Tag Archive for: lifeplan

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Because Selling Nana’s Cottage Seemed Like A Good Idea, At The Time… Idiots!
A Little Bit Of Smarts, A Future Of Golden Memories

Birds Do It, Bees Do It, Even Educated Fleas Do It
Let’s Do It! Let’s Go To The Lake!

Sincere Apologies to Cole Porter

In uncivilized countries, such as those in Europe and Asia, new workers start out with 6 weeks of mandatory vacation (which they confusingly call “holiday”). Not including public holidays (which they call “festivals” or something). What do these folks do with such excessive periods of sloth and inactivity? Who knows? Who cares?

In America, on the other hand, we have weekends. And summer! And a week or two of “vacation”. And being Americans, we do not wish to waste this time. If Americans were as sedentary and unambitious as our global neighbors, we could spend this time in sidewalk cafés, art museums and reading. Improving our minds. Getting culture. Ghastly stuff. “Deliver us O Lord, we pray…”

Unlike our fellow travelers on Spaceship Earth, all true Americans find home improvement projects irresistible. Paint the walls. Build a deck. Plant a garden. Cut the grass. Replace, polish, fix or improve whatever has not been recently replaced, polished, fixed or improved. Pitiful, benighted foreigners have foreign places with palaces, temples, pagodas, and castles. Blessed, muscular Americans have Lowe’s, Harbor Freight, and Home Depot. Seems like an easy choice.

Sooner or later, though, all true Americans feel the restless urge to get out of Dodge, at least on the weekends. In the summertime. Or hunting season. We ran out of things to improve around the house. The deer ate all the tomato plants. It’s too hot. We were bored. So we got another house. In God’s country!

In the American Tradition, the second home could be a house. Or single wide. Perhaps a shack with no indoor plumbing or insulation. On a 40 foot lot. At the lake, at the shore, in the woods, somewhere other than here. From Idlewild in Lake County to Beaver Island in Lake Michigan, American middle class workers by the thousands filled the developments which sprang up around every lake, pond, and ditch within driving distance. And because the lake wasn’t big enough, we dug canals, dammed creeks, and otherwise expanded our Water Wonderland. Magnificent! And not only lakes, but the woods filled with weekend escapes too! Glorious!

At grandmother’s cottage many of us learned to swim and fish. Caught tadpoles and watched them grow to frogs. Searched for salamanders under logs and rocks. Got mosquito bites and poison ivy. Fell in the mud Played in the sand. Went ice-fishing in the winter.

Campfires on the shore. Remember?

Whatever happened to that place? How much would it cost to buy something similar today? Why did we get rid of it? Too bad our kids and grandkids won’t have the experiences we did. Or the memories. At least they have iPads.

The Family Cottage LifeCycle

To everything there is a season,
A time for every purpose under heaven:
2 A time to be born, And a time to die; 6 A time to gain, And a time to lose;
A time to keep,
And a time to throw away;
Ecclesiastes 3:1-2,6

Is it a ridiculous idea that there is a lifecycle to family cottages and recreation properties? There is a routine evolution in the relationship between family and property. Is it a bad idea to recognize the lifecycle and work with it? Are you against preserving unique opportunities for your family?

The Family Cottage Lifecycle:
1. Young Child: Best. Place. Ever!
2. Teenager: So stupid. Boring. Smells funny.
3. Young Adult: My life is busy. I have no time for that place. If I inherit a share, I’m selling it… I need money for tuition/new car/down payment/taxes…
4. Parent of Young Child: Why did we ever sell the cottage? We can’t even afford to rent at the lake today.
5. Older and Wiser: If I ever get the opportunity, I won’t make that mistake again.

We all pass through seasons in our lives. As we gain experience, some important-seeming situations will fade to nothing. Other events will become more meaningful as time goes by. Wisdom and perspective cannot be taught, only learned. Growing up is the tuition that must be paid for insight.

Are long-term decisions best left to the youngest, least- experienced folks? Is it wrong for those with proven perception and prudence to plan for the long-term? Do you sacrifice long term gain for short term pleasure?

Estate Planning Done Wrong
Two Estate Planning Blunders That Guarantee Failure

Traditional estate planning, if it has any purpose at all, dumps your leftover stuff on your beneficiaries. After you die. Don’t much care what happens to you while you are alive.

Traditional estate planning fails because the overwhelming majority of us will need long-term skilled care. 70% of us. For an average of 3 years. And we will go broke paying for it.

Is it surprising that thousands of recreation properties: cottages, cabins, hunting land, are lost to pay for long- term care?

LifePlanning™ defeats Nursing Home Poverty. Keep your stuff. Get the care you have already paid for.

LifePlanning™ means you do not have to sell the cottage and “spend down” the proceeds. Now what to do with the recreational property?

Traditional estate planning offers two options:
1. Circular Firing Squad or Last Man Standing
2. The Corporate Model or Last One Out is a Rotten Egg

Circular Firing Squad is easy, cheap and disastrous. The Corporate Model is not easy, not cheap, and not as disastrous.

Circular Firing Squad

Putting all the kids “on the deed” is the circular firing squad. It is the easiest, cheapest, most popular, and worst possible way to leave recreation property to kids.

“Last Man Standing” is the most common Circular Firing Squad method. This involves naming all of the children or other beneficiaries as Joint Tenants with full Rights of Survivorship (JTWROS) on the deed. As joint tenants with rights of survivorship, the last living person owns the entire property. Did you plan to disinherit most of the family?

JTWROS deeds also deny Medicaid benefits to your kids and their spouses. Medicaid treats their share as if it was cash in the bank. But it is NOT cash in the bank, it is a fractional interest that is totally locked up in the property. And now your kids are disqualified from Medicaid. Whoops!

But that is not the worst. JTWROS deeds have no rules. Other than each person can fully use the property without the others’ permission.

Congratulations! Your child is the new president of the Pagan Assassins Mud Wrestling Team – Australian Rules. Your child invites the entire 32 member, mixed gender team to the cottage. On the 4th of July. Your child has never paid their share of the taxes, utilities or maintenance. When the Pagan Assassins leave, the place is a bloody shambles. And there is nothing the other kids can do about it. In fact, since you signed a standard, immediately effective, JTWROS deed, there is nothing YOU can do about it. Not even dead yet and already you have lost control of your property. Did you know that when you signed on for this quick and easy solution?

Ladybird to the Rescue? You may have used a ladybird or transfer on death deed to create this living hell. Good News! At least the suffering will not begin until after you have passed on to your reward. Then the JTWROS takes effect and we are off to the races.

You may also create a Circular Firing Squad using a “Tenants in Common” deed. The TIC deed gives individual shares to each child while you retain a share. Unlike JTWROS, each child owns a piece that they can give to the grandkids. Or sell to the Pagan Assassins. Just as with JTWROS, there are no rules.

Did I mention that each Circular Firing Squad method leaves the other kids open to liability claims from the unsanctioned “activities”? And it does no good for them to abandon the property, now they can be prosecuted for housing code violations. And please! Do not get me started on that methamphetamine lab in the basement. Or the fentanyl stockpile in the shed. Oh my!

If you are going to create a Circular Firing Squad, use the TIC method. If they all hate each other enough, they can go to probate court, sue one another, and force a sale. Thanks Mom! Thanks Dad! Great planning!

The Corporate Model: Last One Out Is A Rotten Egg

Do you really want to leave stuff to the kids without any rules? Is blunt force trauma the best way to make sure your grandkids will learn how to swim at the lake? Do you want to empower one of your kids to hold the others hostage?

There are many permutations of the Corporate Model. Most use a limited liability company to hold the real estate and give shares to the kids.

And there are rules. And governing provisions. And limited liability for the kids. Still have that pesky Medicaid problem with disqualification, but I guess you cannot have everything.

A general rule in a corporate structure is that minority members can sell their shares and get out. The usual Cottage LLC requires the other members to buy out the one who wants to sell. And if they do not… say hello to the Pagan Assassins.

Doesn’t seem like such a big deal. One kid wants to move to the Himalayas and commune with the mountain spirits. That kid is not planning to come back. Or perhaps another kid wants his money to buy a car. The cottage does not seem so important right now. The problem is not one of law. The buyout provisions are clear and enforceable.

The problem is that as soon as one kid wants out, so do the rest. The other kids don’t want to pay, frequently they are not able to pay. It was a blessing to have had the cottage so long, but now it must go. Over and over again, if one kid wants out, they all do. Last one out is a rotten egg!

The Corporate Model fails because it depends on the continued unanimous support of all the family members. The chain is only as strong as its weakest link.

What if there were no links? What if no individual could torpedo the entire family’s legacy?

The National Park Model: Recipe For Success

There is nothing so American as our national parks. The scenery and the wildlife are native. The fundamental idea behind the parks is native. It is, in brief, that the country belongs to the people, that it is in process of making for the enrichment of the lives of all of us. The parks stand as the outward symbol of the great human principle.

—Franklin D. Roosevelt

You will never go to Yosemite National Park. You have Yosemite-phobia. And a doctor’s note to prove it. Since you will never go to Yosemite, you write to the National Park Service. You demand your share of the value of Yosemite. Cash me out! Do you expect a response?

Roosevelt’s “fundamental idea” is that the national parks belong to everyone, down through the generations. The big idea is simple: Preserve it now or lose it forever.

Isn’t that the idea behind leaving the family cottage to the family? Could you afford, right now, to purchase your cottage, cabin, hunting land? Of course not! Lake Michigan properties that sold in the $20-30,000 range in the 60’s and 70’s are in the millions now. If you can find one. And the same is true of smaller lakes. The wild price inflation is less for hunting land, but still forbidding.

At the turn of the last century, a few visionaries like Teddy Roosevelt and John Muir saw that without national preservation efforts, irreplaceable natural treasures would be lost. In other countries, the rich and the royal preserved land for their own benefit. In America, we did it for all of us. And our descendants.

The National Park Model is a new way of looking at your cottage or recreational property. You are making a promise to your future family that short-term considerations will not outweigh long term goals.

The basic principles are straightforward and are familiar to anyone who has ever traveled or camped in a national, state or local park:
1. Rules for Use. Family members are stewards of a gift. Rules for use and care will be clear and must be observed. There will be an evenhanded system for allocating the available space among various family members.
2. Financial Responsibility. Budgets will be prepared, including all taxes, utilities, insurance and sinking funds for all capital improvements, including the roof, plumbing, fixtures and utilities. Present and future expenses will be identified and incorporated.
3. Nobody Rides for Free. You can’t get in a Park without a sticker to pay for the road. You can’t stay overnight without paying for your campsite.

You can’t stay at the Cottage without paying the necessary charge to cover your share of the budget. In advance.

There are other provisions that allow for limited liability and definition of membership. These can all be tailored to the specific needs of individual families.

On March 1, 1872, President Ulysses S. Grant created Yellowstone as the first national park in the United States and the world. For over 150 years, Yellowstone has been preserved and available to all Americans.

Is it ridiculous to think that the same concepts that worked for Yellowstone for the last 150 years could preserve your family’s heritage too? Are you against providing that sort of experience to your children, grandchildren, and generations yet unborn?

If not you, who? If not now, when?
Is Now A Bad Time For Real Solutions?

Does anyone on this earth have all the answers? Does that mean we should give up seeking the best answers we can find? Perhaps you already have an answer to this problem. Maybe you do not see this as a problem at all. Why not find out? Is now a bad time to find out how to obtain security for yourself? And your family?

Peace of mind and financial security are waiting for everyone who practices LifePlanning™. You know that peace only begins with financial security. Are legal documents the most important? Is avoiding probate the best you can do for yourself or your loved ones? Is family about inheritance? Or are these things only significant to support the foundation of your family?

Do you think finding the best care is easy? Do you want to get lost in the overwhelming flood of claims and promises? Or would you like straight answers?

Well, here you are. Now you know. No excuses. Get the information, insight, inspiration. It is your turn. Ignore the message? Invite poverty? Or get the freely offered information. To make wise decisions. For you. For your loved ones.

