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2025 Required Minimum Distribution Deadline is Near – What You Need to Know Right Now

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This is the time of year to start planning for RMDs unless you are taking them automatically. If you haven’t taken an RMD in 2025 and don’t need funds to cover living expenses, you may want to wait until December. That’s because if your RMD covers your entire tax bill, you can avoid quarterly estimated tax payments by taking the RMD in December and having your financial institution withhold a sufficient amount.

This is something most people don’t know. You can take your RMD and tell the brokerage house or advisor to withhold any amount. If the RMD is enough to cover quarterly estimated tax payments, you don’t need to make them, and the withholding on the RMD will cover the payments without penalty.

Here’s an example: Let’s say you’re required to make four quarterly estimated tax payments of $2,500 each. Your Required Minimum Distribution (RMD) for the year is $15,000. You can instruct the financial advisor to withhold $10,000 in addition to the tax due on the RMD. As a result, you will no longer need to make quarterly estimated tax payments. This allows your assets to remain in the IRA, maximizing your compound interest, which continues to grow tax-free.

Here’s why this works:

Tax-deferred retirement accounts, like traditional IRAs and 401(k)s let wage earners save pre-tax dollars. In exchange, workers pay income tax on the withdrawals and any future growth.

But you can’t keep money in tax-deferred accounts forever. That’s where the RMDs come in. They ensure Americans don’t keep saving tax free. After you reach a certain age, you are required to take a portion of the balance every year. If you fail to take your RMD in any year, you pay an excise tax equivalent to 25% of the monies you failed to take out. That’s a hefty penalty.

RMDs have to be taken out before December 31 every year. The first RMD is the only exception, you can take that out up to April 1 of the following year.

There are a few strategies for taking RMDs, with benefits and drawbacks.

Those who own traditional retirement accounts have three options:

  • Take the money early in the year.
  • Make withdrawals as periodic installments.
  • Take lump sum at the end of the year before December 31.

It all depends on your personal circumstances and preferences. But there are pros and cons to each choice.

Take a lump sum early in the year and you don’t have to think about it again. But you miss out on any growth in a tax- deferred investment, and you’ll need to make an estimated tax payment for the quarter.

Take it out throughout the year and you’ll enjoy regular cash flow. This makes sense if you make quarterly tax payments, since you can time the RMD to cover the expense. There is a downside: you’ll have to make multiple estimated tax payments, one for each quarter when money was withdrawn. Miss a deadline and you’ll get hit with an interest charge.

Taking a lump sum late in the year allows you to skip having to make estimated quarterly tax payments and maximize the tax-deferred growth. If you don’t need the cash to pay expenses, this can be a good solution. But there’s a downside here too: if you forget to make the withdrawal in time, you’ll pay a penalty. And if the market dives during December, you may have to sell investments on the low side to gather cash for a withdrawal.

Which choice is best depends upon your personal situation, but most people don’t know about using RMDs to cover quarterly estimated tax payments. If you want to explore this, call me and I’ll be happy to discuss it in detail.

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Reference: yahoo! finance (September 21, 2025) “The 2025 Required Minimum Distribution (RMD) Deadline Draws Near. Should Retirees Make Withdrawals Now or Wait Until December”

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What is the Retirement Rule of $1 More?           

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Some limits and deadlines have wiggle room, but IRS rules, especially those regarding retirement rules, aren’t among them.

The “retirement rule of $1 more” refers to the costly situations created when an increase, even by as much as $1, can trigger tax consequences or increase Medicare costs. Want to avoid crossing this expensive line? Here’s how.

Medicare’s Threshold—Meet IRMAA

The complexities of Medicare make it easy to make expensive mistakes. One survey revealed that more than 50% of people queried didn’t know that Medicare Part B – how doctor’s fees are paid – isn’t free. You have to pay monthly premiums for the coverage. What most folks don’t know: high incomes will lead to higher premiums.

If you exceed certain thresholds, expect to receive a welcoming letter from Medicare telling you that you’ve fallen into the IRMAA category. Income Related Monthly Adjustment Amount (IRMA) is based on the Modified Adjusted Gross Income (MAGI) from two years prior. In 2025, the first surcharge starts at $103,000 for singles and $206,000 for married couples filing a joint return.

If you do a Roth Conversion, take RMDs (Required Minimum Distribution) from your retirement accounts or added a new project to a retirement/side hustle, you could end of paying higher health costs for an entire year.

There’s some hope for the IRMAA threshold. If you had a major life change, including a death of a spouse, loss of a job, or income is higher because of a qualifying event, you can try to appeal using SSA-Form 44. It’s worth the effort, but there’s no guarantee of reduced premiums.

