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(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

December 14, 2022

Going Postal!

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Read the Print Version

Like Seriously, This Really Happened, Not Making It Up!
(Not Edited For Spelling Or Punctuation Or Anything Else) (Warning: Not Legal Advice!)

SEVERAL YEARS AT BERNIE’S?

QUESTION: What is it called when one deprives another notification of their parent’s death so to deprive them of their share of benefit?
I just found out that both of my parents have died, but years ago. After hoodwinking and railroading them, my mega millionaire sibling had taken measures to cut me off from them, before they’d died. It has been horrendous for me. Even just to find out that my parents had passed was bad enough, but that the way and how they’d died never would have happened if I’d not been cut out of their lives as I had been, after taking great and particular care of them myself, beforehand.

Short Answer: “Horrendous”? More like “Preposterous”! Mom and Dad die years ago. But until evil sibling got involved, you provided “great and particular care” that would inevitably have prolonged their lives. For years. But you, the “great and particular” caregiver, never wondered why all those Christmas and birthday cards kept getting returned? Are there no telephones? Did they live on Gilligan’s Island? Did you? I have “smell test” issues with this one… A little too self-serving, methinks

Long Answer: On the other hand, it is not unusual to see relatives who isolate and sequester disabled loved ones away from other family members. Sometimes the child acts from the best of generous, honorable motives: offering a refuge of peace for the loved one, away from family feuding, squabbling, and raw emotional outbursts. Sometimes domineering impulses, seasoned with jealousy, and spiced with greed motivate the selfish child to restrict access.

Unless there is objective abuse, usually, working out the currents of control are left to the family. Courts and judges have no interest or expertise in resolving the emotional debris of decades, and in some cases, generations. Judging from the unceasing torrent of self-help books on the subject, it does not seem that anyone else has any “great or particular” success with these heartfelt matters either. We must all do the best we can. “It’s a fool who looks for logic in the chambers of the human heart.” Joel Cohen.

Longer Answer: But this question is not all about “hearts and flowers” is it? Oh no! Our correspondent is particularly concerned that the mega millionaire sibling acted “so to deprive them of their share of benefit”. And by benefit, our correspondent means money. Or property. Or other stuff. So, what about that?
When stuff is at stake, courts do get involved. It is what they do best!

UNDUE INFLUENCE!
“Undue Influence.” is the legal theory. Here is how it works. Four (4) scenarios. Mom has money. Mom also has 2 children, A and B.

Scenario #1 No Undue Influence
1. Mom likes Child A better. And always has.
2. For years, without change, Mom’s will or trust leaves all her stuff to Child A.
3. Mom lives and acts independently.
4. Mom up and dies.
5. Child A gets everything. Child B is sick as mud.
6. Child B can go pound sand.

Scenario #2 Challenger Must Prove There WAS Undue Influence
1. Mom likes Child A better. And always has.
2. Recently, Mom, changed her will or trust to leave all her stuff to Child A.
3. Mom lives and acts independently.
4. Mom up and dies.
5. Child A gets everything. Child B is sick as mud. Child B sues.
6. Child B must prove that Child A unduly influenced Mom. An almost impossible task.
7. Child B can go pound sand.

Scenario #3 Defender Must Prove There WAS NOT Undue Influence – Formal Fiduciary
1. Mom likes Child A better. And always has.
2. Mom appoints Child A as her Trustee and Agent. In writing.
3. Mom changes her will or trust to leave all her stuff to Child A.
4. Mom up and dies.
5. Child A gets everything. Child B is sick as mud. Child B sues.
6. Now it is Child A who must prove that Child A DID NOT unduly influence Mom. An almost impossible task.
7. Child B gets a half-share. Child A can go pound sand.

Scenario #4 Defender Must Prove There WAS NOT Undue Influence – Informal Fiduciary
1. Mom likes Child A better. And always has.
2. Mom moves in with Child A. Child A helps with all Mom’s decisions. Child A prevents others from visiting Mom. Mom is totally dependent on Child A.
3. Child A is not Mom’s Trustee and Agent.
4. Mom changes her will or trust to leave all her stuff to Child A.
5. Mom up and dies.
6. Child A gets everything. Child B is sick as mud. Child B sues.
7. Now it is Child A who must prove that Child A DID NOT unduly influence Mom. An almost impossible task.
8. Child B gets a half-share. Child A can go pound sand.

Key Take-aways With Undue Influence: If you must prove it, you lose it. Also, if the beloved parent has appointed you formally, in writing, as their trusted agent/advisor/trustee, then you must prove you did nothing to “unduly influence” the beloved parent. The same rule applies, even if there is nothing in writing, if the beloved parent is dependent on you.

So, if you are caring for mom, dad, auntie, grampa, and providing for all their needs, or they “honored” you with the responsibility of trustee or agent, you MUST establish, by affidavit, deposition, or otherwise, that the beloved relative was acting independently. If you do not, you will lose.

KID’S NAME ON DEED IS NO-GOOD, AWFUL, VERY BAD

QUESTION: WHAT IS THE BEST WAY TO PUT AN ADULT CHILDS NAME ON CONDO OWNERSHIP WITH ELERLY PARENT.
Mom is elderly.. She is of sound mind and has mentioned to me that she would like to get my name on her condo.. what does that entail?
Is that what joint tenancy is? What will alleviate issues upon death – in other words avoid probate…. My guess is she needs to hire an attorney. What paperwork should I have her gather together.

Short Answer: “Best Way”? How about “No Way”!

Long Answer: Folks like to put their kids’ names on deeds, stock certificates, bank accounts, investments, and anything else they can think of. There is simply no good reason to put your kid’s name on this stuff. If you only want to avoid probate (dumb!), use a revocable living trust. If you want to avoid probate and nursing home poverty, and have time, use a LifePlanning™ Trust. If you don’t have time, use a trust plus a transfer-on-death deed (in Michigan and a few other states).

The Thing: Here’s the thing, most “estate planning” attorneys cheerfully admit that they have no clue as to what is going on with long-term care. Most so-called “elder law” attorneys should admit the same thing. It is tough to discern good advice when it comes to planning for long-term care. That means you have a tough job, but it is doable.