The LifePlan™ Workshop has been the first step on the path to security and peace for thousands of families. Why not your family?

NO POVERTY. NO CHARITY. NO WASTE.
It is not chance. It is choice. Your choice.

Get Information Now. (800) 317-2812

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Well, Here’s Another Fine Mess You’ve Gotten Us Into! No Good Deed Goes Unpunished

How Can They Do That

1. Loved One Needs Long-Term Care. You just can’t do it anymore. Mom or Dad need the services only a long-term, skilled care facility can provide. You have put off the nursing home as long as possible. Millions of reasons, only one remaining option. You hoped it would never come to this.

2. Reality Check. No one wants to be in a nursing home. Yet the nursing homes are full. Why? It is because everyone’s highest ambition is to wind up in a nursing home? Because families want their loved ones there? Or maybe we should consider the possibility that nursing home services simply are not available anywhere else. Perhaps nursing homes fill a real need.

3. Who Pays the Bill? Skilled nursing home care is almost unbelievably expensive. Good luck finding any place that charges less than $400/day. Most are more. And when you figure in the expenses? All those little things that are not included in the daily rate… $12,000 – $15,000/month.

4. But Medicaid Pays! Right? Your life savings are exhausted. You sold the cottage. You sold the classic car. All the money is gone. Surely now you will qualify for Medicaid. Right? Not so fast. Medicaid rules are extremely difficult to understand. Medicaid rules are even more difficult to follow. Says who? Says the United States Supreme Court. Medicaid rules and regulations are “an aggravated assault on the English language, resistant to attempts to understand it.” Schweiker v. Gray Panthers, 453 U.S. 34, 43 (1981).

5. When Medicaid Does Not Pay. It is not at all unusual for regular folks to lose months of Medicaid eligibility when applying for long-term care benefits. Tens of thousands of dollars owed to the nursing home that Medicaid will never pay. And Mom and Dad are broke. Already sold all their assets. Spent all their money. Flat. Busted. Broke. What is a nursing home to do?

6. Can’t Get Blood Out of a Turnip. Mom and Dad are broke. No dough. Tough luck for the Nursing Home? Maybe. Maybe not. If they cannot get blood out of the turnip, maybe they can get some out of the turnips’ kids. Or neighbors.

7. Follow the money. Why do nursing homes pursue the kids? The friends? The relations? As Willie Sutton (world famous bank robber) said, “Because that’s where the money is.”

8. Even National Public Radio has noticed! Nursing homes, as reported by National Public Radio, are increasingly pursuing collection efforts against everyone with a pulse and a few bucks.

9. What’s a body to do? Glad you asked! Most of the outrageous tactics that the worst offenders use are as illegal as Willie Sutton’s bank robberies. Is it bad enough that nursing home care is absolutely necessary for Mom or Dad? Is it worse if you get sued over the bill?

10. Do Not Be A Victim! Help Your Loved Ones… And Protect Yourself. Your loved ones need you. Does that mean you will be victimized? Protect yourself! Here’s how:

Laying The Trap How Do Unscrupulous Collectors Pick Your Pocket?

Nursing Home admissions can be intimidating. Page after page of single-spaced legalese. Who can understand this stuff? Plus, you finally found a home with a bed. An open bed! Willing to take your loved one. And all you have to do is sign here. And here.

Here, too. And over there. And please initial these 23 paragraphs… Wonderful! You just signed over your financial future. Whoops!

Most facilities do not engage in such blatantly illegal practices. But it does happen. Not around here, of course. Be on the lookout for the following:

1. Financially Responsible Party. As you were plowing through all those nursing home admission documents, you noticed that you were signing as” “Financially Responsible Party” or simply “Responsible Party” or “Representative.” These words do not mean that you must pay out of your own pocket. The financially responsible party/representative is only obligated to use the loved one’s money to pay. But you are agreeing to use their money for those expenses.

2. Personal Guarantee. Sometimes an additional document slips into the stack. A personal guarantee… meaning that if there’s an outstanding bill, you have agreed to pay it.

Once you have signed these documents, if the nursing home does not get paid, guess who they are coming after? You get 3 guesses and the first 2 don’t count… Tens of thousands, even hundreds of thousands… And you are not dealing with the nursing home personnel anymore. Now you are dealing with a collection agency. Imagine a ravening wolf. Bloody fangs. Merciless dead eyes. Razor sharp claws. Now imagine a ravening wolf with a telephone. Get the picture?

Is it ridiculous to think that the collection agent who gets paid on commission may not be overly nice? That the commission-paid collector is less impressed with legal niceties than their coming paycheck? Say it ain’t so!

There Oughta Be A Law!
Actually, There Is A Law…
3 Federal Laws

Concerned by this sort of collection exploitation, Congress protected seniors and their families with 3 federal laws.

Nursing Home Reform Act

Isn’t it good to know that your Senators and Representatives don’t spend all day, every day pandering to special interests? Once in a while, probably by mistake, they do something that benefits regular folks. Thanks to our public servants, the Nursing Home Reform Act has gone a long way to root out some of the worst practices.

Under the Nursing Home Reform Act, the facility cannot “require[e] a person other than the resident to assume personal responsibility for any cost of the resident’s care.” If the facility accepts Medicare or Medicaid (and they ALL accept one or both), it is illegal to require anyone to personally guarantee payment. No family member, caregiver, friend, or other person can be required to personally sign off on the nursing home charges. The facility cannot make this a condition of admission, expedited admission, or continued services and residency.

Some facilities, however, continue to put these provisions into contracts and separate documents.

Then the bill collectors then throw these illegal agreements in your face. Frequently honest, forthright folks are intimidated. You think, “Well, I signed the agreement, I have to pay! I am on the hook!” No… You Do Not Have To Pay! You do not have to comply with any illegal agreement. If someone holds a gun to your head and says, “Sign here or else!” Do you think that contract has any validity? Of course not. Same here.

Fair Debt Collection Practices Act, Fair Credit Reporting Act

Oldies but goodies! The Fair Debt Collection Practices Act and Fair Credit Reporting Act have been cornerstones of federal consumer protection law for decades. Not as focused as the Nursing Home Reform Act, the Fair Debt Collection Practices Act forbids “any false, deceptive, or misleading representation or means in connection with the collection of any debt.” The Fair Credit Reporting Act prohibits those wolves with telephones from ruining your credit with inaccurate information.

So, if a collection action violates the Nursing Home Reform Act, it also violates the Fair Debt Collection Practices Act. It’s a twofer! And if the action is reported to the credit agencies, that’s a violation of the Fair Credit Reporting Act too. Trifecta!

Debt collectors also prey on honest people’s authentic desire to do the right thing. That’s why they frequently claim that friends and family members cheated the facility, committed fraud, financial abuse of the elderly, and a raft of other ugly allegations. None of which are true. Lying to a consumer by telling them that an unenforceable debt under federal law is actually collectible… that is illegal under the Fair Debt Collection Practices Act.

Threatening your credit rating is another favorite tactic. Also illegal. Trying to collect an illegal debt often leads to violations of the Fair Reporting Act. The collector claims that your credit will be ruined. But that cannot happen because the collector cannot provide negative information that the collector knows is incorrect. And they know it is incorrect because we tell ‘em so!

Can They Do That? Nope!

Can They Get Away With It? Only If You Let Them!

Tune in next week when we cover what you can and should do when confronted with long term care facility admissions documents… News You Can Use!

 


 

Why Don’t You Deserve A Little Payback For All The Taxes You Paid In?

Why Do You Want To Spend Your Last Nickel On Long-Term Care?

Why Shouldn’t The Government Spend Your Money For You?

Traditional estate planning is concerned with avoiding probate, saving taxes, and dumping your leftover stuff on your beneficiaries. After you die. Nobody cares what happens to you while you are alive. How does that help anyone? Stupid.

Traditional estate planning fails because the overwhelming majority of us will need long-term skilled care. 70% of us. For an average of 3 years. And we will go broke paying for it.

Is it surprising that thousands of recreation properties: cottages, cabins, hunting land, are lost to pay for long- term care? Why is your estate planner hurting you and your family? It is evil intent? Or stupidity?

LifePlanning™ defeats Nursing Home Poverty. Keep your stuff. Get the care you have already paid for. Good for you. Good for your family. Good example for society.

When my mother suffered from the dementia which led to her death, over 10 years ago, their estate plan preserved their lifesavings. Mom’s months in the nursing home did not mean Dad’s impoverishment. Dad spent the last years with security and peace of mind.

Is Now A Bad Time For A Real Solution?

Perhaps you think you already have an answer to this problem. Maybe you do not see this as a problem at all.

It is possible that you do not believe in the passage of time or its effects on you.

Peace of mind and financial security are waiting for everyone who practices LifePlanning™. You know that peace only begins with financial security. Are legal documents the most important? Is avoiding probate the best you can do for yourself or your loved ones? Is family about inheritance? Or are these things only significant to support the foundation of your family?

Do you think finding the best care is easy? Do you want to get lost in the overwhelming flood of claims and promises? Or would you like straight answers?

Well, here you are. Now you know. No excuses. Get information, insight, inspiration. It is your turn. Ignore the message? Invite poverty? Or get the freely offered information. To make wise decisions. For you. For your loved ones.

The LifePlan™ Workshop has been the first step on the path to security and peace for thousands of families. Why not your family?

NO POVERTY. NO CHARITY. NO WASTE.
It is not chance. It is choice. Your choice.

Get Information Now. (800) 317-2812

Read the Print Version

“There Are No Easy Answers, But There Are Simple Answers.”

“We Must Have The Courage To Do What We Know Is Morally Right.”

The Truth:
Why Your Trust Will Fail, Almost Always

1. Wrong Goals. You want to avoid probate, save taxes, make it easy for the kids. Everyone accepts the sales job. Everyone thinks these are the correct, popular, attractive goals. That’s why probate is never going away. The tax situation you leave is a mess. And the kids will be at each other’s throat.

2. Wrong Tools. Beneficiary designations, living trusts, pour-over wills, ladybird deeds. All intended to accomplish the Wrong Goals. No use when reality strikes.

3. Wrong Process. If you are using the Wrong Tools to achieve the Wrong Goals, is it any surprise that the Process is wrong too? Almost universally, so- called estate planners take the easy way out. They avoid the hard work, the follow-through that leads to success. The job is left half-done. You take the fall. And the blame.

4. Simple, But Not Easy. Ronald Reagan said, “There Are No Easy Answers, But There Are Simple Answers.” Effective planning, LifePlanning™ is not easy. But LifePlanning™ is simple.

5. Correct Goals + Correct Tools + Correct Process = Success. Is it wrong to focus on the real threats to your security and well-being? Is it foolish to use legal tools that have been proven thousands of times over the last thirty-three years? Is it worth spending a little more time and money now for lasting, lifetime success? Or do you wish to join the Probate Parade? Deceive yourself and your family? Invite Nursing Home Poverty? It is your choice, isn’t it?

Job #1: Avoid Nursing Home Poverty

People get old. Keep breathing in and out and you’ll see. It just happens. You are not as young as you used to be. Sixty is the new fifty. Yeah, but 80 is still 80. At least 90 is the new 80, right?

You cared for your parents. Folks in the neighborhood, the lady from church, nieces and nephews, other younger people could be hired to help. But today?

America is aging. We are, on average, getting older. We did not have as many kids as our parents. There are fewer young people. Fewer people to provide long- term care.

More old people. More demand for services. Fewer young people. Less supply of services.

What happens when there is increasing demand and decreasing supply?

What happened to the price of infant formula when the biggest factory shut down?

What happened to the price of oil when oil exploration leases were cancelled?

What happened to the price of gas when pipelines were shut down?

What happened to the price of eggs when avian flu hit the chicken coops?

What happened to the price of imported goods when the ports and harbors were clogged?

