Maintaining the wealth and equity that you have spent a lifetime working hard to accumulate requires well-informed and legally enforceable estate planning measures. Through our many years of experience, Davidow, Davidow, Siegel & Stern has advocated for all the estate planning needs of our clients through our elder law and estate planning practices. We are local leaders in the areas of asset protection, trusts, and estate planning, and we are here to provide for the needs of Long Islanders.
The elder law attorneys from Davidow, Davidow, Siegel & Stern LLP are available to discuss how to protect your wealth and assets. Read on for more information.
Asset Protection Planning for Seniors is Effective and Valuable
The focus of asset protection for older persons is to secure and protect their assets from the high costs associated with long-term care, including nursing home care, in-home care, and assisted living expenses. Achieving this objective is possible through a variety of strategies, including the moving of cash, real estate, and other assets into an irrevocable trust.
Asset protection planning is effective only if it is done proactively before you incur debts to a creditor, such as a healthcare provider or healthcare facility. Oftentimes, the assets transferred into the trust must be transferred into an irrevocable trust at least 5 years before the debt being incurred. This means that late planning can expose you to substantial losses and asset insecurity, but of course, we can always save something!
Charitable Giving Allows for Non-Taxable Gifts of Your Assets
For some individuals, the prospect of donating part of their assets tax-free to their favorite charity is a great way to support their favored causes. Additionally, charitable giving can be used as a strategy to reduce the number of assets available in your estate. Reducing the amount of your estate can have substantial tax-related benefits. In New York, when your estate reaches a certain value you could face taxes of 3-16%.
Estate taxes can be substantial and result in a proportion of your estate being taken by the government, denying you the ability to designate an heir or a charity to receive it. Each year you are allowed to gift a certain amount, adjustable for inflation each year. Gifts can be used to reduce the overall value of your estate, although gifts to family members and gifts to charities are treated differently by the government and estate-related regulations.
The tax code is complicated, and taking advantage of specific opportunities requires that you carefully align with the relevant tax rules and regulations. Working with an elder law attorney from Davidow, Davidow, Siegel & Stern ensures that all tax implications are taken into account and your intended gift results in what you intend for your estate.
Asset Protection Strategies Support Your Goals
There are a variety of estate planning tools that can be taken advantage of, but knowing which ones apply to your unique situation and needs can be difficult. Working with an experienced and knowledgeable estate planning lawyer makes all the difference!
Some of the most common asset protection strategies we employ include:
- Asset protection trusts ensure that you can qualify for Medicaid benefits when you apply without first having to spend down your family’s assets
- Special needs trusts – provide a pathway to designate assets for the support of a family member with special needs without reducing or eliminating their eligibility for government benefits
- Irrevocable trusts – as discussed above, an irrevocable trust allows you to designate particular assets for particular uses, removing those assets from your estate and the prospect of the estate tax
With our client-centered approach, we take the time to identify your needs and goals, then we suggest the best and most appropriate estate planning strategies to support them.
Connect with an Estate Planning Lawyer to Safeguard Your Wealth
To secure your long-term care plan and mitigate issues for your family, reach out to a Long Island estate planning lawyer from Davidow, Davidow, Siegel & Stern. We can be reached by calling (631) 234-3030 or by visiting our site to schedule a consultation.