Inna Fershteyn - Trust and Estate Planning Law Office

Can an IRA Affect Your Medicaid Eligibility?

For many retirees and medicaid applicants, their Individual Retirement Account (IRA) is one of their largest assets and a reliable savings account for retirement. An IRA is also something that can interfere with one’s Medicaid application if they do not understand their IRA’s status and the intricacies of the Medicaid application and what Medicaid considers as an asset. Depending on an IRA’s payout status, it will either be counted as an income source or a non-exempt asset, and each category has different meaning for a Medicaid applicant. There are several options for Medicaid applicants with IRA’s that might interfere with their ability to receive Medicaid benefits, including Medicaid Asset Protection Trusts and annuities. It is also advisable to begin Medicaid planning well in advance of retirement, in which engaging the services of an experienced Medicaid planning attorney will help tremendously.

IRA and Medicaid Eligibility

An individual retirement account (IRA) is a long-term savings account that one can use to save for retirement while enjoying certain tax advantages. It, along with a 401k, is one of the most popular savings tools used by prospective retirees. Although IRA’s are popular and practical tools to plan for retirement, one must also take into account their Medicaid ramifications. One key consideration is that Medicaid often considers the value of assets when determining eligibility. Traditional IRAs, being tax-deferred accounts, can potentially increase an individual's countable assets. This can impact qualification for Medicaid, which is especially significant for those needing long-term care services later in life. Additionally, withdrawals from traditional IRAs may be viewed as income, potentially affecting Medicaid eligibility if they surpass the allowable income thresholds. This intricate interaction between IRA contributions, account values, and potential income from withdrawals highlights the importance of aligning retirement planning with a broader understanding of financial health.

Can an IRA Affect Your Medicaid Eligibility?

Yes, an Individual Retirement Account (IRA) can affect your Medicaid eligibility. Traditional IRAs, being tax-deferred accounts, may increase an individual's countable assets, affecting qualification for Medicaid, especially for those in need of long-term care services later in life. Additionally, withdrawals from traditional IRAs could be considered as income, potentially influencing Medicaid eligibility if they surpass allowable income thresholds. Luckily, there is action that can be taken in order to protect your IRA!

Options For Protecting Your IRA

Exploring options to safeguard your IRA amidst potential Medicaid implications involves a strategic approach to retirement planning. Assessing the impact of traditional IRAs on eligibility, considering alternatives like Roth IRAs for tax efficiency, and exploring long-term care insurance to proactively address future healthcare needs. Find out how these different options ensure a comprehensive strategy in navigating the complexities of retirement planning.

Diversification Beyond Traditional IRAs: Roth IRAs

One avenue to consider is diversifying your retirement portfolio beyond traditional IRAs. Incorporating Roth IRAs, with their after-tax contributions and potential advantages in Medicaid scenarios, may provide a more tax-efficient path. Roth IRAs offer tax free qualified withdrawals, allowing for strategic financial planning during retirement. Additionally, their flexibility in distribution can provide a valuable tool for optimizing tax efficiency based on your changing financial needs in later stages of life. This option not only broadens your investment mix but also enhances flexibility in managing future tax implications.

Long-Term Care Insurance Exploration

Another option is to explore long-term care insurance, which can help cover healthcare expenses without significantly impacting Medicaid eligibility. This proactive approach can provide a financial safety net for potential future medical needs while preserving the integrity of your retirement savings. The careful selection of long-term care insurance ensures that your retirement savings remain intact while addressing potential health-related costs. By strategically incorporating this insurance, you not only shield your IRA from the potential financial burden of long-term care but also secure a comprehensive solution that aligns with your retirement planning, offering peace of mind in the face of unforeseen health challenges.

Comprehensive Estate Planning for IRA Protection

Establishing a comprehensive estate plan can also play a pivotal role in protecting your IRA. This may involve setting up trusts or other legal mechanisms to manage assets efficiently and in a way that aligns with your overall financial goals. This includes addressing potential Medicaid considerations, ensuring that your IRA remains protected within the context of your overall financial strategy.

Conclusion

Navigating the intricate relationship between IRAs and Medicaid can be complicated, therefore making it essential to approach this process with informed and proactive strategies to protect your IRA and ensure a secure retirement future. Seeking professional guidance from qualified attorneys or financial advisors can provide valuable insights tailored to your specific needs. These professionals bring a wealth of expertise, offering personalized insights and strategic recommendations, and will assist individual desires and financial goals. For all your estate planning needs, contact the The Law Office of Inna Fershteyn at (718) 333–2395.

The Best Time to Update Your Estate Plan

When was the last time you thought to review and update your estate plan? It is a frequent misconception that once your estate plan is in place, it needs no further adjustments or review. However, as life is filled with exciting milestones as well as hardships, it is crucial that you regularly update your estate plan as life is constantly evolving. Planning an estate is a beneficial way to manage and protect your assets and ensure that your wishes and desires will be fulfilled after death. In this article, we will explore the importance of frequent revision of your estate plan and key life events that prompt reevaluation.

