“The Massachusetts Chapter of the National Academy of Elder Law Attorneys (MassNAELA) has announced that Dan Surprenant has been elcted as a director of the organization for 2012.

“Surprenant is a partner with the law firm of Surprenant & Beneski, P.C. and practices estate planning, elder law and special needs planning with offices in New Bedford, Hyannis and Brockton.  he is also a member of the Board of Directors of the Massachusetts Forum of Estate Planning Attorneys, vice-chair of the SouthCoast Senior Resource Association and a past president of the Bristol County Bar Association.”

Congratulations Dan!  Just another way we at Surprenant & Beneski, P.C. show our commitment to seniors in our community.

Feature Article – Giving Your Home to Your Children Can Have Tax Consequences

Recipe of the Week – Super Bowl Menu

S&B Recommends – Super Bowl Party Games

Michelle’s Corner

Hi,

The Patriots are in another Super Bowl and I’m sure most of New England will be watching this weekend.  This week’s Recipe of the Week has some great ideas for Super Bowl Sunday.  Make one or all of them!  For those of you having people over, S&B Recommends some fun Super Bowl inspired games.

Many people call our office to ask about transferring their parents home to themselves.  Doing so can cause adverse consequences for the parents (MassHealth gifting penalties) to the children (tax liabilities).  This week’s article discusses some of the tax consequences that can be incurred.

Have a great week!

Michelle

Upcoming Events & Important Information

FREE Surprenant & Beneski Long Term Care Planning Seminars

“How To Get Your Ducks in a Row”

Our upcoming seminars are:

• Tuesday, February 7th, 6:30 pm to 8:00 pm at the Cape Codder in Hyannis
• Thursday, February 16th, 6:30 pm to 8:00 pm at the Taunton Inn in Taunton
• Thursday, February 23rd, 6:30 pm to 8:00 pm at Brandon Woods of Dartmouth in Dartmouth
• Tuesday, March 6th, 1:30 pm to 3:00 pm at the Cape Codder in Hyannis
• Thursday, March 15th, 6:30 pm to 8:00 pm at Kimwell Nursing & Rehab Center in Fall River
• Thursday, March 22nd, 6:30 pm to 8:00 pm at the Atria Assisted Living in Fairhaven
• Thursday, March 29th, 6:30 pm to 8:00 pm at the Taunton Inn in Taunton

To register click here or call toll free 1-800-929-0491, ext. 2.

Feature Article

Giving Your Home to Your Children Can Have Tax Consequences

Many people wonder if it is a good idea to give their home to their children. While it is possible to do this, giving away a house can have major tax consequences, among other results.

Read more…

Recipe of the Week

Individual Seven Layer Dip

Makes 8 servings

Ingredients

• 1 – 16 oz can refried beans
• 1 – 1 oz package taco seasoning
• 1 8 oz container sour cream
• 1 cup guacamole
• 1 cup pico de gallo or salsa
• 1 cup shredded Cheddar or Monterey Jack cheese
• 1 – 2.25 oz can black olives, chopped or sliced
• 1/2 cup green onions, chopped

Instructions

In a small bowl mix the refried beans and taco seasonings.

Spread the mixture into several small individual containers.

Next, layer the sour cream followed by the guacamole and salsa.

Top the dip off with Cheddar cheese, chopped olives, and green onions.

Serve with tortilla chips. Enjoy!

Spicy-Sweet Pretzel Mix

Makes 8 servings

Ingredients

• 2 cup(s) thin pretzel sticks
• 1 cup(s) natural almonds
• 2 tablespoon(s) unsalted butter
• 2 tablespoon(s) dark-brown sugar
• 1/8 teaspoon(s) cayenne pepper

Directions

Preheat oven to 300 degrees. Line a large rimmed baking sheet with parchment paper.

In a large bowl, toss together pretzels and almonds.

In a small saucepan, bring butter, sugar, cayenne, and 1 tablespoon water to a boil, stirring constantly. Pour over pretzel mixture in bowl; gently toss to combine.

Spread pretzel mixture in a single layer on prepared sheet. Bake until almonds are crisp, about 20 minutes, tossing occasionally. Cool on sheet before serving. (To store, keep at room temperature, up to 5 days.)

