RI Elder Law News from Attorney Jeremy Howe

Till Debt Do We Part?

2013-07-29T13:36:00.001-04:00

Till Debt Do We Part?

In community property states, both spouses are responsible for any debt that has been incurred while they were married.

That means if one spouse doesn’t pay an outstanding credit card debt accumulated during the marriage, then the other one must pay, or risk credit damage and collection actions. The credit card company doesn’t view it as “his” or “her” debt. Instead, they see one debt, and if they can’t collect from one party, they will try to get the entire balance from the other party.

To read more about divorce and credit card debt, click on the following link:

http://www.foxbusiness.com/personal-finance/2013/07/12/divorce-and-card-debt-in-community-property-s…

However, if you are divorcing in Rhode Island, it is important to note that Rhode Island is not a community property state, but instead is an equitable distribution state.

In Rhode Island, marital property is considered to be all property acquired during the marriage by both partners. If there is a divorce, the court will aim to distribute one half of this property to each spouse unless the court finds such a division to be inequitable or unfair. In order to decide this, the court looks at various factors such as length of marriage, age, health, employability, other sources of income and any debt.

Are you a resident of Rhode Island and considering divorce?

The experienced lawyers at Law Office of Jeremy W. Howe, LTD. and the mediators at Partners In Mediation offer you two options in order to proceed with your divorce or other family disputes and problems.

Learn about these options and which would work best for you by calling or contacting Jeremy Howe for a free comprehensive telephone consultation. Attorney Howe and his team of family court lawyers have been providing quality divorce and family representation in all Family Courts in Rhode Island for nearly four decades. He and his co-mediator have mediated hundreds of divorce, family law and elder law cases across the state of Rhode Island.

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For more information, please visit them on the web at http://www.counselfirst.com

World Elder Abuse Awareness Month

2013-07-18T13:18:00.000-04:00

As the month of June drew to a close, many of us were unaware of the fact that June is World Elder Abuse Awareness month. Elder abuse is a sad topic, and one that is often under-reported and hidden from view. Its annual awareness month hopes to shed light on ways that people can detect or help when an elderly loved one is being abused.

Elder abuse can manifest itself in several ways. Physical, emotional and sexual abuses are a few tragic forms of abuse that some seniors suffer at the hands of their caregivers. However, financial abuse is a form of elder abuse that often goes unnoticed by loved ones. Financial abuse among the elderly is most likely to come at the hands of family members and caregivers, due in part to the fact that many seniors may be too trusting or polite to fully recognize when someone is taking advantage of them.

To read more about the different forms of elder abuse, and to learn what you can do to help detect and prevent it, click on the following AARP article:

http://blog.aarp.org/2013/06/14/elder-abuse-awareness-day-7-ways-you-can-help/

The attorneys at the Law Offices of Jeremy W. Howe, LTD., specialize in elder law. If you need advice for yourself or a loved one on ways to be protected from financial elder abuse, contact the lawyers at his Providence, Rhode Island office for a free comprehensive telephone consultation.

Attorney Jeremy Howe and his team of elder law and family court lawyers have been providing quality elder law representation in Rhode Island for nearly four decades. He and his co-mediator have successfully mediated hundreds of divorce, family law and elder law cases throughout the state of Rhode Island.
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To learn more about The Law Offices of Jeremy W. Howe, please visit them on the web at http://www.counselfirst.com

Baby Boomers and Divorce

2013-07-02T14:27:00.000-04:00

Baby Boomers are divorcing in record numbers.

In 1990, 1 out of 10 people over the age of fifty divorced. Ten years later, a surprising to 1 out of 4 people aged fifty years or older, are choosing to end their marriages.

While the idea of divorcing after age fifty may seem especially painful because of old memories or fears of being alone later in life, recent research shows that the age and experience of Baby Boomers, makes them better equipped to handle the challenges associated with divorce. In fact an AARP study shows that 3 out of 4 Baby Boomer divorcees say that they made the right decision in choosing to divorce.

For Baby Boomers who may suddenly find themselves single again, there are some general principals and tips to help cope with life post-divorce.

To read tips for divorced Baby Boomers and to view an interesting info-graphic on the new “gray” divorce trend, please click on the following link:

http://www.huffingtonpost.com/allison-pescosolido-ma/the-gray-divorce-tips-for_b_3454624.html

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The Law Offices of Jeremy W. Howe, LTD. are Family and Elder Law Attorneys in Newport, Rhode Island who specialize in Wills and Trusts, Estate Planning, Guardianship, Probate, and Veterans Aid and Attendance Benefits.

Call them today at 401-841-5700 or visit them on the web at http://www.counselfirst.com

“Grey” Divorces are on the Rise

2013-06-25T21:54:00.000-04:00

A prominent divorce financial strategist has revealed to Forbes Magazine some interesting trends taking place in divorces over the last decade. Some of the most notable divorce trends are:

1. As marriage rates decrease, divorce rates decrease proportionately.
2. Women are usually the ones who initiate a divorce.
3. “Grey” divorces, a name for divorces later in life, are on the rise.

To read about the trends in divorce, and to view a fascinating info-graphic about divorce, please click on the following link:

http://www.forbes.com/sites/jefflanders/2013/06/20/not-your-mothers-divorce-three-21st-century-trends/

Are you a resident of Southern Rhode Island and considering divorce? The experienced lawyers at Law Office of Jeremy W. Howe, LTD. and the mediators at Partners In Mediation offer you two options in order to proceed with your divorce or other family disputes and problems. Learn about these options and which would work best for you by calling or contacting Jeremy Howe for a free comprehensive telephone consultation.

Attorney Howe and his team of family court lawyers have been providing quality divorce and family representation in all Family Courts in Rhode Island for nearly four decades. He and his co-mediator have mediated hundreds of divorce, family law and elder law cases in North Kingstown, South Kingstown, Cranston, Warwick and Westerly, Rhode Island and the surrounding communities.

