New Tax Law Makes Changes to ABLE Accounts

Families taking advantage of ABLE savings accounts will have a little more flexibility in planning for special needs as a result of the new Tax Cuts and Jobs Act signed into law by President Trump on December 22, 2017.

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How Will the New Tax Law Affect You?

While most of the new tax law – the Tax Cuts and Jobs Act – has to do with reducing the corporate tax rate from 35 percent to 21 percent, some provisions relate to individual taxpayers. Before we get into the details, be aware that almost everything listed below sunsets after 2025, with the tax structure reverting to its current form in 2026 unless Congress acts between now and then. The corporate tax rate cut, however, does not sunset. Here are the highlights for our readership:

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GOP Tax Plan Could Deal Blow to Seniors Paying for Long-Term Care

The tax plan put forward by the Republican-led House of Representatives would eliminate many current deductions, and getting rid of one of them in particular could deal a serious financial blow to seniors and individuals with disabilities. The plan proposes eliminating the medical expense deduction, a change that will especially affect those needing long-term care.

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Daunting Problems That Arise When Parents Serve as a Supplemental Needs Trustee

It is common for a parent to want to be named as trustee of a supplemental needs trust benefitting her child, especially when the parent is the one creating or funding the trust. There are many reasons why this makes sense. It positions the parent to have complete control over trust distributions. It is also very unlikely that anyone else can match the loyalty and dedication that comes from the bond between a parent and child. The parent is almost always the individual most familiar with the child’s specific, unique needs that the trust must seek to fulfill in its administration. Another advantage is that the parent will usually work without compensation.

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Dispute About Mother’s Nursing Home Turns Hostile

A New Jersey appeals court rules that an ugly dispute between two brothers over their mother’s placement in a nursing home did not amount to domestic violence. R.G. v. R.G. (N.J. Super. Ct., App. Div., No. A-0945-15T3, March 14, 2017).

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Medicare Coverage for Skilled Maintenance Therapy Clarified by Federal Court

Imagine a scenario where your elderly parent urgently needs skilled nursing care to maintain his or her health condition.  In this case, the doctors believe your parent’s condition probably won’t improve, but with proper care, could maintain the current condition or, at least, slow any decline.

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Why “I Love You” Wills Really Don’t Say “I Love You”

As February brings heart-shaped chocolate boxes and roses by the dozen into your imagination, seize the moment to learn about the drawbacks of “I love you” Wills and introduce yourself to the estate planning move that’s actually going to ensure you do well by your loved ones: a lifetime beneficiary trust.

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Congress Considering Limiting Use of Spousal Annuities by Medicaid Applicants

Although the following is not a favored practice in the State of New York, this article illustrates the current climate and foreclosing planning opportunities.

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Finding the Right Elder Law Attorney: Penalty Period Appropriate for Medicaid Applicant Who Did Not Show Past Pattern of Transfers

Seniors face complex legal concerns that are different from what they faced when they were younger.  Certain actions that you take may have unintended legal effects.  As a senior or someone who’s helping make decisions for a senior, it’s important that you work with an attorney who is knowledgeable in Elder Law.  You will want to hire the attorney who regularly handles matters in the area of concern in your particular case and who will know enough about the other fields to question whether the action being taken might be affected by laws in any of the other areas of law.  To avoid Substantial Avoidable Penalties, you should contact an experienced Elder Law attorney to address those issues.

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Federal Medicaid Law Preempts Less Restrictive State Regulation Regarding Annuities

The U.S. Court of Appeals for the Sixth Circuit rules that a case by the family of a Kentucky Medicaid recipient challenging the state’s adherence to federal law regarding spousal annuities rather than to a less restrictive state regulation is dismissed because federal law preempts the state regulation. Singleton v. Commenwealth of Kentucky (6th Cir., No. 16-5596, Dec. 6, 2016).

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