Seniors

From left, Assemblyman Andrew Raia (R-East Northport), Councilwoman Valerie Cartright (D-Port Jefferson Station), Leg. Kara Hahn (D-Setauket), Ken Kashansky, Sen. Ken LaValle (R-Port Jefferson), Fred S. Sganga, Tom DiNapoli (D) and Sen. John Flanagan (R-East Northport) look on as U.S. Army Vietnam veteran and resident of Unit 3C Joe Rohan cuts the ribbon. Photo by Doreen Guma
Ribbon cutting ceremony officially opens first renovated residential unit

The Long Island State Veterans Home in Stony Brook recently celebrated a milestone in Operation Rejuvenation, a project that will help renovate the interior of the existing facility, with the opening of its first renovated residential unit, 3C. The event was celebrated with a ribbon cutting on Aug. 25.

The project was made possible by a $12.5 million VA Construction Grant, one of the oldest partnerships between the federal government and the states. Each year, through the support of Congressman Lee Zeldin (R-Shirley), the federal government allocates approximately $85 million to fund the State Veterans Home Construction Grant Program. Through this initiative, individual states compete for funding that must be used to either construct or renovate designated state veterans facilities that provide skilled nursing or domiciliary care.

The federal government appropriates 65 percent of the construction costs provided that each state makes a commitment of 35 percent in state matching funds, for which New York State Senator John Flanagan has been instrumental in helping the LISVH secure.

The newly renovated nursing units include a modernized and open dining space, an accessible nourishment station, a complete nursing station redesign and fully renovated living spaces for residents. This project included the installation of energy-efficient LED lighting, LED televisions and new personal furnishings that our nation’s heroes will be proud to call home.

“The Long Island State Veterans Home has always made a commitment to be the premiere provider for long-term care services to our nation’s heroes,” said Fred S. Sganga, executive director of the Long Island State Veterans Home. “Operation Rejuvenation will assure that our frail, elderly veterans are living in the finest facility in the country. We are really excited about this project because it represents the recommitment of Stony Brook University to Long Island’s veterans and their families.”

“Our veterans were willing to put themselves in harm’s way in order to protect our freedom and way of life,” said Zeldin. “We owe it to them to make sure the facilities that care for our veterans are in the best condition possible to meet their needs. The work being done at the Long Island State Veterans Home will help accomplish that goal, and I commend the leadership and staff for undertaking this project.”

“Our nation owes a debt of gratitude to those who have protected our way of life and cherished freedoms,” said Flanagan. “One way we can say ‘thank you’ to them is by making sure these brave men and women have a comfortable living environment. The Long Island State Veterans Home has been a great resource for our veterans and their families and this project will help ensure that it continues to be a place that our heroes are proud to call home,” he said.

A credit shelter trust is a marital trust that allows you to a voice having the same property taxed twice.

By Linda Toga

Linda Toga

THE FACTS: I had my will prepared years ago. The estate tax exclusion amount at the time was considerably less than it is now, so my will contains a provision that directs my executor to create a credit shelter trust to avoid estate taxes. The trust provision mandates that the credit shelter trust be funded with assets equal in value to the estate tax exemption amount in effect at the time of my death.

THE QUESTION: A friend told me the credit shelter trust language that is currently included in my will could result in only a small part of my estate, if any, passing directly to my wife. Is he correct?

THE ANSWER: Without knowing the size of your estate, it is impossible to say how much of your estate might pass directly to your spouse upon your death. That being said, your friend is correct.

Credit shelter trusts are designed to avoid estate tax, but tax avoidance is generally not an issue when the first spouse dies because the surviving spouse is most often the beneficiary of the deceased spouse’s estate.

Regardless of the value of the assets that pass to a surviving spouse as sole beneficiary, there will be no estate tax liability on the first death because both the federal and New York State tax codes include an unlimited marital deduction. That means the assets passing to the surviving spouse pass estate tax free.

In contrast, the value of assets passing to a nonspouse may trigger estate tax. That is why estate tax can become a problem when the surviving spouse dies. If the value of the surviving spouse’s estate exceeds the applicable estate tax exemption amount then in effect, estate tax will be due. This year the federal estate tax exemption is currently at $5.49 million and the New York State exclusion amount is currently at $5.25 million.

If your will directs that assets equal in value to the current estate tax exemption amount go into the credit shelter trust, over $5.2 million of your probate estate must be used to fund the trust. The actual dollar amount will depend on whether your will references the federal or the New York State exemption/exclusion amount. If the value of your assets does not exceed the exemption amount, the only assets passing directly to your spouse will be jointly held assets and assets on which she is a named beneficiary. Assets that are used to fund the trust will be available to your spouse under certain conditions. She will not have unfettered access to those funds.

Credit shelter trusts were very popular with my clients when the estate tax exclusion amounts were significantly smaller. In 2008, for example, when the federal estate tax exemption was $2 million, clients with estates valued at $3 to $4 million felt comfortable funding a credit shelter trust since the surviving spouse would still receive $1 to $2 million outright. However, since the exclusion amount has increased at a much faster rate than the value of most people’s estates, the language in many credit shelter trusts has become a problem.