What happened to the price of electricity when somebody discovered that solar panels don’t work without the sun and there’s this thing called “night” that follows “day”? Or when the same somebody discovered that wind does not always blow?

What happens when supplies have already been taken by somebody else?

What if there were an unnamed virus of unknown origin that made people sick? And what if people believed that a certain type of respiratory mask would help avoid sickness? What if there were not enough “masks” to go around? What if someone looked ahead and got a supply of “masks”? If someone had planned ahead, what would the consequences be?

Every time you get behind the wheel of your automobile, you have a chance of dying in a car crash. Every single time. Americans do die in car crashes. One American dies for every 70,000,000 vehicle miles (that’s SEVENTY MILLION miles!) traveled. The average car trip is about 10 miles. So, you have a one in 7 million chance of dying each and every time you get into your car. (“Thank you” to the National Highway Transportation Safety Administration and the Bureau of Transportation Statistics for these numbers – your tax dollars at work!) Americans drive a lot. We drive so much that over the course of our lives, we have an almost 1% chance of dying in that crash. Thank goodness for air bags, crumple zones, and seat belts!

Another branch of our beloved federal government (Department of Health and Human Services) says that at age 65, you have a 70% chance of needing an average of 3 years of skilled care. A big chunk of us, 20%, will need more than five (5!) years of care. Skilled care can come from family members, friends, paid help, long-term care facilities.

Let us recap. Less than 1% chance of flaming car crash death like in the movies. Greater than 70% chance of long-term care. Which one do you care about? Which bad result do you strive mightily to avoid? Which unhappy ending do you simply accept?

Motor vehicle mayhem is bad! Somebody ought to do something! And you do. Drive safely. Buckle up. Hands on the wheel. You know the drill.

Nursing Home Poverty is bad! So let’s ignore it? Let’s pretend it happens to somebody else. Anybody else. Even though the reality is that Americans hardly ever die in car crashes and almost all need long-term care. Care that is harder to get and more expensive by the day. If you can get it at all.

How To Avoid Nursing Home Poverty

Hang Onto Your Money and Stuff While Qualifying for Benefits. You are a taxpaying, conscientious, charitable, forward-thinking, God-fearing American. You pay into the system. You expect some payback from the system. Safe roads. Clean water. Food that is not poisonous. Protection from bad countries that want to make war on us. Not so long ago, we also expected the police to stop shoplifters and vagrants. That was back when we also expected that our national borders counted for something. Remember? Good times, good times.

Social Security. Regular folks who go to work each day also expect that they will have a minimum sort of income when they can no longer work. We call this: “Social Security.” Payroll taxes go in, monthly payments come out. You, the American taxpayer, pay for Social Security. You get payback for your pay in. You don’t have to be broke to get the Social Security you have earned and paid for.

Medicare. Regular folks who go to work each day also expect that they will have a minimum sort of health care when they can no longer work. We call this: “Medicare.” Payroll taxes go in, Medicare taxes/ premiums go in, medical payments come out. You, the American taxpayer, pay for Medicare. You get some payback for your pay in. You don’t have to be broke to get the Medicare you have earned and paid for.

Medicaid. Regular folks expect that there will be no provisions whatsoever for long-term care. We call this the triumph of hope over experience. You pay until you are flat broke. You can keep your house, but have no money for upkeep, taxes, insurance, or utilities. When you are flat broke, you must pay almost all your income to the nursing home or residential care facility. After you are flat broke (except for $2K).

How is long-term health care different than short-term health care? Or income? Or basic income support? It all comes from your tax dollars. You paid for all of it. Why should you go broke? Why shouldn’t you have choices? How is any of this fair? And it gets worse…

What if you were not the penny-saving, bill-paying, overtime-taking, money-for-a-rainy-day-type person that you are? What if payday meant casino-day? What if you were a consistent over-spender? What if your bankruptcy lawyer was on your Christmas card list? Well, then that long-term care is free, free, free. You are in debt to your eyebrows? Come on down!

It is only the responsible people who suffer from the current long-term care situation. People who planned ahead for themselves and their families. People who believed that they had “saved enough” to take care of it. People who believed their so-called “estate planners.” Whoops!

How Do You Protect Yourself And Your Loved Ones By Protecting Your Stuff?

Simple Answer. Get long-term care benefits without going broke. Medicaid wants you broke. But you do not have to accept what Medicaid wants. You can protect what you have earned. Here’s how:

How Medicaid Works

1. What If You Give Away Your Stuff?

What if you give away your stuff and then apply for Medicaid benefits? Medicaid will say, “We will not help you. You had stuff and gave it away. And so we will not pay.” This is called the “Penalty Period.” Medicaid will excuse itself for a period of time. The more you gave away, the longer Medicaid will not pay. Right now, for every $10,000 you give away, Medicaid will not pay for a month. Give away $120,000, Medicaid will not pay for an entire year! But then Medicaid will pay.

In the meantime, while Medicaid is not paying, the nursing home is suing you. And your kids. And your friends, And your first-grade teacher. And anyone else you gave stuff to. You thought you could keep the house? Ha-ha. You thought you could keep an automobile. Yuk-yuk. Whoops!

Funny thing, though. What if you gave away your stuff more than five (5) years ago? What if sixty-one (61) months ago you gave all that stuff away? Then you applied for Medicaid? Things are different. Now Medicaid does not care that you ever had that stuff at all. Does not matter.

So perhaps you should give all your stuff away. Right now. To the kids. Your neighbors. Your first-grade teacher. Then wait for five (5) years. And if you ever need long-term care after that, no problem! Medicaid does not care that you had that stuff and gave it away. Great Plan!

By now, the sharpest knives in the drawer have spotted the problem with this brilliant approach, right? If you give your stuff away, then you have no stuff. And you like your stuff. What to do?

2. What If You Give Away Your Stuff Without Giving Away Your Stuff?

How can you give away your stuff without giving away your stuff? By using a particular kind of trust, that’s how. For Medicaid purposes, you gave your stuff away. For federal tax purposes, state tax purposes, common sense purposes, you did not give your stuff away.

The IRS doesn’t think you did anything when you put your assets in this type of trust. Medicaid says you “divested” those assets. Medicaid says you gave those assets away. Medicaid starts the Five-Year Clock. Five (5) years after putting those assets into that trust, Medicaid will not count those assets as yours. And you will qualify for the Medicaid benefits you have paid for. Without sacrificing your lifesavings, cottage, other stuff.

3. Why Should You Want To Qualify For Medicaid Benefits And Keep Your Stuff?

Why? Do you like paying for the same thing twice? Are you opposed to getting any return on your tax dollars? Does the government know what to do with your money better than you do? Would it be a bad thing to get the government benefits you’ve paid for and have additional lifesavings to purchase additional goods and services? Is it wrong to get the same deal from the government that irresponsible folks get? Would it be better to be flat, busted broke and forced to go to a nursing home than to supplement at-home Medicaid with lifesavings to remain at home? Are your kids and grandchildren so undeserving and ungrateful that you’d rather give your money to the government?

4. This Is Too Good To Be True! Tricksy Stuff Like This Never Works For Regular Folks! Plus It Must Be Wrong Or Immoral Or Something Else That’s Bad Or My Planners Would Have Told Me All About It! And What If I Move Out Of State? And Give Me A Minute And I’ll Think Of Something Else…

On February 8, 2006, Congress overhauled the Medicaid system. Congress replaced 50 states going in 50 different directions with some general principles that apply to everybody. Seventeen years ago, I was shocked when this happened. The Medicaid landscape was rewritten, much to the distress of our long-term care clients. Tools and techniques that had been proven reliable were wiped out. But there was a silver lining to this dark cloud of Medicaid reform.

No longer did it make sense to wait-and-see. The environment was different. Now we had some assurance that a Michigan plan could work in Florida. Or Texas. Or South Carolina. But not California, nothing works in California.

Not only did we have a legal structure that worked from coast to coast, we could rely on that structure to be stable. And so it has proved. Over the last 17 years, thousands of these LifePlanning™ trusts have been implemented by regular folks. And they have worked. Every time. Saving millions of dollars. For regular folks. To maintain dignity. To preserve families. To keep the promise that hard work, saving, planning, and doing the right things will have good consequences for you, your spouse, your family.

For every Medicaid application involving these trusts, we submit a full copy of the trust and all the supporting documents. Total disclosure. Candid honesty. Written evidence. Full documentation. This stuff works because we scrupulously, thoroughly, exhaustively comply with every law, rule, precept, and policy.

Going broke is a choice. Your choice. It is not chance, bad luck, or misfortune.

 


 

Why Don’t You Deserve A Little Payback For All The Taxes You Paid In?

Why Do You Want To Spend Your Last Nickel On Long-Term Care?

Why Shouldn’t The Government Spend Your Money For You?

Traditional estate planning is concerned with avoiding probate, saving taxes, and dumping your leftover stuff on your beneficiaries. After you die. Nobody cares what happens to you while you are alive. How does that help anyone? Stupid.

Traditional estate planning fails because the overwhelming majority of us will need long-term skilled care. 70% of us. For an average of 3 years. And we will go broke paying for it.

Is it surprising that thousands of recreation properties: cottages, cabins, hunting land, are lost to pay for long- term care? Why is your estate planner hurting you and your family? It is evil intent? Or stupidity?

LifePlanning™ defeats Nursing Home Poverty. Keep your stuff. Get the care you have already paid for. Good for you. Good for your family. Good example for society.

When my mother suffered from the dementia which led to her death, over 10 years ago, their estate plan preserved their lifesavings. Mom’s months in the nursing home did not mean Dad’s impoverishment. Dad spent the last years with security and peace of mind.

Is Now A Bad Time For A Real Solution?

Perhaps you think you already have an answer to this problem. Maybe you do not see this as a problem at all.

It is possible that you do not believe in the passage of time or its effects on you.

Peace of mind and financial security are waiting for everyone who practices LifePlanning™. You know that peace only begins with financial security. Are legal documents the most important? Is avoiding probate the best you can do for yourself or your loved ones? Is family about inheritance? Or are these things only significant to support the foundation of your family?

Do you think finding the best care is easy? Do you want to get lost in the overwhelming flood of claims and promises? Or would you like straight answers?

Well, here you are. Now you know. No excuses. Get information, insight, inspiration. It is your turn. Ignore the message? Invite poverty? Or get the freely offered information. To make wise decisions. For you. For your loved ones.

The LifePlan™ Workshop has been the first step on the path to security and peace for thousands of families. Why not your family?

NO POVERTY. NO CHARITY. NO WASTE.
It is not chance. It is choice. Your choice.

Get Information Now. (800) 317-2812

Read the Print Version

Warning: The Story You Are About To See Is True. The Names Have Been Changed
To Protect The Innocent. Viewer Discretion Is Advised.

Reality. By and large, Estate Planning is a dumpster fire. A hellacious mess. Most of what you have done so far is probably wasted and likely counterproductive. Frequently you hear, “Well, it is better to do something than nothing at all!” Yeah. Guess so. Go with that.

Your Choice. Isn’t it great to hear happy talk? Everybody knows that there is nothing simpler or easier than planning for your future! Don’t we all like to hear that things are easy? Wouldn’t it be nice to be told that you haven’t wasted time and money in half-baked schemes? Schemes that deny reality. That will wreak havoc in the years to come. Do you prefer calm, soothing, pleasant misinformation, disinformation, mendacity, prevarication, half-truths, outright lies, and deception? Why not? Most folks do.

Do people want to hear that reality is complex? Is it fun to learn that you have been taken in? Are you surprised to learn that the “after-death” and “planning” industries are not run to achieve your goals, your family’s goals, but for the primary benefit of those running the show? Does it come as a shock that they all know your estate plan will fail? Your financial advisor, accountant, tax preparer, insurance agent, lawyer, and banker. Everyone with the slightest experience in or knowledge of the death industry knows this. Some practitioners soothe their conscience by steadily ignoring the facts. Others blame you, the client, for not following their advice. So. Your estate plan will fail. And that is OK! For them. Nobody wants to hear that, do you? Of course not. Perhaps you should go read the funnies now. Or the sports page.