Why is it necessary to continuously review your estate plan?

Life is constantly filled with ups and downs including new births, deaths, marriages and divorces and it is important to be prepared for any situation. Regularly reviewing your estate plan can ensure that it aligns with your current circumstances and desires. This will allow you to address any recent changes in your family, designate beneficiaries and update other important information including appointing guardians for children. Periodic revision of your plan can lessen the potential for disputes among beneficiaries and family members and ensures that your wishes and desires are up to date.

Your financial situation is prone to change throughout your life. You may obtain and sell assets or might start a business which can have ramifications on your estate plan. By taking the proper steps to protect your assets, including updating your estate plan, you can ensure that they are distributed in alignment with your desires and lessen the potential for challenges in the future.

Additionally, Laws and policies are not static and they are always subject to change. Failing to be informed about recent policy changes can have implications on your estate plan. It is important to stay up to date about recent tax laws because it will provide you with the opportunity to maximize tax savings. Consulting with an estate planning attorney can help you ensure that your plan aligns with the most recent laws and regulations.

When is the best time to review my estate plan?

Below is a list of some essential life events after which you should consider reviewing and updating your estate plan accordingly.

Marriage or divorce- Whether you and your partner are joining lives through marriage, or separating through divorce, these events call for a review of your estate plan. Updating your plan after these life events provides you with an opportunity to account for your spouse, consider children from previous relationships as well as modify beneficiary designations.
Birth or adoption of a child- The welcoming of a new child into your life is an exciting milestone, and also prompts for an updated estate plan. A new child may encourage you to add guardians for your child and set up trusts in preparation of your child’s financial future.
Changes in your financial circumstances- Your plan should be reviewed thoroughly and updated in the event of substantial changes in your financial situation. For example, after the buying and selling of assets or receiving an inheritance, it is important to take advantage of new financial opportunities by updating your plan.
Death of a loved one- If a loved one or beneficiary in your plan passes away, it is essential to make the necessary adjustments to your plan including the addition of new beneficiaries.
Relocation- Moving to another state or country is a major event that requires the revision of your estate plan. Different states and countries have different laws and regulations in regard to tax and estate, therefore, in order to ensure your plan aligns with the local laws, it is necessary to review your plan and make the appropriate adjustments.
Changes in laws- Laws are constantly evolving and they are always subject to change. Therefore, when estate and tax laws are created or changed, it is important to review your plan and make sure it conforms to the current legal policies.
Retirement- As you approach retirement, it becomes especially important to address things such as income planning and healthcare in your estate plan as well as ensuring the future protection of your assets.

Regularly updating your estate plan is a crucial responsibility that should not be overlooked. Life can be extremely unpredictable, between family and financial circumstances, and it is essential to ensure your plan is up to date. Doing so can protect both your assets and your loved ones. To consult with a knowledgeable and experienced estate planning attorney, please contact the Trust and Estate Planning Law Office at (718) 333–2395.

How to keep your money within

Planning for your future is imperative for preserving and passing on your wealth. An estate plan will not only allow you to secure your earnings for your loved ones but also save money in estate taxes. When leaving an inheritance, your heirs may be subject to various estate taxes and fees associated with passing on assets. The idea of estate planning may seem unnecessary to some, whether due to non-marital status, not having children, or a perceived lack of assets. However, these are misconceptions that underestimate the value of your estate. Everyone, regardless of their family situation and finances, has an estate that can benefit from estate planning services. By seeking the expertise of an experienced estate planning attorney, you can preserve your estate, retain its value, and strategically plan for the future.

Why is estate planning significant? An estate plan enables you to decide who will inherit your assets, how they will be distributed, make plans for your funeral and burial, as well as select guardians for your children. For individuals in single households without children, spouses, or living relatives, estate planning becomes even more crucial as you need to consider the future of your assets and healthcare. Planning ahead ensures you are prepared for any sudden life changes.

Initiating a Trust

For individuals with substantial estates or concerns about their heirs' responsibility with inheritance, creating a trust and appointing a trustee for asset distribution is critical. There are many ways to set up a trust, but an irrevocable trust provides the most tax benefits. In an irrevocable trust, the money no longer belongs to you but to the trust itself, which protects it from estate taxes. Another way to ensure your money stays within the family is by setting up a dynasty trust, which safeguards the money within your estate for future generations and shields it from divorce, lawsuits, and creditor claims. In New York state, a dynasty trust remains effective for another 21 years after the death of the last person for whom the trust was created. This trust not only avoids estate taxes but also the generation-skipping transfer tax.

Retirement Accounts to Roth Accounts

Leaving heirs with traditional 401(k) or IRA accounts can result in substantial tax bills. Under current laws, non-spouse heirs are required to withdraw all the money within the account within a ten-year span, potentially leading to higher taxes due to the increased taxable income. Converting traditional accounts to Roth accounts can help avoid these tax burdens. While the amount converted is subject to regular income taxes, withdrawals from Roth accounts are tax-free, providing long-term tax savings.

