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How Your Will Controls Your Assets After You Pass Away – The Difference Between Probate and Non-Probate Assets

People sometimes come to me unsure about the distinction between probate and non-probate assets.  The primary distinction is that probate assets are considered to be within your probate estate and therefore are controlled by the terms of your Will.  Non-probate assets are not considered to be within your probate estate and therefore are not controlled by the terms of your Will.

In order to better understand the distinction, I often describe assets as falling into one of three different baskets.

ASSET BASKET NUMBER ONE:  Asset basket number one includes all the assets you have which are titled in your name only.  They are not jointly held with anyone else and they are not payable to a named beneficiary in the event that you pass away.

ASSET BASKET NUMBER TWO:  Asset basket number two includes all the assets that you have which are jointly held with someone else.  These assets generally will automatically pass on to the other joint owner upon your death.

ASSET BASKET NUMBER THREE:  Asset basket number three includes all the assets you have which are payable to a named beneficiary outside of your Will.  These assets will pass to the named beneficiary upon your death, regardless of what your Will says.

These distinctions are important because your Will only controls the assets in basket number one.  Examples of basket number one assets includes things such as:  a car titled just in your name, stock which is only held by you, and any bank account that you have not titled in any way with someone else.  Basket one assets are probate assets.

Examples of basket two assets include things such as:  a home you own jointly with your spouse, a bank account you have jointly with a parent, and jointly held securities.  None of these assets will be controlled by the terms of your Will if you die and are survived by your joint asset owner.  Basket two assets are non-probate assets.

Examples of basket three assets include things such as:  life insurance payable to a specific person or persons, retirement accounts (like an IRA or 401k) payable to a specific person or persons, and anything you have in a Trust – when the trust provisions do not make the assets payable to your estate upon your passing (which they generally do not).  Basket three assets are non-probate assets.

Understanding these distinctions are critical to proper estate planning.  If you meet with an attorney to discuss drafting estate planning documents like Wills and/or Trusts, you must make clear to that attorney exactly what assets you have and which basket they fall into.

People sometimes make the mistake of thinking that their Will can override the non-probate asset character of a basket two or basket three asset.  For example, they may think that regardless of who they list as a beneficiary on their IRA, if their Will leaves all their assets to their spouse, then their spouse will receive all their assets of any type.  This is not true.  If an asset falls in basket number two and is joint with someone other than their spouse, then that joint owner will receive that asset upon their death.  As an additional example, if an IRA is payable to someone other than their spouse, then that other person will receive that IRA upon their death.

It is critical as part of your estate planning to review the status of all your assets.  To the extent you own anything jointly with someone else, you need to confirm who that joint owner is.  To the extent you own anything payable to a named beneficiary, you need to confirm that the beneficiary listed is the one you wish to receive that asset upon your passing.

As you can imagine, sometimes people lose track of the status of their basket two or basket three assets.  For example, they may have forgotten that the designated their four children as the beneficiaries of their IRA, even after they had a falling out with one of the children and intended to remove them as a beneficiary.  These types of mistakes can lead to significant assets going to beneficiaries who should not ideally receive them.

If you are getting ready to consider estate planning, you should get together a list of your assets and determine which of the three baskets each asset falls into.  That information will be invaluable in working with a professional to develop a plan that is right for you.

Matthew J. Dorsey, Esq. is a Senior Partner with O’Connell and Aronowitz, 1 Court Street, Saratoga Springs. Over his twenty-five years of practice, he has focused on the areas of elder law, estate planning, and estate administration. Mr. Dorsey can be reached at 518-584-5205, mdorsey@oalaw.com and www.oalaw.com

Lent with Little (and Big) Boys

We observe Lent in our house, which refers to the six weeks before Easter, starting with Ash Wednesday. It’s meant to be a time of fasting and prayer in preparation for celebrating the most holy time of our faith calendar, thus mirroring the forty days Jesus spent in the desert praying and fighting off temptations as told in the books of Matthew, Mark, and Luke in the Bible. We are currently finishing up the second full week of Lent.

Catholics traditionally give up certain things that we enjoy during Lent, as you might give up unhealthy foods if you’re training to run a marathon, or give up watching late-night TV the week before a big test. These self-imposed restrictions help us turn our minds and hearts toward Easter; they help us “get healthy” spiritually.

For children, the idea of “giving something up for Lent” has predictable and often hilarious results. Are there any Catholic children who haven’t joked (in all seriousness!) that they’ve decided to give up school this Lent? Or homework? Or doing their chores? Each child thinks they’re the first one to think of this, and each child just about dies laughing over it. My four-year-old understands more this year than he ever has, and thinks his brothers’ crazy ideas about giving up eating vegetables and giving up going to bed early on school nights are the funniest things he’s ever heard.

