We’d like to bring to your attention two recent articles from Elder Law Answers highlighting issues in elder law and estate planning that should be on everyone’s radar.
The first article concerns President Obama’s recent State of the Union speech, in which he outlined his desire to make the tax-code more “progressive”. Part of his proposal entails closing what the article refers to as the “angel of death loophole”, more commonly known as a “stepped-up basis” for assets received from a deceased person’s estate or trust. We have previously written about the stepped-up basis here: http://counselfirst.wpengine.com/estate-planning/
You can read the Elder Law Answers article about the President’s proposal here: http://attorney.elderlawanswers.com/obama-calls-for-end-to-basis-step-up-at-death-14955
The second article contains a wise lesson for our elder law clients and their family members: Do not sign contracts at assisted living or nursing home facilities until you’ve consulted a qualified elder law attorney!
The article tells the story of a New York couple who moved into an assisted living facility and signed a contract promising to spend down their assets before applying for Medicaid benefits. When the couple later tried to engage in a common and permitted Medicaid planning technique—spousal transfers—the nursing home sued them for a breach of contract. You can read the full article and decision here: http://attorney.elderlawanswers.com/ccrc-residents-breached-contract-when-they-applied-for-medicaid-14954