More and more seniors are living together without getting married. According to U.S. Census data, the number of cohabiting seniors nearly doubled between 1989 and 2000. For some seniors, marriage isn't financially worth it, they don't want to lose their former spouse's miligary pension or Social Security benefits. other seniors don't want to have to pay their partners' medical expenses or deal with the objections of children worried about their inheritance.
There are risks to cohabiting without marriage, however. You have no rights with regard to your partner's health care decisions. In addition, you may be considered "common law"" married by a court after you die possibly causing a dispute between your partner and your children. If you and your partner plan to live together without getting married, you can take a number os steps to ensure that you are protected and your wishes are followed.
SIGN A COHABITATION AGREEMENT: If you live in a state that recognizes common law marriage or even if you don't (some courts have recognized the rights of unmarried partners who lived together in non-common law states), you may want to enter into a cohabitation agreement with your partner. The agreement can state your intentions not to marry or to make any claims against each other. It can also specify the division of household expenses and what will happen to your house in the case of death or breakup. You should consult a lawyer for assistance in drawing up an agreement.
PROVIDE ACCESS TO HEALTH CARE DECISION MAKING: If you are not married, you have no right to participate in your partner's health care decisions or even, in some circumstances, to visit your partner at the hospital. to avoid this situation, you need several documents. You can sign a Health Insurace Portability and Accountability Act (HIPAA) medical release to allow each other access to the other's medical information. In addition, you should have a health care proxy and/or a durable power of attorney for health care, naming your partner as your agent to make health care decisions.
SIGN A DURABLE POWER OF ATTORNEY: A power of attorney allows your partner, or whomever you appoint, to make financial decisions for you if you become incapacitated. Without a power of attorney, the court will have to appoint a conservator or guardian to make those decisions and the judge may not choose the person you would prefer.
UPDATE YOUR WILL: You should be clear about what happens to your possessions when you die, including your house and its contents. It is particularly important to specify what will happen to your house if it is owned by only one partner.
Sunday, August 28, 2011
Saturday, July 9, 2011
Prenuptial Agreements Can Be An Estate Planning Tool
To learn more about prenuptial agreements visit our website at
As more and more people marry more than once, prenuptial agreements have become an important estate planning tool. Without a prenuptial agreement, your new spouse may be able to invalidate your existing estate plan. Such agreements are especially helpful if you have children from a previous marriage or important heirlooms that you want to keep on your side of the family.
A prenuptial agreement can be used in a second marriage when both parties have children. For example, suppose you get remarried and both you and your spouse have children from a prior marriage. You want your house to pass to your children, but without proper planning and an agreement in place, your spouse could inherit the house and then pass the house to her children when she dies.
It is important to make sure your prenuptial agreement is valid. Following are the major factors needed to ensure this:
In Writing - To be valid, a prenuptial agreement must be in writing and signed by both spouses. A court will not enforce a verbal agreement.
No Pressure - A prenuptial agreement will be valid if one spouse is pressured into signing it by the other spouse.
Reading - Both spouses must read and understand the agreement. If a stack of papers is put in front of one spouse and he or she is asked to sign quickly without reading, the agreement can be invalidated. The spouse must be given time to read the document and consider it before signing it.
Truth - Both spouses must fully disclose assets and liabilities. If either spouse lies or omits information about his or her finances, the agreement can be invalidated.
No Invalid Provisions - While spouses can agree to most financial arrangements, a prenuptila agreement modifies child support obligations is illegal. If an agreement contains a invalid provision, the court can either throw out the entire agreement or strike the invalid provision. Similarly, if the terms of the agreement are grossly unfair to one spouse, the agreement may be invalid.
Independent Control - Some states require spouses to seek advice from separate attorneys before signing a prenuptial agreement. Regardless of whether it is required by state law, it is the best way to make sure each spouse’s interest is protected.
Though a prenuptial agreement is an agreement that is signed before marriage, sometimes similar agreements can be made after wedding (called post-nuptial agreement).
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.http://www.ca-estatelawyer.net http://www.ca-estatelawyer.net or call for a free consultation at (818)905-0601or call for a free consultation at (818)905-0601.
As more and more people marry more than once, prenuptial agreements have become an important estate planning tool. Without a prenuptial agreement, your new spouse may be able to invalidate your existing estate plan. Such agreements are especially helpful if you have children from a previous marriage or important heirlooms that you want to keep on your side of the family.
A prenuptial agreement can be used in a second marriage when both parties have children. For example, suppose you get remarried and both you and your spouse have children from a prior marriage. You want your house to pass to your children, but without proper planning and an agreement in place, your spouse could inherit the house and then pass the house to her children when she dies.
It is important to make sure your prenuptial agreement is valid. Following are the major factors needed to ensure this:
In Writing - To be valid, a prenuptial agreement must be in writing and signed by both spouses. A court will not enforce a verbal agreement.
No Pressure - A prenuptial agreement will be valid if one spouse is pressured into signing it by the other spouse.
Reading - Both spouses must read and understand the agreement. If a stack of papers is put in front of one spouse and he or she is asked to sign quickly without reading, the agreement can be invalidated. The spouse must be given time to read the document and consider it before signing it.
Truth - Both spouses must fully disclose assets and liabilities. If either spouse lies or omits information about his or her finances, the agreement can be invalidated.
No Invalid Provisions - While spouses can agree to most financial arrangements, a prenuptila agreement modifies child support obligations is illegal. If an agreement contains a invalid provision, the court can either throw out the entire agreement or strike the invalid provision. Similarly, if the terms of the agreement are grossly unfair to one spouse, the agreement may be invalid.
Independent Control - Some states require spouses to seek advice from separate attorneys before signing a prenuptial agreement. Regardless of whether it is required by state law, it is the best way to make sure each spouse’s interest is protected.
Though a prenuptial agreement is an agreement that is signed before marriage, sometimes similar agreements can be made after wedding (called post-nuptial agreement).
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.http://www.ca-estatelawyer.net http://www.ca-estatelawyer.net or call for a free consultation at (818)905-0601or call for a free consultation at (818)905-0601.
Saturday, June 25, 2011
DAILY MONEY MANAGERS CAN HELP ASSIST SENIORS WITH FINANCIAL MATTERS
To learn more visit our website at http://www.ca-estatelawyer.net or call for a free consultation at (818) 905-0601.
Having difficulty keeping on top of your bills? Maybe a daily money manager can help. Daily money managers can assist elderly individuals with handling anything from routine bill - paying to more complicated tasks like filing medical insurance claims.
A daily money manager - a member of a relatively new profession that now has its own professional association - is an individual experienced in dealing with mundane financial matters that can build up if they aren’t taken care of. Money managers can aid seniors with physical limitations like arthritis or who are having difficulty keeping tract of their affairs. A money manager can also help adult children who are acting as caregiver for a parent and don’t have the time to devote to money management.
Some of the many tasks daily money managers perform include:
Paying bills
preparing checks
making bank deposits and reconciling bank accounts
dispensing cash
organizing tax documents
keeping track of medical insurance claims
reviewing and sorting mail
negotiating with creditors
tracking investments
In general, you do need to pay for this service. Daily money managers can cost between $30 to $100 an hour. However, you may be able to get a free consultation to determine if money management is right for you. In some states, the AARP offers daily money management services to low-income elderly individuals.
Author’s Note: visit our website at http://www.ca-estatelawyer.net or call for a free consultation at (818)905-0601
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.
Having difficulty keeping on top of your bills? Maybe a daily money manager can help. Daily money managers can assist elderly individuals with handling anything from routine bill - paying to more complicated tasks like filing medical insurance claims.
A daily money manager - a member of a relatively new profession that now has its own professional association - is an individual experienced in dealing with mundane financial matters that can build up if they aren’t taken care of. Money managers can aid seniors with physical limitations like arthritis or who are having difficulty keeping tract of their affairs. A money manager can also help adult children who are acting as caregiver for a parent and don’t have the time to devote to money management.
