The Connecticut Elder Law Blog

"Where Do I Keep My Will?!"

This is one of those standard questions that nearly every client asks me after their will or living trust is finally executed, and it is a vitally important question.  I have more than enough stories about the angst and chaos that has ensued when families cannot locate the original will after a loved one passes.

Let me start out by saying that I'm not a fan of keeping your will in a safe deposit box at a bank even though most clients assume that such a box is the top candidate.  Unless you have someone else's name on the list as a signatory, it is very difficult (albeit not impossible) for someone else to gain access to the box.  Also, even if the family knows that you have a safe deposit box, it is sometimes difficult for the family to determine which bank and at which branch the box is located.  Those tiny, little keys don't really tell you anything...other than the fact that it opens a safe deposit box somewhere.

What I usually tell clients is that they should keep their wills wherever they keep their other important documents.  That location is different for every client, but if the family knows that all of the important stuff is in your file cabinet, or a strong box, or your bottom dresser drawer, or the freezer (I did have one client who argued that that was the most fireproof place in his house!) then it shouldn't be a problem for your loved ones to find your will upon your passing. 

Ideally, having your will in a strong box at home (with your other important documents) is the best arrangement since such boxes are usually fireproof.  But don't panic if you don't have one since the chances of a fire that completely destroys your house and everything in it are quite slim. You should also keep the box unlocked for ease of access. Trust me...a third party will have no interest in stealing your will since it has no value on the open market!

However, if you have one of those families in which good chemistry is somewhat lacking and there are some family members who may be motivated to destroy your will, then you may have to be a little more secretive.  In fact, the safe deposit box at the bank with a trusted person as a co-owner would probably be the best way to go in that type of situation.

DISCLAIMER: This blog does not offer legal advice, nor does it create an attorney-client relationship.  If you need legal advice, consult with a lawyer instead of a blog.

The Ever-Evolving Last Will & Testament

Many of my clients tend to procrastinate when it comes to finalizing their estate planning documents.  They struggle over who to appoint as guardians for the kids, or who should be the "back up" executor if the surviving spouse can't act, or who's going to end up with the tool collection.  Sometimes these questions can be tough ones and people "freeze up" and stress out over whether or not they're making the right decision.

As the estate planner I'm always concerned that the famous bus is going to run my clients over while the drafts of the wills sit on my desk unsigned.  So I try to gently nudge my clients along towards finalizing everything. 

One factor that I try to impress upon my clients is the fact that their wills are not set in stone; that my clients should conceptualize their wills as "evolving documents".  In other words, as developments occur in the family (if people pass away, someone becomes disabled, someone gets divorced, there's a "falling out", etc.) it is very easy to tweak the documents in order to address the new family situation.

I also emphasize that tweaking the documents ("amending" the documents, in legalese) is very easy and very inexpensive, assuming that the change is not overly-complicated.  I always keep the documents on my computer, or stored digitally, so re-printing the documents with a new date and a new name here or there is very easy. And there is nothing exotic about my law practice; this is the case with just about any law practice out there. 

So, don't stress out about it too much when you set up your will and other documents.  Make the best decision you can given the current circumstances and facts.  Then schedule a signing date with your attorney knowing that you can easily change things later if you need to. 

And remember that once your documents are signed you will experience a wonderful, liberating "peace-of-mind", and that's what estate planning is all about.

DISCLAIMER: This blog does not offer legal advice, nor does it create an attorney-client relationship.  If you need legal advice, consult with a lawyer instead of a blog.

Possible Tax Benefits for Caregiver Children

Perhaps you've made the extraordinary commitment of moving Mom or Dad (or both) into your house to live with you so that you could provide continuous care and keep them out of a nursing home.  If you made that commitment this year and have stuck with it this long then you are to be commended; it's a tremendous sacrifice and chances are that it turned out to be at least ten times harder than you thought it was going to be.  

Anyway, the purpose of this post is to let you know about a significant tax benefit that you should take advantage of.  One caregiver client recently commented that his experience with taking care of Dad at home is proof-positive that "what goes around comes around".  In other words, when he was a child he depended on Dad to take care of him, and now he's doing the same for Dad.

Just remember that the IRS rewards you when someone depends on you, so make sure you find out if you are eligible for a "dependency exemption" on your income tax return for taking care of Mom/Dad.  Also, if you have shelled out money for their medical expenses, then it may be possible to write those expenses off as well.

If you have an accountant you should call him/her to talk about the details.  Or if you live in the Hartford County area and you don't have an accountant but would like a referral please let me know.

DISCLAIMER: This blog does not offer legal advice, nor does it create an attorney-client relationship.  If you need legal advice, consult with a lawyer instead of a blog.

 

Medicaid's Little-Known "Caretaker Child" Rule

The Medicaid eligibility rules are voluminous and rather complicated (which is why I specialize in this area...it's sort of dangerous to dabble in it once in a while).  If you ever have trouble sleeping one night, you may want to flip through the State's Uniform Policy Manual which contains all of Connecticut's rules and policies regarding Medicaid.  Most of my clients know before they meet with me that they would be penalized for gifts they make that are close to the date that the apply for Medicaid.  They also know that there is a look-back period which was recently extended by new laws at the Federal level.  But very few of my clients know about the "Caretaker Child" rule (see §3028.10 A of the UPM ).  It's not a rule that applies to all of my clients, but you would be surprised how often it becomes relevant.