Ask the following questions:
1. How many Medicaid divestment trusts have you drafted for clients?
2. What happens after I sign the documents?
a. Do you have a mandatory process to get my stuff into the trusts?
b. Do I get my original trust documents?
c. How do you verify that my stuff has been retitled to my trusts?
3. How many Medicaid programs are available for long-term care?
4. Can I get help with skilled care at home? How much will that cost?
5. How many Medicaid applications have you personally prepared and filed for clients?
6. What is the PACE program?
7. What is Medicaid waiver?
8. What is the Initial Asset Assessment? When does it happen?

There are lots more questions to ask, but by this time, most attorneys will be shaming you for wanting to preserve your lifesavings. They think it is ridiculous that you should get some pay back on the tax dollars you paid in. They think you should go broke. They think your spouse or family should be happy with crumbs. Do you think they are on your side? Let’s not be too harsh… maybe they just don’t know any better. It’s more than possible, it’s likely.

NO GOOD DEED GOES UNPUNISHED

My older friend wanted me to come stay with him to due to personal and cancer reasons. he asked my ladyfriend to become his caretaker and he would cover her living expenses. She ended up paying for everything food etc….. he even spent checks he was suposed to give her…. He passed away almost a year and a half of her caring for him like an angel being maid nurse cook, but she wants to know how long she has to pack up.

Short Answer: As long as you can drag out the eviction process.

Long Answer: You and your lady friend the angel have nothing in writing from your deceased “older friend”. Probate law will not allow you to make any claim for payment or even reimbursement for the “food ect”. Plus your friend embezzled the checks the angel was supposed to receive!! That all stinks. But in this world of ours, the reward for generosity is often resentment and selfishness. Look around. You know I’m right.

Longer Answer: They cannot make you leave the house without going through the formal eviction process. In some places, COVID rules may still prohibit evictions. It’s worth finding out. Legally, you are a holdover tenant or tenant at sufferance. The new owners of the house cannot simply put you on the street. They must give you 30 days’ notice, Termination of Tenancy. You can leave at that point or make them go to court for an Order of Eviction, after a Summary Proceeding.

Why not make them go through the whole darn process? Unless they agree to reimburse you for the grocery money. And a few bucks on top?

Moral of the Story: You are not a bad person for wanting to get a written agreement to pay you money in exchange for services. You are a smart person, with a good heart, who does not want to be played for a chump. So get it in writing!

Medicaid Observation: The payments you get under the agreement will not be acceptable to Medicaid and will be treated as gifts with penalties to the “older friend.” So what? If the friend needs you to give the money back, do so (if you are able). Then do a promissory note with interest so that eventually you will get every nickel to which you are entitled. And not a penny more.

Lawyer Sales Pitch: Don’t try to do this yourself. You have to pay for the privilege of working diligently for 18 months and when it is all said and done, you will get evicted. Is it possible that all this could have been avoided? Maybe with a little legal counsel? Maybe?

I’m As Mad As Hell And I’m Not Going To Take This Anymore!
— Howard Beale, Network, 1976

How Did It All Go So Wrong, So Quickly?

We’re Not Gonna Take It, No, We Ain’t Gonna Take It, We’re Not Gonna Take It Anymore!
— Dee Snider, Twisted Sister, 1984

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.

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,

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.

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?

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

September 26, 2022

Mail Bag Of Madness!

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Truth Stranger Than Fiction…
(Spelling? Punctuation? Editing? No Can Afford!) (Warning: Not Legal Advice!)

Can a guardian evict/kick someone off of a property the guardian has no rights over?

I have been cleaning up a property that belongs to my great grandma who is now in a nursing home. I was verbally told that if I could clean the property up and work on paying the back taxes, I could work on owning the property. But now she is stating she never said that and told me my mother is not to be on the property when she never told me she couldn’t. I was would like to know where her rights as a guardian plays into this property. She does not own anything.

Shortest Answer: Yes. Absolutely.

Short Answer: You are more screwed than you have imagined.

Unkind Comments: 1. Next time, when lawyers and judges are talking, pay attention! And when you do not understand, ask questions! 2. “Verbally told”?!? Seriously? 3. A stitch in time saves nine. 4. An ounce of prevention is worth a pound of cure. 5. Kiss Great Grandma’s house good-bye. Also, you’ll never get paid for your clean up or back taxes. Also, your mom’s getting evicted.

Kinder, But Not Much Kinder, Comments:
1. You are not alone. Regular folks, just like you, lose houses, lifesavings, peace of mind, work, effort, blood, sweat and tears, in similar circumstances every day. Hundreds, if not thousands of times every day.

2. It’s not your fault that you did not know. After all, there’s no 2-hour, live, weekly call-in radio show that provides this information (except on WOOD 1300 AM and 106.9 FM; WKZO 590 AM and 106.9 FM; WHTC 1450 AM and 99.7 FM; various others). There are no free workshops every week the Good Lord brings, in Norton Shores, Grand Rapids, Holland and Portage. No free videos on the website whenever you want ‘em. And certainly, there’s no Michigan Elder Law Reporter to let you in on the secrets. 3. Middle-class families routinely get chewed up and spit out by the long-term care system, you have lots of company. 4. Getting Great Grandma to avoid nursing home poverty is not easy. 5. Cleopatra is not the only Queen of Dee-Nile (Get it? Dee-Nile = denial! Funny, eh.)

Long Answer: Can we unpack this suitcase of suffering sadness? This trunk of troubled tribulation? This package of perplexing pain? This valise of vigorous vivisection? This bag of the boggling blues? This container of cloudy consternation? Let us begin.

Guardian, Conservator, Probate:
What Is It All About?

1. Everyone is getting older.
2. Some older people lose their minds.
3. At age 65, you have a 70% chance of needing an average of 3 years of long-term care services. 20% will need more than 5 years of services. https://acl.gov/ltc/basic-needs/how-much-care-will-you-need
4. When people lose their minds, others must make their financial and health care decisions.
5. A few people take action to decide who will make their decisions if they lose their mind. These blessed few do Trusts, Powers of Attorney,
Designations of Patient Advocate. Mind lost? No probate. No problem. Thankfully.
6. Most people take no action. If you are in the majority and lose your mind, a Probate Court Judge will decide:
a. Whether you have lost your mind
b. Who makes health care decisions (Guardian) for you
c. Who makes money decisions (Conservator) for you
7. Judge decides on Clear and Convincing Evidence. Presented in open court. On the record. Which is not humiliating or degrading at all. Ever.
8. If you get better, you must convince the Probate Court Judge by Clear and Convincing Evidence that you are now OK. Which is not humiliating or degrading at all. Ever.
9. With a Guardian, you are a legally incapacitated person. You cannot make decisions for yourself. Your legal rights? Extremely Limited. Will anyone care what you say?
10. Your Guardian and Conservator files annual reports with the Court.
11. Will the Guardian or Conservator be a family member? Will you get a Public Guardian? Ask the Judge. You had your chance and blew it. Don’t worry. Be happy.

