With the daily demands of caring for your child, you may sometimes forget about his later years when you are no longer around. But it’s imperative to think about how he will be cared for in the future.

One of the most important steps is to make sure your life insurance will offer your child the maximum benefits. But what about the beneficiary? Who should it be?

Many people name a sibling the beneficiary of the special needs insurance policy, but that can cause a problem if the sibling predeceases the child with special needs or is not willing or able to take on the role of a caregiver. It is also unwise to make the child with special needs the beneficiary because that can disqualify him for government assistance.

The best approach is to create a trust, and name the trust as the beneficiary of the life insurance policy. Upon your death, the trustee will administer the trust according to its terms and provide benefits to your child with special needs without making him ineligible for government assistance.

To discuss your particular scenario and to learn more about trusts, it is wise to contact an experienced attorney.

To learn more about New York
elder law, New York estate
planning, or New York
Special Needs visit www.littmankrooks.com.

Ms. Arkontaky will speak about “Lifetime Planning for People with Disabilities” from 2:15 p.m. to 3:00 p.m. Parents of children with disabilities often admit that their greatest fear is what will happen to their child once they are gone, and providing for financial security is a major step towards ensuring quality of life for a loved one with special needs. This involves understanding the relationship between personal assets and eligibility for government benefits, which often play a critically important role. Monetary gifts from well-meaning friends and relatives may actually do harm to a person’s overall financial status if not carefully planned.

Ms. Arkontaky’s practice focuses exclusively on special needs planning, special education advocacy, and guardianship for families of children with disabilities. She has a child with special needs and was a service coordinator for Family Connection – an agency providing case management for families of children with disabilities – prior to attending law school. Her personal and professional experiences enable her to bring added insight to the work she does on behalf of others.

Harriet P. Schleifer, Esq., will speak regarding “Teens, Young Adults and Epilepsy: Transition Planning” from 2:15 p.m. to 3:00 p.m. Transitioning into adulthood is challenging enough for most young people. Students with disabilities may require additional support to successfully transition from high school to the next phase of their lives. What must schools do to help students prepare for adulthood?

Ms. Schleifer has over 20 years of experience in special education advocacy and is the mother of a young man with disabilities. She is also an authority on disciplinary issues relating to both typically developing children and students with special needs.

Littman Krooks LLP, which celebrates its 20th anniversary this year, offers legal services in several areas of law, including special needs planning, special education advocacy, elder law, estate planning, veterans’ benefits, and corporate and securities. The firm’s offices are located at 655 Third Avenue, New York, New York; 399 Knollwood Road, White Plains, New York; and 300 Westage Business Center Drive, Suite 400, Fishkill, New York. For more information about Littman Krooks LLP, visit www.littmankrooks.com.

Long-term care insurance plans usually pay a daily benefit for a pre-determined period of time. When determining how much long-term care insurance to purchase, consider what daily benefit will be necessary to cover one’s care costs and how long the policy will need to pay the benefits. Policies generally cover a minimum period of two years. Longer periods of coverage and plans that cover the policyholder’s full lifetime are also available. Five-year plans are popular, since they can be used to cover costs during the five-year Medicaid look-back period for transfers of assets.

Long-term care insurance policies that pay a high daily benefit or cover an extended period of time can be costly. An estate planning professional can help you tailor a plan to fit your long term care needs and budget.

To learn more about New York
elder law, New York
estate planning, visit http://www.elderlawnewyork.com

Your letter of intent should be updated annually, so that it always contains the most accurate information. The needs of your child are sure to change over time. Once your letter of intent has been completed, a copy should be kept with your attorney or in a clearly marked, safe place at home. Although a letter of intent is not a legal document, a special needs attorney can guide you through the process of creating this important document.

To learn more about New York elder law, New York estate planning, or New York Special Needs visit http://www.littmankrooks.com.

• Are there any social activities that are important to your child that you would want continued after your death? You may, for instance, wish to provide funds for your child to take annual vacations to see relatives or to attend sporting events.
• Does your child like to go out to dinner with friends or to the movies?
• Are there any specialty items, such as computers, DVDs, or video games that improve your child’s quality of life?