Meatball Parmigiana Sliders

Makes 24 sliders

Ingredients

• 2 slice(s) white or sandwich bread, torn into 1-inch pieces
• 1/2 cup(s) whole milk
• 8 ounce(s) ground beef (85 percent lean)
• 8 ounce(s) ground pork
• 4 ounce(s) ground veal
• 1 cup(s) (1 ounce) finely grated pecorino Romano or Parmesan cheese, divided
• 3 tablespoon(s) coarsely chopped fresh flat-leaf parsley
• 1 clove(s) garlic, minced
• 1 large egg
• Coarse salt
• Marinara sauce
• 24 brioche or small dinner rolls, split
• 1 1/2 cup(s) (5 ounces) coarsely grated mozzarella cheese
• 1/2 cup(s) (1 ounce) finely grated pecorino Romano or Parmesan cheese, for sliders
• Small basil leaves

Directions

Make the meatballs: Soak bread in milk for 5 minutes. Gently mix bread and milk with meats, 1/2 cup Pecorino Romano, parsley, garlic, egg, and 1 teaspoon salt. Refrigerate for at least 30 minutes.

Roll mixture into 24 one-ounce balls (each about the size of a golf ball).

Heat sauce in a large heavy pot over medium heat. Drop meatballs into sauce, and bring to a gentle simmer. Cook, partially covered, until meatballs are cooked through, 20 to 25 minutes.

Make the sandwiches: Preheat oven to 400 degrees F. Working in batches, arrange rolls, cut side up, on a baking sheet. Place 1 meatball, a spoonful of sauce, 1 tablespoon mozzarella, and 1 teaspoon pecorino Romano on bottom halves. Bake until cheese melts, about 3 minutes. Top with basil and close sandwich.

Buffalo Chicken Chili

Makes 4 servings

Ingredients

• 1 tablespoon extra-virgin olive oil
• 2 tablespoons butter
• 2 pounds all-white meat ground chicken breast
• 1 large carrot, peeled and finely chopped
• 1 large onion, chopped
• 3 ribs celery, finely chopped
• 5 large cloves garlic, chopped
• 1 tablespoon smoked paprika (you can substitute with chili powder)
• 1 bay leaf
• Salt and freshly ground black pepper
• 2 cups chicken stock
• 1/4 to 1/2 cup hot sauce
• 1 15-ounce can tomato sauce
• 1 15-ounce can crushed tomatoes
• 1 7-ounce bag yellow corn chips
• 1 7-ounce bag blue corn chips
• 3/4 pound blue cheese, crumbled

Preparation

Preheat oven to 375 degrees or broiler to medium.

Place a large pot over medium-high heat, add oil and butter. Once the butter has melted and the pot is hot, add the ground chicken. Brown it, using the back of a wooden spoon to break it up in to small pieces, about 5-6 minutes. Add the carrot, onion, celery, garlic, paprika, bay leaf and some salt and pepper. Cook, stirring frequently, for about 3-4 minutes. Add the chicken stock and scrape up any brown bits on the bottom of the pot. Add the hot sauce, tomato sauce and crushed tomatoes, and bring up to a bubble. Simmer for 8-10 minutes to let the flavors come together.

While the chili is simmering, spread the yellow and blue corn chips out on a cookie sheet. Top with the crumbled blue cheese and transfer to the oven to melt the cheese, about 4-5 minutes. If using the broiler, about 2-3 minutes.

Top each serving of buffalo chicken chili with a few blue cheese-topped corn chips.

Truffle Football Cupcakes

Makes 36 cupcakes

Ingredients

• 3 ounces white candy coating, coarsely chopped, divided
• 2/3 cup creamy peanut butter
• 1/2 cup confectioners’ sugar
• 3 teaspoons vanilla extract
• 2/3 cup crushed granola cereal with oats and honey
• 6 ounces semisweet chocolate, chopped
• 2 tablespoons shortening
• 2 cans (16 ounces each) vanilla frosting, divided
• Green paste food coloring
• 36 cupcakes of your choice

Directions

In a microwave, melt white candy coating at 70% power for 1 minute; stir. Microwave at additional 10- to 20-second intervals, stirring until smooth. Stir in peanut butter until smooth. Add the confectioners’ sugar, vanilla and cereal. Chill for 2-3 hours or until easy to handle.

Shape into 1-inch balls; form each ball into football shape and set aside. In a microwave, melt chocolate and shortening; stir until smooth. Dip footballs in chocolate; allow excess to drip off. Place on a wire rack over waxed paper; let stand until set, about 30 minutes.

Pipe frosting laces onto footballs. Tint remaining frosting green, pipe grass over cupcakes. Just before serving, insert a toothpick into each football. Insert toothpick into cupcake to position football.

S&B Recommends

Super Bowl Party Games

Rate the Commercials

The commercials shown during the Super Bowl are often as exciting as the game itself. Make a game out of it by ranking the commercials from greatest to lamest. Even guests who aren’t football fans will have fun!

