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• Is Mom Ready for Long-Term Care?

  

  James A. Miller in Medicare/Medicaid on Jun 29, 2011
  Tagged in: long-term care

  John’s mom, Mary, had always been fiercely independent. In the years since John’s dad passed away, Mary had insisted on living on her own, and had maintained a very active lifestyle. However, as she entered her eighties, John started noticing some changes.

  For one thing, his mom’s house started looking a little shabby. Nothing shocking or unsanitary, but the house was no longer as spic-and-span as she’d always kept it. Plus, the laundry started piling up, and John noticed that food was staying in Mary’s kitchen for a suspiciously long time – she wasn’t cooking for herself like she used to.

  John finally grew concerned enough to talk to his mother, and found out that she was getting tired much more easily than before, and she just wasn’t physically able to keep up with all of her household tasks. John explored the options, and the solution was rather simple – a home health aide was hired to come into Mary’s house and take care of the cooking, cleaning, and laundry for several hours each week.

  As our parents age, the potential need for long-term care becomes more of a reality. It’s easy to see that prospect as scary and unsettling, but it doesn’t have to be. Long-term care does not necessarily mean nursing home care. It actually encompasses a range of options, from in-home care to assisted living facilities to nursing homes.

  What’s important is to be aware of changes in your aging parent’s health and lifestyle, to educate yourself about the different types of long-term care that are available, and to be ready to step in and help your mom or dad make the transition to whatever form of care is needed when the time comes.

  If you’re concerned that your parent or another loved one is facing the need for long-term care, consider talking to an elder law attorney. He or she can help you understand the options and help you address another potentially daunting issue – paying for care.

  The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys. You may contact Attorney Miller at (508) 799-8885.

• Excess 529 education savings plan funds – what to do with them

  

  Todd Ratner in General Topics on Jun 29, 2011
  Tagged in: 529 plan

  A 529 Plan is an education savings plan designed to allow families to set aside funds for future college costs, while allowing these funds to grow tax-deferred and distributions to pay for the beneficiary’s college costs to be withdrawn federally tax-free. But, what happens when the beneficiary receives a college tuition scholarship?

  Typically, one would be responsible for income taxes and a 10% penalty on the earnings portion of the 529 withdrawals that are not used for qualified education expenses. However, there is an exception for tax-free scholarships.

  You can withdraw up to the amount of the scholarship without being responsible for the 10% penalty but you will still be responsible to pay ordinary income taxes on the earnings. 

  As most 529 Plans allow you the option of making withdrawals payable to the owner, the beneficiary or the school, Joe Hurley of SavingForCollege.com suggests that when taking a scholarship withdrawal, the money and the 1099 form reporting the withdrawal be sent to the student, who is likely in a lower income tax bracket than the owner of the plan. 

  Remember that you may use these funds for graduate school expenses or you may switch the beneficiary of the 529 Plan to another family member for their respective college expenses.

  Attorney Todd C. Ratner is an associate in the law firm of Bacon Wilson, P.C., with offices in Springfield, Massachusetts and other locations in Western Massachusetts.  Todd is a member of the firm's Estate Planning & Elder, Real Estate and Business & Corporate departments. He handles all aspects of estate planning, all types of commercial and residential closings for buyers, sellers and lenders, as well as general business matters.  You may reach Attorney Ratner at (413) 781-0560.

• Does Your Will or Trust Have to Be Recorded?

  

  James A. Miller in Estate Planning on Jun 22, 2011
  Tagged in: wills, trusts

  There’s a wide variety of rules that dictate whether your will or trust is valid and legally binding. For instance, a will has to be in writing, signed by you, and signed by the appropriate number of witnesses. And the witnesses shouldn’t be beneficiaries of your will.

  But one thing that is not required of your will or trust is that it be recorded or filed in any official location; at least not while you’re still alive. As long as your will or trust complies with all of the requirements set forth under state law, it is valid. There’s no need to go the extra step and file it at the courthouse. You’re free to keep it wherever you want to.

  That being said, when you’re choosing where to store your estate planning documents, you’ll want to choose a location that’s easily accessible by your loved ones in the event of your death. Even the most carefully crafted estate planning documents are no good to you and your loved ones if no one can find them.

  If you’re worried about whether your will or trust complies with state law, the best thing to do is to have it reviewed by an experienced estate planning attorney.

  The Law Offices of James A. Miller is a member of the American Academy of Estate Planning Attorneys. You may contact Attorney Miller at (508) 799-8885.