Posts Tagged ‘nursing homes’
Tuesday, May 15th, 2012 by Moore McLaughlin
Private fee-for-service (PFFS) plans are a way to give private insurance companies access to the vast Medicare market and are part of an effort to further privatize Medicare. PFFS plans are the fastest-growing Medicare Advantage plans on the market. While the additional benefits these plans often offer may look attractive, Medicare beneficiaries should look carefully before they leap into one.
In a PFFS, Medicare pays a set amount each month to a private insurer to provide health coverage on a fee-for-service basis to Medicare beneficiaries. Unlike a health maintenance organization (HMO) or preferred provider organization (PPO), PFFS members can choose from any Medicare-approved provider as long as the provider is willing to accept the plan’s payment terms. PFFS plans differ from original Medicare in that there is no limit to the premiums or co-payments a PFFS can charge. PFFS plans may offer additional benefits, such as vision or dental, but members may have to share some of the costs with Medicare. PFFS plans may let providers charge up to 15 percent above the plan’s payment amount for services.
Although the additional benefits offered through a PFFS plan may seem advantageous, a report by the Medicare Rights Center finds that private Medicare plans actually offer many disadvantages compared to original Medicare. For example, care can be more expensive because co-payments may be higher. In addition, it may be more difficult to find a doctor who will accept the plan’s payment terms. PFFS plans have also come under scrutiny for their aggressive marketing practices. Sales agents have been accused of fraud for signing up seniors who were not aware how PFFS plans differed from original Medicare.
Before you enroll in a PFFS plan, look closely at the monthly premium, co-payments, and the cost of extra benefits to make sure that this is a plan you can afford. You can call 1-800-MEDICARE or go to www.medicare.gov to compare plans.
Prescription drug coverage
Some PFFS plans offer prescription drug coverage. If the plan you choose has drug coverage, you must use the coverage offered by that plan. You may not enroll in a separate drug plan. If your PFFS plan does not offer prescription drug coverage, you can either switch to another plan that has drug coverage or add this coverage separately.
Switching plans
You can only switch to a different PFFS plans or back to original Medicare at certain times of the year. You can switch during the election period from November 15-December 31 or during the open enrollment period from January 1-March 31 of each year. Note that if you are switching from a PFFS plan with drug coverage to one without, the only time you can add drug coverage is during the election period from November 15-December 31.
For more information on how PFFS plans work, click here.
Tags: asset protection, Asset Protection Planning, assisted living facilities, elder law, elderlaw, Elderlaw/Law For Life, Estate Planning, health maintenance organization, Jill E. Sugarman, Jill Sugarman, Long-term care, long-term care insurance, Massachusetts, mclaughlin & quinn, Medicaid, Medicaid planning, Medicare, Medicare Advantage, nurses, nursing homes, PFFS, Private fee-for-service, Providence, Rhode Island, seniors, social security
Posted in Asset Protection Planning, Elderlaw/Law For Life, Estate Planning
Wednesday, May 2nd, 2012 by Moore McLaughlin
If you are caring for your mother or father, you may be able to claim your parent as a dependent on your income taxes. This would allow you to get an exemption ($3700 in 2011) for him or her.
There are five tests to determine whether you can claim a parent as a dependent:
- The person you are claiming as a dependent must be related to you. This shouldn’t be a problem if you are claiming a parent (in-laws are also allowed). Keep in mind, however, that foster parents do not count as a relative. To claim a foster parent, he or she must live with you for a year as a member of your household.
- Your parent must be a citizen or resident of the United States or a resident of Canada or Mexico.
- Your parent must not file a joint return. If your parent is married, he or she must file separately. There is an exception if your parent is filing jointly, but has no tax liability. If your parent files a joint tax return solely to get a refund, you can claim him or her as a dependent.
- Your parent must not have a gross income of $3,700 (in 2011) a year or more. Gross income does not include Social Security payments or other tax-exempt income. (For those with incomes above $25,000, some portion of Social Security income may be includable in gross income.)
