Surprenant & Beneski, P.C.

Family Wealth Report – May 15, 2012

Joelle Mendes — Tue, 15 May 2012 12:17:32 +0000

Published by Surprenant & Beneski, P.C.

Providing Estate, Tax, Medicaid and Special Needs Planning

In This Issue

Feature Article – Q&A Recap on Medicaid

Recipe of the Week – Grilled Seafood Jambalaya Packs

S&B Recommends – Billy Lynn’s Long Halftime Walk by Ben Fountain

Dan’s Corner

Greetings,

We recently added a Q&A feature to our blog. We’ve gotten such a great response to it, we decided to feature a few of the questions here. Today’s topic is Medicaid. This is a very complex and confusing topic. Hopefully, we can help to make sense of this for you. However, please note that this information is to provide you with a basic understanding and does not constitute legal advice. If you are concerned about your own personal circumstances or those of a loved one, please call our office at 508-994-5200 to schedule a consultation. One of our attorneys will meet with you personally and advise you regarding your specific situation.

Memorial Day (and the unofficial beginning of summer) is right around the corner, which means it’s grilling season. Give today’s Grilled Seafood Jambalaya packs a try!

Until next time,

Dan

Upcoming Events & Important Information

COMING SOON — New Software for Family Wealth Report

Over the next several weeks, we will be transitioning to a new software for our Family Wealth Report. As part of this transition, you may be required to “opt in” to our email list in order to continue receiving this newsletter. We will notify you prior to launching the new software and will verify whether or not your “opt in” is required. We apologize in advance for any inconvenience.

Protect Your Family!: Don’t Write a Blank Check to the Nur$ing Home

Written by Attorney Michelle D. Beneski and ten other nationally-known elder law practitioners, the “Protect Your Family!” book gathers the collective wisdom of a dream team of leading elder law attorneys and breaks this down into layman’s terms, giving the reader the essential tools and knowledge for effective long-term care planning. Protect your family and your hard-earned assets before it’s too late.

To place an order contact our office directly at 508-994-5200.

Or order through Amazon.com by clicking here!

FREE Surprenant & Beneski Long Term Care Planning Seminars

“How To Get Your Ducks in a Row”

See the Calendar

Feature Article

Q&A Recap on Medicaid

Can’t I give away $10,000 before Medicaid will impose a penalty?

No! This is a very common myth! You are confusing the gift tax rule with the Medicaid rule. Under the federal gift tax law, any one person can give any other person up to $13,000 per year without having to file a gift tax return. The amount of the gifting allowed before having to file a gift tax return is set by law and may change each year. The amount was set at $10,000 for many years which is why many people think $10,000 is allowed to be gifted. I bet you didn’t even know there was such a thing as the gift tax. The federal government imposes a tax when you give property to someone. Medicaid is covered under a very different law. Under Medicaid, known as MassHealth in Massachusetts, the state imposes a penalty for each dollar you give away within the five years before you apply for Medicaid to pay for nursing home care.

Do I have to sell my home if I go into the nursing home and Medicaid pays for my care?

No! This is another common myth. As long as on your Medicaid application (MassHealth in Massachusetts) you check the box indicating you intend to return home you can keep your home even after you are approved for MassHealth. You can do this even if it is very unrealistic to think you could return home, as long as, you intend to return home if you are ever able. You don’t have to prove your intent. Now, once you are living in the nursing home and MassHealth is paying for your care, you will pay most of your income to the nursing home for your care. You’ll only be allowed to keep up to $2,000 in the bank (2012 figures in Massachusetts). Therefore, you probably won’t have enough money to cover the cost of home owner’s insurance, taxes, up-keep on the home, etc. We recommend to most of our clients that the home be rented to pay these expenses. Also, unless the home is somehow protected (see our website for ideas on how to protect your home), Medicaid will place a lien on your home. The purpose of the lien is to recover the costs paid by MassHealth for your care after your death. This lien may grow very large if you are in the nursing home for a long time. Once you die, your family will have to pay this lien off before distributing the home or sale proceeds to your heirs.

Can I keep my car after I go into a nursing home if Medicaid is paying for my care?

Yes, as long as your family is using the car to take you to doctor’s visits and out of the nursing home, then you can keep your car.

I have my savings and checking account joint with my daughter. Is it protected, if I have to go into a nursing home?