Social Security Tax Traps

Depending on how much you earn from other sources, your Social Security benefits might be subject to federal tax – as much as 85%. The SS tax calculation is based on “provisional income,” which means half of your SS benefits plus all other income, including wages, IRA withdrawals and tax-exempt interest.

Cross the $25,000 limit for singles or $32,000 for married joint filers, and the tax hit begins. It’s been decades since the formula has been updated, so every year the number of people hitting and exceeding the threshold increases.

The new tax law doesn’t eliminate federal taxes on SS, but it does give Americans age 65 and older with income under $75,000 (for individuals) and $150,000 for couples a $6,000 boost to their already existing extra standard deduction from 2025 to 2028.

Capital Gains Tax Windows

The tax code gives a 0% long term capital gain rate to many retirees, but this window closes fast. Ordinary income, including withdrawals from IRAs or 401(k) stays below capital gains, but even a modest income increase can move you into a higher tax bracket. Depending on where you land, those gains could be taxed at 15% or 20%.

In 2025, married joint filers can realize up to $96,700 in long term capital gains with zero federal tax if there’s little or no other income. But you may still need to pay state taxes. And go just $1 over ordinary income and your gains may become taxable.

Remember your RMDs from traditional IRAs and 401(k)s? They’re taxed as ordinary income, so every time you receive an RMD, your income tax increases and so can your tax bracket, Medicare premiums and how much of your Social Security benefits are taxed.

But wait—there’s more. Small increases in income can disqualify retirees from a number of other tax breaks and credits, including the Saver’s Credit, deductions for medical and charitable donations.

What Can You Do to Minimize These Threshold Costs?

The best defense against the Retirement Rule of $1 More is planning ahead. Talk with your CPA to discuss your income, strategies and make the necessary adjustments. One method is to use taxable retirement accounts before tapping pre-tax ones to take advantage of lower, 9% capital gains rate. Another is to convert IRAs and 401(k)s to Roths in lower tax years. If you don’t need your RMDs, you could use them for a Qualified Charitable Distribution (QCD), which allows you to donate up to $100,000 to a qualified nonprofit.   

We recommend a conversation with our office to discuss how to structure retirement income with your estate plan. There are a number of opportunities available to minimize your chances of stepping over that expensive threshold.

Resource: Kiplinger July 8, 2025 “The Retirement Rule of $1 More”

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Don’t Let Poor Estate Planning Ruin a Great Legacy – Jimmy Buffett’s Widow Battles Over $275 Million Estate

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When Jimmy Buffett passed away in 2023, he left a legacy of a beach lifestyle where it’s always time for a margarita. But the same laid-back island vibes are in direct contrast to the battle now underway between his widow and a co-trustee.

Jane Buffett and co-trustee Richard Mozenter filed lawsuits against each other. She wants him to be removed, alleging Mozenter has been openly hostile and adversarial. She says he won’t give her any details about the trust and is collecting excessive fees, mismanaging assets, and projecting income with an annual return of less than 1%.

For his part, Mozenter filed a lawsuit of his own in Palm Beach County, alleging that she’s been uncooperative in allowing him to manage the trust, interfering with business decisions, refusing to meet with him breached her own fiduciary duties.

Jimmy Buffett’s empire includes hotels, retirement villages, cruise ships, casinos, his song catalog, planes, cars, homes, and merchandise.  The estate includes $34.5 million in real property, $15 million in an airplane ownership company, $2 million in musical equipment, $5 million in vehicles and $12 million in other investments.  His stake in Margaritaville is estimated at $85 million, owned through JB Beta.

Buffett believed in estate planning, as evidenced by his first will having been created more than 30 years ago, amended in 2017 and again in 2023. He directed most of his assets to be placed in a marital trust for Jane. The trust was for her benefit for her lifetime, with the couple’s three children as the remainder beneficiaries, meaning they will receive any remaining assets after Jane’s passing.

He also appointed a co-trustee to manage the trust. Mozenter is an accountant who had been Buffett’s business manager and financial advisor for thirty years. That’s a strong track record and on paper, it makes sense.

The relationship between the two trustees went south shortly after Buffett’s death, with Jane saying Mozenter refused to provide information and the projected income from the trust way below her expectations.

While the battle over the Margarita millions continues, we are preparing our clients and their family members for what’s being called the Great Wealth Transfer, expected to occur over the next 25 years. More wealth being passed down often leads to more litigation, unless families take steps to update estate plans, communicate with heirs and clarify their expectations.

Dueling trustees are not an unusual source of dispute, although having two trustees on a marital trust is good practice. If only one person is the trustee, there may be problems of a different sort.

The challenge for this lawsuit is simple: the trust owns 20% of Jimmy Buffett’s Margaritaville brand, and it paid out $14 million in 18  months. The drastic drop to $2 million is unusual and it’s hard to think a recipient wouldn’t challenge such a dramatic disparity.

But there was one thing that could have been done—which we do routinely for clients.