- You must provide more than half of the support for your parent during the year. Support includes amounts spent to provide food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities. Even if you do not pay more than half your parent’s total support for the year, you may still be able to claim your parent as a dependent if you pay more than 10 percent of your parent’s support for the year, and, with others, collectively contribute to more than half of your parent’s support. To receive the exemption, all those supporting your parent must agree on and sign the applicable Multiple Support Declaration (Form 2021).
If you cannot claim your parent as a dependent because he or she filed a joint tax return or has a gross income above $3,700 (in 2011) but you have been paying your parent’s medical expenses, you may be able to deduct those expenses from your taxes. For more information on this, contact your CPA or one of the tax attorneys at McLaughlin & Quinn, LLC.
Tags: asset protection, Asset Protection Planning, assisted living facilities, dependent, elder law, elderlaw, Elderlaw/Law For Life, Estate Planning, exemption, income tax, income taxes, internal revenue code, Internal Revenue Service, IRS, IRS and state tax collections, Jill E. Sugarman, Jill Sugarman, Long-term care, long-term care insurance, mclaughlin & quinn, Medicaid, Medicaid planning, Moore McLaughlin, Multiple Support Declaration, nursing homes, parent, Providence, Rhode Island, seniors, tax, Tax planning
Posted in Asset Protection Planning, Elderlaw/Law For Life, Estate Planning, Tax planning
Thursday, April 26th, 2012 by Moore McLaughlin
A Chicago judge has reversed a death sentence that has been hanging over Boots the cat for months. The feline’s owner, Georgia Lee Dvorak, died last Christmas Eve at age 76. Dvorak left no survivors, and her will, written in 1988, included a provision directing that any cat or cats she owned at the time of her death be euthanized “in a painless, peaceful manner.” 
But trust officers at Fifth Third Bank, which was appointed to manage Dvorak’s $1.4 million estate, were reluctant to follow through on the will’s terms when it came to Boots, age 11.
The bank asked a Cook County (Chicago) probate court to set aside that provision of Dvorak’s will. In its arguments to the judge, the bank noted that Dvorak had left the bulk of her estate to twelve animal-related charitable organizations. They also cited legal precedents in which courts had spared other animals in similar legal predicaments, including two Irish setters in Pennsylvania who had been ordered destroyed in their owner’s will, and horses in Vermont and Canada that had been similarly condemned.
The judge allowed the bank to search for a suitable home for Boots to live out the remainder of her life, and one was found. Cats-are-Purrsons-Too agreed to care for Boots provided it could receive a $2,000 endowment. On April 3, 2012, the judge ruled that $1,000 of Dvorak’s estate could go toward the endowment, and the bank agreed to forego fees of $1,000, according to an article in the Chicago Tribune.
In its fact sheet “Providing for Your Pet’s Future Without You,” the Humane Society of the United States warns that when a pet owner puts a request in a will that an animal be put to death, “that provision is often ruled invalid by the legal system when the animal is young or in good health and when other humane alternatives are available.”
For more on including a pet in an estate plan, contact estate planning attorney Jill E. Sugarman at JSugarman@McLaughlinQuinn.com or by phone at 401-421-5115 ext. 215.
Tags: asset protection, Asset Protection Planning, Boots the cat, cat, cats, dog, dogs, elder law, elderlaw, Elderlaw/Law For Life, Estate Planning, Jill E. Sugarman, Jill Sugarman, Long-term care, long-term care insurance, mclaughlin & quinn, Medicaid, Medicaid planning, nursing homes, pet, pets, probate, Providence, Rhode Island, seniors, will, wills
Posted in Asset Protection Planning, Elderlaw/Law For Life, Estate Planning, Tax planning
Monday, April 2nd, 2012 by Moore McLaughlin
Following the death of singer Amy Winehouse from alcohol poisoning last July, the British paper the Daily Mail reported that not only did the 27-year-old have a will but that she had recently updated it to ensure that her ex-husband Blake Fielder-Civil would not inherit any of her estate. That the troubled singer could be organized enough to plan her estate seemed somewhat incongruous, but news sources picked up the story as an example of the importance of planning no matter one’s age. 