Plan for Long-Term Care Expenses

Long-term care expenses can significantly impact your assets and financial well-being. Incorporating long-term care considerations into your estate planning can help mitigate these costs. One effective strategy is to explore long-term care insurance options that provide coverage for medical and care expenses in the event of a chronic illness or disability. Additionally, Medicaid planning allows you to structure your assets and income in a way that qualifies you for government assistance while preserving your estate. Setting up trusts, such as irrevocable Medicaid trusts, can protect assets from being counted for Medicaid eligibility purposes. Proactive planning for long-term care expenses safeguards your assets and ensures that you receive the necessary care without depleting your estate.

In conclusion, estate planning is a multifaceted process that can save you money and provide financial security for your loved ones. By considering the various aspects of estate planning, such as trusts, retirement account conversions, and long-term care planning, you can strategically manage your assets, minimize tax liabilities, and protect your estate. Consulting with an experienced estate planning attorney is crucial to ensure that your estate plan is tailored to your unique circumstances and goals. Take the first step in securing your financial future by contacting the Trust and Estate Planning Office at (718) 333-2395.

Essential Estate Planning Guide for Veterans: Strategies, Tips & Benefits

When we picture veterans, we often think of the courageous acts and heroic sacrifices made to protect our country. These brave individuals have defended our freedom while facing countless challenges while serving our country. Unfortunately, oftentimes their selfless acts lead them to forget about themselves. In our case, veterans often forget to create a well thought out estate plan and inform themselves of veteran benefits they may have access to. Anyone, including active military personnel, should consider estate planning in order to ensure their loved ones are well taken care of in the event of their passing. In this article, the trust and estate planning office will cover some crucial estate planning strategies for veterans as well as the benefits veterans may be entitled to unknowingly.

A Guide to Estate Planning For Veterans

Write a will- A will is a legal document which outlines the desires of the testator, or the individual writing the will, and ensures that their assets are distributed accordingly after death. A will is an essential aspect of your estate plan to ensure that your assets will be distributed to the proper beneficiaries. In addition to outlining your asset distribution plan, a will also allows you to name guardians for minors in the event of your death as well as designate an executor, who will ensure that your will is carried out. A will only takes effect after your death.

Establish power of attorney- Your power of attorney is a legal document which designates an individual to make decisions on your behalf in the event that you are incapable of doing so. Unlike a will, your power of attorney is effective during your lifetime. If at any point you are incapable of making decisions or managing your affairs on your own, your power of attorney will do it for you. With the risks of military service, establishing a power of attorney can be extremely beneficial in the event that you become incapacitated.

Create trusts- Creating a trust is a beneficial way to protect and manage your assets. A trust is an entity that specifies who will receive your assets and how you want them handled in the event of incapacitation. Unlike a will, a trust takes effect while you are alive. A trust also skips probate court, a process intended to settle a deceased individual's estate plan, and minimizes taxes, which makes it an efficient way to protect your assets.

Purchase life insurance- As a veteran, you may be eligible for life insurance benefits. Programs including SGLI, a program providing life insurance coverage for active military, and TSGLI, a program providing coverage for family members of active military, provide life insurance for veterans and their families.

Healthcare directives- An advanced healthcare directive is a legal document which outlines your medical wishes in the event that you become incapacitated. Writing a healthcare directive can designate an individual to make medical decisions on your behalf if you are incapable of doing so. Additionally, it is beneficial to state your medical preferences such as your preferences on pain relief, resuscitation, life sustaining treatment, organ donation, mechanical ventilation, etc. to guide your family and medical professionals in making healthcare decisions.

Understanding Benefits For Veterans

Social Security Survivors Benefit- You may be eligible for payments from social security if your spouse dies. If your spouse was of retirement age, you may receive 100% of their benefits, however the amount is less if the late spouse is under the retirement age.
Improved Pension through the Department of Veterans Affairs- This benefit is a way for caregivers of veterans to receive payments from the Department of Veterans Affairs (VA) for looking after them. These caregivers can be friends or family, however spouses are not eligible for payment.
PACT Act- The Promise to Address Comprehensive Toxins Act was created to extend VA healthcare eligibility to veterans with toxic exposure. It also requires the VA to provide toxic exposure screenings for all veterans.
Healthcare benefits- Multiple healthcare programs are in place to assist with healthcare expenses for veterans and their families. For example, TRICARE offers several types of coverage including health insurance for active duty families, National Guardsmen and their families as well as retired military personnel. Other programs include CHAMPVA, which shares the cost of medical care with the VA and eligible individuals, as well as PCAFC, a program which allows family or friends to receive payment for providing care to an eligible veteran. These programs are in place to assist former or current military members and their families with finances.
Life insurance programs- Multiple life insurance policies exist for veterans which cover not only active military, but their family members as well. SGLI is a low cost life insurance policy for service members, including active military personnel. FSGLI is a similar program but covers family members of active service members.
Burial benefits- In the event of the death of a veteran, free of charge burial services and grave markers are provided in a national cemetery. If family members decide on an alternative location of burial, there are limitations on financial assistance from the government.

