Shivers Law GroupSayville Attorneys | Elder Law, Estate Planning Suffolk, Nassau County2026-08-22T13:26:07Zhttps://www.valerieshiverslaw.com/feed/atom/WordPress/wp-content/uploads/sites/1604242/2023/09/cropped-SLG_FAV-32x32.pngOn Behalf of Shivers Law Group<![CDATA[New York estate tax “clawback” provision extended to 2032]]>https://www.valerieshiverslaw.com/?p=475302026-08-22T13:26:07Z2026-08-22T13:26:07Z2026 is $7.35 million.
One way that New York taxpayers have been able to avoid that cliff is by gifting some of their assets while they’re still alive. New York has no state gift tax, so they only need to consider the federal gift tax exclusion limit.
Understanding the “clawback” provision
To prevent people from giving away large amounts of their estate in the years immediately prior to their death, New York law has included what’s called a “clawback” provision. That allows the state to add the value of gifts given within three years prior to a person’s death back on to the estate’s gross value for tax purposes. That can add considerably more to the state estate tax due, especially if it causes an estate to go over that cliff.
The clawback provision was scheduled to expire in December of last year. However, it has been extended until Jan. 1, 2032. That means people are wise to avoid gifting considerable assets to reduce their gross estate value within a short period of time since no one can know for certain when they’ll pass away. Certainly, doing it when faced with a terminal diagnosis can prove pointless if the goal is to reduce the amount of New York estate tax due.
The three-year clawback period does not apply for federal estate tax purposes, however. That means gifting assets, even in the three years before someone’s death, can still reduce the value of a person’s federal gross estate.
There are, however, other ways to avoid or at least minimize New York estate taxes due, such as charitable donations, certain trusts and more. With experienced estate planning guidance, New York residents can maximize the amount of wealth they leave to loved ones and charitable organizations while reducing the amount of money that goes to the government.]]>On Behalf of Shivers Law Group<![CDATA[5 key facts about New York Medicaid asset lookback]]>https://www.valerieshiverslaw.com/?p=475292026-08-20T17:35:07Z2026-08-20T17:35:07ZNursing home care triggers a 5-year financial review
State workers look back at all bank records and property sales from the past 60 months. They inspect savings accounts, real estate transfers and investment portfolios. Giving away money or selling a house for cheap during this timeframe creates serious financial problems.
Home care lookback rules remain delayed by state authorities
State leaders passed a 30-month lookback rule for home care services. However, state health officials continue to delay this rule while waiting on administrative rules and federal approval. You can still apply for home care help under current rules without facing a multi-year audit.
Uncompensated asset gifts may cause penalty periods
Giving away assets without receiving full value in return creates a gap in coverage. Medicaid will not pay for care until this penalty time ends. State workers figure out this wait time by dividing the total gifted amount by the monthly average cost of care in your area.
Financial gifts to relatives
Property sales below fair market value
Unexplained cash withdrawals
Gifts to a spouse, a blind or disabled child, or specific trust funds qualify as legal exceptions that avoid penalty wait times. You must pay for medical costs out of pocket if a non-exempt gift creates a penalty wait time.
Statutory rules protect the family home and spousal assets
Special state guidelines protect a healthy husband or wife when a partner enters long-term care. The law allows you to transfer your home without penalty under clear conditions.
Transfers to a spouse living at home
Transfers to a minor or disabled child
Transfers to a caregiver child or co-owner sibling
These specific state exceptions keep your family home safe for loved ones. Following these legal paths helps keep real estate in the family.
Take proactive steps to protect your estate
Early planning gives your family the most legal choices under state guidelines. Meeting with an elder law attorney helps you spot legal exceptions and secure your property before care needs start.
]]>On Behalf of Shivers Law Group<![CDATA[What makes New York estate tax laws unique?]]>https://www.valerieshiverslaw.com/?p=475282026-08-07T23:44:55Z2026-08-07T23:44:55Zthat amount is $7,350,000. That’s about half the threshold for the federal estate tax.
