This repeal has the potential to affect the estate plans of millions of Americans, as wills and trusts that were once properly prepared may no longer provide protection for spouses or other beneficiaries upon the death of a family member. The lawyers at Littman Krooks LLP have carefully studied the potential impact of the repeal of the Federal Estate Tax and encourage attendance for those who want to ensure that their estate plan is not obsolete.

The seminar will be offered in two sessions on Wednesday May 12, 2010, at the Duchess County Regional Chamber of Commerce in Poughkeepsie, NY. Registration for the morning session begins at 9:30 a.m. in Room 400. The morning session will be held from 10:00 a.m. to 11:00 a.m. Registration for the afternoon session begins at 3:30 in Room 400. The afternoon session will be held from 4:00 p.m. to 5:00 p.m.

For families whose loved ones die in 2010, the repercussions of the Federal Estate Tax repeal could only add to their grief at the passing of their loved one. The seminar will cover the challenges facing estate planning in 2010 and the consequences of this unusual appeal. This appeal has created unprecedented uncertainty in the world of estate planning, and the lawyers at Littman Krooks LLP wish to offer their guidance in these uncertain times.

Attendance to this event is limited, so those interested in attending must reserve a place by phoning Melissa Hayn at 845-896-1106 or emailing mhayn@littmankrooks.com.

For more information on the firm, visit www.littmankrooks.com. Littman Krooks LLP offers legal services in several areas of law, including elder law, estate planning, veterans’ benefits, special needs planning, special education advocacy, and corporate and securities.

Parents’ intentions regarding gifts to children should be made clear in their estate planning documents. A document could state, for example, that you are not making any adjustments based on gifts you have made. Doing so will make it clear that none of the children should receive a reduced share of the estate based on past gifts. On the other hand, you could list past gifts that have been made and carefully explain why one child is receiving a reduced share of the estate.

Loans made to your children should also be addressed in your estate planning documents. Verbal loans can be particularly tricky. You might, in this case, make a provision in your documents that classifies all verbal loans as gifts. If, however, there are verbal loans that you do not wish to have considered as gifts, you should state this in writing. If you wish to consider loans made to your children as advances on their inheritance, then this should also be specified in your estate planning documents.

Carefully considering and planning how you would like to deal with gifts and loans to your children will help avoid conflict among them in the future. You should consult an estate planning attorney to ensure that your legal documents provide guidance regarding your intentions.

Learn more at Littmankrooks.com.

A resident must be considered “chronically ill” in order for assisted care expenses to be deductible. This means a doctor has certified that the individual cannot perform at least two activities of daily living — for example, eating or bathing — and that the individual requires supervision because of a cognitive impairment. The services must also be administered in accordance with a plan of care prescribed by a doctor, nurse or social worker. Generally, only medical expenses my be deducted, but room and board expenses may qualify for deduction if the patient is chronically ill and in the nursing home for the purpose of medical care.

For more information, visit http://www.littmankrooks.com.

A trust is simply a legal document that allows an individual to determine how and when his or her assets will be distributed upon death. The main advantage of a trust is that it allows property to be directly transferred to beneficiaries, skipping the sometimes costly and lengthy court-supervised probate process. Trusts can also help with asset protection, gifting, and tax planning.

Placing assets into a well-managed trust can help optimize financial gains and benefits earned during one’s lifetime through work, good planning, and investment. Anyone wishing to protect money and property from taxes, creditors, and the expense of probate can benefit from the flexibility and privacy of a trust.

A gift made under $13,000 in 2009 will not count against your $1 million exemption. This is known as the annual gift tax amount exclusion. Gifting programs take advantage of these exemptions, mapping out a way to pass assets to heirs during one’s lifetime with minimum tax penalties. Assets can be kept within the family or passed to any charities one may feel drawn to. A gifting program not only helps protect assets, it also enables families to decide how hard-earned assets will be spent and allows heirs to benefit from current tax law.

To learn more about New York elder law, New York Estate Planning, NY Elder, and New York Special Needs Planning, visit LittmanKrooks.com.

However, employing spousal refusal is not tantamount to abandoning a spouse. Spousal refusal is simply a way of preventing assets from being drained over the course of an expensive nursing home stay. With the proper planning, spousal refusal can protect assets while at the same time permitting the spouse who needs long term care to qualify for Medicaid benefits. This will decrease the financial burden on the non-institutionalized spouse, allowing him/her to provide the emotional care and comfort to the ailing spouse.

To learn more about New York elder law, New York Estate Planning, NY Elder, and New York Special Needs Planning, visit LittmanKrooks.com.

Understandably, the Revocable Living Trust is an attractive option. Probate can take months, or longer, depending on the complexity of the estate. Even in the case of an uncontested Will, the court fees involved with the probate process can add up. The assets in a Living Trust, however, can be transferred immediately with little expense. Incorporating a Living Trust into your estate plan will save your beneficiaries time, money and the hassle of dealing with probate.

