How can a spouse ensure that no monetary assets are left to the other spouse with a revocable trust and pour over will?

Additional Information:

The spouse would like to leave all assets, tangible items, and insurance payouts to the children only.

ATTORNEY ANSWER:

There is no requirement that a spouse leave assets to the other spouse in a revocable trust or a will. However, most states have statutes which allow the disinherited spouse to make an election against the decedent’s estate to claim a spousal share.  [Read more…]

Real Estate Newsletter May 2011

To view our most recent real estate newsletter as e-mailed to our clients, click Real Estate Newsletter May 2011

The Beliveau Law Group: Massachusetts | Florida | New Hampshire

The attorneys at The Beliveau Law Group provides legal services for estate planning (wills and trusts), Medicaid (planning and applications), probate (estate and trust administration), business law (formation and operation), real estate (residential and commercial), taxation (federal and state), and civil litigation (in connection with these practice areas). The law firm has offices and attorneys in Naples, Florida; Boca Raton, Florida; Danvers, Massachusetts; Waltham, Massachusetts; Quincy, Massachusetts; Manchester, New Hampshire and Salem, New Hampshire.

Probate of company stock

Additional Information:

I am in charge of an estate and I put the will in probate on 2/2010 and the estate was left 45% of a company and the other 55%.  The man who is running the company was left the 55% and we asked him to buy us out and he said no and is not willing to negotiate a purchase price.   How do I go forward with this situation ?

Also he has not done anything to take over the company legally. The 55% was left to him by the deceased and 45 to his family he was an employee of the company prior to the owners death.

ATTORNEY ANSWER:

An operating agreement is the document which governs how the shares of a company can be transferred and if there are any restrictions on the transfer. You should review the operating agreement, if there is one, carefully. You may be able to sell the shares to an outside investor. [Read more…]

Nursing home legalese?

Additional Information:

My Mom, who is 87 yrs. old and has dementia/early Alzheimer’s, is living with me.  She owns a home, which my daughter and her family are living in currently.  What can I do to prevent the seizure by Medicaid of her home when she has to enter a nursing home, if anything? What are my options with this?

ATTORNEY ANSWER:

Medicaid will not seize a home if your mother enters a nursing and is approved for Medicaid. A home is considered a non-countable asset, so as long as she has met the other financial requirements, Medicaid will approve your mother. A lien will be placed on the house during your mother’s lifetime and enforced during the probate process.

[Read more…]

I probably need an attorney who is an expert on estate planning or Elder Care Law.

Additional Information:

My Father died intestate & my surviving 93 year old mother refuses to discuss a will so she will also die intestate. I would like to add my sister’s name to the deed on my Mother’s house so the house will be owned as Joint Tenants with rights of survivorship. This way when my Mother dies, we can avoid probate. Right now the deed has both my deceased Father & living Mother as owners. How do I go about getting my sister on the deed as a Joint tenant?

ATTORNEY ANSWER:

You need to take your mother to see an elder law attorney who can explain to her the ramifications of not having a Last Will and Testament. If it is her wish to have the house go to your sister, that will not be accomplished by having the house go through probate. Under the laws of intestacy, her children will inherit her property equally. If one of her children has creditor issues, the creditor will be able to attach the house after her death. [Read more…]

How will Medicaid treat my dad’s life estate in our home?

Additional Information:

My dad broke his hip at his house, there are just too many stairs for him to safely navigate.  We sold my dad’s house; used the money as a downpayment on our new ranch style house for myself, my wife and my dad. We went though an Massachusetts eldercare lawyer who created the deed giving my dad a life estate and my wife and myself ownership after my father’s death. My name is the only name on the mortgage. My Dad lived with us for 1 year and 4 months; his dementia has really increased and we had to put him in a nursing home. We are applying him for Medicaid. Any ideas on how Medicaid will treat the life estate?

ATTORNEY ANSWER:

Your father purchased a life estate in your home.  The question is whether MassHealth will treat this as a disqualifying transfer.  I will assume that he paid fair market value for the life estate.  (If he had paid more, he would have been making a gift to you and your wife.)  MassHealth will scrutinize this transaction.  The rule of thumb is that the elder would have had to live in the home for at least a year for MassHealth to consider this a purchase for fair market value.  MassHealth treats an ownership in a residence as a non-countable asset.

