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

HOW ARE MORTGAGE RATES LIKE MURDER RATES?

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

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

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

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

Federal Bureau of Investigation, Crime Data Explorer

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

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

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

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

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

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

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

Lightning Letters Redux…

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

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

Bad Ideas Come From Bad Information

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

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

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

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

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

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

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

Trust vs Heirs?

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

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

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

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

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

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

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

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

Why Does Traditional Estate Planning Fail? All the time

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

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

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

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

Is Now A Bad Time For A Real Solution?

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

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

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

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

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

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

Get Information Now. (800) 317-2812

The post Ignore These Graphs, They Are Meaningless appeared first on Carrier Law.

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Whatever Happened To The Family Cottage/Cabin/Hunting Land?
A Little Bit Of Smarts, A Future Of Golden Memories

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

—Sincere Apologies to Cole Porter

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

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

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

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

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

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

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

The Family Cottage LifeCycle

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

—Ecclesiastes 3:1-2,6

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

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

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

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

Estate Planning Done Wrong
Two Estate Planning Blunders That Guarantee Failure

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

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

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

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

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

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

Circular Firing Squad is easy, cheap and disastrous.

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

Circular Firing Squad

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

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

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

But that is not the worst. JTWROS deeds have no rules. Other than each person can fully use the property without the others’ permission. Congratulations! Your child is the new president of the Pagan Assassins Mud Wrestling Team – Australian Rules. Your child invites the entire 32 member, mixed gender team to the cottage. On the 4th of July. Your child has never paid their share of the taxes, utilities or maintenance. When the Pagan Assassins leave, the place is a bloody shambles. And there is nothing the other kids can do about it. In fact, since you signed a standard, immediately effective, JTWROS deed, there is nothing YOU can do about it. Not even dead yet and already you have lost control of your property. Did you know that when you signed on for this quick and easy solution?

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

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

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

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

The Corporate Model: Last One Out Is A Rotten Egg

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

There are many permutations of the Corporate Model. Most use a limited liability company to hold the real estate and give shares to the kids. And there are rules. And governing provisions. And limited liability for the kids. Still have that pesky Medicaid problem with disqualification, but I guess you cannot have everything.

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

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

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

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

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

The National Park Model: Recipe For Success

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

—Franklin D. Roosevelt

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

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

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

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

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

The basic principles are straightforward and are familiar to anyone who has ever traveled or camped in a national, state or local park:

1. Rules for Use. Family members are stewards of a gift. Rules for use and care will be clear and must be observed. There will be an evenhanded system for allocating the available space among various family members.
2. Financial Responsibility. Budgets will be prepared, including all taxes, utilities, insurance and sinking funds for all capital improvements, including the roof, plumbing, fixtures and utilities. Present and future expenses will be identified and incorporated.
3. Nobody Rides for Free. You can’t get in a Park without a sticker to pay for the road. You can’t stay overnight without paying for your campsite. You can’t stay at the Cottage without paying the necessary charge to cover your share of the budget. In advance.

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

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

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

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

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

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

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

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

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

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

Get Information Now. (800) 317-2812

The post Why Only Rich Kids At The Lake? appeared first on Carrier Law.

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“Everybody’s Got A Plan… Until They Get Punched In The Mouth”

—Iron Mike Tyson, Philosopher

Why Do 96% Of Trust-Based Estate Plans Fail?
You Paid Good Money, Why Did You Get Such A Lousy Plan?
Your Banker, Accountant, Insurance Agent, Tax Preparer, Financial Advisor, Attorney All Know Your Trust Won’t Work… Why Aren’t They Telling You?

“No plan of operations extends with certainty
beyond the first encounter with the enemy’s main strength.”

—Von Moltke the Elder, German Field Marshal

Is it easy to plan for the future? How can we anticipate changes in the law, changes in the rules, changes in our health? Sure, you like Von Moltke The Elder your kids now, but what if one of them [Fill- Creative Commons In-The-Blank]? Do things always turn out just as you expect?