Estate planning for veterans is not only necessary, but is also a powerful way to honor their service and protect their loved ones. By creating an adequate estate plan, veterans can ensure that their assets are protected and their family is provided for in the event of their passing. From creating trusts to learning about the unique benefits offered to veterans, there are numerous strategies to help veterans plan their estate. The process may be overwhelming, which is why hiring an experienced estate planning attorney can provide you with peace of mind during this process. For all your estate planning needs, contact the Trust and Estate Planning Office at (718) 333–2395.

Exploring the Benefits of Home Attendants Over Nursing Homes

When it comes to the care of our loved ones, we want nothing but the best. The decision whether to choose a nursing home or opt for a home attendant is a crucial one, as the result can dictate your loved ones comfort and care for the upcoming years. Although nursing homes typically serve as the traditional route when debating on long term care, there is nothing comparable to the comfort your loved one will receive in their home as well as the one on one care that is tailored to their needs. In this article, we will analyze the many reasons why home attendants provide a transformative experience which prioritizes individual’s needs in the comfort of their own home.

Personalized Care and Individual Attention

Home attendants offer a level of personalized care that sets them apart from nursing homes. When individuals receive care at home, they benefit from one on one care with a caregiver that can focus exclusively on their needs. Unlike a nursing home where the staff to patient ratio is higher, home attendants have the opportunity to build strong connections to their patients and allow them to understand their unique routines and preferences of treatment. Home attendants can also offer constant assistance with tasks including bathing, dressing and meal preparations. The individualized attention given by home attendants allows for meaningful relationships, companionship and emotional support which establishes trust between the patient and caregiver while providing a sense of comfort to the patient as well.

Nursing Homes Are Extremely Expensive

In New York State, the average cost of a private room in a nursing home totals to $158,797 annually (American Council on Aging) in comparison to the average annual home attendant cost of $52,620 (SeniorCare). Nursing homes provide elderly care within a facility, which includes expenses related to maintaining and operating a residential establishment. With the expenses of utilities, staffing, and maintenance, the cost increases drastically. Nursing homes are also equipped to handle emergency medical situations which require round-the-clock medical personnel. Additionally, the cost of the living space such as rooms and bathrooms as well as meal plans, is included in the overall price. Home attendants on the other hand, provide medical care in the patients residence, therefore eliminating the additional facility expenses. Home attendants can be more flexible in terms of scheduling allowing for cost effective options based on an individual’s needs.

Familiar Surroundings

Home attendants offer a unique advantage by allowing patients to age in the comfort of their own home. This becomes particularly important for patients with dementia or Alzheimer's disease. These two conditions can cause memory loss and disorientation which makes it incredibly difficult for those individuals to adapt to new environments. Being in a familiar setting such as their home helps minimize the stress and anxiety of changing locations. Remaining in a recognizable space also helps to maintain daily routines which can be comforting for patients with memory loss. Allowing patients to age in their own home can enhance their quality of life and promotes familiarity during challenging times.

Increased flexibility and Family Involvement

Home attendants allow for much more family involvement and flexibility when it comes to treatment plans. By receiving care at home, families have more control over schedules and care provided. Home attendants are able accommodate specific preferences and routines and adapt to a patient's needs. Home attendants encourage family involvement as well by allowing families to actively participate in decision making and will also keep them informed about their loved one’s condition.

Comfort to the family

Home attendants can provide the family of a patient a higher level of comfort in comparison to nursing homes. Families can often take comfort in knowing that their loved one is in the hands of a trusted individual of their choosing. Knowing that they are receiving individual attention in the comfort of their own home can put their minds at ease. Additionally, with patients who are immunocompromised, it can be comforting knowing they are only exposed to one individual instead of living with a significant number of people.

Home attendants offer countless advantages that make them superior to nursing homes. The personalized care, individual attention, and comfort they provide to patients contribute to a higher quality of life and overall well-being to seniors. While seeking assistance with elder care needs, Attorney Inna Fershteyn can be a valuable resource to assist you in making the best choices suited for your family’s needs. With her expertise and knowledge in elder law and estate planning, Attorney Inna Fershteyn can guide your family through the legalities of elder care, ensuring that your loved ones receive the best possible treatment. Her dedication to serving the needs of seniors makes her an invaluable asset in navigating the challenges of eldercare. Ensure your loved ones are comfortable and provided for by calling the Trust and Estate Planning Office at (718) 333–2395.

Unlocking Hidden Benefits: How Medicaid Expansion is Changing the Game for Veterans’ Health Care

Veterans of all branches of the United States military have throughout the country’s history endangered themselves and sacrificed huge amounts of time and energy to ensure that the freedoms all American citizens enjoy are protected. Committing to service in any branch of the armed forces means leaving one’s family and friends behind to fulfill contractual obligations. The United States, with gratitude for the sacrifices made by service men and women and their families, has created many organizations to provide services and benefits to both active duty and retired members of the armed forces, chief among them the United States Department of Veterans Affairs. These organizations provide a variety of services to veterans and their families, such as health insurance, mental health care, tuition subsidies, and home loans. Many veterans, however, are not aware or are not disclosed the full scope of services and benefits available to them, including those provided by the Department of Veterans Affairs. Many veterans are further unaware of the benefits available to them through Medicaid, particularly for those who struggle to find civilian employment or are unable to make ends meet. Consulting with an experienced Medicaid planning attorney will help you and your family understand the benefits available to you as a former service member and ensure that you receive the support you have earned for your many sacrifices.

