42 THE QUEENS COURIER • QUEENS BUSINESS • NOVEMBER 11, 2021 FOR BREAKING NEWS VISIT WWW.QNS.COM
queens business
Governor nominates Hope Knight as state’s new economic czar
BY BILL PARRY
bparry@schnepsmedia.com
@QNS
One of the borough’s top economic
trailblazers is taking her talents to Albany.
Governor Kathy Hochul announced
Friday, Oct. 29, that she will nominate
Hope Knight, the president and
CEO of Greater Jamaica Development
Corporation, as the new president and
CEO of the Empire State Development
Corporation and Commissioner of the
Department of Economic Development.
“Aft er the devastating impact the pandemic
had on New York’s economy, we
need the best of the best at the helm to
lead our recovery,” said Hochul, while
also naming Long Island’s Kevin Law
as a director and chair of the Urban
Development Corporation. “With their
extensive experience and diverse backgrounds,
Hope Knight and Kevin Law are
ready to lead New York’s economic development
in communities and cities across
the state and bring our economy back
stronger than ever before.”
Knight led the GJDC since 2015 advancing
the economic growth, communitybuilding
and sustainable real estate development
that revitalized and strengthened
southeast Queens.
“Hope Knight is a visionary leader and a
champion for not just Jamaica, but for all
Queens families. Her tireless work spearheading
Jamaica’s revitalization pre-pandemic
and its recovery post-pandemic
has been nothing short of remarkable,
and we know that she
will lead both the New
York State Department
of Economic
Development and
Empire State
De v e l o pme n t
with vigor and
grace,” Queens
Borough President
Donovan Richards
said. “We couldn’t
be prouder to
call Hope one of
our own here in
Queens, and we
applaud Governor
Hochul for such an
outstanding appointment.
Th e future of New
York state’s economy is
brighter than ever
with Hope at the
helm.”
Knight will
serve as acting
commissioner,
president
and CEO
until confi
rmed by the New York State Senate,
according to the governor’s offi ce.
“When we selected Hope Knight to
lead the Greater Jamaica Development
Corporation, we knew she would take the
organization to new heights and create
tremendous opportunities for
the residents and businesses
of southeast Queens,”
said Lamont Bailey,
board chairman of Greater Jamaica
Development Corporation. “We could
not be more thrilled for Hope, and the
people of New York, as the new president
and CEO of Empire State Development.
We look forward to great things to come.”
Bailey also announced that Justin
Rodgers has been elevated to interim
president of GJDC, from managing director
of real estate and property management,
as the board plans “next steps.”
Queens Chamber of Commerce
President and CEO Tom Grech hailed
the nominations of both Knight and Law
saying they both worked tirelessly to help
rebuild and strengthen the local economy.
“I have no doubt they are the best choices
to lead our state’s recovery at this crucial
time,” Grech said. “I look forward to
continuing to partner with these two dedicated
public servants on future projects
that support small businesses, and create
jobs and economic opportunity here in
Queens and throughout the state.”
Former Queens Deputy Borough
President Melva Miller, now the CEO
of the Association for Better New York,
hailed the appointments of Knight and
Law as “inspired choices,” praising Knight
in particular.
“ABNY has had the privilege to work
closely with Hope Knight as a member
of our Census 2020 Organizing
and Action Committee and we know
what type of leader she is,” Miller said.
“Hope holds considerable economic
development and planning experience,
and her track record demonstrates her
ability to spark economic growth in a sustainable
and inclusive way. We look forward
to working with both nominees
to help our state recover and reach new
levels of growth.”
Elder Law Minute TM
Medicaid ‘gift/note’ plan and the Defi cit Reduction Act
BY RONALD A. FATOULLAH, ESQ.
AND EVA SCHWECHTER, ESQ.
When an individual unexpectedly needs
nursing home care without having done prior
Medicaid planning, one might think that it is too
late to protect assets at that point. However, it is
never too late to seek advice to protect some of
one’s life savings. While it is preferable to conduct
long-term care planning well in advance
of needing care, if an individual hasn’t planned
ahead, there are still strategies available to avoid
spending all of one’s savings on nursing home
care. One such strategy is the promissory note, or
“gift/note” plan.