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The Law Offices of Jeremy W. Howe, LTD. are Elder Law Attorneys in Newport, Rhode Island who specialize in Divorce, Wills and Trusts, Estate Planning, Guardianship, Probate, and Veterans Aid and Attendance Benefits.

Call them today at 401-841-5700 or visit them on the web at http://www.counselfirst.com

Attorney Kristy Garside Receives The Rhode Island Bar Association’s Pro Bono Publico Award

2013-06-10T15:51:00.002-04:00

FOR IMMEDIATE RELEASE

FAMILY LAW AND ELDER LAW ATTORNEY, KRISTY GARSIDE, RECEIVES PRESTIGIOUS AWARD FOR PRO BONO ACCOMPLISHMENTS

June 10, 2013, Newport, RI: Kristy Garside, a family law and elder law attorney with The Law Offices of Jeremy W. Howe, Ltd., has been awarded the prestigious Rhode Island Bar Association’s 2013 Pro Bono Publico Award for her outstanding efforts in providing equal access to justice to the poor through the Volunteer Lawyer Program. The Rhode Island Bar Association’s Pro Bono Publico Awards program seeks to identify and honor individual lawyers who have enhanced the human dignity of others by improving or delivering volunteer legal services to the poor and disadvantaged.

Kristy Garside has been advocating on behalf of impoverished Rhode Islanders since law school, when she received her J.D., from Roger Williams University School of Law in 2004. She has been an active participant in the Rhode Island Bar Association’s Volunteer Lawyer program for many years. Garside offers her family law and elder law knowledge and expertise to the volunteer program, which provides legal assistance to low-income clients who are financially unable to obtain legal representation. She is among over 1000 private attorneys in the State of Rhode Island who volunteer their time for this program.

Newport Attorney Jeremy Howe, of The Law Offices of Jeremy W. Howe, Ltd., offered his congratulations to Garside, saying, “We are very proud of Kristy. Her legal work is of the highest quality, even when she isn't being paid. Kristy truly cares about the people she represents." Garside will accept her Pro Bono Publico Award on June 13, 2013 at the Rhode Island Bar Association’s Annual Meeting Dinner.

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The Law Offices of Jeremy W. Howe, LTD. are Elder Law Attorneys in Newport, Rhode Island who specialize in Wills and Trusts, Estate Planning, Guardianship, Probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for Family Law issues such as Divorce, Child Custody and Visitation, Support, and Military Family Law.

Call them today at 401-841-5700 or visit them on the web at http://www.counselfirst.com

Are You or a Senior You Know Eligible For Benefits?

2013-06-06T12:38:00.000-04:00

This article was published in our monthly Elderlaw News E-Newsletter, but thought it was so important it was worth pointing out again! this information could be useful to our clients and their families.

"How to Track Down Financial Assistance Programs for Seniors," was posted on NBC's Savvy Senior page

http://www.savvysenior.org/article_20120430.htm?type=quicklink.

The article suggests ways you can take advantage of over $20 billion in aid that millions of seniors are missing out on "simply because they aren't aware or savvy in navigating these helpful assistance programs." The first step this article suggests in identifying possible benefit programs available to you is to complete a free and confidential easy, 15-minute, on-line benefits check questionnaire at benefitscheckup.org. This on-line questionnaire will ask about your basic information, expenses, income, and assets. After completion, the service will provide you with a detailed report advising you of programs you may be eligible for from over 2,000 federal, state, and private benefit programs nation-wide and details on how to apply for each individual program. These programs could financially assist you in prescription drug costs, health care, utilities, and other basic needs. Visit the article for more information.

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Forbes Notes the 7 Major Errors in Estate Planning

2013-06-06T12:37:00.000-04:00

Errors in Estate Planning

This article from our monthly Elderlaw News E-Newsletter about errors in Estate Planning talked about the "7 Major Errors in Estate Planning." The article was posted by Forbes and can be accessed at http://forbes.com/sites/robclarfeld/2012/04/25/7-major-errors-in-estate-planning/?typ. We like to know that other planners experience the same issues, and sometimes to hear it from someone else helps you to "hear" it!

This article addresses the benefits in having an estate plan, the risks associated with not having an estate plan, and common errors within those plans. The article also stresses the importance that "Estate Planning is not a Do It Yourself (DIY) task" and "relying on discounted, on-line estate planning documents is not only going to leave you uninformed and unadvised, but you also take the risk for inadequancies to be discovered in those documents when examined post-mortem."

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Obamacare Contains Several New Taxes That Could Affect You

2013-06-06T12:26:00.000-04:00

We would like to pass along this article found in a monthly e-newsletter we receive. The newsletter is published by Kahn, Litwin,Renza & Co., Ltd. (KLR). Their firm of certified public accountants is located locally at 97 John Clarke Road,Middletown, RI 02842 and can be reached at 888-KLR-8557.

KLR is one of New England’s premier accounting and business consulting firms. With 165 team members and offices in Boston, Newport, Providence and Waltham, KLR provides a wide range of services to both individuals and businesses.

Obamacare Contains Several New Taxes That Could AffectYou

byWilliam Morgan, J.D., LL.M.

July 23, 2012

Afterthe Supreme Court ruled to uphold the Patient Protection and Affordable CareAct of 2010 (“ACA”) as constitutional, the focus now turns to what that meansfor everyone. This article summarizes the effects of ACA’s tax provisions onindividuals and businesses in the near future. The ACA tax changes, coupled withthe expiration of the Bush-era tax rates at the end of 2012, increase rates forupper-income individuals in 2013 and beyond. Here is a summary of the ACA’s taxchanges that will be implemented, now that the Supreme Court ruled the ACA isconstitutional.

For Individuals: Starting in 2013

For2013, the ACA introduces two (2) different Medicare taxes that increase taxesfor higher-income individuals.

