The matter of the Sherman Hemsley estate has been playing itself out for months, and we have been passing along updates as they have become available.

We are happy to be able to report that we now have closure in this case. The probate court in El Paso, Texas has decided that the last will that was executed by Hemsley leaving everything to his longtime close friend and confidant Flora Enchinton is indeed valid.

The difficulties were brought about by the contentions of a Philadelphia resident named Richard Thornton. Hemsley was originally from Philadelphia though he lived in El Paso for a number of years before his passing. He was reportedly fond of saying that El Paso was his home and Enchinton was his family.

Richard Thornton claimed to be the late actor’s brother. The probate court judge in El Paso ordered DNA testing, and the results indicated that Thornton was in fact Hemsley’s half-brother.

Of course, you are perfectly within your rights to disinherit your half-brother if you choose to do so. Hemsley left behind a last will that was quite clear in its intentions.

It is sad to think of the talented actor’s body sitting in a funeral home in El Paso for months while this dispute was underway. He died back on July 24, and he was finally buried on the day before Thanksgiving.

This is a matter that is instructive on a number of different levels. For one thing, you should mention the potential for someone stepping forward to challenge your wishes with a good estate planning attorney if you have any inkling that this may take place.

For another, there are ways to arrange for asset transfers outside of probate, and this is something else to take into consideration when you are making plans for the future.

When you look into the subject you may be quite surprised to find out just how expensive it is to spend some time in a nursing home or assisted living community. Costs are rising year-by-year, so the current state of affairs is one thing but what you may be looking at in 20 or 30 years is another.

Presently a single year residing in a nursing home in the state of New York averages well in excess of $100,000.

There are those who take this with a grain of salt because they expect to be enrolled in the Medicare program when they attain senior citizen status. In truth, Medicare will not absorb these costs.

Where do you to turn if you are a senior citizen in need of long-term care who simply does not have hundreds of thousands of dollars to spare? The answer for many people is Medicaid.

If you plan ahead well in advance you may be able to qualify for Medicaid while positioning your financial resources in the optimal manner given the program’s requirements.

We have prepared an informational report for people here in the Long Island area who are interested in Medicaid planning. To obtain access to this valuable report click the link that follows and take a moment to complete the form that you see on the right of the page:

New York Medicaid Planning

Most senior citizens are going to need long-term care eventually, so you would do well to read this report. If you have questions after reading the report please feel free to give us a call at (631) 265-0599 to set up a free consultation.

In 2013 the estate tax exclusion is $5.25 million. You have to understand the fact that this figure includes the value of your home, so right off the bat you are going to be left with considerably less to work with if you are a homeowner.

Many people would be able to stay within the estate tax exclusion amount if they could somehow reduce the taxable value of their homes. There is in fact a solution for these individuals in the form of qualified personal residence trusts.

When you fund certain types of irrevocable trusts you are giving taxable gifts to the beneficiaries. This is true when you place a home into a qualified personal residence trust and name a beneficiary who would assume ownership of the property after the term expires.

You are removing the home from your estate for estate tax purposes, but you still have to contend with the gift tax which carries the same 40% rate as the estate tax in 2013.

The way that you realize tax savings is by retaining interest in the home. When you draw up the trust terms you state a term during which you will remain living in the residence. This can be five years, 10 years, or whatever length of time you choose.

If you were to sell someone a home that they couldn’t live in for five or 10 years you couldn’t get full market value. Because of this, the gift is not valuated by the IRS for tax purposes at its full market value because you are retaining interest in it.

The house ultimately does become the property of the beneficiary, but the tax burden is significantly reduced over what it would have been if this individual inherited the home directly after your passing.

The word “portable” is defined as “Able to be easily carried or moved.”

In estate planning the term has been borrowed to describe transferring the estate tax exclusion that was afforded to a deceased individual to his or her spouse.