Great Grandma failed to plan. Great Grandma went to Probate Court. And now a Public Guardian will decide everything for Great Grandma. Will the Guardian be guided by the specific, unique needs and aspirations of Great Grandma’s family? Or will the Guardian faithfully follow Probate Court protocols, one size fits all, the law’s best guess as to what most families would mostly do?

You have 3 guesses. Guesses 1 and 2 don’t count.

How It Plays Out

Statement: I have been cleaning up a property that belongs to my great grandma who is now in a nursing home.

Response/Observation: Great Grandma is probably in a skilled nursing facility on Medicaid. Average monthly cost of a skilled nursing facility is $10,000 – 15,000 per month. At the former Kent Community Hospital, residential, high-level skilled care is more than $25,000 per month. If Great Grandma is not already on Medicaid, she soon will be. And if Great Grandma has money, why the “back taxes”?

The state does not joyfully pay for long term care through Medicaid. When the state pays, it wants its money back. The state (so far) won’t seize Great Grandma’s homestead while she is alive. But, after death, the state shows up in Probate Court, looking for its money. Everybody knows that “The House is Protected from Medicaid!” False! “Everybody” apparently does not know that the house must be sold to pay back the Medicaid. After Great Grandma has died. With some loopholes.

Oh. And thanks for “cleaning up” the property. Did you know you are doing that for free?

Statement: I was verbally told that if I could clean the property up and work on paying the back taxes, I could work on owning the property.

Response/Observation: Whoops! You did not know you were doing the work for free? The law says you cannot make a probate claim for services without a written agreement. And the agreement must be written before you provide the services. Without a written, binding contract the Probate Court Judge will not listen to your story. And if you get paid while Great Grandma is still alive, Great Grandma will get hit with a penalty period, be denied Medicaid benefits and the skilled nursing facility will not be paid.

Do skilled nursing facilities enjoy not getting paid? No, they do not. So Great Grandma’s nursing home now sues Great Grandma. And wins! Now Great Grandma’s house must be sold to pay the legitimate bill of the deserving nursing home. And Great Grandma is off the Medicaid until the money is all gone. And you will not see a nickel.

COMMON SENSE POINT:
What the heck does “work on paying the back taxes” or “work on owning the property” mean? In English? Even if you were “verbally told” these things? You are dealing with real money here… Long-term care is expensive. Government does not (usually) just give money away. You are not being serious here. Get serious!

Statement: But now [GUARDIAN] is stating she never said that

Response/Observation: Of course, the Guardian is denying ever having promised you the property if you cleaned it up! It is unbelievable that any Guardian with any sense of their fiduciary duty as Guardian would say such a thing. Not credible. And that’s why we write things down. Because maybe (however unlikely) the Guardian did agree to something like this. But no one will believe it.

In Merrie Olde England, 450 years ago, Parliament created the Statute of Frauds. To stop folks from cheating each other. Our Founding Fathers adopted the Statute of Frauds for American law. The Statute says any contract for land must be in writing. End of story. See you later. Done.

Statement: [GUARDIAN] told me my mother is not to be on the property when she never told me she couldn’t.

Response/Observation: I did not tell you that your mother could not live in my house either. That does not mean that she can.

The Guardian’s job is to preserve Great Grandma’s property and to use it for Great Grandma’s benefit. If the Guardian chooses to evict you from Great Grandma’s home, Guardian can do it. You have no right to control Great Grandma’s home. If you allow someone else into Great Grandma’s home without authority, the Guardian can evict them. Even if the squatter is Great Grandma’s grandchild.

Statement: I was would like to know where her rights as a guardian plays into this property. She does not own anything.

Response/Observation: The Probate Court gave Guardian all Great Grandma’s rights over Great Grandma’s home. That’s the whole point of having a Guardian. It is a big deal.

What Is That Sizzling Sound? It Is Your Lifesavings Imploding At $12,000 Per Month

Vaporized Like A Snowflake On A Hot Griddle

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.

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.

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.

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?

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

August 9, 2022

Messages In Bottles, Responses In Elder Law Reporter

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Read the Print Version

Light One Candle Or Curse The Darkness?
(Not Edited For Spelling Or Punctuation Or Anything Else) (Warning: Not Legal Advice!)

Question: What do I need to do to remove people from a house my father owned and recently died there is no lease or will?

Dad passed away went to home and found people living in it we are being held responsible for funeral and other bills but town police will not remove people that I have never met and won’t tell us there name? Value of assets is in the millions we are his only 3 children.

Short Answer: Evict ‘em! But observe all requirements of Landlord Tenant law. You cannot just “kick them out”!

Longer Answer: Bad people have been known to take over the homes of long-term care facility residents. Especially when the kids live out of town. No one checks on the house. No one questions the new residents. And the results can be unfortunate. And there is no simple solution, no easy escape. Police cannot “throw the bums out” because state law prohibits removal of “tenants” without due process. You cannot “give‘em the 23-skidoo!” because the law frowns on and severely penalizes vigilante landlord justice. You can call Ghostbusters, but you must give them a 30-day notice to quit. And when they still won’t leave, you’ll have to take them to court. You finally get your judgment. They are not going anywhere. Time to call the sheriff and the movers.

Word to the Wise: Perhaps your loved one will need residential long term care in a nursing home or assisted living facility. Maybe they would simply enjoy the convenience of independent living. When your loved one leaves home, make sure there is no one left behind. Or you will pay the price.

Are you against controlling the family home? Is it a ridiculous idea that folks who have helped hundreds of families transition to long-term care could prevent these sorts of shenanigans? Do you want to spend months getting back what belongs to your family in the first place? Would you rather buy a pound of cure or an ounce of prevention?

Question: Can I be a guardian if I was convicted 6 years ago of welfare fraud and I paid all my fine and I’m off probation

My mom is in nursing home and her properties have to be sold I’m paying all her bills I she lived with me the last 2 1/2 years.

