Surprenant & Beneski

Can you protect your children ’s inheritances from creditor’s claims, divorce and bankruptcy?

It is said that we never stop being a parent even after our children are fully grown. Many parents help their children financially throughout their lives. Often clients come to us asking if there is any way that we can help them protect the inheritance they plan on leaving their children from possible loss due to divorce, lawsuits, bad money management, etc.  We hear it all the time, “Susie’s a great kid but she can’t say no to her husband and he spends money like its water.” Or, “I love all my daughters-in-laws but you don’t know what will happen in the future and I don’t want half my son’s inheritance lost in a divorce.” Or, “Joe’s a great kid but he’s in a risky business and has gone bankrupt twice is there any way to protect his inheritance so he won’t lose it?” The short answer is “Yes!” With proper planning, you and your family can work together to ensure as much as possible, that the family wealth will not be lost. You can create a trust to receive the inheritance and hold it for the benefit of your child. This Trust could be used to protect the inheritance from bad spending habits, divorce, bankruptcy, etc. A “spendthrift” trust is a trust created by parents to hold and manage money for a child. A third party such as a bank or responsible relative could be the trustee to properly manage the trust for the benefit of that child. By leaving the inheritance to a spendthrift trust, creditors could not take the money. The cash could be used to support that child so that you would know the child would always have the necessities in life – a place to live, food, clothing, etc.. We never know what the future might hold. If an inheritance is left to a Trust rather than outright, the trust could contain stand-by provisions so that if your child needs government benefits in the future (because she became disabled) the Trust property would not disqualify her from receiving the benefits but would be available for extras to supplement her benefits. A trust can make sure that your spouse can benefit from your assets during her lifetime but at your spouse’s death the property goes to your children and not a new spouse or an entirely different beneficiary. Perhaps your children are entirely responsible and doing well on their own. But what if your child divorces after your death? If your child is wealthy your inheritance could be subject to estate taxes at both your death and then your child’s death. This could reduce the inheritance significantly. Wouldn’t it be nice to avoid the second estate tax at your child’s death? It is possible with a trust that plans for multiple generations. Your child can control his inheritance and yet it may not have to be part of his taxable estate at his death. If you have concerns about your children or grandchildren’s ability to manage an inheritance or that the inheritance could be lost to a divorce, re-marriage, bankruptcy or other creditors then you should explore the appropriateness of leaving your child’s inheritance to a trust rather than outright. It used to be only the super rich had trusts but in the current era many middle class families  are choosing to design trusts to meet their family’s needs and protect family wealth for future generations. If you have questions about trusts talk with an estate planning attorney in your area. The laws are complex and change often but asset protection is possible with the proper guidance. ©Surprenant & Beneski, P.C. 35 Arnold Street, New Bedford, MA 02740, 336 South Street, Hyannis MA 02601 and 1265 Belmont Street, Suite 2, Brockton, MA 02301. This article is for illustration purposes only. This handout does not constitute legal advice. There is no attorney/client relationship created with Surprenant & Beneski, P.C. by this article. DO NOT make decisions based upon information in this handout. Every family is unique and legal advice can only be given after an individual consultation with an elder law attorney. Any decisions made without proper legal advice may cause significant legal and financial problems.

Recipe of the Week - Oktoberfest Fondue

Ingredients:

• 3 Tbsp unsalted butter
• 1 cup milk (I used 1%)
• 2 Tbsp flour
• 2/3 cup of amber beer
• 1 1/2 cup Smoked Gouda, shredded
• 1 1/2 cup Sharp Cheddar, shredded
• 1 tsp Dijon mustard
• 1/4 tsp Worcestershire
• 1/2 tsp cayenne
• salt & pepper, to taste

Directions:

1. In a large sauce pan, melt butter over medium heat.
2. Whisk in flour to thicken, taking care not to burn, and then gradually whisk in milk until mixture is semi-thick and smooth. Continue whisking while adding beer.
3. Next, gradually whisk in cheeses allowing each addition of cheese to melt before adding the next.
4. Once cheese is melted, whisk in mustard, Worcestershire and cayenne. Add salt and pepper to taste to bring out flavors.
5. Serve warm with  bread sticks, French baguettes, meats cold cuts or veggies for dipping!

