Elder Law & Special Needs
Comfort – Security – Dignity - Peace of Mind
These are the goals that we seek to achieve for clients and their families.
"Elder Law" is an interdisciplinary approach to providing legal counsel for elderly clients and their families. It goes beyond basic estate planning and addresses the two fundamental threats facing the elderly: potential physical or mental incapacity, and the devastating costs of nursing home and other long term care services.
"Special Needs Planning" is similar to Elder Law from a planning standpoint, but is generally focused on the opposite end of the age spectrum, namely children with developmental disabilities such as autism or down syndrome. At Donlon & Associates the focus of our practice in this area is the implementation of so called Special Needs Trusts (also called Supplemental Needs Trusts) designed to ensure financial security for these children. In addition, we work closely parents and grandparents to ensure their personal estate plans are properly designed to provide maximum protection and benefit for the special needs child while also addressing any other concerns and family issues they may have.
Special Needs Trusts
For individuals of any age with disabilities, a Special Needs Trust (a/k/a Supplemental Needs Trust or "SNT"), should be considered. These trusts can pay for luxuries and necessities for disabled individuals without jeopardizing their eligibility for Medicaid and Supplemental Security Income (SSI). SNTs can hold all types of assets, including cash, stocks or bonds, real estate, or life insurance proceeds.
There are two types of Special Needs Trusts:
First Party Special Needs Trust: A parent, grandparent, court, or guardian may create a SNT for a disabled person under the age of 65 with the disabled person's funds or property, without jeopardizing that person's eligibility for Medicaid or SSI. Any amount of the trust's income or principal may be spent on behalf of the disabled person during his lifetime. However, upon his death, Medicaid will have the right to recover from the remaining funds in the trust to the extent of the benefits that it paid on behalf of the disabled beneficiary. This type of SNT is often called a "Payback Special Needs Trust."
Third Party Special Needs Trust: A parent, family member or friend also has the right to create a Special Needs Trust for a disabled person of any age using their own funds. These funds could include an outright gift of cash or securities, the inheritance the creator would have otherwise left the disabled beneficiary, or even the proceeds of a life insurance policy purchased specifically to provide funds for the trust. Again the disabled beneficiary's right to receive public benefits will not be affected. Upon the disabled beneficiary's death, the trust assets will be distributed according to the instructions given in the trust agreement by the individual who funded the trust, and the State will not have the right to recover anything from the trust. This type of SNT may be created during the lifetime of the creator, or in his/her Will.
Trusts are complex legal documents that should be established and maintained only with the advice and counsel of a qualified trusts & estates attorney. We invite you to contact us today to schedule a complimentary consultation to discuss your personal situation.
Incapacity Planning
Incapacity planning is a broad area of law that covers how you wish to be cared for if you become physically or mentally unable to care for yourself. This could range from simple tasks like buying groceries and paying bills, to more important issues such as selling real estate or making critical medical decisions. Depending on the needs of the individual or family, incapacity planning often includes legal tools such as Powers of Attorney, Health Care Directives, Living Trusts, or Guardianships.
Proper planning spares loved ones the difficulty of trying to determine how things should be handled and the frustration and uncertainty of having to guess what your true wishes would have been if you were not incapacitated. It can also prevent the need for a Court to get involved in your personal affairs, which could save your family thousands of dollars in legal fees, many hours of effort, and untold emotional energy.
Long-term Care Planning & Medicaid Planning
With average nursing home costs hovering around $125,000 per year in New York City and Long Island, most folks will see their homes and hard earned savings wiped out in short order without proper legal planning. Some people mistakenly think that their health insurance or Medicare will cover them. This is a devastating misconception. In general there are only three ways to pay for nursing home (or other long term care) costs: out of your pocket, from a special Long Term Care Insurance Policy, or from Medicaid (not Medicare). Unfortunately, in most cases, Medicaid covers long term care costs only for people who have first exhausted all of their assets.
It doesn't have to be that way, though. A qualified attorney can help you arrange your assets so that you qualify for Medicaid coverage without losing everything. This type of expert planning can save you tens or hundreds of thousands of dollars. It often means the difference between maintaining financial security and leaving a legacy to your family, or being left penniless and forced to sell your home.
Most importantly, proper planning can ensure that you receive the best care available while maintaining your dignity and keeping as much independence as possible.
It is never too late to plan. Even if you or a loved one is in (or will soon enter) a nursing home, there are legal planning strategies that can be implemented. Of course, the most effective planning should take place years before a crisis occurs. Either way, you are invited to contact us today to arrange for a complimentary initial consultation to review your situation and learn how smart planning can help you and your family.