No one was appointed to serve as a Trust Protector. In simple English – a Trust Protector can be given some limited powers over a trust, including the ability to remove or replace a Trustee. This can be a third party and should be a trusted person who can oversee the trust and its management. Think of it as a referee or safety valve for the trust. In this situation, they could have replaced Mozenter even if there was no wrongdoing and would not need to prove wrongdoing in court to have him removed.

Even a massive estate like Jimmy Buffett’s can run into trouble if the planning isn’t solid. This fight might have been avoided with clearer documents, better trustee coordination, and a Trust Protector in place. It’s a reminder that estate planning isn’t just about dividing assets. It’s also about ensuring the people left behind aren’t left in the dark—or stuck in a courtroom. 

When appropriate, our office appoints a Trust Protector. It can also be used for trusts created for children. The only requirement is the new trustee must be independent of the beneficiary, It means the trustee cannot be related to the beneficiary. Please call our office to learn more about adding a Trust Protector to your estate plan.

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New York State’s Estate Tax Cliff: How to Keep Your Estate on Solid Ground

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New York State residents shouldn’t overlook a crucial and potentially costly component of their estate planning: New York State’s estate tax cliff. If your estate falls within the $7 million to $14 million range, it is imperative to address this issue now—before it results in an unnecessary and substantial tax burden on your heirs.

Understanding the New York Estate Tax Cliff

Unlike the federal estate tax, which imposes a tax on assets only above the exemption threshold, New York State’s estate tax has its own exemption and a unique twist—commonly referred to as the “estate tax cliff.”

As of 2025, the New York State estate tax exemption is approximately $7.16 million. However, if your taxable estate exceeds 105% of this exemption (i.e., roughly $7.518 million), the entire estate becomes subject to taxation, not just the portion that exceeds the exemption.

This means a modest increase in the size of your estate can trigger a disproportionately large tax liability. Depending on the estate’s size, New York’s estate tax rate can range from 3.06% to 16%, which—while lower than federal rates—can still result in the loss of hundreds of thousands or millions of dollars if not planned for properly.

Illustrating the Cliff: A Hypothetical Example

Let’s consider a simplified example (with numbers subject to update based on current tax tables):

  • Taxable estate value: $7,518,000
  • NYS estate tax liability (if no planning): approximately $707,648

However, with appropriate estate planning—specifically the inclusion of a charitable bequest clause—this tax liability can potentially be eliminated.

By making a charitable gift equal to the amount that exceeds the exemption threshold, your estate can effectively reduce its taxable value and avoid falling off the tax cliff. For example:

  • Charitable bequest: $358,000
  • Revised estate tax liability: $0
  • Net savings to heirs: approximately $349,647

(Please note: these figures are illustrative only and must be calculated based on current exemption amounts and your actual estate value.)

What Is a Charitable Savings Clause?

A Charitable Savings Clause—also known as a conditional or formula-based charitable bequest—is a provision in your Last Will and Testament that directs a charitable donation only if your estate exceeds the New York exemption threshold.

This clause typically activates upon the death of the surviving spouse when the estate is fully exposed to estate tax. If the estate’s value places it in danger of crossing the 105% threshold, the charitable bequest effectively “brings it back” within the exempt range—preserving more of the estate for heirs while supporting a cause of your choosing.

We typically draft this provision as a “provisional charitable gift” so it’s only triggered if needed. This flexible approach ensures that your legacy remains intact regardless of minor fluctuations in estate value or exemption thresholds.

Other Ways to Avoid the Cliff

Other techniques can be used to avoid an Estate being taxable in New York when it does not owe tax Federally. Two common techniques are the use of credit shelter trusts for spouses and lifetime gifting.

When you have a married couple, the first spouse to pass away can leave assets in a trust for the surviving spouse in a way that those assets are not part of the surviving spouse’s taxable estate. This allows couples to shield more assets from estate tax and ensures the first spouse makes use of his New York estate tax exemption.

In New York, lifetime gifts are not taxed and do not count towards the estate tax exemption. This is different than Federal estate tax, which combines lifetime taxable gifts with estate value to determine the gross estate for tax purposes. If a person is above the New York estate tax threshold but below the Federal estate tax threshold, lifetime gifting to family members can be a good strategy for avoiding estate tax. And as New York has its Estate Tax Cliff, a taxable estate can cost hundreds of thousands or millions of dollars.

Your Estate Planning Checklist to Avoid the Cliff

Accurately determine your estate’s current value. Include all real estate, investments, retirement accounts, business interests, and life insurance proceeds.

Estimate your New York State estate tax exposure. Work with a qualified estate planning attorney or financial advisor to run projections based on your assets and the current exemption.

Determine the charitable deduction required. Calculate the necessary bequest to reduce your taxable estate below the threshold to see if this is your best option.