It turns out the story was too good to be true. Winehouse died intestate, in other words without having executed any will at all, according to probate documents reported by the Associated Press. Her entire probate estate, which has an after-tax value of $4.7 million, will go to her parents. Winehouse may have wanted to leave some of that money to others besides her parents – perhaps to her brother or to Fielder-Civil — but if she did, she failed to make a will to make that clear.
Winehouse’s fortune was earlier estimated to be about $16 million, and it may turn out to be more than $4.7 million because a probate estate does not include assets held held jointly with someone else, or that had a beneficiary designation (like an insurance policy), or held in trust (although it is unlikely Winehouse had a trust if she had no will).
“By having no will at all, despite earning millions of dollars in her short career, Winehouse joined the dozens of other famous celebrities who procrastinated with their estate planning,” celebrity estate experts Danielle and Andy Mayoras write in Forbes.
Although it turns out Amy Winehouse had no will, the moral of the story remains the same: it’s never too early to plan your estate. If you have accumulated some assets (it doesn’t have to be Winehouse’s millions) or have young children that will need a guardian, then it is time to start thinking about an estate plan. Planning your estate with a will or trust is the best way to ensure your estate is distributed the way you want it to.
For more on estate planning, contact elderlaw attorney Jill E. Sugarman at 401-421-5115 ext 215 or by e-mail at JSugarman@McLaughlinQuinn.com.
Tags: Amy Winehouse, asset protection, Asset Protection Planning, elder law, elderlaw, Elderlaw/Law For Life, Estate Planning, income tax, Jill E. Sugarman, Jill Sugarman, mclaughlin & quinn, Medicaid, Medicaid planning, Moore McLaughlin, nursing homes, Providence, Rhode Island, seniors, Tax planning, Winehouse
Posted in Asset Protection Planning, Current Events, Elderlaw/Law For Life, Estate Planning, Tax Current Events and News, Tax planning
Friday, March 9th, 2012 by Moore McLaughlin
Is having an out-of-date will better than having no will at all? While wills do not have expiration dates, certain changes can render them useless. When this happens, having an out-of-date will can be the same as having no will at all. It is important to review your will periodically to ensure it still does what you want. The following are five ways your will can become out-of-date:
- Your beneficiaries have died. What happens if your will leaves your estate to your two siblings, but both siblings die before you? If your beneficiaries predecease you, your will is still technically valid, but it will have no effect on who will inherit from your estate. Instead, your estate will be distributed according to the law in your state, just as if you had died with no will at all.
- You have potential new beneficiaries. A will that was written before you got married or had children will be of little assistance in distributing your estate. States have provisions that protect spouses and children that come after a will is written. In most states, spouses are entitled to a certain percentage of an estate. In addition, many states have laws that protect children born after a will was written, allowing them to inherit from the estate. It’s possible that under the laws of your state, a spouse and children not named in your will may not receive as much as you would have wanted them to. In both of these circumstances, state law is dictating where your estate is going, not you.
- Your executor is dead or unable to serve. The executor (also called a personal representative) is the person named in your will who oversees the distribution of your property. If the person you named as executor is unable to serve, the court will have to appoint someone else. Beneficiaries may have a say in who is chosen, but it may not be someone you would have wanted in the position.
- You no longer own property named in the will. Suppose your will attempts to divide up your estate equally by giving cash to your daughter and property of equal value to your son. If the property is sold before you die, your son will receive nothing. In this case, your will is no longer ensuring your estate is divided equally.
- The law changes. If your estate plan was designed specifically to avoid estate taxes and the estate tax law changes, your will may no longer serve its purpose.
Contact elderlaw attorney Jill E. Sugarman at 401-421-5115 or by e-mail at JSugarman@McLaughlinQuinn.com to ensure your will is still up to date or if you have no will at all.
