Your first priority in the time of grieving should be focused on the funeral arrangements.  You should determine whether or not your loved one had pre-planned funeral arrangements and/or a cemetery plot deed.

The person who is nominated as Executor in the will usually petitions the court for probate.  This does not happen automatically, and may not be necessary in every case.  A consultation with an attorney who practices in the area of probate or trusts and estates can be very helpful at this point.

New York State has specific laws that cover the distribution of a decedent’s assets if he or she dies without a will.  The law also determines the selection of the person who will act as “Administrator” of the estate and have the authority to handle estate matters.  However, this does not happen automatically, and someone must petition the Surrogate’s Court in the county where the decedent was domiciled to be appointed as “Administrator.”  A consultation with an attorney who practices in the area of probate or trusts and estates can be very helpful in this situation.

No.  There are specific laws regarding which family members are entitled to receive a decedent’s property if that person dies without a will.

No.  A Durable Power of Attorney terminates when the principal dies.  Letters Testamentary are issued by the Surrogate’s Court to the nominated Executor of a will when the will has been accepted by the court for probate.  The “Letters Testamentary” (or Letters of Administration if there is no will) indicate the Executor’s (or Administrator’s, if there is no will) authority to act in connection with the decedent’s estate.  The only way to obtain Letters Testamentary is through a probate (or administration) proceeding in the Surrogate’s court.

It would be important to enter the premises to find funeral and burial information, insurance policies, and a will.  You will have to file a petition to enter the property at the Miscellaneous Department of the Surrogate’s Court in the county where the decedent lived.  When the court order is issued, you should contact the police precinct that holds the keys and follow their instructions.

A trust agreement is a document that gives clear instructions that you want followed for property held in the trust for your beneficiaries. Common objectives for trusts are to reduce the estate tax liability, to protect property in your estate, to avoid probate, and even as part of long term care planning.

There are three important parties to a trust.

The first is the “grantor” or “settlor”, which is the person(s) who is creating the trust. The grantor creates the trust and puts his or her chosen assets into the trust.

The second is the “trustee”, the person(s) the grantor chooses to manage the assets in the trust. The grantor appoints the trustee to take good care of the assets in the trust according to the instructions written in the trust document.

The third is the “beneficiary” or “beneficiaries”, the person(s) for whose benefit the assets are held and managed. The trustee has the duty and authority to manage the assets for the benefit of the beneficiary, who is entitled to receive the assets in the amounts, percentages, and at the time indicated in the trust.

It is common for one person to play more than one role in a trust.

There are several reasons:

After you die, the court must be petitioned to “probate” your will.  Probate is the process by which your will is declared valid by the court, your executor is given authority, and the court makes sure that your wishes as stated in your will are carried out.  Probate takes time, can be quite expensive, and is a matter of public record, so you lose control of privacy.  A “living trust” (a trust created during your lifetime) can avoid these issues and make it much easier for those who survive you.

Also, a will has no effect until after you die.  A living trust can keep control of your assets out of the courts if you become incapacitated.  As an alternative to a power of attorney, or the need for someone to petition the court to appoint a guardian for you, the successor trustee (if you were the trustee of your own revocable trust) can seamlessly step in to manage the assets in your trust at your incapacity.

If you are the trustee of your revocable trust, then you still have full control and authority over the assets you choose to place in your trust.

You will have to change titles on your real estate and other assets with formal titles such as bank accounts, stocks, other investments.  This is not difficult, and our office can help you if you wish.  Each financial institution has its own process, but it can be as simple as giving instructions to the bank to change the name of the owner on your account.

An integral component of the estate planning process is funding your trust.  Remember, a trust will not achieve your objectives if you do not actually retitle your assets appropriately.

Not quite. A trust could be an appropriate part of the estate plan of anyone who owns property (including real estate, bank accounts, brokerage accounts and other investments, etc.). You don’t have to be wealthy to enjoy the advantages of a trust, such as avoiding probate, protecting your assets due to your incapacity, protecting your assets in the context of Medicaid planning, and keeping your estate plan private and out the public eye and the courts.

