December 1, 2009
7 - 9 pm
Somerset Gardens Senior Living
150 Sunnyside Boulevard
Plainview, NY 11803
Call (516) 576-3330 to reserve your spot today!
Space is limited. Refreshments will be served.
Friday, October 23, 2009
Planning for The Future
The Estate Planning & Elder Law Center and Somerset Gardens Senior Living are teaming up to bring you a COMPLIMENTARY Estate Planning & Long-Term Care WORKSHOP!
December 1, 2009
7 - 9 pm
Somerset Gardens Senior Living
150 Sunnyside Boulevard
Plainview, NY 11803
Call (516) 576-3330 to reserve your spot today!
Space is limited. Refreshments will be served.
December 1, 2009
7 - 9 pm
Somerset Gardens Senior Living
150 Sunnyside Boulevard
Plainview, NY 11803
Call (516) 576-3330 to reserve your spot today!
Space is limited. Refreshments will be served.
Would you and your spouse benefit from an additional $23,396 per year?
In addition to compensation for veterans with service connected disabilities, the government offers monetary benefits to veterans in honor of their service who are either 65 or older or who are ill or disabled. The illness or disability need not have been caused or exacerbated by the veteran’s service.
There are different levels of pension benefits, and many veterans are not even aware that the VA awards pension benefits to veterans in need of long-term care who meet certain service, income and asset criteria. Significantly, the VA considers all or part of assisted living expenses as medical expenses. Thus, many veterans and/or their surviving
spouses may be eligible to receive Aid and Attendance benefits to help defray the monthly cost
of home care aides or assisted living facilities. The following are the 2009 maximum VA Aid and
Attendance pension rates:
Single Veteran: $1,644.67 per month or $19,736 per year.
Married Veteran: $1,949.68 per month or $23,396 per year.
Surviving Spouse: $1,056 per month or $12,672 per year.
The Estate Planning & Elder Law Center is fully qualified to help you or your loved ones apply for and obtain Veteran’s benefits. Please contact us for more information or to schedule a complimentary consultation with Wendy K. Goidel, Esq., a VA accredited attorney.
There are different levels of pension benefits, and many veterans are not even aware that the VA awards pension benefits to veterans in need of long-term care who meet certain service, income and asset criteria. Significantly, the VA considers all or part of assisted living expenses as medical expenses. Thus, many veterans and/or their surviving
spouses may be eligible to receive Aid and Attendance benefits to help defray the monthly cost
of home care aides or assisted living facilities. The following are the 2009 maximum VA Aid and
Attendance pension rates:
Single Veteran: $1,644.67 per month or $19,736 per year.
Married Veteran: $1,949.68 per month or $23,396 per year.
Surviving Spouse: $1,056 per month or $12,672 per year.
The Estate Planning & Elder Law Center is fully qualified to help you or your loved ones apply for and obtain Veteran’s benefits. Please contact us for more information or to schedule a complimentary consultation with Wendy K. Goidel, Esq., a VA accredited attorney.
The “New” New York Power of Attorney Law
On September 1, 2009, a new Power of Attorney law went into effect in New York State. The new law (Section 5-1513 of the General Obligations Law) makes significant changes to the use of Powers of Attorney in New York. Although the new statutory short form Power of Attorney must be used after September 1, 2009, it is important to note that the new law does NOT affect the validity of any Power of Attorney which was executed prior thereto and must be honored by third parties to which they are presented.