Tags: asset protection, Asset Protection Planning, assisted living facilities, elder law, elderlaw, estate, Estate Planning, Estate tax, Jill E. Sugarman, Jill Sugarman, living will, Long-term care, long-term care insurance, mclaughlin & quinn, Medicaid, Medicaid planning, nursing homes, Providence, Rhode Island, seniors, will, wills
Posted in Asset Protection Planning, Elderlaw/Law For Life, Estate Planning, Tax planning
Monday, March 5th, 2012 by Moore McLaughlin
The IRS has warned senior citizens and other taxpayers to beware of an emerging scheme tempting them to file tax returns claiming fraudulent refunds. The scheme carries a common theme of promising refunds to people who have little or no income and normally do not have to file a tax return. Under the scheme, promoters claim they can obtain a tax refund or nonexistent stimulus payment based on the American Opportunity Tax Credit, even if the victim was not enrolled in or paying for college. The IRS is actively investigating the sources of the scheme and its promoters may be subject to criminal prosecution.
“This is a disgraceful effort by scam artists to take advantage of people by giving them false hopes of a nonexistent refund,” said IRS Commissioner Douglas H. Shulman. “We want to warn innocent taxpayers about this new scheme before more people get trapped.”
Scammers are targeting seniors, people with very low incomes and members of church congregations with bogus promises of free money. A variation of this scheme incorrectly claims the college credit is available to compensate people for paying taxes on groceries.
The IRS is reminding people to be careful because all taxpayers, including those who use paid tax preparers, are legally responsible for the accuracy of their returns and must repay any refunds received in error. Taxpayers should beware of the following: fictitious claims for refunds or rebates based on false statements of entitlement to tax credits; unfamiliar for-profit tax services selling refund and credit schemes to the membership of local churches; internet solicitations that direct individuals to toll-free numbers and then solicit Social Security numbers; homemade flyers and brochures implying credits or refunds are available without proof of eligibility; offers of free money with no documentation required; promises of refunds for “low income—no document tax returns;” claims for the expired Economic Recovery Credit Program or for economic stimulus payments; unsolicited offers to prepare a return and split the refund; unfamiliar return preparation firms soliciting business from cities outside of the normal business or commuting area.
IR-2012-29, March 2, 2012
Tags: American Opportunity Tax Credit, asset protection, Asset Protection Planning, Douglas H. Shulman, Economic Recovery Credit Program, elder law, elderlaw, Elderlaw/Law For Life, Estate Planning, income tax, internal revenue code, Internal Revenue Service, IRS, IRS and state tax collections, Jill E. Sugarman, Jill Sugarman, mclaughlin & quinn, Moore McLaughlin, nursing homes, Providence, Rhode Island, seniors, tax, Tax planning, Thomas P. Quinn
Posted in Asset Protection Planning, Current Events, Elderlaw/Law For Life, Tax Current Events and News
Monday, February 13th, 2012 by Moore McLaughlin
Americans are living longer than they did in years past, including those with disabilities. Planning by parents can make all the difference in the life of a child with a disability, as well as that of his or her siblings who may be left with the responsibility for caretaking (on top of their own careers and caring for their own families).
Supplemental needs trusts (also known as “special needs” trusts) are an important component of planning for a disabled child (even though the child may be an adult by the time the trust is created or funded). These trusts allow a disabled beneficiary to receive inheritances, gifts, lawsuit settlements, or other funds and yet not lose her eligibility for certain government programs. The trusts are drafted so that the funds will not be considered to belong to the beneficiary in determining her eligibility for public benefits.
As their name implies, supplemental needs trusts are designed not to provide basic support, but instead to pay for comforts and luxuries that could not be paid for by public assistance funds. These trusts typically pay for things like education, recreation, counseling, and medical attention beyond the simple necessities of life.
For more on supplemental needs trusts, including the different kinds of trusts available, contact Jill E. Sugarman, Esq at 401-421-5115 or by e-mail at JSugarman@McLaughlinQuinn.com.