Some of the many tasks daily money managers perform include:
Paying bills
preparing checks
making bank deposits and reconciling bank accounts
dispensing cash
organizing tax documents
keeping track of medical insurance claims
reviewing and sorting mail
negotiating with creditors
tracking investments
In general, you do need to pay for this service. Daily money managers can cost between $30 to $100 an hour. However, you may be able to get a free consultation to determine if money management is right for you. In some states, the AARP offers daily money management services to low-income elderly individuals.
Author’s Note: visit our website at http://www.ca-estatelawyer.net or call for a free consultation at (818)905-0601
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.
Saturday, June 18, 2011
WHY YOU NEED TO PLAN FOR LONG-TERM CARE
http://www.ca-estatelawyer.net http://www.ca-estatelawyer.net or call for a free consultation at (818)905-0601or call for a free consultation at (818)905-0601
To learn more about long-term care planning visit our website or call us.
Thinking about a time when you will need help taking care of yourself is not fun. That is why most people put off discussing long-term care until it can’t be ignored. But it is better to start long-term care planning early. There are some reasons to start planning now:
People are living longer and are more likely to need long-term care. Life expectancies keep increasing, which means you are more likely to need help at some point. At least 70 percent of people over age 65 will require some long-term care services at some point in their lives, according to the U.S. Department of Health and Human Services.
Care expenses are high. Whether you receive care in a nursing home or at home, expenses are rising. According to the 2010 Metlife Market Survey of Long-Term Care Costs, in 2010 the average cost of a room in a nursing home was $83,585 a year and home care aides averaged $21 per hour. Those fiugures aren’t going to start going down.
Family caregivers may not be available. In more and more households, both partners work. In addition, children often move far away from their parents. This means that your adult children may not be able to easily take care of you when the time comes.
The earlier you plan, the better. By planning ahead, you may be able to preserve your assets instead of using them all up paying for long-term care. In addition, if you plan early, you may have more options for care.
To start planning for long-term care, talk to your elder law attorney. Planning steps may include executing advance directives and a power of attorney, putting assets in a trust, purchasing long-term care insurance, getting a reverse mortgage, creating a caregiver contract with an adult child, or transferring a house to children. Your attorney can help you figure out the best plan for you.
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.
To learn more about long-term care planning visit our website or call us.
Thinking about a time when you will need help taking care of yourself is not fun. That is why most people put off discussing long-term care until it can’t be ignored. But it is better to start long-term care planning early. There are some reasons to start planning now:
People are living longer and are more likely to need long-term care. Life expectancies keep increasing, which means you are more likely to need help at some point. At least 70 percent of people over age 65 will require some long-term care services at some point in their lives, according to the U.S. Department of Health and Human Services.
Care expenses are high. Whether you receive care in a nursing home or at home, expenses are rising. According to the 2010 Metlife Market Survey of Long-Term Care Costs, in 2010 the average cost of a room in a nursing home was $83,585 a year and home care aides averaged $21 per hour. Those fiugures aren’t going to start going down.
Family caregivers may not be available. In more and more households, both partners work. In addition, children often move far away from their parents. This means that your adult children may not be able to easily take care of you when the time comes.
The earlier you plan, the better. By planning ahead, you may be able to preserve your assets instead of using them all up paying for long-term care. In addition, if you plan early, you may have more options for care.
To start planning for long-term care, talk to your elder law attorney. Planning steps may include executing advance directives and a power of attorney, putting assets in a trust, purchasing long-term care insurance, getting a reverse mortgage, creating a caregiver contract with an adult child, or transferring a house to children. Your attorney can help you figure out the best plan for you.
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.
Saturday, June 11, 2011
BANK OF AMERICA SAYS POWER OF ATTORNEY DOES NOT GRANT ACCESS TO ONLINE BANKING
http://www.ca-estatelawyer.net/ or call for a free consultation at (818)905-0601
When one spouse suffers from dementia, the other spouse often must take over managing the couple’s finances, usually with the help of a power of attorney. But things don’t always go smoothly with financial institutions. Just ask Chicago resident Eva Kripke, who has been handling money matters since her husband, Sidney, was diagnosed with Lewy body dementia four years ago.
Acting as agent for her husband under a power of attorney, for years Ms. Kripke had been going online to check her husband’s Bank of America account and writing checks from it until one day in April when the bank suddenly changed its security procedures and she was blocked from accessing his online account unless she supplied his Bank of America credit card number.
Because of her husband’s dementia, Ms. Kripke had torn up the credit card several years previously, but she was able to obtain the card number from her local Bank of America branch. But that wasn’t enough - the bank also wanted the security code and the expiration date, neither of which she or the bank had. Without that, even though she had all the other information about her husband’s account, not to mention his power of attorney, she could not access it online.
"[The bank employees] told me that power of attorney was not accepted for online banking." Kripke told the Chicago Tribune’s "What’s Your Problem?" columnist, to whom she turned for help. "It did not matter that I had been accessing my husband’s account for several years. There was no way I could have access to my husband’s online account any longer."
Bank of America suggested Mrs. Kripke open a joint account with her husband, something her lawyer advised her not to do, saying it was better for the couple to keep their accounts separate. The bank also said she could go to her branch and get a printout of her husband’s account and even offered to have a bank employee drop one off at her house.
"That’s not satisfactory at all," said Mrs. Kripke, who noted that the deposits and payments for her husband’s 24-hour care often require daily oversight. "I don’t want to have to rely on constantly going over there. I doubt that someone would deliver it to me and I’d feel add asking them to do that."
The American Bar Association Journal picked up Mrs. Kripke’s story and asked its readers if they had any suggestions for her. So far, the leading ones are: 1. Report the credit card lost or stolen and get a new one, or 2. Find another, more accommodating bank. It can also sometimes help to use the financial institution’s own power of attorney form, although executing a different document for every bank one has an account with can be time-consuming, and it is likely impossible in Mrs. Kripke’s case now that her husband is incompetent.
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.
When one spouse suffers from dementia, the other spouse often must take over managing the couple’s finances, usually with the help of a power of attorney. But things don’t always go smoothly with financial institutions. Just ask Chicago resident Eva Kripke, who has been handling money matters since her husband, Sidney, was diagnosed with Lewy body dementia four years ago.
Acting as agent for her husband under a power of attorney, for years Ms. Kripke had been going online to check her husband’s Bank of America account and writing checks from it until one day in April when the bank suddenly changed its security procedures and she was blocked from accessing his online account unless she supplied his Bank of America credit card number.
Because of her husband’s dementia, Ms. Kripke had torn up the credit card several years previously, but she was able to obtain the card number from her local Bank of America branch. But that wasn’t enough - the bank also wanted the security code and the expiration date, neither of which she or the bank had. Without that, even though she had all the other information about her husband’s account, not to mention his power of attorney, she could not access it online.
"[The bank employees] told me that power of attorney was not accepted for online banking." Kripke told the Chicago Tribune’s "What’s Your Problem?" columnist, to whom she turned for help. "It did not matter that I had been accessing my husband’s account for several years. There was no way I could have access to my husband’s online account any longer."
Bank of America suggested Mrs. Kripke open a joint account with her husband, something her lawyer advised her not to do, saying it was better for the couple to keep their accounts separate. The bank also said she could go to her branch and get a printout of her husband’s account and even offered to have a bank employee drop one off at her house.
"That’s not satisfactory at all," said Mrs. Kripke, who noted that the deposits and payments for her husband’s 24-hour care often require daily oversight. "I don’t want to have to rely on constantly going over there. I doubt that someone would deliver it to me and I’d feel add asking them to do that."
The American Bar Association Journal picked up Mrs. Kripke’s story and asked its readers if they had any suggestions for her. So far, the leading ones are: 1. Report the credit card lost or stolen and get a new one, or 2. Find another, more accommodating bank. It can also sometimes help to use the financial institution’s own power of attorney form, although executing a different document for every bank one has an account with can be time-consuming, and it is likely impossible in Mrs. Kripke’s case now that her husband is incompetent.