No. If you are applying for Medicaid (MassHealth in Massachusetts) any money in a joint bank account is considered yours unless your daughter can prove that she put the money in the account. You are only allowed to have up to $2,000 in the bank if you are going to apply for Medicaid. Now for some strange reason, brokerage accounts are treated differently. If you own your brokerage account jointly with your daughter, then half the money in the account will be considered your daughter’s and thus protected.

CLICK HERE to learn more about Medicaid or request our FREE guide on Medicaid and Medicaid planning strategies.

Recipe of the Week

Grilled Seafood Jambalaya Packs

Ingredients:

1 1/2 cups uncooked regular long-grain white rice
3 cups water
1 lb uncooked deveined peeled large shrimp, thawed if frozen, tail shells removed
1 lb sea scallops, thawed if frozen
1 can (14.5 oz) diced tomatoes with garlic and onions, undrained
1 medium green bell pepper, chopped (1 cup)
1 medium onion, chopped (1/2 cup)
3 to 4 teaspoons Cajun seasoning

Heat gas or charcoal grill. Cut 6 (18×12-inch) sheets of heavy-duty foil. Cook rice in water as directed on package. In large bowl, mix cooked rice and remaining ingredients. Place 1/6 of mixture (dividing shrimp and scallops evenly) on center of each sheet.

Bring up 2 sides of foil over shrimp mixture so edges meet. Seal edges, making tight 1/2-inch fold; fold again, allowing space for heat circulation and expansion. Fold other sides to seal.

Place packets on grill over low heat. Cover grill; cook 12 to 15 minutes, rotating packets 1/2 turn after 6 minutes, until shrimp are pink.

To serve, cut large X across top of each packet; carefully fold back foil to allow steam to escape.

S&B Recommends

Billy Lynn’s Long Halftime Walk by Ben Fountain

A ferocious firefight with Iraqi insurgents at “the battle of Al-Ansakar Canal”—three minutes and forty-three seconds of intense warfare caught on tape by an embedded Fox News crew—has transformed the eight surviving men of Bravo Squad into America’s most sought-after heroes. For the past two weeks, the Bush administration has sent them on a media-intensive nationwide Victory Tour to reinvigorate public support for the war. Now, on this chilly and rainy Thanksgiving, the Bravos are guests of America’s Team, the Dallas Cowboys, slated to be part of the halftime show alongside the superstar pop group Destiny’s Child.

Among the Bravos is the Silver Star–winning hero of Al-Ansakar Canal, Specialist William Lynn, a nineteen-year-old Texas native. Amid clamoring patriots sporting flag pins on their lapels and Support Our Troops bumper stickers on their cars, the Bravos are thrust into the company of the Cowboys’ hard-nosed businessman/owner and his coterie of wealthy colleagues; a luscious born-again Cowboys cheerleader; a veteran Hollywood producer; and supersized pro players eager for a vicarious taste of war. Among these faces Billy sees those of his family—his worried sisters and broken father—and Shroom, the philosophical sergeant who opened Billy’s mind and died in his arms at Al-Ansakar.

Over the course of this day, Billy will begin to understand difficult truths about himself, his country, his struggling family, and his brothers-in-arms—soldiers both dead and alive. In the final few hours before returning to Iraq, Billy will drink and brawl, yearn for home and mourn those missing, face a heart-wrenching decision, and discover pure love and a bitter wisdom far beyond his years.

About Surprenant & Beneski, P.C.

Daniel M. Surprenant, Esq.

I am a partner in the estate planning law firm of Surprenant & Beneski, P.C., focusing in the areas of estate, tax, Medicaid and special needs planning. I received my law degree in 1996 from Suffolk University Law School and my undergraduate degree in Economics from the University of Massachusetts at Amherst in 1991. I am licensed to practice in Massachusetts as well as before the United States District Court. I am proud to practice with my father, Bob Surprenant, and my sister, Michelle Beneski, in an area of law which is truly helpful to families.

The Benefit of Donating Stocks to a Non-profit

Brandon Walecka — Fri, 11 May 2012 12:58:19 +0000

As investments improve, donating stock or mutual funds to nonprofit organizations may be a great way to both help an organization you support but can also save you money at tax time, as well. Donating appreciated securities to a nonprofit organization can result in considerable tax advantages to taxpayers. By donating securities rather than simply write a check, you get the same tax deduction for gifts to charity but you avoid having to pay capital-gains tax on the securities’ price appreciation.