Add a Charitable Savings Clause to your Will. This ensures flexibility and effectiveness in case the estate triggers the tax.

There’s more you can do to avoid the New York State estate tax. Proper planning including the use of credit shelter trusts and lifetime gifting can also help avoid the New York estate tax cliff.

Communicate your plan to your executor and heirs.  Clear communication helps avoid confusion and ensures that your wishes are honored.

Annual Review Is Essential

Because New York’s estate tax exemption is adjusted annually for inflation, and because your estate’s value can fluctuate over time, regular reviews of your estate plan are critical. An estate that is exempt this year could become taxable next year, and vice versa. We recommend reviewing your estate plan annually, especially if your estate is near the exemption threshold or if you anticipate major changes in assets, family dynamics, or charitable goals.

Filing Considerations

New York State requires that estate tax returns be filed within nine months of the decedent’s death. A three-month extension may be requested, but the tax itself must still be paid by the original due date to avoid interest and penalties. Advance planning allows your executor to fulfill these obligations in a timely and efficient manner.

New York’s estate tax cliff is a harsh trap that can be avoided with foresight and proper legal drafting. A modest charitable gift can protect your estate from significant tax liability, preserve your family’s inheritance, and support the philanthropic causes you care about.

If your estate is nearing or exceeding the New York estate tax exemption amount, we encourage you to contact our office for a confidential consultation. We will review your current estate plan and ensure that you remain on solid financial—and legal—ground.

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Reading the Small Print in the Big, Not So Beautiful Bill: Why Businesses May Flee New York

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Attorneys and business owners across New York are sounding the alarm over a little-discussed provision buried in the latest Republican-backed tax proposal, sometimes dubbed the Big Beautiful Tax Law. While much of the bill serves as a continuation or expansion of the 2017 Tax Cuts and Jobs Act (TCJA), an important provision threatens to reverse a critical tax relief mechanism for high-income earners and pass-through businesses: the elimination of the Pass-Through Entity Tax (PTET).

If passed, this change could dramatically increase tax liabilities for partnerships, LLCs, S-corporations, and sole proprietors across the state—and push some of them out of New York altogether.

What Is the PTET and Why Does It Matter?

The Pass-Through Entity Tax (PTET) is a state-level workaround to the TCJA’s $10,000 cap on the federal deduction for state and local taxes (SALT). For high-income individuals and business owners in high-tax states like New York, this cap caused significantly higher federal tax bills.

States, including New York, adopted the PTET to mitigate the financial blow. Instead of taxing income at the individual level—where the SALT deduction cap applies—pass-through businesses elect to pay the state income tax at the entity level. Because federal law allows for full deduction of state taxes paid by a business entity, the PTET lets business owners bypass the SALT cap entirely.

For many, this tax structure has meant tens or even hundreds of thousands of dollars in savings each year.

Who Uses the PTET?

The PTET primarily benefits “pass-through entities”—business structures where profits and losses are passed directly to the owners’ tax returns rather than being subject to corporate taxation. The entities include:

  • Sole Proprietorships
  • Partnerships
  • S-Corporations
  • Limited Liability Companies (LLCs)

In particular, professional services firms, investment management partnerships, and other high-income, partnership-based businesses have leaned heavily on the PTET in the wake of the SALT cap. The structure has become vital for New York City-based law firms, accounting practices, medical partnerships, and financial advisory groups—many of which already pay New York City a 4% unincorporated business tax (UBT).

The Proposal: Ending the PTET

The new tax proposal’s quiet but seismic move to eliminate the PTET concerns many in the business and legal communities. While expanding TCJA provisions might be a political victory in Washington, eliminating the PTET threatens to devastate businesses in high-tax states.

Repealing the PTET could increase federal tax liabilities for New York State pass-through entities by as much as $5 to $6 billion yearly. Much of this burden would fall on service-oriented partnerships and high-income professionals already under pressure from inflation, rising rents, and local tax obligations.

A One-Two Punch for NYC Businesses

The blow could be even more acute for businesses operating in New York City. The proposed changes also seem to eliminate the ability to deduct New York City’s Unincorporated Business Tax (UBT), a 4% tax imposed on income from trades or businesses carried on by individuals, partnerships, or unincorporated entities.

This double hit—removal of the PTET and loss of deductibility for the UBT—could result in a staggering 50% increase in effective federal tax liability for some NYC-based businesses.

Will Businesses Leave New York?

In short, many may have no choice.

New York already ranks among the highest-taxed states in the country. Without the PTET to soften the blow of the federal SALT cap, many business owners will consider relocating to lower-tax jurisdictions such as Florida, Texas, or Tennessee.

For mid-sized firms and partnerships, the costs could outweigh the benefits of staying. And while moving an entire business operation isn’t a light decision, virtual work environments and remote client servicing have made relocation far more feasible than in earlier decades.

