House Sale Proceeds and Minor Children

ELDER LAW:
An elderly father and his adult son came to our office just after the mother had died. All three had been joint owners of property that was being sold and father and son had questions regarding the proceeds from the sale. Specifically, they wondered if they would be able to put all the proceeds in the son’s name. By doing so, they hoped to provide for the son since he was unemployed and enable the father to qualify for state assistance should he need future nursing home care.

We cautioned the father and son that any transfer of the father’s share of the proceeds to the son would have adverse consequences should financial assistance from the state be required before five years had passed. We also advised them that “gifting” would have tax implications. Our concern was that although the father wanted to help his son, he could be jeopardizing his own financial future.
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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.

Counsel First with Newport RI Estate Planning Attorneys

A Happier New Year to All

This is one of those years where most of us are happy to have endured the previous year from both personal and business viewpoints. Many of us and many of our friends and family members were challenged greatly in 2009. So following my mother’s dictates we now must “carry on” and we must “take life as it comes.”

In 2010 it behooves us to learn from last year and to move positively into the next year. Many of us start the year by taking stock and making resolutions. I decided to start the year in this newsletter by simply reciting our company mantra for all of our readers: “Counsel First.”

Forethought and preventative advice can avoid future legal difficulties. Unfortunately, many of our elder-law referrals come to us too late and there is little we can offer in the way of asset-preserving solutions. Advance planning is the key. We offer a very reasonably-priced and extensive “tune-up” conference for all clients (and their family members where appropriate) who want to look ahead into the uncertain future. We hope that you will resolve to get this done in 2010.

Jeremy Howe, Kristy Garside and Hilary Carlson.

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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.

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.

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.