After you have considered all of the things you want your child to continue to enjoy, you need to determine how much this is going to cost. To calculate how much is needed in order to properly fund the trust, you may want to keep track of everything you spend on your child over the course of one month. After you have calculated these expenses, you may wish to add periodic expenses that might come up quarterly or annually. These quality of life considerations could make the difference between providing your child with a basic existence and a lifestyle closer to that which you would have sought to provide yourself.

To learn more about New York elder law, New York estate planning, or New York
Special Needs visit http://www.littmankrooks.com.

(1) A last will and testament.

(2) A general durable power of attorney (“GDPA”). This document designates an agent to act on an individual’s (here, a parent’s) behalf with regard to financial affairs. Parents’ GDPA should allow their agent (designated in the GDPA) to make discretionary non-support distributions to, or for the benefit of, the child with special needs and to establish a special needs trust (SNT) for the child.

(3) A revocable living trust. During a parent’s period of incapacity, the parent’s revocable living trust should contain language that permits the trustee to make discretionary non-support distributions to, or for the benefit of, the child with special needs. Upon the parent’s death, the child’s inheritance should be distributed to a third-party SNT previously established by the parent for the child’s benefit.

Having all of these documents in order will make the transition of care easier for the child and a new caretaker and/or guardian.

To learn more about New York
elder law, New York estate
planning, or New York
Special Needs visit href="http://www.littmankrooks.com">http://www.littmankrooks.com.

There are three major types of pooled trusts:

• Third party: This type of trust is established with the assets of parents or others who wish to give to a loved one with disabilities. Importantly, state Medicaid does not have to be reimbursed. Upon the death of the beneficiary, 50% of the remaining trust assets may go to pre-designated beneficiaries, and 50% must remain with the trust for the benefit of other persons with disabilities.

• Self-settled: In this type of trust, the money comes directly from the beneficiary. After the beneficiary passes away, there is no payback to Medicaid. Instead, any remaining assets are kept by the trust for the benefit of other persons with disabilities.

• Income only: This type of pooled trust allows the Medicaid applicant who earns more than the allowable income to put the excess income in a pooled supplemental needs trust so that he may qualify for Medicaid.

If you are considering a pooled trust account as a planning option, a special needs trust attorney can provide guidance regarding which type of trust is best for you and your loved one.

Learn more at Littmankrooks.com.

Wills are living documents, meaning they can be modified or amended at any time to reflect changing circumstances. However, busy schedules may prevent changes from being made in a timely manner. Naming alternate beneficiaries will prevent the need to modify a Will during already difficult times.

Naming alternates in a Will is a good practice in general. Families with young children should name guardians and successor guardians. Alternate executors may also be named should the original executor be unable to perform his or her duties. Careful planning will help ensure wishes are carried out even when unexpected events arise.

Bernard Krooks is a New York Elder Law and New York Estate Planning lawyer with offices in White Plains, Fishkill, and New York, New York. To learn more, visit http://www.littmankrooks.com.

Some examples of powers that a trust protector may be given include: removing or replacing a trustee, handling disputes between trustees and/or beneficiaries, amending the trust, adding beneficiaries, changing disbursements according to changes in beneficiaries’ circumstances (such as divorce), and having the final say over investment of the trust’s assets. The trust document can be used both to name a trust protector and to define his or her powers.

Although anyone may serve as a trust protector, it is generally a good idea to hire an independent third party or professional, since s/he may have to make decisions that affect beneficiaries or resolve conflicts between beneficiaries should any arise. An experienced elder law and estate planning attorney can help ensure that a trust protector is given the right balance of power to oversee a long-term trust effectively.

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

Same sex couples are not eligible for Social Security spousal benefits. When two married individuals retire, the spouse with the lower monthly benefit can choose to take either his or her own benefit or one-half the higher-earning spouse’s benefit, whichever is greater. For example, if one member of a married couple qualifies for a yearly benefit of $15,000 and the other for a yearly benefit of $6000, the lower earning spouse could instead choose to receive $7500 as a spousal benefit. A lower earning member of a same sex couple does not qualify for the higher benefit.

Same sex couples are also not eligible for survivor benefits, in which a surviving spouse may qualify for the higher-earning spouse’s benefit after s/he has passed away. Legally adopted minor children, however, are eligible for survivor benefits. Since New York law permits single, joint and second-parent GLBT adoption, same sex couples can and should take advantage of the law and legally adopt any minor children to whom they are not biologically related.

