Blogs from May, 2024

Couples who are married in religious ceremonies, but never follow through with a civil marriage may have unexpected inheritance rights under New York State law. This can result in unintended consequences, where children from a previous marriage are surprised to find their parent’s inheritance plans superseded.

In New York State, if one spouse dies without a will, a surviving spouse has inheritance rights under New York’s intestate succession laws. The surviving spouse inherits the first $50,000 plus half of an estate where the deceased is survived by a spouse and children. If the deceased had no surviving descendants, the surviving spouse inherits the full estate.

Even if a deceased spouse prepared a will leaving nothing to their spouse, the disinherited spouse may still have the right to claim an “elective share” of up to one-third of the estate if the deceased had children, or up to half of the estate if there were no children.

So who exactly is a surviving spouse?

The definition of a “surviving spouse” in New York can be more expansive than one might expect. A surviving spouse refers to a husband or wife who outlives their married partner. It’s not just limited to those couples who have obtained marriage licenses according to Domestic Relations Law. New York may also consider the following surviving spouses:

• Couples married in religious ceremonies
• Couples in a common law marriage, if the marriage was established in a state that recognizes common law marriage

New York Domestic Relations Law § 13 requires every couple to obtain a marriage license before a marriage ceremony may be performed. However, even if a marriage license is not obtained, and there is no civil marriage, New York State law may still recognize a marriage!

In the Matter of the Estate of Daoud Farraj, the court recognized that a couple who had never been civilly married or obtained a marriage license were nevertheless husband and wife and the wife had standing in her deceased husband’s estate proceeding. “[T]he New York legislature has chosen to recognize marriages that have been celebrated in accordance with the customs of a religion, even if the parties do not obtain the required marriage license.” NY Dom. Rel. Law § 25

In a recent case this year, Spalter v. Spalter, a New York court recognized a valid marriage, even over the “husband’s” objections where the couple participates in a Jewish ceremonial marriage but did not obtain a civil marriage license.

This could have significant unintended consequences.

Consider the case of Max and Susie, a widowed couple who decided to have a religious marriage ceremony, but not obtain a civil license. When Susie later passed away, leaving her entire estate to her children, her “surviving spouse” Max was still able to claim a one-third elective share, despite not being named in the will.

The takeaway is that inheritance plans can be unexpectedly disrupted in New York, even for couples who choose not to solemnize their marriage under civil law. Working closely with an experienced estate planning attorney is crucial to ensure your wishes are properly documented and protected, regardless of your marital status.

As we age, the prospect of needing long-term care can be daunting. Whether it’s for yourself or a loved one, navigating the complex world of Medicaid and securing coverage for long-term care can be a overwhelming task. This is where the experience and care of an elder law attorney becomes invaluable.

Applying for Medicaid long-term care coverage is a delicate and intricate process. The eligibility requirements are stringent, and a single mistake can result in a denied application or delay in benefits. An elder law attorney understands the nuances of Medicaid regulations and can guide you through the process, ensuring that your application is complete, accurate, and submitted in a timely manner.

One of the critical roles an elder law attorney plays is in asset protection. Medicaid has strict asset and income limits, and if you exceed these limits, you may not qualify for coverage. An elder law attorney can help you structure your assets in a way that meets Medicaid’s requirements, allowing you to preserve your savings and protect your financial future.

But getting the Medicaid approval is not where a lawyer’s assistance ends.

If you are using the assistance of a nursing home, home care agency, or expeditor service to assist with your application, they have one goal only: to get you approved for services. They are not concerned about future liens or penalties that you may be subject to.

Consider Beth, who needed nursing home care. She used a service recommended by the nursing home to assist with her Medicaid application. She owned her home in New York and only had $25,000 in her checking and savings accounts. A home is exempt if it is below the home equity limit (in 2024, $1,071,000). An “intent to return home” was filed with her application and her application was approved. No one advised her that Medicaid has the right to “estate recovery” and before her family could inherit, Medicaid will get paid back for the total financial cost of care provided to her from the equity in the home. After her death, her children were faced with a $300,000 bill that had to be settled before they could distribute the remaining proceeds from the sale of Beth’s home. With the assistance of an elder law attorney, she could have done planning during her lifetime to protect her home.

Consider Paul, who needed assistance at home. The home care agency prepared the Medicaid application, free of charge. Paul had $100,000, which was more than the resource allowance, (in 2024, $31,175), so they told him to simply “transfer it to his daughter.” His daughter was very honest and made sure to only spend that money on Paul’s needs. Fast forward one year later. Paul was not doing well and needed nursing home care. A nursing home Medicaid application requires a 5 year look back where Medicaid would flag an uncompensated transfer of $70,000, resulting in a penalty, essentially requiring Paul to pay approximately $70,000 worth of his nursing home bill out of pocket. Sadly, his daughter no longer had this money to pay during the penalty period and they faced a tremendous problem. With better advice from an elder law attorney from the onset, this situation could have been avoided.

In the end, having an elder law attorney by your side can make all the difference when it comes to securing Medicaid long-term care coverage. Their knowledge, experience and guidance can help you navigate the complexities of the system, protect your assets, and ensure that you or your loved one receive the care you need.