Then there are the children who take the idea of Lenten sacrifice very seriously and try to make it as hard as possible for themselves and tell me that they’ve decided to give up their very favorite things. Except, when your very favorite thing is milk, I’m not going to let you give it up! Nor when you want to give up reading, or going outside to play. Even things like “giving up movie night with the family” aren’t okay with me — things that are good and healthy for the mind, body, soul, and relationships are, in general, not included in the list of the things that children should be giving up, as far as I’m concerned.

As long as they don’t want to give up good and healthy things, though, I don’t generally mind if my big boys decide to make Lent extra Lent-y. I’ve had boys decide to give up all TV, for example, and video games, and non-school computer-related stuff, and it’s definitely hard for them! I admire their struggle and find it inspiring for my own efforts. It’s always interesting, though, that with these hard decisions comes extra considerations: if you give up TV, does that mean *all* the things that are on the TV screen? Or just shows on cable? What about movies? Does Netflix count? What about YouTube? Can you sit in the room with the TV on as long as you don’t look at it? (My four-year-old, after he’d finished guffawing at his brothers’ jokey ideas, told me he’s giving up TV. I told him *absolutely not*.)

Even when the kids give up the “normal” things for Lent, I still find them tweaking their chosen sacrifices throughout the first week or two. Does giving up dessert mean all dessert? Or maybe just candy? (They always seem to figure this out just at dessert time — especially when cookies are on the menu.) But then, does giving up candy mean all candy? Or maybe the boy really meant non-peanut butter candy? (This is always figured out just when Reese’s are being passed out, amazing.) But after the first week or two, things settle, and the boys are resigned to the fact that there will be times over the next few weeks until Easter that their chosen sacrifice is extra hard — which is the whole point.

Then there are Sundays, which are a little bit controversial. Some people believe that Sundays are not technically a part of Lent; as a result, many Catholics will have what they gave up for Lent on Sundays. Others, however, find this to be terrible! Weak! In this, there is no teaching (other than the Sundays of Lent are, indeed, part of Lent), so to each his or her own. But I will tell you that in my house we’ve always done “the Sunday thing” — had the thing we gave up on Sundays — so on Sundays there is a lot of “I can have dessert today, whee!!” and trying to finagle extra dessert because of it: “But I haven’t been able to have any dessert all week and everyone else could!” Or, “I can play video games today, so I should have the first turn, since everyone else was able to play yesterday and Friday!”

I don’t really mind the search for loopholes and the tweaks — it’s so human! And I so appreciate the willingness to grapple with this hard thing and find a way to do it, rather than refuse to do it at all. It’s like that saying attributed to G.K. Chesterton: “If a thing is worth doing, it is worth doing poorly.” And in doing it, over and over, one will get better at it! Or so I remind myself as I break up yet another squabble over whether or not it’s unfair to have the TV on at all when one member of our household has given it up for Lent. Sigh.

Kate and her husband have seven sons ages 18, 16, 14, 13, 11, 8, and 4. Email her at kmtowne23@gmail.com.

The Three O’s of Eye Care

Quite often, when I am introduced to someone they ask, “What do you do for a living?” and I reply, “I am an Optician and practice owner.”

“Oh, so you’re an eye doctor?” they will say.

“No, I own a practice and I employ eye doctors, specifically Optometrists.”

Next they will ask, “I have never understood what the differences are between Optometrists and Ophthalmologists?”

It is then that I proceed to explain the importance of all three professions when it comes to preserving sight and looking great!

Medical Device and  Fashion Advice

In NYS Opticians are licensed to interpret and fit a prescription pair of glasses and many Opticians also become contact lens certified which allows them to interpret a prescription, fit and prescribe contact lenses. The Optician will look at your Rx and at your face, discuss your uses and lifestyle and then make recommendations about which frames will best accommodate your prescription on your face and work with your use of them, (i.e. If you are typically very rough with your belongings, they may suggest a frame made of surgical steel or titanium). The Optician is typically the most knowledgeable in the office about lens materials and treatments that will benefit each Rx. Opticianry it is one of the only professions that combines “medical device with fashion advice.” They will ensure that you end up with glasses that help you to see better and look great!

Primary Care Physician

Optometrists are the Primary Care Physician for your eyes. A comprehensive medical eye exam by a thorough optometrist will give the doctor a lot of information about your overall health. The eye is the only organ of the human body that a doctor can actually witness blood flow in real time just by looking into the back of your eyes. The doctor can detect hypertension, diabetes, macular degeneration, cataracts and several other more serious conditions and diseases.

Optometrists are the professional experts at determining glasses and contact lens prescriptions. After four years of college they go on to four more years of Optometry school where they spend the bulk of their education on the eyes as an organ, teaming and tracking, convergence, eye health including disease diagnosis, treatment and refraction.