If you’re preparing to put your estate plan in place, it’s critical to know whether the amount being left to beneficiaries (generally with the exception of your spouse and charitable organizations) is greater than that.
There are a number of ways to legally reduce the value of your estate to prevent the government from taking a share of it. That’s one reason it’s worthwhile to work with an experienced estate planning professional.
Avoiding the tax cliff
It’s still important to know how the New York estate tax works. Our state has some unique estate tax laws.
If the estate value is more than 5% above the threshold, the entire estate is subject to the estate tax. If it’s over the threshold by 5% or less, some tax will be owed, but only on the amount over the threshold. That’s why 5% over the threshold is what’s known as the “tax cliff.” Estates valued at more than that are fully taxable, which can mean a significant amount of money going to the state.
As noted, there are multiple ways to avoid the tax cliff or getting anywhere near it. These include gifting assets while you’re still alive, leaving a greater amount to your spouse and/or charities.
In fact, New York law includes something called the “Santa Clause.” You can stipulate that if your estate may fall off the cliff, the amount over 5% above the threshold will be given to one or more charitable organizations.
Preserving your assets for the people and causes that are important to you and avoiding unnecessary taxes, penalties and legal issues for your loved ones requires careful planning. Seeking trusted legal guidance can help.]]>On Behalf of Shivers Law Group<![CDATA[Why are advance directives important?]]>https://www.valerieshiverslaw.com/?p=475272026-08-04T10:49:39Z2026-08-04T10:49:39Zadvance directive.
What is an advance directive?
Your advance directive is a written set of instructions for your medical care team. You can let them know what medical treatments and interventions you want and which ones you reject. This document can be as detailed or broad as you want.
You can set terms related to artificial nutrition and hydration, pain relief, life-prolonging care, palliative care, intubation and resuscitation. If you don’t want to be resuscitated, you should include a do not resuscitate order in your advance directive. You should also ensure that you understand the limitations of this document. For example, paramedics may still have to revive you if they’re called to care for you.
What should you do once your advance directive is set?
Once you have your advance directive written, you should provide a copy of it to your primary care physician and other members of your care team. You should also provide a copy to your local hospital and bring one with you if you seek care at any medical facility.
In addition to having your advance directive set, you can also provide someone with power of attorney to make medical decisions for you. This individual would make decisions regarding your care if they aren’t already covered in the advance directive. Working with a legal professional who is familiar with these matters can be beneficial, since they can help you to set everything up properly and in a legally-enforceable way.]]>On Behalf of Shivers Law Group<![CDATA[What is a health care proxy in New York?]]>https://www.valerieshiverslaw.com/?p=475262026-07-17T13:31:01Z2026-07-17T13:31:01ZA health care proxy is an estate planning document you can use in New York to select an agent to make medical decisions on your behalf.
Typically, this does not change anything at the moment that you make the health care proxy. Instead, you are just selecting an agent who will take on that power in the future if you become incapacitated.For instance, you could suffer from medical complications after a stroke and be admitted to the hospital. You cannot work with your medical team due to your condition, but they need to make decisions about what type of care to provide. Your agent can then step in, and the medical staff has to treat their decisions as if they are, legally speaking, decisions that you have made.
Are there other potential options?
Yes, you can take other steps to plan for your medical future. Many people will use a type of advance directive known as a living will.The difference with a living will is that you make the decisions yourself in advance. Say that you do not want to be kept on life support. Your living will can state that, regardless of what happens, you should never be put on life support, and the doctors have to follow that instruction.The main difference with the health care proxy is that your agent can make decisions as they are needed, which is much different from you trying to guess about the type of care you would want in advance.Both of these documents can certainly be helpful, and it is important to consider your medical future when creating an estate plan. Be sure you know exactly what legal steps to take under New York law.