While it is true that the legal fee to prepare a trust may be higher than preparation of a will, keep in mind that probate will most likely cost more in attorney’s fees, court fees, time and loss of control.

As you might guess, an irrevocable trust cannot be changed or revoked.  Some of the reasons irrevocable trusts are used are for asset protection purposes such as estate tax planning or long term care planning.  While you will not retain control of your assets with an irrevocable trust, there are still tools that can be implemented to allow you to retain a level of control such as changing your ultimate beneficiaries, or removing and replacing a trustee if you are not happy with their trust administration. However, it is the general relinquishment of control that enables you to qualify for Medicaid benefits or minimize estate taxes. As with any legal document, always be sure you completely understand how your irrevocable trust works before signing it and transferring your assets into it.

Without a properly written will, you are giving up your legal right to decide who will receive your property after your death, and who will not receive your property.  You may also be creating additional costs and complications for your heirs after you die.  If you have minor children, you lose the opportunity to determine who will serve as guardian for them.  The court will name the guardian and it may not be the family member or friend that you would want.

The laws in New York state have very specific rules regarding the what makes a will valid, both in the way it is written and the way it is signed.  A will which is not prepared under the supervision of an attorney runs the strong risk of being declared invalid after your passing, at which time it is too late to fix.

If the account has a joint owner or is a “transfer-on-death” account, then rules for those types of accounts will apply.  However, if you are the sole owner of the account, then after your death, nobody has authority to access those funds unless the Surrogate’s Court gives them that authority.

Many, many unintended problems could arise when you add co-owners to your property.  The most obvious is your loss of ownership and control over the property, as the co-owner owns their share now, not after you die.  You might become a party to a lawsuit of the co-owner, and you might lose the asset to a creditor of the co-owner.  There may very likely be tax implications that must be carefully considered. If the property is real estate, there are many more legal issues that could arise if you add a co-owner. Further, only specific forms of co-ownership will result in a surviving co-owner automatically owning the entire property.

Do not confuse a will (a last will and testament) with a living will.  You already know that a will (last will and testament) sets forth a person’s wishes regarding the disposition of her property at their death.  A will is only operative after someone passes away. A living will is only operative during one’s lifetime. A living will is a document which sets forth your wishes regarding your end-of-life health care.  A living will exists as a written proof of your desires regarding such issues as withholding life support, and can be used as evidence of your wishes when you cannot speak for yourself.

In addition to a Last Will and Testament and in certain cases a Living Trust, there are several documents that are extremely important for all adults to possess.  They are a Durable Power of Attorney, and Advanced Healthcare Directives (a Health Care Proxy and a Living Will).

A Durable Power of Attorney allows you to appoint a person you trust, called an “agent” to handle legal and financial matters on your behalf.  It is called a Durable Power of Attorney because the document remains valid, even if you become incapacitated. A sudden injury or illness, or progressive dementia, are events that could result in a person’s incapacity. You may not need anyone to handle these matters on your behalf now, but if you do not prepare a Durable Power of Attorney while you are capable of doing so, then it will be too late if you should become incapacitated.

Yes, it is still a critical document. While a Durable Power of Attorney may not be necessary for your spouse to access money in accounts held jointly with him or her, a Durable Power of Attorney goes beyond paying bills and dealing with bank accounts. In the event of incapacity, a Durable Power of Attorney would be critical in many scenarios. A durable power of attorney may be necessary to deal with insurance matters, arranging payment plans for doctors, applying for Medicaid for long term care needs (home health aide, or nursing home), establishing a trust for your benefit to preserve your money or joining a program to access or maximize government benefits, selling or buying a home, dealing with a mortgage or other loan, to name a few. Even if you owns your home jointly with your spouse, if you lost mental capacity, your spouse wouldn’t be able to manage real estate issues on your behalf, such as selling your home, without a durable power of attorney in place. Further, some institutions and residences wouldn’t accept a new resident if there wasn’t an effective power of attorney in place. Think about anything in the world that you sign for on your own behalf – if you were incapacitated, you would want the peace of mind knowing that the person you choose and trust can deal with whatever financial or legal situation arises to best address your needs.