The best part of the estate planning scam is that you have been set up to take the fall. Failure is all your fault. Your fault. They got it in writing. You can look it up. I’ll explain how they make you foot the bill. How you are at fault. Do you want the truth? Can you handle the truth? It is upsetting. Much more pleasant to look away. The sports page is calling… You don’t really want to know. If you knew, you would have to do something. Can’t have that.

Still here? Without upsetting the vast majority of folks who have done some planning, there is no way to accurately talk about the Estate Planning industry. Also angry and unhappy are the people who profit from the way things are. At your expense. At your family’s expense. Your estate plan can be a success. For you. Your Spouse. Your Family. But you won’t like hearing about it. It is not easy. I don’t promise easy. I only promise the truth. Accuracy.

Avoid Probate Save Taxes
Make It Easy For The Kids

Pit of Despair. Everybody wants to avoid probate, save taxes, and make it easy for their kids. Probate means high costs, long delays, and mysterious confusion. Your loved ones are abandoned to the tender mercies of those rapacious, ice-hearted villains: probate lawyers and judges. Oh, the humanity! Death Taxes are the final insult. You pay and pay. Income tax. Real estate tax. Sales tax. Use tax (whatever that is). Work for someone else: employment taxes. Work for yourself: self-employment taxes. And when you finally hand in your lunch bucket: Death taxes. And your poor kids. Waiting years for the pitiful, parsimonious pittance that might be left over. Wallowing in frustrating legalese. Condemned to a never-ending battle for truth, justice, and the American Way. A battle that only ends with exhaustion, back-biting, and family strife. The very angels in Heaven weep for your heirs.

Promises, Promises. Estate planners, including Internet gurus, attorneys, financial advisors, other professionals, and your brother-in-law solemnly promise that there is an easy way out of this Benighted Forest of Broken Dreams. Everybody is an Expert! At a recent LifePlan™ Workshop, an attendee described how the lake front cottage owners surrounding his parents’ cottage “avoided probate and taxes” by adopting a “strategy” that one of them had heard about. These were reasonable people. Owned lake front cottages. Plus their regular home. And like lemmings into the North Sea, they drew up disastrous deeds. One after the other. Follow-the-Leader. Off the cliff. And yet they were no worse off than many who took the professionals’ advice.

Wrong Goals, Wrong Strategy. Avoiding probate, saving taxes, and making it easy for the kids are important goals. But what if these were not the most important? What if fixation on these ideas distracted folks from the fundamental, critical goals? What if regular folks routinely went broke chasing these things while disregarding their real interests?

Airplane Story. Every passenger on an airliner has endured the safety briefing. Where the exits are. Your seat cushion is a floatation device. Insert the tab into the buckle of the seat belt. And of course, the oxygen mask.

Your flight attendant instructs you that, “If the windows pop out, oxygen masks will descend from the ceiling. If you are traveling with small children, put your own mask on first, then take care of the kiddies.” Seems kind of harsh, doesn’t it? Selfish, almost. Taking care of Number One! But the practical reality is that if you don’t take care of yourself, you can’t take care of anyone else. Good luck getting the kids’ masks on if you’ve turned blue.

First Things First. Estate Planning fails because the goals are wrong. Avoiding probate, saving taxes, making it easy for the kids. These all happen after you have died. And there is nothing wrong with any of them. But you are not dead. Yet. Maybe it would be a good idea to figure out how to hang on to your lifesavings while you are, you know, living.

But first, why your trust will (almost certainly) fail on its own terms.

Why Your Trust Will Fail

Simple Answer. You wanted to avoid probate, save taxes, make it easy for the kids. Will your revocable living trust achieve these most goals? No. Not usually. Hardly ever.

Probate Basics. If you have assets in your name, you are the boss of those assets. Use them. Sell them. Buy more. Give them away. It is your stuff to do with as you please. You are in control. And nobody else.

But what if you die? Now who’s the boss? You had complete control. Now you don’t. And neither does anyone else. Who gets the stuff? Who maintains it? Who sells it? Who gets the money? Who knows?

These questions are why we have the probate court. When stuff is no longer attached to a person because that person has died, the probate court figures out who should get it. If a person becomes disabled and can no longer manage their stuff, the probate court figures out who should manage it for the disabled person.

Your Last Will and Testament are simply instructions to the Probate Court stating: 1. Who should be in charge of your leftover stuff; and 2. Who should get your stuff. The leftovers. After you have died. Without the Probate Court and “probating the will,” your Last Will and Testament is meaningless. Useless. Does nothing. The only way a Will works is through Probate. The next time you hear that a Will means No Probate, you know better.

Revocable Trust Basics. Your revocable living trust is different. Your trust holds your property. Your trust property is managed by the trustee. While happy and healthy, you are the trustee. You also name the person to manage the stuff for you if/when you cannot, due to death or disability. The backup trustee is the Successor Trustee. You can have a whole string of successor trustees, one after the other, so you don’t have to worry about running out. Your revocable living trust contains your instructions. Who gets what. When. How.

Your revocable living trust works only on the stuff that is in the trust. Stuff with the trust name on it. Bank accounts, real estate, stocks, and bonds. All these things can be handled by your Successor Trustee if they are in your trust. With the proper trust name on the various accounts, your Successor Trustee can care for you, pay your bills, maintain your property. After death, the Successor Trustee can divvy up the leftovers, per your instructions, and distribute to your beneficiaries. All according to your plan. Super!

Why Almost All Trusts, Including Yours, Fail. Trusts fail because people do not put their stuff into the trust. [Vocabulary Word to the Wise: Putting stuff into a trust is called “funding” the trust.] Simple as that. Trusts only work on the stuff in the trust. If your stuff is still in your name, it goes through probate.

Harder Than It Seems. Various folks will tell you how easy it is to put your stuff into your trust. Not true. Decades of experience tell us that fully “funding” a trust takes 2-6 months. With the eager assistance of cheerful, diligent specialist paralegals. It is no wonder that the few folks who try to get their assets into their trusts give up.

The Exception to the Rule. There is a small minority of folks who actually transfer their assets into their trusts. Almost all the time. Who are these wonder-planners? Engineers! Civil, mechanical, chemical, and electrical engineers. How do they avoid the kryptonite? Most engineers accept that unless they do things that are required, they do not achieve the desired results. That’s not really a good answer, because doctors, nurses, surgeons, accountants, airline pilots, McDonald’s workers, and all the rest of us have the same experience. But for some reason, engineers are willing to do the hard work. And the rest of us are not.

How Do They Get Away Selling Trusts That Fail?
They Make It Your Fault

Simple Answer. You wanted to avoid probate, save taxes, make it easy for the kids. The lawyer gave you a binder full of papers. Including your trust. And your will. The trust is empty. Like a lawyer’s promise, there is nothing there. Void. Except, maybe, sometimes your house. [Until you refinance, sell, get a home equity line of credit.]

But there is something else in the binder. Usually right on top. A letter. Or a memo. Or instructions.

Your Fault. The Letter, Memo, or Instructions tell you that it is YOUR responsibility to put your assets into the trust. Usually there are handy hints on how to do so. Often the lawyer will offer to “help” with the transfers. For an additional fee.

According to one survey, these Letters, Memos, Instructions fail 96% of the time. Your stuff is not in the trust. Your stuff does not avoid probate. And it is all your fault.

Why Do They Sell Trusts That Fail?
Follow The Money

How It Works. In Real Life. You die. Your kids take that binder full of papers back to the lawyer. Your kids want your stuff. You were promised avoiding probate. And now it is time to deliver.

The kids present the lawyer with that binder crafted so many years ago.

The lawyer looks through the binder.

Sadly, sorrowfully, the lawyer informs the kids that the estate will have to go through probate.

The kids are dismayed. But Mom and Dad did not want to go through probate! That’s why they did the trust…

Sadly, sorrowfully, the lawyer takes the Letter, Memo, Instructions out of the binder. The lawyer reads to the kids that it was Mom and Dad’s responsibility to put their stuff into their trust. But Mom and Dad failed to do so. It is Mom and Dad’s fault that the assets must now go through probate. Thank Goodness the lawyer was keenly farsighted enough to prepare Wills that put the stuff into the trust.

So now the Will must be probated. The family is going through the probate process. Which is not cheap. With the same lawyer who failed to get the stuff into the trust in the first place. Who does that serve? Who do you think?

Training For Failure. A well-respected institute offers “Estate Planning” certificates to attorneys who take a certain number of their educational courses. Several attorneys from the firm have taken these courses and earned the Certificate. When the question of getting assets into trusts was raised, instructors stated “That’s what the will is for!” In other words, lawyers are being trained that to make the trust “work” they must rely on probating the will that comes as part of the package. And didn’t you want to avoid probate? Wasn’t that the point of the trust?

Pay Me Now OR Pay Me Later. Why do clients pay extra for trusts? Isn’t it because trusts avoid probate and probate is expensive? Don’t the lawyers say “Pay me a little more now for the trust or a lot more later for probate?” Isn’t that the sales pitch?

Pay Me Now AND Pay Me Later. What if reality was: Pay me extra now for the trust (on the promise of avoiding probate) and pay me later for probate too? Trusts fail because they do not hold all of your assets. And your kids must go through probate to get your assets into the trust. And it is your fault.

Next Week: What Is The Answer? What Is The Real Question?

Same Bat Time, Same Bat Channel. Tune in next week for another thrilling visit to the frontier of estate planning.

What can be done? What is the true goal of estate planning? Is it really about the kids? How can you and statutory wills? Is there a method that has been used for many years by thousands of families to avoid nursing home poverty, avoid probate, save taxes, AND make it easy for the kids?

 


 

Why Don’t You Deserve A Little Payback For All The Taxes You Paid In?
Why Do You Want To Spend Your Last Nickel On Long-Term Care?

Traditional estate planning is concerned with avoiding probate, saving taxes, and dumping your leftover stuff on your beneficiaries. After you die. Nobody cares what happens to you while you are alive. How does that help anyone? Stupid.

Traditional estate planning fails because the overwhelming majority of us will need long-term skilled care. 70% of us. For an average of 3 years. And we will go broke paying for it.
Is it surprising that thousands of recreation properties: cottages, cabins, hunting land, are lost to pay for long- term care? Why is your estate planner hurting you and your family? It is evil intent? Or stupidity?

LifePlanning™ defeats Nursing Home Poverty. Keep your stuff. Get the care you have already paid for. Good for you. Good for your family. Good example for society.

When my mother suffered from the dementia which led to her death, over 10 years ago, their estate plan preserved their lifesavings. Mom’s months in the nursing home did not mean Dad’s impoverishment. Dad spent the last years with security and peace of mind.

Is Now A Bad Time For A Real Solution?

Perhaps you think you already have an answer to this problem. Maybe you do not see this as a problem at all.

It is possible that you do not believe in the passage of time or its effects on you.

Peace of mind and financial security are waiting for everyone who practices LifePlanning™. You know that peace only begins with financial security. Are legal documents the most important? Is avoiding probate the best you can do for yourself or your loved ones? Is family about inheritance? Or are these things only significant to support the foundation of your family?

Do you think finding the best care is easy? Do you want to get lost in the overwhelming flood of claims and promises? Or would you like straight answers?

Well, here you are. Now you know. No excuses. Get information, insight, inspiration. It is your turn. Ignore the message? Invite poverty? Or get the freely offered information. To make wise decisions. For you. For your loved ones.

The LifePlan™ Workshop has been the first step on the path to security and peace for thousands of families. Why not your family?

NO POVERTY. NO CHARITY. NO WASTE.
It is not chance. It is choice. Your choice.

Get Information Now. (800) 317-2812

Read the Print Version

He Was A Tight-Fisted Hand At The Grindstone…

(Warning: Typos Intact, Not Legal Advice)
(Copyright Notice: All Headlines Are Quoted From Dickens’ A Christmas Carol)

There Never Was Such A Goose.