Estate Planning Implications

From an elder law and estate planning perspective, this change has significant downstream effects. Many business owners structure their estate plans with pass-through entities, family limited partnerships, and LLCs that rely on favorable tax treatments like the PTET. The sudden loss of that tax benefit could:

  • Reduce the net income available to fund trusts.
  • Decrease the long-term value of family-owned businesses.
  • Complicate succession planning
  • Force the sale or restructuring of assets.

For high-net-worth individuals preparing for retirement, long-term care, or generational wealth transfer, these are not minor issues. Planning strategies that were sound just a year ago may no longer be viable under the new tax regime.

A Call to Action: Watch Albany and Washington Closely

New York’s political leadership has already expressed serious concerns about the bill’s SALT-related provisions. Lawmakers know that repealing the PTET is not a partisan issue—it’s an existential one for the state’s economy. The stakes are high not just for Wall Street but for thousands of small and mid-sized businesses that drive the regional economy.

What Can You Do Now?

If you own a pass-through business in New York—or if you represent one—it’s time to act:

Review Your Business Tax Structure
Consider how the loss of the PTET would impact your entity’s tax obligations. Would restructuring as a C-corporation offer better protection? Would relocation reduce your overall liability?

Evaluate Estate Planning Strategies
For business owners using LLCs or partnerships in their estate plans, revisit those documents with a qualified estate planning attorney.

Plan for Multiple Scenarios
Work with estate planning counsel to model different outcomes and prepare for what may come.

Whether you’re a business owner, a professional partner in a law or medical practice, or someone thinking about retirement and asset protection, the time to prepare is now. We’re closely tracking this evolving situation and are here to help clients navigate the potential fallout.

Have questions about how these changes might impact your business or estate plan? Contact our office today for a consultation.

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Seniors, What Do You Need to Know About Out of Pocket Health Care Costs?

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Medicare doesn’t pay for everything. One of the big financial challenges of Medicare is the out-of-pocket cost, which can be a surprise if you’re not ready for it.

How much you’ll pay and when depends on the kind of Medicare you have. Traditional Medicare, operated by the government, provides care on a fee-for-service basis. Medicare Advantage is sold and serviced by private insurance companies and works on a managed-care model.

Traditional Medicare doesn’t have an annual out-of-pocket limit for outpatient and hospitalization services. You’ll want to consider purchasing a Medigap or supplemental insurance policy. These policies are marketed and serviced by private insurance companies.

Medicare Advantage plans typically come with their own out-of-pocket limits, which can be high, depending on which one you pick. They range from $5,000 to $9,000. The out-of-pocket protection varies with the plans. If you find yourself with a serious medical condition, the out-of-pocket cost can make it difficult or impossible to afford the care you need.

While the Inflation Reduction Act of 2022 imposes a $2,000 cap on out-of-pocket spending for drugs paid for through Part D Medicare plans, we’re sure this is going to be challenged at some point in the near future. Pharmaceutical lobbyists are a powerful force.

Deciding whether or not to go with traditional Medicare or Medicare Advantage should be based on more than up front costs. While Medicare Advantage offers one-stop shopping and claims to offer extra benefits, they come with serious limitations. You can only use a doctor who is in network, prior authorizations are required, and promised benefits are often limited to those who accept their plans.

Traditional Medicare offers the widest access to health providers, with only a few medical services requiring prior authorization.

There are definitely tradeoffs to consider between Medicare programs and you’ll need to do your homework, regardless of which plan you chose. In the meantime, buying a Medigap policy may be a wise decision to cover your healthcare costs, especially if you, like most seniors, live with a chronic condition of one kind or another.

Medigap premiums vary, but the benefits offered are standardized across insurers and across the country. They all cover hospital coinsurance—the cost you pay after meeting the deductible. Many cover all or part of the hospital deductible for Medicare ($1,676 in 2025). Medigap also covers all or part of the 20% of physician fees once you meet the Medicare Part B deductible, which is $257 this year. Some even cover the cost-sharing in skilled nursing facilities.

The best time to buy a Medigap plan is when you first sign up for Medicare Part B, which covers doctor visits and outpatient care. This is when Medigap is not allowed to reject your application or charge a higher premium for any pre-existing conditions. It’s called “guaranteed issue” and this is available during the six month Medigap Open Enrollment Period. The time starts on the first day of the month in which you are 65 years old or older and enrolled in Medicare Part B.

After this time period ends, most Medigap plans can reject your application or charge higher premiums because of pre-existing conditions except for four states: Maine, Massachusetts, Connecticut and New York.

Deciding whether to go with traditional Medicare or Medicare Advantage can be overwhelming, as there are so many different variables. What kind of out-of-pocket costs do you anticipate? What kind of medications do you take every day? A thorough review of your recent medical needs should be done in tandem with a review of the plans you’re considering.