If your Optometrist diagnoses a condition or disease that requires further treatment, they will refer you to the Ophthalmologist who specializes in that condition or disease. For example, if your eye doctor diagnoses you with a cataract, they will send you to an Ophthalmologist who specializes in cataract surgery. If you have a retinal diagnosis, your will be sent to the Ophthalmologist who specializes in treating retinal diseases.

Medical Surgeon

Ophthalmologists are medical doctors who go on to specialize in the diagnosis and treatment of eye diseases and perform eye surgery. Many Ophthalmolgists specialize further by treating only specific diseases and are experts in retinal issues or glaucoma or cataract surgery. Some MDs specialize further practice as neuro-ophthalmologists or pediatric surgeons.

In order to obtain care from the best MD for your eyes and your specific treatment needs, your Optometrist is the expert at referring you. Based on their knowledge and experience with the MDs in your local area, they will know where to send you. They will also know when it may be best to seek treatment outside of the area in extreme cases where treatment by a local expert for your condition is not available.

Nothing replaces a comprehensive annual eye exam by your trusted Optometrist when it comes to preserving your eye-health. The perfect combination is a knowledgeable Optician to interpret and fit you to prescription eyewear that both helps you to “see” optimally with the latest in digital lens design technology paired with a frame that is tailored to you so you leave “looking” great!

Finally, an exceptional pair of glasses does not have to break the bank! Look for sales and deals at your local optical businesses. Many offer seasonal and on-going sales and promotions as well as budget packages. The services and high- end products offered by your local businesses typically far exceed those found at “supposed” discount chain stores and on-line vendors. 

Susan Halstead is a NYS and Nationally Licensed Optician who has been at Family Vision Care Center for 30 years. Susan is both the Optician and Owner and can be reached for questions or comments at 518-584-6111 or Susan@familyvisioncarecenter.com

How to Improve Your Posture

Posture is the position in which we hold our bodies while standing, sitting, or lying down. Healthy posture is the correct alignment of body parts supported by the right amount of muscle tension against gravity. Our everyday movements and activities can affect this alignment and put stress on joints and muscles, sometimes resulting in pain and potentially permanent damage if left unchecked over time. Utilizing proper ergonomic and movement strategies can help prevent these problems.

Why is posture important?

We do not consciously maintain our posture; instead, certain muscles normally do it for us. Several muscle groups, including the hamstrings and large back muscles, are critically important in maintaining our posture. These postural muscles, along with others, when functioning properly, prevent the forces of gravity from pushing us over forward. Postural muscles also help maintain our balance while we move.

A healthy posture helps us stand, walk, sit, and lie in positions that place the least strain on supporting muscles and ligaments during movement and weight-bearing activities. Correct posture also:

• Helps us keep bones and joints in correct alignment so that our muscles are used correctly, decreasing the abnormal wearing of joint surfaces that could result in degenerative arthritis and joint pain.

• Reduces the stress on the ligaments holding the spinal joints together, minimizing the likelihood of injury.

 • Allows muscles to work more efficiently, allowing the body to use less energy and, therefore, preventing muscle fatigue.

• Helps prevent muscle strain, overuse disorders, and even back and muscular pain.

What can affect my posture?

To maintain healthy posture, you need to have adequate and balanced muscle flexibility and strength, normal joint motion in the spine, as well as postural muscles that are balanced on both sides of the spine. In addition, you must recognize your postural and movement habits at home and in the workplace and work to improve them, if necessary.

Poor posture and poor movement patterns can lead to excessive strain on our postural muscles and may even cause them to relax when held in certain positions for long periods of time. You can typically see this in people who bend forward at the waist for a prolonged time in the workplace. Their postural muscles are more prone to injury and back pain.

Several contributing factors can put a strain on posture. The most common are stress, obesity, pregnancy, weak postural muscles, abnormally tight muscles, and high-heeled shoes. In addition, decreased flexibility, a poor work environment, incorrect working posture, and unhealthy sitting and standing habits can also contribute to poor body positioning, leading to pain or overuse injuries in some cases.

Can I improve my posture?

Awareness of your posture, along with an understanding of healthy movement strategies, will help you consciously correct yourself. Your doctor of chiropractic can further assist you by recommending exercises to strengthen your core postural muscles. He or she can also assist you with choosing better postures during your work or recreational activities, reducing your risk of injury.

Ergonomic Considerations

How we hold and move our bodies every day, even while doing something as simple as sitting at a desk or standing in place, can have an impact on our posture. Below are some general ergonomic tips to help reduce the chance of pain and injuries:

While sitting at a desk:

• Keep your feet on the floor or on a footrest, if they don’t reach the floor.

• Don’t cross your legs. Your ankles should be directly in front of your knees.

• Keep a small gap between the back of your knees and the front of your seat.

• Your knees should be at or below the level of your hips.

• Adjust the backrest of your chair to support your low- and mid-back or use a back support.

