Archive for March, 2011

Budget includes expanded Medicaid Recovery

We now have the wording of the NYS Budget Bill in regard to the expanded recovery from estates of Medicaid recipients. The legislation states that in addition to assets passing under a valid will or by intestacy,

“..an individual’s estate also includes any other property in which the individual has any legal title or interest at the time of death, including jointly held property, retained life estates, and interests in trusts, to the extent of such interests;…”

The legislation takes effect April 1, 2011. There is no reference to grandfathering such  assets created prior to the effective date. There will be efforts made to modify the legislation to include grandfathering. Hopefully these efforts will be successful.

Medicaid planning will be significantly affected by this new legislation.

Just in: NYS Budget Affects Medicaid Recipients

The NYS Budget for 2011 has been passed.  According to the information we just received, there is one significant change that will affect many Medicaid recipients. The budget includes a provision for a regulation which will expand the assets from which Medicaid may recover its costs on the death of a Medicaid recipient. These newly recoverable assets may include  life estates, joint accounts and revocable and irrevocable trusts. More details will follow as we get more information.

The good news, if there is any, is that according to our current understanding, this provision is the only change in the new budget affecting Medicaid applicants and recipients.

Can an agent amend a trust?

A recent New York case held that an agent under a Power of Attorney cannot amend a trust on behalf of the principal unless the principal’s Power of Attorney specifically grants that power to the agent. The case is Perosi v. Ligreci, 2011 NY Slip Op 21048 (Supreme Court, Richmond County, February 14, 2011.) This decision confirms that you must think very carefully about what you want your agent to be able to accomplish on your behalf when signing a Power of Attorney and specifically provide for the needed authority in your document.

In our office we post an interesting saying every week. I will be adding our weekly saying to my blogs. This week’s saying is:

“Do not let what you cannot do interfere with what you can do.”  -John Wooden