A Case of Asset Protection

A recent client was still working at age seventy-five, but not necessarily by choice. His wife was suffering with Alzheimer’s disease, and had been living at a long-term care facility for seven years. 

During our conversation it became clear that the only reason he continued to work was to pay for his wife's care. He was exhausted, yet unsure about alternatives… 

He felt trapped... 

Like many people, he was confused about asset protection in a case where only one spouse was in need of long-term care. He had also been told about a five-year “look-back,” didn’t know whether his home and other assets were protected, and was worried about the fact that he had not done any planning. 

In fact, he confessed he wasn’t quite sure about how the look-back worked or how he could possibly maintain his wife's care if he were to stop working or, even worse, suddenly be unable to do so. 

The Good News... read the case study.

New in NH Law

Real estate transfer taxes are no longer imposed for transfers into or out of revocable trusts where the ownership interests of the transferor and transferee are identical. (RSA 78-B:2 (XXII))

Apparently, however, the NH Department of Revenue Administration and the county registries have not been updated regarding this change. We will keep you informed and are hopeful that all applicable parties will soon be on the same page.

Elder Exploitation

Continuing with the topic of a new law relating to elder abuse that criminalizes elderly financial exploitation, which is not limited to an incapacitated person, here are some of the most common ways in which people exploit the elderly:

• Using a financial attorney as a license to steal.
   
• Treating joint accounts as your own even though you are only on the account for estate planning purposes.
   
• Using another person’s ATM card and/or checks for one’s own benefit.
   
• Threatening victim to get money.
   
• Refusing to obtain needed medical care for the elderly person so that assets will continue to be available for abuser.
   
• With respect to caregiver, keeping the change from errands, falsifying time sheets, spending time on the phone instead of doing what they are paid to do, etc.

New Elder Abuse Law

There is a new law relating to elder abuse that criminalizes elderly financial exploitation…this law is not limited to an incapacitated person.

• Makes it a crime for fiduciaries who knowingly, or recklessly for their own profit or advantage, deprive or take real or personal property of an elderly, disabled or impaired adult for the benefit of someone other than the adult.
   
• Makes it a crime for a person through the use of undue harassment, duress, force, compulsion or coercion acquires possession or control of an interest in real or personal property of an elderly, disabled or impaired adult, or establishes a relationship with a fiduciary obligation to an elderly, disabled or impaired adult that gives the person control or interest in real or personal property or other financial resources.
   
• Prior to this statutory change, unless the incident involved an obvious crime, like a forged check, the police often considered reports of financial exploitation to be family or civil matters allowing the perpetrators to continue the exploitation without fear of criminal liability, which as you can imagine was very frustrating.

Things You Should Know About Elder Abuse Law in NH

Did you know that you have a duty to report elder abuse?

Any person who suspects or believes that an incapacitated person may be the subject of exploitation is required under NH law to file a report with NH Bureau of Elderly and Adult Service (BEAS).  

However, the requirement to report extends to incapacitated adults only. Phone number for BEAS is 1-800-949-0470. The report to BEAS is confidential.

Additional facts:

• According to a 2011 MetLife study of elder financial abuse, as much as $2.9 billion per year is stolen from seniors.
   
• NH is the 4th oldest state in the U.S.
   
• Population of NH residents age 65+ is expected to double by 2025

New Surrogate Decision Making Law in NH Part 2: Be Proactive

In our previous post we summarized the details associated with a new surrogate decision-making law in NH.

This new law is helpful because it does provide for an alternative, other than court, to family members and friends of a loved one who has not executed his or her health care power of attorney.

Nonetheless, the best option is being proactive. 

Being proactive means executing a health care power of attorney when you are competent, in which you choose the agent (s), you want to act on your behalf when you are no longer able to make health care decisions for yourself. 

Some Good News to Cheer About

As the new year unfolds, we find that despite the challenges that many people are facing that there are always things to cheer about and to be thankful for. Once such "good news" item that happened in 2014 is the increase in estate tax exemptions to $5.3+ million. This increase means that most people no longer need to worry about the possibility of incurring an estate tax when they pass away. Instead, we can simplify our trusts and focus more on minimizing income taxes for our beneficiaries. If you have any concerns regarding the estate tax exemption, please feel free to contact our office.

Changes to NH Advanced Directives

The New Hampshire legislation has enacted changes to advanced directives relating to medically administered nutrition and hydration. These changes became effective on January 1, 2014. 

The intent of the legislature was to clarify the definition of medically administered nutrition and hydration and include it under the definition of life sustaining treatment. 
                                      
Unfortunately, while life sustaining treatment is defined to include medically administered nutrition and hydration in the statute, medically administered nutrition and hydration is not included on the definition on the proposed new advanced directive form. Furthermore, the legislature inadvertently neglected to change the disclosure form which specifically states that if you want to give your health care agent the power to withhold or withdraw medically administered nutrition and hydration, you must say so in your directive. Otherwise, your health care agent will not be able to direct that. This is problematic since a question relating to medically administered nutrition and hydration does not exist on the new health care power of attorney.                                          To resolve these issues, it is thought that the legislature will be making further changes to the statute in its upcoming session. For these reasons, we have modified our advanced directives slightly, but until the legislature addresses the present ambiguity and conflict in the statute, our advanced directives still include a question that specifically addresses medically administered nutrition and hydration.                                            We will continue to keep you updated.

Impact of American Taxpayer's Relief Act (ATRA)... "Portability"

One of the most significant changes associated with The American Taxpayer's Relief Act (ATRA) is that the "portability" of the federal estate tax exemption between married couples has become permanent and inflation-adjustable. 

While this is generally good news for married people (in 2013, a married couple can pass on up to $10.5 million to their heirs free from federal estate taxes), there are potential complications in situations involving second or third marriages.

Surviving spouses might also be required to file certain IRS forms, or run the risk of losing the deceased spouse's exemption.

Elder Law Caregiver Series: 5 Additional FAQ

Continuing with our series of posts that relate to planning your approach to elder care, here are five additional questions that are frequently-asked:

• Have I communicated my wishes to my loved ones regarding end of life decisions?
• Do I expect family members to help me as I age?
• What supports are available to help me live independent from my family?
• Will I be able to take care of my own needs without help from other family members or government programs?
• Do I have knowledge about the resources that are available to me to assist with my planning?

The Impact of Recent Elder Law Court Rulings

Earlier this year the Supreme Court upheld the Affordable Care Act, which by-and-large ensured the preservation and continued roll-out of improvements and protections for older adults.  

These improvements include the extension of Medicaid's spousal impoverishment protections to those seeking long-term care in the community, financial incentives for states to keep long-term care recipients out of institutions, the gradual closing of Medicare Part D's infamous doughnut hole, expanded access to preventive services for Medicare beneficiaries, and the Elder Justice Act.  

The Court did, however, scale back the Medicaid portion of the law, which could mean that fewer near-elderly will have access to health insurance than was originally envisioned. The law expanded Medicaid eligibility starting in 2014 to people with income up to 133 percent of the poverty line. But in its ruling, the Supreme Court gave states the freedom to opt out of this expansion without putting their current Medicaid funding at risk.

Naturally, these decisions will impact different people in different ways depending upon a number circumstances specific to each family's situation. To determine how your family might be affected, the safest course of action is to consult with your elder law attorney.