Dear Mr. Di Costanzo: Can Medicaid take my home if I get sick? If you fall ill, you may seek Medicaid benefits to help pay for your care at home or in a nursing home. If Medicaid begins paying for care, Medicaid can try to recoup what it has paid on your behalf either by…
Dear Mr. Di Costanzo: Why do I need a Will or Trust if all my accounts have designated beneficiaries? Beneficiary designations are extremely important and one of the most overlooked tools in an estate plan. For certain assets, such as retirement accounts, the lack of a designated beneficiary can cause adverse tax consequences. One…
Dear Mr. Di Costanzo: I own my home. If I need to apply for Medicaid will my home be protected? Your home is likely your most valuable asset and it is important to know if it will be protected in the event you need long term care.
Over the years, I have found that one of the biggest obstacles preventing clients from pulling the trigger on a Medicaid Trust is the perception that all control is lost over the assets being transferred to the trust. While it is true that legal title to the assets must be transferred to the trustee, a…
Simply transferring your house to your children is the least favorable planning technique in an attorney’s arsenal. The optimal way to protect your house is to use a trust. First, if you transfer your house to your children, you no longer have any rights to use an occupy the house. You become a guest in…
The Perils and Pitfalls of Owning a Co-op We have all heard a horror story or two about co-op ownership. These stories usually arise out of actions or inactions taken by the Board of Directors (“Board”). For instance, a Board might implement a policy requiring a percentage of the floor to be carpeted. Some Boards…
by Salvatore M. Di Costanzo, Esq., and Joanna C. Feldman, Esq. Regardless of whether your estate plan is basic or complex, it is important to review the plan every few years for reasons that include life events and changes in laws and/or regulations. Life Events Estate plans can change drastically upon the occurrence of certain…
Co-authored by Joanna C. Feldman This question was recently asked at an event we hosted during which we discussed strategies to leave a legacy after death. A Medicaid Trust is an irrevocable trust used to protect assets should one need nursing home care and seek Medicaid to help cover the cost. Because assets in a Medicaid…
Remember, the purpose of a revocable trust is to avoid probate and following fact patterns make it a necessity to use a revocable trust. Owning property outside of New York State If you own property outside of New York State in your individual name, a proceeding must be commenced in the other state to transfer…
Obtaining eligibility for Medicaid often requires transferring assets to a spouse or other family members. When transferring assets, one must always consider the tax consequences of doing so. Obviously, there are many types of assets and each asset class may be treated differently from a tax perspective. There is no simple answer to your question….
For many families, a good portion of their wealth exists through the equity in their home. The home may also be the most sentimental asset as it carries many memories and emotional ties. We often counsel clients on different planning techniques to protect the home where Medicaid is contemplated to pay for nursing home or…
Special Needs Trusts are an integral part of almost every estate plan. I use them in most of my estate planning documents. There are two types of Special Needs Trusts: First Party and Third Party. A First Party Special Needs Trust is a trust created with the assets of a disabled person who is under…
Special Needs Trusts are an integral part of almost every estate plan, yet, most people do not realize this. Typically, those who consult us on the applicability of Special Needs Trusts are either disabled or closely involved with a disabled child or other adult. In these instances, the need for a Special Needs Trust might…
This is a very common issue with revocable trusts and it results from not respecting the formalities of the trust. In order for a revocable trust to work as intended, that is, to avoid probate, your assets must be transferred to the trust. For instance, if you own a house, the deed needs to be…
Unfortunately, we cannot control if and when we may fall ill but we can be proactive to protect our financial assets by planning early. The risk of requiring a nursing home within five years of creating a Medicaid Trust is generally a risk associated with waiting too long to meet with and elder law attorney….
It is worth noting at the outset that there are many types of irrevocable trusts. I think it is safe to assume that when you reference an irrevocable trust, you are speaking of the trust that we regularly use to protect your assets if you need to apply for Medicaid in the future. For our…
Leaving assets to your children gives rise to many considerations. For instance, if the child is a minor, you do not want assets passing to that minor child outright. Even if the child is not a minor, there is a widely accepted sentiment that most children should not take total possession and control of…
Medicaid Planning in Advance of Changes to the Healthcare System By: Salvatore M. Di Costanzo, Esq. With Congress about to break for a two week Spring recess, the repeal of Obamacare appears to have stalled and remains uncertain. Notwithstanding, we must pay attention to the various proposals that have been put forth by the…
This is a real fact pattern. I recently met with a family whose 86 year old Mother was admitted to a nursing home for dementia. They sought my assistance in obtaining Medicaid eligibility to pay for the nursing home, which cost $15,000 per month. Mother is still on Medicare which pays for the first 100…
