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LAW OFFICE OF RAYMOND J. CANNON, JR., P.C.
Estate Planning, Elder Law, Medicaid-Long Term Care Planning,
Asset Protection Planning, Tax Planning, Real Estate,
Probate and Estate Administration |
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Our mission is to preserve and protect your assets. | |
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THE NUMBERS
The U.S. tax code is now 3.8 million words long. The entirety of William Shakespeare's works is about 900,000 words.
U.S.taxpayers spend more than 7.6 billion hours complying with federal tax requirements.
75 years ago, the instructions for Form 1040 were two pages long. Today, they comprise 189 pages.
There have been 4,428 changes to the tax code over the last ten years. With every change, the tax software, tax manuals and tax instruction booklets also have to be changed or rewritten, costing millions of dollars.
The IRS currently has 1,999 different publications, forms, and instruction sheets that can be downloaded from the IRS website. |
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LAW OFFICE
OF
RAYMOND J. CANNON, JR., P.C.
Admitted
Massachusetts Bar
United States Tax Court
Federal District Court of MA
United States Supreme Court
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 3 YEAR REVIEWS We encourage you to take advantage of our free one-hour consultation to review your estate plan on your plan's third year anniversary. Please call 978-989-9999 for an appointment.
Please notify us at ray@rjcannonlaw.com
if your contact information has changed since your last visit.
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Please feel free to forward this Newsletter to your family, friends and associates who may be interested in a one-hour free consultation to discuss these topics. |
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JANE CONSIDERS REMARRIAGE
Jane called to tell me that she has found her soul mate and now wants to marry him. I advised Jane to come in for an appointment so that she could understand the implications of marriage at this stage in her life. Jane is 68 years old, in excellent health and is quite well off financially. Robert, her husband-to-be, is 77 years old, has some physical infirmities and is not as well off financially.
We spoke about Jane having a prenuptial agreement since she has four children, all of whom have different financial needs. Robert has four children of his own. I explained that in order for a prenuptial agreement to be valid and enforceable, both parties must make full disclosure of all of their assets and liabilities. I also explained that the alimony rules have changed in Massachusetts: for the most part, the length of time that alimony is paid is based upon years of marriage. For example, a five year marriage would carry five years of alimony. Where Jane is much better off financially than Robert, in the event of divorce, she may have to pay alimony to him.
But there is another issue. If Robert ever needs care in a long term care facility, she will likely have to pay for his care out of her assets. The Medicaid regulations in Massachusetts count the "family" assets in determining eligibility for Medicaid. Absent a court order, the prenuptial agreement cannot be designed to protect her assets once they are married.
Jane decided to reconsider her decision to marry Robert.
LESSON: Marriage at any time in life creates many challenges and opportunities. Marriage in later years can create unforeseen issues, particularly where one spouse is much better off financially or if one of the spouses needs care in a long term care facility. You should always consult with an attorney before making such a decision.
If you are new to the Jane Chronicles, you may read past issues by going to our website: www.rjcannonlaw.com/newsletter.php |
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The Aid and Attendance (A&A) Pension provides benefits for veterans and surviving spouses who require the regular attendance of another person to assist in eating, bathing, dressing and undressing or taking care of the needs of nature. It also includes individuals who are blind or a patient in a nursing home because of mental or physical incapacity. Assisted care in an assisting living facility also qualifies.
To qualify for A&A it needs to be established by your physician that you require daily assistance by others to dress, undress, bathing, cooking, eating, taking on or off of prosthetics, leave home etc. You DO NOT have to require assistance with all of these. There simply needs to be adequate medical evidence that you cannot function completely on your own.
The A&A Pension can provide up to $1,733 per month to a veteran, $1,113 per month to a surviving spouse, or $2,054 per month to a couple.
A Veteran filing with a Sick Spouse is eligible for up to $1,591 per month*. Many families overlook the A&A Pension as it pertains to veterans who are still independent, but have an ill spouse. Keep in mind that in this situation, if the spouse's medical expenses completely depletes their combined monthly income, the Veteran can file as a Veteran with a sick spouse.
For more information go to www.veternaaid.org
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Lawmakers in Congress avoided the Fiscal Cliff with last minute legislation. The bill is now on its way to President Obama for signing.
Estate, Generation Skipping, and Gift Tax:
Transfers subject to the estate, generation skipping, and gift taxes will be subject to a top rate of 40% with an exemption amount of $5 million per person to be indexed for inflation. It also appears that the portability feature of the estate tax will be extended perrmanently.
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The Herrick House, an assisted living residence, has been enriching the lives of seniors on the North Shore since 1994. Located on the upper campus of Beverly Hospital, The Herrick House features 72 traditional assisted living apartment homes and 16 on our Spectrum Program, which is specially designed for those who have been diagnosed with various forms of dementia. Residents find living at The Herrick House creates great opportunity to socialize and participate in a variety of programs and events in our inviting common rooms and on our beautifully landscaped grounds. The Herrick House also features 24-hour on-site licensed nursing staff. To inquiry more about The Herrick House, please contact John DeCecca at 978-922-1999 x292 or dececca@nhs-healthlink.org.
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