One thing to consider: people enrolled in traditional Medicare with supplemental Medigap policies are the least likely to report trouble managing their healthcare costs because they have the greatest level of protection.

If you have questions, we invite you to call the office. We often review Medicare decisions with clients as part of their estate plan. We don’t sell insurance, but our experience with these insurance plans allows us to make worthwhile recommendations to clients.

Reference: The New York Times – “Bridging the Medicare Cost Gap: Know Your Options”

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Why Do You Need an Elder Law Attorney?

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Elder law attorneys provide various legal services to help seniors and their families navigate the challenges accompanying the aging process. This includes asset protection but extends beyond applications for Medicaid. An Elder Law attorney will also help coordinate legal planning to address such matters as needing guardianship, help with obtaining Social Security and Veteran’s benefits and navigating various services providing care to the elderly. Many people associate Elder Law with applying for Medicaid or other long-term healthcare, which is correct. However, Elder Law includes many different aspects of aging.

Estate planning is more focused on implementing wishes about the distribution of property after a person has passed, while Elder Law protects your rights as you age.

Asset Protection, Long Term Care Costs, and Elder Financial Abuse

Protecting a lifetime of savings when a person is vulnerable is one of the important roles of the Elder Law attorney. Depending on the person’s financial situation, they might benefit from having assets moved into a trust. If the person is likely to need long-term care, the Elder Law attorney may recommend the use of a Medicaid Asset Protection Trust. An irrevocable trust will move the person’s assets out of their control, making them eligible for Medicaid five years after the trust is established and funded.

Trusts may also be a strategy used to protect elderly people from financial abuse. By placing assets into a trust managed by a trusted family member or another person, anyone preying upon the older adult will have a significant obstacle to overcome to gain access to assets.

Elder Law attorneys represent seniors who have been taken advantage of by a caregiver or family member. They focus on ensuring the senior can live securely, whether at home or in a nursing home setting.

Long-Term Care Planning with an Elder Law Attorney

The Elder Law attorney helps seniors plan to ensure they have food, rent, medical care, and transportation. For example, an elderly couple may wish to remain in their home but need certain services. The Elder Law attorney helps identify which agencies can provide the care they need at home, preventing them from moving into a nursing care facility.

The Elder Law attorney also creates estate plans, including end-of-life documents like a Living Will and Advance Health Care Directive. These documents are drafted to express the senior’s wishes for health care if they cannot express them if they are incapacitated. They are also used in the case of a dementia diagnosis. 

When someone is diagnosed with dementia, an Elder Law attorney should be contacted. First, the person’s will should be updated to be sure it reflects their wishes. Next, healthcare papers expressing their wishes for care should be documented while they still have legal capacity. Once a person reaches a certain point, they will be considered incapacitated and can no longer sign legal documents, so timing is essential. Elder law attorneys can also recommend that geriatric social workers help form a care plan. Some dementia patients live for decades after their diagnosis, so a long-range plan is essential.

Guardianship Planning

Having advanced directives and appointing a trusted person or people to serve as a healthcare representative for a senior is far better than needing to apply for guardianship through the courts. Guardianships are very restrictive and closely monitored by the courts, even for an older adult who doesn’t wish to travel or go out on the town. It’s better to have a trusted family member who can help the person when they need help rather than have the court appoint a stranger.

 Elder law attorneys have networks of caregivers, geriatric social workers, and others who help older adults with various services. Their clients rely on them for recommendations to trusted people who can help with the parts of day-to-day life that become more challenging as we age.

When to Contact an Elder Law Attorney?

You need not call an Elder Law attorney when you spot your first grey hair, but it’s not a bad idea. The earlier you begin planning for your senior life, the more options will be available. If you have health concerns, for example, meet with an Elder Lawyer to be sure you have all the correct documents in place in case of incapacity. While we never know when we might be injured or ill and unable to speak for ourselves, seniors are more likely to need advance directives to express their wishes.

This includes a Healthcare Proxy or Power of Attorney for Healthcare, a HIPAA Release Form, and a Living Will. These documents are used while you are living to ensure your wishes are being followed and, for the HIPAA Release Form, to allow another person access to your medical and health insurance records. Without them, your loved ones cannot speak with your doctors and be involved with healthcare decisions.

If you expect to need long-term care benefits, you’ll want to put a Medicaid Asset Protection Trust in place early. Medicaid is a federal and state-funded, means-tested program; that is, the person applying for Medicaid must have only a minimal amount of assets. If you have over a certain amount of money, you won’t be eligible for Medicaid and must pay for nursing care out of your pocket.

Medicaid has a five-year lookback period, meaning that Medicaid looks at five years of financial transactions before deciding whether or not you are eligible. If assets have been moved to trusts or sold to a family member for a below-market price, Medicaid may refuse coverage.

