The Connecticut Elder Law Blog

It's now tougher to deduct medical expenses for income tax purposes. Formerly, medical expenses that exceeded 7.5% of your adjusted gross income could be used as an income tax deduction. The new threshold, as of January 1st, is 10%.

According to a U.S. District Court, a promissory note that complies with federal law and received in exchange for other property is NOT a resource or a trust-like device and does NOT subject a Medicaid applicant to a transfer penalty.

In other words, if a Medicaid applicant transfers property in exchange for such a promissory note, then such a transfer would not be treated as a "disqualifying gift" under Medicaid law.

The case is Lemmons v. Lake, U.S. Dist. Ct., W.D. Okla., No. CIV-12-1075-C, March 21, 2013.

How to Include "Scary" Kids in your Estate Planning

It's unfortunate, but clients who meet with me to do their estate planning will sometimes mention that one or more of their children is "scary" for one reason or another.  

And although the clients want to leave something to that child, there's a concern that their hard-earned money will be "wasted" once the child receives his inheritance.

The best approach in such a situation is usually to have that child's inheritance go into what is commonly called a "spendthrift" trust.  I prefer the term "protection" trust just because it sounds kinder.  

In any case, using such a trust as a component of your estate planning is generally a wise approach when a child (or any beneficiary who is not a child) is in one or more of the following cicumstances:

• The child is irresponsible with money management, does not have a history of saving and investing, and there is a concern that your hard-earned estate will be wasted;
• The child has a history of creditor problems, actually hascurrent creditor problems, or you are reasonably certain that creditor issues will arise in the future based on the child's behavior;
• The child is in an unstable marriage where a divorce is more than likely...the trust can prevent the estate from becoming part of a divorce settlement process;
• The child is addicted to drugs, alcohol or gambling;
• The child has a history of being influenced by an overbearing spouse in regards to money management;
• The child belongs to a religious group or some similar organization and you do not want some/all of your estate to ultimately be donated to such a group;
• The child would be prone to "financial predators" and scam artists.

Please note that this is not always the best approach, but those of you with scary kids should discuss this issue with your estate planning attorney.  Otherwise, your child's inheritance may tragically disappear...and perhaps make your child's problem worse.

Participating in Special Needs Trust Webinar Today!

I'm looking forward to participating with Beth Manes, Esq. of New Jersey in a nationally-broadcast webinar on special needs trust planning today at 1pm EST.  

The webinar is being produced by Strafford Publications and it's not too late to register.  

Click here if you're interested!

Why the Average Age of Fraud Victims is 69!

Scams and fraud that target the elderly has been a problem for a very long time, and it's an increasingly bigger problem when the economy is in tough shape as it is now.  However, I was shocked to find out that the average age for all fraud victims is 69!

National Public Radio (NPR) ran a story this morning which looks at the sociological and psychological reasons for the elderly being prime fraud targets.  Click here for a fascinating read.

A Helpful Exception to Gifting Penalties Under Medicaid

Most people with elderly family members are somewhat familiar with the general gifting rules under the Medicaid (Title 19) program.  Namely, that if you make gifts during the 5 years leading up to a Medicaid application then there is going to be an eligibility problem.

Many people don't realize that there are certain exceptions to that general rule.  For example, gifts to a spouse or a disabled child is not a problem.  Nor is gifting real estate to a sibling or a caregiver child under certain circumstances.

However, there is an even less known excpetion to the general rule which is specific to Connecticut.  Connecticut General Statutes sections  17b-261a(c) and 17b-2610(c) indicate that the State can waive the imposition of a penalty period due to gifting if (1) the applicant currently suffers from dementia and cannot explain the disqualifying gift, (2) the applicant suffered from dementia at the time of the gift, or (3) the applicant "was exploited into making" the gift due to the applicant's dementia at the time of the gift.  

Clearly, the biggest obstacle to using this exception is proving, to the State's satisfaction, that the applicant is/was suffering from dementia.  But if you have medical records to back it up then this exception to the gifting rule may be available. 

 

 

Apple Harvest Festival 5K a Success!

Back on October 14th I had the pleasure of directing the Apple Harvest Festival 5K Road Race right here in Glastonbury, Connecticut, which I have done for the past four years.  

The race is presented by the Glastonbury Chamber of Commerce as a component of the weekend-long Apple Harvest Festival.

Despite the cool & drizzly conditions that morning we managed to draw over 460 runners for the 5K, a 1,000m youth race around Riverfont Park and a fun-run for the toddlers.  That was a record turnout for us and we're already looking forward to some serious upgrades to the 2013 edition of the race.  Click here for results.

I'm pictured below with Joe Aguiar, the weekday morning DJ at (one of my personal favorites) The River 105.9 FM.  We were honored to have Joe as our guest emcee.  He's fantastic when it comes to keeping kids entertained as they nervously await the start of their race!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective Care Plan Meetings

If you have a loved one in a nursing home then you will be invited to attend a quarterly meeting to discuss how your loved one is doing and determine what course her care should follow going forward.  These meetings are usually called "care plan meetings/conferences" and they are required if the facility accepts Medicaid and/or Medicare.  

These meetings should not be taken lightly.  You should attend the meeting if at all possible and you should go there fully prepared with a list of specific questions for the nursing home staff.  This is your best opportunity to voice your concerns and determine whether your loved one is getting the best possible care.  This is also your chance to provide the staff with background information that could prove helpful in formulating the care plan.

I have been appointed many times by local probate courts to act as the conservator for seniors when family members and friends are unable to do so.  This means I have attended innumerable care conferences and I usually pose the following questions to the staff:

Have there been any notable changes in the resident's condition since the last meeting?  If so, what was the cause?

Is the resident participating in the facility's recreational/social events?  If not, can steps be taken to facilitate his/her participation?

Have there been any visitors for the resident since the last meeting?  If so, have those visits been helpful or detrimental to the resident's spirits?

What specific therapies are being provided?

Is the resident short on any personal items (toiletries, clothes, reading material, etc.)?

These are some of the standard questions I usually ask.  However, every resident is different.  So I suggest asking the above-mentioned questions as well as questions that are specific to your loved one's situation.

 

 

Pulling with Pride

Keenan Law, LLC is proud to sponsor "Pulling with Pride".

This initiative will raise funds for veterans and active-duty members of the military (through give2thetroops.org and the VFW) as well as raise funds for the purchase of a new shell for the Glastonbury High School Crew Team.

The shell will be named "Valor". 

Please click here if you'd like to help out as well.

Small Social Security Bump

A  cost-of-living-adjustment means that Social Security recipients will get a 1.7% increase in retirement benefits for 2012, which should translate into an extra $21 per month.  

That's a minor bump compared to the 3.6% increase in 2012.

But don't lose sight of the big picture; the 2013 cost of Medicare Part B premiums will be announed later this month.  That cost increase might wipe out the Social Security income increase, and then some.  Stay tuned!