S & B Recommends - The 9th Annual Oktoberfest in New Bedford

Summer is gone. September is all but over. So, that can only mean one thing: Oktoberfest! Oktoberfest will take place at the State Pier in New Bedford on Saturday, October 4th.  There will be plenty of local microbreweries on tap (pun completely intended) bringing their unique autumn flavored ales and beers.  Of course, there will be food thanks to No Problemo, Ma Raffa's, the Oxford Creamery and O'Crepe's.  As with all festivals, there will be plenty of talent and entertainment and dancing! Tickets are $15 per person and can be purchase online by clicking here.  For more information on Oktoberfest, click here. Because alcohol is served, you must be 21 years or older to attend so bring your ID and if you are carded, take it as a compliment!

S & B Recommends - Pretty Paws Bakery

It is no secret how much I love my dogs, Sabina and Pierre.  They are the furry members of my family and we spoil them like babies!  We dress them up, get them groomed and buy them special treats.  And by treats, I don't mean Milk Bones from the supermarket.  Oh no. We go to "Pretty Paws Bakery" on 54 Main Street in Fairhaven, MA or at their new location at 331A State Road in Dartmouth.  You will not see ho-hum biscuits either. They have chicken pot pies, corgi cannolis, special occasion cakes and gift certificates.  You can also order treats by visiting their website and be sure to friend them on Facebook!

Recipe of the Week - Homemade Beggin ' Strips for Dogs

Ingredients: • 3 pieces of bacon, precooked and chopped • 1 egg • ½ cup peanut butter • ¼ cup beef or chicken broth • 1 cup whole wheat flour • ½ cup quick cook oats • 1 Tbsp. honey Directions:

1. Preheat oven to 300°
2. In a medium sized bowl combine all ingredients, using your hand works best to blend well.
3. Lightly flour surface, roll dough to 1/8- ¼” thick rectangle, using a knife cut dough into 1” wide by 3” long strips.
4. Spray cookie sheet with nonstick cooking spray or line with aluminum foil.
5. Run knife or spatula under dough strips to life from surface, ripple dough so it resembles a ribbon, or a piece of bacon, as you lay it on baking sheet.
6. Bake for 20 minutes, allow to cool.
7. Store in refrigerator in an airtight container for up to 2 weeks.

Pet Trusts - Planning Today For Loving Care Tomorrow

There are more pets than children in American households.  For many people, old and young alike, pets are as much a part of their family as any human. There are health and financial benefits to owning a pet.  Indeed, there is now an impressive body of scientific evidence, gathered over the last 30 years, that pets can help a person stay healthy, speed up recovery after major illness, manage blood pressure, protect the heart and blood vessels, deal with stress, improve mood and sense of well-being, lessen feelings of isolation and loneliness, and provide a sense of purpose.  The National Center for Infectious Diseases reports on its website that “pets can decrease your blood pressure, cholesterol and triglyceride levels, and feelings of loneliness.”  http://www.cdc.gov/healthypets/health_benefits.htm For the elderly especially, a pet can dramatically improve their health.  But who will take care of the beloved pet who outlives its owner?  What will happen to the pet if its owner must transition her residence to a facility that does not allow pets?  How can a person provide for the continued care of a pet who has given so much? Dixie, Elmo, Patch, and Spats are Mildred’s family.  They provide Mildred with loyalty, unconditional love, affection, and companionship.  They have given her a purpose and a feeling of fulfillment.  They depend on her for her own love of them and for the very best care she can offer:  the right food, the right exercise, the right veterinary attention, the right medications. But what happens when Mildred is no longer able to care for her beloved “darlings.”  She wonders, “How can I ensure that my pets will continue to receive proper care if I am unable to provide it myself?  Who will take care of them?  Who will understand their unique personalities?”  Elmo the beagle lies around on the floor, couch, or bed most of the time and craves an occasional scratch behind his ears.  Dixie the poodle is frisky and high maintenance.  Patch the cat likes Mildred’s lap, while her brother, Spats, prefers napping in the sun or under the bed spread. Many assisted and supportive living centers do not allow their residents to own pets.  Mildred’s most disturbing thought is that her pets could be euthanized at a shelter or veterinary office if she dies or becomes incapacitated.  The sad fact is that unless she makes appropriate arrangements, her fear could become a dreadful reality.  According to one estimate, one-half a million pets are euthanized in shelters each year because their human caregivers have predeceased them. A new Massachusetts law provides an answer:  a trust for the care and feeding of Mildred’s pets.  The new law allows a pet owner to set up a trust for the care of one or more designated domestic or pet animals.  The law provides that no part of the principal or income of the trust may be converted to the use of the trustee or for any purpose not for the benefit of the covered animal. Another good feature of the new law allows the pet owner to name a person to enforce the terms of the trust, to make sure the person who is to take care of the pet lives up to his/her obligations.  The trust terminates when there is no living animal covered by the trust.  At that point, any unexpended trust property can be transferred (a) as directed in the trust, (b) under the residuary clause in the pet owner’s will, or (c) to the pet owner’s heirs. By “planning today for loving care tomorrow,” Mildred can meet her pets’ future needs while giving herself peace of mind.  By consulting with an estate planning attorney who is knowledgeable about the new Massachusetts Pet Trust law, Mildred can be assured that her pets will be well-cared for when she is no longer able to care for them herself. If you are interested in creating a pet trust for your pet, call our office at 508-994-5200 to set up an appointment. ©Surprenant & Beneski, P.C. 35 Arnold Street, New Bedford, MA 02740, 336 South Street, Hyannis MA 02601 and 1265 Belmont Street, Suite 2, Brockton, MA 02301. This article is for illustration purposes only. This handout does not constitute legal advice. There is no attorney/client relationship created with Surprenant & Beneski, P.C. by this article. DO NOT make decisions based upon information in this handout. Every family is unique and legal advice can only be given after an individual consultation with an elder law attorney. Any decisions made without proper legal advice may cause significant legal and financial problems.