What you need to know Powers of Attorney (POAs) are a critical part of every estate plan. They are effective and useful for estate and financial planning and to avoid a costly, intrusive and protracted guardianship proceeding in the event of mental incapacity. While effective and useful, Powers of Attorney are potent documents which can grant myriad powers to agents, including the ability to enter into gifting transactions which can thwart the principal’s estate plan. The principal has the right to delegate broad powers to the agent but may not understand the implications and ramifications of the document. This is the reason why the document should not be executed absent advice of a qualified estate planning attorney. The Power of Attorney law was amended partly in response to abuses which have occurred (and the risk of abuse) by agents or attorneys-in-fact. Among the major changes or revisions include the following:
1. The document must be signed, dated and duly acknowledged by both the principal and the agent. The POA is not valid until the agent signs the document, which can be any time after the principal has signed it, even after the incapacity of the principal. If two or more agents are designated to act together, the POA is not effective until all agents have duly executed the document. Some clients ask us to hold onto their original POAs so that they cannot be used until the need arises. The change in the law presents a further opportunity for attorneys in certain circumstances to hold onto original POAs for later execution by agents pending
the principal’s incapacity or need.
2. To give the agent the ability to make gifts in excess of the annual exclusion amount ($13,000, or $26,000 for married couples, in 2009), such authorization must be made in a separate document called a “Statutory Major Gifts Rider” (“SMGR”). The SMGR must be executed simultaneously with the POA before two witnesses in the same manner as the execution of a Will. The SMGR, which can authorize the agent to make gifts to himself, must be annexed to the POA. However, if the principal had a custom of gifting to individuals and charities, gifts up to $500 can be made by the agent without a SMGR.
3. The amendment includes an explanation of the agent’s fiduciary duties. A notice is added to the form which explains the agent’s role, fiduciary obligations and legal limitations on his authority.
4. In compliance with HIPAA privacy rules, the phrase “health care billing and payment matters” has been added to the phrase “records, reports and statements” so that an agent can examine, question and pay the principal’s medical bills. This does not give the agent the power to make health care decisions on behalf of the principal. That grant of authority must still be made in a separate health care proxy.
5. The form includes an option to designate another individual to monitor the agent’s actions. The monitor is given the power to request that the agent provide the former with a copy of the POA and copies of all records documenting transactions made by the agent on behalf of the principal. This holds the agent accountable for any and all actions. In addition, when an agent presents a POA to a financial institution, the latter may demand an affidavit that the POA is in full force and effect. In the past, many financial institutions have been reluctant to accept
POAs. The new law requires all third parties to accept a properly executed statutory short form POA unless there is reasonable cause not to. In addition, a separate section of the General Obligations Law now provides for a special proceeding for a court order compelling a third party to accept the POA.
6. The principal may permit the agent to be compensated for reasonable expenses incurred in carrying out his or her duties. The principal may define “reasonable compensation” within the document.
7. The POA revokes any previously executed powers of attorney, and survives the principal’s subsequent incapacity, unless otherwise stated in the document. Although the new statutory short form POA is much more extensive than the prior form, both the new form and the law provide many more safeguards for the principal and instructions for the agent.
If you executed your POA prior to September 1, 2009 and would like us to prepare the new POA for you, please contact our office for a complimentary consultation.
What you need to know Powers of Attorney (POAs) are a critical part of every estate plan. They are effective and useful for estate and financial planning and to avoid a costly, intrusive and protracted guardianship proceeding in the event of mental incapacity. While effective and useful, Powers of Attorney are potent documents which can grant myriad powers to agents, including the ability to enter into gifting transactions which can thwart the principal’s estate plan. The principal has the right to delegate broad powers to the agent but may not understand the implications and ramifications of the document. This is the reason why the document should not be executed absent advice of a qualified estate planning attorney. The Power of Attorney law was amended partly in response to abuses which have occurred (and the risk of abuse) by agents or attorneys-in-fact. Among the major changes or revisions include the following:
1. The document must be signed, dated and duly acknowledged by both the principal and the agent. The POA is not valid until the agent signs the document, which can be any time after the principal has signed it, even after the incapacity of the principal. If two or more agents are designated to act together, the POA is not effective until all agents have duly executed the document. Some clients ask us to hold onto their original POAs so that they cannot be used until the need arises. The change in the law presents a further opportunity for attorneys in certain circumstances to hold onto original POAs for later execution by agents pending
the principal’s incapacity or need.