One way to address the problem is to have a new will prepared that does not direct your executor to create a credit shelter trust. However, if you are concerned about estate tax liability, another option is to have a new will prepared that includes language limiting the value of the assets that must be used to fund a credit shelter trust. That way you can be sure that there are sufficient assets passing to your spouse outright.

A third option is to include a discretionary marital trust in your will, rather than a credit shelter trust. A disclaimer trust, for example, can be used by married couples to avoid estate taxes and has the advantage of allowing the surviving spouse to decide how much money will go into the trust. If the surviving spouse feels comfortable doing so, she can have the trust funded with assets equal in value to the applicable exclusion amount. However, she can also decide to fund the trust with a lesser amount or to not to fund the trust at all.

The surviving spouse has nine months to decide whether it makes sense taxwise to fund the trust. Because of the flexibility offered by disclaimer trusts, and the ability to essentially do post-mortem planning, many people whose estates are valued at over the exclusion amount find disclaimer trusts a good option. To figure out what would be best for you, you should discuss your situation with an experienced estate planning attorney.

Linda M. Toga, Esq. provides legal services in the areas of estate planning, probate, estate administration, litigation, wills, trusts, small business services and real estate from her East Setauket office.

Blueprints would mirror design for similar housing in Rocky Point

Mark Baisch discusses his proposal for senior homes in Miller Place at the July 10 Sound Beach Civic Association meeting. Photo by Ginny Drews

Low-cost, community-based apartments for seniors may be heading to Miller Place.

During a July 10 Sound Beach Civic Association meeting, Mark Baisch, owner of the Rocky Point-based development company Landmark Properties Ltd., proposed 44 600-square-feet, one bedroom apartment units be built as a cul-de-sac on the northwest corner of Sylvan Avenue and Echo Avenue.

The plan is for the senior-exclusive apartment complex, temporarily named Echo Run, to be developed on half of the heavily wooded 3.7-acre site, while the other half would remain in its natural state.

According to Baisch’s proposal, all four units in each of the 11 buildings would have a high Energy Star rating with geothermal heating and cooling systems. Rent is expected to be between $1,000 and $1,400 per month.

It’s kind of lifting a weight off their shoulders because now, this whole homeownership responsibility at 75 years old goes away.”

— Mark Baisch

He said the project aims to provide older residents a new, much-needed living option.

“There’s a huge demand for reasonably priced apartments for seniors who have lived here for a significant portion of their life because for them, there is no place to go,” Baisch said of his plan, which targets senior citizens burdened with paying high taxes to live in homes or basement apartments they might not need anymore. “It’s kind of lifting a weight off their shoulders because now, this whole homeownership responsibility at 75 years old goes away and you end up living the rest of your life without that worry.”

He said senior citizens would not have to worry about upkeep and maintenance around their yard and home while in the complex.

“Here’s what would be a bunch of accessory apartments all in an area where everybody’s in the same boat — they can all support one another and that’s the way it really should be,” Baisch said. “The psychological benefit alone probably exceeds the housing benefit.”

Sound Beach Civic Association President Bea Ruberto, 70, said she’s ready to sign up.

“I can envision myself living there,” Ruberto said. “As baby boomers, we’re getting to the age where we want to live somewhere like that and we have very few rental apartments in the area. More senior rental is definitely needed.”

Ruberto said the proposal was well-received by other civic board members, especially Baisch’s idea to give each building in the complex a different color and design so it better fits the look of the community.

“I can envision myself living there. … More senior rental is definitely needed.”

— Bea Ruberto

The Miller Place proposal mirrors Baisch’s On the Commons apartment complex in development in Rocky Point on the site of the old Thurber Lumber Co. Inc. He said Miller Place and Sound Beach residents requested to be placed on the Rocky Point housing list, prompting him to add a second location.

Like On the Commons, Echo Run plans to reserve a significant percentage of its homes for United States military veterans. The minimum percentage for veterans in Miller Place would be 10 percent, Baisch said, but that number may be adjusted pending an upcoming meeting with Joe Cognitore, commander of Rocky Point Veteran of Foreign Wars Post 6249.

Mary McDonald, 66, who has lived in Miller Place for 32 years, is pleased the proposal is pushing for residential development as opposed to commercial.

“Affordable housing for seniors is something that’s going to be needed all through Suffolk County, because taxes are so high seniors have to leave,” she said. “I’m getting to that point myself.”

Brookhaven Town Councilwoman Jane Bonner (C-Rocky Point) said she has already received positive feedback from seniors.

“Several residents have reached out to me and are very excited for it,” Bonner said.

Baisch has discussed the estimated two-year plan with the president of the Miller Place Civic Association and members of Brookhaven Town, and will be meeting with the Mount Sinai Civic Association in the near future.

“I know this will be a homerun in Miller Place,” he said, “just like it’s a homerun in Rocky Point.”

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