To learn more about how to donate stock and help determine if its right for your situation contact your financial adviser or tax professional to assist you in donating appreciated stock.

Are you worried about estate taxes? Click here to learn more about a very traditional estate avoiding technique which could help you remove particular assets from your estate and therefore avoid estate taxes.

Q&A Series: “If I receive a gift or an inheritance do I have to pay tax on it?”

Brandon Walecka — Wed, 09 May 2012 12:58:23 +0000

You do not have to pay income tax upon receiving a gift or an inheritance. However, if the value of the gift is over $13,000 then the person who gave you the gift must file a federal gift tax return. Gift tax returns are due April 15^th of the year after the year in which you made the gift. Usually, no gift tax is due. Why? Because under federal law, before you have to actually pay the gift tax, the amount gifted reduces the amount of estate tax exemption you have available at your death. What is the estate tax? It is a tax imposed on the value of property owned by someone at death. In 2012 the federal government exempts the first $5,000,000 in property before you have to pay any estate tax. Once you reach $5,000,000 the tax rate is 35%. Next year in 2013, the federal estate tax is scheduled to change to a $1,000,000 at a 55% rate!!! That is just crazy! Therefore, if someone gifts over $13,000 then that person files a gift tax return to report the gift to the federal government and when that person dies instead of having the full exemption amount, the person has the exemption amount less the amount gifted (Over $13,000). So, unless you gift more than the exemption amount, no gift tax is due. The estate tax is imposed on the deceased person so since you are the person inheriting the property you do not pay any tax under most circumstances.

Massachusetts does not impose a gift tax. Massachusetts does have an estate tax. Massachusetts exempts the first $1,000,000 in property owned by the decedent before imposing an estate tax.

Worried about estate and gift tax? Click here to learn more about how the attorneys at Surprenant & Beneski, P.C. can help you achieve your goals through traditional estate tax avoidance strategies.

Or, call our office at 508-994-5200 or click here to see if you qualify for a free, no obligation consultation.

The information contained in these blogs is not intended to make you an expert on estate planning nor are these blogs intended to replace the need for the advice of a professional. Rather, these blogs are simply intended to provide a basic understanding of why estate planning is important for everybody and a basic understanding of some of the more common estate planning tools.

Family Wealth Report – May 8, 2012

Joelle Mendes — Tue, 08 May 2012 13:48:01 +0000

Published by Surprenant & Beneski, P.C.

Providing Estate, Tax, Medicaid and Special Needs Planning

In This Issue

Feature Article – Provision in Will to Kill the Cat Found Invalid

Recipe of the Week – Honey Pecan Pork Chops

S&B Recommends – Heat Wave by Richard Castle

Michelle’s Corner

Hi,

This week’s article notes a case in Chicago where a provision in the decedent’s Will dictating the euthanization of her cat was found to be invalid. If you have pets and would like to provide for them upon your death, you can establish a Pet Trust. If you would like to discuss setting up one of these trusts, please call our office at 508-994-5200 to schedule an appointment.

Fans of the show Castle will enjoy our recommendation, Heat Wave, a great mix of mystery and comedy. And if you find yourself stuck for dinner options, try this week’s Honey Pecan Pork Chops. It doesn’t get much quicker or easier than this.

On a more personal note, last week, Zac Mendes, son of Case Manager Joelle Mendes, graduated from U.S. Marine boot camp. Zac has worked with us in the past and we’d like to congratulate him on his wonderful accomplishment. We have included a photo of PFC Z. T. Mendes below.

Enjoy your week!

Michelle

Upcoming Events & Important Information

COMING SOON — New Software for Family Wealth Report

Protect Your Family!: Don’t Write a Blank Check to the Nur$ing Home

To place an order contact our office directly at 508-994-5200.

Or order through Amazon.com by clicking here!

FREE Surprenant & Beneski Long Term Care Planning Seminars

“How To Get Your Ducks in a Row”

See the Calendar

Feature Article

Provision in Will to Kill the Cat Found Invalid

A Chicago judge has reversed a death sentence that has been hanging over Boots the cat for months. The feline’s owner, Georgia Lee Dvorak, died last Christmas Eve at age 76. Dvorak left no survivors, and her will, written in 1988, included a provision directing that any cat or cats she owned at the time of her death be euthanized “in a painless, peaceful manner.”