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.
Sunday, June 5, 2011
RESOLVING CONFLICTS BETWEEN CO-AGENTS ON A POWER OF ATTORNEY
Having a power of attorney over a family member is a big responsibility and sometimes it makes sense to share that responsibility with someone else. But when two people are names co-agents under a power of attorney, conflicts can arise. Unfortunately, if the conflict can’t be resolved, it may be necessary to get a court involved..
A power of attorney allows a person to appoint someone called an "agent or "attorney-in-fact"-to act in his or her place for financial purposes when and if the person ever becomes incapacitated. A power of attorney can name one agent or it can require two or more agents to act together.
If you are acting as a co-agent under a power of attorney, but you and your fellow agent disagree on a course of action or one party has stopped participating in decision making, what can you do? The first thing is to check the wording of the power of attorney document to see if it sets up a procedure for resolving disputes. If the power of attorney itself doesn’t help, you should contact an elder law attorney. The attorney can tell you if your state’s power of attorney laws offer any guidance. There may be a state statute that deals with disputes.
If the dispute still cannot be resolved, the final step may be to file a petition in probate court to let the court decide it. Or if the court finds that one of the agents is not acting according to the incapacitated person’s best interest, it can revoke the agent’s authority.
Unfortunately, taking the matter to court takes time and money.
If you are creating a power of attorney and want more than one agent to share responsibility, but want to minimize conflict, you can name two agents and let the agents act separately. Naming more than two agents can get cumbersome and make communication difficult. An alternative to naming co-agents is for the power of attorney document to name agents in sequence. The first named agent acts alone, but if she cannot serve for some reason, the next person on the list will serve.
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.http://www.ca-estatelawyer.net or call for a free consultation at (818)905-0601
A power of attorney allows a person to appoint someone called an "agent or "attorney-in-fact"-to act in his or her place for financial purposes when and if the person ever becomes incapacitated. A power of attorney can name one agent or it can require two or more agents to act together.
If you are acting as a co-agent under a power of attorney, but you and your fellow agent disagree on a course of action or one party has stopped participating in decision making, what can you do? The first thing is to check the wording of the power of attorney document to see if it sets up a procedure for resolving disputes. If the power of attorney itself doesn’t help, you should contact an elder law attorney. The attorney can tell you if your state’s power of attorney laws offer any guidance. There may be a state statute that deals with disputes.
If the dispute still cannot be resolved, the final step may be to file a petition in probate court to let the court decide it. Or if the court finds that one of the agents is not acting according to the incapacitated person’s best interest, it can revoke the agent’s authority.
Unfortunately, taking the matter to court takes time and money.
If you are creating a power of attorney and want more than one agent to share responsibility, but want to minimize conflict, you can name two agents and let the agents act separately. Naming more than two agents can get cumbersome and make communication difficult. An alternative to naming co-agents is for the power of attorney document to name agents in sequence. The first named agent acts alone, but if she cannot serve for some reason, the next person on the list will serve.
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.http://www.ca-estatelawyer.net or call for a free consultation at (818)905-0601
Friday, May 27, 2011
The Difference Between Alzheimer's Disease and Dementia
THE DIFFERENCE BETWEEN ALZHEIMER’S DISEASE AND DEMENTIA
http://www.ca-estatelawyer.net/ or call for a free consultation at (818)905-0601
Many people use the terms Alzheimer’s disease and dementia interchangeably, but they have very different meanings. Although dementia is a group of symptoms that include memory loss, the term itself doesn’t explain what is causing the symptoms. Alzheimer’s disease is the leading cause of dementia, but here are many other causes.
Dementia is a general term for memory loss that is severe enough to interfere with daily life. The signs of dementia may include forgetfulness, difficulty making plans, thinking ahead, or using language, as well as changing character traits, among other symptoms. Alzheimer’s disease accounts for 50 to 80 percent of dementia cases according to the Alzheimer’s Association, but there are other causes, including vascular dementia, Lewy body dementia, frontotemporal dementia, and Wernicke-Korsakoff syndrome. Some causes of dementia are treatable, so it is important to understand the cause.
Alzheimer’s disease is a partially hereditary disease that causes a loss of brain cells. The symptoms start out mild but grow progressively worse over time. There is no cure, but there are medications that can treat the symptoms and slow the disease’s progress. An early symptom of Alzheimer’s is difficulty learning new information. It can then progress to more severe symptoms such as forgetting names and places, disorientation, mood and behavior changes, and an inability to relate to others. Eventually, it can lead to the inability to talk, walk, or eat.
Dementia, whether caused by Alzheimer’s disease or some other underlying disease, is not part of normal aging. If someone you love is exhibiting signs of dementia, they should get immediate medical attention to understand what is causing it.
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.
http://www.ca-estatelawyer.net/ or call for a free consultation at (818)905-0601
Many people use the terms Alzheimer’s disease and dementia interchangeably, but they have very different meanings. Although dementia is a group of symptoms that include memory loss, the term itself doesn’t explain what is causing the symptoms. Alzheimer’s disease is the leading cause of dementia, but here are many other causes.
Dementia is a general term for memory loss that is severe enough to interfere with daily life. The signs of dementia may include forgetfulness, difficulty making plans, thinking ahead, or using language, as well as changing character traits, among other symptoms. Alzheimer’s disease accounts for 50 to 80 percent of dementia cases according to the Alzheimer’s Association, but there are other causes, including vascular dementia, Lewy body dementia, frontotemporal dementia, and Wernicke-Korsakoff syndrome. Some causes of dementia are treatable, so it is important to understand the cause.
Alzheimer’s disease is a partially hereditary disease that causes a loss of brain cells. The symptoms start out mild but grow progressively worse over time. There is no cure, but there are medications that can treat the symptoms and slow the disease’s progress. An early symptom of Alzheimer’s is difficulty learning new information. It can then progress to more severe symptoms such as forgetting names and places, disorientation, mood and behavior changes, and an inability to relate to others. Eventually, it can lead to the inability to talk, walk, or eat.
Dementia, whether caused by Alzheimer’s disease or some other underlying disease, is not part of normal aging. If someone you love is exhibiting signs of dementia, they should get immediate medical attention to understand what is causing it.
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.
Sunday, May 22, 2011
IS IT TIME FOR AN ESTATE PLAN TUNE UP?
Estate plans are great, but who will carry out your plan?
When is it time to update your trust or will?
Here is a straightforward list of events that would signal it is time to review your will or trust or contact us at :http://www.ca-estatelawyer.net or call for a free consultation at (818)905-0601.
1. You want to change your Guardian, Personal Representative, Executor, Trustee, or Successor.
2. You have not reviewed your estate plan within the last 12-36 months.
3. You want to change, add, or remove beneficiaries in your will or trust.
4. You want to change the amounts you give one or more beneficiaries.
5. You want to change what you give to one or more beneficiaries.
6. There has been a change in marital status for you or a member of your family.
7. There has been a birth or adoption of children or grandchildren.
8. There has been a significant change in health to you or a family member.
9. There has been a death to a person named in your will or trust.
10. There has been a significant change in the value of your estate.
11. There has been a change in the form of property ownership.
12. You moved to another state.
13. There have been significant changes in the tax law.
14. Children beneficiaries reach the age of eighteen.
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.
When is it time to update your trust or will?
Here is a straightforward list of events that would signal it is time to review your will or trust or contact us at :http://www.ca-estatelawyer.net or call for a free consultation at (818)905-0601.