Short Answer: You have certainly paid your debt to society, but it is still up to the probate judge to decide. You have been trustworthy and loyal for the last 2 ½ years, so the judge might go your way. Or might appoint a public guardian and cut you out of your mom’s care entirely.

Long Answer: Is it crazy to think that things work out better when you plan ahead? You have been doing all the good things for 2 ½ years and yet you have not taken a couple very basic steps to protect your mom or her relationship with you.

As a competent adult, you get to choose whom you would like to make decisions for you. It is 100% your choice. No one else has to agree. Everyone else in the world might think your choice was bad, wrong, stupid, and horrible. Their opinions do not matter. You get to choose.

What if you do not choose. Shirk your responsibility to yourself and your family. If you do not exercise your rights as an adult person, what happens when you cannot make decisions for yourself? What happens if you suffer a stroke? Or Lewy Body dementia? Or Alzheimer’s? Or get hit in the head with a frying pan? Yowch!

If you have not selected that person in writing, you have a One-Way Ticket to Probate Court. A journey that will be far more expensive and wearing than taking a few hours to get an honest-to-goodness, works-when-you-need-it estate plan in place.

Excuses to avoid planning flow like the Mighty Mississippi…rolling, rolling, rolling down to the sea… So you avoided spending the time and money. Wonderful!

Get ready to spend ten times as much time, money, and aggravation. Also understand that you will not be able to shelter mom’s house or assets from the skilled nursing care costs. Everything has to pass by the probate judge for approval, sooner or later.

And if you have a skeleton or two in your closet… be prepared to lose control over mom’s health care decisions and financial choices too.

Regular folks are never prepared for the reality of probate court. You think the judge understands that you are a good person, doing the righteous thing for your loved one. Ha ha ha. Judges have seen it all. And most of it is NOT GOOD. Granddaughter on house arrest takes grampa to the store to buy a fifty-cent candy bar with a $100 check. So granddaughter gets the change in cash. So she can buy more crack. (Crack dealers rarely take checks.) Abuse. Financial exploitation. Neglect.

How does the judge know that you are not one of these godforsaken souls? The judge does not. And will treat you with fine equality. Just like a crackhead.

You are not used to being treated that way. You will not like it. Unfortunately, those are the folks the judge mostly sees.

Gee, do you think maybe you should have done some planning while there was time? Or is that just crazy talk?

Question: Can someone exercise power of attorney without authorization?

My sister (age 47) and my elderly father (age 78) use the same auto mechanic. My father owns a large pick-up truck that needed work over two years ago. He previously used this truck to tow his fifth wheel trailer. My mother (83) had concerns about my father driving such a large truck because of Parkinson’s symptoms. So, my sister convinced the auto mechanic to delay completion of the repair. For over two years the mechanic has been telling my father numerous excuses as to why the repair cannot be completed. My father has no idea that my sister interfered with his private business.

Short Answer: This has nothing to do with “power of attorney.” This has everything to do with deception, disrespect, and dishonesty.

Long Answer: A power of attorney is an expression of trust. Dad trusts Daughter to make decisions for him and to carry out his instructions. Dad puts his confidence in writing. Dad tells the whole world that Daughter may act on Dad’s behalf, doing the things Dad could do, in Dad’s best interests. In writing. According to the law.

Here, there is no power of attorney. Not even a “verbal” one. Dad simply took his truck into the fix-it shop. Dad made a deal with the mechanic: Fix the truck. I will pay. Pretty simple deal.

Daughter now chooses to interfere with Dad’s fix-it deal. Daughter convinces mechanic to break the contract. Mechanic lies to Dad. Over and over. Again and again. All in Dad’s “best interests.” According to whom? According to his wife. I guess. She who must be obeyed. Shameful.

Dad has “Parkinson’s symptoms.” Dad is not suffering from dementia. If he is like most Parkinson victims, his mental acuity has not suffered. And it may not be Parkinson’s at all.

Is it okay to lie a little for a good end? Is it okay to lie a lot over 2 years for a good end? Do the ends justify the means? Will there be consequences and repercussions from telling the truth? Sure, but there aren’t there always consequences and repercussions to telling the truth? Is it better to lie for an extended period of time before you tell the truth? Is it worse to tell the trutht right away?

Recently the Supreme Court of the United States issued some opinions. Some reversed cases that had been decided poorly many years ago. Every serious legal scholar agreed that those old decisions were made under intense political pressure. Now, fifty years later, the Supreme Court is finally doing its job. And some politicians prefer deception. They would rather have lousy legal doctrines, cooked up undemocratically by black robed oracles than by greasy politicians kowtowing to the people who elected them. Didn’t somebody once upon a time praise the idea that government should be of the people, by the people, for the people?

Is The Reporter sympathetic to the family that worries about Dad and endangering other people? Yes.

Does the Reporter believe that honesty is the best policy? Should you do your truthful best and let the chips fall where they may?

Yes, to both. Bite that bullet. Do that tough thing. Enjoy mutual respect without the twisted stomach that comes from lying. Try it, you’ll like it!

Question: Can I get my apartments put back into my name.

I trusted my grandson that he needed a cosigner for a home I signed some papers coming to find out that what I was signing was transfer papers he lied to me as well as the lady in her place of business where he took me told me the same thing about co-signing for credit on a home.

I never felt so betrayed and hurt, immensely angry with him that he tricked me.

Short Answer: This is garden variety fraud; larceny by trick. Immediately you should file an Affidavit Concerning Interests in Land against the property, documenting grandson’s nefarious scheme and disavowing the deed you were fraudulently induced to sign.

Grandson’s next step may well be to defraud an innocent third party by selling or mortgaging your property. You do not want to be in court with an innocent third-party purchaser for value.

Long Answer: Seven hundred years ago, Italian poet Dante Alighieri took a trip through Hell and lived to tell the tale. You may have heard of Dante’s Inferno? That’s the one! Turns out there are 9 Circles of Hell. The Ninth is lowest and worst. Souls in the Ninth Circle are trapped in a frozen lake, tortured by demons for all eternity. And who winds up in the Ninth Circle?

