Losing the Forest for the Trees

Can't See the Forest Through the Trees?

This common quote means that if you are so engrossed in looking at individual trees, you might forget that each tree is one of thousands and thus lose sight of the big picture-the forest.

It is much the same in elderlaw. For example, if you focus on the rules of the VA in order to obtain Aid & Attendance Benefits, you can make a mistake and jeopardize your Medicaid eligibility in the future (if you should require assistance to remain in a nursing home).

In elder-law, the trees are Medicaid rules, estate & gift tax laws, income tax laws, VA Aid & Attendance rules, state Probate rules, state statutes and case law. The forest is the comprehensive view of a clients needs, goals, health, and desires or the estate plan of a client.

We saw an example this week. Our client's son and daughter had been advised to spend down their mothers assets by making gifts in the allowed annual amount of $13,000 so that she would qualify for Medicaid nursing home assistance in the future due to lack of assets.

Our clients advisors were confusing one tree (Medicaid allowable spend-down) with another tree (estate & gift tax law). Her gifts would disqualify her from receiving Medicaid assistance for five years from the date of the gifts due to the penalty period imposed by the Medicaid rules. Our client would never have had an estate tax issue because her assets would never reach $900,000, the approximate Rhode Island credit amount.

On the other hand, it was possible that she could run out of funds within the five years and need Medicaid assistance to remain in a nursing home but not be qualified for that assistance due to the penalty.

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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.

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.

Newport RI Probate and Estate Attorney Jeremy Howe and Associates

Reflections While Rehabilitating

As I write this monthly client note, I am reflecting upon the events of the past two weeks since my new hip replacement. My physical therapist just left my home and I am quite satisfied that I am cleared to climb the stairs to the second floor and to enter and exit the shower.

Since the operation, I have been on unfamiliar ground and have been required to make many decisions affecting my recovery. In making these decisions I turned to the “experts” involved in my care including physical therapists, occupational therapists and nurses. I knew that I would get the best advice from those who are on the “front line” of pain management, muscle strengthening and recovery from a major physical trauma.

As a result of those consultations, I did decide to delay the return to my home by taking advantage of a week of rehabilitation. Similarly, I followed their advice regarding all of the “small” decisions that came up every day. Should I get help putting my socks on or should I do it myself?

Some of this may sound minor but my point is that all of us probably would do better if we “Counsel first” with hands-on experts before we make life decisions, large and small.

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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.

A helpful tool for Estate Planning and “Advance Directives”

We often find that clients do not follow through with all aspects of their estate and post-death plan because they are reluctant to address their mortality. On the other hand, if clients do prepare a comprehensive plan, they often express a feeling of relief and satisfaction. The key word is “comprehensive.” What should a person consider when organizing their plan? Here is a partial list:

• Disposition of assets
• Payment of debts
• Funeral arrangements and special requests regarding the type of ceremony
• Anatomical gifts for science
• Anatomical gifts for transplants
• Living will provisions
• Disposition of personal property including gifts of specific items to family members and friends
• Charitable donations
• Tax consequences of gifts and bequests
• A family history or personal memoir

It can be a daunting task to organize all of the above matters. We suggest that you review all of these matters with an experienced estate planner and elder lawyer. We also suggest that you consider the use of The Beneficiary Book which is available in book form or in computer disc form. This book is a supplement to a personal or family estate plan. We buy the books and CDs in bulk and deliver them at our cost to clients. Our clients then add their own data and keep it up to date in the future.

Let us know if you would like to look at The Beneficiary Book. We think you will feel better if you leave the gift of a clear and well-organized plan for your family.


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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.