Contrary to popular opinion, the State of Connecticut does, in fact, have a heart.  The State has effectively decided that if a child moves in with mom or dad and then provides enough care to keep mom or dad out of a nursing home for the two-year period leading up to mom or dad's institutionalization, then the child deserves to own the house.  In other words, mom or dad is allowed to transfer ownership of the house to the caregiver child without any negative Medicaid ramifications.  DSS typically requires that mom or dad's physician submit a letter indicating that if it were not for the caretaker child's efforts then mom or dad would have been permanently placed in a nursing home at least two years ago.

The general rule is that you will probably have major Medicaid eligibility problems if you transfer your house to a non-disabled child within 5 years of applying for Medicaid.  The caregiver child rule is an exception to this general rule.

But please note that although this would be an "exempt transfer" under Medicaid rules, you will still have unfavorable gift tax and capital gains tax issues (to be addressed in more detail in future posts) to deal with.

So...remember that if want to protect your house and you have a child living with you and taking care of you, then you may have a very valuable Medicaid rule you can take advantage of.

DISCLAIMER: This blog does not offer legal advice, nor does it create an attorney-client relationship.  If you need legal advice, consult with a lawyer instead of a blog.

 

Glastonbury River Runners

I'm happy to annouce that I was fortunate enough to be elected to the Board of Directors for the Glastonbury River Runners at the club's Annual Meeting this past Sunday.

I have been a member of the club since its inception back in 2008 and it has been exciting to watch it grow and become a major facet of the local health & fitness community here in town. My hope is that my 27 years of running experience and my time spent on the Glastonbury Chamber of Commerce Board of Directors will allow me to help the club continue to be successful. 

Blizzard-Shmizzard!

One of the benefits of having the new home-based law practice is that I can get in a decent amount of legal work (minus time for snow maintenance duties!) regardless of how much snow is dumped on us, as long as I have a good pair of boots and a shovel. I suppose the power staying on is a big help too!

Keenan Law, LLC Hosting Elder Care Discussion

I'm on the Health & Wellness Council for the Glastonbury Chamber of Commerce, and the Council is launching its "180 Think" wellness campaign in February. As part of that campaign, I will be hosting a discussion titled "Elder Care Issues" at the new Keenan Law office. 

Caring for elderly family members is an enormous strain on many adult children and consequently impacts caregivers' health in a negative way. We will discuss the various issues for caregivers to consider in order to help the family be better prepared. 

The presentation is on February 23rd at 5pm at the Keenan Law office. Please contact the Chamber for details and to sign up. 

Our New Headquarters...

I'm thrilled to announce that we have moved the law firm from a large office complex near downtown Glastonbury to the charming village center of South Glastonbury, less than 5 miles south of our old site.

The new address is 787 Main Street, South Glastonbury, CT 06073. All of our other contact infomation, including the phone number, remains the same. 

 

 

Our single-floor, newly-renovated building is in a quiet spot, set well back from Main Street. We are the only occupants of the building and parking is a cinch. In fact, clients with mobility challenges will be happy to find that they can pull right up to the front door of the office and be inside after just a few steps (although I am still happy to make house calls for homebound clients!). 

This is also a home-based office. My wife and I have spent the last four months converting our old, beat-up garage into the new home for Keenan Law. The building is detached far from the house and 100% devoted to the law practice. Yet clients will still enjoy a warm and comfortable environment as we discuss their legal concerns. 

If you're an existing client then please give us a call. We'd love to show off our new home with a 30-second tour and then catch up on any new developments on your end. And new clients are always welcome (of course)! Just give us a call at (860) 657-2683.

Click here to see a photo album of the building's evolution from "nasty garage" to "cute little law office".  

Firecracker 5K!

The law practice was a proud Silver Sponsor of the Firecracker 5K Road Race last weekend here in Glastonbury, CT.  It was the first time that all three of my boys ran in a road race together (first-ever race for the 8 year-old), so Daddy was proud!  Here's a post-race shot of us with the Keenan Law banner...

 

 

I also had the pleasure of directing the Kids' 1/4-mile Fun Run before the big 5K.  Geez, and I thought keeping track of developments in Medicaid eligibility rules was difficult!...

 

 

Carry Your Advanced Medical Directives on Your Smart Phone

This may be the best "document maintenance" tip I've ever come across:  Keep a copy of your health care instructions (a.k.a. advanced medical directives) on your smart phone and have your health care agent do the same.

 

The health care document (a standard item in the estate planning "package") is what I would call an "emergency document" meaning that there may be a sudden and immediate need to use the document at any given time.  However, it's hard to have your original health care instructions on-hand at all times.  That's why having a PDF of the document on your smart phone can come in handy!

 

I can't quote a particular study, but I can state with confidence that a steadily growing number of my clients (of ALL ages, by the way!) carry smartphones with them just about everywhere.  This means that they have the ability to carry a copy of their advanced medical directives with them everywhere they go.

 

Please note that it's always better to have an original health care document on-hand.  That's because many doctors and hospitals get nervous when relying on something other than an original document.  But it's certainly better to have a PDF of the document on your phone than nothing at all. 

 

Of course, explaining how to get your health care instructions document onto your smart phone is beyond the scope of this post.  Click here for iPhones, and here for Android.    

 

DISCLAIMER: This blog does not offer legal advice, nor does it create an attorney-client relationship.  If you need legal advice, consult with a lawyer instead of a blog.