Supplies:

Pens As many pieces of paper as you have people Optional: White board to keep track of votes

How to Play:

Give everyone a sheet of paper and a pen.

As commercials come on, make a note of the ones that stand out, whether they’re good or bad.

After the game, add up which commercials got the best and worst votes. Everyone has to tell why they gave a thumbs up or thumbs down. You may be surprised at how funny and loud the debate will get!

Guessing Game

Whether you’re playing the slots in Vegas or guessing the number of jellybeans in a jar at a church fair, there’s something that draws people to taking a shot in the dark. So let your Super Bowl party guests have a little fun trying to predict the results of the big game. Allow them to make guesses (wild or educated) on such things as:

• Who will be the MVP?
• Which player will score the most points?
• Which team will have the most interceptions?
• How many total yards will be accumulated?
• What will be the final score?

Make sure all partygoers have submitted their guesses before the game. After it’s over, go through the answer cards to see who the winners are. (And in cases where there are no winners, see who had the closest guess.) Be sure to have small prizes on hand for the winners. Team bumper stickers, decals, keychains, etc. are all appropriate and affordable.

Super Bowl Trivia

If some of your guests are serious football devotees — or at least claim to be — put them to the test with some Super Bowl trivia. This is a game for hardcore football fans. At halftime or before the game, quiz your guests on Super Bowl factoids. The questions can be simple (Who won last year’s Super Bowl?), intermediate (Which team has the most titles?) and difficult (Which teams have never been to the Super Bowl?).

Be sure to keep score. The person with the most correct answers is your Super Bowl trivia winner. For this Super Bowl scholar, a special honor is deserved, like a team t-shirt.

Community Nurse & Hospice Care presents “House Calls From Our House to Yours,” hosted by Johanna Viera, a monthly show dedicated to the needs of seniors.   In this month’s episode Attorney Michelle Beneski describes how our firm helps families plan for the future including indepth discussions on the Massachusetts Health Care Proxy, Living Will / Advance Directive, Durable Power of Attorney, Last Will and Testament, Trusts, changes in Medicaid rules, and how to protect your assets from the cost of Long Term Care.

This video series includes indepth discussion between Tabith Tripp of Tender Hearts Home Health Care and Attorney Daniel Surprenant on topics which include Alzheimer’s Disease and Asset Protection.

This video series includes indepth discussion between Tabith Tripp of Tender Hearts Home Health Care and Attorney Daniel Surprenant on topics which include Alzheimer’s Disease and Asset Protection.

This video series includes indepth discussion between Tabith Tripp of Tender Hearts Home Health Care and Attorney Daniel Surprenant on topics which include Alzheimer’s Disease and Asset Protection.

This interview is titled, “Growing Old Is Not For Sissies,” it is hosted by Barbara Lennon of “Home To Stay” Senior Home Care.  The video includes an indepth discussion with Attorney Daniel Surprenant on topics which include asset protection for seniors, issues of mental capacity, durable power of attorney versus health care proxy, and guardianship versus conservatorship.  Also, included in the interview are discussions on veterans benefits, specifically, Aid and Attendance, and special needs planning, including special needs trusts.

Do not let the Obama tax law changes (temporary changes to Federal estate tax exemptions) lull you into thinking that you have avoided estate tax and other issues.  You (or your heirs) may be very surprised.

Feature Article – Estate Tax Lull May Trap Wealthy

Recipe of the Week – Gooey Butter Cake

S&B Recommends – Nightwoods by Charles Frazier

Dan’s Corner

Greetings,

Consistent with our ongoing efforts to stay on the cutting edge, from Monday, January 9th, to Friday, Jannuary 13th, I was privileged to attend the 46th Annual Heckerling Institute on Estate Planning in Orlando, Florida.  “Heckerling” is the premiere conference in the country for estate planning professionals.  The faculty boasts some of the best estate planning attorneys nationally and internationally.  Discussion of these advanced techniques helps me to maintain our top level of service to our clients.  Our philosophy is that you can never stop learning.  At Heckerling, we discussed and examined many effective strategies, including those to protect clients’ assets, avoid unecessary estate tax, achieve and maintain government benefits and plan for business succession.  Now back to work!

We hope you enjoy this week’s article on how the Obama tax law changes (temporary increase in the Federal estate tax exemption) has lulled many wealthy people into thinking that they do not need to plan.  They may be in for a rude awakening.

