When you contemplate long term care planning in New York, you might want to consider what the general rules are before going too deeply into the subject. What do the documents need to say and how will the court look at your plan, if it should come to that?
When a long term care trust is created, you are the “settlor” or grantor, if it is your trust for someone you love to administer. These are legal entities that are separate from the person’s other assets that are invented to specifically be apart from the rest of your estate for tax reasons.
They bypass the probate estate and can make it much easier for your long term care to be set up. Prepare yourself for bureaucracy and expense that can come when you have to fight the state for what you need.
When it comes to long term care planning, having an attorney involved early is a good idea. He or she can help you determine what, if any, assets need to be devoted to the trust so that not only are you and your spouse are taken care of but your children know exactly what you want to see happen.
When you are setting up this account, it can be set up to take care of any problems that come your way and can even see that your favorite charities receive regular, timely payments that can reduce you taxes.
Gifting your children before you pass away can ease their burden as well and can give you peace of mind. When you do this, their inheritance taxes go way down. This gives more to them and eases your mind when it comes to the burden that they may carry when they are assisting in your long term care.
Do you need help setting up a long term care plan? You may want to contact a professional who can assist you and knows what is best because he or she has experience in this area.
Source: Myrtle Beach Online, “Examining the different forms of estate anatomy” Gary Newmanreal Life, Mar. 21, 2015