New 0.9% Medicare Surtax - First, for joint filers with wages above $250,000 and single filers whose wages exceed $200,000 there will be an additional Medicare tax of 0.9% on the excess wages exceeding $250,000 joint/$200,000 single filer thresholds. The levy also applies to individuals with self-employment income above the thresholds.
New 3.8% Medicare Surtax- Second, and for the first time ever, a Medicare surtax of 3.8% will apply to investment income. This 3.8% tax will apply to either (i) unearned income, or (ii) the amount by which adjusted gross income exceeds the $250,000 (joint filer)/$200,000 (single filer) thresholds, whichever is less. What is unearned income? The ACA defines it as interest, dividends, capital gains, annuities, royalties and passive income from rents and businesses where you don’t actively participate. Unearned income does not include tax-exempt interest, withdrawals from retirement plans, life-insurance proceeds payable at death, veterans’ benefits and income from businesses where you do actively participate, such as S corporations or partnerships. The 3.8% tax doesn’t affect someone without investment income. If your entire income is from investments, it doesn’t apply either, as long as your total investment income is under the $250,000/$200,000 thresholds.
Flexible Spending Account Contributions Capped at $2,500 - Beginning in 2013, the ACA limits the amount you can set aside pre-tax to pay for medical expenses to $2,500. So for those who have been setting aside more than $2,500 for medical expenses, you must reduce that to $2,500. This results in more of your income being subject to income taxes.
Raised Threshold to Deduct Unreimbursed Medical Expenses- In 2013 the threshold to deduct unreimbursed medical expenses will raise from 7.5% to 10% of adjusted gross income. So if your adjusted gross income is $100,000, you will only be able to deduct medical expenses over $10,000, where before you could deduct expenses over $7,500.

For Businesses: Starting in 2013

Tax Credits for Small Businesses - The ACA also has a small businesses tax credit, which is effective immediately. This credit is targeted to help small businesses that employ 25 people or less with average incomes of $50,000 or less. For tax years 2010 to 2013, the maximum credit is 35%, as long as the employer contributes at least 50% of the total health insurance premium or 50% of a benchmark premium. Starting in 2014, a maximum credit of 50% is available for two years to employers who buy health insurance coverage through a state exchange and contribute at least 50% of the total premium.
Medicare Part D Deduction- Starting in 2013, the ACA eliminates, in coordination with Medicare Part D, the tax deduction for employer-provided prescription drug coverage.
Medical Device Excise Tax - Beginning in 2013, the ACA imposes a 2.5% tax on the sale of certain medical devices, payable by the device’s manufacturer, producer or importer.

ForIndividuals: Starting in 2014 and Beyond

Individual Mandate- Effective in 2014, most U.S. citizens and legal residents failing to maintain minimum health coverage on themselves and their dependents will face a tax penalty. The basic penalty for an individual is $95 in 2014, $325 in 2015, and $695 in 2016 and later years, with some exceptions for the poor and certain others.

ForBusinesses: Starting in 2014 and Beyond

Employer Mandate- The ACA imposes tax penalties on certain employers that don’t provide their employees health coverage starting in 2014. Employers with 50 or more full-time-equivalent workers who do not offer coverage and have at least one full-time employee who receives a premium tax credit are subject to an annual fee of $2,000 per full time employee (not including the first 30 FTEs).
Tax on “Cadillac” Plans- Starting in 2018, there will be a 40% nonrefundable excise tax on ‘Cadillac’ plans, levied on plans with annual premiums in excess of $10,200 for individual coverage and $27,500 for family coverage (excluding stand-alone dental and vision plans). The thresholds are higher ($11,850 and $30,950, respectively) for retirees and employees in certain high-risk professions.

KLR’s tax professionals have specialized training and experience in the Boston market place in all matters of Federal, State and Local Tax Issues. They have expertise in tax strategies for individuals and families, estate gift & trust services, voluntarydisclosure issues, transfer pricing, M&A assistance, cost segregationstudies and research & development tax credits.

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Medicaid Protection of Assets by Funeral Preplanning

2013-06-04T13:24:00.001-04:00

Medicaid Protection of Assets by Funeral Preplanning

It is common knowledge that one acceptable use of funds by a person seeking to qualify for Medicaid benefits is to prepay funeral expenses. In many cases, elders go to their funeral director and pay for the expenses with cash assets or they assign life insurance to the extent necessary.

Another more flexible method is to fund an irrevocable “funeral trust”. Rhode Island and Massachusetts law allow each person to fund an irrevocable “funeral trust,” with up to $15,000. (CT law only allows $5900). Funding for this can be from the cash value of an existing life policy (a 1035 tax free exchange), or in cash.

The advantage of a funeral trust over a pre-paid funeral is the flexibility of using any funeral home or burial service in any state, with the safety of the funds being in a guaranteed life insurance policy.

The fund is exempt from Medicaid and Supplemental Security Income (SSI) “spend down” requirements as soon as it is funded. Clearly, the trust funds can be used for all usual expenses of a funeral and other events relating to the funeral. It can also be used for additional expenses such as a permanent cemetery monument, travel expenses for family members, outstanding debts or obligations, various medical and professional fees and a post-funeral gathering. There is no “extra” cost for utilizing a financial adviser to assist you in setting up the irrevocable funeral trust. The adviser will be compensated by the company holding the trust.

One of the important aspects of the trust is that it is irrevocable which means that no person (even the grantor) can revoke the trust and gain access to the funds. Often we see situations where a person plans their estate plan but it is undone due to use of a Durable Power of Attorney or by the trustees of a revocable trust. This form of funeral planning secures the wishes of the grantor.

Special thanks to Robin of ROBIN G. SMITH CONSULTING for her contribution to this article.
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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce lawyers, attorneys, mediators, and arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

A Medicare Trap

2013-05-07T13:37:00.000-04:00

A Medicare Trap

My associate attorney Kristy Garside and I presented material on Social Security, dividing pensions, Social Security Disability, Medicaid and Medicare at a Rhode Island Bar Association seminar last week. The seminar was delivered to about 50 attorneys and was titled “When Your Older Clients Divorce.” The Medicare portion of our presentation utilized written material by Robin G. Smith of Robin G. Smith Consulting, an elder-advice professional. We emphasized a “Medicare Trap” from her material.