Tags: asset protection, Asset Protection Planning, assisted living facilities, disabilities, disability, disabled beneficiary, elder law, elderlaw, Elderlaw/Law For Life, Estate Planning, Jill E. Sugarman, Jill Sugarman, Long-term care, long-term care insurance, mclaughlin & quinn, Medicaid, Medicaid planning, nurses, nursing homes, Providence, Rhode Island, seniors, social security, special needs, special needs trust, supplemental needs trust
Posted in Asset Protection Planning, Elderlaw/Law For Life, Estate Planning
Friday, October 28th, 2011 by Moore McLaughlin
The Rhode Island Division of Taxation has announced the estate tax threshold for the estates of decedents dying in 2012. The threshold for 2012 will be $892,865, compared with $859,350 for 2011, a 3.9 percent increase. A state law enacted in 2009 raised the threshold to $850,000, from $675,000, effective for decedents dying in 2010. That law also required that the threshold amount be adjusted each January thereafter, based on annual inflation, compounded annually, and rounded to the nearest $5 increment.
In general, for a decedent dying in 2012, a net taxable estate valued at $892,865 or less will not be subject to Rhode Island’s estate tax. (In certain circumstances, the Rhode Island estate tax will not apply no matter the estate’s size: Rhode Island General Laws Chapter 44-22 provides full details on the computation of the tax, including such factors as the marital and charitable deductions.)
Tags: elder law, elderlaw, Elderlaw/Law For Life, Estate Planning, Estate tax, Jill E. Sugarman, Jill Sugarman, Long-term care, long-term care insurance, mclaughlin & quinn, Medicaid, Medicaid planning, Moore McLaughlin, nursing homes, Providence, Rhode Island, Rhode Island Division of Taxation, Rhode Island estate tax, seniors, tax, Tax planning, veterans
Posted in Asset Protection Planning, Elderlaw/Law For Life, Estate Planning, Tax Current Events and News, Tax planning
Thursday, October 27th, 2011 by Moore McLaughlin
Being a trustee is a big responsibility and if you don’t perform your duties properly, you could be personally liable. That’s why it’s important to hire the right people to guide you in this important role.
A trust is a legal arrangement through which one person (or an institution, such as a bank or law firm), called a “trustee,” holds legal title to property for another person, called a “beneficiary.” If you have been appointed the trustee of a trust, this is a strong vote of confidence in your judgment.
A trustee’s duties include locating and protecting trust assets, investing assets prudently, distributing assets to beneficiaries, keeping track of income and expenditures, and filing taxes. (For more information on a trustee’s duties, contact estate planning attorney Jill E. Sugarman) As a trustee, you have a fiduciary duty to the beneficiaries of the trust, meaning that you have an obligation to act in the best interest of the beneficiaries at all times. It also means you will be held to a higher standard than if you were just dealing with your own finances.
A trustee is usually entitled to hire an attorney (and other professionals like an accountant) to assist in trust administration. The attorney’s fees will be paid from the trust funds. While hiring an attorney will cost money, not having an attorney at all could cost a trustee much more if errors are made.
A trust can be administered without court involvement, but that doesn’t mean that the administration is simple. There are many areas where problems can arise — for example, if assets aren’t invested properly, taxes are late, or if proper records aren’t kept. If something goes wrong during the administration of the trust, the trustee can be removed and held personally liable for any costs incurred or losses suffered. Even if a spouse is the trustee, he or she should still consult with an attorney. Many couples have so-called “AB” trusts to take advantage of the maximum estate tax exemption; these trusts require special knowledge to determine whether the trusts are properly funded and the taxes filed.
For more information about trusts, contact estate planning attorney Jill E. Sugarman, at JSugarman@McLaughlinQuinn.com or by phone at 401-421-5115 ext. 215.