Traitors. Fraudsters who criminally violate the special bonds of love that should bind them to their victims. Treacherous. Selfish. Doomed to suffer for all time and beyond, in the company of the Devil, aka, Lucifer, Satan, Dis, Beelzebub. According to Dante, the souls of family traitors descend to hell immediately, while the human body continues its hopeless journey on earth.
But that is not all!

On this side of the Great Divide, Adult Protective Services is ready, willing, and able to enforce laws against elder financial abuse. It is a felony crime to defraud someone this way. For elders, the penalties are enhanced. Your tax dollars at work.

This can be fixed, but it will take fixing. Get to your friendly, neighborhood elder law attorney and block this rancid puppy’s next move. And step on it! Pronto.

July 11, 2022

Spanning The Globe To Bring You The Constant Variety Of Snafu

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Wide Wide World Of Shorts (Short Answers!)
The Thrill Of Legacy, The Agony Of Probate

Note: These Questions Are From Real People. Unedited. The Glitchy Grammar, Strange Spellings, Problematic Punctuation And Other Offenses Against Literacy Appear In The Original Questions. Unedited.

My mother is in a nursing home, she is now almost out of money and we will be applying for medicaid soon. while we are working to get medicaid. and while the cash is gone, can the nursing home kick mom out for non payment?

second question. medicaid is looking at moms money from present to 5 years back. about 6or 8 years ago an account was open in my nieces name. my mom is the second name on this account, can they also take this money?

—Koncerned Kid

Dear Koncerned: Question #1: Once the Medicaid application is complete, with all 300 pages of attachments, Medicaid still has 45 days to respond. And it is often much longer. No surprise to the nursing home. No big deal. They will wait. A skilled nursing facility is much like a hospital when it comes to pay and refusing services. Government requires that the hospital and the home MUST provide services. Even if they do not get paid. Sure, there is a “kick mom out” procedure if she does not pay. But “involuntary separation” is complex and difficult for the home. And they always lose. So the nursing homes hardly ever bother. The Result: HUGE bad debts that will never be paid. HERE’S A THOUGHT: Ever wonder why nursing homes and hospitals are so expensive for us middle class folks? Gee… Maybe all the “free” services have something to do with why nursing homes cost $400 per day and a hospital aspirin is $12? [Who’s up for “free” college?]

Question #2: If mom’s name is on an account, caseworkers figure mom must own the money. Not true, of course, but that is how they think. If you can prove that the money came from the niece (or other person on the account)… hurrah! If not, too bad, so sad.

The absolute worst is when mom, dad, son, daughter, niece, nephew, butcher, baker, candlestick maker all put their social security, pension, IRA distribution, paycheck and everything else into the same account. And then pay the bills. Good luck, Chuck! Now Medicaid counts the same money against different folks. Nightmare! Do not put all the money together. Keep it separate.

Can I stop the sale of a house?

Rough situation: Grandmother is dead, Grandfather has pretty far along Alzheimer’s disease.

Aunt, who has power of attorney is trying to sell the house to a neighbor, and wants to tell the neighbor if any of us are interested so that they “know they have competition” somthing that will likely drive the price unreasonably high. Is their any legal mechanism to injunct the sale of the house to allow those of us, including myself in the family who are interested in purchasing it for fair market value to do so before it goes to the market?

—Sale Stopper

Dear Stopper: Medicaid absolutely requires that Aunt sell the house for fair market value. If she fails, Medicaid will hit Grandfather with a penalty period. “So what the heck is ‘fair market value’?” I hear you say. Well, there are many definitions.

My favorite says: Fair Market Value is the price that would be paid by a willing Buyer and a willing Seller with knowledge of all relevant facts.

You may not like that the housing market seems overheated. It sure seems that way to me! Time and again, several buyers will make multiple offers on a single property… and ALL of them higher than the listing price! But that simply IS the market.

The State says different. Every year you get a tax statement on your house with an assessment. By the state Constitution, that assessment (the “SEV”) is supposed to be one-half of your home’s Actual Cash Value. Everybody knows that is just bunk. You would never sell your house for twice the SEV. And neither will anyone else.

So there is only one way to find out what the Fair Market Value actually is. Put it on the market. Find out what other people would pay for the house. Simple as that.

ANSWER TO THE QUESTION YOU DID NOT ASK: Should we sell the homestead, when Grandfather is likely to need Medicaid? No! What Einstein came up with THAT idea? Oh… It was in a video on the Internet… Please tell me you are not falling for that! Er, uh, I mean… Selling the homestead is more than likely an ill-advised course of action. Harumph.

Sell homestead. Spend money for services Medicaid would pay for. Huh? It is possible, however unlikely, that this is a great idea, a brilliant strategy. But I doubt it. Consider that the homestead is a store of value. Leverage it to provide additional services to Grandfather while he is on Medicaid. Call me and I will happily explain in more detail.

What are the tax consequences of caring for my parents (both in hospice) and accepting funds from them from their ssi and saving

My brother and his wife now care for our parents in there home. They have health care poa, I have financial poa. I have agreed to pay them from my parents ssi and savings $10000 per month for the services. They are not trained care givers. I am concerned about tax consequences both employment as payee and as income for my brother.

—Care Medicaid Taxes

Dear CMT: Tax Question You Asked: Any money you pay to brother or his wife to provide services for mom and dad will be taxable income. Brother and Wife will have to pay federal, state, local income taxes. Plus federal self-employment tax. Did I mention Workers’ Compensation and Unemployment Taxes? And now that we have COVID, there’s a whole new raft of requirements. See IRS Publication 926, Household Employer’s Tax Guide. Enjoy! https://www.irs.gov/pub/irs-pdf/p926.pdf

Depending on how you set it up, these burdens will descend on your brother and sister-in-law and/or on your mom and dad. Yes. It is a nightmare.

Medicaid Question You Did Not Ask: Congratulations! You jumped through all the tax hoops necessary to hire family members! Paid all the additional costs. Filed all the paperwork. Now you are an expert! But what about Medicaid?

Unfortunately, even though you already complied with a telephone book’s worth of rules and regulations, you are not done yet. You must submit to Medicaid. If you do not, every nickel legitimately paid for services will be treated as a Medicaid gift. You read that right: Does not matter that you paid taxes, insurance, etc. All those dollars are a gift in the eyes of Medicaid.

Funny thing about the Medicaid rules for paying family members. I do not believe it is possible to comply with them. At least I have never seen anyone comply with these rules. And I believe that is on purpose. Medicaid does not like folks paying family members for care. That was a policy decision made years ago. And we are living with it today.

