Davidov Law Group, our skilled Nassau County estate planning attorneys can walk you step-by-step through the process of creating a comprehensive will and estate plan, ensuring all aspects of your and your family’s future are covered.

To find out more about what our 25+ years of experience can do for you, call (516)-928-6594 or contact our office online today.

November 2, 2016 by Davidov Law Group

Clients with Interests in Family Held Entities Urged to Consider Transfer Tax Planning While Discounts Remain Available

Minority and marketability discounts are important benefits in transfer tax (estate and gift tax) planning for clients with closely held family entities and businesses, such as limited liability companies (LLCs), closely held corporations and limited partnerships (LP). However, these discounts – which allow for significant transfer tax savings – may expire in the near future.

Proposed regulations under Internal Revenue Code Section 2704 were issued by the Department of the Treasury on August 2nd and may severely restrict or even eliminate the availability of discounts in transfer tax planning. The use of discounts is currently an important benefit of transfer tax planning with interests in family held entities in that the discounts allow for significant transfer tax savings.

For example, let’s assume a client owns 100 percent of a Real Estate LLC which is valued at $10,000,000, and would like to gift 35 percent interest in the LLC to her children. Since an owner with 35 percent interest cannot force liquidation of her interest and may not be able to transfer the interest freely, there are minority interest and marketability discounts available which have the potential to significantly decrease the value of the transfer. If the discounts (computed by a qualified appraiser) were determined to be 30 percent, then the gift tax value would be $2,450,000, resulting in a reduction in value of $1,050,000. Without the use of discounts, the gift tax value of the interest is $3,500,000. This example clearly illustrates the benefits of utilizing discounts as it reflects a potential gift tax savings of $420,000 ($1,050,000 X 40 percent.

Many practitioners, including those in our firm, predict that the available discounts for transfers of closely held interests between family members may be completely, or mostly, eliminated.

The Treasury’s desire to curtail the use of valuation discounts has been in existence for quite a while. The issuance of these proposed regulations is a large step towards the accomplishment of its goal. There is currently a window of opportunity to execute estate plans using valuation discounts. Now is the time to act while the window of opportunity exists.

We expect taxpayers to have until the end of 2016 to take advantage of these discounts while they remain available, and therefore urge clients to act quickly if they have a family business and transfer tax planning is something they have considered.

Our law firm is available to assist you and your clients in any estate and gift tax planning that you may be doing, with regard to obtaining a valuation of the interest being transferred.

October 27, 2016 by Davidov Law Group

When a person passes away, no matter how much estate planning they accomplished, probate to some degree will be necessary to sort through their assets and interpret their will or trust. In most cases, somewhere in their estate plan, there is named an estate administrator. This person is now formally in charge of overseeing the management of the estate as it moves through probate.

For many estate administrators, they have no idea what their newfound duties entail, probably because they never knew they had been given the title in the first place. If you are in the same situation and scratching your head about what to do next, check out this list of some of the basic duties of an estate administrator.

Notify others: If you didn’t know you were going to be an estate administrator for your loved one’s estate, probably no one else did, either. You will need to notify interested parties that you are now the administrator, as appointed by the estate and confirmed by the court. Heirs, beneficiaries, family members, and creditors should be told first and foremost.
Arrange the funeral: It is not uncommon for an estate administrator to be tasked with arranging the funeral and burial of the decedent. Sometimes close family members are willing to assume this duty, so it might be worth checking with them if you feel your plate is already full enough.
Catalogue assets: Before an estate can be distributed, you need to know what’s in it. The estate administrator has to collect and inventory all assets of the estate. Additionally, appraisals should be completed while the catalogue is created so the true value of items can also be known.
Repay debts: It might seem fairly harsh but creditors often get first dibs to estate assets before friends and family members do. An estate administrator has to identify all valid debts and sell off appropriate pieces of the estate to satisfy those debts as much as possible. If your loved one passed away with a considerable amount of debt, it could be likely that no one but creditors get anything.
Distribute inheritances: When the debts are paid and the estate is completely catalogue, beneficiaries can start collecting their inheritances. The estate administrator oversees this process to make certain no one is cheated by another, or that nothing is left in the end without an inheritor.

Your Fiduciary Duty & Legal Assistance

In addition to the aforementioned checklist of tasks, an estate administrator automatically has a fiduciary duty to the estate. In basic legal terms, the fiduciary duty is the administrator’s duty to always act with honesty and good intentions, and to always do what they can within reason to follow the estate plan as close as possible. Do you promise to do your best and be a good person? Perfect – you have accomplished your fiduciary duty.

If you are feeling overwhelmed by all of the duties of an estate administrator, know that there is no law that says you have to go through this on your own. You always have the option of hiring legal help, and it is recommended that you do so as soon as you know you’re an administrator. If you live in New York, contact our Nassau County estate planning attorneys from Davidov Law Group for all the assistance you need. We have more than 25 years of total legal experience we can put to use for you, providing the know-how and comfort you require.

October 13, 2016 by Davidov Law Group

Estate planning is an effective way to tell your loved ones what to do with your property and assets after you pass away. For many people reaching their golden years, wills are the go-to estate planning tool, and for good reason. Wills allow the testator to clearly state what they want to be inherited by whom and why. “My niece gets my car because she is an auto enthusiast,” for example, is easily interpreted during probate and shouldn’t lead to troubles or arguments.

But what happens if someone passes away and never bothered to make a will or living trust? It might seem like an unthinkable blunder but it actually happens far more often than you may realize. Actually, you might want to take a second and think, Have I made a will?

Following the State’s Rules of Inheritance

If you haven’t completed your estate plan with a will and pass away, the legal term is dying intestate. At this point, the state’s probate courts are in control of who gets what according to their intestate laws. Every state can ratify their own intestate laws but, for the most part, the process of finding inheritors is the same.

The intestate laws that apply to your property and assets are affected by your legal status upon passing:

Single, no children: The entirety of your estate will likely go straight to your parents. If you have no surviving parents, it will split evenly among your siblings. No siblings? Relatives start to be considered, starting with close blood relatives and petering out at a few lines of lineage away. If absolutely no one can be identified as your relative, there is a chance that your assets will be given to the state.
Single, with children: The estate will be split evenly among your children, without consideration for your parents or siblings.
Married, no children: This can become complicated based on the details of your relationship. In some cases, your estate will go entirely to your surviving spouse. In others, a portion of it may be given to your parents.
Married, with children: Generally, one-third of your estate’s value will be given to your spouse and the rest will be split among your children. If your children were younger than 18, the whole of the estate will likely go to your spouse, as they are assumed to have fiscal responsibility.

Your Will is Your Wishes

No matter how you approach the situation, dying intestate will create complications for your loved ones. Each case will be a little different from the next, and within this gray area are the recipes for serious legal troubles and headaches for potential inheritors. If you want to know that your wishes are going to be carried out and your loved ones are happy, you need to make a will.

You can come to Davidov Law Group for all your will and trust needs. Our Nassau County estate planning attorneys can bring 25+ years of collective legal experience to your case, allowing you to rest easy knowing that an entire team of professionals is helping you and your family. Contact us today and ask for a personalized consultation.

Major Law Changes Affecting Seniors