If you have questions about Elder Law, we invite you to call the firm for a free consultation. It’s never too early to start planning for your future.

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U.S. Companies and Individuals No Longer Required To Report Beneficial Ownership (BOI)

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In a significant development shaking up the corporate compliance landscape, the Financial Crimes Enforcement Network (FinCEN) has issued an interim final rule effective immediately, changing the requirements for reporting Beneficial Ownership Information (BOI).

What Changed About BOI?

As of March 21, 2025, U.S. companies and individuals will no longer have to report BOI under the Corporate Transparency Act (CTA). This marks a reversal from earlier expectations and represents a major shift away from the stricter transparency regulations many were preparing for.

Who Still Has to Report Beneficiary Ownership?

Only certain foreign companies will still have reporting obligations. This applies specifically to companies formed under foreign law registered to do business in any U.S. state or Tribal jurisdiction by filing with a secretary of state (previously referred to as “foreign reporting companies”).

However, if all beneficial owners of these foreign companies are U.S. persons, they do not have to report that information. Hence, unless a mix of foreign ownership warrants scrutiny, no BOI reporting is necessary.

What About U.S. Companies?

All companies formed in the U.S.—formerly known as “domestic reporting companies”—are exempt from BOI reporting. Even if a company has foreign owners, it is not required to submit BOI.

Why the Sudden Change?

This new rule follows the president’s directive and has the support of the Treasury Department, the Attorney General, and Homeland Security. They concluded that the previous reporting requirements no longer serve a significant public interest or enhance national security efforts. This decision aligns with the President’s Executive Order 14192: Unleashing Prosperity Through Deregulation.

Could BOI Reporting Change Again?

Currently, FinCEN is currently accepting public comments and plans to finalize the rule later this year. However, many are already calling this a “death sentence” for the CTA’s reporting regime, at least for domestic companies and U.S. persons. Realistically, it would require Congressional action to reinstall the old rules, and given the current political climate, this is unlikely to happen anytime soon.

Bottom Line:

If you are a U.S. business or a U.S. person with a stake in a company, you can relax—there are currently no reporting requirements for beneficial ownership.

Do you have questions about what this means for your business? We’re here to help you navigate these changes. Reach out anytime!

*Source – Published March 27, 2025, | By Legal Eagle*

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When is the Best Time to Use a Medicaid Asset Protection Trust?

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Long-term care planning is a critical aspect of estate and financial planning, especially for individuals who may require Medicaid in the future. A Medicaid Asset Protection Trust (MAPT) is one of the most effective tools for protecting assets while ensuring Medicaid eligibility. If an individual owns substantial assets, setting up a MAPT early can prevent Medicaid spend-down requirements, ensuring more wealth is preserved for heirs.

But when is the best time to establish a MAPT? The answer depends on multiple legal and financial considerations, including Medicaid’s five-year look-back period, irrevocable trust laws, and estate recovery rules.

Legal Overview of a Medicaid Asset Protection Trust

A Medicaid Asset Protection Trust (MAPT) is a special type of irrevocable trust that lets individuals shield assets from Medicaid’s eligibility calculations while ensuring they qualify for long-term care benefits.

Legal Characteristics of a MAPT

Irrevocability—Once a MAPT is established, the grantor (the person creating the trust) cannot dissolve or modify it in most circumstances. This feature ensures that Medicaid cannot count the trust’s assets as part of the grantor’s resources.

Look-Back Rule – Federal law imposes a five-year look-back period on transfers into a MAPT. Any assets transferred within five years of applying for Medicaid may result in a penalty period during which the applicant must self-pay for long-term care.

Trustee  and Beneficiaries—The grantor cannot serve as the trustee but can designate beneficiaries (e.g., children or heirs) who will inherit the trust assets after their passing. The trust can provide that all income is paid to the grantor, but the trust cannot invade the grantor’s principal. However, the trust can distribute principal to the ultimate beneficiaries of the trust.

Exemption from Medicaid Estate Recovery – One of the leading legal advantages of a MAPT is that it prevents Medicaid estate recovery. This means that after the grantor’s death, Medicaid cannot reclaim funds from the trust to cover nursing home costs paid on the grantor’s behalf.

Best Time to Set Up a Medicaid Asset Protection Trust

From a legal standpoint, the five-year look-back period is the most critical consideration when determining the timing of a MAPT. Under 42 U.S.C. § 1396p(c) of the Social Security Act, Medicaid reviews financial transactions made within 60 months (5 years) before an application to determine if assets were transferred improperly.

  • If assets were transferred into a MAPT less than five years before applying for Medicaid, a penalty period is imposed.
  • The penalty period is calculated based on the total value of transferred assets divided by the average monthly cost of nursing home care in the applicant’s state.