P.S. There is a Medicaid program of limited scope that will pay family members to be caregivers. But family members cannot pay family members without creating a penalty period. Generally speaking.

Can a person make you sell your primary residence that was left in a will to 2 unrelated people?

My mom’s husband died and left the home equally to her and to his grandson. This has been her primary residence for 25 years. The grandson is trying to make her sell it and move. But she wants to refinance buy him out. But he doesn’t want to do that.

How Sharper Than A Serpent’s Tooth,
An Ungrateful Grandchild!

Dear Sharper: Can Greedy Grandchild evict Sainted Spouse? Maybe. (Don’t you hate that word?) Depends. (Another hateful word!) But in every legal matter, the actual words matter.

Maybe the Will is painfully simple. Let’s say the Will only states that the remaining property is divided between Surviving Sainted Spouse and Grasping Greedy Grandchild. Nice and simple, right? Thank goodness those lawyers did not make it all confusing and hard to understand.

Well, the simple truth is that now GGGrandchild can get the Probate Court to evict SSSpouse. And then sell the property. And then divide the money. Whoops! Where is SSSpouse supposed to live now? Did Old Grand-dad intend to throw his beloved to the wolves? Kick her to the corner?

Maybe the Will is a little more complex. What if the Will states that SSSpouse and GGGrandchild are joint tenants with rights of survivorship. Whoops Again! GGGrandchild cannot evict his step-grandmother (if there is such a thing), but he can now move into the homestead. With his Great Dane. And all his biker-gang friends. Old Grand-dad has a lot to answer for!

Perhaps the Will excludes Grasping Greedy Grandchild by giving Surviving Sainted Spouse an exclusive life estate. She alone can live in the homestead. Until she dies. But then she goes to a long-term care facility. And for the next 10 years, until she passes, no one lives in or uses the homestead. Except a few lonely raccoons. And a bat or two. Whoops yet Again! Because no-one is paying the taxes, the city takes the house. Because no one is living there, it becomes a crack house. Because no one is paying the insurance, it burns to the ground.

On the other hand, Old Grand-dad was a sharp old bird, a crafty codger was he. He put together a LifePlan™. No worries with long term care. At-home care. Assisted Living. Skilled Nursing. No problem!

Yes, there are more words in a LifePlan™. Some folks find it confusing. Truth! But now the results are tailored to the need.

The LifePlan™ provides a Residence Trust for the Surviving Sainted Spouse. She lives there as long as she maintains the property. Pays the taxes. Buys the insurance. What if she needs skilled care at a nursing home or assisted living facility? Now the house can be sold. The cash proceeds are held in trust to supplement the Medicaid benefits she receives. And GGGrandchild? He gets his share. Sooner, rather than later. When all the needs have been met.

It does take work to get it right. Albert Einstein supposedly said. “Things should be as simple as possible. But not more simple.” So it is with your LifePlan™. It is as simple as possible. While being as secure as possible.

Life-Plan™ Salvation For The Middle-Class

The rich do not need me. The poor I cannot directly help. That leaves you. Regular folks. The middle-class savers, workers, builders are the ones who benefit from LifePlanning™. You choose the path of reasonable optimism, while guarding against the potential downsides. Hope for the Best, Plan for the Worst.

The LifePlan™ approach is the least expensive, most effective solution to the harsh reality of long-term care. Open your eyes to long-term care costs. Accept reality. Refuse to allow your lifesavings evaporate like a snowflake on a hot griddle. Recognize the reality of the caregiver spouse dying first, almost half the time and fix it. Reject nursing home poverty.

Not Chance, Your Choice
Uncover The Elephant!

There is nothing inevitable about nursing home poverty. Peace of mind and security are waiting for you. Right now. It is a choice. Despite what “everybody else” says. Despite their attempts to disguise the elephants in the room. For over thirty years, people have told me, “I’ve never heard of this before!” “If this is real, why doesn’t everyone do it?” “My lawyer/financial advisor/brother-in-law/accountant/tax person/banker/best friend/fill-in-the-blank never said anything like this…”

No Poverty. No Charity. No Waste.
It is not chance. It is choice. Your choice.
Get Information Now.

(800) 317-2812

August 24, 2021

Letters You Are Glad You Did Not Have To Write

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We Get Letters… We Get Lots And Lots Of Letters

(Note: Not Edited For Spelling Or Punctuation. Not Legal Advice!)

LETTER #1

Deed with joint tenancy doesn’t mention right of survivorship

My father purchased land with seller to buyer financing. Because my dad was a single unmarried man and it was seller financing, the seller asked my dad to put someone as a joint owner on the deed (to keep making the payments in the event my dad passed). My dad put my oldest sister as a joint tenant/owner as he was advised at the title company. I don’t think he fully understood. My sister never made one single payment I have all checks to prove. She didn’t even know she was a joint owner. My dad mentioned to mother, friends and to siblings me many times my sister wasn’t the real owner it was just for security bc the seller required security of receiving continuing payments.

My father sadly passed, and now my sister doesn’t want to change title practically keep the land to herself. The document doesn’t specify right of survivorship just say joint tenant can that help? Everyone knows my dads true intent we were all children from the same mother he loved us all the same. I feel he didn’t know what joint tenancy was and just signed. I am really worried bc my sister is taking over the property and not allowing entrance.

What can I use as defenses, thanks.

The Answer Is: “You Are Screwed. And Your Little Dog, Too!”
A Deed Is A Deed Is A Deed

For a number of years, I tended bar. Occasionally, a bar fight would erupt. Very exciting. My fellow barkeep Matt loved when that happened. He would vault the bar grinning, not waiting for assistance, eager to sort things out. Not me. I figured that was a job for the football player-bouncers. A bar fight is an ambiguous, fluid situation. Resolution is required. Application of force will be necessary. And litigation is a bar fight. In for a dime, in for a dollar.

But what if there is no fight? What if the facts are clear? Bouncers do not go looking for trouble. And they do not get involved in every disagreement. How does that apply here?

Michigan courts are extremely unwilling to upset the applecart. Especially when that applecart consists of a valid deed. There are plenty of dubious situations that folks can fight about. Then the courts and the judicial system can roll up their sleeves, get into the fight, start cracking heads.