]]>On Behalf of Shivers Law Group<![CDATA[Who can serve as an adult’s guardian in New York?]]>https://www.valerieshiverslaw.com/?p=475242026-06-30T23:25:23Z2026-06-30T23:25:23ZGuardians must be competent, trustworthy adults
As a general rule, only legal adults can accept the authority that comes with adult guardianship. Additionally, the guardian must be either a citizen or a lawful resident of the United States.
Guardians must be assertive, organized and trustworthy enough to uphold the fiduciary duty they have to the adults in their care. They must be able to manage matters on behalf of another person and consistently act in that person's best interests.
Criminal records can potentially make people ineligible for guardianship, although the severity of the offense and how recently it occurred can influence what a judge ultimately decides. The judge hearing the case has the final say regarding who they appoint and who is theoretically ineligible to hold that authority.
When there are questions about who should serve as guardian, or if a prior criminal offense could interfere with a guardianship petition, an attorney could help people evaluate the situation as objectively as possible. Securing legal guidance is often necessary for those seeking guardianship when someone cannot handle their own affairs anymore.]]>On Behalf of Shivers Law Group<![CDATA[What is a Totten trust (and why you might use one)?]]>https://www.valerieshiverslaw.com/?p=475232026-06-21T08:35:01Z2026-06-21T08:35:01ZEveryone age 18 and older should have at least a basic estate plan in place. While some people require complex financial vehicles like generational trusts, many people can get by with just a few basic documents.
One example of these is a Totten trust. Read on to learn more and determine whether you need one or not.
The name is a misnomer
Totten trusts are not trusts at all in the usual sense. Rather, they are payable-on-death accounts that can only be accessed by beneficiaries after the account holder has passed away.The name is derived from a 19th-century New York court case, In re Totten, wherein the courts determined that one person can open a bank account for another. These accounts have also been dubbed “poor man’s trusts,” although people of all income levels can benefit from them.
What the accounts do
During the account funder’s lifetime, the funds can be used, transferred, depleted and withdrawn by the one who funded the account. They have full rights to close the accounts and change the beneficiaries at will.But once the account funder dies, these funds get transferred to the beneficiary without having to wait for probate to conclude.
Who can benefit?
Anyone who might not be a traditional beneficiary could benefit from Totten trusts. Think life-long friends, god-children, loyal employees and anyone else with whom the trust grantor shared a special relationship.There are no limits to the number of Totten trusts that can be funded.
Is your estate plan complete?
Give yourself the peace of mind that a solid estate plan can provide. Learning more about your options is a wise choice to make.]]>On Behalf of Shivers Law Group<![CDATA[How can trusts strengthen your asset protection in New York?]]>https://www.valerieshiverslaw.com/?p=475222026-06-19T13:02:28Z2026-06-19T13:02:28ZWhy consider trusts for asset protection?
Trusts work by transferring ownership of your assets to a separate legal entity. This can provide a layer of protection that direct ownership may not offer. Here are some key benefits you might want to consider:
Creditor protection: Certain types of trusts can make it more difficult for creditors to access your assets. The trust technically owns them rather than you personally.
Privacy preservation: Unlike wills that go through public probate proceedings, trusts typically remain private documents. This keeps your financial affairs confidential.
Control and flexibility: You can establish specific terms for how and when beneficiaries receive assets. This could ensure your wishes are carried out according to your preferences.
Estate tax considerations: Properly structured trusts may help reduce the tax burden on your estate. This could potentially preserve more wealth for your beneficiaries.
Additionally, trusts can help protect assets from potential lawsuits, divorce proceedings and other legal challenges that might threaten your financial security.
What types of trusts might work for you?
New York law recognizes several trust structures that could enhance your asset protection strategy. Under New York law, these structures primarily include third-party spendthrift trusts. These protect inherited assets from a beneficiary's creditors. It also includes irrevocable Medicaid Asset Protection Trusts (MAPTs), which shield a grantor's home and savings from long-term care costs while preserving eligibility for public benefits. While New York law does not permit self-settled Domestic Asset Protection Trusts (DAPTs), third-party spendthrift trusts or out-of-state DAPTs are advanced legal avenues worth exploring with a qualified professional.