2. You have not reviewed your estate plan within the last 12-36 months.
3. You want to change, add, or remove beneficiaries in your will or trust.
4. You want to change the amounts you give one or more beneficiaries.
5. You want to change what you give to one or more beneficiaries.
6. There has been a change in marital status for you or a member of your family.
7. There has been a birth or adoption of children or grandchildren.
8. There has been a significant change in health to you or a family member.
9. There has been a death to a person named in your will or trust.
10. There has been a significant change in the value of your estate.
11. There has been a change in the form of property ownership.
12. You moved to another state.
13. There have been significant changes in the tax law.
14. Children beneficiaries reach the age of eighteen.
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.
Sunday, May 15, 2011
CAREGIVER CONTRACTS: A GROWING PLANNING TREND FOR FAMILIES
Many people are willing to voluntarily care for a parent or a loved one without any promise of compensation. Even so, a growing number of people are entering into caregiver contracts (also called personal service or personal care agreements) with their family members. Having such a contract has many benefits. It rewards the family member doing the work. It can help alleviate tension between family members by making sure the work is fairly compensated. In addition, it can be a key part of Medicaid planning, helping to spend down savings so that the elder might more easily be able to qualify for Medicaid long-term care coverage, if necessary.
The following are some things to keep in mind when drafting a caregiver contract:
Meet with your attorney.
Caregiver’s duries.
Payment.
Taxes.
Other sources for payment. If the elder does not have enough money to pay his or her caregiver, there may be other sources of payment. A long-term care insurance policy may cover family caregivers, for example. Also, there may be state or federal government programs that compensate family caregivers. Check with your local Agency on Aging to get more information. Keep in mind that there are tax consequences.. The caregiver will have to pay taxes on the income he or she receives. Payment to the caregiver can either be made with a lump-sum payment or in weekly or monthly installments. For Medicaid purposes, it is very important that the pay not be excessive. Excessive pay could be viewed as a gift for Medicaid eligibility purposes. The pay should be similar to that other caregivers in the area are making, or less. To calculate a lump-sum payment, take the monthly rate and multiply it by the elder’s life expectancy. (Not that some states, Georgia for example, do not recognize the ability to create a lump sum contract based on life expectancy.) The contract should set out the cargiver’s duties, which can be anything from driving to the doctor’s appointment and attending doctor’s meetings to grocery shopping to help with paying bills. The length of the term of the contact is usually for the elder’s lifetime, so it is important to coverall possibilities, even if they are not currently needed. The contract can continue even if the elder enters a nursing home, with the caregiver acting as the elder’s advocate to ensure the best possible care. It is important to get your attorney’s help in drafting the contract, especially if qualifying for Medicaid is a goal.
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing Living Trusts, Special Needs Trusts, Powers of Attorney, Conservatorships, Probate, Probate Litigation, and Elder Abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.http://www.ca-estatelawyer.net or call for a free consultation at (818)905-0601 http://www.ca-estatelawyer.net or call for a free consultation at (818)905-0601
The following are some things to keep in mind when drafting a caregiver contract:
Caregiver’s duries.
Payment.
Taxes.
Other sources for payment. If the elder does not have enough money to pay his or her caregiver, there may be other sources of payment. A long-term care insurance policy may cover family caregivers, for example. Also, there may be state or federal government programs that compensate family caregivers. Check with your local Agency on Aging to get more information. Keep in mind that there are tax consequences.. The caregiver will have to pay taxes on the income he or she receives. Payment to the caregiver can either be made with a lump-sum payment or in weekly or monthly installments. For Medicaid purposes, it is very important that the pay not be excessive. Excessive pay could be viewed as a gift for Medicaid eligibility purposes. The pay should be similar to that other caregivers in the area are making, or less. To calculate a lump-sum payment, take the monthly rate and multiply it by the elder’s life expectancy. (Not that some states, Georgia for example, do not recognize the ability to create a lump sum contract based on life expectancy.) The contract should set out the cargiver’s duties, which can be anything from driving to the doctor’s appointment and attending doctor’s meetings to grocery shopping to help with paying bills. The length of the term of the contact is usually for the elder’s lifetime, so it is important to coverall possibilities, even if they are not currently needed. The contract can continue even if the elder enters a nursing home, with the caregiver acting as the elder’s advocate to ensure the best possible care. It is important to get your attorney’s help in drafting the contract, especially if qualifying for Medicaid is a goal.
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing Living Trusts, Special Needs Trusts, Powers of Attorney, Conservatorships, Probate, Probate Litigation, and Elder Abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.http://www.ca-estatelawyer.net or call for a free consultation at (818)905-0601 http://www.ca-estatelawyer.net or call for a free consultation at (818)905-0601
Saturday, May 7, 2011
RESPONSIBILITY FOR A DECEASED RELATIVE'S DEBT
RESPONSIBILITY FOR A DECEASE RELATIVE’S DEBTS
The loss of a loved one is tough to begin with, but if the loved one left debts behind, it can be even tougher. Family members generally should not have to pay for a decedent’s debts, but it is important to know your rights because collection agencies may target the decedent’s relatives.
Usually the loved one’s estate is responsible for paying any debts. If the estate does not have enough money, the debts will go unpaid. The debt collectors may not collect payment from relatives (unless they were co-signers or guarantors). However, if you are the spouse of a decedent, you may have responsibility for any debts that were jointly held. Depending on state law, some assets - such as a house or car - may be exempt from debt collection. You should talk to an attorney to determine your responsibilitiy, if any.
If a debt collector contacts you, give the collector the contract information for the personal representative (also called the "executor") who is handling the estate. It is the personal representative’s responsiblity to make sure all bills are paid. Whatever you do, do not give any personal information to debt collectors. Scam artists sometimes pose as debt collectors to prey on relatives.
If a debt collector won’t stop contacting you, send a certified letter to the collector saying you do not want to be contacted again. Once the collector receives the letter, the collector can contact you only to tell you that there will be no further contact or to inform you of a lawsuit. Report any problems with debt collectors to your state’s attorney general or to the Federal Trade Commission.
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.http://www.ca-estatelawyer.net or call for a free consultation at (818)905-0601
The loss of a loved one is tough to begin with, but if the loved one left debts behind, it can be even tougher. Family members generally should not have to pay for a decedent’s debts, but it is important to know your rights because collection agencies may target the decedent’s relatives.
Usually the loved one’s estate is responsible for paying any debts. If the estate does not have enough money, the debts will go unpaid. The debt collectors may not collect payment from relatives (unless they were co-signers or guarantors). However, if you are the spouse of a decedent, you may have responsibility for any debts that were jointly held. Depending on state law, some assets - such as a house or car - may be exempt from debt collection. You should talk to an attorney to determine your responsibilitiy, if any.
If a debt collector contacts you, give the collector the contract information for the personal representative (also called the "executor") who is handling the estate. It is the personal representative’s responsiblity to make sure all bills are paid. Whatever you do, do not give any personal information to debt collectors. Scam artists sometimes pose as debt collectors to prey on relatives.
If a debt collector won’t stop contacting you, send a certified letter to the collector saying you do not want to be contacted again. Once the collector receives the letter, the collector can contact you only to tell you that there will be no further contact or to inform you of a lawsuit. Report any problems with debt collectors to your state’s attorney general or to the Federal Trade Commission.
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.http://www.ca-estatelawyer.net or call for a free consultation at (818)905-0601
Saturday, April 30, 2011
MAKE SURE YOUR LIFE INSURANCE IS NOT TAXED AT YOUR DEATH
MAKE SURE YOUR LIFE INSURANCE IS NOT TAXED AT YOUR DEATH
Although your life insurance policy may pass to your heirs income tax-free, it can affect your estate tax. If you are the owner of the insurance policy, it will become a part of your taxable estate when you die. The current Federal Estate Tax exemption is $5 million and the tax rate is 35 % . This exemption is only in effect for the 2011-2012 tax years. After 2012 it is unknown at this time what the exemption and tax rate will be. You should make sure your life insurance policy won’t have an impact on your estate’s tax liability.