Medicare Part B covers doctor visits, lab tests, diagnostic imaging, and outpatient procedures, and can be thought of simply as a classic 80/20 health insurance plan. Neither Part A or part B covers prescription drugs. Having BOTH Parts A and B is necessary to get either Supplemental insurance (Medigap), or to enroll in a Medicare Advantage plan (Part C). The problem “trap” is regarding those over 65 who are still working and covered by their employers insurance (and their spouses): The worker and spouse can elect to decline Part B (thus avoiding paying the premium) without incurring a late sign-up penalty. However, if the employee retires or otherwise loses employer coverage, he and his over 65 year old spouse MUST sign up for Medicare Part B within 63 days of leaving the job, even if the employer had offered COBRA benefits. Failure to do so will incur a Medicare penalty for late sign-up that is both financially onerous and permanent. Medicare counts the time from the day the employee left the job, and does not take COBRA payments into account at all. In addition, the spouse might not be able to sign up at all until long after the date the coverage ended. When a couple divorces, the divorce settlement often requires coverage until the non- working ex-spouse reaches age 65. The ex- spouse must sign up for Part B to avoid a Medicare penalty. If the divorcing parties are over 65, and have been covered by the other’s employer’s insurance, the spouse must sign up for Part B upon the divorce.

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce lawyers, attorneys, mediators, and arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Surviving Spouse May Be Responsible for Nursing Home Bills

2013-04-12T09:30:00.000-04:00

Mass. Court Rules Wife Is Responsible For Husband's Nursing Home Care

Spouses need to be very careful or they could end up legally responsible for the cost of their husband’s of wife's nursing home care, as a recent Massachusetts court decision demonstrates.

When Milfranciu Jode entered a nursing home, his wife applied for Medicaid on his behalf. Mr. Jode was rejected three times due to the failure to provide backup documentation, and he died leaving the nursing home unpaid.

After Mr. Jode's death, the nursing home sued Mrs. Jode, arguing that she was legally responsible for the cost of her husband's care under something called the "doctrine of necessaries." This means that a spouse is responsible for debts incurred by the other spouse for "necessaries." The law doesn't define what constitutes a "necessary," but in the Jode case the Massachusetts Superior Court ruled that the definition of necessaries included the care provided by the nursing home. Emerson Village, LLC. v. Jode (Mass. Sup. Ct., Middlesex, No. 12-CV-1736-F, Dec. 15, 2012)

Many other states have similar laws to the one in Massachusetts making one spouse responsible for the care of the other spouse. If your spouse is in a nursing home, contact your elder law attorney right away to find out the best course of action to prevent any surprises when it comes to the bill.

Read more HERE

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

When Is Bankruptcy Better Than Paying Off Your Debts?

2013-04-03T09:30:00.000-04:00

Bankruptcy May Be the Better Choice for Debt-Laden Seniors

The conventional wisdom is that you should always pay off your debts, but that may not always make the most financial sense for seniors. In some cases, filing for bankruptcy may be the better choice.

Many seniors are struggling with large credit card bills and monthly debt that exceeds their income. Bankruptcy may make sense for these individuals – especially if they have already paid off their mortgages – because they will be less affected by poor credit ratings. Filing for bankruptcy can also eliminate a senior's existing medical bills. Another benefit is that most retirement accounts are exempt, which means the funds do not have to be sold during bankruptcy proceedings.

There are two types of bankruptcy for individuals: Chapter 7 and Chapter 13. With Chapter 7 bankruptcy, you can discharge all of your debts, but you must sell some of your property to pay your creditors. However, many assets (like the equity in your house) are protected from bankruptcy, so in reality you may not have to surrender any property. In order to file Chapter 7 bankruptcy, you need to pass a means test, and if your income is too high, you may not qualify (Social Security benefits do not count toward income). Chapter 13 bankruptcy requires you to pay back your debt over time, but you are not required to sell any property. To qualify, you need to be able to show that you have the ability to slowly discharge your debt.

Bankruptcy is not the right choice for everyone, however, and seniors should consult their attorney before making any decisions. For example, while bankruptcy gets rid of existing medical debt, it doesn't do anything about ongoing debt. Many people feel morally obligated to pay off debt, and walking away from debt means higher fees and interest rates for others, so the decision to file for bankruptcy should not be taken lightly.

Read more HERE

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Fiscal Cliff Deal Brings Changes to Estate Taxes and IRAs

2013-03-20T09:30:00.000-04:00

'Fiscal Cliff' Deal Brings Changes to Estate Taxes and IRAs

Congress finally came to an agreement to avoid the "fiscal cliff," and the agreement includes some changes to federal estate taxes and Individual Retirement Accounts (IRAs). The American Taxpayer Relief Act sets a permanent estate tax rate and provides a tax break for cash donated to charities from an IRA.

The new law makes only minor changes to the federal estate tax. The amount that you can transfer tax-free either during life or at death will remain the same as it has the past two years. The law permanently sets the estate tax exemption at $5 million for an individual (now $5.12 million due to inflation) and $10 million for a couple (now $10.24 million). (With new inflation adjustments, the exemptions are estimated to rise to about $5.2 million and $10.4 million.) The lifetime gift tax exclusion – the amount you can give away without incurring a tax – also remains the same at $5.12 million. But you can still give any number of other people $14,000 each per year without the gifts counting against the lifetime limit.

Under the new law, the gift and estate tax rate will increase from 35 percent to 40 percent. This means that if you transfer more than $5.12 million either during your life or upon your death, your estate will be taxed at 40 percent. The new law also makes permanent the "portability" provision currently in place. This allows a surviving spouse to add the unused portion of a deceased spouse's exclusion to his or her own. Note that portability is not automatic -- the estate must file an estate tax form when the first spouse dies even if no tax is owed.

The new estate tax rates and rules are “permanent,” but only until Congress decides to revisit them and the President agrees to the changes. But keep in mind that the new law does not address state estate taxes, which many states have.