Q & A Series " Will Medicaid (MassHealth in Massachusetts) look at every check I write? "

By Atty. Brandon C. Walecka, Esq., LL.M. Q&A Series is a collection of frequently asked questions that we often hear from clients.  It provides brief answers to many common questions about estate planning, Medicaid planning, special needs planning and other elder law issues.  Interested in learning more?  Search “Q&A”. Will Medicaid (MassHealth in Massachusetts) look at every check I write? We are often asked, "Will Medicaid look at every check I write when I'm applying for benefits?" When attempting to answer this question, I first try to educate the client on the basics of Medicaid eligibility and the look-back rules. What are the long-term (nursing home) Medicaid eligibility rules? An individual who is living in a skilled nursing facility as a long-term care resident can apply for Long-Term (nursing home) MassHealth benefits to pay for care. In order to qualify for long-term MassHealth, the individual must have less than $2,000 in countable assets. Countable assets are all assets except:

• Home (primary residence worth less than $828,000 in 2016);
• Car (one);
• Prepaid funeral (any amount);
• Burial account (up to $1,500); and
• Life insurance with a face value of $1,500 or less.

If the applicant is married, MassHealth considers the assets of both spouses. The community spouse is currently allowed to keep all of the first $120,900 in countable assets (in 2017). This amount changes almost every year. If there are excess assets, we work with clients to appropriately spend down within the rules. Details on spend down strategies are discussed in other blog posts. Regarding income, once approved, the applicant must pay to the nursing home each month an amount known as the “patient paid amount” or “PPA”. The PPA is equal to the applicant’s gross income less:

• $72.80 for personal needs (in 2017);
• Any amount paid for health insurance. For example: the Medicare part B $104.90 premium (in 2016) taken from the social security check and/or the amount paid by the applicant for a Medicare supplemental plan such as Blue Cross/Blue Shield Medex bronze; and
• Any amount the community spouse (the spouse who lives at home) is allowed to keep to meet the Minimum Monthly Maintenance Needs Allowance (MMMNA). The MMMNA is a minimum amount of income the state believes a community spouse needs to live independently in the community. The MMMNA is currently $2,002.50 (in 2017). This amount changes each year.

