Dear Clients and Friends, NEWS ALERT! THANK YOU, COVID! GOOD COVID NEWS (SORTA): POSTPONEMENT OF THE COMMUNITY MEDICAID LOOK-BACK I have some new legal news that I wanted to get to you right away. Through my contacts at the New York State Bar Association, I have learned that the implementation of the …
Listen to Lawrence…Durable Power of Attorney Blog Interview
From time to time, I get a request for an interview and most articles usually focus on Elder Law or Estate Planning in general, but this time, I was asked a specific question that I answered in understandable terms and I’d like to share it with all of you. The …
Listen to Lawrence…Does a will have to be probated to gain ownership of a car?
QUESTION: My wife recently died. Practically all of our assets were joint or I was named the designated beneficiary, so I figured that we avoided probate. However, her car was in her name alone. Do I have to probate her will over her car? MY RESPONSE: The answer may depend on whether the …
Listen to Lawrence…Can I revoke my irrevocable trust?
I am writing this entry to LISTEN TO LAWRENCE on Monday, February 15th, 2021. Today is Presidents’ Day. Since I am in a holiday mood, I am writing this while sipping a glass of Long Island red wine from the McCalls Winery in Cutchogue on the North Fork, specifically their top-notch Bordeaux blend, Ben’s …
Listen to Lawrence…Clarifying “Pay Status” for a ROTH IRA
LISTEN TO LAWRENCE My last article about Roth IRAs prompted another follow-up question that I will present and answer here. QUESTION: I do not understand what you mean by “pay status” for a ROTH IRA. As an accountant, we know that you don’t have to take an RMD from a Roth …
Listen to Lawrence…Does Medicaid consider term life insurance an asset?
My posts last week about life insurance and Roth IRAs prompted some follow-up questions that I will present and answer today and on Thursday. I think this conversation that we are all having is terrific. Keep the questions coming. QUESTION: What about term life insurance that has no cash value? Would it …
Listen to Lawrence…Paying premiums for life insurance within a trust
In my last LISTEN TO LAWRENCE email, we established that it is common for people to transfer their life insurance policies into irrevocable trusts. Among other reasons, this is done for estate tax and Medicaid protection reasons. We also discussed that once the trust owns the policy, the trustee should pay the premiums, if …
Listen to Lawrence…Should you transfer your life insurance into your irrevocable trust?
I hope you all faired well with our big snowstorm yesterday. I have at least 18 inches of snow on my driveway and I can’t wait to get out there and attack it with my monster snowblower. UGH! To postpone that inevitability, I decided to write this LISTEN TO LAWRENCE entry. By the way, …
Listen to Lawrence…Medicaid and IRAs
LISTEN TO LAWRENCE QUESTION: I have a question. I know that if you go to a nursing home on Medicaid that they cannot demand that you take more than your RMD from your IRA or pensions. I assume that would also be true if you went in on self-pay and then ran …
Listen to Lawrence…2021 Estate Tax Exemption Amounts
QUESTION: What are the 2021 estate tax exemption amounts? MY RESPONSE: The estate tax exemption is the amount of money and other assets you can die owning and pay no estate tax. This number has been rising each year based upon a complicated inflationary formula. The bottom line is that we wait …
Listen to Lawrence…Can a trustee take money out of the trust at any time?
In a previous LISTEN TO LAWRENCE email, I spoke to you about how irrevocable Medicaid trust assets cannot be returned to the grantor or spent on his or her behalf. Remember, “if the grantor can get it, Medicaid can get it.” On the other hand, I also said that the Trustee could pay out …
Listen to Lawrence…Can you take money out of an irrevocable trust to pay for the care of the grantor?
QUESTION: I have a question regarding my mom’s irrevocable trust created on 3/5/16 at your firm. Mom is in an assisted living facility and I take care of her expenses. So far I have not touched any of the monies in the Trust but probably by the end of next …
Listen to Lawrence…Can you refinance your mortgage if your home is in an irrevocable trust?
Question: Is it true that once you place your home into an irrevocable trust you cannot refinance the mortgage? My Response: The short answer is that it is NOT TRUE! A trustee can absolutely get a mortgage (or re-mortgage) on a house held in an irrevocable trust. But I didn’t say it …
Listen to Lawrence…Should a trust and its trustees be insured on the homeowner’s insurance policy?
QUESTION: I have a family irrevocable trust created by your firm 3 years ago. My primary residence is included in the trust. My question is, should the trust and the trustees be insured on the homeowner’s insurance policy? Thank you for your emails they have been very informative. MY RESPONSE: …
Listen to Lawrence…Medicaid Adjustments for 2021
There are other annual adjustments to Medicaid that you should know about. How much money (or other assets) can you keep in your name and still be eligible for Medicaid? The answer is now $15,900. How much money can be kept by the spouse of a person in a nursing …
Listen to Lawrence…New Medicaid Regional Rates
NEW REGIONAL RATES As we welcome in 2021, I want to thank all of you for helping me get through 2020 and all its pandemic fears and isolation. Beyond my personal family and friends, staying connected with you, our literally thousands upon thousands of clients and friends of Davidow, Davidow, …
Listen to Lawrence…New York will soon have a new Power of Attorney
GOOD NEWS! In six months’ time, New York will have a new power of attorney form. The old form was a pain in the >>>>>>, well you get the idea. Why they are waiting six months to make the change seems ridiculous but ….whatever. Please note that all of the powers of attorney …
Listen to Lawrence…Are Roth IRAs treated the same by Medicaid as traditional IRAs?
CLIENT’S QUESTION: Since you are talking about Roth IRAs, are they treated the same by Medicaid as traditional IRA’s? In other words, if I go on Medicaid because I end up in a nursing home they will only be able to take my RMD distributions from the traditional IRAs. But what about …
Listen to Lawrence…If we add money to an Irrevocable Trust will it affect the Medicaid look-back?
LISTEN TO LAWRENCE Dear clients and friends, Here is another one of your questions: CLIENT QUESTION My husband and I have a question for Lawrence. We established an irrevocable Medicaid trust with you over 5 years ago. We put our real estate only in the trust. At this time we …
Listen to Lawrence…Bob Dylan’s creative estate planning
LISTEN TO LAWRENCE I came across this fascinating article and wanted to share it with all of you. Bob Dylan’s creative estate plan really pays off in this particular situation. Take a peek at the details below. IRA guru Ed Slott just wrote a funny and insightful article on the …