Towers Country Club Group Fitness Class Schedule JANUARY 1, 2014 All Classes are 50-55 min. Highlighted Classes Are New to Schedule MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY 7:15 AM CYCLING @ TCC (4) CARDIO SCULPT(4) CYCLING @ TCC (4) LISA(4) (Cari) (Nicole) 8:15 AM CARDIO DANCE (3) DANCERCISE(3) ABS&WEIGHTS(4) CARDIO DANCE (3) CYCLING @TCC CYCLING @ TCC (4) (Mary Grace) LISA (Nicole) (Mary Grace) (Lisa) (Nicole) 9:15 AM BODY BLAST(3) HI/LOW PLUS (4) STRETCH(1) HI/LOW PLUS (4) BODY BLAST (3) BODY BLAST (4) CARDIO/ABS (4) (Mary Grace) (Phyllis) (Lori) (Phyllis) (Mary Grace) (Tammy/Lisa) (Nicole) 10:15 AM Water (1) Water(1) Water Aerobics (1) Water(1) Water (1) Water (1) Water Aerobics (1) (Loretta) (Lori) (Beverly) (Lori) (Phyllis) (Loretta) (Lori,Beverly,Phyllis) THIS & THAT (2) THIS & THAT (2) THIS & THAT (2) THIS & THAT (2) THIS & THAT (2) STRETCH (1) BODYBLAST (4) (Mary Grace) (Phyllis) (Lori) (Beverly) (Donna) (Tammy/Lisa) (Cari) 11:15 AM STRETCH (1) ZUMBA (3) (Tammy) (Vicky) 11:30 AM ZUMBA GOLD (3) (Coco) (Vicky will teach on 1/26) YOGA FOR THE YOUNG TAI CHI (1) YOGA FOR THE YOUNG On Jan 11th @ 1:30 pm YOGA FOR THE YOUNG 3:00PM @ (1) (Irma) @ (1) (Helena) (JOE) @ (1) (Irma) Pilates Reformer Demo by Verol NEW CLASSES ARE HIGHLIGHTED ** Water classes will be taught outside weather permitting. 4:00 PM TAI CHI (1) BASIC YOGA (1) YOGA (1) BASIC YOGA (1) 1. Please refrain from wearing PERFUME to class. (Joe) (Helena) (CARMELA) (Jennifer) 2. The warm up is the most important part of the class-no admittance after first 15 min. 7:00 PM MAT PILATES (4) BODY BLAST(4) LINE DANCING (1) BODY BLAST (4) 3. Please wear comfortable clothes and proper shoes. (SNEAKERS) (Irene) Mary Grace) no class on 1/8 (Rose) Mary Grace/Beverly 4. If no one is in class for the 1st 15 min, the instructor has the right to cancel class. 8:00 PM DANCE FITNESS (3) BALLROOM (1) TAI CHI (1) ZUMBA (3) 1 = ALL LEVELS 2 = BEGINNERS (Kerrie) (Mary Grace) (Joe) VICKY 4 = A DVAN CED 3= INTERMEDIATE North Shore Towers Courier n January 2014 35 The Elder Law Minute™ LIFE ESTATES AND MEDICAID By Ronald A. Fatoullah, Esq. and $58,000 and the home is now valued at Stacey Meshnick, Esq. $758,000, the recipient will have a basis of $58,000 and will pay capital gains tax on Life estates have historically been used the $700,000 gain/profi t upon the sale of as part of Medicaid planning. A life estate the property. However, if the grantor retains can be described as a form of co-ownership a life estate in the property and the house of property between a “life tenant” and a is not sold during the grantor’s lifetime, “remainderman.” To own a life estate means the recipient will essentially inherit the the person, referred to as the life tenant, has property, and the basis will be the value of the right to the use and possession of the the property on the donor’s date of death, property during his/her lifetime, similar to i.e. “stepped up basis,” thereby minimizing an owner. Upon his/her death, another or eliminating capital gains tax on the sale. individual, called the remainderman, will For Medicaid purposes, the value of a become the owner of the property. Such life estate is looked at to determine how co-ownership gives the life tenant and much of the property was transferred or remainderman each a set of rights to the “gifted” to the remainderman, if the grantor property and a monetary value attached to requires nursing home Medicaid within those rights. Life estates are used because 5 years of the transfer. For nursing home they often accomplish multiple benefi cial Medicaid, any type of transfer of assets goals in addition to Medicaid eligibility. without compensation for fair market value Since the passage of the Defi cit Reduction is presumed to be a gift, and Medicaid Act of 2005, changes regarding life estates imposes a penalty on all gifts. When a have been implemented in Medicaid Medicaid applicant transfers his/her house planning. The major change has been the but retains a life estate, the individual is method of valuing life