The key is understanding that not all trusts provide the same level of protection. Your specific circumstances, including your financial situation, family dynamics and long-term goals, should guide your decision-making process.
Taking the next step
While trusts can be valuable components of an asset protection plan, they require careful consideration and proper implementation. The rules governing trusts in New York can be complex. The effectiveness of any trust depends heavily on how it is structured and managed.
Understanding your legal options can help you evaluate whether trusts align with your objectives and guide you through the process of establishing arrangements that suit your unique needs.]]>On Behalf of Shivers Law Group<![CDATA[Unique Medicaid planning considerations for spouses]]>https://www.valerieshiverslaw.com/?p=474962026-06-08T02:13:34Z2026-06-08T02:13:34ZWhen one spouse requires long-term care, many married couples worry that qualifying for Medicaid will mean losing most of their savings and financial security. Fortunately, Medicaid rules contain special provisions designed to protect healthy spouses from becoming impoverished when their husband or wife needs nursing home care. Understanding these unique Medicaid planning considerations can help couples make informed decisions before a crisis occurs.
Unlike single applicants, married couples may benefit from spousal impoverishment protections. These rules allow the community spouse to retain certain assets and income while the other spouse seeks Medicaid eligibility. The goal is to prevent the healthy spouse from being left without sufficient resources to maintain a reasonable standard of living.
Playing the numbers game to a couple’s advantage
Medicaid generally limits the amount of countable assets an applicant may own, but not all assets are treated the same way. Certain property may be exempt, and the community spouse may be allowed to retain a portion of the couple’s resources under federal and state guidelines.In some situations, the community spouse may be entitled to retain a portion of the institutionalized spouse’s income if necessary to meet living expenses. These rules can be especially valuable when one spouse relied heavily on the other's income before long-term care became necessary.Unfortunately, gifts or asset transfers made without proper planning may trigger penalties that delay eligibility. Well-intentioned transfers to children or other relatives can create significant problems if they occur within the look-back period.Because Medicaid rules are complex and frequently change, spouses should avoid making assumptions based on advice from friends or online sources. Every family's financial situation is different, and strategies that work for one couple may not be appropriate for another. Thankfully, careful, personalized planning today may help protect a family’s resources tomorrow. ]]>On Behalf of Shivers Law Group<![CDATA[A trust can delay when someone gets their inheritance]]>https://www.valerieshiverslaw.com/?p=474942026-05-26T14:56:57Z2026-05-26T14:56:57ZThere are many ways to use trusts to pass an inheritance on to the next generation. One of the benefits of putting money into a trust is that instructions can then be left for a trustee, allowing the grantor to influence when and how that inheritance is distributed.
One tactic is to delay the inheritance and create a distribution schedule tied to the beneficiary’s age. This is sometimes done when the beneficiary is relatively young. A 19-year-old college student can technically inherit property, for example, but the grantor may want to delay when they receive a significant amount of money.
Picking multiple ages
Technically, a person could simply pick one age; for instance, they could state that the beneficiary gets access to the trust at 25. But they can also create a schedule and choose multiple ages for distributions.For example, the grantor may determine that the young person should immediately receive the first 10% of the inheritance, as long as they are a legal adult. They may then receive another 40% when they turn 25. But they would not receive the final 50% until they turn 30.If the grantor passes away while the beneficiary is still 19 years old, the inheritance could effectively be distributed over more than a decade.
Setting up a trust
This is simply one example of how a trust can be used. Grantors can also create trusts with a specific focus, such as paying college tuition costs, or they may use a special needs trust to help protect a beneficiary’s access to government benefits.To learn more about your legal options while creating an estate plan, it can be helpful to work with an experienced attorney.]]>