5/5/2020 Estate Planning and Asset Protection Seminar presented by - PDF document

5/5/2020 Estate Planning and Asset Protection Seminar presented by Michael Wagner Throughout the Hudson Valley, J&G provides counsel to individuals, families, and businesses for a wide range of legal issues. For over 50 years, the law firm of Jacobowitz and Gubits, LLP, has combined sophisticated legal remedies with the highest quality client service in New York. Jacobowitz and Gubits has a strong commitment to its clients and brings substantial experience, legal knowledge and effective resources to both simple and complex legal matters. We have helped clients achieve short-term and long-term goals while keeping a realistic assessment of what to expect in the future. Our clients appreciate the accessibility of our firm and the effectiveness with which we handle their matters. 1

5/5/2020 Michael Wagner focuses on estate planning at J&G. He has drafted hundreds of wills and trusts for clients with varying objectives and net worth’s. Michael strives for a transparent approach that values each client and keeps them well-informed about every step of the planning process. He enjoys getting to know clients and their families and helping them design the most effective estate plans. Part I: Estate Administration Part II: Keeping Assets in the Family Part III: Medicaid Asset Protection 2

5/5/2020 What is a Will?   Wills name an executor to act and distribute the estate at death  Executors have to be formally appointed by the Surrogate’s Court in order to act – a process called probate  Wills become public record after death What is a Trust?   Trusts are estate plans created and funded during your lifetime  Trusts name backup trustees to act in the event of death or disability, and the transition is seamless  Trusts are settled privately, outside of the court 3

5/5/2020 Estate Administration   Probate  The Estate is settled in Surrogate’s Court  The Executor or Administrator must be appointed by a Judge  The time from date of death to completion of the court proceeding can be weeks or months, and the legal fees may add up  All next-of-kin members must sign off on the probate, regardless of whether they are mentioned in the Will  When someone owns property outside New York, Estate must go through probate multiple times 4

5/5/2020 Trusts   Trusts are settled outside court, with efficiency and privacy  Settlement of trusts avoids the legal fees encountered at probate  Trusts do not require involvement from next-of-kin 5

5/5/2020 Wills & Bloodline   Wills can use language (“per stir- pes”) to plan for what happens if your beneficiaries predecease you, but they cannot stipulate what happens in the more likely event that the beneficiary is alive to inherit the money  When money is inherited from a Will, it can later end up with a son or daughter-in-law, or other unintended parties Bloodline Planning with Trusts   Many people choose to leave their assets in trust for their children  Protect assets from in-laws, and make sure they stay in the bloodline for grandchildren  If a beneficiary dies without children, then the trust assets pass to the siblings  Protect inheritance from beneficiaries’ creditors, lawsuits, and divorces 6

5/5/2020 Protect Assets FROM the Beneficiaries   Place age restrictions on bequests, or hold them in trust for educational purposes  Add co-trustee and other regulatory devices to prevent spendthrift heirs from blowing through their inheritance Second Marriages   Couples in second marriage who embark on estate planning can use trusts to make sure that the survivor of them has money to live on, but not the ability to alter the plan and freeze out family members on one side  Children or attorneys can act as co-trustees upon first death  Prenuptial Agreements can provide further security 7

5/5/2020 Disability & Long-Term Care   The average cost of long-term care in the Hudson Valley is $409/day or $149,136/year per the New York State Department of Health  People can lose their homes and life savings in a few short years  The three ways to attack the problem are paying out of pocket, long-term care insurance, or protecting assets to qualify 8

5/5/2020 Medicaid Asset Protection Trust (MAPT)   Irrevocable trusts can shield assets from long-term care and nursing home costs  Trusts can hold real property or investments  Income-only Trusts: Income, interest and dividends flow out, but principal stays in the trust  IRA’s, 401(k)’s, and all other qualified retirement accounts are exempt from Medicaid by New York State Law Advantages & Flexibility of (MAPT)   The trust preserves property tax exemptions like STAR, and allows for the house to be sold at any time  Beneficiaries can be changed and trustees can be removed and replaced  Under New York State law, an Irrevocable Trust CAN be revoked if all parties consent 9

5/5/2020 Medicaid Eligibility   Under New York State law, an Irrevocable Trust CAN be revoked if all parties consent  There is a five-year look-back period on asset transfers such as those to Medicaid Asset Protection Trusts  Community Medicaid (care in the home) does not have this look-back period  It is often worth trying to start the trust even for those who are elderly or not in perfect health  There are numerous strategies to save a portion of the money, even on the nursing home doorstep The J&G Method   FREE Consultations  Feel free to bring in your current estate plan if you have one  We’ll make recommendations to you, and you can decide, without obligation, if you are ready to move forward  Execution of the Estate Plan  Our pro’s make the “legalese” crystal clear as we explain and go over the documents prior to signing  We can adjust the documents so that you are 100% comfortable  Reviews of the Plan  Our fees are flat, and our services are inclusive of all related telephone calls, emails, on an ongoing basis  We’ll contact you to offer a complimentary review of your plan every four years 10

5/5/2020 Please Allow Us To Reach Out to You   Please complete the contact form at www.jacobowitz.com/webinar  Please provide us your name, email address, and other contact information  All consultations are FREE and confidential Disclaimer: This publication contains the opinions and ideas of its creator. It is intended to be informative. The distribution of this publication does not create an attorney-client relationship. Estate Planning should always be done with an attorney. The contents herein is not intended to be legal advice. You should contact an attorney for advice regarding your specific situation. Attorney Advertising. 11