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:

• download our gift certificate for a 20% discount on the initial consultation and call our office to schedule your appointment;
• visit our website and sign up to receive our free e-mail newsletter containing powerful tips and important information;
• like us on Facebook.

We wish you a healthy and happy 2014!

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

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

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.

  

How Much Does a Simple Estate Plan Cost?

                                   "How Much Do You Charge for a Simple Estate Plan?"

Ever since the United States economy tanked in 2008, along with the downturn in the Florida real estate market, I've observed that a lot of people became frozen by the fear of not having enough money and delayed seeking elder law advice to resolve important legal issues.

Many families found themselves in a legal crisis. Why? Because they didn't want to invest in their future and seek qualified legal advice at the earliest possible time.  What I refer to as the 'fear of lack' instead of abundance (the glass is half full), has caused people to take shortcuts to resolve their legal issues - these shortcuts often result in more problems and expense to fix. Unfortunately, the delays I witnessed resulted in people incurring more legal fees to fix the problem, losing the privacy in their lives (due to guardianship) and having fewer planning options. 

 A common situation is people creating their own legal documents on the internet through Legal Zoom or other service.  In many situations those documents were not properly signed (so they are not valid) or, didn't fully address their legal needs.  Sadly, this is a perfect example of being 'penny wise and pound foolish.'

Since 2008 my office receives calls from people asking "how much does it cost for a simple estate plan?" or, "how much will it cost to protect my assets and qualify for Medicaid?" Unless the caller receives a range of legal fees, the caller won't schedule a consultation.   My staff and I cannot diagnose your issues in a few minutes on the telephone in order to tell you the cost of our legal services--as qualified and experienced as I am.  Just like a doctor cannot diagnose and treat a patient's medical issue over the telephone.  We do not want to scare anyone away by quoting a range of fees that may not apply to your particular situation.  We want to motivate you to be an informed consumer. At our firm we: 

• tailor our advice and recommendations to your circumstances and needs while treating you  with compassion
• educate you about the law, your rights and planning options
• empower you to make an informed decision to achieve your goals that helps create peace of mind.

      To do this effectively, I need to meet with you to: 

1. discuss what is happening or changing in your and your spouse or partner's lives;
2. identify your concerns and goals;
3. review your finances (type of assets and income, value and ownership); and
4. determine which legal planning options will best help you achieve your goals based on your circumstances.

There is no 'one size fits all' solution to creating an estate or asset protection plan.  Each person is unique and deserves to receive a comprehensive analysis with recommendations tailored to them.  That is why when you visit my firm's website (www.fl-elderlaw.com ) you can download a gift certificate for a 20% discount for the initial consultation.  The consultation will be an investment in your future.  At the end of the consultation you will not only leave informed about your planning options you will also receive a written proposal for legal services. 

As a well known businessman suggested: Be an educated consumer. Don't make decisions that impact your future and your family based on fear.

We are pleased to work with our clients at our office, via telephone where appropriate, and we make house-calls. Our goal is to counsel people of all ages to co-create a plan that achieves your goals.

How to Find a Healthcare Advocate

                                                CHOOSING A HEALTHCARE FIDUCIARY         
Now that you are motivated to have legal documents prepared to designate a medical decision-maker in the event of your incapacity you might find yourself asking "whom should I name?"  This question is not uncommon especially for people who:

• are not married or  
• are divorced or 
• whose spouse is deceased or
• who have no children or
• are an only child

There is a solution: a healthcare fiduciary or, healthcare advocate. The healthcare fiduciary can be someone that you compensate to handle the responsibility of supervising your medical care and making healthcare decisions. This individual can be a professional with education and work experience in the fields of social work, medicine or, geriatrics.  For example:

• a social worker
• geriatric care manager
• professional guardian or
• a patient care coordinator. 

