The New York law governing power of attorney permits you, the person signing and establishing a power of attorney, to appoint in that document a person to watch or “monitor” the actions of the agent appointed by you under the power of attorney. The Monitor is given by law the right to ask for a…
When someone dies their assets are valued for estate tax purposes as of the date of their death. However, there is a special election which permits the executor or other fiduciary for the estate to value estate assets as of a date 6 months following death. This is called the “alternate valuation date” or sometimes…
“Title” refers to the ownership of an asset, for example real estate. If real property is owned by two people as “joint tenants” then title or ownership is held by both of them. Title for real estate is specified in the legal document called a “deed” which is “recorded” or officially filed in a public…
Supplemental Security Income (SSI) – Means tested cash benefit for the aged, blind and disabled from Social Security. Your monthly income must be below the federal benefit rate ($674 in 2009) plus state supplement, if any ($31.25). You must have countable resources of less than $2,000 not counting the home or prepaid funeral benefits.
Supplemental needs are those not covered by Medicaid or SSI. Medicaid pays medical bills. SSI pays for food and shelter. A SNT can pay for needs that are not medical, rent or food. It can pay for special wheelchairs, hair needs, personal grooming, vacations, etc. The language of the trust should provide that assets may…
Special Needs Trusts – SNTs are unique trusts (legal agreements). Typically the person setting up a trust is the grantor or settler; however, a SNT must be established by a court, legal guardian, parent, or grandparent. If the person does not have a parent or grandparent or guardian they must have the trust established by…
Payback Trusts – This is often used to refer to first party SNTs (also called (d)(4)(A) trusts) so that on the death of the beneficiary the remaining trust assets must first be used to repay Medicaid. The balance of the assets can then be distributed to the remainder beneficiaries.
Medicare – For those over age 65 and those under 65 who are disabled who contributed to Social Security system. If you never contributed to Social Security but were disabled prior to age 22 you can collect under a parent’s Social Security. If you collect Social Security disability for two years you qualify for Medicare….
Medicaid – A means tested government medical program. The limit on countable resources varies from as low as $2,000, depending on the specific Medicaid program. Medicaid pays for long-term, custodial type care and includes physician, hospital and prescription coverage. Those with disabilities typically have very high medical bills and Medicaid is a very important resource….
Means tested benefits– Government benefits that have a financial requirement. You must prove you qualify to the government agency providing benefits. It is vital in SNT planning that the beneficiary not be disqualified. If a trust beneficiary can compel a distribution from the trust, the trust assets will be countable. For example, if you have…