Until 2011 the estate tax was not portable, and some critics felt as though this was not justifiable. They make a good point because in most cases both the husband and the wife contributed personally to the accumulation of their shared wealth.

Since two individuals contributed into the value of the estate, why should the surviving spouse only have one estate tax exclusion to work with?

In 2011 those who have always clamored for portability got their wish, and the estate tax exclusion has been portable ever since. This portability was continued upon the passage of the American Taxpayer Relief Act of 2012 .

There is however something very important to understand about the portability of the estate tax exclusion. It is not automatically bestowed upon you by the Internal Revenue Service.

When someone passes away the IRS must be made aware of the intention of the survivor to utilize the exclusion that was afforded to his or her deceased spouse. This is done through the filing of Internal Revenue Service Form 706.

There is a deadline for filing this form, and if you miss it you will not be able to utilize the exclusion that your deceased spouse was entitled to. You have nine months to file after the death of the individual in question, but a six-month extension is possible.

As a person who is making preparations for the future you probably have various different unique individuals on your inheritance list. Invariably they all have their own respective strengths and weaknesses.

Those who are in a position to leave behind large sums of money to family members have a lot to take into consideration. Not everyone is a good money manager, and there are those who have personal problems.

There also may be younger people on your inheritance list who simply have not yet reached their full potential as human beings.

If you give large lump sums directly to individuals who are not fully developed, have personal problems, or have money management difficulties you may be ultimately doing them a disservice.

Another option would be to create trusts that are specifically designed to serve the best interests of the people that will be receiving inheritances.

You don’t have to simply decide on an amount of money that the beneficiary will receive monthly and leave it at that. You can include stipulations that must be met before distributions are made, such as educational incentives or substance abuse testing and treatment.

You could also choose to create a spendthrift trust for the benefit of a loved one who does not handle money well. The trustee would administer the funds in accordance with your wishes, and the beneficiary would not have access to the principal. These resources would also be protected from creditors.

If you’re interested in learning more about trusts by all means, take a moment to contact our firm to arrange for a free consultation by clicking this link and filling in the form: Free Long Island Estate Planning Consultation

There is an interesting article on the Forbes website that provide some information that is very inspiring to those who are looking for reasons to start planning ahead for the future.

The article tells us that this year the average Social Security benefit for a couple in the United States is a mere $2048 per month. For single individuals the average is just $1,261. These figures are in place after a 1.7% cost-of-living adjustment that went into effect at the beginning of the year.

This is the average, but let’s look at the maximum. You do not have to pay Social Security taxes on income that exceeds a certain amount. Right now the maximum taxable amount is $113,700 per year.

Obviously this figure has gone up over the years to account for inflation. However, if you paid the maximum amount possible every year during the 35 years during which you earned the most amount of money you would be eligible for the maximum benefit.

This year the maximum benefit that a single person would receive if he or she had in fact contributed the maximum amount into the program for 35 years is all of $2533.

These figures are eye-opening to say the least. Clearly, you’re going to need financial resources that you are able to accumulate on your own in addition to your Social Security benefit to truly enjoy your retirement years with a certain degree of financial freedom.

The first step is to devise a plan. If you are ready to get started send us a message requesting a free consultation after clicking this link: Free Retirement Planning Consultation

Home equity conversion mortgages are available to individuals who are at least 62 years of age who own their own homes or have adequate equity. With these loans you receive payments from the lender who in turn is receiving equity in your home.

The loan becomes due after the borrower passes away or moves from the residence. Such a move would often times be a move into a long-term care facility.

The appeal of these loans is the fact that someone who is living on a fixed income can suddenly enjoy an infusion of cash.

There are however some pitfalls to take into consideration. One of them is the fact that you incur some significant expenses when you take out one of these reverse mortgages.

Interest is going to be applicable, and there are loan servicing fees. Appraisers and attorneys must be paid for their services, and you have to keep reverse mortgage insurance current.

So yes, you are pulling some money out of your home but you are not getting very good value considering the costs involved.