If your spouse is the beneficiary of your policy, then there is nothing to worry about. Spouses can transfer assets to each other tax-free. But if the beneficiary is anyone else (including your children), the policy will be part of your estate for tax purposes. For example, suppose you buy a $200,000 life insurance policy and name your son as the beneficiary. When you die, the life insurance policy will be included in your taxable estate. If the total amount of your taxable estate exceeds the estate tax exemption, then your policy will be taxed.
In order to avoid having your life insurance policy taxed, you can either transfer the policy to someone else or put the policy into a trust. Once you transfer a policy to a trust or to someone else, you will no longer own the policy, which means you won’t be able to change the beneficiary or exert control over it. In addition, the transfer may be subject to gift tax if the cash value of your policy (the amount you would get for your policy if you cashed it in) is more then $13,000. If you decide to transfer a life insurance policy, do it right away. If you die within three years of transferring the policy, the policy will still be included in your estate.
If you transfer a life insurance policy to a person, you will need to make sure it is someone you trust not to cash the policy. For example, if your spouse owns the policy and you get divorced, there will be no way for you to get it back. A better option may be to transfer the life insurance policy to a life insurance trust. With a life insurance trust, the trust owns the policy and is the beneficiary. You can then dictate who the beneficiary of the trust will be. For a life insurance trust to exclude your policy from estate taxes, it must be irrevocable and you cannot act as trustee.
If you want to transfer a current life insurance policy to someone else or set up a trust to purchase a policy, consult with your elder law attorney.
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.http://www.ca-estatelawyer.net/ or call for a free consultation at (818)905-0601
Although your life insurance policy may pass to your heirs income tax-free, it can affect your estate tax. If you are the owner of the insurance policy, it will become a part of your taxable estate when you die. The current Federal Estate Tax exemption is $5 million and the tax rate is 35 % . This exemption is only in effect for the 2011-2012 tax years. After 2012 it is unknown at this time what the exemption and tax rate will be. You should make sure your life insurance policy won’t have an impact on your estate’s tax liability.
If your spouse is the beneficiary of your policy, then there is nothing to worry about. Spouses can transfer assets to each other tax-free. But if the beneficiary is anyone else (including your children), the policy will be part of your estate for tax purposes. For example, suppose you buy a $200,000 life insurance policy and name your son as the beneficiary. When you die, the life insurance policy will be included in your taxable estate. If the total amount of your taxable estate exceeds the estate tax exemption, then your policy will be taxed.
In order to avoid having your life insurance policy taxed, you can either transfer the policy to someone else or put the policy into a trust. Once you transfer a policy to a trust or to someone else, you will no longer own the policy, which means you won’t be able to change the beneficiary or exert control over it. In addition, the transfer may be subject to gift tax if the cash value of your policy (the amount you would get for your policy if you cashed it in) is more then $13,000. If you decide to transfer a life insurance policy, do it right away. If you die within three years of transferring the policy, the policy will still be included in your estate.
If you transfer a life insurance policy to a person, you will need to make sure it is someone you trust not to cash the policy. For example, if your spouse owns the policy and you get divorced, there will be no way for you to get it back. A better option may be to transfer the life insurance policy to a life insurance trust. With a life insurance trust, the trust owns the policy and is the beneficiary. You can then dictate who the beneficiary of the trust will be. For a life insurance trust to exclude your policy from estate taxes, it must be irrevocable and you cannot act as trustee.
If you want to transfer a current life insurance policy to someone else or set up a trust to purchase a policy, consult with your elder law attorney.
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.http://www.ca-estatelawyer.net/ or call for a free consultation at (818)905-0601
Friday, April 22, 2011
YOU CAN'T OPT OUT OF MEDICARE WITOUT LOSING SOCIAL SECURITY JUDGE RULES
YOU CAN’T OPT OUT OF MEDICARE WITHOUT LEAVING SOCIAL SECURITY, JUDE RULES
Retirees cannot disenroll from Medicare Part A without also losing their Social Security benefits and refunding all the money paid to them, a federal judge has ruled.
The judge dismissed a case, Hall v. Sebelius, brought by three retired federal employees who have reached age 65 and are receiving Social Security Retirement benefits, but who would like to drop their Medicare Part A coverage, which pays for care in institutions like hospitals.
Anyone who has reached age 65 and who is entitled to Social Security benefits is also automatically entitled to Medicare Part A without change. However, the three plaintiffs, one of whom, is former Republican House Majority Leader Dick Armey, wanted to drop their Medicare coverage because they claimed it threatened their coverage under the Federal Employees Health Benefit (FEHB) program, which they said was superior. They argued that the Medicare law allows them to drop out of the program without losing their Social Security benefits.
In her March 16, 2011, ruling Judge Rosemary Collyer of the U.S. District for the District of Columbia acknowledged that the three retirees had a legitimate point that the law does not specifically say that avoiding Medicare Part A means losing Social Security benefits. But in examining the law that Congress enacted in 1965 creating the Medicare program, Judge Collyer found that "[r]equiring a mechanism for Plaintiffs and others in their situation to ‘dis-enroll’ would be contrary to congressional intent, which was to provide ‘mandatory’ benefits under Medicare Part A for those receiving Social Security Retirement benefits."
The judge also pointed out that the plaintiffs would not gain much by renouncing their Medicare coverage. Even if they were to forego and repay all Social Security benefits, under the law "their FEHB-paid benefits would be no more, and no less, than what Medicare Part A would provide," Collyer wrote.
The ruling could have implications for the current court cases challenging the new health reform law. A central basis of these challenges is that the "individual mandate," the reform law’s requirement that all Americans have health coverage, is illegal because the government can’t compel citizens into economic activity. Judge Collyer’s ruling suggests that the government can’t compel citizens into economic activity. Judge Collyer’s ruling suggests that the government may already have been doing this in the area of health care for the past 46 years. Indeed, the Washington Times notes in an editorial that on February 22, "D.C. Federal District Judge Gladys Kessler cited preliminary rulings in Hall v. Sebelius to conclude that the [individual] mandate is allowable."
The plaintiff plans to appeal the decision.
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.http://www.ca-estatelawyer.net/ or call for a free consultation at (818)905-0601
Retirees cannot disenroll from Medicare Part A without also losing their Social Security benefits and refunding all the money paid to them, a federal judge has ruled.
The judge dismissed a case, Hall v. Sebelius, brought by three retired federal employees who have reached age 65 and are receiving Social Security Retirement benefits, but who would like to drop their Medicare Part A coverage, which pays for care in institutions like hospitals.
Anyone who has reached age 65 and who is entitled to Social Security benefits is also automatically entitled to Medicare Part A without change. However, the three plaintiffs, one of whom, is former Republican House Majority Leader Dick Armey, wanted to drop their Medicare coverage because they claimed it threatened their coverage under the Federal Employees Health Benefit (FEHB) program, which they said was superior. They argued that the Medicare law allows them to drop out of the program without losing their Social Security benefits.
In her March 16, 2011, ruling Judge Rosemary Collyer of the U.S. District for the District of Columbia acknowledged that the three retirees had a legitimate point that the law does not specifically say that avoiding Medicare Part A means losing Social Security benefits. But in examining the law that Congress enacted in 1965 creating the Medicare program, Judge Collyer found that "[r]equiring a mechanism for Plaintiffs and others in their situation to ‘dis-enroll’ would be contrary to congressional intent, which was to provide ‘mandatory’ benefits under Medicare Part A for those receiving Social Security Retirement benefits."
The judge also pointed out that the plaintiffs would not gain much by renouncing their Medicare coverage. Even if they were to forego and repay all Social Security benefits, under the law "their FEHB-paid benefits would be no more, and no less, than what Medicare Part A would provide," Collyer wrote.