To learn more about New York elder law, New York Estate Planning, NY Elder, and New York Special Needs Planning, visit LittmanKrooks.com.

In order to use a trust for asset protection, the trust must be irrevocable. Since you cannot change the terms of an irrevocable trust, courts have held that those assets no longer belong to you and can therefore not be touched by debt collectors or other judgments against you.

Types of irrevocable asset protection trusts include spendthrift trusts, discretionary trusts, personal and self-settled trusts, an asset protection trusts. Putting your money and property into the right kind of trust protects you and your assets.

To learn more about New York elder law, New York Estate Planning, NY Elder, and New York Special Needs Planning, visit LittmanKrooks.com.

Asset protection, while valuable to everyone, is most necessary for certain types of individuals.

These include:

• Business owners;
• People who are facing difficulties such as divorce or medical issues in the near future;
• People who are employed in industries that have a high rate of litigation such as medicine or pharmaceuticals; and
• Wealthy individuals

Everyone should engage in some degree of asset planning to the best of their ability. Even if you do not fit into one of these categories you should make sure to protect yourself and your property from unforeseen events.

To learn more about New York elder law, New York Estate Planning, NY Elder, and New York Special Needs Planning, visit LittmanKrooks.com.

You may want your business to be liquidated upon your death and have the resulting assets distributed to your loved ones as you see fit. If you have partners, or even if you do not, you may wish to see your business continue in which case you need to have a plan for succession of ownership.

No matter what your wishes are for your business, working with a lawyer to create a proper estate plan will ensure that your hard work will continue to pay benefits even after you are gone.

To learn more about New York elder law, New York Estate Planning, NY Elder, and New York Special Needs Planning, visit LittmanKrooks.com.

An adult should be named to manage any money and property your minor children inherit. You may choose to give this responsibility to their guardian, or you may appoint someone specifically to administer their finances and maximize their benefits.

To learn more about New York elder law, New York Estate Planning, NY Elder, and New York Special Needs Planning, visit LittmanKrooks.com.

• Life insurance proceeds.
• Retirement plans, including 401(k) plans and IRAs.
• Trustee accounts such as those created by a revocable living trust.
• Transfer on death (or TOD) securities accounts.
• Pay on death (or POD) assets, a common title on U.S. savings bonds.

There can be significant financial and tax benefits for your beneficiaries when these designations are used. Each option must be carefully coordinated with your overall estate plan.

To learn more about New York elder law, New York Estate Planning, NY Elder, and New York Special Needs Planning, visit LittmanKrooks.com.

Probate courts also handle cases that determine the validity of a Will. Wills that are not written by an attorney may be open to legal challenge and could be rendered invalid. Help your family members avoid the hassle of the probate process by working with a lawyer to draft a legal Last Will and Testament and know your assets will be distributed according to your plans.

To learn more about New York elder law, New York Estate Planning, NY Elder, and New York Special Needs Planning, visit LittmanKrooks.com.

This reality has led some parents to intentionally disinherit a child with a disability in order to protect the child’s benefits. Disinheriting a child is not a viable solution since they depend on you for much more than just financial security. Instead, consult an attorney about setting up a supplemental needs trust. Money willed to a trust can be disbursed by a trustee and will not affect your child’s ability to receive government benefits.

To learn more about New York elder law, New York Estate Planning, NY Elder, and New York Special Needs Planning, visit LittmanKrooks.com.

Whether someone feels that their rights have been denied by the will and probate court, or when a will is being contested, a lawyer with experience and compassion is an absolute necessity. Nobody wants to get in a fight while mourning, which is why the best solution for estate litigation, is a lawyer that will work hard to form a quick, peaceful resolve.

To learn more about New York elder law, New York Estate Planning, NY Elder, and New York Special Needs Planning, visit LittmanKrooks.com.

When a spouse becomes ill, the well spouse is suddenly faced not only with the emotional toll, but the burden of handling all the financial responsibilities and long-term planning on his or her own. If the ill spouse always handled the financial matters, even paying bills can be overwhelming.

Based on the experiences of many of our clients, it has traditionally been the primary breadwinner who managed family finances. But regardless of who kept the family books, often the other spouse is in the dark on the family’s financial matters and recordkeeping. Additionally, the well spouse may not know

what long-term planning considerations have been made for her or what is even available.

This article will provide an outline of things to consider and steps to take when the financial responsibility

and long-term care planning burden passes to the spouse who has generally not had to deal with these issues previously. Though not always possible, it is important to be as proactive as you can and review and familiarize yourself with these matters before a spouse becomes ill.