Can my sister refuse to show me rent, bill receipts, and bank statements?
Both me and sister were appointed co-administrators of our deceased parents estate. My sister is collecting and holding the rent. She refuses to give any receipts or show me bank statements.

It’s Enough For A Man
To Understand His Own Business,
And Not To Interfere With Other People’s

Simple Answer. No. Sister got bad advice somewhere. Why is she withholding information from her co-administrator? Plus, brother is probably co-beneficiary. Brother needs the information to carry out his responsibility as administrator of the estate. Brother is NOT free to let sister get away with this. Brother is duty-bound to challenge sister, in court if need be. Brother literally owes it to mom and dad to find out what is going on and to carry out their intention.

Interesting Note: Sister embezzles, and brother does not find out. He does not want to find out. He does not want to fight sister. He does not want to know. Brother lets it slide. Isn’t brother an accessory to elder financial abuse? Isn’t brother in big trouble?

Bottom Line: When you agree to act as trustee, agent, personal representative, patient advocate, or other fiduciary, you are taking on a big job. You must fully perform that big job. Sorry if you don’t like it, you agreed. If you did not want the job, you should not have taken it. You should have said “No.” or “NO!” Or no way, no how, not in a thousand million years.

Observation: It is no big deal to get a person to act as Trustee or Executor. The First Time. But it is damn near impossible to get that same person to do it a second time. Fool me once, shame on you. Fool me twice, shame on me.

*************

I Have Seen Your Nobler Aspirations Fall Off One By One, Until The Master-Passion, Gain, Engrosses You.
Have I Not?
Our Contract Is An Old One. It Was Made When We Were Both Poor And Content To Be So, Until, In Good Season, We Could Improve Our Worldly Fortune. You Are Changed. When It Was Made, You Were Another Man.

Should I sign a post-nuptual?
My husband and I bought a house almost 3 years ago. My husband put the down payment, a portion of which his parents gave him.
I am equally responsible for the loan and my name is on the deed. I contribute to the household expenses every paycheck. We renovated the basement, to which we both contributed, my husband much more than I. He is insisting that I sign a post nup saying that he would get back every penny of the money he has put into the house
should we get divorced. He wanted to renovate the entire second level, but wants all that money back if we divorce. I have refused, stating that we are married and therefore equal owners. He has subsequently taken all of his parents assets (his father passed early this year) and placed it in a trust controlled by him and only for his family, including our children. I am excluded because I am not a blood relative. He has made it a point to tell me he owns nothing except our house, because he has put everything in this trust. He believes our house is more his than ours, and wants to split the equity only after he gets back all his money. Is this reasonable??

Should You Sign A Post-Nuptial? No. No you should not.

Is This Reasonable? No, No, it does not seem reasonable to me. His actions are not illegal. In fact, the law excludes inheritances from marital property.. So maintaining his family inheritance for his family is well grounded. But is that how you wish to live?

On the Other Hand: Do you recognize your dearly beloved in Dickens’ description of Scrooge?

Oh! but he was a tight-fisted hand at the grindstone, Scrooge! a squeezing, wrenching, grasping, scraping, clutching, covetous old sinner! Hard and sharp as flint, from which no steel had ever struck out generous fire; secret, and self-contained, and solitary as an oyster. The cold within him froze his old features, nipped his pointed nose, shriveled his cheek, stiffened his gait; made his eyes red, his thin lips blue; and spoke out shrewdly in his grating voice. A frosty rime was on his head, and on his eyebrows, and his wiry chin. He carried his own low temperature always about with him; he iced his office in the dog-days and didn’t thaw it one degree at Christmas.

Wake Up and Smell the Coffee! Is this how you wish to live your life? The Law does not have all the Answers. Some you have to figure out on your own. This is one of those questions. Wasn’t that easy?

*************

And Therefore, Uncle Scrooge, Though Christmas Has Never Put A Scrap Of Gold Or Silver In My Pocket, I Believe That It Has Done Me Good, And Will Do Me Good; And I Say, God Bless It!

Must a Successor Trustee make a Distribution-in-Kind of gold coins left in a trust?
My wife’s parents Trust left every thing to their two daughters to be divided equally. Her sister does not want half of the coins, my wife does.
My concern is if the coins which are all identical are are taken in kind that the tax liability may be different than a direct inheritance of the coins. The coins are documented as in the Trust. The cost of valuing the coins is a concern as well. This is in the hands of a 3rd party fiduciary as the daughters don’t get along.

Death and Taxes. Inherited property, like these gold coins, get a special tax benefit. When the property is sold by the trust or transferred to the beneficiary, there is no tax. And property is treated, for tax purposes, as though the beneficiary owner paid fair market value for it on the date of Dad’s death.

Dad Sells His Coins: Dad paid $5 for each gold coin. While alive, Dad sells a gold coin for $10. Now Dad has $5 of profit. Therefore, Dad must pay tax on the profit. Also known as capital gains.

Daughters’ Doubloons. When the trust sells the coins, the trust also has no profit, no capital gain. No tax. Because the trust is treated as if it had paid full fair market value for the coins. The coins were then sold for fair market value. There is no profit. There is no tax. And the tax-free money goes to the daughter who did not want the coins.

Your wife, the other daughter, wants to keep the coins. That’s just fine. No problem and no tax problem. While valuing coins is difficult, it must be done. Write down the value. Get a written appraisal. At some point, your wife will decide that rather than the gold, she would rather have green, folding money.

When she sells, she is treated as if she paid fair market value, back when the last parent died. Even if the value has continued to increase, your wife still pays much less tax.

Dad paid $5 for each coin. Dad dies.

At his death, the coins are worth $10. Daughter (your wife) sells a coin. For $20.

Daughter’s profit is not $15. Daughter is treated as if she had paid $10 for each coin (the value on Dad’s date of death).

Yes, it is complicated. But did you think the government would make it easy for you to keep any part of your stuff? Of course not…

And It Was Always Said Of Him, That He Knew How To Keep Christmas Well, If Any Man Alive Possessed The Knowledge. May That Be Truly Said Of Us, And All Of Us!
And So, As Tiny Tim Observed, God Bless Us, Every One!

 


 

Bah,” Said Scrooge, “Humbug.” Why Don’t You Deserve A Little Payback For All The Taxes You Paid In?

Why Do You Want To Spend Your Last Nickel On Long-Term Care?

Why Shouldn’t The Government Spend Your Money For You?

Traditional estate planning is concerned with avoiding probate, saving taxes, and dumping your leftover stuff on your beneficiaries. After you die. Nobody cares what happens to you while you are alive. How does that help anyone? Stupid.

Traditional estate planning fails because the overwhelming majority of us will need long-term skilled care. 70% of us. For an average of 3 years. And we will go broke paying for it.

Is it surprising that thousands of recreation properties: cottages, cabins, hunting land, are lost to pay for long-term care? Why is your estate planner hurting you and your family? It is evil intent? Or stupidity?

LifePlanning™ defeats Nursing Home Poverty. Keep your stuff. Get the care you have already paid for. Good for you. Good for your family. Good example for society.

When my mother suffered from the dementia which led to her death, over 10 years ago, their estate plan preserved their lifesavings. Mom’s months in the nursing home did not mean Dad’s impoverishment. Dad spent the last years with security and peace of mind.

Is Now A Bad Time For A Real Solution?

Perhaps you think you already have an answer to this problem. Maybe you do not see this as a problem at all. It is possible that you do not believe in the passage of time or its effects on you.

Peace of mind and financial security are waiting for everyone who practices LifePlanning™. You know that peace only begins with financial security. Are legal documents the most important? Is avoiding probate the best you can do for yourself or your loved ones? Is family about inheritance? Or are these things only significant to support the foundation of your family?

Do you think finding the best care is easy? Do you want to get lost in the overwhelming flood of claims and promises? Or would you like straight answers?

Well, here you are. Now you know. No excuses. Get the information, insight, inspiration. It is your turn. Ignore the message? Invite poverty? Or get the freely offered information. To make wise decisions. For you. For your loved ones.

The LifePlan™ Workshop has been the first step on the path to security and peace for thousands of families. Why not your family?

NO POVERTY. NO CHARITY. NO WASTE.
It is not chance. It is choice. Your choice.

Get Information Now. (800) 317-2812

Read the Print Version

(Warning: Typos Intact, Not Legal Advice)

Greedy Grasping Stepmother?
Conniving Stepsisters?
Stop Me If You’ve Heard This One Before…

Can my step-mother, who has rights to live in the house till she dies, pay lawyers and take money out of my Dads Estate? NO WILL

When sibling took my dad & stepmother to draw up a will, years back. Stepmother said she didn’t want it-she wanted Everything my Dad had. She told him that day she could divorce him & take half of everything. She moved out for a wk when I got POA & he put bene on his Bank accts & investments, leaving her enough to live on & added her to the deed, to live there till she dies -then reverts back to his 3 prev children. I moved in with them, to try to help with his care– she said she was living in Hell & hoped to die in her sleep.. She called him ugly names and smacked him (on his legs) when he was talking late at night and bothering her..

I slept on the sofa beside him – he had his days & nights mixed up.. & trouble sleeping at night.. she would rather him be a nursing home. Now she’s upset that he didn’t leave her ALL and has hired an elder lawyer .. her daughter asked if my Dad’s estate would be paying the bills he paid in life and I’m afraid they are figuring a way to take money away from the house. we aren’t allowed to see or talk to her & they want us to come get our dads belongings that they are putting in his garage. he died Nov 2nd at 85- they were married 26 years. She is 83

Chapter One: 26 Years Of Wedded Bliss

Chapter Two: The Aftermath

Why These Things Happen: When people live longer, they tend to find fault with the other people they’ve been living with. Sometimes those other people die. Frequently they move on. To make other mistakes. With other people. Bringing their baggage along with them. Baggage that frequently includes other human beings, known as “children.” Children who never, at any time, saw in that other person what you saw in the other person. Hope springs eternal. Keeps life interesting.

Just the Facts, Just the Facts: Here’s a story of a lovely lady. Who was bringing up a very lovely girl. It’s the story, of a man named [Fill in the Blank], who was busy with three kids of his own. ‘til the one day when that lady met this fella and they knew that it was much more than a hunch…

But now she refuses to engage in estate planning. He wants his leftovers to go to his kids. After he dies. After she dies. After she has used the marital assets. Then passed over where those assets are no longer needed. But. She wants his leftovers. Now. And when he dies. Nothing for his kids. What’s mine is mine and what’s yours is mine too.

What Might Have Been: This is not an unusual situation. How do we make sure that the surviving spouse continues to enjoy the life that they have built over the last 20 years? How do we also honor the love each parent has for their kids? How do we honor the commitment that these married folks have made to one another? How do we avoid nursing home poverty that wrecks everything for everyone?

First Things First: An easy way to prevent fights over stuff is to make sure there is no stuff. Not surprisingly, there is a popular way to make sure there is no stuff over which to fight. Simply liquidate lifesavings and pay for a long-term care facility, nursing home, assisted living, or at-home care provider. Care services are extremely expensive now. Care services are getting more expensive by the day. Going broke does seem to be a popular strategy. Freedom is just another word for nothing left to lose.

Planning to avoid nursing home poverty is well- established. The legal foundations are sound. The beneficial consequences are undeniable. And the psychological effects are much greater than most folks realize. The stepmother in this letter is greedy, grasping, uncooperative, and mean. Maybe that is just who she is. Always has been, always will be. But I wonder. How well do you yourself function when fear and anxiety set in? Imagine yourself threatened. Weak. Unable to control your destiny. Physical and mental decline undeniable. Will you be your best self? Maybe. Maybe not. Would it make any difference if your future were secure? If you knew that there was nothing to worry about. Does security bring generosity?

Gratitude? Sometimes, I guess.