• Relax your shoulders and keep your forearms parallel to the ground.

• Avoid sitting in the same position for long periods of time. Take breaks and move your body.

When standing:

• Bear your weight primarily on the balls of your feet.

• Keep your knees slightly bent.

• Keep your feet about shoulder-width apart.

 • Let your arms hang naturally down the sides of the body.

• Stand straight and tall with your shoulders pulled down and backward.

• Tuck your stomach in.

• Keep your head level. Your earlobes should be in line with your shoulders. Do not push your head forward, backward, or to the side.

• Shift your weight from your toes to your heels, or one foot to the other, if you must stand for a long time.

When lying down in bed:

• Find the mattress that is right for you. While a firm mattress is generally recommended, some people find that softer mattresses reduce their back pain. Your individual comfort should guide your choice.

• Choose the right pillow, too. Special pillows are available to help with postural problems resulting from poor sleeping positions.

• Avoid sleeping on your stomach.

• Sleep on your side or back, which is often helpful for back pain. If you sleep on your side, place a pillow between your legs. If you sleep on your back, keep a pillow under your knees.

Dr. Matt Smith has been a Chiropractor in Saratoga Springs for 36 years. He and his daughter Dr. Kevy Smith Minogue can be reached at 518-587-2064 or at MySaratogaChiropractor.com.

Saratoga Senior Center Calendar – March Events at the Center! 

PaL’s Meals To Go 

Prepared meals you just have to heat up. Pick up any time Monday or Tuesday between 9:30 & 3:30 pm. 

Monday, March 13 & Tuesday, March 14: Shepherd’s Pie 

Monday, March 27 & Tuesday, March 28: Eggplant Parm with Ziti

Call or stop by the front desk to order. Orders must be placed by noon the Friday prior. $12 per dinner.

BROOKS BBQ 

Tuesday, March 21 • 3:30-6 p.m.

Choose from Chicken Dinner $14 or Rib Dinner $20. Dinners include baked potato, coleslaw & dinner roll. Drive through pick up, skip finding a parking space and getting out of the car! Bulk Orders Delivery available for orders of 10 or more. We will deliver to your home or office! Day of sales will be available, while they last. Call the Center to order: 518-584-1621

Live Irish Music with Tim O’Shea & Friends 

Thursday, March 23 • 1 p.m. 

Experience the music of Ireland’s west coast with a master of the genre, Killarney’s own Tim O’Shea! His musical repertoire draws from the dance music of his native Sliabh Luachra and West Kerry folk traditions. Scones and coffee served. Please sign up, $5.

Long Term Planning Expo

Friday, March 24 • 1-3 p.m.

Hear brief presentations and meet with representatives from Advisors Insurance Brokers, Burke Funeral Home, Herzog Law Firm, KeyBank, and more. Get updates on the latest in long term planning from estate planning, mortgages financial planning and more. Refreshments served. Sponsored by Highmark Northeastern New York. 

SilverSneakers and Renew Active Expo 

Monday, March 27 • 1-3 p.m.

How can you get free classes at the Senior Center and the YMCA? Meet with Medicare Advantage representatives about SilverSneakers and Renew Active eligibility. Meet with Aetna, CDPHP, High- mark, Humana and WellCare. Sponsored by Key Bank.

50th Anniversary of Secretariat’s Triple Crown Win presented by Brien Bouyea, National Racing Museum

Thursday, March 30 • 2:30 p.m. 

Secretariat is a superior athlete with unmatched celebrity status. In 1973, Secretariat swept the Kentucky Derby, Preakness Stakes, and Belmont Stakes to claim the coveted Triple Crown, breaking the 25-year drought and setting track records that stand to this day. Learn more about Secretariat’s award-winning career. Please sign up, $10

ONE-DAY BUS TRIPS
Open to the public

Supported by a Lend-A-Hand grant from the Adirondack Trust Company Community Fund

Corning Museum of Glass 

Wednesday, April 19 | Explore this amazing glass museum right in our own backyard. Optional sandblasting workshop available, must pre-register. Lunch on your own at the museum cafe. After the museum, wander around the quaint town of Corning for the afternoon. Sponsored by Highmark Northeaster New York Member Price $80. Non-member price $105. Optional sandblasting workshop- add $14.

New York City – A Day on Your Own!
Wednesday, May 24 | Enjoy a beautiful spring day in Manhattan! Spring in New York is the best time of the year. It’s warmer and everything is blooming.  Sponsored by CDPHP. Member Price $60. Non-member price $85

Mystic, CT  

Tuesday, July 18 | Mystic is a quintessential Connecticut coastal town that is historic, charming, and bustling with tourists. Step on the deck of the Charles Morgan, the last of the American mighty whaling fleet, and check out what lives in the waters around Mystic at the Mystic Aquarium and more. Member Price $60. Non-member price $85

West Point Tour and Brotherhood Winery 

Thursday, September 21 | Guided tour of the story of West Point, its role in the Revolution, its famous history, and more. Lunch and wine tasting at Brotherhood Winery. Member Price TBD. Non-member price TBD

5 Williams Street, Saratoga Springs • 518-584-1621

Scoop, There It Is – Farmer’s Daughters’ Opens for the Season!