Brief Overview of Medicaid and Department of Veterans Affairs Benefits

Medicaid is a federal and state run program that ensures health insurance coverage for low-income families. Medicaid also provides health care-related services and benefits such as transportation and outpatient hospital care. The Department of Veterans Affairs, or VA, is a branch of the federal government that provides lifelong health care coverage for veterans and their families. In addition to health care services and coverage, the department provides home loans, pensions, disability compensation, tuition subsidies, life insurance, and burial services. It is important to note that VA benefits are available for both uniformed service members and veterans and their spouses, children, and parents.

How The Expansion Of Medicaid Has Impacted Veteran Enrollment

Following the passage of the Affordable Care Act (ACA) and the implementation of the ACA Medicaid expansion in 2014, veteran access to Medicaid coverage and benefits increased, leading to better access to health care and improved outcomes. This is especially important because according to the Kaiser Family Foundation, about 10% of working-age veterans receive Medicaid, with a further 40% of those having Medicaid as their only health coverage. The 2014 ACA Medicaid expansion to include adults earning up to 138% of the poverty threshold made many adults newly eligible for the program in the 32 states that adopted the expansion, including New York. The results are staggering, as according to nine Health Care For The Homeless Projects, states that adopted the Medicaid expansion have a 55% share of veterans covered by Medicaid, as compared with a 5% share of veterans in states that did not adopt the Medicaid expansion.

Why Medicaid Is Crucial For Veterans

According to a 2021 estimate from the Census Bureau's American Community Service, there are about 16.5 million veterans in the United States. When returning from military service, veterans must reintegrate back into civilian life, a challenge for many. Many veterans return from active service with a disability, long-term injury, or multiple crippling conditions. Over time, veterans may develop alcoholism, drug addiction, or a multitude of mental health issues relating to PTSD or other service-related injury. Most of these issues require long-term care, whether it's physical therapy to adjust to a prosthetic limb or psychiatric interventions to help combat suicidal thoughts or PTSD-related instability. In these cases, Medicaid plays a crucial role in providing coverage to veterans that might not otherwise be insured. Medicaid also helps to supplement Medicare or private, VA, or military coverage for roughly 60% of working-age veterans in order to reduce the out-of-pocket or copayment cost. According to 2022 Point-In-Time Count, 33,136 veterans lack access to other forms of coverage and tend to have higher rates of disability, chronic health conditions, alcoholism, and drug abuse.

Conclusion

Most veterans qualify for VA, however there are instances where a veteran either is not eligible for health-related VA benefits or simply lives too far from a VA facility to receive treatment. Other veterans might not apply for VA or Medicaid benefits because they do not know the potential benefits they are eligible for or believe they do not qualify. It is vital for veterans planning for health care coverage and other services and benefits upon returning to civilian life or retiring from active service to understand that there are many programs available to them to gain the coverage and services they need. One can also qualify for VA and Medicaid benefits simultaneously, so it is important to understand the process of applying and qualifying for both and how each program applies to specific expenses. With the end of the Federal COVID-19 Health Emergency 2023, yearly Medicaid renewal has resumed and changes in the eligibility and waiver process have occurred, making understanding potential Medicaid coverage and benefits more complex. In this case, having an experienced Medicaid planning attorney will help to understand what benefits are available to you and your family and how to ensure that you qualify for the program without running afoul of new Medicaid and Medicaid renewal regulations. To schedule a consultation to help ensure coverage for you and your family, call the Medicaid Fraud Attorney at (718) 333-2395.

Navigating the New Retirement Landscape: Social Security, Medicaid, and Financial Planning for a Secure Future

With prices and inflation rising as a result of the COVID-19 pandemic, disruptions in global supply chains, and the war in Ukraine, more retirees than ever before are returning to work. Some might find their retired life unappealing, while others feel their expertise can still be shared. The majority of retirees, however, are returning because they simply cannot make ends meet. As the cost of healthcare, housing, and basic necessities rise, many find that their savings or monthly income are insufficient to support their daily costs. This does, however, raise questions about Social Security and Medicaid. Those of full retirement age might be eligible for Social Security and Medicaid benefits, depending on a variety of financial and health-related factors, but those who return to work do run the risk of having their benefits reduced or taken away depending on their income and any private coverage they receive from a place of employment. Planning for Social Security and Medicaid are important factors to consider when drawing up a retirement plan, as qualification for benefits can be tricky to determine and acceptance into either program is not guaranteed. Financial planning, including asset protection and estate planning, are also important when considering retirement, as planning ahead with realistic goals in mind will help avoid future financial hardship or the feeling that one is a burden to their family. Consulting with an experienced elder planning attorney will help inform one’s planning, such as an appropriate retirement age or monthly saving’s goals.