Chances Missed: By rejecting Dad’s efforts to plan, Stepmom put him in a bind. Cooperative, joint, mutual planning that is agreed upon by the couple works best. Dad could write off his kids. Or he could plan for both wife and kids, without Stepmom’s contributions.

Stepmom threatened Dad with divorce. He did not want that. Stepmom insisted Dad disinherit his kids. He did not want that either. So Dad put Sonny-boy’s name on some accounts. It seems that Dad also put Stepmom’s name on other accounts. Dad “put bene on his Bank accts & investments, leaving her enough to live on”.

Plus Stepmom gets (at least) so much of his Social Security Retirement that is more than her own. Maybe pension, too.

I would also guess, from our correspondent, that Dad gave Stepmom a “life estate” in the homestead. After the estate planning fiasco, Dad “added her to the deed, to live there till she dies -then reverts back to his 3 prev children”. That’s a pretty good description of how a life estate works. Dad, who owns the real estate, gives Stepmom the right to live there. For as long as she lives. And after death, the real estate goes to whomever Dad set forth on the deed.

Practical Pointer: What if Stepmom challenges all this and tries to set it aside? Michigan’s Estate and Protected Individual Code has the answers. Stepmom and Dad have no kids together. Stepmom and Dad each have descendants of their own. In this case, surviving Stepmom gets the first $100,000 and splits the remainder with Dad’s kids. Adjusted for inflation since the year 2000, Stepmom would actually get the first $161,000 and divide the remainder equally. One-half for the surviving spouse. One-half divided among the decedent’s children.

Interesting Note: What if Stepmom and Dad had at least one child together? Then Stepmom would get the first $242,000. And divide the rest as usual.

Bottom Line: Dad and Stepmom missed an opportunity to provide for one another and perhaps build a happier life together. Stepmom would probably lose more at this time by contesting rather than accepting Dad’s solution. Can Stepmom leave the homestead in debt by charging expenses against it? Nope. Can Stepmom draw money from the estate that Dad did not leave to her? No. Does it make sense for Stepmom to try and set it all aside? Probably not, but it all comes down to the numbers.

***********************

Does Any Good Deed Go Unpunished?
Or Unrecorded?

What do i do as a successor trustee if the real property deeds were prepared, signed and notarized but never recorded?

it appears that when the trust ws prepared so were the deeds, but the original deeds are still in the binder with the will and trust, etc. and there is no record of them ever being recorded. Can I simply record them now? it has been about 2 years since everything was signed and notarized.

Short Answer: No. Problem. At. All.

Longer Answer: In each county, the Register of Deeds provides a permanent record of transfers, encumbrances, liens, easements, and all the other items that affect the ownership or use of real estate. Provided that the document meets certain minimum requirements, the Register MUST record the document. To prove that the document existed. But there is no legal effect to recording. A recorded deed or other document does not become more “legal” because it is recorded.

Deeds in Michigan are effective when delivered with donative intent. Was the deed written? Was the deed delivered? Did the person writing the deed intend to transfer the property? Recording with the Register of Deeds is, of course, pretty good evidence that you meant to transfer the property, of donative intent. On the other hand, Michigan courts have held that recording a deed with the Register of Deeds is not, all by itself, the answer. Deeds that were recorded without “donative intent” have been thrown out.

Bottom Line: When buying a home, recording the deed is of utmost, paramount, super-duper importance. You need to pay the property taxes. You need to live in the thing. You need to get the mortgage. Git R Done!

Estate planning requirements are different. You already own the darn place. No one is going to evict you. You are doing the planning for purposes other than you need a place to lay your weary head. That’s why it is not unusual for deeds in the estate planning context to be recorded later. Sometimes much later. Sometimes as a privacy strategy. Sometimes just because.

Warning! In Michigan, a recorded deed wins! Unless the person recording the deed knows about a prior unrecorded deed.

Here’s How It Works: Let’s say the person who set up this trust (the “Grantor”) made you the Trustee. Then the Grantor names someone else as Agent under a Financial Power of Attorney. [Yes. This is a really stupid way to do things, but it happens.]

Let’s say that the Trustee sells the home to Person A. Trustee gives Person A the deed putting the house into the Trust. Trustee also gives Person A a deed transferring the house from the Trust to Person A.

Person A sets off for the Register of Deeds, but stops for lunch.

In the meantime, the Agent under the Financial Power of Attorney, sells the house to Person B. Agent gives Person B a deed transferring the house to Person B. Person B had a big breakfast so heads straight to the Register of Deeds and records his deed.

Person B wins the race to the Register of Deeds and records first. Person B has no idea about the trust or Person A. Who owns the house? Person B.

But what if Person B knew about the deed to the Trust? What if Person B was on notice? If Person B knows that Trustee already deeded the house to Person A, Person B loses.

And that’s why Michigan’s recording statute is called “Race/Notice”. Whoever wins the RACE to the Register, without NOTICE of another deed, wins. Ain’t the law fascinatin’?

***********************

It’s Nice To Be Nice. Or Is It?
Is it a liability for me to be on my elderly father’s checking account?

My father is 92 and his only income is the $800 per month that he gets from Social Security and SSI. He’s also on Medicaid. His mind is slipping away quickly and he is having trouble writing checks to pay bills. I’m already on his account as a beneficiary, but he is concerned that he will become incapacitated and he wants to add me to his account as an authorized signer. I am concerned that other, less involved family members, could accuse me of mishandling this money. Is that something that could turn into a liability for me? Are there any other issues I should be looking out for?

Short Answer #1: No, it is not a liability for you to be authorized signer on Dad’s checking account. So long as you do not steal the money. Then you’ve got troubles.

Short Answer #2: Yes, you will become a target for the slings and arrows of outrageous fortune that your nearest and dearest will launch in your direction. Nothing you do will be right or fair or just. You will have to sit at the kids’ table at Thanksgiving. Lump of coal in your Christmas stocking.

Longer Answer: You need Dad to give you a Power of Attorney. Then you can do all the things he wants you to do. Be aware: the Social Security Administration does not care about Powers of Attorney. Or probate court guardianship/conservatorship. To satisfy the SSA, you have to become Dad’s “Representative Payee” down at the Social Security office. The Veterans Administration has a similar program.

Ancillary Advice: Get a Health Care Power of Attorney while you are thinking about it.

Free Advice and Worth What You Paid for It: The ultimate legal test here is “Were you stealing?” If not, you are fine. If yes, big BIG penalties. So don’t steal. Do the old man a solid. Get a good Financial Power of Attorney. That means don’t download it from the Interwebs. Spend a few minutes with a real lawyer about the in’s and out’s.

And every time you sign your name to anything for Dad, add a comma, and POA: “John Jones, POA”! You’ll be fine. Probably. Buena suerte.

 


 

Why Don’t You Deserve A Little Payback For All The Taxes You Paid In?

Why Do You Want To Spend Your Last Nickel On Long-Term Care?

Why Shouldn’t The Government Spend Your Money For You?

Traditional estate planning is concerned with avoiding probate, saving taxes, and dumping your leftover stuff on your beneficiaries. After you die. Nobody cares what happens to you while you are alive. How does that help anyone? Stupid.

Traditional estate planning fails because the overwhelming majority of us will need long-term skilled care. 70% of us. For an average of 3 years. And we will go broke paying for it.

Is it surprising that thousands of recreation properties: cottages, cabins, hunting land, are lost to pay for long- term care? Why is your estate planner hurting you and your family? It is evil intent? Or stupidity?

LifePlanning™ defeats Nursing Home Poverty. Keep your stuff. Get the care you have already paid for. Good for you. Good for your family. Good example for society.

When my mother suffered from the dementia which led to her death, over 10 years ago, their estate plan preserved their lifesavings. Mom’s months in the nursing home did not mean Dad’s impoverishment. Dad spent the last years with security and peace of mind.

Is Now A Bad Time For A Real Solution?

Perhaps you think you already have an answer to this problem. Maybe you do not see this as a problem at all.

It is possible that you do not believe in the passage of time or its effects on you.

Peace of mind and financial security are waiting for everyone who practices LifePlanning™. You know that peace only begins with financial security. Are legal documents the most important? Is avoiding probate the best you can do for yourself or your loved ones? Is family about inheritance? Or are these things only significant to support the foundation of your family?

Do you think finding the best care is easy? Do you want to get lost in the overwhelming flood of claims and promises? Or would you like straight answers?

Well, here you are. Now you know. No excuses. Get the information, insight, inspiration. It is your turn. Ignore the message? Invite poverty? Or get the freely offered information. To make wise decisions. For you. For your loved ones.

The LifePlan™ Workshop has been the first step on the path to security and peace for thousands of families. Why not your family?

NO POVERTY. NO CHARITY. NO WASTE.
It is not chance. It is choice. Your choice.

Get Information Now. (800) 317-2812

Read the Print Version

Better To Light One Candle Than Curse The Darkness
Like A Presidential Press Conference: Typographical Errors Ignored – Punctuational Poltroonery Preserved And Not Legal Advice!

“Neither A Borrower Nor A Lender Be” – Shakespeare

Am I responsible for my husbands credit card debt if the cards are only in his name?
My husband is in a Medicare skilled nursing facility and is receiving SSI disability and is expected not to recover. Am I responsible for his credit cards that he took out in his name only?

Accurate Answer: You are not responsible for your husband’s debts. That is because the credit card company loaned money to your husband, not to you. One hopes you do not feel any twinge of responsibility for his debt.

Problematic Puzzle: Why do credit card companies issue credit cards to older folks who have no reasonable ability to pay them back? Fact: Most older folks are basically honorable. And don’t go bellyaching and begging for debt “forgiveness.” Does the immediate 3-4% credit card fee on everything folks buy on the credit card have anything to do with it? Hmmmm.

Obnoxious Observation: Our correspondent states that her husband in in a “Medicare skilled nursing facility” and “receiving SSI disability.” Probably not. Medicare only pays for a short (20 days) period of rehabilitation. Then you have a $200/day co-pay for the next 80 days.

But Medicare will boot you off rehab before you get the 20 days, so don’t worry about the next 80. Appeal all you want. You will lose. So, husband is probably on Medicaid. And when Social Security figures that out, the Supplemental Security Income (SSI) will vanish. And if anyone tells you that you’ll get 100 days of nursing home on Medicare, feel free to roll your eyes.

“Venus Smiles Not In A House Of Tears” – Shakespeare

Can the next door neighbor sell my friends house , I have a will, he is in nursing home?? My friend is in a nursing home with a brain tumor I am in his will, his next door neighbor wants to sell his house, can he?

Educated Guess: Next Door Neighbor is the guardian/conservator for your friend. OR Your friend has given Next Door Neighbor a financial power of attorney with real estate provisions.

Accurate Answer: Next Door Neighbor has the authority to sell your friend’s house, whether that authority was granted by the Probate Court or by your friend directly. It is common for folks to sell all their stuff when the $10-15,000/ month nursing home bill arrives. It is not usually a good idea, but it is popular. And there you have it.

In Case You Were Wondering: The will has nothing to do with any of this. A will is simply instructions to the Probate Court after the testator (person who made the will) has died. After the person has died. Not before. After death. Postmortem. Will don’t mean a thing.

Until you have died. Period.

“The World Is Not Thy Friend, Nor The World’s Law” – Shakespeare

Can I keep getting my medicaid insurance if I inherent money from a lost parent
My mother recently passed away and left me some inheritance. Medicaid insurance is stating that if i have over 2,015 dollars in my bank account i will lose my insurance. I am
almost disabled and have to have my insurance. This does not make sense to me.
Could you please help me understand if this is right. Thank you

Accurate Answer: Most Medicaid programs for older folks, including the one that pays your Medicare premiums, have an asset limit. The limit on “countable assets” is usually $2000. Countable assets include cash, real estate that is not your homestead, a second car, gold bars, and other items of value. So, if you have $2015 in the bank, you are over. And with Medicaid, over is over. If you are over by one dollar, you are over. If you are over by one million dollars, you are over. And then you lose your benefits.