Photo provided.

At the end of the rainbow, mounds of golden fried delights and creamy sweet treasures await. 

As luck would have it, one of the region’s most highly-anticipated annual spring traditions falls on St. Patrick’s Day this year. On March 17th, the Farmer’s Daughters’ Drive-In will be opening for the 2023 season and celebrating with a $2.23 ice cream special. Open seven days a week from 11 am until 9 pm through the end of October, their first 50 customers will also receive a coupon for a free ice cream redeemable during their next visit. 

“So many people just love Farmer’s Daughters and everything about it – there’s so many great memories here,” said owner Annette Osher.

“I love the first day,” added manager Jonelle Reich. “You bite into that ice cream and no matter the weather, it seems like the sun comes out, the birds are chirping, and summertime is here!”

Lucky Lepre-cones

After loading up on the holiday’s usual fare, shamrock your world with Farmer’s Daughters’ 35 varieties of hard ice cream. Go green with decadent Mint Oreo Fudge, and watch as the kids delight in fun flavors like Cookie Brownie Blast, Cookie Monster, Garbage Pail, Banana Cream Pie, and Peanut Butter & Jelly. 

Get in on the magic with the Unicorn (or any of their nine soft-serve ice cream options).  There’s fresh fruit, candy, and decadent fudge flowing over sundaes, funnel cake covered in mounds of whipped cream, and(milk)shakes things up with chunky flurries. 

If your holiday pursuit of happiness leaves you hankering for sustenance in the form of solid food, Farmer’s Daughters’ dinners (which come with fries and a salad for less than $20 each) have you covered. 

Devourer chicken wings, hot dogs, sandwiches, and handmade single- or double-100% top sirloin beef burgers. Feeling adventurous? Try their massive Overloaded Burger (topped with cheese, bacon, onion rings, BBQ sauce, and a beefy Michigan meat sauce that’s so good people buy it buy the pint and pour it over everything!)

The Inside Scoop

An iconic piece of local roadside drive-in history, Farmer’s Daughters’ was built in 1969 and still maintains its distinctive country charm. There is plenty of parking, four walk-up windows, an indoor dining room that seats 75, and 35 picnic tables under two outdoor pavilions. 

“The building’s shell is older, but everything inside is updated,” explains Annette, who purchased the property in 2006. 

With 2022 in the books as their most successful season to date, the goal now is to top it. Annette has invested in new air conditioning and heating units for comfortable temperatures earlier and later into the season. There is a new orange/vanilla soft serve machine, and two new non-dairy machines to keep up with the demand for cow-free creaminess.

There are gluten free cones available and all of their vegan ice cream, dole whip, and almond milk swirl options are made with big chunks of delicious goodies -just like their hard ice cream flavors. 

Pistachio has been added to the menu, as has mango and chocolate creamy ices. 

“In the middle of summer, when it’s so hot and you need something cold, it’s the spot-hitter,” said Jonelle.

Using only top-of-the-line ingredients, Farmer’s Daughters’ takes pride in their cleanliness and food allergy protocols. 

“It’s a big deal and people tell me, ‘This is the only place I come because I feel safe here’,” said Annette. 

The Cream of the Crop

Families have been coming to Farmer’s Daughters’ for generations but Schuylerville’s recent growth has led to more people finding it for the first time, which is exciting, too, said Jonelle. 

While spring and summer holidays (like Mother’s Day) have always drawn in the crowds, new events including last year’s Trunk & Treat are also catching on quickly. With 30 seasonal employees, Farmer’s Daughters’ is ready for buses and to host larger groups. Like so many others, Annette’s three sons; Billy, Taylor, and Rion, grew up working at Farmer’s Daughters’ and are now prospering young adults. 

After 16 years in the business, Annette still lights up when those who worked there in high school, get married, have children, and return with them to share what great memories they made here.  

 “I feel lucky to have customers who are so loyal, such a faithful staff, and a community that is so great and keeps coming back,” said Annette. 

Find the Farmer’s Daughters’ Drive-In, 882 NY RT 29, full menu online at  farmersdaughtersdrivein.com 

Skip the line by pre-ordering for dine-in or take-out by calling 518-584-8562. Credit cards are accepted. Order ice cream cakes 24-48 hours in advance; specialty pies are available for same day pickup. Follow Farmer’s Daughters’ Drive-In on Facebook and Instagram for updates and specials. 