Social Security and Medicaid

Upon reaching full retirement age, currently calculated as between 65 and 67, qualified retirees are eligible for Social Security retirement benefits without any deductions based on current earnings. Similarly, qualified retirees of full retirement age are eligible for Medicaid benefits based on income methodologies employed by the supplemental security income program of the Social Security Administration. Qualified individuals may begin collecting social security and Medicaid benefits before full retirement age, although coverage will likely be reduced unless their qualification is not dependent on age. Social security and Medicaid provide, among other things, health coverage, disability insurance, and assistance with the cost of prescription drugs. One can begin receiving partial social security benefits before their full retirement age, but their partial benefits will be reduced based on the Social Security annual earnings limit, currently set at $21,240. These reductions continue until the month before a person reaches full retirement age.

Returning to work after retiring is a tricky prospect because this may affect one’s qualification for partial or full social security and Medicaid benefits. Income is a key factor when determining the coverage and benefits a retiree is eligible for from both Social Security and Medicaid. While social security benefits are not deducted for current income about full retirement age, the benefits are aimed at those of lower income or without any stable income stream. In the case of Medicaid, yearly household income is a key factor in determining one’s eligibility, so any income above thresholds for eligibility set by Medicaid may result in one having some or all of their coverage taken away. Going back to work after retirement, especially for those above their calculated full retirement receiving social security or Medicaid benefits, is not a prudent financial plan, even if a job provides better health coverage.

Financial and Estate Planning for Later Life

Medical emergencies, long-term treatment costs, and prescription drug costs are, among other physical considerations, a reality for most retirees. There is also the simple fact that retirees will, for the most part, still be paying their bills for housing, groceries, and electronics, among other things. Even with help from family, and the benefits and coverage provided by social security and Medicaid, retirees will increasingly find themselves with bills they cannot afford to pay. Planning for retirement, therefore, is a key aspect of ensuring that one’s later years are spent comfortably and without the stresses of potentially having to return to work or becoming a burden on family.

Planning for things such as Medicaid coverage are best done before one reaches their full retirement age. Protecting one's assets and creating an estate plan will also be of great help when determining a plan for retirement, as an experienced estate planning and asset protection lawyer will help one to ensure they have a steady income for retirement and still qualify for Medicaid coverage. Social security and Medicaid are tools to help you in your later life, but comprehensive estate plans are important to ensure that you have a plan for emergencies.

You have worked your entire life to ensure that your later years are spent enjoyably and that you can leave a financial legacy to your family, so ensure that you engage in retirement planning as soon as possible. To speak with New York’s most experienced elder planning attorney, please call the Trust and Estate Planning Law Office at (718) 333-2395.

Estate Planning Secrets for a Blissful Retirement Under the Older Americans Act

Old age is a daunting prospect for most, as leaving work and living a retired lifestyle simply is not compatible with most people’s lifetime of hard work and sacrifice. Old age, however, should not be seen simply as a transition to the end of one’s life, but rather the opportunity for fulfillment and expansion of one’s horizons. In 1965, the Congress passed the Older Americans Act to provide community social services for older people. This act, which has been renewed through the 2024 fiscal year, provides for, among other things, nutrition and social services to the aged and their caregivers, organizes opportunities for civic engagement, and community service employment for lower-income aged Americans. As life expectancy has increased, so has the commitment of the United States to provide for its elderly communities. The reality of estate planning when entering later life should also be as smooth a process as possible, and consulting with an experienced elder planning lawyer will help you to understand the potential benefits retirees and older citizens can receive and the programs they can partake in, such as those provided by the Older Americans Act.

The Older Americans Act

The Administration for Community Living, an organization dedicated to the health and independence of older Americans, is currently seeking recommendations for proposed updates to the regulations of most of its Older Americans Act programs, the most significant set of updates in nearly 30 years. The government of the United States has long sought ways to improve the lives of older Americans, and one of the most significant pieces of legislation it has passed is the Older Americans Act. First passed by Congress in 1965, the act was initially targeted at a lack of community-based social services for aging Americans. The original legislation established grant authority to states for community planning and social projects, research and development projects focused on older Americans, and training for personnel in the field of aging. The act also established the “Administration on Aging” to administer grants and serve as a nucleus for matters concerning older Americans.

Since 1965, technological and medical advances have increased the life expectancy in the United States, which means that more people are able to enjoy their retirements in later years. In response, the Older Americans Act has undergone several reauthorizations and amendments. The most recent reauthorizations, in 2016 and 2020, which will last through the 2024 fiscal year, have provided for a year-long extension for the Supporting Grandparents Raising Grandchildren Act, more autonomy for state and local governments regarding the allocation of National Family Caregiver Services to keep older people in their homes, and required the assistant secretary for aging to issues guidance to states on serving Holocaust survivors. These reauthorizations also have provisions for strengthening elder abuse prevention, screening efforts, fall-prevention, and chronic disease self-management programs.