The fiscal cliff deal also brings back a tax provision called the IRA charitable rollover that had expired in 2011. The law extends the provision through 2013. This allows investors aged 70 ½ or older to transfer as much as $100,000 a year from an IRA directly to a charity without counting it as taxable income. Non-Roth IRA owners are required to take yearly minimum distributions from their IRAs starting at age 70 1/2, and the charitable donation can count toward the taxpayer's minimum required distribution for the year.

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

What You Need to Know About Palliative Care

2013-03-15T09:30:00.000-04:00

What You Need to Know About Palliative Care

By Philip Moeller

Even the healthiest senior may eventually face serious illness and, of course, death. Seniors know this, and so do their family members and other loved ones. Despite this certainty, we are seldom prepared for late-stage and end-of-life illnesses. And we are even less comfortable talking about them.

Done right, palliative care is an enormous game-changer. It brings openness and fresh air to these topics. It can deliver a range of medical, psychological, social-support, and even spiritual services to patients and family members. It can provide all these resources without costing more money and, in some cases, can even save money by helping people receive care in their homes and not in more costly hospitals. Ideally, it should be available for a broad range of serious but not necessarily life-threatening health conditions.

Most importantly, palliative care and hospice, for those who are near the end of life, have been proven to extend lives and improve the quality of the time remaining for patients and their families. Further, we know what works and how to provide this care. Odds are, however, you have never heard of palliative care or if you have, you aren't really sure what it means.

Jane de Lima Thomas was in that boat only 10 years ago. And she was a doctor, no less, in the process of becoming a geriatrician. Early in her career, she recalls, "I took care of a lot of patients who were in the final stages of their life. The care I was able to provide didn't feel good." Something was missing in terms of helping patients and families cope with the broad range of health, quality-of-life, communications, and other challenges.

"I didn't even know there was a field called palliative medicine," she says. "I didn't hear about it in medical school and it wasn't part of the medical-school curriculum." Thomas made it part of hers. She is now associate director of the Harvard Palliative Medicine Fellowship Program at the Dana-Farber Cancer Institute in Boston, and teaches palliative care at the Harvard Medical School.

Hospice is an important component of palliative care, but only part of what it does. "My job isn't just to help people facing the end of their lives," although she certainly does that, Thomas says. "I feel like my job is to help anybody who has a serious illness."

"I feel so passionately that this is something we can learn to do much better," she says, while admitting that discomfort—amongst doctors as well as consumers—poses barriers to expanding palliative care, as do culturally driven approaches to medicine and medical reimbursement rules that can discourage providing palliative-care services.

"I think in our society, we are inclined to think of issues of health as a battle and we fight for life," she says. "And when someone dies, it's often portrayed as somehow we've lost a battle."

Palliative care, by contrast, recognizes "what medicine can do for a patient and what is beyond the power of medicine to provide." It includes a team of professionals, not just a doctor. Thomas rattles off a list that includes a physician, nurse, social worker, pharmacist, chaplain, occupational therapist, musical therapist, and others.

Daniel Johnson is a palliative-care expert who wears multiple hats for Kaiser Permanente in Colorado. He also helps educate new doctors through the Life Quality Institute. Thomas and Johnson are two of five doctors recently honored for their work in palliative care by the Hastings Center, a nonprofit bioethics research institute.

Read more HERE

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Guardian Must Maintain Ward's Estate Plan

2013-03-13T09:30:00.000-04:00

Guardian Must Maintain Ward's Estate Plan

A guardian of the estate may not change his ward's estate plan by re-titling funds formerly held in a joint account. In Re: Falucco (Super. Ct. Pa., No. 2105 WDA 2000, Jan. 4, 2002).

In 1997, Annette Fallucco placed two accounts containing certificates of deposit (CDs) totaling $139,314 in joint tenancy with her son, James. Five days later, Mrs. Fallucco executed her will, which provided specific bequests to her son and daughter, with the residuary estate to be distributed in equal shares to her grandchildren and one great-grandchild. On December 19, 1998, James withdrew the funds in the CDs and placed them in three individual accounts titled in his name only, although he did not withdraw any principal or interest from the CDs or accounts.

In 1999, Mrs. Fallucco was declared incapacitated and Thomas Dempsey was appointed guardian of her estate. After his appointment, Mr. Dempsey requested that James return to the estate the funds previously held in the joint accounts, which James did. Mr. Dempsey then placed the funds in an account titled in his own name for the benefit of Mrs. Fallucco, and did not include James as a joint tenant. Mrs. Fallucco died on June 23, 1999. Mr. Dempsey's final account of the estate included the funds previously held in the joint accounts. James filed objections to the inclusion of these assets, and on August 25, 2000, the Orphans' Court directed the executor of the estate to release the funds, plus interest, to James. Mr. Dempsey and the residuary legatees appealed.

The Superior Court of Pennsylvania affirms, concluding that Pennsylvania law forbids a guardian of the estate from changing the estate plan of the incapacitated person, except upon petition to a court. The court finds that Mrs. Fallucco intended to make a testamentary disposition of all her assets through her will and the jointly held accounts. Therefore, the court rules that the jointly held assets should not pass through her will as part of the residuary estate. Once James had returned the funds to the estate, the court holds that Mr. Dempsey should have restored the status quo and re-titled the joint accounts in the names of Mrs. Fallucco and her son.

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Law Office of Jeremy Howe Elder Law Attorney Kristy Garside to Speak at Growing Older Seminar

2013-03-08T09:30:00.001-05:00

Elder Law Attorney Kristy Garside will speak at a free seminar entitled

"Growing Older: How Can I Pay for Healthcare and the Services I Need?"

March 14, 2013 in Newport, Rhode Island.

The free seminar is being held from 5:30PM to 7:30PM at the Blenheim Newport, 303 Valley Road, Middletown, RI. Some of the topics and questions that will be addressed include Medicare Coverage, Medicare vs. Medicaid, Homecare, Assisted Living and Veterans Benefits.

Attorney Garside commented on her involvement by stating, "Medicare does not cover expenses associated with the care that an Alzheimer’s patient will need. It is important to know what other financial programs and services are available."