If you become unable to act for yourself, nobody can just take over and sign your name for you.  A bank or insurance company will not speak with anyone else but you without their proper legal authority. If you do not have a properly signed Durable Power of Attorney in place, a relative or friend would have to petition the court to make a declaration regarding your competence and appoint someone called a “guardian” to act for you.  Guardianship proceedings can have a high cost, both in terms of time and money.

The person that you appoint as your agent enters into a fiduciary relationship with you.  Under the law, the fiduciary owes you a duty of trust and confidence.  The agent must act according to any instructions you have provided or, where there are no specific instructions, in your best interest.  But remember that even though the law states that your agent may be liable under the law for his violation, if it is found that your agent has acted outside the authority granted to him in the Power of Attorney and has not acted in your best interest, there is no “power of attorney” police looking over your agent’s actions.  Therefore, you should always choose an agent who you totally trust.

No.  You do not lose your authority to act, even though you have given your agent authority similar to yours.  You may choose to keep your original documents yourself, but in a place accessible to your agent in an emergency.

Tell the bank that New York General Obligations Law, Article 5, Section 1504-1 says that in the absence of reasonable cause, they must honor a properly executed power of attorney.

Yes, it is true that New York State law provides specific language to be used in a Durable Power of Attorney, but there are many reasons why a person would want to have an attorney prepare the form and oversee the signing of the form.

First, the document can potentially give broad authority to your agent. You should be sure that you completely understand the document, and that you have any questions answered by an attorney, as the document advises on the first page.

Second, the document is rather complicated, without an attorney advising you, you are at risk to incorrectly complete, initial, and sign the document.

Third, there are powers that an agent may need in the future which are not listed and can not be granted by using the statutory form. Specifically, an Elder Law attorney would add many powers specific to your situation, or as may be required in the future. As an example, without additional provisions, your agent may not have the power to preserve assets in the context of Medicaid planning or proceed with tax planning to minimize estate taxes. The cost of not having a qualified Elder Law attorney prepare the power of attorney would seriously outweigh the cost of retaining an attorney to do so.

Well, New York’s Family Health Care Decisions Act (FHCDA) allows certain family members or close friends to make health care decisions for patients if they are unable to speak for themselves.  But New York Public Health Law gives competent adults a proactive powerful way to control their medical treatment even after they lose decision-making capacity, by allowing a competent adult to appoint someone they trust to make medical decisions on their behalf in the event they become unable to do so.  The FHCDA is not intended to take the place of appointing a health care proxy.

There are several disadvantages to relying on the FHCDA and choosing not to appoint a health care proxy. The law designates an order of priority for the person who can act as surrogate decision maker. The law may give authority to persons you would not want making health care decisions for you. Additionally, if you have several adult children, the law does not clarify which of your children have priority if they disagree. There are other limitations as well. It is best to have a Health Care Proxy that clearly designates the person that you wish to make crucial health care decisions for you, in the event you are unable to make decisions for yourself due to incapacity.

A living will is a document which sets forth your wishes regarding your end-of-life health care.  A living will exists as a written proof of your desires regarding such issues as withholding life support, and can be used as evidence of your wishes if you cannot speak for yourself.  If there is any doubt that your health care proxy’s decision is not in accordance with your wishes, the living will would come into play.

Our firm generally prepares a HIPAA Authorization which gives your health care agents the authority to receive your medical records.  We may also prepare a Designation of Burial Agent which would give the person you grant the authority to make burial decisions when you pass away.

By taking appropriate estate planning steps, you may ensure the future and the ability of a person with mental illness or other disabilities, who needs or is receiving public benefits, to live comfortably when you’re no longer around to be the caregiver.  At the same time, you may preserve governmental benefits that will pay for essential things like medical treatments, prescriptions and the like, while the funds you leave may be used for supplemental items or “extras” not covered by governmental benefits.

This is a trust, which is created by an attorney that can be funded by a family member, an inheritance, insurance policy or other assets.  It is used to supplement public benefits by paying for extra items that are not covered by Medicaid or SSI, such as vacations, computers and other items to enhance a beneficiary’s quality of life.

