There is a “special needs” child or adult in your life. What should you do? Here are some thoughts to consider. • Change – Nothing will remain as it is right now. The Special Needs Person (“SNP”) grows up and grows older. Their needs today are not likely to be their needs in the future. You need to design flexibility into your estate plan, usually best achieved by creating a trust granting broad authority to address the ever changing environment and appointing a trustee(s) whose discretion you … [Read more...] about Planning Considerations for People with Special Needs
Qualified Personal Residence Trusts (QPRTs)
For people who have an estate tax problem and a large portion of their estate is their personal residence, a Qualified Personal Residence Trust (“QPRT”) should be considered. The concept of the QPRT was created by the IRS as part of the valuation regulations issued twenty years ago and in the hands of an accomplished estate planning attorney is a highly effective means by which the value of the taxpayer’s residence can be artificially reduced. This is achieved by the use of a combination of … [Read more...] about Qualified Personal Residence Trusts (QPRTs)
Sundown Syndrome: How to Help (An Elder Law Today Blog)
by Lois G. Tager, M. Ed., CSA Director of Geriatric Care Management, Litherland, Kennedy & Associates, APC, Attorneys at Law Sundown Syndrome, sometimes referred to as sundowning or sunsetting, describes the onset of behaviors such as agitation, confusion and irritability. These behaviors are often found in people who have cognitive losses or Alzheimer’s disease; although some research suggests that they can also be found in seniors simply because of age-related changes. Symptoms are … [Read more...] about Sundown Syndrome: How to Help (An Elder Law Today Blog)
Life Care Planning – What is It and Who Needs it?
Life Care Planning is a Family Affair. Whether your loved one is a parent, spouse or special needs loved one . . . whether you live with your loved one, in the next town or across the country . . . dealing with an elderly or disabled loved one can cause countless sleepless nights. The experienced, supportive and knowledgeable attorney, geriatric care manager and support staff at the Litherland, Kennedy & Associates, APC, Attorneys at Law realize that most people are caught up in today’s hectic … [Read more...] about Life Care Planning – What is It and Who Needs it?
Veteran’s Health and Benefits Administration
Veteran’s Health Administration — The Veteran’s Health Administration provides benefits for a variety of health and long-term care needs. These services are available to anyone with prior service (excluding anyone with a dishonorable discharge). In order to receive these benefits, a veteran is required to get a physical and it generally takes one year to enter the VA health care system. Priority is given to Veterans with a service-related disability, former POWs, and retired military personnel. … [Read more...] about Veteran’s Health and Benefits Administration
Difficult Medi-Cal Planning Situation Involving Inheritance Resolved
A family came to me with a difficult Medi-Cal planning situation. Their mother had recently been advised that the mother’s aunt had died and she was about to inherit around $600,000. Normally that would not be a bad thing, however, in this case, it would be a good thing with potentially negative economic consequences. It seems the mother was gravely ill, even though reasonably young. But due to her medical condition, she was confined to the sub-acute care unit of a skilled nursing home and the … [Read more...] about Difficult Medi-Cal Planning Situation Involving Inheritance Resolved
What is the Medi-Cal “look-back rule”?
Since an individual applying for Medi-Cal can’t qualify for Medi-Cal to pay for skilled nursing home care if they own non-exempt assets exceeding $2,000, many persons are tempted to simply “gift away” the excess. The “look back rule” provides that if a person makes gifts of assets within a certain period of time prior to applying for Medi-Cal and hopes thereby to qualify for Medi-Cal, they are denied Medi-Cal for some period of time based upon a mathematical formula. The period of the look back … [Read more...] about What is the Medi-Cal “look-back rule”?
Administration of a Living Trust
What needs to be done to administer a Living Trust when the trust creator (“Trustor”) passes away? Well, it could be virtually nothing at all, or it could be very involved. If the Trust only holds cash assets and stocks, it might be limited to distributing the cash and stock among the Trust beneficiaries. If it holds real property which is intended to be sold immediately, the title company will take care of much of the paperwork required at close of escrow, perhaps leaving only the distribution … [Read more...] about Administration of a Living Trust
Tax-Free Exchange of Non-Qualified Annuities and Life Insurance for Long Term Care Insurance
Non-qualified annuities and life insurance can now be tax-free exchanged for long term care insurance (“LTCI”). This is huge because benefits paid out of a LTCI policy are paid out tax free. Example, Fred has an annuity. Right now he doesn’t need the income, but he expects the after tax stream of annuity payments will not be enough to pay for the in-home support services he might need to stay in his home. He can exchange this annuity for LTCI which might pay out benefits as much as 4 to 5 … [Read more...] about Tax-Free Exchange of Non-Qualified Annuities and Life Insurance for Long Term Care Insurance
2nd Update – Valuation Discounts – Thomas H. Holman Jr. et ux. v. Commissioner; No. 08-3774 (7 Apr 2010)
In a 2-1 split decision, a recent Court of Appeal agreed with the IRS that an FLP with holdings that consisted only of Dell corporation stock had no legitimate business purpose, but was primarily an estate planning device. The dissenting opinion disagreed stating that maintaining family control is a legitimate business purpose. If the underlying asset had not been a highly liquid, publicly traded stock, I might agree with the dissenting opinion, but I have to ask myself how some members of the … [Read more...] about 2nd Update – Valuation Discounts – Thomas H. Holman Jr. et ux. v. Commissioner; No. 08-3774 (7 Apr 2010)
