46 THE QUEENS COURIER • HEALTH • FEBRUARY 1, 2018 FOR BREAKING NEWS VISIT WWW.QNS.COM
health
The Elder Law Minute TM
Highlights of the New Tax Law
BY RONALD A. FATOULLAH, ESQ.
AND JAMES A. E. ASQUITH, ESQ.
ELDER LAW
On December 22, 2017, President
Trump signed the Tax Cuts and Jobs Act
into law. Th is law is the biggest change
to our system of taxation in more than 30
years. Below are just some key highlights
of the new law.
Estate Taxes: Eff ective January 1,
2018, the federal estate tax exclusion
“unifi ed credit” amount was doubled to
$11.2 million per person ($22.4 million
for married couples, with proper planning).
DEPRESSION: THE SIGNS AND AGING
We oft en mistake an old person’s quiet
withdrawal and lack of complaint as philosophic
acceptance when, in fact, she is
putting her best possible face on a bitterly
disappointing, humiliating or frightening
situation.
Either assumption, that it is normal to be
unhappy or that old people are somehow
happy about being unhappy, obstructs our
view of the person’s true state of mind.
Signs of distress deserve attention in old
age as much as at any point in the lifespan.
Depression is one of the most common
expressions of emotional distress in
older men and women. Th e basic symptoms
of depression are similar throughout
adult life, but in old age it can be diffi cult
to know where a physical diffi culty leaves
off and depression begins.
Reduced appetite and inability to get
a goo d night’s sleep, for example, are
among the clues that suggest depression.
But old people may choose to eat less and
have sleep diffi culties for reasons other
than depression. It is when an entire pattern
begins to emerge that we should seriously
consider the possibility of a depressive
action.
Th e pattern is likely to include reduced
and slowed-down speech, and the person
may seem to be thinking slower as well.
Th ere is less attention to personal grooming.
Energy is lacking even for routine
activities. A general feeling of pessimism
prevails and life appears increasingly grim
and hopeless.
Th ere may be talk of feeling empty
inside, and of being useless, a worthless
person. Th e future holds nothing; the
past is no source of comfort; the present
moment is intolerable. Th e depressed persons
may turn their feelings against themselves,
sometimes lashing out in anger at
other people.
We can help such a person by encouraging
him to use all the control he has,
and by supporting him in all his remaining
areas of vigor and competence. We
can hear him out, listening carefully to his
sorrows and alarms. Th is sharing is not
only useful in itself, but it can also help
the old person realize that problems of
the past need not continue to weigh upon
him today.
An impaired or emotionally upset old
person should be helped without asking
for anything in return and without unnecessary
invasion of privacy. We should not
assault a person’s integrity, condescend to
him or deprive him of rights in the name
of welfare.
Th ere is general agreement that there
is a higher percentage of people suff ering
emotional distress in old age than at any
other time in adult life. Yet the provision
of mental health services for the elderly is
much below the average. Th e gap between
need and suitable care is all too oft en fi lled
by dubious measures, such as heavy-handed
prescribing of drugs.
But there are also other ways in which
the old, depressed person may endanger
his own life. He may neglect a medical
regime that is necessary to control an illness
such as diabetes. He may limit himself
to bed and chair, becoming increasingly
inactive and thus more vulnerable
to degenerative processes and infections.
Depression may also be misinterpreted as
proof of dementia, causing further social
isolation and incorrect treatment.
However by giving support via friends
and community, and appropriate treatment,
the depressed individual can pass
through these episodes and return to a
meaningful adult level of functioning.
Quotable Quote: “When happiness
shows up, give it a comfortable seat.”
Anonymous
Sheldon Ornstein Ed.D, RN, LNHA
Dr. Sheldon Ornstein is a
registered professional nurse
with a doctoral degree in
nursing organization. He
has specialized in the care
of older adults and has
published many articles on
the subject. He has done
post-graduate work in gerontology
and has taught
at several universities. In
2013, he was inducted into
the Nursing Hall of Fame at
Teachers College, Columbia
University.
Th at means that if an individual
dies with a taxable estate of less than
$11.2 million (assuming no prior gift -
ing), a federal estate tax will likely not
be due. However, it is important to note
that while the federal estate tax exclusion
is being doubled, many states, including
New York, have their own state estate
tax. Th erefore, when engaging in estate
planning, care should be given to the relevant
state estate tax exclusion amount.
Moreover, under the new law, the federal
exclusion amount reverts back to the
current base rate of $5 million (indexed
for infl ation) in 2026. Because of this
short window, it may be wise to discuss
estate tax planning with an attorney.
State and Local Tax Deduction
Limitation: Th e new law limits the
deduction for state and local taxes to
$10,000 (this includes both property taxes
and state income taxes). Th is will have a
large impact on taxpayers in high income
and property tax states, such as New York.
New Income Tax Brackets: Under the
new law, the seven income tax brackets
remain, but the rates have changed as follows:
Standard Deduction and the
Elimination of the Personal Exemption:
Th e new law roughly doubles the standard
deduction, but it abolishes the
Personal Exemption. Th e standard
deduction has been increased as follows:
• From $6,350.00 (2017) to $12,000.00
(2018) for individuals
• From $12,700.00 to $24,000.00 for
married fi ling jointly and surviving
spouses
• From $9,350.00 to $18,000.00
for Head of Households
However, due to the elimination of
the Personal Exemption, which in 2017
permitted taxpayers to claim a deduction
for themselves, their spouses, and
their dependents, the doubling of the
standard deduction may not be as signifi
cant a tax cut as it appears to be.
Section 529 Plans: Under the new
law, distributions from 529 plans can be
used to pay tuition and other expenses
at elementary, secondary and religious
schools. Under the prior law, the distributions
were traditionally limited to posthigh
school education. However, it is
important to also consider how New York
State will treat 529 plans before using such
accounts to pay for K-12 tuition expenses.
In addition to the provisions described
above, the new law contains many other
modifi cations. To better understand
how the new tax law will aff ect you, your
family or your business, you should consult
an attorney or tax professional.
Ronald A. Fatoullah, Esq. is the principal
of Ronald Fatoullah & Associates, a law
fi rm that concentrates in elder law, estate
planning, Medicaid planning, guardianships,
estate administration, trusts, wills,
and real estate. James A. E. Asquith is an
elder law attorney with the fi rm. Th e law
fi rm can be reached at 718-261-1700, 516-
466-4422, or toll free at 1-877-ELDERLAW
or 1-877-ESTATES. Mr. Fatoullah
is also a partner with Advice Period, a
wealth management fi rm, and he can be
reached at 424-256-7273.
RONALD FATOULLAH
ESQ, CELA*
Tax
Rate Individuals Married fi ling Jointly or
Surviving Spouse
Married fi ling
Separately Head of Household
10% $1 to $9,525 $1 to $19,050 $1 to $9,525 $1 to $13,600
12% $9,526 to $38,700 $19,051 to $77,400 $9,526 to $38,700 $13,601 to $51,800
22% $38,701 to $82,500 $77,401 to $165,000 $38,701 to $82,500 $51,801 to $82,500
24% $82,501 to $157,000 $165,001 to $315,000 $82,501 to $157,000 $82,501 to $157,500
32% $157,001 to $200,000 $315,001 to $400,000 $157,001 to $200,000 $157,001 to $200,000
35% $200,001 to $500,000 $400,001 to $600,000 $200,001 to $300,000 $200,001 to $500,000
37% over $500,000 over $600,000 over $300,000 over $500,000