Tuesday, December 31, 2013

2014: New Rules; New New Year's Resolutions!

                                      NEW YEAR'S RESOLUTIONS FOR 2014

2013 introduced significant legal and social developments in our country such as:
  • the United States Supreme Court's ruling in Windsor resulting in federal rights being available to married same sex couples
  • individuals delaying their retirement age due to increased life expectancies, weakened retirement systems and poor financial planning Click here to read more and
  • states like Pennsylvania passing laws that hold adult children financially responsible for their parents' care in a nursing home Click here to read about filial responsibility.
From my perspective as a legal advisor the 'take-away' is about planning and being accountable for creating the life we desire.  As you get ready to celebrate this New Year here are a few new years' resolutions to consider implementing now:
  1. Invest in your, and your family's, future by having quality legal documents prepared before an emergency arises. Legal documents such as a Durable Power of Attorney and Designation of Healthcare Surrogate may prevent a court ordered guardianship proceeding that can be costly and time-consuming.
  2. Schedule an appointment at your local Social Security Administration to learn how to maximize your retirement benefits and possibly your spouse's spousal benefit by starting and then suspending your benefit or, delaying your retirement age. Click here to read more
  3. Create a team of advisors (attorney, accountant, financial advisor) early in 2014 to guide you.
We want to be your trusted legal advisor through life.  Start your new year off on the right foot by becoming an informed legal consumer:
We wish you a healthy and happy 2014!

Wednesday, December 18, 2013

Key Tax & Financial Figures for Estate Planning in 2014

                         Important Figures to Know As You Plan for 2014

Beginning January 1, 2014, several federal agencies will be providing cost of living increases to select government programs and tax related laws.  Be sure you have current information before you take steps to qualify for Medicaid or, make gifts and certainly discuss it with your accountant.  Here are a few of the most important changes:
  1. Federal Gift Tax Exclusion: This sum will remain at $14,000.00  per person to an unlimited number of individuals. Married couples can use split-gifting and gift up to $28,000.00 per person.
  2. Federal Estate Tax Exclusion: Up to $5.34 million dollars will be excluded at the death of an individual. Any sum over this amount will be taxed. Consult with your estate planning attorney and accountant on the options to reduce your estate tax.
  3. Medicaid Home Equity Limit: A home is exempt in Florida up to the equity value of $543,000.00. That means the value of the home does not prevent a person from receiving Medicaid benefits.
  4. Medicaid Income Limit: Florida is one of fourteen states that imposes an income limit for a Medicaid applicant. It will be set at $2,163.00 per month; this is gross before deductions.
  5. Medicaid Community Spouse Resource Allowance:  When a member of a married couple becomes ill and applies for Medicaid the healthy spouse can keep up to $117,240.00 of countable resources (i.e. bank accounts, investments).  There are assets that are exempt (whose value does not count) which can be kept in addition to the countable resources.
The Medicaid rules and tax laws have many nuances so it is important to have all your advisors working together to explore the options and the consequences.  Medicaid now has  a 5 year look-back period - if you have made gifts during this period it will delay your ability to qualify for Medicaid - don't dabble, seek qualified advice.

Meet with a qualified elder law attorney and create a plan that will make the aging process easier for you and provide for the comfort and care of your loved ones.  Our firm is here to guide you. We want to be your trusted planning advisor through life.sm

Monday, December 16, 2013

PET TRUSTS

                          Your Beloved Pet Deserves a Pet Trust

Recently, more people are including their pets in their estate plan.  In 2012 a Tennessee resident died and provided for the future care of his two casts in his Last Will & Testament.  He has left $250,000.00 and his home to Frisco and Jake. The monies that remain after Frisco, the older cat, dies will be distributed to his family provided that they care for the remaining feline. Click here to read more.

