If you live in New York and are getting ready to retire, then it's important to take stock of your financial situation. You will no longer have a regular income, so you're going to have to understand the different options you have to save money. Secondly, you should understand how to protect your assets in the event you need to enter a nursing home or an assisted living facility. Here's what you should know.
Homeowners: Enhanced Star Exemption
If you own a house in New York, then you should apply for an enhanced STAR exemption in order to lower your property taxes. The regular STAR exemption is for all ages; however, once you reach the age of 65, you can get the enhanced version. All persons over 65 are eligible, provided they have an income of less than $86,000 a year.
NYC Renters: SCRIE
Just because you don't own a house doesn't mean that there are no savings plans out there for you. In NYC, many people rent apartments. If you happen to live in an older building that is Rent Stabilized, then you can participate in the Senior Citizens Rent Increase Exemption. As long as your income is $50,000 or less a year, then you can qualify. Remember, the program only applies to rent stabilized apartments and buildings in the Mitchel Lama program. If you live in a non-stabilized apartment, then you cannot use this program. The city has agencies that will assist in setting up the paperwork.
Everyone: Irrevocable Trust
Perhaps the most important thing to do is establish an irrevocable trust. This will protect your assets in the event you become ill. Should you have to enter into a nursing home or an assisted living facility, you don't want your entire savings to be drained. There is a concept in Medicaid coverage called a 5 year look back. This means that any money you give to your children 5 years prior to admittance into a facility will be considered assets that the government can take to pay for the nursing home or assisted living facility. This is why it's important to set up an irrevocable trust as soon as possible. You don't want to wait until later to set it up because time counts when it comes to protecting your possession. Once the period has passed, your assets that are in the trust are now safe from Medicaid should you have the need for long term care. For more information about setting up an irrevocable trust, talk to an attorney at Hurth Sisk & Blakemore LLP.
Share10 October 2016
People with an eye for property can make a great deal of money buying a house, fixing it up and then selling it for a profit. However, there are many legal issues involved in this kind of pursuit. I am an attorney with experience in real estate, and I have helped many clients learn the legal details involved in flipping property. This blog will help you understand what you need to know when you are buying and selling a home as well as information about paying taxes on money made and property owned. Flipping houses can be a very profitable activity as long as you know how to do it legally.