Estate Planning for Older Age

Although old age and retired life have been made easier since the introduction of the Older Americans Act and the expansion of benefits programs, estate planning and asset protection must be a priority for your golden years. An important aspect to consider in planning for later life is Medicaid. As most older adults in the United States are at least partially insured by Medicaid, it is important to understand that eligibility is dependent on, among other things, one’s income and assets. Although estate planning might have the stigma of making one seem old or aging, it is responsible financial practice to plan ahead and ensure that you receive the health coverage you need. To this end, an experienced Medicaid planning lawyer will help you to create the best estate plan that protects your hard-earned assets while also ensuring that you receive the coverage you deserve.

It is important to understand that there are no entitlements with the Older Americans Act because Title III of the act does not create a legal requirement to finance services for individuals. Older Americans eligible for Medicaid benefits and over the age of 60 may receive services under the Older Americans Act, however, Medicaid-funded services often take precedence. Services that cannot be rendered by the Older Americans Act may still be available for Medicaid eligible persons. The intricacy of the social services provided under the Older Americans Act and other federal welfare programs such as Medicaid make having an elder planning attorney ever more important. An experienced attorney will help to determine which benefits and services one can receive and assist one in qualifying for the programs they need.

Conclusion

Old age and retirement should not be seen as an anxiety-inducing or burdensome time, but rather as an opportunity for enjoyment. The older years of Americans have been made easier with the Older Americans Act and Medicaid coverage, but this should not prevent you from engaging in financial planning as soon as possible. Creating a comprehensive estate plan and planning for Medicaid will give you flexibility in planning your finances for your later years and give you the peace of mind to enjoy your retirement and the opportunities for engagement it provides. To speak with New York’s most experienced elder planning attorney, call the Trust and Estate Planning Law Office at (718) 333-2395.

The Difference Between a Living Will And Last Will And Testament

Estate planning is an essential process in which individuals make decisions regarding their asset distribution and future health care arrangements. Within the area of estate planning, there are two crucial legal documents to understand: the living will and the last will and testament. By understanding these documents, you will be better equipped to create an estate plan which accurately represents your financial desires after passing away. Below, the trust and estate planning office will explore the intricacies of a living will and a last will and testament and elaborate on the key points of each document as well as their differences.

Understanding a Living Will

A living will refers to a legal document which establishes an individual’s medical preferences in the event that they are incapable of communication or incapacitated. A living will is effective during an individual's lifetime, and is only effective in the event that you are unable to make medical decisions for yourself. This document also includes a healthcare proxy, or someone who will make medical decisions on your behalf aside from those included in your living will if you are unable to do so. A living will specifically focuses on predetermined medical directives in order to guide loved ones and medical personnel during treatment.

Key Points of a Living Will

One of the key aspects of your living will be your preference for certain medical treatments. These medical treatments may include life sustaining treatment, organ donation, resuscitation, pain management or mechanical ventilation. Your living will outlines your desires for how medical professionals will go about your treatment plan. Another essential aspect of a living will is the designation of your healthcare proxy. As stated above, your healthcare proxy will step in to make medical decisions on your behalf that you do not previously specify. Unlike a last will and testament, a living will takes effect when you are incapacitated or you are not in the state to make medical decisions. This includes neurological conditions in which an individual has a functioning brain stem but lacks cognitive function, otherwise known as a vegetative state. It also takes effect in the event of a coma and, in some states, terminal illness.

Understanding Last Will and Testament

A last will and testament is a legal document in which a testator, or the individual writing the will, outlines how they would like their assets to be distributed after their passing. Unlike a living will, a last will is only effective after death. There are multiple important decisions outlined in a last will, including the appointment of an executor, who will ensure your will is carried out and your assets are distributed accordingly. A last will is also how you can designate guardians for any minor children as well as the assets you would like to distribute and the beneficiaries who will inherit them. Asset distribution is one of the key components of a last will and testament. By writing one, you ensure that after your death, your assets are given to people of your choosing.

The Difference Between The Two

Although similar in name, these documents are drastically different, and it is important to understand the unique functions of each before planning your estate. While a living will outlines the healthcare directives and medical preferences in the event that you are incapacitated and unable to make medical decisions for yourself, a last will and testament outlines what you would like to do with your assets after your death. Another key difference between these two documents is when they take effect. A living will takes effect while you are alive and is only effective in the event that you are incapable of making your own medical decisions. A last will and testament is only effective after your death.

Understanding the distinction between a living will and last will and testament is essential to make informed decisions regarding the protection of your assets and loved ones. While a living will addresses your healthcare preferences and ensures that your choices are respected regardless of your condition, a last will and testament protects your assets and allows you to designate beneficiaries for your estate. Learning about the unique functions of these documents will provide you with the opportunity to plan your estate with clarity. Consulting with a knowledgeable estate planning attorney will provide you with peace of mind during this decision-making process. For all your estate planning needs, contact the Trust and Estate Planning Office at (718) 333–2395.