For example, let’s say you are evil. And decide to invade a neighboring country. Seems like a good idea to you. Everybody thinks it’ll be super. Plus, everybody says the people in that neighboring country will welcome your bullets, bombs, death and destruction. They simply cannot wait for you to rescue them from independence. So you plan. Poorly. Who needs extra food rations or ammo? Not us! Instead, your invading soldiers pack their dress uniforms for a Victory Parade. What? Me worry?

What if things do not go according to your plan? What if you get punched in the mouth? What if your invasion takes days rather than hours? Weeks rather than days? Thousands of your guys dead? And your missiles are falling on maternity hospitals? Plus you have run out of gas, your vehicles break down, and your tires are falling apart? And because your military radios don’t work, you use open access civilian walkie-talkies. Your economy in shambles? Then what, Mr. Evil Invader Guy? Are you in deep trouble?

Maybe. But what if your primary geopolitical adversary is a corrupt career grifter whose primary skill is steering bribes to family members? What if this opponent was also an aw-shucks front for multinational corporations? What if he was well known for plagiarizing the homespun life stories of other politicians? Lucky you, Mr. Evil. Maybe you’ll be OK.

Of course, that is all so unrealistic and fantastical, it could never happen in real life. Ha ha. Mr. Evil invading a sovereign country in the heart of Europe… ridiculous! Bumbling, ineffective opposition who claims “I maybe Irish, but I’m not stupid!”… preposterous!

And since we are being so silly and ridiculous, let’s add a few more what-if’s, shall we? What if that grifting politician was also suffering from the onset of dementia? And what if the second-in-command was also a grifter, as well as a national embarrassment and disgrace? And what if the next backup replacement was, of course, also a grifter, but over 80 years old with mannerisms indistinguishable from public drunkenness? Absurd, of course, Mr. Evil Invader Guy would sure have to be lucky!

Too outlandish. But remember what Yogi Berra said:

‘It’s tough to make predictions,
especially about the future!’

What if you seek normalcy? You have had enough excitement. All you want is for things to go smoothly. Calm. Peaceful. Simple. So you plan for peace. To run things, you hire a guy who says he is a no malarkey, down-to-earth fella. And you believe him.

All of a sudden, Mr. Evil appears. Wars erupt. Prices skyrocket. Food shortages are threatened. People getting shot in the streets. Atomic war back on the table. People at each other’s throats. And all you did was hire a nice old man to take care of things for a little while so the world could simmer down. So much for your plans.

Planning is tough. No kidding. It takes a lot of work to make things work. As the Dread Pirate Roberts, a/k/a Farmboy Wesley, said to Princess Buttercup:

“Life is pain, highness.
Anyone who says differently is selling something.”

—William Goldman, The Princess Bride

Why Your Trust Will Fail, Despite Your Best Laid Plans

Your trust will fail because you will not retitle your assets to the trust. That is it. Simple. In your trust binder is a memo telling you to put your stuff into the trust. You did not do it. That is how your assets will wind up in probate. That is why your trust will not avoid probate. And because you got the memo, it is all your fault.

You have heard all this before, right? Boring! So let’s go to the next level.

How Ladybird Deeds Cost Regular Folks Millions Of Dollars
How A Ladybird Deed May Cost You $68,500 Warning: This Part Is Really Confusing

Seems like lots of folks are doing ladybird deeds. Also known as “enhanced life estate” deeds. Or “transfer on death” deeds. There are many reasons to avoid ladybird deeds, except in precise circumstances. Unfortunately, many folks (including so-called elder law attorneys) think these deeds are “Medicaid-friendly.” They cannot tell you why these deeds are so “friendly”, but they will repeat the phrase endlessly.

We are not getting into all the reasons ladybird deeds are disastrous. Like a laser beam, our focus is how the misguided ladybird deed can cost a married couple $68,500. And why the hapless, hopeless person who told you to do a ladybird deed should stick to doing something else. Like drunk driver defense or something…

As you know, this blog is an infallible source of witty repartee, banter, life lessons, and easy-to-understand concepts. What follows is none of that. So do not complain to me if you keep reading.

