The usage of 529 plans is growing substantially. While for years, many families relied on these plans to fund college, these plans are also capable of being utilized to manage wealth, minimize taxes, and make multi-generational gifts.
This article takes a brief examination of the advantages as well as limitations that 529 plans can provide.
Avoid Gift and Estate Tax Rules
State plans for medical assistance under federal Medicaid law must comply with certain requirements located in Title 42 U.S.C. § 1396a.4, but do not always do so. In 2018, the United States District Court for the District of Alaska in the case of Disability Law Center of Alaska v. Davidson denied a motion for summary judgment on three claims alleging that Davidson who in her position as the commissioner of the Alaska Department of Health and Social Services had violated federal Medicaid law.
The violations of which the Center was accused were: failure to provide adequate notice on how to apply for and access applied behavioral therapy, not reimbursing for ABA under the program, and not providing ABA services under the program with reasonable promptness. In arriving at its decision, the court noted that the Disability Law Center had the burden under federal law of establishing that Davidson had deprived them of the following rights: the right to notice of availability of ABA services, the right to be reimbursed for ABA therapy, and the right to have ABA therapy provided.
The court’s subsequent decision subsequently supported the position that any state that has elected to participate in federal Medicaid programs must be prepared to provide services identified under the federal statute as mandatory. This case underscores the right that many individuals in the United States have to Medicaid benefits.
One of the common responses that many people have as they learn about estate planning is that there are a number of estate planning documents. In addition to things like wills, living wills, advance directives and powers of attorney, there also also a number of other important documents.
In New York there are Medical Orders for Life-Sustaining Treatment (MOLST) forms. This article briefly reviews what MOLST forms do and situations where you might need one of these documents.
The Role of MOLST Forms
On August 15, 2019, the U.S. Food and Drug Administration (FDA) rolled out thirteen (13) proposed warnings in full-color utilizing graphics for rotation on cigarette packages, meant to encourage people to stop smoking or taking up the habit.
According to the U.S. Centers for Disease Control and Prevention, (CDC) the leading cause of preventable death in the U.S. is smoking.
An appellate court recently reversed in part and affirmed in part the judgment of the Court of Appeals concerning a decision by the Comptroller of the Treasury to include the value of a marital trust in an estate in a tax assessment. The trust contained qualified terminable interest property that was reported on the deceased individual’s federal tax return but was excluded from the estate’s Maryland estate tax return. The Court of Special Appeals held that the Comptroller lacked the authority to tax the trust assets as part of the Maryland estate. The appellate court, however, found that after the death of the deceased person’s spouse, the qualified trust assets were transferred on her death and that the transfer of the property was subject to Maryland estate tax.
A marital trust is a particular type of irrevocable trust that is designed to hold a deceased spouse’s assets that are greater than the amount capable of being protected from death taxes. Rather than be taxed at the time of the death of the first spouse to pass away, assets are not taxed until the second spouse dies. As a result, if the second spouse has limited financial means, marital trusts can play an invaluable role.
The Three Types of Marital Trusts
Alcohol and drug abuse among adults 60 years and older is underestimated and under-diagnosed. To caregivers, whether they are a spouse, adult child, or a home health aide, understanding how and where to get help for their loved one is critical to getting a person in treatment.
Nationwide, the U.S. Centers for Disease Control and Prevention (CDC) researchers found a 33.3 percent increase in older adult (ages 65 and older) deaths from heroin between 2014 and 2015 (heroin deaths for all ages rose only 21 percent).
Doctors fail to diagnose drug addiction in older adults because some of the symptoms experienced by alcohol and drug abusers mimic symptoms more common in older adults generally. Alcohol and drug abusers, like older adults, suffer from depression, diabetes, and dementia. It may be harder to attribute the cause to alcohol or drugs rather than old age, so treatment is under-diagnosed.
The Eighth Circuit Court of Appeals in Northport Health Services v. Posey recently reversed a lower court’s decision to grant summary judgment in a wrongful death action. One son in the Posey family in this case had signed the admission agreement of his brother at a resident rehabilitation center owned by Northport, which included an arbitration agreement. Northport then sought to compel arbitration and the district court granted this motion. The brother then appealed claiming that the district court misapplied the third-party beneficiary theory to the case because there was no underlying agreement between the Posey family and Northport.
Making the decision to place a loved one in a rehabilitation center after they are in the hospital can be a difficult decision. Reviewing the associated terms of any agreements concerning a loved one’s care are just one of the many things that you should make sure to do. Fortunately, by following the advice below, this process can be made much easier.
# 1 – Plan for Discharge as Soon as Possible
Millions of people find themselves in a middle class bind as they enter the midpoint of their retirement period. A good eight (8) to ten (10) years into retirement, many individuals are able to physically continue to live in their home and afford the upkeep and maintenance of their home with their retirement savings
Especially if the individual’s home is single-story, as health problems mature, many individuals will be physically able to maneuver their way around their home with little assistance. Multi-story homes become more difficult because climbing stairs may be a problem. Individuals in the midpoint of their retirement are generally still able to care for themselves. Many of them even hold permanent part-time jobs.
The sources of income for individuals in retirement are the fixed income they receive from a pension, an individual retirement account (IRA), Social Security, and 401K savings. Variable income is received through part-time job wages and other financial instruments like an annuity and cash savings.
The present-day court structure was established in 1691, when the New York Assembly established the New York Supreme Court of Judicature with the same common law jurisdiction as the King’s Bench, Common Pleas and Exchequer of England. The court was granted jurisdiction in equity in 1846 by statute, taking over equity matters from the Court of Chancery, and became a court of general common law and equity jurisdiction.
The current court structure — made up of 11 separate trial courts with varying jurisdictions — is complex and costly. For example, the Surrogate’s Court, established in 1787, has jurisdiction in probate and administration of estates matters. There is a Surrogate’s Court in each of the sixty-two (62) counties in New York. The Surrogate’s Courts also have concurrent jurisdiction with the Family Courts, over guardianships of the person and property of infants and adoption proceedings. Each county has a separate Family Court. So, there are sixty-two (62) of the courts as well. It is easy to see why any legal proceeding is expensive and the challenge of understanding which court can help you solve a problem.
Like any government agency, the New York State court system has a top executive, the Chief Judge Janet DiFiore. In her February state of the judiciary address, she announced an objective to “modernize” the state’s court system. Since then, many organizations and groups from a wide range of New York life – government groups, advocates against domestic violence, legal service providers, bar associations, community groups, and even private citizens – have banded together to lobby for court simplification.
My doctors always advise me that medications are meant to help me live better not longer. I always walk away from the experience scratching my head a bit because most of my medications have made me live longer but worse than before. The worst part of taking medication daily is remembering to take medication daily. It seems like such a simple task, but part of my brain still fights that I even have to take medications in the first place.
The second worst part of taking daily medications to live better are the side effects, especially interactions with other drugs. Some of the news is easy to ignore, and to a certain extent makes me laugh. For every story I read about the harmful effects of drinking coffee daily, there is another one saying daily coffee consumption would kill me. What kills me, however, is skipping a cup, the headache is the worst.
There is news you should pay attention to and at least discuss with your doctor if it raises any concern with the management of any of your health conditions.
New York Estate Planning & Elder Law Blog