Social Security - Some Surprise Benefits

Social Security News

We are all generally aware of how Social Security works but when we assist in estate planning for clients there are many things to consider, especially if the client has been divorced. A few of the considerations follow:

• A widow or widower, at full retirement age or older, receives 100 percent of the worker’s basic benefit amount
• A divorced spouse of a worker who dies could get benefits just the same as a widower if the marriage lasted 10 years
• Note: remarriage can end the deceased spousal or former spousal benefits
• In one-earner families, the working spouse can “claim and suspend benefits” so that at full retirement age, he or she continues to work and “claims” benefits, then “suspends” benefits, which enables the non-working spouse to receive a spousal benefit
• In two-earner families, a surprising result can occur. If one worker takes social security at full retirement age (now 66 years old), that spouse can receive the monthly benefit and can continue working with no penalty. At full retirement age, his or her spouse can receive an amount equal to 50% of the spouse’s monthly benefit each month without affecting his or her ability to continue to work until age 70 at which time he or she can receive a substantially higher amount per month due to “delayed retirement credits.”
• A bigger surprise is that a former spouse (not remarried, where the marriage was at least ten years) at full retirement age can also receive an amount equal to 50% of the former spouse’s monthly benefit each month without affecting his or her ability to continue to work until age 70.

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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.

Durable Power of Attorney in RI

Will your Durable Power of Attorney Work for You?

We often hear that “avoiding probate” is a good thing and in most cases the statement is true. The probate that is “avoided” is usually post-death probate. Many people use revocable and irrevocable trusts or joint-asset and “transfer on death” planning in such situations. But it is surprising how many people fail to have a Durable Power of Attorney prepared. It is even more surprising to see how many of the documents that are drafted cause confusion or simply don’t work in the manner intended by the “grantor” of the power. Here is a list of “do-s” and “don’ts”:

1. Do make your Power of Attorney “durable” so it will survive your incapacity.
2. Do nominate a sensible person as your “attorney-in-fact” and as a successor.
3. Do consider whether the power should be contingent on future events (“springing”) or immediate.
4. Do discuss protecting your assets after your incapacity from an attorney-in-fact who will not fulfill your ultimate estate goals.
5. Do read the power carefully before you sign it. If it does not make sense to you it probably won’t make sense to banks, financial institutions and others when it is used in the future.

1. Don’t nominate a person who has serious health issues or is older than you.
2. Don’t hold the document for more than five years without re-reading it and having an attorney review it. Things change!
3. Don’t confuse everyone by leaving joint attorneys-in-fact with unclear statements as to their respective powers or their separate powers.
4. Don’t place powers regarding medical decisions in your document if you have already designated another person to exercise those same powers in your “medical durable power of attorney”.
5. Don’t put the signing of this document off to the future. Dollar for dollar, it is the least costly way to “avoid probate” since it can avoid the necessity of a guardianship during your lifetime.”

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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.

Elder Law Attorney in Newport RI

WE MAKE HOUSE CALLS.

WHY?

BECAUSE WE ARE “SELFISH!”

Elder care-givers and professionals know well that elders need (and deserve) “special treatment.” In our law office we don’t “rush them,” we enunciate clearly, we work at a slower pace. We respect them and don’t talk to them as if they are children. We listen carefully to their questions and comments. We also listen to their children but preserve their dignity when listening to their spokesperson. These practices follow common sense and are not unusual.

While we have handicapped ramps and an elevator at our office, we have decided to make house-calls. Why? Obviously, some elders don’t travel well or don’t travel at all. Despite the loss of time (and billable hours) to us, we will travel anywhere in Rhode Island to meet with clients and their family members. My father pointed out (often) that most of what appears to be “generous” is in fact “selfish.” We agree. We are in business. We want to meet more clients. We want clients to trust us and to accept us as their family advisors. We know that they are most comfortable on their “turf.” A cup of tea at the kitchen table often leads to good feelings on the part of the potential client who has become a “host.” Sometimes “selfish” motivations can work to benefit both client and attorney.

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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.

Ways to Help Your Parents or Spouse Discuss Long-Term Care Planning

This article was published on ElderLawAnswers.com and may have been included in our December newsletter. I thought it would be helpful for people as a starting place with regard to their elder parents and is worth reading if you missed it the first time!

Dad, Can We Talk? Answers to 9 Top Questions About Discussing Long-Term Care Planning

Last Updated: 7/27/2010 4:14:01 PM

Recently a reporter asked ElderLawAnswers founder and president, Harry S. Margolis, some questions for an article on talking with aging parents or other family members about sensitive issues such as wills, funeral arrangements, assisted living or medical treatment wishes. Here are the reporter's questions and Harry's answers.


1. At what point is it appropriate for grown children, spouses, caregivers or friends to attempt to discuss these issues with aging parents, relatives or friends?

The earlier the better, but every family is different, and raising these issues can be more or less uncomfortable depending on the family dynamics. Certainly, if there is an illness or medical emergency, that can serve as justification for beginning the discussion.