Establishing a MAPT before major health issues arise ensures assets are protected when Medicaid is needed.

While the Grantor is in Good Health (Preventing Medicaid Penalty Exposure)

The best time to create a MAPT is while the grantor is still in good health and does not anticipate an immediate need for long-term care. Waiting until after a serious medical diagnosis (e.g., Alzheimer’s or Parkinson’s disease) could mean:

  • Ineligibility for Medicaid benefits due to the five-year look-back period.
  • Potential loss of assets to nursing home expenses while waiting for the penalty period to end.

Before Significant Asset Accumulation disqualifies you from Medicaid (Medicaid Eligibility Limits & Asset Spend-Down Rules)
Under federal and state Medicaid laws, an applicant’s countable assets must fall below a specific threshold to qualify for benefits. For example:

  • Single applicants – countable assets must be below $32,396 in New York. In most other states, the limit is $2,000.
  • Married applicants – The spouse staying in the community (community spouse) can typically keep part of the couple’s assets, known as the Community Spouse Resource Allowance (CSRA).

To Protect the Family Home from Medicaid Recovery (Legal Strategies for Homeowners)

Under federal law (42 U.S.C. § 1396p(b)), Medicaid can recover costs from a recipient’s estate after death. This means that if a home is still in the individual’s name at the time of death, Medicaid may place a lien on it and force its sale to recover expenses.

A MAPT can prevent this because the trust legally owns the home, not the Medicaid recipient. Medicaid cannot place a lien on an irrevocable trust’s assets, protecting the home for heirs. Homeowners who wish to keep their property in the family should place it into a MAPT well before applying for Medicaid.

What Happens If You Wait Too Long? (Legal Consequences of Late Planning)

If you delay setting up a MAPT and need Medicaid within five years, several legal challenges arise:

  • Medicaid Penalty Period—Transfers within five years lead to a period of ineligibility, which requires private payment for care.
  • Forced Asset Spend-Down – Without a MAPT, applicants may have to liquidate assets (such as selling a home) to qualify.
  • Risk of Medicaid Estate Recovery—Medicaid can claim Assets left outside a MAPT after death.

The best time to establish a Medicaid Asset Protection Trust is at least five years before applying for Medicaid while the grantor is still in good health. This approach ensures:

  •  Full compliance with Medicaid’s five-year look-back rule.
  • Preservation of assets for heirs.
  • Avoidance of Medicaid spend-down requirements
  • Protection of the family home from estate recovery.

Need Help with Medicaid Planning?
If you’re considering a Medicaid Asset Protection Trust, schedule a free consultation with our office to discuss your options. Early planning is the key to protecting your assets and securing Medicaid eligibility when you need it most.

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Washington Abandons Beneficial Ownership Reporting for U.S. Nationals and Companies

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In a dramatic policy reversal, the U.S. Treasury has permanently suspended the Corporate Transparency Act (CTA) beneficial ownership reporting requirements for all U.S. citizens and domestic businesses. This decision significantly shifts corporate compliance regulations, impacting businesses nationwide.

The CTA, enacted to enhance financial transparency and combat illicit finance, required most U.S. entities to report their beneficial ownership to a national registry managed by the Financial Crimes Enforcement Network (FinCEN).

  • New entities (established since January 1, 2024) had to file within weeks of formation.
  • Existing entities were required to submit reports by January 1, 2025.

However, multiple lawsuits challenged the Act on constitutional grounds, leading to legal uncertainty and enforcement delays throughout 2024. In December 2024, a Texas court issued an injunction against the enforcement of the CTA. Several reversals and reinstatements of the reporting provisions followed this. By February 2025, the compliance deadline was pushed to March 21, 2025, while the Treasury signaled a potential reconsideration of the rules.

The U.S. Treasury has permanently stopped enforcing CTA reporting obligations for U.S. entities. This means no penalties or fines will be imposed on domestic businesses or their beneficial owners—not now or in the future. The Treasury plans to revise the rule to focus only on foreign-owned entities. A public consultation will be held before new regulations take effect.

Treasury Secretary Scott Bessent described the decision as supporting American taxpayers and small businesses, ensuring financial regulations remain practical and non-burdensome. He framed the decision as part of President Trump’s broader agenda to eliminate excessive regulatory hurdles for businesses.

The Financial Action Task Force (FATF), which last year deemed the U.S. “largely compliant” with corporate transparency rules due to the CTA, may reassess the country’s standing following this policy reversal.

While the future shape of beneficial ownership regulations remains uncertain, one thing is clear: U.S. businesses will no longer need to comply with the CTA’s reporting requirements. Those preparing for compliance can now put those plans on hold until further guidance emerges.

Stay tuned for updates as the Treasury progresses with its proposed rulemaking process.