I call this the “Pump Up the Pie” technique. If you can have half a pie, do you want a small pie or a big pie to start? I say, let us make the pie as big as possible. This technique has saved hundreds of families well over a million dollars: Background: How It Usually Goes, The $68,500 Mistake!

1. A married couple. John and Jane. (Or Jane and Jane, etc, it’s up to you.)
2. John and Jane own a house worth $137,000. Ladybird deed to the kids. Or a trust.
3. John and Jane have a checking account with $139,000.
4. John has dementia, needs skilled long-term care, checks into a Skilled Nursing Facility (“SNF”) for the duration. At $12-$15,000 per month.
5. Jane says “Oh dear! How will I pay?”
6. The Protected Spousal Amount – Minimized By Poor Planning
a. SNF social worker says, “Jane, what do you and John own?”
b. Jane: “House with ladybird deed.”
c. SNF Social Worker: “We don’t care about that. Homestead with or without ladybird deed is exempt. What else?”
d. Jane: “Checking Account with “$139,000.”
e. SNF Social Worker: “Well, John gets to keep $2000. And you can keep one-half of what is left! Your Protected Spousal Amount, that you can keep, is $68,500.”
f. Jane: “What?”
g. SNF Social Worker; “After you ‘spend down’ to $68,500, Medicaid will pay the bills.”
h. Jane; “Oh happy day! I thought I’d go bankrupt!”
i. SNF Social Worker: “Yes, happy days are here again.”
7. Jane pays the SNF the $68,500 and 4 months later, John is on Medicaid. With a dodgy roommate. And one shower a week. And laundry service that lost all his clothes, but provides others “just as good.”
8. Jane is entitled to the “Minimum Monthly Maintenance Needs Allowance” and gets some of John’s income through the “Community Spouse Income Allowance” so she can make ends meet, month to month.

SUMMARY: When a married person needs Medicaid to pay for long-term care, the Community Spouse can keep one-half of the lifesavings up to a maximum of $137,000 (for 2022). Remaining lifesavings go to the facility for care of the Institutionalized Spouse (Or other spend-down.)
NOTE: Is it obvious that lots of details are being left out? Well, lots of details are being left out.