This seminar is designed for boomers, children of aging parents, and seniors; will answer your questions and educate you on programs, products, opportunities, and strategies; and all while enjoying refreshments at the beautiful Blenheim Newport in Middletown. RSVP to Lynn Squatrito @ 401-239-2509 A light dinner is served at 5:30 pm, Program starts at 6.

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Workshops Help Families Grappling With Alzheimer's Care

2013-03-06T09:30:00.000-05:00

Workshops Help Families Grappling With Alzheimer's Home Care

by Ina Jaffe

There are more than 5 million people with Alzheimer's in the U.S., and most are cared for at home. Now, one company has begun offering training to family caregivers to help them deal with the special challenges of caring for an Alzheimer's patient.

The company, Home Instead Senior Care, is the nation's largest provider of nonmedical home care for seniors. The workshops are free and available to anyone, whether they're clients of the company or not.

A recent session in Los Angeles drew about half a dozen people on a weekday afternoon. The need that brought them there was as serious as it was undefined. Tina Stephenson put it this way: "I need help, bottom line."

She's been with her partner, Gino, for 34 years. They live in a one-room apartment, and she says that certain ordinary things, like standing in front of the sink, just freak him out. "I mean, it's so weird. He just all of a sudden resists me and pulls the other way. So I'm looking for some help with that," Stephenson says.

Leading the workshop is John Moser, the owner of the Home Instead franchise in Los Angeles. He got into the home care business after years working as an elder abuse attorney.

"I dealt with a lot of nursing homes and skilled nursing facilities," he says. "I always thought, is this really the only option for seniors?"

That led him to Home Instead. The company's employees help older adults with things like meals, grooming and transportation. "Family members would be so surprised that our caregivers were able to get mom or dad to do certain things" that family members couldn't, says Moser. "They would call the Home Instead offices and wanted to know more about this training."

The training was developed by Home Instead, but it's based on ideas accepted by many Alzheimer's experts — for example, making use of long-term memories and recognizing what triggers anxiety. The company has spent about $3 million over the past three years on developing and presenting workshops for family caregivers. Home Instead says it wants to be a community resource for families grappling with Alzheimer's. It's also a way to get more clients.

When it comes to caring for Alzheimer's patients, Moser tells the group that knowledge is power. "I always tell caregivers: Know 100 things about the person you're providing care to," says Moser. Those things are then recorded in a workbook called "Capturing Life's Journey."
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"Even though short-term memory goes, a lot of people with dementia retain those long-term memories," he says.

And those long-term memories — and lifelong activities — can be rekindled and used to distract a person with Alzheimer's from behaviors that could cause them physical or emotional harm. Or the information can be used to give them a better quality of life.

Read more HERE

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Social Security Switching to All-Electronic Payment System

2013-03-01T09:30:00.000-05:00

Social Security Switching to All-Electronic Payment System

No more paper checks in the mail. Starting March 1, nearly everyone who receives Social Security must switch to the government's new electronic payment system. Beneficiaries will be able to have their checks directly deposited into their bank account or put on to a debit card.

The government is switching to electronic payments in order to save money and to provide a more reliable method of delivering payments. The move to paperless payments will save the government close to $1 billion dollars over the next 10 years. It also eliminates the problem of checks that get lost in the mail or are delayed due bad weather.

Currently, around 93 percent of payments are made electronically, but about 5 million checks are still being mailed each month. If you are among those who haven't converted to electronic payments, the following are your options:

You can have the checks deposited directly into your bank account. This option allows flexibility with withdrawals and you will be subject to the bank fees and limits you already have in place.

If you can't afford a regular checking or savings account, you may be able to open a special low-cost bank account called an electronic transfer account (ETA). ETA fees are low and you are allowed four free withdrawals a month. However, not a lot of banks have joined the ETA program.

You can have your payment put on a Direct Express debit card. The debit card does carry some additional fees if you are planning to withdraw cash. You get one free withdrawal a month and then a $0.90 fee (or more depending on the bank) applies every time you make a subsequent withdrawal that month. You can also use the card like a MasterCard to make purchases directly without fees.

Some individuals are exempted from the requirement to switch to paperless payments. If you are over age 90, live in a remote area that doesn't have electronic payment options, or have a mental impairment that doesn't allow you to manage finances, you may not have to switch to an electronic payment system.

To make the switch, call 1-800-333-1795 or visit www.GoDirect.org.

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Elder Abuse Resources

2013-02-27T09:30:00.000-05:00

Elder Abuse Resources

Here are excerpts from a letter regarding elder abuse.

“It was a pleasure to meet you Wednesday night and very refreshing to hear about the work that you do as an Elder Law Mediator and as an Elder Law Attorney. I mentioned a few other resources you may find useful. You can contact the The Elder Victim Advocate at the Elizabeth Buffum Chace Center here in Warwick. They support any Elders in the community who need counseling and support services (individually and in group sessions) either at the counseling center or in criminal or restraining order court proceedings.

A Newport andMiddletown advocate can be reached at 401-847-8300 ext 5732. Any time an Elder or victim of Domestic Violence or Sexual Assault/Child Molestation needs to report to one of these police departments or has already done so they can reach out for more information on their rights and options as the victim of crime, what the procedure will look like, and also for referrals for support services in the Newport and Middletown areas. We have many advocates around the state and I can assist you in finding a local advocate. As you can see we have a vast network of Advocates and we are all connected to a variety of agencies that serve victims of DV/SA. I would be very excited if you would include Elder Abuse information in one of your upcoming newsletters. Even the amount of financial abuse out there is astonishing! “

So there you have it. Elder abuse is sometimes physical or emotional and sometimes financial. It is certainly widespread. The point of this column is that there are advocates for the elderly across the state. We can assist you in finding the right advocate to assist you or an elder you are concerned about. Call us at 401-841-5700.

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Preparing Financially for Loss

2013-02-22T09:30:00.000-05:00

A Shocking Death, a Financial Lesson and Help for Others

By RON LIEBER

In the days after Chanel Reynolds’s husband was hit while riding his bicycle near Lake Washington here and the best-case possibilities just kept getting worse, she was not yet consumed by grief. There were no dogged middle-of-the-night Web searches for faraway cures for his crushed upper spine or tearful bedside vigils with their 5-year-old son.