The ruling could have implications for the current court cases challenging the new health reform law. A central basis of these challenges is that the "individual mandate," the reform law’s requirement that all Americans have health coverage, is illegal because the government can’t compel citizens into economic activity. Judge Collyer’s ruling suggests that the government can’t compel citizens into economic activity. Judge Collyer’s ruling suggests that the government may already have been doing this in the area of health care for the past 46 years. Indeed, the Washington Times notes in an editorial that on February 22, "D.C. Federal District Judge Gladys Kessler cited preliminary rulings in Hall v. Sebelius to conclude that the [individual] mandate is allowable."
The plaintiff plans to appeal the decision.
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network.http://www.ca-estatelawyer.net/ or call for a free consultation at (818)905-0601
Thursday, April 14, 2011
RESPONSIBILITY FOR A DECEASED RELATIVE'S DEBTS
RESPONSIBILITY FOR A DECEASED RELATIVE’S DEBTS
The loss of a loved one is tough to begin with, but if the loved one left debts behind, it can be even tougher. Family members generally should not have to pay for a decedent’s debts, but it is important to know your rights because collection agencies may target the decadent’s relatives.
Usually the loved one’s estate is responsible for paying any debts. If the estate does not have enough money, the debts go unpaid. The debt collectors may not collect payment from relatives (unless they were co-signers or guarantors). However, if you are the spouse of the decedent, you have responsibility for any debts that were jointly held. Depending on state law, some assets - such as a house or a car may be exempt from debt collection. You should talk to an attorney to determine your responsibility, if any.
If a debt collector contacts you, give the collector the contact information for the personal representative (also called the "executor") who is handling the estate. It is the personal representative’s responsibility to make sure all bills are paid. Whatever you do, do not give any personal information to debt collectors. Scam artists sometimes pose as debt collectors to prey on relatives.
If a debt collector won’t stop contacting you, send a certified letter to the collector saying you do not want to be contacted again. Once the debt collector receives the letter, the collector can contact you only to tell you that there will be no further contact or to inform you of a lawsuit. Report any problems with debt collectors to the state’s attorney general or the Federal Trade Commission.
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network http://www.ca-estatelawyer.net or call for a free consultation at (818)905-0601.
The loss of a loved one is tough to begin with, but if the loved one left debts behind, it can be even tougher. Family members generally should not have to pay for a decedent’s debts, but it is important to know your rights because collection agencies may target the decadent’s relatives.
Usually the loved one’s estate is responsible for paying any debts. If the estate does not have enough money, the debts go unpaid. The debt collectors may not collect payment from relatives (unless they were co-signers or guarantors). However, if you are the spouse of the decedent, you have responsibility for any debts that were jointly held. Depending on state law, some assets - such as a house or a car may be exempt from debt collection. You should talk to an attorney to determine your responsibility, if any.
If a debt collector contacts you, give the collector the contact information for the personal representative (also called the "executor") who is handling the estate. It is the personal representative’s responsibility to make sure all bills are paid. Whatever you do, do not give any personal information to debt collectors. Scam artists sometimes pose as debt collectors to prey on relatives.
If a debt collector won’t stop contacting you, send a certified letter to the collector saying you do not want to be contacted again. Once the debt collector receives the letter, the collector can contact you only to tell you that there will be no further contact or to inform you of a lawsuit. Report any problems with debt collectors to the state’s attorney general or the Federal Trade Commission.
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network http://www.ca-estatelawyer.net or call for a free consultation at (818)905-0601.
Saturday, April 9, 2011
AARP SUES GOVERNMENT OVER REVERSE MORTGAGE FORCLOSURES
AARP SUES GOVERNMENT OVER REVERSE MORTAGE FORECLOSURES
Charging that reverse mortgage borrowers were caught in what amounts to a regulatory bait and switch, the AARP’s legal arm is suing the Department of Housing and Urban Development (HUD) on behalf of three now-deceased borrower’s surviving spouses who are facing imminent FORECLOSURES and eviction from their homes.
The case involves the spouses of individuals who took out Home Equity Conversion Mortgage (HECM), which are the most widely available reverse mortgage and are administered by HUD. A reverse mortgage allows the homeowners who are at least 62 years old to borrow money on their houses. The loans do not have to be repaid until the last surviving borrower dies, sells the home, or permanently moves out.
The borrowers in the AARP case all died, leaving their spouses, who were not listed on the loan documents, living in the mortgaged homes. Because of the housing downtum, the homes are now worth less than the balance due on the reverse mortgage. None of the three spouses - residents in Indiana, New York, and Maryland - can obtain loans for more than their homes are worth and so are facing eviction.
Since 1989, HUD rules governing reverse mortgages have stated that a borrower or heirs would never owe more than the home was worth at the time of repayment. But at the end of 2008, the Bush administration abruptly changed this policy and said that an heir - including a surviving spouse who was not named on the mortgage - must pay the full mortgage balance to keep the home, even if it exceeds the value of the property. This, AARP says, violates existing contracts between reverse mortgage borrowers and lenders.
"HUD has illegally and without notice changed the rules in the middle of the game at the expense of vulnerable older people," said Jean Constatine-Davis, a senior lawyer with the AARP Foundation, the organization’s charitable unit.
A spouse might not be named on the mortgage for a number of reasons: one spouse may have taken out the reverse mortgage before the marriage, or one spouse may be under age 62 and ineligible, or, more likely, lenders often encourage the younger spouse not to be named as the borrower because then the loan amount can be bigger. AARP notes that perversely, under HUDs current rule a stranger can purchase the property for its current appraised value, but a surviving spouse cannot. The policy also negates a key purpose for which borrowers pay for insurance, AARP adds, pointing out that reverse mortgage borrowers have always paid insurance premiums to protect against going "underwater" - owing more than their homes are worth.
The suit charges that HUD is ignoring another provision of the HECM program that protects a surviving spouse from being arbitrarily displaced from the home upon the death of the borrower.
The suit charges that HUD is ignoring another provision of the HECM program that protects a surviving spouse from being arbitrarily displaced from the home upon the death of the borrower.
The suit charges that HUD is ignoring another provision of the HECM program that protects a surviving spouse from being arbitrarily displaced from the home upon the death of the borrower.
This is shameful and we intend to make HUD honor the representations and promises they made to borrowers when they signed up these government-insured loans, " Steven A. Skalet, of Mehri & Skalet, the law firm pursuing the case for the AARP Foundation. The case was filed in the Federal District Court for the District of Columbia. HUD had no comment on the pending litigation.
Nearly one-quarter of all mortgaged homes are underwater, according to CorelLogic, a housing data firm.
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network. http://www.ca-estatelawyers.net or call for a free consultation at (818)905-0601
Charging that reverse mortgage borrowers were caught in what amounts to a regulatory bait and switch, the AARP’s legal arm is suing the Department of Housing and Urban Development (HUD) on behalf of three now-deceased borrower’s surviving spouses who are facing imminent FORECLOSURES and eviction from their homes.
The case involves the spouses of individuals who took out Home Equity Conversion Mortgage (HECM), which are the most widely available reverse mortgage and are administered by HUD. A reverse mortgage allows the homeowners who are at least 62 years old to borrow money on their houses. The loans do not have to be repaid until the last surviving borrower dies, sells the home, or permanently moves out.
The borrowers in the AARP case all died, leaving their spouses, who were not listed on the loan documents, living in the mortgaged homes. Because of the housing downtum, the homes are now worth less than the balance due on the reverse mortgage. None of the three spouses - residents in Indiana, New York, and Maryland - can obtain loans for more than their homes are worth and so are facing eviction.
Since 1989, HUD rules governing reverse mortgages have stated that a borrower or heirs would never owe more than the home was worth at the time of repayment. But at the end of 2008, the Bush administration abruptly changed this policy and said that an heir - including a surviving spouse who was not named on the mortgage - must pay the full mortgage balance to keep the home, even if it exceeds the value of the property. This, AARP says, violates existing contracts between reverse mortgage borrowers and lenders.
"HUD has illegally and without notice changed the rules in the middle of the game at the expense of vulnerable older people," said Jean Constatine-Davis, a senior lawyer with the AARP Foundation, the organization’s charitable unit.