But trust officers at Fifth Third Bank, which was appointed to manage Dvorak’s $1.4 million estate, were reluctant to follow through on the will’s terms when it came to Boots, age 11.

Read more …

Recipe of the Week

Honey Pecan Pork Chops

Ingredients:

1 1/4 pounds boneless pork loin, pounded thin
1/2 cup all-purpose flour for coating
salt and pepper to taste
2 Tablespoons butter
1/4 cup honey
1/4 cup chopped pecans

Directions:

In a shallow dish, mix together flour, salt and pepper. Dredge pork cutlets in the flour mixture.

In a large skillet, melt butter over medium-high heat. Add chops, and brown both sides. Transfer to a warm plate.

Mix honey and pecans into the pan drippings. Heat through, stirring constantly.

Pour sauce over cutlets. Serve with fresh baked sweet potatoes and buttered broccoli.

S&B Recommends

Heat Wave by Richard Castle

A New York real estate tycoon plunges to his death on a Manhattan sidewalk. A trophy wife with a past survives a narrow escape from a brazen attack. Mobsters and moguls with no shortage of reasons to kill trot out their alibis. And then, in the suffocating grip of a record heat wave, comes another shocking murder and a sharp turn in a tense journey into the dirty little secrets of the wealthy. Secrets that prove to be fatal. Secrets that lay hidden in the dark until one NYPD detective shines a light.

Mystery sensation Richard Castle, blockbuster author of the wildly best-selling Derrick Storm novels, introduces his newest character, NYPD Homicide Detective Nikki Heat. Tough, sexy, professional, Nikki Heat carries a passion for justice as she leads one of New York City’s top homicide squads. She’s hit with an unexpected challenge when the commissioner assigns superstar magazine journalist Jameson Rook to ride along with her to research an article on New York’s Finest. Pulitzer Prize-winning Rook is as much a handful as he is handsome. His wise-cracking and meddling aren’t her only problems. As she works to unravel the secrets of the murdered real estate tycoon, she must also confront the spark between them. The one called heat.

About Surprenant & Beneski, P.C.

Michelle D. Beneski, Esq.

I am a partner at the family owned and operated law firm Surprenant & Beneski, P.C. with locations in New Bedford, Hyannis and Brockton, Massachusetts. I love helping families solve complex problems. Whether it is estate planning for a young couple or a retiree or crisis Medicaid planning when someone is about to go into a nursing home, our clients face difficult and complex decisions. We have created a special place here at Surprenant & Beneski that doesn’t look or feel like an impersonal law firm. What we do is very personal for clients. Our team is uniquely qualified to help find the right solution for each family.

Q&A Series: “What is a revocable living trust?”

Brandon Walecka — Mon, 07 May 2012 12:58:29 +0000

A revocable living trust is a trust which, according to the rules of the trust, the Grantor retains the right to change the terms of the trust at any time. This ability to change the trust makes the trust revocable. Also, the Grantor can demand the property in the trust back at any time. Generally, when someone creates a revocable living trust the Grantor is also the Trustee and beneficiary during the Grantor’s lifetime.

Revocable living trusts are created for several common reasons, such as avoiding probate and minimizing estate taxes.

Worried about estate and gift tax? Click here to learn more about how the attorneys at Surprenant & Beneski, P.C. can help you achieve your goals through traditional estate tax avoidance strategies.

Or, call our office at 508-994-5200 or click here to see if you qualify for a free, no obligation consultation.

Q&A Series: “What is an irrevocable trust?”

Brandon Walecka — Fri, 04 May 2012 12:58:43 +0000

An irrevocable trust is any trust in which the Grantor does not keep the right to demand the property in the trust back. A Grantor of an irrevocable trust may keep the right to make certain changes even though the trust is irrevocable. Irrevocable trusts are created for several different reasons. One reason is protecting assets from having to be spent on nursing home care or having a lien placed on a home if the Grantor applies for Medicaid. Another reason may be gifting property out of the Grantor’s taxable estate before the Grantor dies in order to reduce estate taxes. The terms of the irrevocable trust are determined by the goal of the Grantor in creating the trust. Thus the rules of an irrevocable trust created to protect a home from Medicaid must be very different than a trust created to reduce a person’s taxable estate. For more details on different terms in irrevocable trust you should review a description of that particular type of irrevocable trust.