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

Financial planning for a child with special needs is the first step in providing a solid base of lifetime support. Once the child turns 18, his or her income will be used to determine eligibility for public benefits. Earning too much — for example because of contributions from parents — will cause the loss of public benefits. This can be avoided through a Supplementary Needs Trust. Funds paid into the Trust will not be counted as income and, therefore, will not affect eligibility for benefits. Planning for lifetime care must include instructions as to how the funds in the Trust are to be distributed and who will manage the trust.

Other questions to be considered:

• Do special arrangements need to be made with a college or other educational institution?
• What arrangements need to be made for housing?
• Will the individual need care of a legal guardian even after turning 18?
• Can the individual execute a Power of Attorney or Health Care Proxy?

Growing up and moving into adulthood is difficult for any adolescent, and even more so for a child with special needs. However, appropriate special needs planning can help make the transition go more smoothly for the whole family.

To learn more, visit http://www.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.

Once a minor child has been legally adopted, parents should draft an Authorization for Consent to Medical Treatment of a Minor, detailing who is authorized to make medical decisions for the child, and appoint a guardian and successor guardians. Taking the proper legal precautions will ensure that minor children will be cared for in accordance with the wishes of their parents and primary caregivers.

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

The Section 811 program provides a benefit to individuals with disabilities in the form of housing vouchers. These “Section 8” vouchers help low income individuals afford housing by paying the difference between the rent and what the tenant can afford. Section 8 vouchers, paid to government-approved landlords, increase housing options for people who may otherwise not be able to afford to rent an apartment. The Section 811 program provides such vouchers specifically to individuals with disabilities.

According to a release from Senator Menendez’s office, the legislation would improve and expand HUD’s Section 811 program by:

• Increasing the number of available housing vouchers for people with disabilities and ensuring that vouchers continue to be used to help people with disabilities.

• Encouraging the integration of mixed-used developments into the program and allowing funds from Low Income Housing Tax Credits and the HOME program to be used.

• Extending the length of rental assistance contract terms from 20 years to 30 years for projects using Low Income Housing Tax Credits.

The bill has attracted many endorsements, including support from such organizations as the National Association of County Behavioral Health and Developmental Disability Directors, the National Council for Community Behavioral Healthcare, the National Disability Rights Network and the National Multiple Sclerosis Society.

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

This week, the administration declared in a brief that the act is discriminatory and should be repealed by Congress, although the Justice Department will still offer a reluctant defense of the act. The brief intends only to clarify the official stance of the administration in favor of repeal of the act.

Assistant Attorney General Tony West wrote, in the brief filed with the U.S. District Court for the Central District of California, “This administration does not support DOMA as a matter of policy, believes that it is discriminatory and supports its repeal. Consistent with the rule of law, however, the Department of Justice has long followed the practice of defending federal statutes as long as reasonable arguments can be made in support of their constitutionality.”

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

We have commented on Michael Jackson’s death and the professional estate plan he created during his lifetime. Jackson protected his children and his assets through a Will, trusts, guardianship appointments, and trustee appointments, making his intentions for his estate clear and legally binding.

From the initial reports on McNair’s death, however,  it appears that he died intestate, meaning he died without a Will. It follows that since he had no Will, McNair’s estate will be divided according to Tennessee law. Reportedly, McNair’s wife will receive 33% of the estate, and his four children will divide the rest. The courts will choose an administrator, which is likely to be his former wife.

Not being able to decide how your personal assets should be distributed is only one of the many downfalls of poor estate planning. Assuming that McNair also did not set up any trusts for his wife and children, his beneficiaries will lose a much greater share of his estate to estate taxes. This is unnecessary. McNair’s beneficiaries will also not be able to take advantage of any creditor protections or gifting advantages that trusts can provide.

Most people recognize the importance of estate planning but believe that it can be put off until some future time. No one likes to think about the possibility of an unexpected death. On the flip side, everyone benefits from estate planning. Everyone, regardless of age or income, deserves to determine the fate of their person and their property in the event that they cannot speak for themselves. Everyone deserves the peace of mind that comes from knowing that their loved ones will be cared for, and their wishes will be carried out.

