October 2012

Long-Term Care Insurance Bill in Massachusetts has passed

GOV. SIGNS LONG-TERM CARE INSURANCE BILL: After taking his full 10 days to review, Gov. Deval Patrick on Thursday afternoon signed long-term care insurance legislation (S 2359) that sets new standards for policies and creates consumer protections. Long-term care insurance regulations already exist in Massachusetts, but the new law requires the insurance commissioner to promulgate the National Association of Insurance Commissioners’ model, which provides additional consumer protections. It also gives the insurance commissioner increased authority over

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Homeowner’s insurance usually won’t cover you if there’s a flood

Many people are surprised to discover that their standard homeowner’s insurance policy does not cover them in the event of a flood. If you want flood insurance, you generally have to buy a separate policy. Typically these policies are sold by private insurers, but are backed by the U.S. Government through the National Flood Insurance Program. Some federally backed mortgage programs require homeowners to buy flood insurance if they live in a high-risk area. Some private

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Landlord could be on the hook if tenant doesn’t pay contractor

If a tenant hires a contractor to make improvements to a property, but the tenant doesn’t pay the contractor in full, can the contractor sue the landlord for the difference? It sounds unlikely, but it happened in one case recently. Former Boston Celtics player Dana Barros leased a warehouse and hired a contractor to make improvements so he could turn it into a sports complex. Later, the contractor believed it hadn’t been paid in full, so

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Here’s another reason to always have a property inspected

A couple who purchased a condo in a building that turned out to be contaminated with toxic chemicals can recover only 65% of their losses, because they could have arranged an environmental inspection of the property before they bought it but didn’t do so, the Michigan Court of Appeals recently decided. The couple bought a condo unit in a converted factory. The developer had installed a vapor barrier, but never actually decontaminated the dangerous chemicals on

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Buying? Selling? Refinancing? Know the tax rules!

Owning a home provides a lot of tax advantages. Sometimes, though, the rules can be tricky. Here’s a brief introduction to some of the many tax rules involved in buying, selling, or refinancing a home. But remember, the rules are complicated, and there are always exceptions. You’ll want to consult an attorney or tax advisor to see how the general rules apply to your specific situation. If I own a home, can I deduct my mortgage

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Reverse mortgage borrowers are getting younger

The average age of people who take out a reverse mortgage is dropping, according to a new study by MetLife. Unfortunately, these types of mortgages come with risks, so younger borrowers need to be careful. Reverse mortgages allow homeowners who are at least 62 years old to borrow money on their house. The homeowner receives a sum of money from the lender, based largely on the value of the house, the age of the borrower, and current

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Giving your home to your children can have tax consequences

Many people wonder if it’s a good idea to give their home to their children. While it’s possible to do this, giving away a house can have major tax consequences, among other results. When you give anyone (other than a spouse) property valued at more than $13,000 in any one year, you must file a gift tax return. You won’t owe any federal gift taxes if the total value of your gift, in addition to any

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Here’s an easy new way to compare home health agencies

Given the choice, most seniors who need help with care would prefer to remain at home rather than move to a nursing home. One way to avoid nursing home care is to hire help at home through a home health care agency. But how can you tell which is the best one to choose? This just got a bit easier for Medicare recipients, who can now see the results of surveys of patients who have used various

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Low interest rates make long-term care insurance more costly

Prices for long-term care insurance policies jumped between 6 and 17 percent in the past year, according to an industry survey. A 55-year-old couple can expect to pay about $2,700 a year for about $340,000 worth of current-value benefits, according to an annual report from the American Association for Long-Term Care Insurance.  The same coverage would have cost only about $2,350 just one year ago.

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Son is liable for mother’s $93,000 nursing home bill

The adult son of a nursing home patient is legally on the hook for her $93,000 in unpaid nursing home bills, an appeals court in Pennsylvania recently decided. It doesn’t matter that the son never signed a contract with the nursing home; he’s still liable for his mother’s debt, the court said. The case in the latest in a series of lawsuits in which nursing homes, assisted living facilities and other institutions have sued the adult

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