A first party Supplemental Needs Trust is created with the funds of a person with a disability under age 65, and would have a pay-back provision reimbursing the state at the beneficiary’s death for Medicaid assistance provided.  A third party Supplemental Needs Trust created with funds of someone other than the beneficiary and does not have a pay-back provision.

While you can plan in advance to ensure that the inheritance your special needs child or grandchild receives from you is protected immediately upon your death, if your child receives an inheritance from your estate without advance special needs planning, his or her government benefits will immediately be at risk upon your passing. He may then create a “first party” special needs trust, but the trust would be subject to Medicaid payback. Alternatively, if you had an estate plan directing their inheritance to go directly to a properly drafted “third party” special needs trust, the inheritance would seamlessly be protected without your special needs child needing to seek the immediate assistance of an attorney. In addition, with a third party trust that you create, the assets remaining in trust after the passing of the special needs beneficiary can be distributed to your remainder beneficiaries and not be subject to Medicaid payback.

The Trustee would pay for items to benefit the beneficiary that are generally not provided by public benefits. By way of example, distributions might include for expenses associated with household goods, recreational equipment, entertainment, and travel expenses.

This is a written statement drawn up by the person creating the trust, for example, the beneficiary’s parents, if they are creating the trust, or their attorney, that outlines the wishes of the parents as to how the money in the Supplemental Needs Trust should be used for the beneficiary, where the beneficiary should live, how the residence will be maintained, who will monitor the care and any other items important to the parents. Weight will be given to the grantor’s intent in the creation of the trust if a situation arises and it is unclear on how to proceed in trust administration.

Yes, most likely he or she can.  Medicaid is a “means tested government entitlement.”  In plain language, this means that a person’s income and resources must be below a certain level in order to be eligible for benefits, among other eligibility requirements.  With proper planning, a person can protect his or her assets.  Many people are often misinformed regarding Medicaid planning issues, and think that there is nothing they can do to protect their assets and must first spend them each month to pay for their nursing home fees until they are below the Medicaid level of assets limit.  This is almost always not true!  In most cases, at least some assets can be protected even at a very late date.  However, the earlier the planning is started, generally the more assets can be protected.

Maybe, but the New York State Department of Health lists the annual estimated average nursing home rate in 2018 at $156,636.00 on Long Island and $147,828.00 for New York City. Most people without unlimited wealth who enter a nursing home will eventually have to rely on Medicaid to assist in payment of their health care. If you or a loved one are searching for the right nursing home, please be sure to take a look at this checklist for help.

Yes. Eligibility rules are different for Medicaid home care than for Medicaid nursing home care, and it is possible your parent may very well qualify for Medicaid home care fairly easily.

Absolutely yes.  Elder law attorneys work within the guidelines of the law to help you qualify for benefits.  There are many legal planning opportunities that an elder law attorney can implement for you or your loved one should the need for long term care arise.

In New York it is true that you don’t have to use an attorney to prepare a Medicaid application.  In fact, you can do it yourself.  But remember that the law has many nuances and intricacies.  Imagine having a nursing home prepare and submit your parent’s Medicaid application, and it is approved.  But after parent’s death, you find out that a lien has been placed on your parent’s house in the amount of the benefits which Medicaid paid out for your parent.  Nobody advised you that the house could have been protected under the law under one of the Medicaid exceptions to the transfer of assets rules.  While someone who works for a nursing home may have the best interests of the nursing home in mind while preparing your Medicaid application, the attorney has an ethical duty to advocate for you and your interests.

Furthermore, while it is legal for the nursing home, or a non-attorney Medicaid expediter assist you with your Medicaid application, they are not authorized by law to give you legal advice to maximize the protection of your assets in the process of accessing Medicaid benefits. Having an attorney advise you how to best protect your assets, using different techniques and exceptions to the transfer of assets rules, may ultimately result in savings exponentially greater than the attorney’s fee. And vice versa, failure to use the assistance of an attorney can potentially have results to the opposite effect.

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