Planning To Establish A Trust… What Should I Do? Revocable vs. Irrevocable Trusts

Estate planning often involves setting up trusts. A trust is a legal agreement where property is held. It is therefore important to know and understand the types available: revocable versus irrevocable trusts.

An irrevocable trust is slightly easier to understand because it is quite straightforward. It is the type of trust that cannot be amended, modified, changed, or revoked after the agreement has been signed. After you place property into an irrevocable trust, you cannot retrieve it.

On the other hand, a revocable trust is much more flexible and can be changed at any time. However, a revocable trust does not offer creditor protection. What this means is that assets funded into a revocable trust will still be considered personal assets for creditor and estate tax – all trust assets will be considered yours for Medicaid Planning purposes, and will be subject to both state estate taxes and federal estate taxes and state inheritance taxes.

These two different kinds of trusts can accomplish a variety of estate planning goals, each with its own good and bad sides to it. Here are a few things to note about these two types if you are looking into establishing a trust:

For Irrevocable Trusts:

• Once property is placed into the trust, that property now belongs to the trust, not to you! Plan carefully!
• There is an estate tax reduction. Irrevocable trusts can remove the value of a property from one’s estate so that there will not be a property tax when the person dies.
• An Irrevocable Trust can be used to provide asset protection – by placing assets into an Irrevocable Trust, these assets cannot be reached by a creditor.

For Revocable Trusts:

1.      Revocable Trusts allow you to modify the terms at any time.

2.      Assets held in a Revocable Trust can avoid probate and be passed directly to the beneficiaries named at the time of the person’s death.

3.      Assets held in a Revocable Trust at the time a person becomes mentally incapacitated can be managed by a Disability Trustee; this allows individuals to plan for any issues that they think might come along in the future.

Trusts can be extremely tricky and there are many factors to take into account if you are looking into establishing one. If you are seeking guidance with establishing a trust, contact top Estate Planning Attorney Inna Fershteyn for assistance.

Law Offices of Inna Fershteyn and Associates, P.C.

(718) 333-2394

www.BrooklynTrustAndWill.com

1517 Voorhies Avenue, Suite 4

Brooklyn, NY 11235

Receiving A Medicaid Fraud Letter… What Should I Do?

Medicaid is a federal and state health coverage program that provides health care to people who are unable to pay for it themselves. It is offered free of charge to those who meet the strict eligibility requirements. Usually, Medicaid Fraud investigations occur when the investigator suspects that you have been lying or failed to disclose important information, whether you are a recipient (individual or families) of Medicaid or a provider (doctors, dentists, pharmacies, clinics, hospitals, etc).

Medicaid Fraud Investigations often begin with a letter from a Medicaid Investigator. The Investigator may involve one or more of the following government agencies, depending on the nature of the case: NYC Human Resources Administration, Office of Medicaid Provider Fraud and Abuse Investigation, Bureau of Fraud Investigation, New York State Attorney General’s Office, Medicaid Fraud Control Unit, or the Federal Bureau of Investigation. 

The letter may ask for some proofs or certain documentation and to meet with the Investigator for an interview. What happens next is extremely important. You will need a proper course of action to protect yourself from any harsh consequences. Do not, however, ignore this letter of Investigation or the interview.

By the time you have received the letter of investigation, the investigator has likely gathered evidence against you. Anything you say may be used against you and could result in criminal charges being filed or other forms of harsh consequences.

Consult with an experienced attorney to understand your options and prepare your defense. Do not try to attend the interview by yourself or settle the Investigation case on your own. If you self-incriminate yourself, you may face potentially very serious civil and criminal consequences. Your attorney can represent you in an effort to avoid or reduce the possible charges and can also negotiate a settlement that will save you time, money, and consequences. If you are being investigated for Medicaid Fraud in New York, contact NY Top Medicaid Fraud Attorney Inna Fershteyn today.

Law Offices of Inna Fershteyn and Associates, P.C.

(718) 333-2394

www.BrooklynTrustAndWill.com

1517 Voorhies Avenue, Suite 4

Brooklyn, NY 11235

What is Social Security Income (SSI)? How is SSI in New York? How Can A Personal Injury Settlement Affect My Eligibility?

Supplemental Security Income, also known as SSI, is a federal benefit program that seeks to provide assistance for individuals who are financially in need. This includes blind or disabled adults and children, individuals who have limited income, and non-disabled seniors who meet the financial limits to qualify for SSI. The program is intended to provide cash for individuals in need to meet their basic needs for food, clothing, and shelter.

