Common Misconceptions Part 3
The Koldin Law Center, P.C. is excited to announce that our website has been completely revised. Please check www.koldin.com to see what we have done!
This edition of the Koldin Report E-Newsletter is Part 1 of a series about common misconceptions about Elder Law, Estate Planning and Medicaid.
The attorneys at the Koldin Law Center meet with clients every day. We have seen a pattern of misconceptions and misunderstandings that can have catastrophic effects on families. The following is a list of some of the most common misunderstandings that clients present to our office.
This is one of the most common and unfortunate misconceptions that we hear. Surprisingly, many of our clients receive this advice from their financial planners or family attorneys. Our office often creates a trust for only the family residence. If a single person went to a nursing home, the current law requires that he/she spend down the assets, including the family home, to $14,400. If the house is placed in a specially designed family trust, the house would not be deemed to be an available resource and would be protected.
The purpose of the trust is to protect your assets for your benefit while still giving you as much control as possible. Without proper planning you could lose your home and life savings. At the initial consultation we review the trust and your options.
Many attorneys are not familiar with the specially designed family trust and encourage their clients to transfer the family home and other assets directly to the children. There are many pitfalls to transferring the home or other assets to the children that could put your life savings in jeopardy such as:
(1) Bankruptcy of a child
(2) Lawsuits involving a child
(3) Divorce of a child
(4) Death of a child before a parent
Furthermore, transferring your assets to your child could have negative tax consequences for your child and the potential loss of college financial aid for your grandchildren.
We have many clients coming to us with trusts prepared by other attorneys. Many of these clients are under the impression that their assets are protected when they have done a revocable trust in the past. A revocable trust can be an excellent planning tool for the right client, but it is important for the client to understand that a revocable trust does not protect assets in the event Medicaid is needed. Assets in a revocable trust are all deemed available to the creator of the trust.
At the Koldin Law Center, P.C., located in East Syracuse, New York, we have over 50 years of experience helping individuals plan for immediate crisis and long term care. Our attorneys are available to discuss your estate planning options, including the advantages and disadvantages of Revocable Trusts and Irrevocable Trusts, along with other estate planning considerations including a Will, Power of Attorney, and Health Care Proxy. We do not charge a fee for the initial consultation. We welcome your children, family attorney, accountant, and/or financial planner to be present at the initial consultation.
There is something you can do.
Our Attorneys are available to speak to your organization
Our Attorneys speak to groups throughout New York State as a public service. If you would like to arrange for one of our Attorneys to speak to your group, please contact our office.
We appreciate your referrals
We have been told by many clients who are in a crisis that they wish they had known about our firm much sooner. We are proud of the many families we have helped in times of crisis.
We are also proud of the many families we helped avoid financial crisis by doing estate planning in advance.
We all share the responsibility for making our family and friends aware of the planning options available to them.
Your referral to the Koldin Law Center could make a major difference in the lives of your family and friends if they are someday faced with a long term illness.
Remember that the Koldin Law Center offers many services for clients of all ages. Our services range from basic estate planning such as a simple will to complex estate planning including asset preservation planning.
THERE IS NO FEE FOR THE INITIAL CONSULTATION