Planning Ahead: Do No Harm, Preserve Lifesavings

Here’s how we get John the Medicaid benefits that he and Jane have earned, without calamitous “spend-down” of lifesavings security.
1. A married couple. John and Jane. (Or John and John, etc, your call.)
2. John and Jane own a house worth $137,000. Deeded to their basic, vanilla, nothing special, garden variety, revocable living trust (“RLT”).
3. John and Jane have a checking account with $139,000.
4. John has dementia, needs skilled long-term care, checks into a Skilled Nursing Facility (“SNF”) for the duration. At $12-$15,000 per month.
5. Jane says “Oh dear! How will I pay?”
6. The Protected Spousal Amount – Maximized by Brilliance
a. SNF social worker says, “Jane, what do you and John own?”
b. Jane: “House that is deeded to our RLT.”
c. SNF Social Worker: “Oh no! That is terrible! When a house is deeded to an RLT, it is NOT exempt. It counts just as if it were cash! So sad… What else?”
d. Jane: “Checking Account with “$139,000.”
e. SNF Social Worker: “Well John gets to keep $2000.”
f. SNF Social Worker: “Now we have to figure out how much you can keep as your Protected Spousal Amount. Let’s see, there is $137,000 of house that counts like cash, PLUS, $137,000 of real cash. That is a total of $274,000. And you can keep one-half! You can keep $137,000.”
g. Jane: “That’s great! With a ladybird deed I could only keep $68,500.”
h. SNF Social Worker: “Yeah, but now you have to sell the house. And give us the money.”
i. Jane: “Urk!”
7. Jane has a Special Telephone Conversation with her Attorney from the parking lot:
a. Jane: “#@*^%#!!! $@!#$%!!!”
b. 20 minutes later…
c. Attorney: “Jane?”
d. Jane: “I can’t believe you cost me my house! You are Mr. Evil. -)<>(-@#$!!”
e. Attorney: “I may be Irish, but I’m not evil.”
f. Jane: “Prove it!”
g. Attorney: “Because the house was in the trust on the first day of continuous care, which is also called the Initial Asset Assessment Date, or the snapshot date, the house counted as cash.”
h. Jane: “I already know that you hellhound!”
i. Attorney: “Because the house counted as cash, your Protected Spousal Amount (aka Community Spouse Resource Allowance) is maxed out at $137,000.”
j. Jane: “Enough with the double-talk you shifty shyster. You cost me my home!”
k. Attorney: “No, not at all… because we anticipated this situation and wrote the trust and the powers of attorney as we did, you can now deed the house out of the trust to you and John.”
l. Jane: “So what?!”
m. Attorney: “So now, the house is not countable cash, it is exempt homestead once again!”
n. Jane: “You mean it just disappears?”
o. Attorney: “No, we account for the house to the Medicaid folks, but now it is exempt homestead, because it is in your name and John’s.”
p. Jane: “David, is this legal?”
q. Attorney: “Oh yes, Bridges Eligibility Manual 405 says ‘Converting an asset from one form to another of equal value is not divestment even if the new asset is exempt.’ We are converting your home from countable asset to exempt homestead.”
r. Jane: “I think you’re giving me the old razzamatazz!”
s. Attorney: “What we have done together is a plan that just saved you $68,500, because John immediately qualifies for Medicaid without any spend down.”
t. Jane: “That’s OK, I guess.”
8. What if Jane dies first?
a. Jane: “But what if I die first? Then John owns the house and all the assets and they all melt away like snowflakes on a hot griddle!”
b. Attorney: “Good point. So here’s what we do next:
i. Deed the house from John to Jane, only.
ii. Amend the RLT to provide that at Jane’s death, if John is still alive, the RLT assets, including house and money, all go to a new trust established by Jane’s will.
iii. Deed the house from Jane to the RLT, but NOW using a ladybird deed. This way the house does not actually transfer until Jane dies. This way the house does not count like cash.”
c. Jane: “Why do I have to do a new trust established by my will? That sounds like make work for you lazy lawyers!”
d. Attorney: “Honestly, I don’t know why they make us do it this way, but BEM 401 says the trust must be “established by a will” or all the assets will count against John.”
e. Jane: “But you keep saying that wills mean probate!”
f. Attorney: “Yes, there is a two-page filing in probate court to set up this trust for John, but no inventory or accounting. Simple and quick. First with experience and quality.”
g. Attorney: “Now all the family assets are held for John’s benefit.”
h. Jane: “That’s OK, I guess.”
9. What happens when John dies?
a. Jane: “So what happens to the leftovers after John dies?”
b. Attorney: “The trust in your will says to put the assets back in the original trust after John dies, so the distribution to your kids and beneficiaries stays private and out of the probate court.
c. Jane: “Well, you certainly seem to have thought of everything!”
d. Attorney: “Yes, we are amazing!”

If you are still reading this, you may be getting the idea that there’s a lot going on here. And you would be correct. The bigger question: Is it worth it?

Even If This All Works… Is It Worth It?

Imagine that your dad is a high-flying politician. That you are a crack-smoking, self-indulgent, profane, idiot who likes to video his sex and drugs and rock n roll on his laptops. And then lose various laptops at least 3-4 times. Imagine that you can break all the rules because you funnel the back channel bribe money to Pops. Welcome back my friends to the show that never ends… Money just keeps flowing…

Well, if that is you, what does $68,500 mean? Seriously, $68,500 is last night’s bar tab, not including the broken furniture or “room service.” To some people, $68,500 is not much. Certainly nothing to worry about. But what is $68,500 to Jane? John is not around to fix things. Not here to cut the grass. Or shovel the snow. Not running errands anymore. How is Jane supposed to cope? Especially with her financial security cut in half? What is $68,500 to Jane? It is making sure John gets all the care he needs… whether Medicaid will pay or not. That money is a lifetime of blood, sweat, tears, and coupon clipping. Common sense frugality that provided a comfortable way of life. That should not be sacrificed because some clown with a shingle or a shiny website can’t be bothered to learn how this stuff really works.