Defending Our Elders: Unmasking Nursing Home Exploitation and Ensuring a Secure Future

Nursing homes, in their ideal form, are meant to be sanctuaries of care, compassion, and respect for our loved ones. These facilities are entrusted with the responsibility of providing a safe and nurturing environment for elderly individuals who may require assistance with daily activities, medical care, and emotional support. However, reality often falls short of this noble ideal. Unfortunately, we often hear horror stories about what can occur behind closed doors, where only the vulnerable elderly bear witness. Every so often, stories of physical neglect, emotional isolation, abuse, medication mismanagement, financial exploitation, and more creep into mainstream media. Most recently, following an investigation by the Office of the Attorney General’s Medicaid Fraud control unit, a lawsuit was filed in the State Supreme Court of Manhattan against the owners of four nursing homes throughout New York State.

What happened?

Kenneth Rozenberg and Daryl Hagler have been accused of defrauding taxpayers of $83 million dollars, according to the lawsuit. The two men illegally used taxpayer money for personal benefit, even purchasing an airline, while neglecting their duties as nursing home managers. Due to severe underfunding and understaffing, the homes deteriorated and became health hazards. Without necessary funding, patients could not get their medication. Without necessary oversight, cases of elder abuse skyrocketed within these facilities. According to testimonies by family members, they were unable to reach their parents who resided in the facilities. In addition, they were not notified of severe injuries they had faced, such as brain bleeding. Another woman said that her father had been so severely neglected that he passed away from sepsis before she was able to pull him out of the home.

According to the Attorney General’s office, Rozenberg and Hagler created LLCs that they used to receive payments from the government and then spent these funds at their personal discretion. Investigations revealed that throughout the COVID-19 pandemic, Rozenberg and Hagler understaffed their facilities to earn more profit. They have also been accused of paying themselves exorbitant salaries for nonexistent work, charging steep amounts for rent which they did not report, and paying their family members $10 million dollar salaries while underpaying their actual staff. It is tragically common to see our most vulnerable population being exploited. There have been many stories throughout the years regarding the nursing home industry being a for-profit scheme that does not have regard for those who rely on the homes. Seeing stories like this one is shocking and it instills in us fear for our aging loved ones. While justice is being pursued in this case, it is important to be informed of steps that you can take to protect not only your loved ones but their assets as well if they end up in a nursing home.

The Benefits of Long-Term Planning

While not much could have been done to prevent these incidents from the perspective of the victims, there are still helpful conversations that you can have with your aging loved ones, or as you yourself age. Nursing homes are known to exhaust all residents’ individually owned assets before turning to government aid. This strategy, while legal, can leave families grappling with financial burdens and undermine one’s ability to pass down valuable assets to future generations.

One effective way to safeguard your valuable assets is by creating an irrevocable trust. An irrevocable trust allows you to continue the use of your assets during your lifetime while ensuring that they will be passed down to the beneficiary of your choosing. This type of trust establishes a distinct barrier between the ownership and control of assets. Since you are no longer the legal owner of property held in the irrevocable trust, nursing homes cannot target those assets, whether it be residences, liquid assets, or other valuable holdings. These trusts also have tax benefits because the assets held in the trust are often excused from estate taxes. It is important to note that Medicaid has a “look back” period to determine eligibility based on assets, typically spanning five years, so it is necessary to transfer assets well before you anticipate requiring long-term care. Creating an irrevocable trust to become eligible for Medicaid later in life is referred to as “Medicaid planning” and is a very common method of avoiding exorbitant nursing home costs.

Designating your healthcare power of attorney is another critical step in setting up your estate plan. This document empowers someone that you trust to make your medical decisions for you in the event that you are incapacitated or unable to make those decisions due to medical conditions. Within the realm of medical care, decisions ranging from treatment options to end-of-life choices can be intricate, sensitive, and emotionally charged. Entrusting someone with your healthcare power of attorney is akin to selecting a guardian for your health-related interests, someone who comprehends your values, beliefs, and healthcare preferences. This chosen individual, known as your agent or proxy, is armed with the legal authority to consult with medical professionals, review medical records, and ultimately make decisions aligned with your wishes when you are unable to articulate them yourself.

In addition to safeguarding assets through irrevocable trusts and appointing healthcare proxies, comprehensive long-term planning encompasses a spectrum of critical measures. Advance healthcare directives, financial power of attorney, and guardianship arrangements ensure holistic protection in times of incapacity. Estate tax planning and probate avoidance strategies optimize the legacy you leave behind, while asset protection methods and special needs planning address unique financial considerations. Beyond the financial aspects, the peace of mind derived from knowing that your loved ones are cared for and your values are upheld is an invaluable benefit of robust estate planning. This comprehensive approach not only safeguards assets but also reflects the commitment to providing a secure and dignified future.

As you craft your estate plan, it is necessary to have an experienced, knowledgeable attorney by your side. If you have any further questions concerning nursing home fraud, Medicaid fraud, or estate planning, please call the Trust and Estate Planning Law Office at (718) 333-2395 to take your next steps.