Expect Continued Market Volatility 

In the past few months, the markets have traded within a very narrow range. For much of it, the overriding factor has been the likelihood of more interest rate increases on the part of the Fed. Markets have been hoping for a more immediate pause in rate hikes. Some, with opaquely rose-colored glasses, even thinking a rate cut may be in the cards! The data, however, and Fedspeak, have provided indications to the contrary. 

The labor markets continue to improve and, despite layoff in the tech sector specifically, the unemployment rates remains at historic lows. For a Fed that is trying to slow the economy, this is not evidence its efforts have been effective.

Inflation remains high, at both the producer and retail levels. We track the PPI (Producer Price Index), which is a measure of the cost of production, which necessarily flows down to consumers at the retail level, and is measured in the CPI (Consumer Price Index). Most of the Fed’s efforts have been around bringing these figures down from their 2022 highs. 

While the Fed has garnered marginal success to these ends, inflation remains sticky, which fuels concern across markets. 

The Fed has a stated goal of bringing inflation down to 2%, which is historically a bit ridiculous and, frankly, arbitrary. Core inflation has run at an average of 3.3% since 1960, according to Ycharts.com. The Fed has boxed itself in to a goal that is 60% lower than should be reasonably be expected. 

Recent Fedspeak has hinted at the possibility of a more prolonged period of increases, though at a less dramatic rate. 

One thinks that the Fed must understand, at least tacitly, that 2% is untenable and, in order to achieve it in the near term, would require economy-crushing interest rates. It seems reasonable to expect, then, that a target rate of 3% would satisfy the Fed, while allowing the economy the possibility of avoiding a deep recession. 

We think the Fed continues to raise rates, before pausing. So many of the economic indicators that the Fed and other economists rely on are lagging indicators. For example, people don’t lose their jobs until after companies are negatively impacted by the economy; home sales may not slow until after interest rates have made their way through the economy; increase in producer prices are then passed down to consumers.

We expect the Fed to eventually take a breather to give the economy time to catch up. With so much action on its part in the last year, many of the results are yet to be felt. It makes sense to see how the medicine is working, before upping the dosage, so as not to kill the patient.

Continue to work closely with your Certified Financial Planner® professional, to help ensure that your wealth management strategy accurately reflects changes in the markets, and changes in your life. While we can’t say exactly when, we do believe conditions will normalize.

Stephen Kyne, CFP® is a Partner at Sterling Manor Financial in Saratoga Springs and Rhinebeck. Securities offered through Cadaret, Grant & Co., Inc. Member FINRA/SIPC. Advisory services offered through Sterling Manor Financial, LLC, an SEC registered investment advisor or Cadaret Grant & Co., Inc. Sterling Manor Financial and Cadaret, Grant are separate entities.

Protecting the Family Home Against Nursing Home Costs – Preserving Your Most Important Asset

I am often asked about options to protect the family home in the event a client has to enter a nursing home.  The possibility that your home, a precious and treasured asset, might have to be sold to pay for nursing home care, is an outcome most people would prefer to avoid.

There are several options to consider when planning to protect the family home, and they are described below.  In each of these cases, we will consider the ultimate beneficiaries of the home to be the client’s children, which is most often the case.  If you have different beneficiaries in mind, i.e. friends, nephews or nieces, the same rules will generally apply.

In considering the following options, it is important to understand that in each case, the house must be transferred more than five years before you apply for Medicaid to pay for nursing home care.  This five-year period is known as “the look back period”.  It is the period of time that the Medicaid authorities will review when determining if you have made any gifts for which they may penalize you.  No penalties will be imposed for any gifts made more than five years before a Medicaid application.

Option One:  Deeding your house outright

You can simply deed your house outright to your child.  In that case, your child would own the home and you have no further legal rights to it.  You would lose your STAR exemption for school taxes.  In addition, if your child later sells the home, they may have to pay capital gains taxes because they would be using your cost basis in the property, which may be significantly lower than the price they sell it for.

If your child owns the house you live in, there could also be other significant problems that develop.  If you and your child become estranged, there would likely be nothing to stop your child from selling the home and forcing you to leave.  You could potentially have an agreement or lease to protect against this possibility, but even with such protections, you may end up in expensive litigation.  In addition, since your child owns the home, it would be subject to potential liens by your child’s creditors.  If your child got into financial difficulty, such a lien from a child’s creditor could potentially result in a foreclosure on the home.  

Option Two:  Deeding your house subject to a retained life estate 

You can deed your house to your child, subject to a reserved life estate in you.  In this case, your child will have what is known as a “remainder interest”.  This will guarantee that you have the legal right to remain in the home for as long as you live.  You will also retain your STAR exemption.  In addition, your child will receive a “step up” in basis equal to the home’s value at your death, thereby potentially reducing capital gains taxes if they later sell it.  There is also no need for any estate proceeding to occur in Surrogates Court to pass the property over to your child upon your death.  The transfer will occur automatically, due to your passing.  