estates. considered to have gifted not the value The use of a life estate when one person of the entire property but the value of the plans to transfer property to another property less the value of the life estate is often benefi cial for capital gains tax that he/she retained. Medicaid can only purposes. When an individual (grantor/ impose a penalty on the portion “gifted” donor) transfers property outright (makes a to the remainderman. Medicaid uses “gift”) to another person (recipient/donee), charts to value life estates. So, for example, the recipient of the gift takes on the cost pursuant to IRS tables, if the federal midterm basis of that property (what the grantor interest rate is 2% at the time of the paid for the property plus any capital improvements), known as the “carry over basis”. In other words, if an individual transfers a home purchased in 1958 for transfer, the life estate for a 75 year-old is valued at .19077. Therefore, if a 75 year-old transfers her $758,000 house and retains a life estate, Medicaid will value the life estate at $144,603.66 and the resulting value of the “gift” is $613,396.34. Medicaid can impose a penalty on $613,396.34, not on the entire value of the property. Prior to the DRA, life estates were valued at a larger percentage of the value of the home. For example, prior to the DRA the value of a life estate for a 75 year-old was valued at .52149. Therefore, in the above example, the life estate value would have been $395,289.42 and the resulting value of the “gift” would have been $362,710.58. Another change resulting from the DRA specifi cally affects life estates that are purchased. Life estates can be retained or purchased on a property. A life estate is retained when the owner transfers the property to another but keeps a life estate (or reserves the right of a life estate). A life estate is purchased when an individual buys a life estate in another person’s home. For example, an elderly person’s child may have plans to move the parent into his/ her home in order to provide care and in that case, the elderly individual can legitimately spend down some of his/her assets by purchasing a right to remain in the child’s home. After the DRA, in order for the purchase of a life estate to be considered a compensated transfer and not a gift for Medicaid purposes, the individual buying the life estate must reside in the home for at least one year after the purchase. The individual must also be able to show suffi cient proof of such residency. In a recently decided case, Albino v. Shah, a woman who owned a life ELDER LAW RONALD FATOULLAH, ESQ, CELA* estate on property #1 purchased a life estate on property #2, bought by her daughter and grandson. Thirteen months later she became a resident of an assisted living facility. About a year after that she fell and broke her hip and was ultimately admitted into a nursing home. At a fair hearing it was decided that her tax returns listed property #1 as her address, as did her driver’s license and registration with the Board of Elections. Although she provided undated mail sent to the second property, it was not enough evidence to overturn the decision of the fair hearing and the lower court. The funds used to purchase the life estate on property #2 were deemed a transfer of assets/gift, rather than a compensated transfer, resulting in a period of ineligibility for nursing home Medicaid. Ronald A. Fatoullah, Esq. is the principal of Ronald Fatoullah & Associates, a law fi rm that exclusively concentrates in elder law, estate planning, Medicaid planning, guardianships, estate administration, trusts and wills. The fi rm has offi ces in Forest Hills, Great Neck, Manhattan, Brooklyn, and Cedarhurst, NY. This article was co-written by Stacey Meshnick, Esq., senior staff attorney at the fi rm who has chaired the fi rm’s Medicaid department for over 15 years. Ronald Fatoullah & Associates can be reached by calling (718) 261-1700, 516- 466-4422, or toll free at 1-877-ELDERLAW or 1-877-ESTATES.
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