Asked in Estate Planning for New York

Q: Is a statutory gifts rider an imperative part of estate planning if we already have a power of attorney

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1 Lawyer Answer
James K. Riley
James K. Riley
Answered
  • Estate Planning Lawyer
  • Pearl River, NY
  • Licensed in New York

A: A statutory major gifts rider is a an attachment consisting of about 5 pages that is placed behind the basic New York State power of attorney. The purpose of this major gifts rider is to allow the person(s)who you appoint as your agent to act under your power to make major gifts usually to other family members such as your spouse or children.The statutory major gifts rider is not absolutely essential but it is highly recommended. In the absence of that rider, the maximum inter-family gifting which is allowed under the basic power of attorney is $500. You should seriously consider signing the statutory major gifts rider so that significant gifting may be accomplished if there is a family crisis or catastrophic illness requiring a nursing home or long term care facility--but there may be a 5 year waiting period before such gifts are effective against a Medicaid claim or lien. Also,you may insert a provision that any gifts to your children have to be given in even amounts to each of them.I suggest that you speak to an estate planning or elder lawyer on the benefits of the statutory major gifts rider in your planning.

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