There are several key elements that should be included in a written revocation of a power of attorney. These are:

• Your name
• A statement that you are of sound mind and your wish to revoke the power of attorney
• The date the original power of attorney was executed
• The person selected as your agent
• Your signature

The document should then be sent to the agent and any other individuals, businesses, or institutions that have a copy of the power of attorney that is being revoked. It is also a good idea to get the old power of attorney back from your agent. If this cannot be done, send the agent a certified letter, stating that the power of attorney has been revoked.

After revoking a power of attorney, make sure you appoint a new agent. An estate planning lawyer can assist you with revoking an old power of attorney and appointing a new one.

Waiting to start on an estate plan until “sometime in the future” or “a life changing event” such as marriage or having children is unnecessary due to amount of flexibility available in an estate plan. In fact, waiting to begin planning can cause undue stress and financial hardship for loved ones should something unexpected occur. It is always important to have an estate, and it is equally important to review the plan regularly to make sure it still conforms to current living situations.

The person named as your attorney-in-fact does not have to be a lawyer. In fact, when choosing a person to act as an agent, the most important characteristics to look for are trustworthiness, organizational and management skills, and good common sense. Depending on the complexity of the estate, it may be a good idea to name someone familiar with financial matters, as well as someone familiar with your wishes and personal habits. Make sure your attorney-in-fact has access to all necessary information, such as accounts, PIN numbers, and passwords that will be necessary should he or she have to begin making financial decisions on your behalf.

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.

• Who should be notified of your death?
• Did you prepare a Will? If so, where do you keep it?
• If you own a life insurance policy, pension, annuity, or retirement account, where are the applicable documents stored?
• Where are the records for your bank accounts, stocks, bonds, or safety deposit box(es)?
• If you own real estate, where are the deeds?
• If you own a business, where are your critical documents stored?

Failure to organize this information and leave accurate instructions about how to retrieve it can be costly. If you own assets such as  stocks, bonds, real estate, insurance policies, and even bank accounts, these assets, if unknown to your family, may be turned over to the state government. This happens more than people may think, with millions of dollars going into state treasuries each year.

Because of income restrictions, leaving assets directly to a child with special needs can cause a greater burden for the child. If he or she has been receiving public benefits, those benefits may be lost. This situation can be avoided through special needs planning and the establishment of a Special Needs Trust. Careful planning and the use of a Special Needs Trust will help ensure that a child with special needs may receive support without losing important public benefits.

Other topics to be discussed during the two-day conference include, Conservation Easements and Ethical Issues in Asset Protection.

Bernard A. Krooks, Esq., is a founding partner of the law firm Littman Krooks LLP, with offices in New York City, White Plains, NY, and Fishkill, NY. He is president of the Special Needs Alliance (SNA). He is past president of the National Academy of Elder Law Attorneys, a fellow of NAELA, past chair of the NAELA Tax Special Interest Group, and former editor-in-chief of the NAELA News. He co-authored the NYSBA publication Elder Law and Will Drafting and is an adjunct asst. professor at NYU Center for Finance, Law, and Taxation. Mr. Krooks is an authority on elder law, special needs planning, and estate planning. He has been quoted in many national publications.

Learn more at http://www.littmankrooks.com.

The urge to ignore or put off estate planning can be particularly strong during a downturn in the economy. However, comprehensive estate planning is more important than ever during tough economic times.

According to Mr. Krooks, everyone should have basic estate planning elements in place, such as a Will and trust documents, all of which should be evaluated on a regular basis. Even as economic circumstances change, these documents remain valid. But, says Krooks, “valid” may not be optimal. Long-term planning must take into account both current circumstances and projected changes in personal finances and the overall economy.

One example of such changes is the continued burden that is being placed on state governments and, in turn, locally administered programs. Krooks continues, “The recession has hit state and local governments hard… It is almost certain that there will be additional cutbacks in long-term care services from government programs. The extent that you have assumed that the government will be there to provide your long-term care needs, that assumption may not be as defensible as it once was.”

