Posts filed under 'Estate Planning vs. Elder Law Planning'
December 30th, 2011
Recent changes to New York State Medicaid laws have expanded the definition of an “estate” for Medicaid estate recovery purposes.
Upon the death of a Medicaid recipient, Medicaid can recover expenses paid on behalf of the recipient from his or her estate, under certain circumstances. Before the new regulations were put into place, Medicaid limited its claims to the decedent’s probate estate, which generally included only those assets that passed through a will or intestacy. Now, with the expansion of the definition of estate, Medicaid is also taking into consideration assets outside of the probate estate, including jointly held real or personal property, retained life estates and interests in trusts. Therefore, assets that were previously protected from a Medicaid claim may now be at risk.
Despite the changes in the law, you can still effectively plan for your future long-term care needs and preserve some, if not all, of your assets. Now, more than ever, it’s important to review your current plan with an Elder Law attorney to be sure that you are in the best possible position to preserve your life’s savings and protect your property. Call the Elder Law attorneys at Lamson & Cutner at (212) 447-8690, to schedule a consultation.
September 15th, 2011
The NYS Department of Health has finally issued long-awaited regulations implementing changes in New York law regarding recovery and reimbursement from estates of Medicaid recipients. These changes have been very controversial because the law’s new definition of what constitutes the “estate” is in conflict with other, long-established, laws affecting estates, trusts, and real estate. In essence, under the new laws and regulations, Medicaid will seek to recover from non-probate assets, i.e., assets that have never been considered to be part of a decedent’s estate, or even to exist at all after death. A prime example is that Medicaid will seek to recover the value of life interests in real estate (which, under real estate law, are extinguished upon death). Lamson & Cutner is currently analyzing the new regulations, and will be posting additional advisories once we have a clear view of their implications.
October 28th, 2009
Estate planning and Elder Law are related but distinct legal practice areas. In some instances, individuals and married couples will have excellent estate plans that become entirely inadequate if they need long-term care. The estate planning attorney is not to blame; his client had different objectives in mind at the time.
The current recessionary environment has exacerbated these situations. Even clients with substantial assets have been significantly affected by investment and property losses, in addition to income disruption when employment is terminated. Older individuals have less time to recover from these financial blows. These realities coupled with high estate taxes often create devastating financial scenarios for ill people and their families.
The solution is to have a careful review of any existing estate plan you may have by an Elder Law firm. Even under normal circumstances, it’s a good idea to have a periodic review of an estate plan to make any necessary revisions based on any changes in your situation or perspectives. However, when critical illness is a factor, it’s absolutely vital to your economic well-being and security to review and potentially to revise your estate plan.
Wills or trusts may have to be revised or updated. A Health Care proxy to effectuate your wishes about medical care may have to be drafted. Typically, these and other considerations need to be examined and addressed.
You can get a better sense of the interface between Elder Law and estate planning by reviewing strategy #18, #19 and #20 in Lamson & Cutner’s Special Report, 25 Strategies to Prevent Financial Ruin from Long-Term Health Care Costs. There’s also a separate section of the firms website devoted to the topic here.
