Thursday, September 30, 2010

Newport RI Elder Law Attorney and Durable Power of Attorney Issue

Testimonial for Elder Law Attorney Jeremy Howe

Jeremy Howe, Newport RI ElderLaw Attorney met with a client recently regarding a family issue involving an attorney-in-fact using a Durable Power of Attorney improperly. After the meeting she wrote:

Thank you again for meeting with me yesterday regarding my family problem, especially on such short notice. I was very pleased with the information and advice you provided. You made it very easy for me to understand my legal standing regarding the concerns as well as the concerns of others who were involved.

Again, I can't thank you enough for the legal counsel and for the consideration you provided me. I especially admired your personable and informative, yet direct, approach regarding my family's specific needs.

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in Wills and Trusts, Estate Planning, Guardianship, Probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for Family Law issues such as Divorce, Child Custody and Visitation, Support, and Military Family Law. 

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Thursday, September 23, 2010

RI Elder Care and Probate Laws

New Rhode Island “laws-in-waiting” regarding Probate and Elders


We in Rhode Island have been living in a strange world when it comes to State (RI) estate taxes. If one died or dies after December 1, 2009 with less than $850,000 as a taxable estate, one would owe no estate taxes. It looks like an exemption on the first $850,000, doesn’t it? But if one dies after December 1, 2009 and has $850,001 as a taxable estate, one is currently taxed on the entire $850,001.

Only in Rhode Island do we see legal consequences like this one!

The legislature in its infinite wisdom is now trying to fix this problem by passing a bill retroactive to December 1, 2009 which will establish a $25,200 estate tax credit effectively eliminating the existing tax. (Senate Bill 2195, House Bill 7611 and House Bill 7612) Another Senate Bill (2115) would increase the estate tax exemption to $1,000,000 effective 1/1/2011 and further increases it to $2,000,000 effective 1/1/2012. The tax would then be eliminated beginning January 1, 2013. There are other offerings before our legislature.

We will keep you posted.

With thanks to CATIC (title insurance company) for helping us with these interesting “news-flashes”. I suggest that we all call our legislator(s) and urge them to clarify these issues and to make RI more business-friendly and taxpayer-friendly by eliminating the estate tax.

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in Wills and Trusts, Estate Planning, Guardianship, Probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for Family Law issues such as Divorce, Child Custody and Visitation, Support, and Military Family Law. 

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Wednesday, September 22, 2010

IRA Beneficiary Restrictions

The Use of Special Beneficiary Restrictions in an IRA

We now have a new tool in our legal planning toolbox. In the past, when we have found that a client-owner of an IRA has concerns regarding a beneficiary with special needs or a beneficiary who is “financially challenged” or who lacks capacity due to minority or other reasons, we immediately thought of a trust as a method of controlling the future use of the gifted funds. Some financial companies have developed a new IRA product called a “special beneficiary restriction”. The owner can divide an IRA and name a transfer-on-death traditional beneficiary (or beneficiaries) and a special beneficiary with the restrictions on the gift.

A special beneficiary designation is not intended for a spouse. An owner can name WHO will receive the IRA at death, HOW the money is to be paid and WHEN the restriction will be lifted in accordance with some simple rules and guidelines.

For example, the IRA can pay the beneficiary a restricted amount equal to the beneficiary’s “required minimum distribution (RMD) until age 50. At age 50, the restriction terminates (or if the account drops below $10,000 the restriction is removed). The owner can also designate an earlier age than 50 to remove the restriction.

A caveat is that the special beneficiary may be restricted as to his or her access to the funds but has full control regarding investment decisions. This tool can save the cost of drafting a trust and the annual costs associated with maintaining a trust.

Whether or not a special beneficiary restriction is right for you as an IRA owner depends on many factors which need to be reviewed in some depth. If you wish to discuss gifting of an IRA via a trust or a special beneficiary designation please call us for an office visit or schedule an “elderlaw-housecall” and we will come to you.


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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in Wills and Trusts, Estate Planning, Guardianship, Probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for Family Law issues such as Divorce, Child Custody and Visitation, Support, and Military Family Law. 

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Friday, September 10, 2010

RI Estate Tax Revision

I repeat: “Where is the Estate Tax Revision?”


In December I wondered in this newsletter whether our national legislators would pass legislation regarding Federal estate taxes. They did not. Where does this leave us? For the moment we estate planners and elder-lawyers are in limbo. If a client has already died in 2010 or if they die soon, there is no current estate tax. There is talk of remedial legislation that will be retroactive to January 1st. Wait till the litigators “get ahold of” that one!

For your information, there is some precedent that Congress can pass retroactive legislation in matters such as this (that affect the federal pocketbook) but we’ll wait and see. There is also talk that the current administration would like to give a “year off” from paying federal estate (and gift) taxes but it is hard to see how that is wise given the current national financial crisis. It would help very wealthy families and hurt less wealthy families who will pay capital gains taxes on inherited assets over $1.3 million dollars.

After 2010 the estate tax exemption will be one million dollars again and the estate tax rate will increase to 55%. That will affect many more families. Standard language found in many estate plans could leave spouses with nothing. It is important to you check with an elder law or estate planning attorney to make sure your estate plan does what you want it to do. Call us with any estate planning questions.

