Scams and our elderly clients: Some common swindles–ID Theft

 

 

ID theft: With the growing of the internet and all the different ways con artists work to get ahold of your private information, you must be incredibly careful with Identity theft.   Place outgoing mail in a secure collection box and remove incoming mail from your mailbox promptly. Get a shredder.. nothing that is in your trash should be considered safe.  Any personal information should be shredded before it is trashed.   Question any website that asks you for your passwords or bank account numbers.  Websites can be built to look like they are your real bank website - but in truth - they are there to take your information.  If it doesn't feel right..ask the question.. has my bank ever before asked me to go to a website just to confirm my password... We assure you - they haven't.  If in doubt.. call your bank, or whomever it is that is asking for your information.   To cut down on credit offers, call 888-567-8688 or go to http://www.optoutprescreen.com to opt out of mail credit offers. You will need to provide your Social Security number so they can match your request with your file - this is a legitimate request for your private information.

 

At Cohen Olican we take pride in protecting our clients. 

Superior Court Upholds MassHealth Applicant's Sale of Property to Daughter:

Part 2
A Summary of Clark v. Dehner

Superior Court Decision

The Superior Court overturned MassHealth's decision, finding that the transaction between Susan and Michelle was valid and should not be considered a disqualifying transfer. The Court determined that the transaction was for fair market value, and that the promissory note satisfied all of the regulations requirements, in that it was actuarially sound, provided for equal payments, and prohibited cancellation at Susan's death. The Court disagreed with MassHealth's determination that the note was not reasonably enforceable because the transaction had occurred between family members. The Court acknowledged that there was no guarantee that Susan would sue Michelle in the event that she defaulted on the note. However, the Court noted that it was inappropriate of MassHealth to assume that Susan would not seek to enforce the note by all available means.

Conclusion

Practitioners and clients should be encouraged by the Court's decision in Clark. The decision validates transactions between family members using promissory notes, which can be a valuable last-minute planning option for clients needing immediate long-term care in a nursing home. Clark also offers practitioners with a creative planning opportunity to cure disqualifying transfers into irrevocable trusts, while preserving the value of the transferred asset for the family. The decision is also an important step in reversing MassHealth's trend of dissallowing long-term care planning techniques between family members set into motion by the implementation of the DRA. However, even in light of this favorable decision, practitioners are urged to be cautious and draft promissory notes and related agreements between family members in strict accordance with MassHealth's regulations.

United States Treasury Regulations require us to disclose the following in connection with this message: Any tax advice included in this message and its attachments was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer.

Cohen & Oalican, LLP provide a full spectrum of services for the elderly, for disabled adults, and for the families.

Superior Court Upholds MassHealth Applicant's Sale of Property to Daughter: A Summary of Clark v. Dehner

Overview

The implementation of the Deficit Reduction Act (DRA) has made it increasingly complicated for families to protect their assets from the high costs of long-term nursing home care. Many planning options were curtailed by the DRA, and state Medicaid agencies are implementing the revised rules at a disadvantage to families seeking government benefits. However, a 2009 Massachusetts Superior Court decision has validated a planning option involving the fair market value sale of assets to family members.



Background

In May of 2005, George and Susan Clark established the George E. & Susan Clark
Irrevocable Trust. They were named as grantors and trustees of the trust. George and Susan transferred title to their home located in Marshfield into the trust on the date the trust was executed. The home's value at that time was approximately $412,000. The trustees of the trust were to hold the property for the benefit of George and Susan's children, Michelle Dionne and Kerri Poole. This transfer disqualified George from MassHealth benefits for a period of fifty-two months beginning on the date of the transfer.



In August of 2006, George entered the Walden Nursing Home, a long-term care facility. He suffers from a degenerative condition called Pick's Disease. As George's date of admission was during the aforementioned fifty-two month ineligibility period, an alternative planning strategy was implemented. This strategy involved curing the original transfer through the sale of a partial interest in the home using a promissory note and mortgage executed between Susan and Michelle.



