New York Medicaid beneficiaries might be aware of the 21st Century Cures Act (CCA), which came into effect on Jan. 1. The law changes the wording of the Omnibus Budget Reconciliation Act of 1993, which was written to exclude people with disabilities from creating their own special needs trusts without court approval because they were assumed not to be legally competent.
When New York residents have worked hard all of their lives to provide for their families, they want to ensure that they protect the assets that they have obtained. However, many residents who start the estate planning process still want to maintain some form of control over those assets while they are alive. One way to do this is through an irrevocable trust.
Trusts can be an important part of estate planning that help benefactors take care of their heirs. However, the good intentions of a grantor sometimes turn disastrous when the wrong person serves as a trustee.
Coming to terms with the fact that your parents are aging is hard. You might be uncomfortable thinking about it, and your parents might be uncomfortable talking about it. While there may be valid concerns, there are still benefits to discussing important end-of-life matters. By helping an aging parent plan now, you can save time, stress and money.
A New York resident who is appointed trustee of an irrevocable life insurance trust has a number of duties and responsibilities. Above all, a trustee has a fiduciary duty, and this means there is a legal obligation to administer the trust competently for the benefit of the beneficiaries. The trustee must also manage trust investments. This may involve assistance from life insurance producers or from companies that review policies' performances. Other duties including safeguarding original policies, confirming that the ILIT is the policy owner and beneficiary, and making sure communications with insurance companies go to the trustee.
As you help your parents with their estate plans, you are probably using the internet as your primary source of information. You will also find plenty of free or low-cost legal forms you can fill out, such as wills and advance health directives.
While most people wait until they are older or retired to create a will, they should really do it a lot sooner. In an article published by the American Association of Retired Persons, nearly six out of 10 U.S. adults lack a will.
New York residents who would like to give to charity and provide for their loved ones in their estate plan can do both with a charitable trust. There are two types of charitable trusts. With a charitable remainder trust, a person places assets in the trust and then chooses a time period for the trust to pay distributions. This might be for up to 20 years. It can also be for the lifetime of the beneficiary. After the term ends, the remainder of assets in the trust go to the charity. A charitable lead trust works in reverse in that it funds a charity for a certain period of time after which the remaining assets go to another beneficiary.