Our letter writer’s case is not a bar fight free-for-all that needs sorting out. This is a Mike Tyson, one shot to the head, KO, 30 seconds, hope-you-did-not-blink-because-the-main-event-is-over type of thing.

Your father signed the deed. He was competent. He did not have a gun to his head.

Q: Was it a good idea or a bad idea?
A: Nobody cares.

Q: Is sister a generous angel or jealous limb of Satan?
A: Irrelevant.

Q: Did dad wish he had never signed?
A: Why are we still talking about this? Train left the station. Elvis left the building. Fat lady sang. Somebody already stuck a fork in it. It is done.

Folks Do The Darnedest Things

When a good person acts with the best intentions but brings about the worst results – that is tragic. Terrible. In Heaven above, the angels weep. Ever watch a movie, yelling at the screen, “Don’t open the door!” “Stay out of the basement!” “Run away!”? Reading this letter is like that. For me. Danger, danger! But, of course, it is too late. For them.

Why in the world did dad sign the deed?

“Because my dad was a single unmarried man and it was seller financing , the seller asked my dad to put someone as a joint owner on the deed (to keep making the payments in the event my dad passed).”

Dad was motivated to do the right thing. Seller gave dad plausible reasons. But. The stated “reasons” make absolutely no sense at all. Not a single part is accurate or reasonable. Sure, it is true that folks do this sort of thing all the time. On the advice of friends, neighbors, and Internet Experts. You might think these advisers would know better. But they do not.

Spoken Words Worth The Paper They Are Written On

“My dad mentioned to mother , friends and to siblings me many times my sister wasnt the real owner it was just for security bc the seller required security of receiving continuing payments.”

Sometimes motivations matter. Once in a while, verbal statements are relevant. But not usually. And not when we have a written deed that clearly creates ownership rights. Circuit courts, title companies, buyers… none of them care what you thought you were doing. Or why you were doing it.

Dad made sister joint owner by legal, valid, written, notarized, recorded and unchallenged deed. His motivations and understandings were incorrect. But that does not matter.

The Road To Hell Is Paved With Good Intentions

“Everyone knows my dads true intent we were all children from the same mother he loved us all the same. I feel he didnt know what joint tenancy was and just signed. I am really worried bc my sister is taking over the property and not allowing entrance.”

Hatfields & McCoys. Montagues & Capulets. Celtics & Lakers. Laimbeer & Bird. U of M & Ohio State. Historic feuds. This is how they get started… What chance does this family have to enjoy the peace and prosperity dad intended? Experience suggests that sister will treat the property as her own. She will be correct, legally. Cousins hating each other. Poison of resentment and ill-will seeping down the generations. Do not let this happen to you. Or your family.

Dad could have provided for the family. Avoided strife. Lawyers do come in handy, sometimes!

LETTER #2

How can I withdraw funds from my husbands bank account if I am not on his account?

Husband is a stroke patient in a nursing home. Medicaid covers all expenses. He has money from social security in his bank account that I can use to send to him for personal needs. I have all account numbers, ss number, etc but no pin number.

Powers Of Attorney: Faster Than A Speeding Bullet… More Powerful Than A Locomotive…Able to Change The Course Of Mighty Rivers, Bend Steel In Your Bare Hands?

You don’t have to be Superman to get the power to make a major difference in your loved one’s life. If your husband is still mentally alert, even though he may not be physically capable, he can give you the authority you need to take care of his business.

Powers of attorney are not all the same. They can differ radically in the way they operate and in your ability to get the job done. Be sure that the lawyer drawing up the power of attorney knows your goals. Of course, that is nice to say, but how to get it done in the real world. The answer is that most powers of attorney are intended only to allow you to pay the person’s bills. And pay. And pay. And keep on paying until the money is all gone. Which results in nursing home poverty. Powers of attorney can be drafted to save the family resources. Make sure that your attorney knows that this is your intention.

Here Comes The Judge!

If your spouse or loved one is not mentally competent, you have a date with probate court. The judge will decide (by clear and convincing evidence) whether you should have authority over your loved one. Guardianship is all about the person’s health and day-to-day living. Guardianship includes the right to make basic, routine money decisions. Conservatorship is all about the money.

Both forms of living probate involve special rules, court supervision, annual reporting and a limit on just what you are able to do with your loved one’s resources. Avoiding probate while you are alive should be, but usually is not, a laser focus of your estate planning.

Social Security…

The Social Security Administration does not care about your power of attorney. And they do not care about your guardianship or conservatorship either. Social Security operates across the globe and cannot be bothered to figure out the ins-and-outs of every judicial and legal system. It would be impossible.

What Social Security has done is create its own “brand” of guardianship. Your disabled loved one gets Social Security. Your guardianship and power of attorney are useless. Now you have to jump through the Social Security hoops and become Representative Payee. Now you can manage the social security.

Easy, huh?

You Choose!

Applying for benefits does not mean Nursing Home Poverty or silly Spend Down. Learn how to preserve your loved one’s lifesavings, business, cottage, life insurance. Thousands of middle-class families have learned and use these techniques. Why not yours?

Got Questions? Get Answers!

GET ANSWERS NOW… THE CALL THAT CHANGES YOUR LIFE…
COME TO A WORKSHOP OR ATTEND A LIVE WEBINAR FROM HOME…
(800) 317-2812

July 17, 2021

Reverse Mortgage, Real Estate, and Medicaid

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Answers to your questions
Note: Not Legal Advice!

Can I sell my Mother’s house as successor trustee of her trust. After she gets approved for Medicaid? My mother has dementia and I’ve been successor trustee for years. Her house is in a reverse mortgage and the only item in her trust. I will need to sell it, but how will that affect her Medicaid? Can I move the profits into an acct for her medical needs? A sitter or companion at the facility? After her death I’ll disburse what’s left to her heirs? Or will I have to sign the profits to [Medicaid] at sale?

You Must Sell The House… Or Be Foreclosed!

If Mother is out of the house for twelve (12) consecutive months the Reverse Mortgage Lender can foreclose and force a sale. Special COVID rules now delay foreclosure. And since COVID rules mutate faster than a foreign virus, call us for the latest updates. Or. You can sell the house and repay the Reverse Mortgage Lender. How much do you have to repay? Whichever is less of: 95% of the appraised value or whatever is owed on the reverse mortgage. You keep the leftover money. And since you only have to repay 95% of the appraised value, there will likely be leftovers. Which brings up another issue:

The Problem What To Do With The Leftover Money?