Promissory Note

The MassHealth regulations allow applicants for long-term care to sell assets through the use of a promissory note and mortgage if the following conditions are met: 1) the repayment of the note is actuarially sound, 2) the promissory note provides for equal payments during the life of the loan, 3) the promissory note prohibits cancellation of the balance on the death of the lender. See 130 C.M.R. 520.007(G)(3). The regulations do not specifically prohibit such transactions from occurring between family members, as long as the sales are for fair market value and meet the above requirements. However, in recent years, MassHealth has taken the position that such transactions between family members are not reasonably enforceable, and therefore should be treated as disqualifying transfers.


George submitted an application for Medicaid benefits on October 31, 2007. Although the promissory note executed between Susan and Michelle satisfied all of MassHealth's regulatory conditions, as described above, George's application for benefits was denied. The hearing officer determined that Michelle's purchase of the property interest was a disqualifying transfer of assets, due in large part to the fact that it occurred between family members.

Tomorrow we will share the supreme court decision.

Cohen & Oalican, LLP provide a full spectrum of services for the elderly, for disabled adults, and for the families.

Review the Deed to Your Home - You Might be Surprised What it Says!

Did you know that how you own your home during your life determines who receives it upon your death? There are several ways a person can own a home. Therefore, there are different possible outcomes concerning who receives that house upon your death.

For most of our clients, the home is their most valuable asset. So, its often a big surprise when folks realize the deed will override a conflicting bequest in their will regarding the disposition of real estate. If you’re the only owner on the deed (meaning there are no other person identified as owners with you), then the real estate is a probate asset. This means that your will determines who receives that house when die. In that case, make certain your will represents your current wishes. Otherwise, that house could pass to that nephew you liked twenty years ago, but can’t stand any longer. By the way, if you don’t have a will, the state in which you live has one for you. That’s called “intestate” law and it’s a set of default rules about the who gets your property.

If you own a home with another person, the deed gets much more complicated. This is because deeds are chock full of old legal terms that can confound a homeowner. A good elder law attorney can explain the implications of the deed. However, to get a head start, look for certain terms in that deed.

Here’s a few critical terms to look for:

“Joint Tenants” - that means if you die, your share of the house automatically passes to the surviving other owners. In that case, it doesn’t matter what your will says, a joint deed determines where the house goes, not your will. One benefit of joint ownership is that it avoids probate. It’s a convenient way to pass on real estate as long as the joint owners are the persons you wish to receive your share of the property.

“Tenants-in-Common” is a deed which defers to your will. If you own your home as “tenants-in-common” with two other people and you die, your one-third of the house passes according to the terms of your will and not automatically to the other two owners of the house. The benefit of this type of ownership is that you can change who receives your share simply by signing a new will. The downside is that will must be probated with court to pass your interest in the real estate interest to your heirs.


Cohen & Oalican, LLP provide a full spectrum of services for the elderly, for disabled adults, and for the families.

Real Estate Tax Abatements

Real Estate Tax Abatements


Think your home is overvalued? If so, consider filing an application for a real estate tax abatement. A real estate tax abatement reduces the tax you pay on the value of your home. To obtain the abatement form, contact your town's tax assessor's office. This is an important first step because each of the 351 cities and towns in Massachusetts may have different forms. Most towns have their own website with instructions on how to complete the form.

Applications for abatements must be submitted by the due date of the first actual tax bill of the year. In communities that have quarterly tax bills, the application is due with the 3rd quarter tax bill, usually on February 1st. To meet the deadline, the application must be in the tax assessor's office by close of business day, or postmarked no later than the due date.

To determine if a bill is an actual tax bill or an estimated bill, the taxpayer should look on their bill for a property assessment value and a designated tax-rate. The application must be completed and filed by the current owner or their agent. Under certain circumstances other parties with an interest in the property may file the abatement. You should contact your assessor's office for any special rules that may apply.

Filing an abatement does not guarantee that your tax bill will be reduced. However, you won't know unless you ask. Remember the deadline is February 1, 2010. You can obtain additional information by clicking on the following link:

MA state website.

If you have any questions, please see our contact information below or visit our website: Cohen & Oalican.

Cohen & Oalican, LLP.
18 Tremont Street, Suite 903
Boston, MA 02108
Telephone 617-263-1035 x310
Fax 617-263-1038
scohen@cohenoalican.com