Jeremy Howe. Kristy Garside. Hilary Carlson. 841-5700

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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in Wills and Trusts, Estate Planning, Guardianship, Probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for Family Law issues such as Divorce, Child Custody and Visitation, Support, and Military Family Law. 

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Tuesday, September 7, 2010

Newport RI Elder Law Attorneys and RI Foundation

THE RHODE ISLAND FOUNDATION. WHAT CAN IT DO FOR YOU?


As a family planner, I try to stay on top of any and all resources which might assist my clients in meeting their goals. I recently met with a representative of the Rhode Island Foundation which is a non-profit foundation. The stated objective of the foundation is “to sustain and strengthen the quality of life for all Rhode Islanders” which of course is a noble goal. When the representative called, my first reaction was: “My clients are not rich so what can this foundation do for my clients?” I thought that the primary purpose of the foundation was to provide annual grants to Rhode Island entities from the foundation’s endowment. At our meeting I quickly learned that I knew little about the work of the foundation and that it could be useful for many of my clients.

Here is a short summary of some benefits of involving the foundation in your planning:

1. Cost-free consultations, information and resources regarding charitable planning and giving. (Not legal or tax advice but assisting that advice by your attorney)
2. Accepting and managing endowments for any amount in excess of $10,000
3. Receiving gifts in any amount to add to one of their 800+ funds
4. Reasonable costs (compared to other managing entities)
5. Assisting donors in making very specific donations, gifts or bequests, following through with the donor’s desires and supporting the gift
6. Supporting a “donor-advised fund” where you take an active role in selecting grantees each year (which can also be controlled by your children in the future)
7. Providing income to you or to another for your lifetime through an annuity or a charitable trust

The donor can chose the charity and can be very specific regarding the use of funds by the designated charity. You can honor or memorialize someone forever. The foundation can help you find the right charity to meet your goals. For example, you could establish a scholarship fund in someone’s name. The charity can be in another state as well as in Rhode Island.

For local clients, The Newport County Fund is a permanent endowment of the Foundation and you can direct the use of your endowment to the needs of Newport County. The Maher Center could be designated as a beneficiary, for example.

LET US KNOW IF YOU HAVE ANY QUESTIONS ABOUT THE BENEFITS OF CHARITABLE GIVING.


Jeremy, Kristy & Hilary
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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in Wills and Trusts, Estate Planning, Guardianship, Probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for Family Law issues such as Divorce, Child Custody and Visitation, Support, and Military Family Law. 

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Monday, September 6, 2010

Probate and Estate Attorney in Newport RI

"'In this world nothing can be said to be certain, except death and taxes." ~ Benjamin Franklin


After death, if there is no trust to avoid probate, a “personal representative” known as an executor (will) or an administrator (no will) is appointed by the Probate Court to execute or administer the estate. One aspect of a personal representative’s duties is often overlooked or forgotten entirely causing delay and penalties to the estate and possible liability. It is the responsibility of the personal representative to see that all taxes are paid. This may mean: a final tax return for the decedent; income tax return(s) for the estate itself; and estate tax returns (State and Federal). In the case of smaller estates in Rhode Island where the decedent held an interest in real property, it is necessary to file documents proving that you owe no state taxes to clear the title to the estate.

The personal representative should consult with the attorney for the estate and a qualified accountant to determine the best valuation date for the assets of the estate. There are other important accounting and tax decisions to be made as well. For example, in some cases it is wise to “disclaim” bequests in order to avoid taxes. [With thanks to the KLR tax report (July 2009) for reminding me of this important topic]


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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in Wills and Trusts, Estate Planning, Guardianship, Probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for Family Law issues such as Divorce, Child Custody and Visitation, Support, and Military Family Law. 

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.

Wednesday, September 1, 2010

Television Prepares for New Reality Shows

It recently came to my attention that television producers are developing two "reality" shows that deal with the distribution of a decedent's estate. The first, The Will, concerns a wealthy benefactor, still living, and the potential beneficiaries in his Will. As in the Survivor, there will be challenges and contests to determine who will be voted out and who will ultimately receive assets from the estate when the benefactor dies. The second, Estate Wars, reportedly will follow the heirs of a person, already deceased, as they fight over the assets of the estate.

While either show might appeal to TV audiences for the potential conflict and emotional scenes, most of us would prefer that our estates not be disbursed in such dramatic fashion. In fact, one of the most basic reasons for executing a Will in the first place is to avoid conflict and ensure that our assets are distributed as we desire.

Your Will is a statement that directs who will receive your property at your death and it appoints a legal representative to carry out your wishes. With a Will, you have the ability to choose the legal representative, your Executor, and to determine how your property is to be disbursed.

If you die intestate - without a Will - the state where you are domiciled will decide who receives the assets in your estate, not the participants in a TV show!
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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in Wills and Trusts, Estate Planning, Guardianship, Probate, and Veterans Aid and Attendance Benefits.

They also are Newport Rhode Island Divorce Lawyers, Attorneys, Mediators, and Arbitrators providing services for Family Law issues such as Divorce, Child Custody and Visitation, Support, and Military Family Law. 

Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.