Mr. Krooks also suggests that there are some specific circumstances that can serve as indicators that an estate plan needs adjustment. These include:

• Having an estate plan that is more than 5 years old;
• Moving;
• Learning of a family member with a disability;
• Having counted on Medicaid to pay for long-term care expenses;
• Large changes in net worth; and
• Changes in a child or children’s net worth or living situation

Changing economic circumstances can provide an opportunity to reevaluate documents that may be out of date or irrelevant. In addition to helping organize finances and assets in the short term, estate planning during tough economic times has obvious long-term benefits. Continuing to plan and make contributions to trusts, life insurance policies, retirement and other accounts will minimize the overall damage that could be done to your estate in the long-term.

Bernard A. Krooks, Esq., is a founding partner of the law firm Littman Krooks LLP, with offices in New York City, White Plains, NY, and Fishkill, NY. He is president of the Special Needs Alliance. He is past president of the National Academy of Elder Law Attorneys, a fellow of NAELA, past chair of the NAELA Tax Special Interest Group, and former editor-in-chief of the NAELA News. He co-authored the NYSBA publication Elder Law and Will Drafting and is an adjunct asst. professor at NYU Center for Finance, Law, and Taxation. Mr. Krooks is an authority on elder law, special needs planning, and estate planning matters. Mr. Krooks has been quoted in many national publications.

To learn more about estate planning and long term care planning, visit http://www.littmankrooks.com.

Unfortunately, the majority of Social Security disability claims are initially denied. According to the Social Security Administration’s own annual report, in 2006 only 32 percent of disabled workers applying for Social Security disability benefits were determined to be entitled to an award. Those in the position of applying for Social Security should be aware of this issue and prepared to take the next step if an application is denied.

If the Social Security Administration (SSA) determines that an applicant is ineligible for benefits, he or she will receive a letter in the mail with a notification of the denial and a brief list of the medical information that was used to make the determination. This letter is referred to as the initial denial, and the applicant then has 60 days from receipt of the letter to file an appeal in writing. In New York, the SSA assumes that you have received your letter five days after the date on the letter unless other evidence is presented. If no appeal is made within this 60-day window, the SSA closes the case and will take no further action.

After the initial denial, there are three levels of appeal available to applicants in New York: a hearing by an administrative law judge, a review by the Appeals Council, and a Federal court review.

The hearing before an administrative law judge is critical, because in this step, the applicant, witnesses, and a representative may appear before the judge to present evidence. The judge is independent of the SSA and is not bound by the fact that the applicant has been previously denied. The judge’s decision will be based upon the evidence presented at the hearing and a prior review of the case. According to the SSA, it is in the applicant’s advantage to attend this hearing.

If the claim is denied after the administrative hearing, the applicant may still ask for a review by the Social Security Appeals Council. If the Appeals Council decides to review a case, it may decide the case itself or order it returned to an administrative law judge for further review.

In the event that the Appeals Council decides not to review the applicant’s case or reviews the case and still denies the claim, the applicant may file suit before a Federal Court.

The process for appealing a denial of Social Security disability benefits is complicated and can be lengthy. According to the SSA’s own statistics, however, those willing to undergo the process are often successful in having the initial denial reversed. A New York Estate Planning attorney can offer advice and representation throughout the process to help ensure a positive outcome.

The first critical thing that Michael Jackson did was draft a Last Will and Testament (a “Will”). Everyone, especially people with young children, as was the case with Jackson, should have a Will. Although a Will is a basic element of any estate plan, approximately two-thirds of Americans neglect this task. Had Jackson not drafted a Will, a judge, in accordance with California law, would have divided his estate. Since Jackson had a Will, his estate will be distributed according to his wishes: with reportedly 40 percent of going to his children, 40 percent to his mother, and 20 percent to charity.

Not only did Jackson have a Will, he drafted it using very clear, specific language and he appointed professional co-executors: lawyer John Branca, and business executive John McClain. He explicitly referred to his children by name as beneficiaries, and excluded his ex-wife, Debbie Rowe, leaving no doubt as to his intentions. When drafting a Will, it is always safer to be as specific and unambiguous as possible so that there is no chance of a judge or executor misinterpreting your wishes.

In addition to creating a Will, Jackson placed his assets in a living trust, also known as a revocable trust. Much media energy has been expended discussing Jackson’s lavish spending and accumulated debt. Although he did acquire a good deal of debt during his lifetime, at his death, his assets still exceeded his debt by approximately $200 million. By placing those assets in the Michael Jackson Family Trust, Jackson’s executors and beneficiaries will be able to avoid probate, thereby keeping his affairs out of the courts and, ideally, out of the public eye.