Tags: asset protection, Asset Protection Planning, assisted living facilities, beneficiary, elder law, elderlaw, Elderlaw/Law For Life, Estate Planning, fiduciary, fiduciary duties, fiduciary duty, Jill E. Sugarman, Jill Sugarman, Long-term care, long-term care insurance, mclaughlin & quinn, Medicaid, Medicaid planning, Moore McLaughlin, nursing homes, Providence, Rhode Island, seniors, Tax planning, trust, trustee, veterans
Posted in Asset Protection Planning, Elderlaw/Law For Life, Estate Planning, Tax planning
Wednesday, September 21st, 2011 by Moore McLaughlin
Around this time of year, unscrupulous companies step up their efforts to market costly living trusts to older Americans — arrangements that may actually undermine the buyer’s economic security.
According to the AARP, the Federal Trade Commission (FTC), and a number of state attorneys general, these high-pressure con artists have built an industry around older people’s fears that their estates could be eaten up by probate costs or taxes, or that the distribution of their assets could be delayed for years. The solution, they claim, is a living trust.
“What these fast-talking crooks don’t tell their clients,” AARP Volunteer Consumer Affairs Specialist Irma Swantner says, “is that the “living trust” they’re selling could become the buyer’s “living hell.”
The living trust is an estate planning device that eliminates the need for probate of the individual’s estate at his death. Assets are held in the trust and then distributed outside of probate at the time of death.
There is nothing wrong with a living trust or with trying to avoid probate. Attorneys may recommend a living trust as an estate planning device for some of their clients where it is appropriate for their particular needs. However, salespeople masquerading as professional estate planners are working the provinces trying to convince older Americans that such trusts are for everyone. Going door-to-door or using phone solicitation, they often greatly exaggerate the costs and delays of probate and are unlikely to mention that the vast majority of estates are not subject to federal or state estate taxes. Their products are “cookie-cutter” living trusts, sometimes in the form of living trust kits.
The problem is that many people don’t need a living trust, a trust from a kit may not meet a particular client’s needs, and often these companies charge more than the service is worth. In addition, according to the FTC, some companies are using the living trust concept merely as a way to gain access to consumers’ financial information and sell them other financial products, such as insurance annuities.
Among the dangers of “one-size-fits-all” living trusts, say AARP officials, is that in many cases they won’t make the grantor and spouse eligible for Medicaid reimbursement of nursing home costs. In addition some trusts improperly instruct the trustee to distribute property to beneficiaries immediately upon the death of the grantor. If creditors make a claim against the trust after asset distribution, the trustee becomes personally liable for any valid claims against the trust.
According to an AARP study published in 2000, about four million people older than 50 with less than $25,000 in annual income may have purchased costly, unnecessary, and potentially dangerous living trusts as a result of high-pressure sales tactics by firms masquerading as AARP affiliates. In fact, AARP is not associated with and does not endorse any company that markets or sells living trusts.
The Federal Trade Commission also reminds consumers of the “Cooling-Off Rule,” which provides that if you buy a living trust in your home or somewhere other than the seller’s permanent place of business (say, at a hotel seminar), the seller must give you a written statement of your right to cancel the deal within three business days.
To help older adults and families make better decisions about annuities, the Healthcare and Elder Law Programs Corporation (H.E.L.P.) has created a Web site, annuitytruth.org.
Or, better yet, seek the advice of a qualified elder law attorney, such as Jill E. Sugarman, before signing anything. You can contact Jill at 401-421-5115 ext. 215 or by e-mail at JSugarman@McLaughlinQuinn.com.
Tags: AARP, annuities, asset protection, Asset Protection Planning, assisted living facilities, elder law, elderlaw, Elderlaw/Law For Life, Estate Planning, Jill E. Sugarman, Jill Sugarman, living trust, living trusts, Long-term care, long-term care insurance, Massachusetts, mclaughlin & quinn, Medicaid, Medicaid planning, nursing homes, Providence, Rhode Island, seniors, veterans
Posted in Asset Protection Planning, Elderlaw/Law For Life, Estate Planning, Tax planning