Instead, the buzz in her brain came from a growing list of financial tasks that grown-ups are supposed to have finished by the time they approach middle age. And she and her husband, José Hernando, had not finished them.

“I was finding it really hard for me to stay present and in the room and to be able to hear what the doctors were saying because I was so overwhelmed with not knowing how much money we had in our checking account, and the fact that we had our wills drafted but not signed,” she said. “I didn’t know whether I was going to be able to float a family by myself.”

In the many months of suffering after Mr. Hernando’s death in July 2009, she beat herself up while spending dozens of hours excavating their financial life and slowly reassembling it. But then, she resolved to keep anyone she knew from ever again being in the same situation.

The result is a Web site named for the scolding, profane exhortation that her inner voice shouted during those dark days in the intensive care unit. She might have called it Getyouracttogether.org, but she changed just one word.

The site offers some basic financial advice, gives away free templates for a master checklist and provides starter forms to draft a will, living will and power of attorney. There’s also a guide to starting a list of all of the accounts in your life that someone might need to access and shut down in your absence.

Read more HERE

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Caring for Aging Parents - Finances

2013-02-20T09:30:00.000-05:00

7 ways to help aging parents handle finances

By Robert Powell

Make no mistake about it, there’s a large generational role reversal taking place in this country. Adult children are increasingly providing advice and counsel to their aging parents about a wide variety of financial and nonfinancial issues. And, they are being asked to answer questions about everything from Medicare to how to reinvest a maturing CD.

Knowing full well that you might be called upon to become a subject matter expert, if you haven’t already, we asked experts for some help.

“Children of aging and/or disabled parents need to help their parents face up to the decisions they need to make now,” said Chris Cooper, the owner and founder of ElderCare Advocates.

Below is what experts said adult children and aging parents ought to consider, now.

Financial matters

All of us are going to lose our ability to make more complex financial decision when we reach advanced ages, said Michael Finke, an associate professor at Texas Tech University. “The problem is that we often don’t recognize the decline,” he said.
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This is very similar to what happens to older drivers, he said. “Since the decline is so gradual and consistent (we measure the decline in financial decision making at about 2% per year), we often don’t recognize when we become vulnerable to making mistakes,” said Finke.

So, his advice to aging parents and their adult children is this: “Part of a retirement plan needs to be accounting for the decline in our ability to make these decisions,” said Finke. “That means sitting down with a trusted relative or financial adviser and putting a plan in place to delegate some decisions in advanced age,” he said.

Selecting investments that require less active management, such as annuities or a managed payout mutual fund can also help. “We need to not only protect our portfolio against market risk, we also need to protect it against the risk of cognitive decline,” said Finke.

And for adult children, Finke’s recommended the following: “Create a plan with an older parent that includes establishing a power of attorney and allowing an adviser to contact a trusted child if they become aware that the parent is making financial mistakes.”

What’s more, Finke advised doing this sooner rather than later. “Putting the plan in place early in retirement before cognitive decline begins may be easier than convincing a parent who is exhibiting signs of dementia that they need to relinquish control of their finances,” he said.

Jack Tatar, author of “Safe 4 Retirement: The 4 Keys to a Safe Retirement,” agrees. “We all end up having the conversation, but usually too late, when mental capacities are diminished and certain expectations may be set, such as one sibling’s belief that they will get this or that.”

Having these conversations, said Tatar, provide peace of mind for everyone. “Allowing the retiring/retired parents to be more comfortable living out their retirement dream and providing the adult child with a major task done,” he said. “These conversations should result in documented plans, which should be updated regularly.”
Get those documents in order

Speaking of documents, Tatar said, one major way adult children can help their aging parents is make sure all their affairs are in order. “Adult children need to be sure that their parents have things documented such as wills, assets, end-of-life considerations, even their medications and health records,” said Tatar, whose new book, “Having ‘The Talk” with Your Parents About Retirement,” will be published in January 2013.

In some cases, an adviser could be the central point of contact or the adult child, or both.

Read more HERE

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Surviving Spouse May Be Liable for Elder Care Expenses

2013-02-15T09:30:00.000-05:00

Mass. Court Rules Wife Is Responsible For Husband's Nursing Home Care

Spouses need to be very careful or they could end up legally responsible for the cost of their husband’s of wife's nursing home care, as a recent Massachusetts court decision demonstrates.

When Milfranciu Jode entered a nursing home, his wife applied for Medicaid on his behalf. Mr. Jode was rejected three times due to the failure to provide backup documentation, and he died leaving the nursing home unpaid.

After Mr. Jode's death, the nursing home sued Mrs. Jode, arguing that she was legally responsible for the cost of her husband's care under something called the "doctrine of necessaries." This means that a spouse is responsible for debts incurred by the other spouse for "necessaries." The law doesn't define what constitutes a "necessary," but in the Jode case the Massachusetts Superior Court ruled that the definition of necessaries included the care provided by the nursing home. Emerson Village, LLC. v. Jode (Mass. Sup. Ct., Middlesex, No. 12-CV-1736-F, Dec. 15, 2012)

Many other states have similar laws to the one in Massachusetts making one spouse responsible for the care of the other spouse. If your spouse is in a nursing home, contact your elder law attorney right away to find out the best course of action to prevent any surprises when it comes to the bill.

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Asset Protection Seminars Are Not All the Same

2013-02-13T09:30:00.000-05:00

Beware Of Asset Protection Scams

Recently, a friend attended a seminar on asset protection. Based on information that my friend provided to me, the seminar seemed to be what has become a disturbing trend.

To be certain, asset protection is an important discipline within the field of wealth management. Asset protection might also be called risk management. As one might imagine, there are a number of ways to implement asset protection/risk management. And, it is not uncommon for asset protection/risk management issues to intertwine with other disciplines, such as estate planning and tax planning.