2. What's the best way to broach the subject?

Rather than focusing on the parent or other family member's current or possible future physical and mental decline, it often works better for the person starting the conversation to focus on his or her own concerns. She can say that she was meeting with her own estate planning attorney, which made her think about her parents situation. Or she can talk about how she is nervous about being able to care for her parents when and if the need comes up. Often parents won't take measures to protect themselves, but they never stop being parents and will respond to a call for help from a child.


3. Where's the best place to have such a discussion?

In the parent's home.


4. Should you seek legal counsel first before initiating a talk?

Not necessarily. A legal consultation would help the children or other family members know what issues to discuss and some of the available options. But the ultimate goal should be for the elder to consult himself or herself with an attorney with elder law experience.


5. Should it be one-on-one or should family members, friends or those with specific expertise in an area be part of the discussion?

That has to be determined on a case-by-case basis. We always encourage transparency so that all family members are in the loop. However, scheduling can be difficult and too many people involved can be overwhelming. In addition, depending on the circumstances, elder care and planning issues can take several meetings to resolve. Different people may be involved in different meetings depending on the issues being discussed at each.


6. What if your parent, spouse, etc., refuses to talk about these issues? How do you overcome this?

Follow the advice above. If it's a parent, the child may have to be patient and wait until an opportunity arises to bring the subject up again. Ultimately, it may be impossible to get the parent to participate in any planning. If it's a spouse, this is also true. However, a spouse may be able to take some planning steps on his or her own.


7. What steps can you legally take to prevent an elderly person from driving if they refuse to hand over their license or keys?

This depends on the state. In some states there are provisions for letting the registry of motor vehicles know of problem drivers. Where family pressure doesn't stop a senior from driving and dementia exists, some of our clients have been successful in disabling vehicles if the senior does not have the capacity to get it fixed.

8. What steps can you legally take if an elderly person such as a parent or spouse refuses to take care of issues dealing with a will, housing, medical treatment or related areas?

It depends on the parent or spouse's mental capacity. If they are incompetent, it is possible to go to court to be appointed conservator or guardian and to take over decisionmaking in these areas. Unfortunately, this can be an expensive, time-consuming and cumbersome process. (For more on guardianship and conservatorship, click here.)


9. What can seniors do in advance, to avoid becoming embroiled with grown children, relatives, or friends over these issues.

Plan ahead. All seniors should sit down with an elder law attorney to discuss their goals, concerns and hopes and to develop a plan to reach the goals, address the concerns and give their hopes the opportunity to become realities.


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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.

RI Probate and Joint Tenancy

OWNING REAL ESTATE AS JOINT TENANTS CAN BE RISKY OR COSTLY!

We have clients who ask us to transfer real estate to a child or children during their life-time in order to avoid probate and for other family reasons. This can cause undesirable tax results (capital gains) when the property is sold by the child or children in the future. Further, a joint tenant can sever the joint tenancy without notifying the other joint tenants which converts the nature of the tenancy to a “tenancy-in-common.”

The most famous decision illustrating this result is a 1980 California decision where a wife conveyed her joint interest to herself as a tenant in common before her death. Upon her death, her husband expected to own the property outright but owned it with his wife’s devisees under her will!

While Rhode Island uses a different form of joint holding by a husband and wife called a “Tenancy By the Entirety”, if another person is added as a joint owner, unexpected results can occur. The moral: “CounselFirst”!

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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.

United Way in RI and Newport Probate Attorney

August 2008 Newsletter

Here’s a new source of information: “United Way- 2-1-1.” Material about this free service was forwarded to me by a lawyer friend and fellow practitioner from Middletown- Cristina Offenberg. The material from the United Way of Rhode Island reads as follows:

2-1-1 is the fastest and easiest way to get information when you need it, 24 hours a day, 7 days a week. One call gives you access to resources across your community, whether you need to get help- for you, for a family member or for a friend- or want to help. No more wrong numbers, no more wasted time trying to find the right person to call.

Examples were listed: “daycare for your child, financial assistance for a utility bill, find a mental health counselor to help you in a crisis, or connect with any other community service.” Or, “If you are able to help others by donating your time as a mentor or volunteer or by donating food, clothing, toys, furniture, 2-1-1 is also for you.”

It sounds useful. Try it and let us know how helpful it is to you. “Cris” Offenberg stated in her email that other states were utilizing the same system so try it wherever you live.

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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 Elder Law Attorneys

Family Issues During Death of a Loved One

Very few events in life are more difficult to accept than the pending death or the actual death of a loved one. As elder-law attorneys and estate planners, we see too many cases where the siblings, or the spouses, or other significant heirs or beneficiaries of a person disagree regarding: pre-death care and housing; the choice of attorney-in-fact, personal representative or trustee of the family member; or the testator or grantor’s disposition of their estate contained in the will or trust itself.

Recently I have seen a number of cases where life insurance was left to one child with the intention that the child would use those funds for burial costs or to pay the last debts of the estate. “Family issues” arose and the funds were retained by the beneficiary against the wishes of the decedent. You can imagine the resulting turmoil within the family in any of these cases.

It is our desire to avoid such problems in the first place by planning well in advance of death, by reviewing a client’s entire estate including non-probate assets and by making certain that the representatives for the client will be able to fulfill the intentions of the client without a family feud.

Our complete analysis of your estate is done at a modest flat fee and “We make house-calls.”

Jeremy Howe
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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.