If the applicant is married, the community spouse is allowed to keep all of his or her own income. If the community spouse’s income is lower than the MMMNA, then the community spouse is allowed to keep some of the applicant’s income. The amount of the applicant’s income that the community spouse can keep is the difference between the MMMNA and the community spouse’s income. Additionally, if the community spouse has high household expenses the community spouse may also be able to keep additional income and/or assets to support himself under certain circumstances.   What is a penalty period for (nursing home) Medicaid eligibility? In our experience, the average cost of long-term care in a nursing home setting is about $10,000 a month or $120,000 per year. As you can see, this can get expensive quickly. To avoid this cost, many individuals and their families look to qualify for Medicaid to avoid these costs. Generally, in order to qualify of long-term (nursing home) Medicaid, an individual may only have $2,000 in countable assets (as described above). In order to reach $2,000 in assets, an individual may not give away (gift) her assets (with limited exceptions). The Commonwealth imposes a penalty for each dollar you give away during the five years before you apply for Medicaid to pay for nursing home care. A penalty period is a period of time during which Medicaid will not pay for nursing home care because the Medicaid applicant gave something away. The length of the penalty period varies by the value of the gift.   Review of Bank Statements In response, we sometime hear from a client, "Well, how will they even know I gave something away?" In order to determine whether an individual is eligible for MassHealth, Medicaid scrutinizes every bank transaction you have made in the last five years. When an individual applies for long-term (nursing home) Medicaid, she submits five years worth of bank transactions for all accounts the individual holds. Typically, Medicaid asks for an explanation of all deposits and withdrawals over $1,500. Did you write a check to your son for your share of a vacation he put on his credit card? Did you transfer a large sum of money from one account to another? These are the types of transactions that Medicaid will ask about and you will need to provide an explanation. This does not mean that you cannot spend your money and live your life, but what it does mean is that if you are looking to qualify for Medicaid some of the larger transactions will need to be explained. This also does not mean that if you purchase an item or service for fair market value that it is not a gift, so long as the item or service was for your benefit. There is no penalty imposed on transfers between spouses. As you can see, the Medicaid application process can be complicated. Though an attorney is not always needed when filing a Medicaid application, in our experience, it is almost always advisable to consult with a qualified elder law attorney before submitting a Medicaid application. If an application is not done correctly, it may result in denial of vital Medicaid benefits for the senior. Have you already begun a Medicaid application on behalf of a loved one? Would you like one of our qualified elder law attorneys to review the application or handle an appeal of a denial? Consulting a qualified elder law attorney who can advise you on the entire situation will give you peace of mind. And what you learn may mean significant financial savings or better care for you or your family member in the long run. 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. ©Surprenant & Beneski, P.C. 35 Arnold Street, New Bedford, MA 02740, 336 South Street,  Hyannis MA 02601 and 1265 Belmont Street, Suite 2, Brockton, MA 02301.  This article is for illustration purposes only.  This handout does not constitute legal advice.  There is no attorney/client relationship created with Surprenant & Beneski, P.C. by this article.  Do Not make decisions based upon information in this handout.  Every family is unique and legal advice can only be given after an individual consultation with an elder law attorney.  Any decisions made without proper legal advice may cause significant legal and financial problems. [Last Updated: January 2017]

Recipe of the Week - Easy Linguica Bake by Maria Lawton, The Azorean Green Bean

Ingredients:

• 1 pound of sausage, chopped into small pieces
• 1-2 sweet onions, chopped into small pieces
• 6-8 slices of day old bread, cubed
• 2 cups of shredded cheese (mozzarella or cheddar)
• 6 large eggs
• 2 cups of milk
• Salt & Pepper to taste
• Olive Oil

Directions:

1. Lightly grease a 10x10 inch baking dish and place the cubed bread evenly throughout dish, and set aside.
2. In a large deep skillet, cover the bottom of pan with some olive oil and in medium/high heat, sauté the onions and sausage until onions are translucent, season with salt and pepper to taste. Drain off extra grease if needed and then layer over the cubed bread. Then spread the shredded cheese over the top and set aside.
3. In a large bowl, beat together really well the eggs, milk, salt and pepper and pour over everything. Make sure that you press down on the bread, to help it absorb the egg mixture.
4. Cover and refrigerate at least 8 hours or best overnight.
5. The next morning: Preheat the oven at 350 degrees F and remove baking dish from refrigerator at least 15 minutes before baking. Bake 50-60 min depending on oven or until knife inserted in center comes out clean. Let it cool off for a few minutes before serving... Enjoy!!

Recipe courtesy of Maria, Lawton, the Azorean Green Bean. All rights reserved.