A spouse might not be named on the mortgage for a number of reasons: one spouse may have taken out the reverse mortgage before the marriage, or one spouse may be under age 62 and ineligible, or, more likely, lenders often encourage the younger spouse not to be named as the borrower because then the loan amount can be bigger. AARP notes that perversely, under HUDs current rule a stranger can purchase the property for its current appraised value, but a surviving spouse cannot. The policy also negates a key purpose for which borrowers pay for insurance, AARP adds, pointing out that reverse mortgage borrowers have always paid insurance premiums to protect against going "underwater" - owing more than their homes are worth.
The suit charges that HUD is ignoring another provision of the HECM program that protects a surviving spouse from being arbitrarily displaced from the home upon the death of the borrower.
The suit charges that HUD is ignoring another provision of the HECM program that protects a surviving spouse from being arbitrarily displaced from the home upon the death of the borrower.
The suit charges that HUD is ignoring another provision of the HECM program that protects a surviving spouse from being arbitrarily displaced from the home upon the death of the borrower.
This is shameful and we intend to make HUD honor the representations and promises they made to borrowers when they signed up these government-insured loans, " Steven A. Skalet, of Mehri & Skalet, the law firm pursuing the case for the AARP Foundation. The case was filed in the Federal District Court for the District of Columbia. HUD had no comment on the pending litigation.
Nearly one-quarter of all mortgaged homes are underwater, according to CorelLogic, a housing data firm.
Author’s Note:
Elise Lampert is an Estate Planning Attorney in Sherman Oaks handing living trusts, special needs trusts, powers of attorney, conservatorships, probate, probate litigation, and elder abuse matters. You can learn more about her practice at
Elise Lampert is a proud member of the AARP Legal Service Network. http://www.ca-estatelawyers.net or call for a free consultation at (818)905-0601
Tuesday, April 5, 2011
Elise Lampert Comments on Asset Protection - It's Not Just for the Wealthy
What Is Asset Protection Planning?
Asset Protection planning is about protecting your assets from creditors - and is not just for the super-wealthy.
Anyone can get sued. Lawsuits can stem from car accidents, credit card debt, bank foreclosures, or unhappy customers, among many other things. If someone wins a monetary judgement against you, your family could become bankrupt trying to pay it off. To keep your assets away from creditors, you need to move them somewhere creditors can’t reach them. Asset protection techniques include maximizing contributions to IRAs, moving funds to an irrevocable trust, retitling various assets, or using limited liability companies or family limited partnerships.
To develop an asset protection plan, you need to talk to an attorney. Your attorney can discuss your short - and long-term financial goals and help you to create a plan that will work for you.
It is important to note that asset protection planning only works if you act before you are sued. Under the law, you may not defraud current creditors. If you are already being sued or if you know you are going to be sued and you transfer assets so that creditors can’t reach them, the court will reverse the transfer. That is why it is a good idea to put a plan into place now - before it is too late.
Asset Protection planning is about protecting your assets from creditors - and is not just for the super-wealthy.
Anyone can get sued. Lawsuits can stem from car accidents, credit card debt, bank foreclosures, or unhappy customers, among many other things. If someone wins a monetary judgement against you, your family could become bankrupt trying to pay it off. To keep your assets away from creditors, you need to move them somewhere creditors can’t reach them. Asset protection techniques include maximizing contributions to IRAs, moving funds to an irrevocable trust, retitling various assets, or using limited liability companies or family limited partnerships.
To develop an asset protection plan, you need to talk to an attorney. Your attorney can discuss your short - and long-term financial goals and help you to create a plan that will work for you.
It is important to note that asset protection planning only works if you act before you are sued. Under the law, you may not defraud current creditors. If you are already being sued or if you know you are going to be sued and you transfer assets so that creditors can’t reach them, the court will reverse the transfer. That is why it is a good idea to put a plan into place now - before it is too late.
Monday, March 28, 2011
Elise Lampert Reports: 2011 Long-Term Care Insurance Price Index Announced
A 55 year-old individual can expect to pay $1,480.00 annually for $169,000 in current benefits, which would grow to $354,000 of coverage by age 80, according to the 2011 Long-Term Care Insurance Price Index, an annual report from the American Association for Long-Term Care Insurance, an industry group.
A 55 year-old couple purchasing long-term care insurance protection can expect to pay $2,350 per year (combined) for about $338,000 of current benefits, which would grow to about $800,000 of combined coverage for the couple when they turn age 80. If the 55 year-old couple did not qualify for preferred health discounts, but rather for standard rates as a result of having one or more health issues, their cost would increase by $325 annually.
The study found that rates for comparable coverage from leading insurers could vary by between 41 and 48 percent.
According to Association research, three-fourths (78 percent) of long-term care insurance policies are bought by couples where either both or just one spouse purchases coverage. The average age for individual purchasers is 57, with some 76.3 percent of purchases made between ages 45 and 64 according to the Association research.
The 2011 Price Index analyzed costs for couples ages 55, 60, and 65. In addition, for the first time, the analysis included a 3 percent compound inflation growth factor versus the 5 percent formula that has been used in prior studies. "More purchasers are opting for this formula which significantly reduces the cost of coverage and can be quite adequate in terms of future benefits," said Jesse Slome, the association’s executive director. The Price Index also looked at rates for policies including the newer Shared Care option where by two policyholders can each assess a combined pool of benefits.
Author's Note: Elise Lampert is an estate planning attorney in Sherman Oaks handling a myriad of trusts and estates planning matters and probate. You can learn more about her practice at http://www.ca-estatelawyer.net/ or call for a free consultation at (818) 905-0601. Elise Lampert is a proud member of the AARP Legal Services Network.
A 55 year-old couple purchasing long-term care insurance protection can expect to pay $2,350 per year (combined) for about $338,000 of current benefits, which would grow to about $800,000 of combined coverage for the couple when they turn age 80. If the 55 year-old couple did not qualify for preferred health discounts, but rather for standard rates as a result of having one or more health issues, their cost would increase by $325 annually.
The study found that rates for comparable coverage from leading insurers could vary by between 41 and 48 percent.
According to Association research, three-fourths (78 percent) of long-term care insurance policies are bought by couples where either both or just one spouse purchases coverage. The average age for individual purchasers is 57, with some 76.3 percent of purchases made between ages 45 and 64 according to the Association research.
The 2011 Price Index analyzed costs for couples ages 55, 60, and 65. In addition, for the first time, the analysis included a 3 percent compound inflation growth factor versus the 5 percent formula that has been used in prior studies. "More purchasers are opting for this formula which significantly reduces the cost of coverage and can be quite adequate in terms of future benefits," said Jesse Slome, the association’s executive director. The Price Index also looked at rates for policies including the newer Shared Care option where by two policyholders can each assess a combined pool of benefits.
Author's Note: Elise Lampert is an estate planning attorney in Sherman Oaks handling a myriad of trusts and estates planning matters and probate. You can learn more about her practice at http://www.ca-estatelawyer.net/ or call for a free consultation at (818) 905-0601. Elise Lampert is a proud member of the AARP Legal Services Network.
Monday, March 21, 2011
Do Surviving Spouses Have a Right to a 401(k) or an IRA?
Do Surviving Spouses Have a Right to a 401(k) or an IRA?
When choosing a beneficiary for a retirement plan, it is important to understand how your spouse will be treated under the plan. Surviving spouses are treated differently under 401(k)s and individual retirement accounts (IRAs). While 401(k) provides protections for a surviving spouse, an IRA does not.
Because the 401(k) is an employee-based retirement system, it is governed by a federal law, the Employment Income Security Act of 1974 (ERISA).
Under ERISA, a surviving spouse is usually the automatic beneficiary of a retirement plan (There may be some exceptions. For example, the spouse may have to be married to the employee for a certain amount of time). The spouse must consent in writing if the employee wishes to name someone else as the beneficiary.