Interested in learning more about Medicaid and how to plan for long-term care click here. Don’t let long-term health care costs drain in months what you saved a lifetime to achieve.

Need more information on Medicaid and Medicaid planning strategies request our FREE guide.

Or, call our office at 508-994-5200 or click here to see if you qualify for a free, no obligation consultation.

Q&A Series: What is an Irrevocable Medicaid Protection Trust?”

Brandon Walecka — Wed, 02 May 2012 12:58:16 +0000

What is an Irrevocable Medicaid Protection Trust?

An Irrevocable Medicaid Protection Trust is an irrevocable trust that is created for the purpose of protecting any property placed into the trust from (1) having to be spent on nursing home care for the person who created the trust (the Grantor) (2) having the property in the trust count as an asset when the Grantor applies from Medicaid, and (3) having the property placed in the trust be subject to “estate recovery.” Estate recovery is the process whereby Medicaid (MassHealth in Massachusetts) looks to be paid back for the care paid by Medicaid from the deceased person’s estate.

Irrevocable Medicaid Protection Trusts work particularly well for protecting real estate. Other assets such as cash and stocks can also be placed in an Irrevocable Medicaid Protection Trust as well, but it is not as advantageous as putting real estate into the trust.

The advantages of an irrevocable Medicaid protection trust are:

You retain control over your home.
The property cannot be sold, mortgaged or conveyed by the Trustee without the written permission of your Trust Advisor.
You have the right to live in the home for the rest of your life.
You retain the right to change who receives the property at your death.
While the property is in trust during your lifetime, your property is not at risk if your Trustee divorces, gets sued or declares bankruptcy.
You may remove or change the Trustee and/or beneficiaries.
You maintain all current income tax, capital gain’s tax and estate tax status.
You maintain the I.R.C. Section 121 capital gains tax exclusion.
Your children should get a step-up in basis on your death.
If the trust invests in rental property, the income would flow through the trust and be paid to you. The income would be taxable on your return.
You can continue to deduct real estate taxes on your personal income tax return.

The disadvantages of an irrevocable Medicaid protection trust are:

Although the income from the trust is available to pay for your care, you cannot take any principal out of the trust.
The transferring of property into the trust is a disqualifying transfer, with an associated five year look back period. You will not be approved for Medicaid to pay for your nursing home care if you apply within five years of putting your property into the trust.

Interested in learning more about Medicaid and how to plan for long-term care click here. Don’t let long-term health care costs drain in months what you saved a lifetime to achieve.

Need more information on Medicaid and Medicaid planning strategies request our FREE guide.

Or, call our office at 508-994-5200 or click here to see if you qualify for a free, no obligation consultation.

Family Wealth Report – May 1, 2012

Joelle Mendes — Tue, 01 May 2012 13:00:28 +0000

Published by Surprenant & Beneski, P.C.

Providing Estate, Tax, Medicaid and Special Needs Planning

In This Issue

Feature Article – 401(k) Fee Rules Changes Coming This Summer

Recipe of the Week – Coconut Beer Shrimp with Sweet & Tangy Sauce

S&B Recommends – Calico Joe by John Grisham

Dan’s Corner

Greetings,

I can’t believe that it’s already May 1st. This year is passing quickly. Before we know it, the kids will be out of school for the summer. We’ve been fortunate to have nice weather this Spring. I hope it continues.

Baseball season is in full swing, but you don’t have to be a baseball fan to enjoy this week’s recommendation, Calico Joe by John Grisham, a story of fathers and sons set in the world of Major League Baseball.

There are some changes coming this summer that will require companies who sponsor 401(k)s to disclose fee information. Being informed is a good thing, and these new disclosure rules are sure to give employers cause to “shop around” when deciding on their 401(k) provider. Read this week’s article for more information.

Until next time,

Dan

Upcoming Events & Important Information

COMING SOON — New Software for Family Wealth Report

Protect Your Family!: Don’t Write a Blank Check to the Nur$ing Home

To place an order contact our office directly at 508-994-5200.

Or order through Amazon.com by clicking here!