Shopping Suggestion: Go to the grocery store. Buy a gallon of milk, a loaf of bread, 2 dozen eggs, a stick of butter, 2 pounds of hamburger, a couple of apples. Or one bottle of wine. There. Now your bank account is below $2000! You are welcome, sir!

“Love Is Like A Child, That Longs For Everything It Can Come By” – Shakespeare

What is the best way for me to legally get paid for caring for my bedridden mother 24/7 who draws SS? She lives with me now, and I provide 24/7 care for her, changing her diapers, providing her meals, setting her up for her meals, brush her hair, clip her nails, wash and fold her clothes, pay her bills, etc. My power bill is taking a hit due to the TV and oxygen condenser constantly running.

Would charging rent be the best way? She does have a separate POA person.

So, mother doesn’t mind paying me. Is there a limit to what I can charge? I know the nursing homes take the entire check less $30, then they take that if you want to watch TV in the room to pay the cable bill. So, all my mother needs is to be taken care of, and whatever she needs, I can buy her.

Accurate Answer: In Michigan, the Bridges Eligibility Manual was rewritten years ago to make it virtually impossible to pay a family member caregiver. There is a procedure, but it is so convoluted that regular folks living regular lives will not be able to qualify.

Parent paying rent is a different story. But. Involve a rental property management company or real estate agent (get two of ‘em!). Get a written opinion. What is the market rental for the square footage mom will occupy in your home. Get it in writing.

Do not pay for mom’s stuff. Do not pay her cable bill. Or for her groceries. Or anything else that mom would have to pay for herself. Mom’s expenses have to come from mom’s pocket. This is a trap for generous kids. Over and over. You go to the grocery store. You buy the stuff on mom’s list. You pay for it all. You circle mom’s stuff on the receipt. Mom reimburses you. But because mom has no legal obligation to reimburse you, it will be treated as a gift. And mom will be penalized. So. Use mom’s debit card at the grocery store. Have mom pay her own cable bill. Otherwise, when (if) mom needs long-term care, Medicaid will say she has been giving her money away. And Medicaid will hit mom with a penalty period. Not good.

 


 

Will Your Kids Unite In Thanksgiving?

You Worked Hard, You Played By The Rules
Is It Bad For Your Family To Get A Bit To Be Thankful For?

Did You Leave Your Loved Ones A Belly Ache Of Stale Candy?

Traditional estate planning is concerned with avoiding probate, saving taxes, and dumping your leftover stuff on your beneficiaries. After you die. Nobody cares what happens to you while you are alive. How does that help anyone? Stupid.

Traditional estate planning fails because the overwhelming majority of us will need long-term skilled care. 70% of us. For an average of 3 years. And we will go broke paying for it.

Is it surprising that thousands of recreation properties: cottages, cabins, hunting land, are lost to pay for long- term care? Why is your estate planner hurting you and your family? It is evil intent? Or stupidity?

LifePlanning™ defeats Nursing Home Poverty. Keep your stuff. Get the care you have already paid for. Good for you. Good for your family. Good example for society.

When my mother suffered from the dementia which led to her death, over 10 years ago, their estate plan preserved their lifesavings. Mom’s months in the nursing home did not mean Dad’s impoverishment. Dad spent the last years with security and peace of mind.

Is Now A Bad Time For A Real Solution?

Perhaps you think you already have an answer to this problem. Maybe you do not see this as a problem at all.

It is possible that you do not believe in the passage of time or its effects on you.

Peace of mind and financial security are waiting for everyone who practices LifePlanning™. You know that peace only begins with financial security. Are legal documents the most important? Is avoiding probate the best you can do for yourself or your loved ones? Is family about inheritance? Or are these things only significant to support the foundation of your family?

Do you think finding the best care is easy? Do you want to get lost in the overwhelming flood of claims and promises? Or would you like straight answers?

Well, here you are. Now you know. No excuses. Get the information, insight, inspiration. It is your turn. Ignore the message? Invite poverty? Or get the freely offered information. To make wise decisions. For you. For your loved ones.

The LifePlan™ Workshop has been the first step on the path to security and peace for thousands of families. Why not your family?

NO POVERTY. NO CHARITY. NO WASTE.
It is not chance. It is choice. Your choice.

Get Information Now. (800) 317-2812

Read the Print Version

Truth Stranger Than Fiction

Terrifying Typos – Slaughtered Syntax – Painful Punctuation – Obviously Original
And Still Not Legal Advice!!

Do Not Spoil Your Golden Anniversary Or Opportunity

IS IT POSSIBLE FOR A MARRIED WOMAN TO HAVE A TRUST IN ONLY HER NAME OR MUST HER HUSBAND BE ON IT TOO?

I had an inheritance trust in my name only but when we moved to Mi and wanted to change to the new assets, I was told my husband and I had to both be on it. This has been no problem, we’ve been married almost 50 yrs and all is well except he is showing the very first stages of dementia and I would like to keep him from damaging our retirement fund. Can I have the trust in my name and my son’s name. He will take care of the trust when we die.

Short Answer: Possible for a married woman to have her own trust? Yes. Of course. This isn’t Russia. (Is this Russia? No!) So yes of course you can have your own trust. And eat it too!

Longer Answer: Your deceased relative was uncommonly on the ball! Almost all estate planners overlook the charming opportunities presented by death. Sorrowfully, most simply dump assets on beneficiaries. Such laziness would be malpractice, except everybody’s doing it. Because monkey see/ monkey do is a pretty good defense against malpractice.

Also know as the “generally accepted standard of care”. Poor standard of care, poor results… but not malpractice. Why isn’t the standard: “best practices”? Don’t know.

Shouldn’t the test be, did you do the best thing? Hmmm. Let’s dig up that corpse next Halloween.

She: You Only Love Me For My Trust!
He: Yeah So?

The Good: Your relative left you assets in trust. Hurrah! Of course, we do not know the terms of the “inheritance trust,” but let us (charitably) assume the best. Let’s guess that your “inheritance trust” was structured as a third-party supplemental needs/discretionary trust. Done properly, the inherited assets are protected from lawsuits and long-term care. And protected immediately!

Your aged relative, R.I.P. was aware (we hope) that even 50-year golden anniversary marriages occasionally hit the skids. State law says inheritances don’t count in divorce. As a practical matter, everyone knows inheritances do “count.” When assets are dumped from an estate, the first inclination is to put the money in a joint account.

You know it’s true! Then, like a dervish demon from the fiery furnace, the inheritance dollars flee, fly, flit away to get divvied up… But put those assets in a well-constructed trust and you have driven a stake through the heart of the nefarious vampire divorce lawyer seeking plunder!

Perhaps aged relative was also familiar with the “very first stages of dementia beginning to show.” Wise old bird! Relative knew that you would soon be face-to- face with the original Punisher:

Medicaid. Done properly however, your inheritance trust assets are secure from Medicaid’s ghastly, ghoulish, grim, gruesome, grisly, grasping grip. [See what you can do with a thesaurus?] Bottom Line: you are not going broke when hubby needs help because your inheritance trust assets are protected.

The Bad: “When [you] moved to Mi… [you] wanted to change to the new assets…” Probably you just changed financial advisors or re- arranged your investment portfolio.

Dealing with assets already in the inheritance trust does not affect the validity of the trust. If by “new assets” you simply mean replacement investments for stuff that is already in the trust, it is hard to see how your husband could be involved. At all.

On the other hand… What if you and your husband got the awful, terrible, no-good, very bad advice to add your own assets to the trust? That would be ill-advised. It would expose the trust to potential claims. By your husband. By your creditors. By Medicaid. Risky! Unnecessary! Foolish! Typical. Sad. Do not do that thing!

Leave inheritance trust assets alone in the inheritance trust. Manage them, change ‘em out, develop new portfolio strategies. That is all good. But. Do not commingle inheritance trust assets with your household, marital assets. Do not ruin a good thing.

By the way: With LifePlanning™, you will always protect your beneficiaries with an inheritance trust. Because why wouldn’t you?

The Ugly: This guy is ugly. Thank you, Universal Studios.

Show Me The Money!
Whaddaya Mean None For Me?!

My grandmother passed away almost a year ago and I need to know if she left money for me? Want to see if my grandmother left me money from her will

Simple Answer: Go to the probate court in the county where grandmother died. Ask if there has been a will filed for her. Ask if there has been a probate estate opened for her. If yes or yes, get a copy of the Will. Read it. Now you know.

Not-So-Simple Answer: If there was a will or trust and the will or trust is being administered and if you were a named beneficiary, then you should already have received notice. But you have not. That suggests a few possibilities:

1. Grandmother was dead broke when she died.
2. Grandmother had all beneficiary designations on her accounts.
3. Grandmother had leftovers and a will, but no one has probated the will and the stuff is just sitting there.
4. Grandmother had a trust. And you are not a beneficiary.
5. Grandmother had a will. Probate is humming along. And you are not a beneficiary.

There are more possibilities, but these are the most likely. Why not ask your mom or dad? Aunt or uncle? If you cannot get straight answers, you may wish to hire an attorney to help you out. Beware, these things get expensive quickly. And ruin family relationships.

Both are bad.

Home Mortgage Interest Rates Break The 7% Barrier

A few choice quotes from Freddie Mac:

“Mortgage interest rates have increased at the fastest rate since the early 1980s.”
“However, in 1980 and 1981, rates
averaged 16% and 18%”

Mortgage rates “have more than doubled in the past year. Mortgage rates have never doubled in a year before.”

“Kong Save Down Payment! Now Interest Rate Triple! Cannot Afford Bungalow! How Break News To Wife?!”

mortgage rates october 27, 2022

 


 

Trick Or Treat!

Did You Want Your Estate Plan To Be A Nasty Trick?
Is It Wrong To Leave Your Family A Treat?

Why Should The Government Get All Your Halloween Candy?

Why Estate Planning Fails And How To Be A Winner

Traditional estate planning is concerned with avoiding probate, saving taxes, and dumping your leftover stuff on your beneficiaries. After you die. Nobody cares what happens to you while you are alive. How does that help anyone? Stupid.

Traditional estate planning fails because the overwhelming majority of us will need long-term skilled care. 70% of us. For an average of 3 years. And we will go broke paying for it.

Is it surprising that thousands of recreation properties: cottages, cabins, hunting land, are lost to pay for long-term care? Why is your estate planner hurting you and your family? It is evil intent? Or stupidity?

LifePlanning™ defeats Nursing Home Poverty. Keep your stuff. Get the care you have already paid for. Good for you. Good for your family. Good example for society.

When my mother suffered from the dementia which led to her death, over 10 years ago, their estate plan preserved their lifesavings. Mom’s months in the nursing home did not mean Dad’s impoverishment. Dad spent the last years with security and peace of mind.

Is Now A Bad Time For A Real Solution?

Perhaps you think you already have an answer to this problem. Maybe you do not see this as a problem at all. It is possible that you do not believe in the passage of time or its effects on you.

Peace of mind and financial security are waiting for everyone who practices LifePlanning™. You know that peace only begins with financial security. Are legal documents the most important? Is avoiding probate the best you can do for yourself or your loved ones? Is family about inheritance? Or are these things only significant to support the foundation of your family?

Do you think finding the best care is easy? Do you want to get lost in the overwhelming flood of claims and promises? Or would you like straight answers?

Well, here you are. Now you know. No excuses. Get the information, insight, inspiration. It is your turn. Ignore the message? Invite poverty? Or get the freely offered information. To make wise decisions. For you. For your loved ones.

The LifePlan™ Workshop has been the first step on the path to security and peace for thousands of families. Why not your family?

NO POVERTY. NO CHARITY. NO WASTE.
It is not chance. It is choice. Your choice.

Get Information Now. (800) 317-2812

Read the Print Version

Happy Halloween Horror Show!