Can You Really Do That? Is That Legal?

Faithful readers know that we do not write the rules, we merely read them. And report the results to you. Not making stuff up. Whose fault is it that nobody told you about these things? Sure, the blame game is pretty popular with some folks. We think it is better to light one candle than curse the darkness. Let’s take it from here without the coulda, shoulda, woulda, shall we?

This “Pump Up the Pie” technique has been used by many families over the last 30 years. Saving millions. Legal? As the day is long. Approved repeatedly over the decades by the Michigan Department of Health and Human Services. Because it is the law. Of course, applications must documented to a fare- thee-well. Hundreds of pages of audit-proof financial records. So, yes, you can really do that. If you do it correctly.

Why Would Medicaid Let You Get Away With Such Pie-Racy?

Is it piracy when the State lets you keep some of what you have earned? Is it ridiculous for you to get a bit of return on your tax dollars? Do you deserve nursing home poverty?

Of course, the State answers, “Yes, yes, a thousand times yes!” to these questions. So why do they allow us to Pump Up the Pie? Who knows? Probably because most families are not aware of it and do not get to keep as much as they should. It is not that big a deal for them. It is a big deal for you, and that is what LifePlanning™ is all about.

Is Now A Bad Time For A Real Solution?

Do you have all the answers? Maybe you do not see any problems at all. Is it 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

The post Can Your Plan Survive A Punch In The Mouth? appeared first on Carrier Law.

Good Idea or Big Mistake?

When Mom died, she left ownership of her home to me and my sister. We both live in the home. My partner, Billy, also lives in the home. My sister told Billy that he must start paying her rent. She said that if he doesn’t pay rent that she will evict him from our home. Can this even be possible? This is not the harmony I think Mom expected when she left the house to us.

As a co-owner, you are either a “joint tenant” or “tenant in common.” That means you can have guests. Your sister may not like having Billy under the roof, but there is nothing she can do about it. You don’t even have to pay taxes or upkeep if you are joint tenants with rights of survivorship.

Many folks want to give house, land, cottage, farm “to the kids.” Then Mom makes the Big Mistake. Mom somehow believes the co-owner kids will “get along.” So, Mom “puts the kids on the deed” directly or through her will or trust. It is worse now with many folks doing so-called “ladybird” deeds.

Lady bird deeds transfer ownership on the original owner’s death. Lady bird deeds do avoid probate. They are said to be “Medicaid friendly.” But after Mom dies, there are no rules. Each person named on the deed has an “undivided interest” in the property. Each person can use the property at all times. This way lies madness!

Sometimes the deed states “joint tenants with rights of survivorship.” As the philosopher Jean Paul Sartre observed, “There is No Exit.” You cannot go to court to end the insanity. If you were to give your share to the others, Medicaid will penalize you. And the others may not want your share and don’t have to take it.

Sometimes the deed simply states all the kids’ names in a row. No “joint tenant” language. Good news! Now the kids can sue each other for “partition.” They must prove to the Court’s satisfaction that they cannot cooperate. Then the Court will order a sale and division of what’s left after court costs and attorney fees.

Blessing or Curse? An ounce of prevention equals a pound of cure. Want family harmony? Want to keep the family house, land, farm, cottage? Better to explore all the possible “What if’s” and set it up properly ahead of time.

We can help avoid family conflict. Call 800-317-2812 and schedule an appointment today.

The post Leaving Kids as Co-owners of Property appeared first on Carrier Law.