Gift giving is generally looked upon as a positive thing. It would be logical assume that you can give gifts to people without being taxed for your troubles. However, the tax man takes a different approach. There is a federal gift tax, and it exists to stop people from giving gifts so that they can avoid the estate tax. There is a federal gift and estate tax exclusion. It is alternately called a credit, and it is the amount that you transfer to anyone who is not your spouse before the estate …
How Do Elder Law Attorneys Charge?
Before we look at the matter of legal fees, we should explain what elder law attorneys do, and why you may want to discuss the future with one of these attorneys. Elder law attorneys focus on legal matters that are particularly relevant to senior citizens. There are certain eventualities that you may face when you attain senior citizen status, and elder law attorneys help people prepare for them in advance. Living Assistance It can be hard to wrap your head around the possibility of …
Why Should I Consult With an Elder Law Attorney?
An elder law attorney is a lawyer who is well-versed in legal matters that are of interest to people who are preparing for their senior years. You should fully understand the eventualities that you may face when you reach an advanced age, and you should plan ahead to address them. If you go forward without a plan, you could find yourself in a difficult situation late in your life. The first step will be to make sure that you have the resources that you need to enjoy a comfortable …
Does Medicaid Pay for In-Home Care?
Elder law attorneys assist clients who are concerned about long-term care costs. This is a serious matter, because most senior citizens will eventually need assistance with their day-to-day needs. Long-term care can be provided in nursing homes and assisted living communities, and there are also those who use in-home care providers. Medicare Won't Help Living assistance is very expensive across the United States, and the prices in New York are higher than the national averages as you might …
Why Would I Need a Pour-Over Will?
A pour-over will would be necessary if you use a revocable living trust to facilitate future asset transfers. Before we look at pour-over wills, we should explain the value of revocable living trusts. Efficient Asset Transfers If you use a standard last will to arrange for the future distribution of your resources to your heirs, you name an executor when you create the document. The executor is the estate administrator. This individual is empowered to handle the business of the estate after …
What Is a Medicaid Maintenance Allowance?
To be fully prepared for the future, you should understand some things about the Medicaid program. Though the program is technically intended for people who have little to no financial resources, Medicaid coverage is very important for a significant percentage of seniors who were never poor. Medicaid is relevant because Medicare does not pay for custodial care. This is the type of care that you would receive in a nursing home or assisted living community. The lack of coverage is a very big …
What Is a Letter of Final Instruction?
You state your final wishes when you create an estate plan, and this is done through the execution of legally binding devices. At the same time, there is some practical, hand to mouth information that you need to pass along to your estate administrator. You share this information when you create a letter of final instruction. If you use a last will to facilitate future asset transfers, the estate administrator is going to be the executor. The executor must have access to all important …
Why Do I Need a Power of Attorney?
In the legal field, powers of attorney are used for various different purposes. When you are perfectly capable of handling your own affairs, you may want to use a power of attorney to allow someone to act on your behalf in a legally binding manner for one reason or another. There are general powers of attorney, and limited powers of attorney. With a general power of attorney, you give someone the power to act on your behalf in a sweeping manner. The agent or attorney-in-fact that you …
What Is the Difference Between SSI and SSDI?
Social Security is a government program that for the most part provides senior citizens with income. You earn Social Security eligibility when you are paying those pesky FICA taxes throughout your life. Taxpayers can earn up to four retirement credits per year, and you will be eligible for Social Security as a senior if you earn at least 40 credits. People who have earned sufficient retirement credits can potentially qualify for Social Security Disability Insurance (SSDI) benefits. If you can …
When Would a Guardianship Become Necessary?
When you consider the subject of estate planning, you may assume that it is only important for people who are approaching their senior years. In fact, it could be argued that estate planning is even more important for younger adults. With this in mind, we will look at the matter of child guardianship, and we will also look at adult guardianship. Protecting Your Children The children of older people are typically going to be grown-up and self-supporting. When you are a senior citizen you …
Is Medicaid Strictly for the Poor?
Medicaid is a health insurance program that is jointly administered by the federal government along with each respective state government. It is a program that is only available to people who can demonstrate significant financial need. When you think about Medicaid, you may immediately feel as though it is irrelevant to you. After all, you will qualify for Medicare when you reach the age of 65. These are both health insurance programs, so you wouldn't need Medicaid. On top of that, you have …
Is There a New York State Estate Tax?
Tax efficiency is an important factor for many people who are looking ahead toward the future. There is a federal estate tax that you may have to contend with depending on the size and scope of your estate. For the rest of 2014, the federal estate tax credit or exclusion is $5.34 million. You can transfer this amount tax-free, but anything that you transfer that is in excess of this figure could be exposed to the federal estate tax. The top rate of the tax is 40 percent. If you see a …
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