Mummy Mortgage Rates Rising Like A Bat Out Of Hell

Ever actually see a Bat Out of Hell? Me neither. But these week-to-week increases in home mortgage interest rates would give that fella a run for his money. And how!

How much higher can rates go? Much much higher. So here’s your weekly dose of reality. Read ‘em and weep:

mortgage rates october 2022

“Repulsive Revolting Rates Mean We’ll Never Afford Our Bloody Bungalow!”

Creepy Consumer Prices Popping

consumer price index sept 2022

“I Vant To Suck Your Blood
I Prefer Cheeseburger But Too Expensive!”

classic monster dracula

“I Vill Haft To Stay Home…”

So expensive to eat out! Let’s stay home and read the newspaper. How about some buttered toast? And a steaming cup of coffee? Sounds great… economical too! Not so fast… The cost of bakery products is up over 16%. Same goes for your Cheerios… And the butter? That’s up 16% too… like the milk for your Cheerios… or is it Special K for you? Look on the bright side… those eggs are only up 8%. Yay. Unfortunately, alcoholic beverages are up an unlucky 13%. Well, you wanted to go on a diet anyhow…

cpi selected categories percent change 0922

And Now A Sneak Peek At 2023: Looks Like More Of The Same…

crows in spooky graveyard

“The Rent Is Too Damn High!”

classic monster king kong

Kong Is Korrect! Rent Is Up 7.2%!

Looks like he found a roommate to share the increased rental expense. Good strategy! But with Transportation services up by almost 15%, perhaps the happy couple should invest in a bicycle built for two? Just a suggestion.

cpi shelter medical care and transportation change

“Please… No More Charts! Too Horrifying!”

 


 

Trick Or Treat!

Did You Want Your Estate Plan To Be A Nasty Trick?
Is It Wrong To Leave Your Family A Treat?

Why Should The Government Get All Your Halloween Candy?

Why Estate Planning Fails And How To Be A Winner

Traditional estate planning is concerned with avoiding probate, saving taxes, and dumping your leftover stuff on your beneficiaries. After you die. Nobody cares what happens to you while you are alive. How does that help anyone? Stupid.

Traditional estate planning fails because the overwhelming majority of us will need long-term skilled care. 70% of us. For an average of 3 years. And we will go broke paying for it.

Is it surprising that thousands of recreation properties: cottages, cabins, hunting land, are lost to pay for long-term care? Why is your estate planner hurting you and your family? It is evil intent? Or stupidity?

LifePlanning™ defeats Nursing Home Poverty. Keep your stuff. Get the care you have already paid for. Good for you. Good for your family. Good example for society.

When my mother suffered from the dementia which led to her death, over 10 years ago, their estate plan preserved their lifesavings. Mom’s months in the nursing home did not mean Dad’s impoverishment. Dad spent the last years with security and peace of mind.

Is Now A Bad Time For A Real Solution?

Perhaps you think you already have an answer to this problem. Maybe you do not see this as a problem at all. It is possible that you do not believe in the passage of time or its effects on you.

Peace of mind and financial security are waiting for everyone who practices LifePlanning™. You know that peace only begins with financial security. Are legal documents the most important? Is avoiding probate the best you can do for yourself or your loved ones? Is family about inheritance? Or are these things only significant to support the foundation of your family?

Do you think finding the best care is easy? Do you want to get lost in the overwhelming flood of claims and promises? Or would you like straight answers?

Well, here you are. Now you know. No excuses. Get the information, insight, inspiration. It is your turn. Ignore the message? Invite poverty? Or get the freely offered information. To make wise decisions. For you. For your loved ones.

The LifePlan™ Workshop has been the first step on the path to security and peace for thousands of families. Why not your family?

NO POVERTY. NO CHARITY. NO WASTE.
It is not chance. It is choice. Your choice.

Get Information Now. (800) 317-2812

Read the Print Version

Happy Talky Talky Happy Talk! Don’t Worry, Be Happy

HOW ARE MORTGAGE RATES LIKE MURDER RATES?

Ever wonder how mortgage rates are like murder rates? Me too! And we are in luck. You have paid so much in taxes; Washington bureaucrats track this stuff. Not joking.

Freddie Mac (not the guy with the hamburgers or cheesy macaroni) says home mortgage interest rates have almost tripled. USA, USA, USA!

freddie mac mortgage rates chart oct 2022

The American Stasi, Gang That Couldn’t Shoot Straight, Praetorian Guard, Federal Bureau of Investigation, Crime Data Explorer, reports that murder rates are surging. How did that happen?

Don’t believe me… believe your own lying eyes:

fbi crime data explorer rat of homicides by population

Federal Bureau of Investigation, Crime Data Explorer

What’s The Difference Between Oil And Murder Plus Mortgage Rates?

Why would the Leader of the Free World™ grovel to Petroleum Potentates? Why would Petroleum Potentates wipe the Leader of the Free World™’s nose in his stinky economic and geopolitical mess? Why would PPs listen to the L of the FW’s humiliating pleas, then do exactly the opposite? Because they can. But why? How?

Your tireless tax-paid government bureaucrats at the U.S. Energy Information Administration have the answer. In a single chart.

Follow the lines. “Ending Stocks of Crude Oil” in our Strategic Petroleum Reserve (SPR) are at a 30-year low. Thirty. Year. Low. From historic highs to historic lows. In 2 years. Did somebody try to buy political favors with your energy security? Nah! Crazy talk. Conspiracy theory. I am sure there is a very good explanation. Very. Good.

What else is at historic lows? America’s regular stocks of crude oil. Lowest in 30 years for “Ending Stocks of Crude Oil”. Blame COVID. Or Russia. Or China. Or Ukraine. Or Evil Oil Companies. Or Garden Gnomes. Right? Could not possibly have anything to do with doddering grifters wrapping themselves in the flag and buying votes. Nah! So much crazy talk.

u.s. energy information administration stocks by type chart

And thank goodness for global warming! Our planet is so toasty, we don’t need petroleum products to heat our homes. Nowadays, winter is a thing of the past. A few old greybeards remember snow as a distant memory, but you’ve never seen any. And windmills juice up all our electric rent- a-cars. No problem. Don’t worry. Be happy. Now.

Murder Up! Mortgage Up! Oil Supply Down!
What are you going to do about it?

 


 

Lightning Letters Redux…

Like Sands Through The Hourglass… So Are The Letters Of Our Lives

(Not Edited For Spelling Or Punctuation Or Anything Else) (Warning: Not Legal Advice!)

Bad Ideas Come From Bad Information

How do I put my name on my mom’s property?
We are living with my mom to take care of her. She has dementia and may need to go into a home. Her will already states that I get everything as my sister and father passed away. I know if I try to put her into a home to help her, we will have to sell the house and we don’t want to lose it and be homeless.

The Short Answer Is: You don’t. Bad idea. Putting your name on mom’s property now would be a “divestment” for Medicaid purposes. If mom needs a Skilled Nursing Facility, she won’t get help, she’ll get a penalty period. And then she’ll get sued. And then they’ll sue you. And then you’ll lose the homestead. And that would be bad.

The Longer Answer Is: Plan to avoid probate. Mom can keep her homestead. You can live in and maintain it. Mom still gets her Skilled Nursing Facility benefits. Although Medicaid takes all her income except for $60/ month.

The Problem Will Be: House in mom’s name must go through probate at death. That’s bad: 1 – Mom gets Medicaid. 2 – Mom dies. 3 – Mom’s estate, including the house, gets probated. 4 – State of Michigan wants its Medicaid money back. State shows up in probate court. State gets the dough. 5 – You lose the house. 6 – You are homeless. Bad.

The Good Answer Is: Avoid probate with a Transfer- On-Death Deed, also known as the Ladybird Deed, Enhanced Life Estate Deed, or Deed pursuant to Michigan Land Title Standards Act 9.3.

A Potential Pitfall: Many folks use the TOD Deed to transfer the house to themselves directly. Now you go bankrupt or get sued or divorced or need long-term care and pfffft goes the house. Waste of Golden Opportunity for long-term security. You are getting the house for free. Mom’s care is also free (except she paid for it through years of income tax). Do Not Cheap Out Now. Spend a couple bucks and secure the house forever. And ever. Amen. (Yes, this strategy uses a trust. Get over it.)

Is Blood Thicker Than Water? And How Could You Tell?

Trust vs Heirs?

Dear attorney, there is an elder lady, who wants to put her niece to Trust and wants this niece to be an owner of this house when she dies. At the same time this lady has 2 sons, who might want to claim to get this property after their mother passes away. In that situation, in case her sons claim this property as blood heirs, what would prevail: trust or rights of her sons as blood relatives? What if they launch a court process, are there any theoretical chances to get the property in possession of her sons? Thank you in advance!

The Short Answer Is: Elder Lady Auntie gets to do with her stuff what she wants. Suggest using a trust to keep it out of probate. Quicker, faster, better. Less opportunity for uncles to complain. Trust wins over Blood! But.

The Longer Answer Is: Why is Elder Lady Auntie sweet on Nice Niece to the point of disinheriting her flesh-and-blood? Millions of reasons. But. Do you want uncles (father?) claiming that Nice Niece “unduly influenced” Elder Lady Auntie? I betcha NN is helping care for ELA. I betcha they are very close. I betcha ELA’s powers of attorney/will/trust/patient advocate name NN as ELA’s fiduciary. Danger is real, not a “theoretical chance.”

The Problem: NN’s close relationship with ELA means NN automatically unduly influenced ELA to give House to NN. (This is known as shifting the burden of proof.) Now NN must prove NN did NOT unduly influence ELA. Which is impossible now that ELA has died. NN loses house. Uncles win. Angels weep.

The Good Answer Is: Employ experienced counsel. Do it correctly. Wise, foresighted counsel will anticipate the undue influence claim. And defend against any such challenge. And a bunch of other stuff that can go haywire.

 


 

Why Don’t You Deserve A Little Payback For All The Taxes You Paid In?

Why Do You Want To Spend Your Last Nickel On Long-Term Care?

Why Shouldn’t The Government Spend Your Money For You?

Why Does Traditional Estate Planning Fail? All the time

Traditional estate planning is concerned with avoiding probate, saving taxes, and dumping your leftover stuff on your beneficiaries. After you die. Nobody cares what happens to you while you are alive. How does that help anyone? Stupid.

Traditional estate planning fails because the overwhelming majority of us will need long-term skilled care. 70% of us. For an average of 3 years. And we will go broke paying for it.

Is it surprising that thousands of recreation properties: cottages, cabins, hunting land, are lost to pay for long-term care? Why is your estate planner hurting you and your family? It is evil intent? Or stupidity?

LifePlanning™ defeats Nursing Home Poverty. Keep your stuff. Get the care you have already paid for. Good for you. Good for your family. Good example for society,
When my mother suffered from the dementia which led to her death, over 10 years ago, their estate plan preserved their lifesavings. Mom’s months in the nursing home did not mean Dad’s impoverishment. Dad spent the last years with security and peace of mind.

Is Now A Bad Time For A Real Solution?

Perhaps you think you already have an answer to this problem. Maybe you do not see this as a problem at all. It is possible that you do not believe in the passage of time or its effects on you.

Peace of mind and financial security are waiting for everyone who practices LifePlanning™. You know that peace only begins with financial security. Are legal documents the most important? Is avoiding probate the best you can do for yourself or your loved ones? Is family about inheritance? Or are these things only significant to support the foundation of your family?

Do you think finding the best care is easy? Do you want to get lost in the overwhelming flood of claims and promises? Or would you like straight answers?

Well, here you are. Now you know. No excuses. Get the information, insight, inspiration. It is your turn. Ignore the message? Invite poverty? Or get the freely offered information. To make wise decisions. For you. For your loved ones.

The LifePlan™ Workshop has been the first step on the path to security and peace for thousands of families. Why not your family?

NO POVERTY. NO CHARITY. NO WASTE.
It is not chance. It is choice. Your choice.

Get Information Now. (800) 317-2812

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