So, how might a seminar on asset protection be a scam? Perhaps you have heard the saying: if all you have is a hammer, everything looks like a nail. What typically occurs in one of these seminars is that the presenter whips up fear about gold-diggers filing frivolous lawsuits attempting to get at your hard-earned money. Typically, the presenter’s solution is not an interdisciplinary approach to an individual’s circumstances. Instead, the presenter’s solution seems to always lead to a family limited partnership, a Nevada “secret” company, or an asset protection trust in a favorable jurisdiction . . . which is what the presenter specializes in. And, whatever the solution is, it is cloaked in an aura of “only the elite know about this.”

In reality, the specific way that asset protection/risk management should be implemented for any person will be wholly dependent on that person’s specific objectives and circumstances. The solution should attempt to integrate asset protection/risk management issues, estate planning issues, tax planning issues, etc. You should question anyone who doesn’t do this.

One key question about asset protection/risk management planning is about the cost of implementation. A particular approach might provide you with a “bullet-proof” solution. (Keep in mind that there are always trade-offs and limits to any approach.) But, what does it cost to implement and what does it cost to maintain? One popular approach that is pushed at asset protection seminars is a foreign asset protection trust. Such trusts – if done correctly – can easily run $20,000 or more simply to establish . . . never mind the annual expense to maintain. (Key point: if done correctly.)

Now, let’s consider another approach to asset protection/risk management that has been around for hundreds of years: insurance. As a point of disclosure, neither my firm nor I sell insurance nor are we licensed to sell insurance.

According to one source, the net worth threshold to enter into the top 1 percent of wealth in the U.S. is about $1.5 million. Let’s round this up to $2 million. The annual cost of a $2 million umbrella insurance policy will vary from provider to provider but will be in the range of about $300 to $400. That is a pretty inexpensive asset protection plan compared to the annual cost to maintain a structure proposed by these presenters.

While I don’t have a source, for the sake of argument, let’s just say that the top one-half percent wealth threshold is $5M. The annual cost of a $5 million umbrella insurance policy should run about $600 to $700. If we extend the coverage to a $10 million umbrella insurance policy, the annual expense might reasonably be $1000 to $1200.

Think about it: for 99 percent of the general population, insurance is a fairly low-cost solution for asset protection/risk management. In all fairness, insurance has its own limitations. However, insurance can be combined with existing estate, tax, and business planning to yield a respectable asset protection plan. Don’t be led to believe that one presenter’s solution is “the” way to meet your needs.

Here are some final thoughts. Hiding assets is not a valid asset protection strategy. If you have a judgment against you and you fail to disclose ownership of assets, you might be found in contempt. Hiding assets is not a valid tax reduction strategy. If you hide assets and fail to report income from those assets, you might be found guilty of tax evasion. Do things right and do things smart.

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Government in Debt Over Reverse Mortgages

2013-02-08T09:30:00.000-05:00

Government Plans Big Reverse-Mortgage Curbs

By Philip Moeller

Reverse mortgages, long criticized for high fees and other anti-consumer features, turn out to actually be the opposite—such a good deal that the government is nearly $3 billion in the hole on outstanding mortgages. As a result, the Federal Housing Administration (FHA) will later this month unveil sharp curbs on its loan product, called the Home Equity Conversion Mortgage (HECM).

When the new rules are issued, consumers will need to take a close look at the terms of these loans. While the specifics of the changes have yet to be announced, they will lead to consumers being able to access a smaller share of their home's equity when they take out a reverse mortgage. In addition, lenders will probably be required to set aside a portion of the borrower's home equity to pay future property taxes and home-insurance premiums. And there may also be limits that restrict lower-wealth borrowers from taking out a HECM.

The FHA (and thus taxpayers) has been losing the most money on the most popular HECM loan: a fixed-rate loan known as the Standard HECM loan. This type of loan will be halted under the new rules. Most borrowers thus will be required to consider a newer reverse mortgage called the HECM Saver.

The HECM Standard loan often carries steep insurance fees and other charges. But it pays out a higher percentage of a homeowner's equity than the Saver, which charges nearly no insurance fees and is less costly to consumers. But it is also a more conservative loan to the FHA because it pays out a smaller percentage of an owner's equity than does the HECM Standard loan. This provides the government a bigger cushion against loan losses that could eventually lead to costly insurance claims by private lenders.

Read more HERE

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Part-Time Home Health Care Gains Popularity

2013-02-06T09:30:00.000-05:00

Part-time Home Health Care

Help by the Hour, or Less
By PAULA SPAN

Here is a bright idea that ought to spread: You call your home care agency and say you will need your mother’s aide for the normal two hours on Monday and Wednesday, but for just half an hour (to drive her to a doctor’s office) on Tuesday, then 90 minutes on Thursday. And the agency says, “Sure.”

It sounds logical to hire someone to help — with bathing, dressing, errands, meal preparation, medication reminders – for only as many hours as an older adult needs assistance. But it is actually unusual for companies to offer such flexibility.

The majority of agencies require a four-hour minimum. Having to spend $80 — the national average cost for home care is $21 an hour — if you only need $40 worth of help is a big barrier for families trying to keep their elderly relatives living at home longer. A few agencies allow you to hire for fewer than four hours, but at higher rates.

But Mission Healthcare in San Diego, Calif., a three-year-old agency that began with Medicare-certified skilled home nursing and hospice care, expanded to general home care this summer and decided that clients should be able to specify how much help they want – in 15-minute increments — and will pay for.

“We’ll come for as long as they need us to,” said Mark Kimsey, one of Mission’s four directors. “In one hour, a well-trained caregiver can get the client bathed and dressed, prepare three meals and have them organized for the day.” (I have to think that is a speedy caregiver with a not-too-frail client, but still … )

Can Mission, which charges $19 to $20 an hour, actually make money this way? Though overall the agency serves 1,100 clients, its fledgling home care business is still small: 30 aides caring for just 60 clients. The aides can get benefits if they work enough hours, a bonus for them and for consumers (better employees, lower turnover), but an additional cost for the company.

Read more HERE

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.