     Here are some tips for beginning the process:

1. Interview more than one person as your prospective healthcare fiduciary. Ask the person about their knowledge of medical issues and end-of-life care. Evaluate the person's communication skills and their level of compassion. 
2. Request that the person provide you with a client reference you can call.
3. Inquire how the healthcare fiduciary charges for their services (i.e. hourly rate charges).
4. Ask who will cover for that person when they are on vacation. 
5. Request a written agreement that identifies their duties and responsibilities to you and how he/she charges.
6. Determine how often you and the healthcare fiduciary will communicate and/or visit while you are healthy. If it is just a telephone call, ask if you will be charged and at what rate. 

Once you have selected a healthcare fiduciary, make an appointment to meet with me, your trusted advisor through life, to create your Designation of Healthcare Surrogate and your Declaration of Funeral Designee (that person will make and carry out your funeral arrangements in the event you have not made them prior to your demise). Remember: The benefits of having these documents is that you choose who will assist you when you are incapacitated, you maintain privacy in your life as well as avoid a court supervised guardianship. Don't delay let's create your plan today!

 

TRUSTEE OF SPECIAL NEEDS TRUST VIOLATED FIDUCIARY DUTY

TRUSTEE OF SPECIAL NEEDS TRUST VIOLATED FIDUCIARY DUTY 
All trustees face the challenge of forecasting future needs of special needs trust beneficiaries.  In order to develop an expenditure plan that is reasonable and based on realistic expectation of the beneficiary and their family requires the trustee must get to know the person.  Otherwise, the trust assets will not be used in the most effective way to improve the quality of life and quality of care for the trust beneficiary.

A New York Judge recently issued an opinion that will impact how trustees administer special needs trusts.  It is refreshing to see that there are advocates, including in the judiciary, for people with disabilities seeking to protect them and improve the quality of their lives. Judge Kristin Booth Glen is to be commended. Click here to read about Judge Kristin Booth Glen. The case Judge Glen heard involved a wealthy widow who created a trust for her two sons. One of the sons, Mark Holman, had communication skills of a toddler and could not feed or dress himself. Mark was diagnosed as autistic. He lives in a group home. Mark’s trust was valued at $3M.

The drafting attorney, Harvey Platt, Esquire, and JP Morgan served as Co-Trustees of Mark's special needs trust. Mark received Medicaid benefits. Trust monies had not been disbursed for the benefit of Mark for years but had been used to pay trustee fees. The attorney for the widow petitioned the court (after the widow’s death) to become the Guardian for Mark.  Judge Glen asked attorney Platt when he had last seen Mark. Mr. Platt had not seen Mark for years before Mark's mother's death, and this greatly bothered the Judge.  This co-trustee had no idea what Mark's needs were, his abilities or how he was being cared for by the group home.

 

Judge Glen reviewed the special needs trust accounting submitted by the Co-Trustees and found that it was lacking in several ways and ordered them to amend it. Judge Glen went so far as to rule that the compensation of the Co-Trustees should be reduced or denied for the period of time that they took no steps to spend the trust assets for Mark's benefit.  Click here to read the Mark Holman decision

Here are some tips for trustees:

1. use due diligence to learn about the trust beneficiary
2. schedule at least quarterly meeting with the trust beneficiary and their legal representative
3. employ a care manager with a medical or social work background and experience to guide you in making appropriate disbursement for the trust beneficiary.

Trustees who are asked to serve as a fiduciary of a special needs trust need to determine whether they have the education, training and resources to properly administer a special needs trust. If a potential trustee does not have the resources to make this commitment then they need to decline. Trustees need to stay alert and understand that their responsibility is not just to invest the trust assets.  On a much larger scale the Trustee must fulfill the terms of the trust and use the trust assets to improve the quality of the beneficiary's life.

 

Here are some tips for families who are considering a corporate trustee: 

• Interview more than one corporate trustee
• Ask for references you can speak with (i.e. other families whose special needs trust are being administered by this trustee)
• Have a list of questions or ask your elder law attorney to provide you with questions to pose.
• When the trust is drafted consider including language that will permit the removal of a trustee for failure to establish a rapport with the beneficiary or failure to communicate with the beneficiary.

Our firm encourages our clients to interview potential trustees. In addition, I sit with my clients while they are doing the interviews to help them understand trust administration issues.  At my law firm, we empower our clients to become informed consumers.