FREE Surprenant & Beneski Long Term Care Planning Seminars

“How To Get Your Ducks in a Row”

See the Calendar

Feature Article

401(k) Fee Rules Changes Coming This Summer

Workers will be able to learn how much the fees for their 401(k) plans are draining from their accounts when new disclosure rules go into effect this summer.

Beginning July 1, financial institutions that administer employer-sponsored defined contribution and pension plans will be required to disclose the fees and administrative costs they charge in a user-friendly format. The rules were initially scheduled to take effect this month but the U.S. Department of Labor delayed implementation from April to July to give providers more time to come into compliance.

Recipe of the Week

Coconut Beer Shrimp with Sweet & Tangy Sauce Recipe

Ingredients:

4 eggs
1 cup beer
3-1/2 tsp Creole seasoning (divided use)
1-1/4 cup all-purpose flour
2 Tbsp baking powder
48 large raw shrimp, peeled, tails on, deveined
1-1/2 to 2 cups fresh or moist-packed shredded coconut
Oil for deep-frying

Sweet and Tangy Sauce:

2 cups orange marmalade
1/4 cup Creole or Dijon mustard
3 Tbsp shredded horseradish

Preparation:

For the Shrimp:

Combine eggs, beer, 1 teaspoon Creole seasoning,flour and baking powder. Blend well. Season shrimp with remaining seasoning.

Dip the shrimp in beer batter and roll in coconut. Fry in oil heated to 350 degrees F in deep fryer, wok or deep saucepan. The oil should be at least 1-1/2 inches deep. Drop shrimp in a few at a time and fry until golden brown. Remove and drain on paper towel. Serve with Sweet and Tangy Dipping Sauce.

For the Sauce:

Blend together orange marmalade, Creole or Dijon mustard and horseradish.Yield: 6 servings

S&B Recommends

Calico Joe by John Grisham

Whatever happened to Calico Joe?

It began quietly enough with a pulled hamstring. The first baseman for the Cubs AAA affiliate in Wichita went down as he rounded third and headed for home. The next day, Jim Hickman, the first baseman for the Cubs, injured his back. The team suddenly needed someone to play first, so they reached down to their AA club in Midland, Texas, and called up a twenty-one-year-old named Joe Castle. He was the hottest player in AA and creating a buzz.

In the summer of 1973 Joe Castle was the boy wonder of baseball, the greatest rookie anyone had ever seen. The kid from Calico Rock, Arkansas dazzled Cub fans as he hit home run after home run, politely tipping his hat to the crowd as he shattered all rookie records.

Calico Joe quickly became the idol of every baseball fan in America, including Paul Tracey, the young son of a hard-partying and hard-throwing Mets pitcher. On the day that Warren Tracey finally faced Calico Joe, Paul was in the stands, rooting for his idol but also for his Dad. Then Warren threw a fastball that would change their lives forever…

In John Grisham’s new novel the baseball is thrilling, but it’s what happens off the field that makes CALICO JOE a classic.

About Surprenant & Beneski, P.C.

Daniel M. Surprenant, Esq.

Q&A Series: “What is a Trust?”

Brandon Walecka — Mon, 30 Apr 2012 12:58:22 +0000

A trust is a written agreement between the person(s) who creates the trust and the person who administers the trust as to how any property owned by the trust may be used. Basically, it is a written set of rules and instructions guiding how property owned by the trust is to be handled. The person who creates the trust is called one of the following: “Grantor,” “Trustor” or “Settlor.” Two people may create a trust together and then both would be Grantors. The person who administers the property in the trust according to the rules set down by the Grantor is called the “Trustee.” There may be more than one trustee. The person who benefits from / gets to use any property in the trust is called the “beneficiary.” There may be multiple beneficiaries of a trust. Additionally, a trust may be revocable or irrevocable depending on the terms of the agreement.

Q&A Series: “I have my savings and checking account joint with my daughter. Is it protected, if I have to go into a nursing home?”

Brandon Walecka — Fri, 27 Apr 2012 12:58:37 +0000

Interested in learning more about Medicaid and how to plan for long-term care click here. Don’t let long-term health care costs drain in months what you saved a lifetime to achieve.

Need more information on Medicaid and Medicaid planning strategies request our FREE guide.

Or, call our office at 508-994-5200 or click here to see if you qualify for a free, no obligation consultation.