In order to be eligible for Medicaid benefi ts, a
nursing home resident may have no more than
$15,900 in “countable” assets. A spouse living at
home may keep more assets in his or her name.
There is also a fi ve-year lookback for all assets
previously gifted.
Under the Defi cit Reduction Act (DRA) of 2006,
Congress imposed a penalty on people who transferred
assets within fi ve years of their admission
to a nursing home. This penalty is a period of time
during which the person who transferred the
assets will be ineligible for Medicaid. The penalty
period does not begin until the person who
made the transfer has (1) been admitted to a
ELDER LAW
nursing home, (2) has assets below the allowable
resource level for Medicaid eligibility, (3) applied
for Medicaid coverage, and (4) been approved for
coverage but for the transfer.
If a Medicaid applicant has excess assets at
the time of nursing home admission, he or she
may spend down those assets in order to qualify
for Medicaid. However, Medicaid applicants who
want to preserve some assets have the option
to engage in further planning, utilizing the “gift/
note” plan. This approach allows a Medicaid applicant
to protect approximately one-half of his
assets while still qualifying for Medicaid.
To understand how the “gift/note” plan works,
let’s consider the example of Joe Smith, an
unmarried individual who has $260,000 in the
bank and $2,000 in monthly income, who enters
a New York nursing home that costs $15,250
monthly. If we apply Joe’s $2,000 monthly income
to the cost of care, he has a monthly shortfall of
$13,250 ($15,250 - $2,000). In order to qualify
for Medicaid, Joe cannot retain assets over
the allowable resource level of $15,900. If Joe
transfers (gifts) $130,000 to his son in November
of 2021, Medicaid will impose a 10-month
($130,000/$13,037 = 10) period of ineligibility,
from November 2021 to September 2022, during
which time he will need to pay the facility
privately. Joe can then loan his son $130,000
for 10 months, and his son will promise to pay
Joe $13,000 plus interest per month for those 10
months (represented by a promissory note). Said
repayments, plus Joe’s $2,000 monthly income,
will then be paid to the facility to cover the private
cost of care for 10 months. After the 10 month
period of ineligibility, Medicaid will pick up the
cost of Joe’s care. This “gift/note” plan is within
the parameters of the DRA and helps protect
approximately one-half of an individual’s assets
in the case of a nursing home admission with no
prior planning.
Of course, it is always better to plan in advance
and transfer assets more than fi ve years prior
to any potential need for nursing home care, in
which case all transferred assets can be protected.
However, assets can also be protected at a
later planning stage. This planning must be done
subject to the standards set forth in the DRA. In
addition to specifi c requirements of the terms of
the promissory note, the DRA has other requirements,
including rules pertaining to annuities, of
which many applicants and application preparers
are unaware. If DRA provisions are not met, an
application can be denied. As such, it is important
to seek the advice of an elder law attorney familiar
with the Medicaid rules to assist in preparing a
“gift/note” plan for Medicaid eligibility.
Ronald A. Fatoullah, Esq. is the founder 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. Eva Schwechter is an
elder law attorney with the fi rm. The law fi rm can
be reached at 718-261-1700, 516-466-4422, or
toll free at 1-877-ELDER-LAW or 1-877-ESTATES.
Mr. Fatoullah is also a partner with Brightside
Advisors, a wealth management fi rm with
offi ces in New York and Los Angeles.
This summary is not legal advice and does not create
any attorney-client relationship. This summary
does not provide a defi nitive legal opinion for any
factual situation. Before the fi rm can provide legal
advice or opinion to any person or entity, the specifi c
facts at issue must be reviewed by the fi rm. Before
an attorney-client relationship is formed, the fi rm
must have a signed engagement letter with a client
setting forth the Firm’s scope and terms of representation.
RONALD FATOULLAH
ESQ, CELA*
QNS fi le photo
Hope Knight, the
president and CEO of
the Greater Jamaica
Development
Corporation,
has been nominated
to lead the
Empire State
Development
Corporation
by Governor
Hochul.
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