In order to qualify for SSI, you must have little or no income and very few resources. This means the value of the things that you own must be less than $2,000 if you are single and less than $3,000 if you are married. If found eligible, Social Security Income provides individuals monthly cash payments. Furthermore, if you receive SSI, you can automatically get Medicaid (medical assistance). In order to receive SSI, you also must apply for any other cash benefits you may be able to get.

Under these rules of the Social Security Administration, a person is only eligible for the monthly payments if he or she has little to no income or assets. But, any earned income, gifts, gambling proceeds, and even money from a personal injury award or settlement will be considered cash assets. If this were to exceed the specified eligibility requirements ($2,000 if single, $3,000 if married), the individual would no longer be eligible for the benefits. Depending on the value an individual receives for their Personal Injury Settlement, the acquired money awarded could possibly result in the suspension of his or her SSI benefits.

If you find that you are in this situation and are seeking to keep your settlement earnings and still receive SSI benefits, seek an experienced attorney. The rules of the Social Security Administration may be very complicated and it is important that you are able to continue receiving benefits if you are financially in need.

If you are seeking assistance with your Social Security Income eligibility and/or Personal Injury Settlement, contact Attorney Inna Fershteyn today.

Law Office of Inna Fershteyn and Associates, P.C.

(718) 333-2394

www.BrooklynTrustAndWill.com

1517 Voorhies Avenue, Suite 4

Brooklyn, NY 11235

Wife accuses bar-code inventor of cheating her out of assets: suit

The wife of a Long Island genius who invented supermarket self-checkout lanes has accused him of giving away $80 million of their money — including $6 million to his mistresses — to keep it out of her hands.

But Jerome Swartz, 75, says that while he may be a tech whiz, he’s bad with money — and lost it all in the 2008 stock-market crash.

His wife, Starnette, 67, says in a lawsuit that her hubby of 28 years committed “massive fraud” by spending “millions of my assets to support a lavish lifestyle, including gifts and tuition payments for his mistresses and their children.”

Jerome, of Lloyd Harbor, spent $6 million on his paramours in 2011 alone, says the suit, filed in Suffolk County Supreme Court.

Starnette also accuses Jerome — who devised the technology behind the bar-code scanner — of forgiving $5 million in loans to his children from a previous marriage, hiding the profits from the sale of their $12 million East Setauket home and squandering millions of dollars more in an attempt to buy a stake in Miramax.

She gets $20,000 a month in support from her soon-to-be ex, court papers say.

The couple also owns an apartment at the Trump Tower on Central Park, a Jaguar XK8, a Cadillac limo and two Picasso paintings.

They have no children.

The spending violates court orders in a pending divorce action that bar Jerome from moving marital funds, the court papers say.

Starnette’s suit says the money transfers were all done secretly.

Starnette filed for divorce in April 2009, citing “irreconcilable differences,” and when she found Jerome’s assets were much lower than expected, she sued him again in civil court.

In May, Justice Thomas Whelan ruled Starnette must wait until her divorce is concluded before going after Jerome for the money.

Her lawyer, Michael Leon, said he’d appeal the ruling.

Jerome was a head of Symbol Technologies and was awarded the National Medal of Technology in 1999.

His lawyer did not return calls for comment, but Jerome has said he lost the money in the market crash

Additional reporting by Jennifer Bain and Gabrielle Fonrouge

Source: NYPost

SUNY resolves Medicaid fraud allegations

Schneiderman

New York Attorney General Eric Schneiderman announced a memorandum of understanding on Friday with the State University of New York (SUNY) to resolve allegations of Medicaid fraud.

Schneiderman’s Medicaid Fraud Control Unit (MFCU) alleged that the Daniel Squire Oral Diagnostic & Treatment Center, which is located on SUNY’s Main Street campus in Buffalo, performed dental services over two separate visits without noting the reason for each visit. Medicaid billing rules require that dental clinics perform a cleaning, dental exam and x-rays during a single reimbursable visit with a patient, unless there is a specific reason noted why the services must be performed over multiple visits. 

The dental clinic’s practices allegedly resulted in double reimbursement from Medicaid for dental services performed between Jan. 1, 2005, and Aug. 31, 2009. The clinic also allegedly failed to maintain sufficient documentation to substantiate the services it claimed to have rendered to patients, in violation of Medicaid billing laws.

“If services are billed in violation of the rules for Medicaid reimbursements, New Yorkers are owed and deserve that money,” Schneiderman said. “This settlement demonstrates our commitment to recovering taxpayer dollars misspent through violations of the Medicaid program.”

Under the terms of the settlement, SUNY must pay $115,094 to the state to resolve the allegations.

Source: Washington Examiner