Keeping an estate out of probate court through the use of a revocable trust has benefits in terms of privacy, expedience, and cost. The probate process can be both long and expensive, drawing out asset distribution over months, or in some cases, years. At his death, control over Jackson’s assets was automatically transferred to his co-trustees, John Branca and John McClain. Although Jackson’s mother moved quickly to gain control of the family trust, she was unable to do so because Jackson had already named these co-trustees. Branca and McClain will distribute Jackson’s assets in accordance with Jackson’s wishes, protecting his family from invasive court proceedings.

In his estate plan, Jackson also named a guardian, Katherine Jackson, and a successor guardian, Diana Ross, for his children, all of whom are minors. If no guardian had been named, the courts would have appointed one – likely the two older children’s biological mother, Debbie Rowe. Rowe, who had relinquished her parental rights years ago, has petitioned to have her rights reinstated. The courts have yet to make a decision on this issue, but they generally side with the parent’s wishes absent a compelling reason not to.

By naming guardians, Jackson also split the responsibilities of managing his estate and caring for his family. It is a good idea to separate duties in this way if possible. Each responsibility involves unique challenges that may be handled better by a team of diverse individuals.

Some experts have indicated that Jackson could have made a better choice of guardians, given the ages of his children. Katherine Jackson is 79 years old and will be 90 years old by the time his youngest son turns 18 years old. Diana Ross is 65 years old. It is a good idea to consider age when appointing a guardian. Young children take a lot of time and energy. Also, should a guardian or successor guardian die while the children are still minors, courts will have to become involved in appointing a caregiver.

While it appeared in the moments immediately following his death that the fate of Jackson’s estate was in question, such speculation has not been borne out. At this point, according to estate planning professionals, it appears that Jackson received solid legal advice during his lifetime, and as a result, has a well-crafted estate plan in place.

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.

There are three types of life insurance: whole life, term life and variable life. Whole life does exactly as its name implies, covering you for your entire life as long as premiums are paid. Term life covers you for a specific period of time that is specified by the policy “term.” Variable life insurance has variable returns and a variable investment component that the policy holder, not the insurance company, determines where the appropriate portion of their premium is invested.

Regardless of the type of policy, life insurance benefits are paid directly to the beneficiary in full upon your death. Because of this, your beneficiary receives all assets immediately without having to go to probate court or pay taxes. Also, since the full policy amount is available upon the policy holder’s death, life insurance is a good way to ensure a certain amount of money will be available at any time even if an unfortunate or sudden event should result in unexpected death.

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

It may seem as though individuals who plan on purchasing long term care insurance and individuals who plan on taking advantage of Medicaid fall into different categories. However, in most cases, long term care insurance can be used as a part of overall Medicaid planning.

For example, anticipating the need for long term care, one could purchase a plan with a benefit period of five years. Assets can be transferred into a Trust, allowing for the individual to spend down their assets and become Medicaid eligiable. If the individual falls ill during the five year look-back period, s/he now has the long term care insurance to cover the cost of the nursing home or at home care. If this same individual had not purchased the long term care insurance but had transferred his.her assets into the Trust, s/he may now not be eligible for Medicaid benefits until the expiration of a penalty period. While premiums on long term care insurance can be expensive, they are often more cost effective than paying out of pocket for care during a penalty period. A good estate planning attorney can advise on the best way to plan for the need for future long term care.

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.

No one can know the needs, habits and desires of a child with special needs better than a parent who has been caring for that child for his or her entire life. When writing a letter of intent, parents can ensure that future caregivers understand the personality of their son or daughter. The information contained in the letter goes beyond the financial and legal information contained in a Will or trust. This information will be valuable in ensuring the child with special needs will continue to get the care that he or she is accustom to.

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

Since it is nearly impossible to predict what year one might die, estate tax planning is crucial for all families who have accumulated assets in excess of $1 million. One tool that may be employed to address this issue is a bypass trust. Bypass trusts allow parents to double the amount of money that can be passed on to children tax-free.