Until next time,

Dan

Upcoming Events & Important Information

Michelle Beneski named to Board of Directors of Coastline Elderly Services

We are proud to announce that Attorney Beneski has been selected to the Board of Directors of Coastline Elderly Services.  Coastline is the local Aging Services Access Point for the Southcoast (greater New Bedford) region, which means that they are the first stop for all things regarding seniors.  Coastline guides seniors through the myriad of benefits that may be available to them, as well as providing grants for home improvements, respite services, assistance with finding transportation, etc.  We are extremely proud that Michelle has been selected to serve as a Director.

Company Offers Savings on Reverse Mortgage Costs for Limited Time

Although they are not a good fit for everyone, Reverse Mortgages can be a lifesaver for seniors in the right circumstances.  In our experience, years ago, the closing costs on a Reverse Mortgage would often climb to approximately $15,000 or so.  Recently, competition in the market has greatly reduced the cost of closing on a Reverse Mortgage.

Mike Kennedy, a Reverse Mortgage Specialist from iReverse Home Loans, LLC, let us know that for a limited time they are WAIVING the origination fee for Reverse Mortgages.  For example, a home valued at approximately $400,000 would have an origination fee of $6,000, which now would be waived with this limited time offer.  If you are considering a Reverse Mortgage, do yourself a favor and call Mike Kennedy at 508-672-0243.  We have worked with Mike on several occasions and find him to be an honest and knowledgeable professional.

FREE Surprenant & Beneski Long Term Care Planning Seminars

“How To Get Your Ducks in a Row”

Our upcoming seminars are:

• Thursday, January 26th, 6:30 pm to 8:00 pm at the Taunton Inn in Taunton
• Tuesday, February 7th, 6:30 pm to 8:00 pm at the Cape Codder in Hyannis
• Thursday, February 16th, 6:30 pm to 8:00 pm at the Taunton Inn in Taunton
• Thursday, February 23rd, 6:30 pm to 8:00 pm at Brandon Woods of Dartmouth

To register click here or call toll free 1-800-929-0491, ext. 2.

Feature Article

Estate tax lull may trap wealthy

(Written by Liz Skinner for InvestmentNews, January 15, 2012.)

Tax changes that President Barack Obama and Congress hammered out in the final days of 2010 discouraged clients from seeking estate-planning advice last year, even though estate lawyers argue there are many planning opportunities that shouldn’t be missed.

The legislation that set a $5 million estate tax exemption for 2011 and 2012 has all but eliminated “estate tax avoidance” as a motivating factor for clients, according to 32% of estate-planning lawyers and financial advisers surveyed recently by WealthCounsel LLC.

In fact, tax avoidance dropped from being the No. 1 reason in 2010 that clients sought estate planning to fourth last year, according to the survey of 1,085 professionals.

“The Republican-led Congress has done an effective job of vilifying the estate or “death tax’ as unfair,” said Matt McClintock, executive director of WealthCounsel. “So with the $5 million exemption, a lot of people breathed a sigh of relief because they said, “I don’t have that much,’ and it diminished concern for estate planning as motivated by the estate tax.”

Even advisers and insurance professionals were “shellshocked” by the tax changes at the end of 2010, Mr. McClintock said.

It took until September for advisers to begin working actively with estate-planning attorneys on planning opportunities for high-net-worth families, he said.

“There is so much uncertainty at this time, it’s difficult to give suggestions without saying that the benefits will vary based upon where estate and income tax rates wind up in 2013 — and estate and gift exemptions levels in 2013,” said estate-planning attorney Barry Nelson of Nelson & Nelson PA.

Estate tax lawyers said that 2011 became a year for figuring out how to take advantage of the $5 million exemption before it disappears.

“A number of very wealthy people are planning very aggressively and taking significant advantage of what may be a small window of opportunity,” said Martin Shenkman, an estate-planning attorney. “We don’t know what tomorrow will bring.”

After a temporary suspension in 2010, the estate tax had been poised to jump to 55% with a $1 million exemption, or $2 million for couples.  Instead, the rate was set at 35% for two years and applies only to estates worth more than $5 million, or $10 million for couples.

The estate tax exemption is tied to the lifetime gift tax exemption, meaning that amounts given away as gifts will be subtracted from the estate tax exemption after death.

This year, the president and Congress again will have to address the estate tax issue, as these parameters expire at the end of the year.

Advisers said that there generally was no reason for clients with plans that accounted for, say, a $1 million estate tax exemption to re-plan under the rules for 2012 and 2013. But most advisers said that they are still encouraging any clients without a plan to get one.

“When we have clients without an estate plan, we always urge them to do appropriate planning,” said Keith Newcomb, a financial adviser with Full Life Financial LLC. “There’s no app for planning the day you’re going to die.”

Mr. Newcomb said that he works with clients and attorneys to develop flexible estate plans that work with formulas instead of numbers to retain the integrity of the plan even when there are law changes.