S & B Recommends - Alderbrook Farm in Dartmouth

  Sometimes it is the simple things in life that bring us the most joy.  Nothing makes my kids happier than when I ask, "Who wants to go pick up some corn at the farm?".  And by "farm" they know that I mean Alderbrook Farm on 1213 Russells Mills Road in Dartmouth.  Family owned and operated, it's open year round.  I can always count on them for farm fresh eggs, cheese, veggies and fruits in the summer and of course, my favorite: Morning Glory Coffee Syrup!  Also, on the farm they sell bird houses, bird food, locally made beeswax candles and pies.  And just like in a bygone era, payment is cash only and is done on the honor system because the family is out working in the fields or with the animals.  Speaking of animals, my kids love the farm because it is like a petting zoo!  You can either see them in the barn or  in the fenced in fields. They have a beautiful peacock named Argus, pygmy goats, sheep, pot bellied pigs, two of the world's most friendly donkeys and horses.  That being said, just stay away from the Canadian Goose, he's a bit ornery!  If you walk down the lane you will see a huge coop of chickens (but please don't feed them because they have a special diet), a pig sty filled with very curious pigs and a disc swing.  The disc swing  is a favorite with the kids because because it can go in any direction!  Hope to see down on the farm someday! They are open daily from 5:00 am (yes, "am" as in morning) until 5:30 pm and can be reached by phone at 508-636-4562.  They do have a small parking lot for your convenience.  Show them your support of local farms by liking and following them on Facebook by clicking here!

What do you do when caring for your loved one at homes becomes too much to handle?

Glen Campbell, country music star entered an Alzheimer’s care facility this spring. He has suffered from memory loss since 2011. According to the Alzheimer’s Association 142,000 families are living with Alzheimer’s in Massachusetts and Rhode Island. Our office meets with families every week who are caring for a loved one with memory loss. Families come to us at all stages of their journey. Most families come to us with the intention of caring for their loved on at home. It is a wonderful intention but sometimes it’s just not realistic. The families usually have no idea what should be done so that they can keep their loved one safely at home for as long as possible and how to do it without going broke. Often we start out helping the family make sure they have the legal ability to make decisions for their loved one when the loved one can no longer make decisions for them selves. Structuring the ownership of assets so that the loved one can hopefully qualify for government assistance either at home or in the nursing home inthe future is very important. Because we work with elders every day we know about many resources that the family is unaware of. We refer the family to community resources such as home health care agencies, the Alzheimer’s Association, Coastline Elderly Services or Bristol Elderly Services, who can provide services and support to the family. We try to assist them in putting together a plan to move forward. As their loved ones abilities decline we talk about adult day care, assisted living and nursing home care. Caring for someone with dementia, is a twenty four hour a day, seven days a week job. It is one of the hardest jobs in the world to do. Most families are not aware of the community supports that are available to make that burden a little lighter. As the journey continues, in many cases there comes a time when the family can no longer safely care for the loved one at home. We see spouses and children wrestle with their intention to keep the person home and the reality that the loved one is just not safe at home or providing the care at home has become too burdensome. We talk to them about investigating to find the proper facility to place their loved one. We help them transition from care taker to care manager. We let them know that sometimes it is better for everyone if your loved one is placed in a nursing home. The loved one is safe. The caregiver can get some rest and rebuild his or her own health. It is a difficult and emotionally draining path that these families are on. What families need to know is they are not alone. It is also very important to get help early in their journey. Getting help early usually means the difference between having the tools and resources to care for someone at home or not. As a persons memory loss continues it can become too late to take care of certain necessary legal matters; too late to give the caregiver relief so that the care giver can continue providing care. The Caregiver is already too tired and overwhelmed for respite to make much of a difference. If you are caring for a loved one with Alzheimer’s disease or other forms of memory loss please reach out to the elder care community as soon as you. Call our office, Surprenant & Beneski, P.C. at 508-994-5200 for a consultation to make sure your “ducks are in a row” and you have done all you can to care for a loved one and protect the assets you worked so hard to get. ©Surprenant & Beneski, P.C. 35 Arnold Street, New Bedford, MA 02740, 336 South Street, Hyannis MA 02601 and 1265 Belmont Street, Suite 2, Brockton, MA 02301. This article is for illustration purposes only. This handout does not constitute legal advice. There is no attorney/client relationship created with Surprenant & Beneski, P.C. by this article. DO NOT make decisions based upon information in this handout. Every family is unique and legal advice can only be given after an individual consultation with an elder law attorney. Any decisions made without proper legal advice may cause significant legal and financial problems.