When the first parent dies, instead of leaving all their assets to the surviving spouse, assets up to the exemption amount can be left to a trust for the benefit of the children. Therefore, when the second parent dies, he or she may also leave assets up to the exemption amount to the surviving heirs. In this way, parents are able to collectively double the amount they would otherwise be able to leave to children tax-free.

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

Anyone who meets the age requirement and has enough home equity can take out a reverse mortgage as long as they live in the home. No payment is due on the loan as long as it is outstanding and the homeowner still occupies the home. The loan becomes due only when the homeowner moves out.

A reverse mortgage can be an attractive option but it is not the right option for everyone. Reverse mortgages have up-front costs and can be expensive to originate. Reverse mortgages also take away equity that the homeowner may need for future emergencies or health care costs. And, since proceeds from the sale of the home are generally used to pay back the loan, reverse mortgages can take away from any inheritance that would be left to surviving children. Consult an estate planning attorney to see if a reverse mortgage fits into 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.

• What is the reputation of the provider with residents and with neighbors?
• Will the provider allow you to meet any of the other residents to see if the atmosphere is right for your child?
• Does the provider have “house rules” and other measures that may be in place to ensure residents will be good neighbors?
• What community safety measures are in place?
• What are the amenities? Are there common areas that will be available?
• Is there a plan to address grievances among residents?

Planning for housing for a child with special needs is a critical step in ensuring his or her future safety and happiness. Start planning early to make sure that all your questions are answered.

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

Unmarried couples that have been together for many years, or even decades, may give little thought to inheritance issues. However, in the absence of a Will, the state will decide upon the distribution of assets, and the state is under no legal obligation to consider a non-spousal partner or his or her children. Unmarried couples should at a minimum draft a will and establish beneficiaries for their assets.

In addition to a Will, each person should have a Power of Attorney and a Health Care Proxy. These documents will ensure that both financial matters and health care matters will be handled in accordance with the couples’ wishes. Unmarried couples do not have the legal rights to make health care decisions for each other. Drafting a Health Care Proxy and a Power of Attorney will prevent a judge from making decisions that should be left to couples and their loved ones.

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

However, with no Will, the state will make decisions for you according to a distribution schedule it has already established. The state tries to pass assets to people it thinks benefit the most, but unfortunately, this may not be in line with your wishes or what is best for your family.

Some people also have difficulty with estate planning because of the misconception that their assets are not large enough to warrant a will. Writing a Last Will and Testament is not just for people with large estates. Most people, when all property and accounts are considered, are worth more than they think. In addition, some possessions may not have great market value, but they do have substantial sentimental value. These are items that you will want to keep in your family, and it is important that you know they will be well cared for.

The direction you take your retirement saving plan will depend on your risk tolerance and how close you are to retiring. People who can take a long-term strategy should keep more of their investments in stock than those who will need their assets sooner. In fact, in a down market, new investors can benefit from a majority stock portfolio by buying in low.

Others, however, may benefit more from having their assets in cash, trusts and fixed interest investments. No matter what your situation, a good investment plan requires regular evaluation so that you can be sure your assets are allocated to fit your needs and retirement goals. Seek the advice of your estate planning attorney to make sure you are on the right track.

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

The person who you name as your attorney-in-fact does not have to be a lawyer. In fact, when choosing a person to act on your behalf, the most important characteristics to look for are trustworthiness, organizational and management skills and good common sense. You have complete control over your durable power of attorney document as long as you are still mentally competent, and may revoke the document at any time.

In New York, you have the ability to specify when you want your financial power of attorney to take effect. You may draft the document so that it goes into effect as soon as you sign it, or you may choose to make your power of attorney take effect only when a doctor has declared that you are incapacitated. Remember, you must specify that you want your financial power of attorney to be “durable” or it will end as soon as you become incapacitated.

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.

All of these documents work together to ensure that your wishes are carried out with regard to your property, assets and person. On top of that, they provide for family, loved ones and other beneficiaries by passing on financial benefits as well as taking away the stress of a state mandated or contested distribution of property.

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

Another advantage to a Special Needs Trust created during your lifetime is that it establishes a pattern that may be used by future trustees. Parents who, as trustees, write checks for daily and monthly expenses from a Special Needs Trust are showing what types of things will be acceptable expenditures from the Trust when new trustees take over the responsibility of managing the Trust.

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