2. To give the agent the ability to make gifts in excess of the annual exclusion amount ($13,000, or $26,000 for married couples, in 2009), such authorization must be made in a separate document called a “Statutory Major Gifts Rider” (“SMGR”). The SMGR must be executed simultaneously with the POA before two witnesses in the same manner as the execution of a Will. The SMGR, which can authorize the agent to make gifts to himself, must be annexed to the POA. However, if the principal had a custom of gifting to individuals and charities, gifts up to $500 can be made by the agent without a SMGR.
3. The amendment includes an explanation of the agent’s fiduciary duties. A notice is added to the form which explains the agent’s role, fiduciary obligations and legal limitations on his authority.
4. In compliance with HIPAA privacy rules, the phrase “health care billing and payment matters” has been added to the phrase “records, reports and statements” so that an agent can examine, question and pay the principal’s medical bills. This does not give the agent the power to make health care decisions on behalf of the principal. That grant of authority must still be made in a separate health care proxy.
5. The form includes an option to designate another individual to monitor the agent’s actions. The monitor is given the power to request that the agent provide the former with a copy of the POA and copies of all records documenting transactions made by the agent on behalf of the principal. This holds the agent accountable for any and all actions. In addition, when an agent presents a POA to a financial institution, the latter may demand an affidavit that the POA is in full force and effect. In the past, many financial institutions have been reluctant to accept
POAs. The new law requires all third parties to accept a properly executed statutory short form POA unless there is reasonable cause not to. In addition, a separate section of the General Obligations Law now provides for a special proceeding for a court order compelling a third party to accept the POA.
6. The principal may permit the agent to be compensated for reasonable expenses incurred in carrying out his or her duties. The principal may define “reasonable compensation” within the document.
7. The POA revokes any previously executed powers of attorney, and survives the principal’s subsequent incapacity, unless otherwise stated in the document. Although the new statutory short form POA is much more extensive than the prior form, both the new form and the law provide many more safeguards for the principal and instructions for the agent.
If you executed your POA prior to September 1, 2009 and would like us to prepare the new POA for you, please contact our office for a complimentary consultation.
Wednesday, October 7, 2009
Why Do I Need To See An Estate Planning Attorney?
When you are suffering from a cold or flu, you make an appointment with your family doctor or internist. If you need to have heart bypass surgery, would you ask your family doctor to perform the surgery? Or would you make an appointment with a cardiologist who specializes in such procedures?
The same should be true for legal matters. The law has become much more complicated, requiring attorneys to limit their practices to one or more areas. Gone are the days when you could go to the same lawyer on Main Street to have a Will drafted, for a real estate contract, for a matrimonial issue and for an estate administration.
If you consult with an attorney for estate and Medicaid planning whose practice is not limited to these areas, my advice to you is to leave the office immediately. You must be a smart consumer of legal services. The areas of estate planning and elder law have become highly specialized and the laws are constantly changing. Lawyers must continually educate themselves and stay abreast of all of the changes. Gone are the days when lawyers could dabble in these areas. However, with the downturn in the economy and the wave of legal layoffs, some attorneys have switched their areas of practice and some have the misconception that any lawyer can draft a Will. While that may be partially true, does that lawyer know all of the available options and ramifications of improper planning?
The same should be true for legal matters. The law has become much more complicated, requiring attorneys to limit their practices to one or more areas. Gone are the days when you could go to the same lawyer on Main Street to have a Will drafted, for a real estate contract, for a matrimonial issue and for an estate administration.
If you consult with an attorney for estate and Medicaid planning whose practice is not limited to these areas, my advice to you is to leave the office immediately. You must be a smart consumer of legal services. The areas of estate planning and elder law have become highly specialized and the laws are constantly changing. Lawyers must continually educate themselves and stay abreast of all of the changes. Gone are the days when lawyers could dabble in these areas. However, with the downturn in the economy and the wave of legal layoffs, some attorneys have switched their areas of practice and some have the misconception that any lawyer can draft a Will. While that may be partially true, does that lawyer know all of the available options and ramifications of improper planning?
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