“The word “temporary’ occurs 43 times in the 2010 tax act’s 30 pages,” he said. “That is a fact we have taken into consideration in our financial plans since then.”

THREE REASONS

In the end, the top three reasons that clients sought estate planning last year was to avoid chaos and discord among beneficiaries, to avoid probate and to protect children from mismanaging their inheritance, the survey showed.

An area that drove clients to Mr. Nelson’s office last year was asset protection for their children, including protecting their inheritances. He suggests a safety net trust for part of the inheritance in which a fiduciary can distribute the funds only “as a last resort” to prevent the child from becoming penniless.

Mr. Nelson’s firm has been structuring trusts so if a client’s child is later divorced, the child will retain assets that they inherited rather than having any of the funds pass to the former spouse, Mr. Nelson said.

In addition, nearly half the states impose a separate estate or inheritance tax that should be considered when planning how much people living in those states should keep in the estate, Mr. Shenkman said.

The fact that interest rates are low makes it an especially good time for clients to set up a charitable-lead annuity trust to transfer wealth to children in a tax-efficient way and benefit a charity, said Allan Zachariah, co-founder of Pathstone Family Office.

With a CLAT, the trust provides a charity with an annuity stream for a certain period, and at the end of the period, the trust is returned to the client or passed on to family. If the trust’s investment performance over the period beats an interest rate that is published each month by the Internal Revenue Service, the excess earnings that pass to the beneficiaries are tax-free, Mr. Zachariah said.

“It’s a great strategy for the client who is charitably inclined,” he said.

Recipe of the Week

Gooey Butter Cake

Servings: 6 to 8

Ingredients

Cake

• 1 package (18.25 oz.) yellow cake mix
• 1 egg
• 8 tablespoons butter, melted

Filling

• 1 package (8 oz.) cream cheese, softened
• 2 eggs
• 1 teaspoon vanilla
• 8 tablespoons butter, melted
• 1 box (16 oz.) powdered sugar

Directions

Preheat oven to 350 degrees F.

Combine the cake mix, egg, and butter and mix well with an electric mixer. Pat the mixture into the bottom of a lightly greased 13 by 9-inch baking pan.

In a large bowl, beat the cream cheese until smooth. Add the eggs, vanilla, and butter and beat together.

Next, add the powdered sugar and mix well. Spread over cake batter and bake for 40 to 50 minutes. Make sure not to over bake as the center should be a little gooey.

S&B Recommends

Nightwoods by Charles Frazier

Set in a small mountain town in North Carolina in the early 1960s.  This story centers on Luce, a young woman who inherits her murdered sister’s troubled twins.

Before the children, Luce was content with being the caretaker of a dilapidated lodge in the rich Appalachian landscape, choosing to live apart from the small community around her. But the coming of the children changes everything, cracking open her solitary life in difficult, hopeful, dangerous ways.

Just this week, I had a son of an 87 year old woman come in, the lady has $50,000 in savings, no house, no car and a $1300 a month income.  Her deceased husband was a veteran but she does not qualify for veteran’s assistance.  Her income is too high for Medicaid to help with assisted living care.  Therefore, she has to private pay for such care which runs $3,500 to $4,500 a month.  Obviously, her savings is not going to keep her in the assisted living long.  Her son asked what happens when she runs out of money?  I had to tell him at that point she would be transfered to a nursing home since MassHealth (Medicaid) will pay for nursing home care but not assisted living care.  Maybe I should suggest that she go commit a crime and thereby qualify for a prison assisted living?  I’m just kidding, of course, but isn’t it ridiculous?

Assisted living is a wonderful option for seniors who cannot live alone at home but do not yet need a nursing home.  Assisted living provides the senior with a small apartment, 3 meals a day in a dining room, housecleaning and some limited home care.  There is one government program that helps pay for this care.  It is called “Group Adult Foster Care” or “GAFC”.  However, to qualify for this program the applicant must have income less than approximately $1100 a month.  If the applicant has more than $1100 a month in income then he or she cannot qualify.  The only other help available for paying for assisted living is through the Veteran’s Administration program called a non-service connected disablity pension – Aid & Attendance.  This program is not available to all veterans just certain wartime veterans with high medical expenses and certain surviving spouses.  It’s really sad that this cheaper alternative to nursing home care is not supported better by our government.  It would save money and provide a better qualify of life.  If you need help figuring out if you qualify for either Aid & Attendance or GAFC order our Nuts and Bolts Guide to Veterans Benefits and/or our Elder Care Guide.  There is information on those programs in those books.

What do you think about this subject?  I would love to hear from you.