The estate planning implications are also something to think about. When you are using the equity that you have in your home while you are still alive you are steadily reducing your ability to leave something behind to your loved ones.

The wise course of action is to discuss all of your options with a good retirement planning lawyer before you take the plunge and agree to a reverse mortgage deal. Your lawyer may be able to make recommendations that enable you to go a different route that is perhaps a bit more beneficial for you and your family.

Assisted living is very costly, and many senior citizens simply cannot pay for it out-of-pocket. Medicaid can be a solution for some people, and veterans may be able to tap into a very valuable military benefit.

The Veterans Aid and Attendance special pension provides single veterans with as much as $1732 per month to help with assisted living expenses. A surviving spouse of an eligible veteran may receive up to $1113 per month, and a couple could qualify for $2054 each month.

To meet the eligibility requirements you must of course be able to provide medical proof that you are in need of help with your day-to-day needs. You also have to meet the length of service requirements.

Those who have served for at least 90 days with a minimum of one day being served during a time of war are eligible.

The last hoop to jump through as it were involves your financial capabilities. This program is not intended for people who have absolutely no financial need.

You must demonstrate some financial need to be able to qualify for this special pension. However, if you are a homeowner the value of your place of residence does not count when your financial means are being tallied.

The best way to go about applying for benefits to pay for long-term care is to do so with the assistance of an elder law attorney. It can be challenging to qualify for these programs while still retaining as much is possible in terms of personal property. Your lawyer will have the experience and expertise that it takes to provide the appropriate guidance.

Being comprehensively prepared for the future involves planning ahead for the possibility of incapacitation. We all know there are numerous different causes of incapacity, but the most significant one for senior citizens is Alzheimer’s disease.

When you understand the facts about Alzheimer’s disease it becomes impossible to keep your head in the sand assuming that you will never go through a period of incapacitation.

The New York Times has done an excellent job researching the subject and they have published an informative report on Alzheimer’s disease. This report contains a plethora of information, but one statistic that stands out is the fact that nearly 50% of the oldest old (people at least 85 years of age) are suffering from Alzheimer’s disease.

More and more people are living into their mid-80s and beyond. In fact, the group of individuals who are between 85 and 94 years old has been growing faster than any other ten-year age group.

Planning for the possibility of incapacity is going to include the execution of durable powers of attorney for health care and financial matters. If you have a living trust you could include the selection of a disability trustee.

Many people who suffer from Alzheimer’s disease need long-term care. Preparing for these costs is another part of the equation.

The best way to address the eventualities of aging is to sit down and discuss everything with a good elder law attorney. Our firm offers free consultations, and we would be glad to talk things over with you. You can get in touch with us by phone at (631) 265-0599.

An alternative would be to send us a message after clicking this link: Free Elder Law Consultation

The possibility of a contested will is something to take into consideration when you are planning your estate.

These days there are a lot of websites all over the Internet claiming that it is easy to draw up your own last will using a download or a worksheet that they will sell you. You would do well to take pause before buying into these ideas because of the possibility of an improperly executed last will.

A last will that has not been properly executed under the laws of the state of New York can be deemed invalid by the probate court. If you don’t know exactly what you are doing when you are executing a last will you really can’t be certain that it is being properly prepared.

If someone was step to forward with ideas of their own after you pass away a tiny crack in the verbiage could ultimately result in a successful last will challenge.

Aside from an improperly executed last will a will can be deemed invalid if the testator was not of sound mind when creating the will. Another one of the grounds for a successful challenge would be proof that the will was executed under undue coercion.

Fraudulent last wills can be deemed invalid as well. A will would be fraudulent if the person signing it was in some way deceived about the contents.

Clearly, the only way to be certain that your last will is being prepared in accordance with New York State laws as to retain the services of a licensed and experienced estate planning attorney. There may be a small expense involved, but a contested will can wind up costing the estate much, much more if a challenge goes to court.