Despite these advantages, there are also disadvantages.  One such disadvantage is that you would need your child’s cooperation if you wanted to sell the home during your lifetime.  If a sale did occur, you would need to receive a percentage of the sale proceeds based on your life expectancy.  This could result in you having too many assets to qualify for Medicaid at a future date.  

Option Three:  Deeding your house to an Irrevocable Trust

If you deed your house to a properly drafted Irrevocable trust, you will retain your STAR exemption and your child will receive a “step up” in basis at your passing.  The trust could also be drafted to ensure that the home is safe from the claims of creditors of your children, so that you can avoid the potential pitfalls described in option one.  In addition, the trust could include a provision known as a limited power of appointment.  This provision would allow you to change the beneficiaries of the trust at a future time.  It may be advisable to do so, if one of your beneficiaries is experiencing financial difficulties.  As with option two, you would also not need to have an estate proceeding after your death in order to pass the property over to your child.     

The trustee of the trust could sell the home during your lifetime, without the concern that part of the sale proceeds would flow to you.  The sale proceeds would remain in the trust and could be used to invest in assets which produce income for you.  In the alternative, the sale proceeds could be used to purchase a new home for you, such as a retirement home in another state.  Either way, the proceeds would remain in the trust, and you would be protected from having those assets affect your Medicaid eligibility.  It is extraordinarily important that if the trust sells the house, that none of the sale proceeds come out directly to you.  In order to ensure that does not occur, it would be wise to consult with an elder law attorney prior to the closing on the sale.

While every situation is different, the transfer of a home to an irrevocable trust is generally the best option for the preservation of the asset.  Although, in some limited instances, a deed with reserved life estate may be a sensible choice.  In general, it is rare that an outright transfer would be a favored option.  For an evaluation of what option is best, you should contact an experienced elder law attorney in your area.

Matthew J. Dorsey, Esq. is a Senior Partner with O’Connell and Aronowitz, 1 Court Street, Saratoga Springs. Over his twenty-six years of practice, he has focused on the areas of elder law, estate planning, and estate administration. Mr. Dorsey can be reached at 518-584-5205, mdorsey@oalaw.com and www.oalaw.com

What’s Two Weeks? (Fourteen Years Later)

Years ago — nearly fourteen years ago — I wrote an article for this column called “What’s Two Weeks?” It was so long ago, in fact, that the issue isn’t available online and my own copy is buried somewhere in my desk area, so I’m going on memory here, but what I remember is that I wrote about the idea that there seems to be something about the span of two weeks being the amount of time one needs to transition from one phase to another. Specifically, I wrote about potty training.

That article was inspired by a conversation I’d had with a friend who’d gone through pottying with two or three of her own kids by that point, and how she told me back then (back when I was thinking about introducing the potty to my oldest) that when she felt like it was the right time, she basically just hunkered down at home with the potty kid and prepared for two weeks of accidents and frustrations. In her experience, after two weeks it was pretty much smooth sailing.

I really latched onto this two-week idea! Even though on the one hand, I felt like, “Ohmygosh TWO WEEKS?? I will never survive this,” I could also see that, in the grand scheme of things, two weeks is nothing! 

Two weeks turned out to *not* be my boys’ timeline for the potty-learning phase, but I have thought of that two-week idea so many times since then — even if it isn’t exactly accurate, it does point to the facts that (1) it takes time to adjust to new things and circumstances, and (2) it’s okay (and necessary) to be patient with yourself. 

Probably the most frequent example I have of this is when school finishes for the summer. Even though we’re all wildly excited that school is done, it takes some time to get into the summer rhythm. The well-oiled machine that we become by June every year comes grinding to a halt, and it takes some time to get the summer machine fired up. During that time, that same lack of schedule or plan for the day or week that I so looked forward to during the school year starts to frustrate me as the house falls apart, laundry gets backed up, and kids start to feel bored. But after just a short time, it all shakes out and we get into our summer groove and life is good! (Until school starts back up and we go through the whole process again. In that case, I always feel like we’re not truly back into solid and smooth school mode until Thanksgiving.)

I work on a semester schedule, so I have large chunks of time off between Christmas and the end of January and again from May until the summer session in July, and for most of August. Each time the semester ends, I feel like I sit on the couch for days trying to figure out what I’m supposed to be doing. When the semester starts back up again, I feel like everything is out of control until I settle back into my work rhythm. 

I saw it happen with my oldest this Christmas break as well. He was away at college for the fall semester, and even though he did come home some weekends, coming home for the five-week Christmas break was an adjustment! Going from classes during the semester to work during break, from one roommate at school to two at home, from independence to everyone in your business isn’t easy! And I’m sure there was an adjustment for him again when he went back for the spring semester.

