Child Support

From Clarence:

"I AM PAYING CHILD SUPPORT UNDER A STATE PROGRAM FOR 25 MONTHS AS OF April 2007. I Think I have met the state program will I still have to PAY? I am paying arrears."

Your question relates to expertise outside of my normal area of legal practice.  I recommend that you seek the guidance of a qualified family lawyer who practices in the area of divorce, visitation and child support matters.  Basically, it is my understanding that child support payments are controlled and monitored by and through the Friend of the Court. Have you tried asking them this question? I wish you all the best and I am sorry that I cannot provide you a better answer to your question. Good luck and happy holidays!
Sandy

How Important is a Will?

Christine had this question, which is a significant one and one on the minds of many baby boomers.

"When a person dies without a will and the property goes to probate how are the assets divided? What expenses are deducted from the estate? How does the attorney determine their fees?"

Assuming this is a question relating to Michigan law, some of the answers are found in the Estate and Protected Individuals Code (EPIC) which is Michigan's Probate Code.  An estate that is to be distributed through the probate process must comply with the statutory priorities of claims and expenses.  For example, the costs of a funeral are of a higher priority of expense than are taxes, secured creditors, or unsecured creditors.  As far as priority of distribution to the heirs at law, a surviving spouse and children have higher priority than do other, more remote relatives.  The surviving spouse has a statutorily protected spousal share. and the surviving spouse and minor or dependent children are also further protected by the family allowance, the homestead allowance and exempt property provisions. 

A lawyer who practices probate law should be able to review the specific facts of an estate and provide more specific answers to your questions.  The fees for providing these services is typically limited to what is reasonable and customary in the court in question.  Attorney fees around the state vary.  All attorney fees are subject to the court's approval.

I hope this helps - sorry again for the delay.
Sandy

Elder law attorney Sandy Mall can be contacted at (866) 699-1800.

Hitting The Lottery

This question came in from Marilyn.

"...if you are a big winner in the lottery (mega million's) how would you deposit your money?"

Marilyn:
I would establish an estate plan that was sensitive to my needs, my desires to do good in the world, provide for those I love, protect myself and my loved ones during our lifetimes, provide in the event of incapacity, be tax wise and try to simplify the planning so that ongoing administration would be manageable.  Additionally, I would consult with tax, insurance and investment experts to fully coordinate my planning to make sure that all aspects of the plan work according to my wishes.
I hope this helps.
Sandy

Sandy Mall can be contacted at (866) 699-1800.

Vets & Long Term Care: Don't Ask the VA

For many veterans, long term care benefits are incredibly valuable. But, I've found that these benefits are sometimes little known and under utilized by those who qualify.  Often, the same people I help successfully obtain long term care benefits had been previously denied benefits by the Veterans Administration.

Basic Facts
1. Many people who qualify have previously been told they will not qualify. Therefore, it is best to get another opinion from a qualified benefits planning expert. (NOTE - Often worst place to go to check eligibility is VA.)

The Benefits
2. The maximum amount of long-term care benefit is:
  Veteran with no spouse up to $1,554/month
  Veteran with Spouse up to $1,842/month
  Surviving spouse: $998/month
(NOTE - Actual benefit calculated based on household income adjusted for medical expenses.)

3. Can be used to assist with payment of medical and care related expenses, including skilled and non-skilled in-home care.

Service Related Eligibility Requirements
4. The Veteran served at least one day during wartime and at least 90 days of consecutive active duty and honorably discharged. (NOTE – World War I or II, Korean War, Vietnam, Gulf War)

5. Disability does not need to be service connected and Veteran does not have to be retiree or serve in active combat.

Medical Eligibility Requirements
6. Veteran or Spouse must be disabled or over the age of 65.

7. Disability determination based on medical certification (doctor signs form stating that there is need for care – assistance with ADLs).

Financial Eligibility Requirements
8. Asset limit – approximately $80,000 countable.

9. Income test similar to Medicaid spend-down (depends on care expenses).

10. Planning is allowed and legal to meet the income and asset criteria for eligibility – unlike Medicaid, no look-back or divestment penalty for transfers.

CAUTION – many people who first qualify for this benefit may later need Medicaid so any realignment of assets should only be done with the assistance of a qualified  benefits planning expert to avoid problems.

Mr. Mall is a nationally certified elder law attorney. For a free consultation about Elder Law, Care Advocacy, Estate Planning or any of the information contained in this blog, contact Mall Malisow & Cooney, P.C. toll free at (866) 699-1800 or online at www.theeldercarelawfirm.com 

What To Do About My Revocable Trust?

It's been  recommended to me that I Quit Claim my home held jointly with my wife to my revocable trust. Do you agree that that is the best way to go? What's the difference.  Either way the house would go to my wife if I die before her.
Thank you for your advise. - T

T:
Great question!  Did you have a lawyer assist you in the design and drafting of the trust?  If so, I suggest you first consult with him or her for guidance.  The reasons most people choose to retitle asset into a revocable trust is control now while you are alive and well, later in the event you become incapacitated, and eventually - after your death.  As with any asset, if no one has legal authority to control the asset when the owner(s) become incapacitated or after death - then probate court process becomes necessary.

Even though your wife will enjoy the use of the house if you predecease her, what happens when you are both gone?  If you do not retitle the house to have it controlled by your trust after you and your wife are both gone the next in line to benefit from that asset will have to go through the probate process to transfer the house.  Additionally, what happens if you and your wife pass in a common disaster?  In my experience it is generally best for the property to be titled so that probate process is unnecessary.

The answer to your question could change depending on certain facts.  Some additional questions might include the following: 1) Do you and your wife have one trust or two?; 2) Do you have a taxable estate?; 3) Who gets the house after the second spouse passes?; 4) Are either of you have any reason that puts you at high risk of being sued? 

In our office we generally do not use a Quit Claim Deed to fund the marital home into a trust.  Depending on the specific facts we use a few different options.  For us the closest equivalent would be a Warranty Deed.  Other methods are also possible to obtain the specific outcomes you desire.  Your attorney should be in the best position to know your wishes, your facts and your needs and have the best ability to provide you with specific answers to your questions.

I hope this helps.
All the best,
Sandy