Many clients have shared with me how their lives have been more meaningful by sharing their home with a pet.  It is only fitting to plan for the future of your pets after you have left this earth.  Florida and other states have laws that permit pet trusts. A pet trust can be created in your Last Will & Testament or your Revocable Trust.  Consider these preparation tips before you meet with your elder law attorney:
 
1. Identify all your intended beneficiaries (people, animals and charities).
 
2. Determine what assets and how much you would like to leave to each beneficiary. It is generally best to work with percentages and not dollar amounts. No one has a crystal ball to predict what assets will remain at your demise.  Using percentages assures that each beneficiary will receive something.
 
3. Think about whether you want your pets and other beneficiaries to receive assets at the same time or, if your priority is the animals first and then distribute remaining assets to individuals and/or charities.
 
4. Identify a trusted person or organization to care for your pets.
 
5. Create a rough estimate of the yearly cost of care for your pets.

Once you have prepared, meet with a qualified elder law attorney and create a plan that will make the aging process easier for you and provide for the comfort and care of your loved ones.  Our firm is here to guide you. We want to be your trusted planning advisor through life.sm

Monday, December 9, 2013

Lessons I Learned from my Father

                         Lessons I Learned From My Father

My father, Howard Schneider, died on November 16, 2013.  When I graduated law school my father told me that the experience would serve me well and he was right.  My father's legacy is his work ethic, the importance of one's character and credibility, and the bravery he exhibited living with Parkinson's.  I am grateful for his legacy as it has made me a better person and a caring elder law attorney. During my 20 year career as an elder law attorney I have endeavored to educate and empower clients to make informed decisions that will bring them peace of mind.  In honor of my father  I would like to share with you my top tips to help clients and their caregivers as they experience the aging process. I hope that these tips will serve you well:
  
1.  Don't Be Penny Wise and Pound Foolish:  Sometimes you can take a shortcut to get to the goal line and sometimes you can't.   Don't use an internet program, or an attorney who is not a specialist, to create your legal documents just to save a few bucks.  When it comes to your legal plan do it right the first time by hiring a qualified professional. Otherwise, you may spend more money later to fix the problem.

2.  Don't Let Rumors Determine Your Future: I see clients who listen to neighbors for legal advice and  then make decisons based on fear.  Beware! There is a lot of misinformation floating out there. Do not add your children's names onto your accounts thinking it will avoid probate. You may create a problem by exposing your accounts to your child's creditors such as in a divorce or bankruptcy.  Invest in a well drafted Durable Power of Attorney that will give your children authority to handle your financial affairs (not own your assets) during your illness or incapacity.

3. Veterans Should Avoid Becoming Victims:  The VA provides a variety of benefits (financial assistance and healthcare) to veterans and their immediate family members.  Unfortunately, there are unscrupulous people who tell veterans that they can help them apply for benefits for a small fee.  Don't be duped into buying inappropriate investments with a promise of qualifying for benefits.The VA prohibits anyone, including an accredited advisor (like myself), from charging for assisting a veteran to file an application for benefits.  First seek advice from an accredited advisor and then have the local veteran service office assist you with the application, at no charge.

4.  Medicaid and The Home: In Florida we are fortunate to have homestead laws that protect the home from creditors including Medicaid. Don't panic and transfer your home to your child. You will make yourself ineligible for Medicaid benefits.  Consult with me and I will show you how to protect your home and qualify for Medicaid in the event of a long-term illness.

5. Social Security Survivor Benefits:  Healing from the loss of a beloved spouse can be challenging.  Sometimes, we  postpone dealing with things.  The one thing you do not want to put off is meeting with the Social Security office to determine your entitlement to receive spousal or survivor benefits.  If you are divorced you are entitled to benefits if you were married for 10 years. If you are married, you must be married 1 year to be eligible. The amount of the benefit is based on several factors including the surviving spouse's age, whether the surviving spouse has begun to receive benefits and whether the decedent suspended his/her benefits. Don't wait because you may lose the right to receive monies that can help you meet your financial obligations.

Today is a new day - seize it and be proactive. Meet with a qualified elder law attorney and create a plan that will make the aging process easier.  Our firm is here to guide you. We want to be your trusted planning advisor through life.