I keep thinking of the phrase, “Give yourself grace,” which I quite like — it’s gentle and patient and often soothes me when I’m feeling scattered and unmoored by the end of one schedule or phase and the beginning of another. I thought of it when I read the recent news that tidying-maven Marie Kondo doesn’t tidy so much now that she has children — I don’t know a lot about her, but when I heard that I thought, “She’s giving herself grace,” adjusting to the realities of her current situation. There’s definitely something to be said for managing and relaxing expectations during challenging times!

It’s funny that this is what was on my mind this month, as this month marks one year since my youngest last wore diapers — the last time I thought about “two weeks” in regards to potty training. (It wasn’t two weeks for him!) Now I’m thinking about it in terms of my job and my son’s college experience and this coming summer, when my no. 2 will have his senior photo taken and prepare to apply to college. 

Oh man. I’m pretty sure two weeks isn’t going to be nearly long enough for this mama to adjust to my next boy moving on.

Kate and her husband have seven sons ages 18, 16, 14, 12, 11, 8, and 4. Email her at kmtowne23@gmail.com.

Massage for Preventative Health Care

Research has shown that massage is an essential tool to ease stress, and its many health benefits might just have you rethinking its role in preventative health care.

While stress can certainly wreak havoc on our health, not all stress is bad for you.There are two primary types of stress: Eustress and distress. These stress related terms originated in the late 1930’s by Hans Seyle, an endocrinologist and founder of Stress Theory. Seyle said eustress is a normal or positive stress response that energizes and motivates us to make a change or to get things done. He deemed distress as a negative stress response that leads us to feel overwhelmed and anxious, which he found adversely affected our biochemistry and contributed to various unwanted physical symptoms.

Hans Seyle stated that “Every stress leaves an indelible scar, and the organism pays for its survival after a stressful situation by becoming a little older.”

This is because when we are stressed our brain responds via our hypothalamus and pituitary glands, triggering our adrenal glands to secrete the steroid hormone ‘cortisol’, widely known as the “stress hormone”. While cortisol plays an important role in regulating our body’s response to stress, long-term activation of the stress response and the overexposure to cortisol and other stress related hormones, have been shown to disrupt almost all of your body’s processes. This has been said to lead to issues with persistent high blood sugar, cause fluctuations in blood pressure, disrupt the sleep-wake cycle and lead to insomnia, slow down digestion and increase inflammation in the body, which further weakens the immune system. It also leads to DNA damage causing us to age faster, and lowers our brain’s 5-HT function, which has been shown to cause depression.

It’s plain to see that long-term stress and anxiety can be detrimental for both your physical and mental health. Conversely, when we lower our stress and cortisol levels, then we can induce a relaxed state. Enter massage, as a simple solution to cope, ease stress and promote health and well-being.

Massage is a wonderful way to relax the mind, body and soul. Massage stimulates the parasympathetic nervous system and helps to reduce stress hormones thereby returning the body to a more balanced state. Massage also stimulates the release of serotonin, a calming hormone that regulates mood, reduces irritability and promotes deep sleep. Therapeutic massage releases dopamine, dubbed the ‘happy’ hormone, which triggers inspiration, enthusiasm and joy. Let’s not forget the endorphins. Massage releases much needed endorphins that are known to reduce pain, contribute to an overall sense of wellbeing, reduce swelling and speed up healing.

In addition, massage improves circulation and stimulates blood flow, which allows our muscles and organs to heal and function properly. This helps to relieve muscle tension and supports overall health and well-being.

Finally, another significant benefit of massage is its large contribution to the immune system. When we receive massage, the lymphatic system (responsible for fighting infection) is stimulated. It was found in a recent study, that after a 45 minute massage session, participants had increased levels of lymphocytes (white blood cells, which play a significant role in defending the body against disease). Further, their cytokines (molecules known to be associated with inflammation) were markedly decreased. Overall, massage aids as a booster to the immune system.

Summing it All Up

Massage has been found to be helpful for anxiety, digestive disorders, headaches and insomnia related to stress. Plus massage calms the central nervous system, lowers cortisol levels, increases circulation, lowers blood pressure, eases chronic pain, facilitates the removal of toxins from the body, and helps to speed recovery from injury.

When you consider all the many incredible benefits of massage, it makes sense to incorporate it as part of a preventative care routine to promote optimal health and wellness. My parting message on massage is this: Self-care is self-love, an apropos notion for the month of February.

Franesa Pyle is the owner and founder of Botanicals Spa, a nature-inspired wellness spa located in Saratoga Springs. She is the creator behind organic skin care brands; Spa City Organics and Apothic Timeless Skincare. Ms. Pyle lives in Saratoga Springs with her husband Dr. Bert W. Pyle, III, and their two children. She loves all things health and self care related, spending time in nature, gardening, hobby farming, and DIY crafting.