You must report the sale of Mother’s homestead. You have ten (10) days from the closing. Then you must tell Medicaid that the exempt homestead is gone. And that Mother has more money. More money than the $2000 Medicaid lets her keep! So next month, Mother’s Medicaid will end. And Mother will have to spend the homestead money until it is all gone. And then Mother may reapply for Medicaid. New Development: January 2021 spend-down rules prohibit Mother (or you) from spending this money to buy furniture or household goods.

Some Solutions And Strategies

NOTE #1: Your question involves reverse mortgage. However. These strategies can be used by any family considering homestead sale.

NOTE #2: Death is a factor in solving this situation. Money is another factor. Is that harsh or just clear-eyed planning? It seems insensitive to say that “Death is a Planning Opportunity”. Or to be concerned about money when a loved one is in need or dying. But going broke by ignoring reality? That’s worse than harsh or insensitive. Ignoring reality is stupid. And you cannot fix stupid. Let us remember: “Money is Choices.” Folks on Medicaid with money can pay for a private room. Or laundry service. Or a Certified Nursing Assistant. Your money that you earned can improve your quality of life in long term care. That is just the fact. And who knows? There might even be a few bucks left for the kids.

Easy, Easy, Easy! The Pooled Trust

1. Sell the house. Right now. As soon as you empty it of family heirlooms, keepsakes, bric-a-brac and your 3rd grade art projects that Mother has kept all these years.
2. Use a Charitable Pooled Trust.
-a. Deposit the sales proceeds in a pooled trust.
-b. A pooled trust is organized, created, and operated by a nonprofit organization. The nonprofit is the trustee.
-c. The nonprofit takes money from many folks on Medicaid and pools it all together. They then invest the pool of money.
-d. Each person putting money into the pool has a separate account.
-e. The Pooled Trust trustee spends Mother’s account money for Mother’s needs.
-f. No Age Limit!
-g. At Mother’s death, the nonprofit charity keeps the leftover money for its charitable purposes.
3. Upside/Downside
-a. Upside: Super Easy. Barely an inconvenience! Pooled Trust trustees tend to be understanding and generous spending Mother’s money on Mother.
-b. Downside: Nothing for the kids.

Easy, Easy! The Medicaid Payback Trust

Go to your friendly, neighborhood probate court. Get a court order creating a (d)(4)(A) Medicaid Payback Trust. Depending on the county, the local probate judge may have a well-established procedure for this.
1. Sell the house. Get the money.
2. Use the Medicaid Payback Trust.
-a. Deposit the sales proceeds into the Payback Trust account.
-b. You created the Payback Trust. You are the trustee.
-c. You spend the money for Mother’s needs.
-d. AGE LIMIT: Must be under 65 years old!!
-e. At Mother’s death, Medicaid gets the leftover money as payback.
3. Upside/Downside
-a. Upside: Still easy, although you need a lawyer. As trustee, you have complete control so long as you spend the money for Mother.
-b. Downside: Must account to probate court. Nothing for the kids.

Not So Easy – Delay, Delay, Delay! This Is Where It Gets Complicated!

Michigan allows the family to keep the homestead while Mother is on Medicaid. But the reverse mortgage company says sell, sell, sell… and pay us back.

Michigan also says, if the homestead goes through probate, Michigan gets the homestead money to pay back Medicaid. So we must plan to avoid probate. Why? So that Medicaid does not get all the homestead sale money.

And that is why we play to delay. The reverse mortgage company must give 12 months. And with COVID, it is longer. In those 12 months, Mother may need additional care or services. Or Mother may die.

While Mother Lives – Before The Sale

While Mother lives and the homestead is not yet sold how does Mother get additional services? The kids pay for the services. But! Whoever puts up the money gets a promissory note secured by the homestead. The generous kid gets paid back after the reverse mortgage company but before anyone else. We are using the homestead to leverage additional care for Mother.

Mother Still Lives – 12+ Months Later – Must Sell

If Mother survives. Now we must sell the homestead. Close on the sale. Reverse mortgage company gets paid. Generous kid gets paid. Leftovers go to Pooled Trust or Payback Trust.

Mother Dies Before Forced Sale Of Homestead

If Mother has died. Must sell homestead. Avoided probate with trust. Trustee sells homestead. Reverse mortgage company gets paid. Generous kid gets paid. Leftovers divided among all living kids or whomever else Mother chose as beneficiaries.

To Infinity!

Are there a bewildering number of choices, options, permutations, and possibilities? Darn tootin’! Confusing? Mebbe! Worth it? Yes, indeedy! By taking the trouble, you have insured that Mother gets the best care possible. You avoided Nursing Home Poverty. You enabled Mother to get a return on the years that she and Father invested. And there will (may) be leftovers for the kids.

If it was oh so very easy, everyone would be doing it. It is not easy. Which is why most fail. But not you, not your family.

And Beyond!

Got Questions? Get Answers!

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(800) 317-2812

March 3, 2021

Tag Archive for: real estate

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You Must Sell The House… Or Be Foreclosed!

The Problem What To Do With The Leftover Money?

Some Solutions And Strategies

Easy, Easy, Easy! The Pooled Trust

Easy, Easy! The Medicaid Payback Trust

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While Mother Lives – Before The Sale

Mother Still Lives – 12+ Months Later – Must Sell

Mother Dies Before Forced Sale Of Homestead

To Infinity!

And Beyond!

GET ANSWERS NOW… THE CALL THAT CHANGES YOUR LIFE… COME TO A WORKSHOP… Live or Zoom Webinar… It is INTERACTIVE!

(800) 317-2812

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Our Office Locations

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

Does Any Good Deed Go Unpunished?
Or Unrecorded?

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

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

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

Guardian, Conservator, Probate:
What Is It All About?

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

Wide Wide World Of Shorts (Short Answers!)
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A Deed Is A Deed Is A Deed

GET ANSWERS NOW… THE CALL THAT CHANGES YOUR LIFE…
COME TO A WORKSHOP OR ATTEND A LIVE WEBINAR FROM HOME…
(800) 317-2812

GET ANSWERS NOW… THE CALL THAT CHANGES YOUR LIFE…
COME TO A WORKSHOP… Live or Zoom Webinar… It is INTERACTIVE!