Locate and Organize Documents

First, it is very important to locate and organize your documents to see what you have, what long-term planning is in place and what needs to be updated. Items to look for include:

• Identification documents: Social Security card, Medicare card, birth and marriage certificates;

• Military records;

• Insurance documents: including health, automobile, homeowners, life, long-term care;

• Legal documents: Last Wills and Testaments, Trusts and Advance Directives (Power of Attorney,

Health Care Proxy, Living Will, HIPAA Release and Burial Designation);

• Financial Information, including bank, brokerage and retirement accounts, stocks and bonds, income, tax records, debts and bills; and

• Any other important items including: the deed to your home, title and registration to automobiles, and safety deposit box.

Understand Your Present Situation

Once you locate your documents, it is important for you to learn what they are and what purpose they serve. Understand what your assets and expenses are. Regarding your assets, careful analysis should be

made as to what type of account(s) you have, how much money is in it, how the account(s) is(are) titled (who owns it) and whether there are any beneficiaries.

Know what your income is and where it comes from. Does your spouse receive a pension? If so, will it continue if he predeceases you? Do you have any retirement accounts (including IRAs, 401ks, profit sharing plans) that you are required to take minimum distributions from because you have reached the age of 70½?

Important resources are available to aid you with this undertaking. Many senior centers offer programs to assist with managing household finances and bills. They also may have volunteers who will review your Medicare coverage with you as well as your medical bills so you understand what you are being charged. If your spouse dealt with the same bank for several years, he may have developed a personal relationship with them and they may work with you to review your accounts. Additionally, an elder law attorney can play a vital role in making this process easier for you. He or she can meet with you either at your home or in the office and go through and explain all of your paperwork with you.

Simplify Your Life

You can set up automatic bill payments to have your utility, insurance and telephone bills paid directly from your checking account every month. If your spouse always prepared and filed income taxes on his own, perhaps it would ease the burden for you by hiring an accountant to prepare your taxes.

Social Security

If your spouse dies, it is important to contact the Social Security Administration to advise of his death and to make sure you receive all of the benefits to which you may be entitled. You may be eligible for a one-time payment of $255. Also, if you are considered full retirement age for survivor’s benefits, as defined by the Social Security Administration, you can receive Social Security benefits based upon your deceased spouse’s earning record. This can be a significant amount if you either did not work outside of the home or earned less than your spouse during the time you were employed. It is important to know that your full retirement age for retirement benefits may be different from your full retirement age for survivor’s benefits. Also, if you are receiving survivor’s benefits you can switch to your own retirement benefit if your retirement rate is higher than the rate you are receiving for survivor’s benefits. The rules are complicated, and, therefore, it is important that you carefully consider all your options before making a final decision.

Health Insurance

You need to understand what type of health insurance coverage you have, including Medicare. If you have Medicare, review whether you have Part A, Part B and/or Part D. Also, if you and your spouse have a retiree health plan through your spouse’s former employer, does it continue if your spouse predeceases you? If it does not, you may be eligible for COBRA. COBRA is federal legislation that allows former employees, retirees, spouses and dependent children to temporarily continue group health coverage that would otherwise be terminated. If you are covered by both Medicare and a group health plan as part of your spouse’s retirement and your husband dies, then you may have the right to elect COBRA continuation coverage with respect to the group health coverage for the maximum period of coverage available (18 to 36 months). If you become covered by Medicare at any time after an election of COBRA continuation coverage your COBRA continuation coverage will probably end. It is important to know that you only have 60 days from the date of your spouse’s death to elect COBRA coverage so action must be taken promptly. Also, COBRA coverage can be very expensive (i.e., employer can charge up to 102 percent of the employer premium). The additional 2 percent is designed to cover administrative costs.

Legal Documents

Make sure your legal documents are in order and up to date. Set up an appointment with your elder law attorney to review them. If your spouse has become ill, consider appointing someone else as your executor under your will or as agent under your power of attorney and health care proxy. You should review with your attorney whether you need to establish a trust to protect your assets should your spouse need long term care either in a nursing facility or at home.

Long-Term Care

Long-term care is not limited to nursing homes. Today, most care is received at home and it is important for you to understand what options you have available to you and your spouse. Review whether you have long term care insurance and what coverage it provides. It is important to familiarize yourself with the differences between Medicare and Medicaid and what each program can offer you. Geriatric care managers are available to assist you with care planning assessments and provide solutions to your individual long term care needs. If possible, it is important to review, understand and work on these issues. The more familiar you are with these responsibilities, the more comfortable you will become with them and less fearful of handling them on your own. It will help ease your burden and provide peace of mind so most of your attention can be paid to your ill spouse.

To learn more about New York elder law, New York Estate Planning, NY Elder, and New York Special Needs Planning, visit LittmanKrooks.com.