[Read more…]

Which will controls?

Additional Information:

My friend had a will and then wanted changes.  She had the lawyer draft the changes but she never signed the changes.  Does the lawyer refer to the original will or can the changes be added without her signature?

ATTORNEY ANSWER:

Your friend’s Last Will and Testament will be the controlling document. The court will not honor an unsigned Codicil.

Margaret L. Cross-Beliveau, Esq., LL.M.

Legal Disclaimer: [Read more…]

IRS encourages tax professionals to participate in one of its 2011 Nationwide Tax Forums

As reported in RIA Newstand: IRS is heavily promoting the importance for tax professionals to attend one of the events scheduled as part of the 2011 IRS Nationwide Tax Forums. As described by the agency, the tax forums are three-day events presented by IRS experts and partner organizations that offer up-to-date information on federal and state tax issues. Those who register early will receive a significant discount on the registration fee. The early registration period closes two weeks prior to each forum. Forums will be held in the following cities on the dates indicated: Atlanta, June 28-30; Orlando, July 12-14; Dallas, July 26-28; San Jose, Aug. 9-11; Las Vegas, Aug. 16-18; and National Harbor, MD (Washington, DC area), Aug. 30- Sept. 1. Attendance at one of the forums carries benefits for enrolled agents, certified public accountants, certified financial planners and other tax professionals, IRS said. These benefits include the opportunity to receive up to 18 continuing education credits, access to 40 separate seminars and workshops on relevant tax topics, and the chance to sign up to become an Authorized IRS e-file Provider. “Tax professionals attending a forum can bring their toughest unresolved case to meet with IRS personnel who may be able to help,” IRS stressed. Complete details and registration are available at http://www.irstaxforum.com/index

Look Before You Leap into Summer Rentals

According to a recent Boston Globe article entitled Owners out, vacationers in, more and more Cape Cod residents are opting to move out of their homes for the summer to share in the lucrative summer rental market.  However, as discussed in the upcoming Beliveau Law Group June Tax newsletter there are tax implications that you need to consider before renting out your home.  There are contractual pitfalls which need to be considered as well.  What are the ramifications if a renter either harmed your property or reneged on the agreement?   We are happy to discuss the pros and cons of your entering into such a rental agreement.   Please feel free to contact us.

Paul Mansur, Esq.

Boston Globe’s Owners out, vacationers in

 

 

Spring 2011 Newsletters

Elder Law Newsletter May 2011

To read the May 2011 Elder Law Newsletter as e-mailed to our clients, please click below.

Elder Law Newsletter May 2011

June 30, 2011: Medicaid Seminar

Attorney David M. Beliveau will be presenting to the MA CPA South Shore Breakfast Forum.

MEDICAID SEMINAR

PRESENTER: David M. Beliveau, Esq.

DATE: June 30, 2011

LOCATION: Chateau Restaurant, 551 John Mahar Highway (Horizon Plaza), Braintree, MA

SCHEDULE: 7:00 a.m. – 9:00 a.m.

DESCRIPTION: An overview of the MassHealth eligibility regulations regarding long-term care.

COST:  $25 for full buffet breakfast

EDUCATION CREDIT: 2 CPE credits for CPAs.

If you would like to attend, please contact Millie (781) 784-7967 / millie@milliecpa.com or Irene (781) 883-3174 / irene@milliecpa.com

May 26, 2011: Estate, Medicaid, and Tax Law Changes Seminar

Please join Attorney David M. Beliveau, Discussion Leader, on May 26, 2011 at the Massachusetts Association of Public Accountants (MAPA) seminar entitled Estate, Medicaid, and Tax Law Changes.

