Page 32 - Thomas F. Dalton Funeral Homes

trustees will step immediately into your shoes, without having to go through the length process of probate. Administratively, the only thing for your family to do, will be to have your successor trustee(s) begin managing the trust’s affairs, and disposing of the trust assets as per your directions.
A common circumstance that is encountered in New York in the elderly descendant who owns both their long time New York residence, and a Florida condominium for the retirement years. In these circumstances, without an RLT, the family of the descendant’s will (or, in the absence of a will, bring an administration proceeding) in both New York and Florida. After accounting for ling fees, legal fees, services of process, and the potential necessity for travel, this can more than double the cost of administering the es- tate. By utilizing a RLT, you can avoid these problems, save money and time for your heirs, and leave a lasting legacy for your family. Almost without exception, we advise that our clients who own real estate or other property in multiple states utilize an RLT for estate planning purposes.
Irrevocable “Medicaid” Trusts
The irrevocable “Medicaid” Trust is a special type of trust utilized to protect your assets - and in some cases, make you eligible for government bene ts - in the event that you require certain forms of care, while safeguarding your assets for the bene t of your heirs. In New York State, the averaged cost of a nursing home is approaching $10 000 per month at the time of writing. In the down-state region, the cost of such care already exceeds that number by 20% As such, the cost of care quickly diminish your hard earned savings, and prevent your children from inheriting the money that they otherwise would.
Lets utilize the example of “Rose Smith”, a ctional prospective client. Rose has a pension and security income of approximately $3000 per month, and owns her home outright and free from any mortgage. Her home is valued at $400 000 but she has few other assets. Rose knows that she wants to live in her home until her demise, but has a history of Alzheimer in her family, and wants to protect her major asset (in this case her home) so that her children will have a nest and her grandchildren will be able to go to college without taking out student loans. Rose will nominate an independent trustee (a trusted relative, friend or colleague), transfer title of her home into the Rose Smith Irrevocable Trust, and reserve herself a little estate. Rose continues to live in her home, and remains eligible for the same property tax exemptions to which she was previously entitled.
Six years later, Rose requires nursing home care, and spends three years in a nursing home prior to her eventual passing. Had Rose maintained her home in her individual name rather than transferring her home to the trust, her estate would be liable to the nursing home for the cost of the care - at $10 000 per month for three years, $360 000. Her family would inherit 10% of her estate, with the nursing home taking the remainder of the funds. However, because Rose utilized properplanning,thehomepassesoutside of her estate, and her creditors cannot collect against the house.
Upon her passing, Rose’s life estate terminates, the house may be sold by her trustee, and the full proceeds from the sale are distributed to her heirs as per the terms of the trust. It is important to understand that there is a statutory “look back” peri- od which you must surpass in order for the trust’s bene ts to apply to your particular
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