Elder Law

February 11, 2011 by Davidov Law Group

Choosing a nursing home for a loved one is a highly stressful experience. Both emotions and finances are involved. Having counseled numerous families during these difficult times, I understand your feelings and am providing these suggested questions to guide you in choosing a nursing home.

Do I like the location?

Is the nursing home facility near loved ones, friends, church, and favorite places such as parks, libraries, and museums?

Is the staff highly trained, certified, and available?

What is the staff to resident ratio? What training does the staff receive? What certification does the staff have? Is the nursing home administrator certified? Is the nursing home facility itself state certified? Are there doctors available when needed? Are there clergy, personal attendants, and an activities director available on a regular basis?

Will my loved one receive all of the personal care she needs?

In the event that your loved one’s medical condition worsens, can she stay at this particular nursing home? Is there a trained same gender staff member to help with all private matters such as dressing, toileting, and bathing? Is there a daily schedule?

How’s the food?

What’s the quality and quantity of the food? Are there food choices at each meal? Are snacks available for the resident 24/7? Is the resident able to offer snacks to guests? Do residents eat in their rooms or in a central dining room? Are the kitchen, dining room, and patient’s room clean before, during, and after meals?

Is the nursing home facility comfortable?

Does the facility look, smell, and feel clean? Is the facility attractive and comfortable? Is the facility safe? Are there courtyard or porch sitting areas? Is the facility properly lit and furnished? Are there rooms for private gatherings? Are there common rooms for group concerts, crafts, and Wii games? How often are patient rooms cleaned?

Cost and contract?

What are the total costs and fees? Does the nursing home facility accept Medicare and Medicaid? What if your loved one runs out of money? What other terms are in the contract?

If you have questions about choosing a nursing home for your loved one, consult with a qualified estate planning and elder care attorney.

December 24, 2010 by Davidov Law Group

When the value of your estate exceeds the estate tax exclusion amount your estate planning objective is to rearrange your assets to create space and bring the value of your estate under that exclusion. Giving gifts is one way of doing this, but of course the IRS is well aware of this so there is the gift tax to contend with. However, there are financial instruments that can be used to facilitate tax-free gift giving when they are successfully implemented, and one of these is the grantor retained annuity trust or GRAT.

The objective of the grantor retained annuity trust is to pass along the appreciation of volatile assets, so when you create the trust you fund it with things like stocks and other securities, business interests, and real property. You name a beneficiary and set a term during which you as the grantor or donor will receive annuity payments from the trust. This term can be as long as you want it to be but the assets in the trust will go back into your estate if you die before the term expires so you have to keep this in mind.

The strategy we are presenting here is the “zeroed out” GRAT. The funding of the trust constitutes a taxable gift, but the IRS sets the value of this gift using the Federal Midterm Rate that is in effect during the month that the trust was created. This taxable value will be reduced by your retained interest in the trust, so if you “zero it out,” i.e. take payments out of it throughout the term that, when combined, are equal to the original taxable value, you owe no gift tax. At the end of the term, if the assets appreciated beyond that original taxable value your beneficiary assumes ownership of this remainder tax-free.

How to Choose a Nursing Home: Suggested Questions