IRAs, on the other hand, are not governed by ERISA, so they do not include the same protections for spouses. This is true even if a 401(k) is rolled into an IRA. In a recent case, Charles Schwab v. Debickero (U.S. Ct. App. 9th Cir., No. 07-15261, January 22, 2010) a husband rolled his 401(k) into an IRA with Charles Schwab & Company after he retired. He named his children as the IRA’s beneficiaries. After he died, his wife claimed that she was entitled to the account funds as his surviving spouse. She argued that because her husband rolled his 401(k) into the IRA, she should receive the same protections that the 401(k) gave her. The court disagreed, finding the IRAs are excluded from ERISA coverage even if the funds originated in a 401(k).
If you have an IRA and want your spouse to be its beneficiary, you have to specifically name the spouse as a beneficiary. If you have a 401(k) and want your spouse to be the beneficiary, you should still fill out a beneficiary designation form, naming your spouse. And if you roll it over into an IRA , make sure you fill out a new beneficiary designation form. If you want someone other than your spouse to be the 401(k) beneficiary, you will need the spouse’s consent in writing, as noted above.
Whether you have a 401(k) or an IRA, it is important to regularly check your beneficiary designations to ensure they are current.
Please contact our office to speak to an attorney about elder abuse concerns you may have.
Elise Lampert, Esq.
Elise Lampert Attorney at Law
15260 Ventura Blvd., Suite 2250
Sherman Oaks, CA 91403
Tel. (818)905-0601
Email:eliselampert@sbcglobal.net
www.eliselampert.com
When choosing a beneficiary for a retirement plan, it is important to understand how your spouse will be treated under the plan. Surviving spouses are treated differently under 401(k)s and individual retirement accounts (IRAs). While 401(k) provides protections for a surviving spouse, an IRA does not.
Because the 401(k) is an employee-based retirement system, it is governed by a federal law, the Employment Income Security Act of 1974 (ERISA).
Under ERISA, a surviving spouse is usually the automatic beneficiary of a retirement plan (There may be some exceptions. For example, the spouse may have to be married to the employee for a certain amount of time). The spouse must consent in writing if the employee wishes to name someone else as the beneficiary.
IRAs, on the other hand, are not governed by ERISA, so they do not include the same protections for spouses. This is true even if a 401(k) is rolled into an IRA. In a recent case, Charles Schwab v. Debickero (U.S. Ct. App. 9th Cir., No. 07-15261, January 22, 2010) a husband rolled his 401(k) into an IRA with Charles Schwab & Company after he retired. He named his children as the IRA’s beneficiaries. After he died, his wife claimed that she was entitled to the account funds as his surviving spouse. She argued that because her husband rolled his 401(k) into the IRA, she should receive the same protections that the 401(k) gave her. The court disagreed, finding the IRAs are excluded from ERISA coverage even if the funds originated in a 401(k).
If you have an IRA and want your spouse to be its beneficiary, you have to specifically name the spouse as a beneficiary. If you have a 401(k) and want your spouse to be the beneficiary, you should still fill out a beneficiary designation form, naming your spouse. And if you roll it over into an IRA , make sure you fill out a new beneficiary designation form. If you want someone other than your spouse to be the 401(k) beneficiary, you will need the spouse’s consent in writing, as noted above.
Whether you have a 401(k) or an IRA, it is important to regularly check your beneficiary designations to ensure they are current.
Please contact our office to speak to an attorney about elder abuse concerns you may have.
Elise Lampert, Esq.
Elise Lampert Attorney at Law
15260 Ventura Blvd., Suite 2250
Sherman Oaks, CA 91403
Tel. (818)905-0601
Email:eliselampert@sbcglobal.net
www.eliselampert.com
Tuesday, March 15, 2011
Lessons From Mickey Rooney - Elder Abuse - The Silent Crime
Mickey Rooney’s testimony in March, 2011 before congress is a poignant reminder that all of us may one day be vulnerable to elder abuse, celebrity or not. As we age, all of us become more dependant on our friends and loved ones to help support our daily lives. That support may be in the form of managing one’s financial affairs or tending to the physical needs of the body. If the designated agent doesn’t have the integrity of character or the strength of will to do "the right thing" by the vulnerable senior, that agent has no business being in charge of a senior’s care.
What safeguards can be put into place to help lessen the threat of elder abuse? First of all, know the people who are selected to help care for the senior. A background check should be completed which includes both a financial and criminal check. It may also be helpful to create a team of qualified people to help care for the senior. If more then one person is responsible for the senior’s care, the care givers are less likely to become overwhelmed and resentful of the senior. It is also helpful for a care giver to join a support group. In this forum, a care giver is able to discuss the burdens and hardships of being a care giver with others in a positive environment. This will have the effect of helping the care giver cope with tending to the needs of a dependent senior. It is not easy to grow old in our society nor is it easy to be the one responsible for taking care of a dependant, aging senior.
Please contact our office to speak to an attorney about elder abuse concerns you may have.
Elise Lampert, Esq.
Elise Lampert Attorney at Law
15260 Ventura Blvd., Suite 2250
Sherman Oaks, CA 91403
Tel. (818)905-0601
Email:eliselampert@sbcglobal.net
www.eliselampert.com
What safeguards can be put into place to help lessen the threat of elder abuse? First of all, know the people who are selected to help care for the senior. A background check should be completed which includes both a financial and criminal check. It may also be helpful to create a team of qualified people to help care for the senior. If more then one person is responsible for the senior’s care, the care givers are less likely to become overwhelmed and resentful of the senior. It is also helpful for a care giver to join a support group. In this forum, a care giver is able to discuss the burdens and hardships of being a care giver with others in a positive environment. This will have the effect of helping the care giver cope with tending to the needs of a dependent senior. It is not easy to grow old in our society nor is it easy to be the one responsible for taking care of a dependant, aging senior.
Please contact our office to speak to an attorney about elder abuse concerns you may have.
Elise Lampert, Esq.
Elise Lampert Attorney at Law
15260 Ventura Blvd., Suite 2250
Sherman Oaks, CA 91403
Tel. (818)905-0601
Email:eliselampert@sbcglobal.net
www.eliselampert.com
Gifts to Grandchildren - Plan Your Trust Estate and Save on Taxes
Consider Putting Gifts to Grandchildren in a Trust
Gifting assets to your grandchildren isn’t just a nice thing to do. It can reduce the size of your estate and the tax that will be due upon your death. Grandparents can give their grandchildren up to $13,000 a year (in 2011) without having to report the gifts. While you can made an outright gift, pay health care and school costs directly, or put the money in a custodial account, putting the money into a trust has some major advantages.
With the help of an attorney, you can draft a trust that reflects your express wishes about when the income and principal will be available to the grandchildren, and even how the funds will be spent. Transferring funds into such a trust offers the following benefits:
Although the trust owns the assets, you control them as trustee and can decide what type of investments to make.
Income earned by the trust from amounts that you’ve deposited will not be taxed to you; the trust pays the taxes.
Amounts deposited in trust, and the income earned from those funds, will be used for the benefit of your grandchildren.
You can provide that the trust terminate at any age you specify.
In order to qualify for these benefits, however, certain restrictions apply. These trusts are complex legal documents and should not be set up without the help of an experienced attorney. As a result, the chief downside of such trusts is the cost of establishing and maintaining them, which you should discuss with an attorney before going ahead with a trust.
As a final note on establishing such trusts, you must be totally comfortable with this gift planning strategy and the amount of money available to you in your estate. In short, you should only make gifts if you feeling certain that the amount of funds remaining in your name and the amount of income they will produce will be adequate for your needs.
Please contact our office to speak to an attorney about setting up such trusts.
Elise Lampert, Esq.
Elise Lampert Attorney at Law
15260 Ventura Blvd., Suite 2250
Sherman Oaks, CA 91403
Tel. (818)905-0601
www.eliselampert.com
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