Lins Law Group Blog

Six Reasons Not to Add Your Children on Title

          Often I have new clients come in to consult on estate planning issues but who have already taken certain "planning" action on their own. Among the worst of these is the practice of adding their children or another person onto the title to their house. The thinking is that by doing so they will avoid probate. While this practice might in fact avoid probate, it can create far more problems than it solves.

          There are at least six good reasons not to add another person (other than a spouse) onto the title of your house. These include:

          1. In the event the person faces a liability or debt claim from a third party, your property can be at risk.

          2. In the event the person gets in trouble with the IRS, your property can be at risk.

          3. In the event the person goes through a divorce, your property can be at risk.

          4. In the event you want to sell the property, you must get the other person's permission.

          5. Placing another person's name on the title could be considered a gift, thereby triggering a gift tax consequence if the property exceeds $12,000.

          6. Placing another person's name on the title could jeopardize your getting government help with nursing home care.

          There are probably more reasons, but for now, these should be reason to follow this advice. When you consider making this type of transfer...DON'T. Instead, seek sound legal counsel on other ways to accomplish your objectives (such as by a Living Trust).

          For more information, visit www.linslawgroup.com

Avoiding the "Slam" in an Auto Accident

If you've ever been in a car crash, you know that the "smack" of another vehicle can really shake you up. Initially, you are stunned; then you check to see if you've been hurt. If someone is with you, you check on them as well. Nonetheless, you are rattled and probably are not thinking straight. As a result, it helps to know ahead of time what to do in case of an accident. Then, if you get into one, at least you will have it in your mind what steps to take and hopefully those thoughts will keep you on track.

First, immediately make provision for your safety and health. If you are injured, make sure that emergency medical services (“EMS”) and law enforcement are called. Have EMS examine you and if appropriate, have them transport you to an emergency room for treatment. If you are able, try to obtain the following information:

• the name, address and driver’s license number of all drivers involved in the accident;
• the name, address and policy number for all insurance companies of all drivers involved in the accident;
• the name and address of all passengers in any vehicle;
• the name and address of all witnesses to the accident;
• the name and badge number of the attending law enforcement officer;
• the report number for the accident report (obtain a copy of the report if possible).

After the immediate medical and other needs are attended to, talk to an attorney experienced in injury law. He or she can guide you through the steps that will follow. For example, almost immediately you will have representatives of your insurance company and the other driver's insurance company contacting you. While they may seem friendly, neither are really your friend. Their goal is to investigate your claim and if possible to find a way to deny paying it. An experienced lawyer can advise you so that they do not take advantage of you.

For more information, visit www.linslawgroup.com

Protecting Special Needs

Many families struggle daily with the demands of caring for a family member with health or developmental challenges. Whether it is autism, Parkinson's, birth defects or some other debilitating condition, the challenges can be immense. Perhaps one of the more challenging aspects which these families face is making sure that resources are available to provide medical and other necessary benefits. Often these families can only turn to governmental programs such as SSDI, SSI and Medicaid to meet the overwhelming demands. For example, take the situation where a child, age 6, suffers from autism. Depending on the circumstances, the family may only be able to get medical coverage through Medicaid. The child could live many, many years and need benefits during that time. If the child lives 60 years, and the average medical and other care bills for the child average $10,000 per year, then the benefits are...well...huge.

Where many families fail to prepare is in the event the parents or other family members die and leave inheritance monies to the child. That inheritance could jeapardize the child continuing to get benefits. So if the inheritance is not enough to provide for the child's needs over a lifetime, those lost governmental benefits would have an enormous impact. Instead, families with children or other members on these governmental programs should set up an irrevocable trust (also called a special needs trust or "SNT"). If this is done correctly, the inheritance monies can go into the SNT and can be available to provide for the child over his or her lifetime. So long as the SNT does not duplicate governmental benefits and otherwise complies with the limitations set forth by the applicable governmental program, then the benefits will continue uninterrupted. However, an SNT is a comlicated planning document which must be prepared by an attorney skilled and experienced in drafting these kinds of trusts.

For more information, visit www.linslawgroup.com