TITLE: Estate, Medicaid, and Tax Law Changes

DATE: May 26, 2011

LOCATION: The Lantana, Randolph, MA

SCHEDULE: 9:00 a.m. – 12:30 p.m.
DESCRIPTION: The estate planning, Medicaid, and tax law landscape continues to change. The Federal estate tax is back. The exemption amount currently is Five Million Dollars per person. In the case of a married couple, there is portability of exemption amounts. However, the new law is scheduled to sunset in two years. Subsequently, the exemption amount is scheduled to drop to One Million Dollars per person. The Massachusetts estate tax is still alive and well. So, married couples in Massachusetts with estates greater than One Million Dollars should still engage in estate tax planning to reduce or eliminate the Massachusetts estate tax. The noose continues to tighten with respect to Medicaid planning. It is increasingly becoming more difficult to protect assets from the nursing home. Recent Massachusetts court decisions have addressed problematic provisions in Medicaid irrevocable income only trusts. If you would like to learn more about such estate planning, Medicaid, and tax law changes, please attend our upcoming seminar. Thank you.

CPE CREDIT HOURS: 4
REGISTRATION: Please click: Seminar sign-up link for registration form.  Click here: MAPA CPE List for a full listing of MAPA’s Continuing Professional Education Registrations

Instead of going to a nursing home, can my father pay my brother to take care of him?

Additional Information:

I am in the position where I have to decide whether to put my father in a Massachusetts nursing home or not. I have found a facility in Greater Boston area that seems appropriate, it costs $4,500 per month. My brother has said he would like to keep him out of a nursing home.  Could my father pay my brother the $4,500 per month instead of paying it into a nursing home? What are the legal/tax implications if any, and can we do this? It would be great solution for all as my brother has had some financial difficulties over the last few years, and it would keep my father out of the nursing home.

ATTORNEY ANSWER:

The answer is yes, your brother can be paid but with some very big restrictions.  In Massachusetts, MassHealth assumes that all work a child does for a parent is from familial love.  All payments to a child are counted as disqualifying transfers unless the parent and child have entered into a valid contract for services rendered called a personal care contract.  The contract should be executed before the payments have begun.  [Read more…]

IRS Live presents The Examination Process for Employment Tax Returns

The IRS has announced a live webinar on June 22, 2011 at 2 p.m. EST on the examination process for employment tax returns.

Clink on the link below for more information:

June Webinar link

Kaiser Family Foundation issues a brief regarding proposed Medicaid overhaul

The Kaiser Family Foundation has issued a brief on Chairman Paul Ryan’s proposal to overhaul Medicaid and convert federal funding to a block grant.
Implications for a Federal Block Grant for Medicaid

Consider the time value of money in making business decisions

Suppose you’re selling your business, and it’s worth $400,000. You’re offered $210,000 down and lump sums of $100,000 at the end of year one and year two. Should you take the offer?

Most people know that $1,000 now is worth more than $1,000 a year from now. Here’s why:

1. Inflation: In a year, a dollar will buy less than it would today.

2. Risk: Over time, the risk increases that some of the money owed you will not be paid.

3. Opportunity loss: Funds on hand could be invested and earning more money. [Read more…]

Estate taxes might not affect you, but you still need a plan

There’s good news if you’re concerned about estate taxes. For the next two years (2011 and 2012), the value of your estate that’s excluded from tax is set at $5 million. And the top rate on taxable estates is 35%.

The $5 million exemption is per person, thus a couple’s exemption is $10 million. Also notable in the law is the new portability of unused exemptions. Under prior law, couples frequently performed complex estate planning to take full advantage of the then $7 million exemption for couples. Now the law allows a deceased spouse’s estate to transfer any unused exemption to the surviving spouse without all the complex planning. [Read more…]

New law repeals expanded 1099 reporting rules

On April 14, 2011, President Obama signed legislation – the Comprehensive 1099 Taxpayer Protection and Replacement of Exchange Subsidy Overpayments Act of 2011 – repealing expanded reporting rules for businesses and landlords that had been created by laws passed in 2010.

Business reporting. The Form 1099 reporting rules were changed by the 2010 health care legislation. Under the Patient Protection and Affordable Care Act of 2010, every business, charitable organization, and governmental unit was required to file a Form 1099 for payments to any vendor or supplier of goods or services (other than a tax-exempt organization) totaling $600 or more for the year. Both the recipient and the IRS had to receive a copy of the Form 1099. These rules were scheduled to take effect for payments made after December 31, 2011. [Read more…]