Trusts & Estates on Aaron Hall, Attorney

Managing Voting Power When Ownership Is Held in Trust

Sun, 13 Jul 2025 17:57:33 +0000

When ownership is held in trust, trustees must manage voting power in strict accordance with the trust’s terms and fiduciary duties. Voting rights should be exercised impartially to benefit all beneficiaries, with transparent documentation of decisions and rationale. Allocation methods vary, often reflecting proportional interests or trustee discretion, while delegation of authority requires explicit permission. Effective procedures and conflict resolution promote proper governance. Understanding these elements ensures alignment with legal standards and beneficiary interests, providing a foundation for deeper exploration of best practices and regulatory compliance.

Legal Strategy for Delaying Distributions Legally

Mon, 02 Jun 2025 05:02:12 +0000

A legal strategy for delaying distributions hinges on adherence to governing trust provisions and applicable probate laws. Trustees may invoke discretionary distribution clauses or age-based triggers to postpone payments. Court approval often legitimizes delays, typically granted upon evidence of pending litigation, tax considerations, or asset valuation complexities. Such postponement must align with fiduciary duties and ensure transparent communication with beneficiaries. Exploring further reveals crucial best practices and tax implications critical to managing delayed distributions effectively.

Rights of First Refusal That Conflict With Tax Planning

Sun, 25 May 2025 12:06:40 +0000

Rights of first refusal (ROFR) can hinder tax planning by limiting asset transfer flexibility and complicating valuation for gift, estate, and generation-skipping transfer taxes. ROFR provisions may restrict basis adjustments and reduce step-up benefits upon inheritance. They also pose challenges to structures like grantor retained annuity trusts (GRATs), potentially triggering immediate income recognition and affecting annuity calculations. Careful drafting and timing are crucial to mitigate adverse tax outcomes. Further examination reveals strategies to align ROFRs with efficient tax planning objectives.

Use of QSSTs in Closely Held S Corporation Planning

Tue, 20 May 2025 14:22:33 +0000

Qualified Subchapter S Trusts (QSSTs) enable closely held S corporations to maintain their tax status while allowing trust ownership. They require a single income beneficiary who is a U.S. citizen or resident, with all income distributed annually. QSSTs provide estate planning benefits and protect corporate shares within a trust framework, ensuring pass-through taxation aligns with the beneficiary’s tax liability. Proper compliance and beneficiary eligibility are crucial to avoid termination of S status. A deeper exploration reveals strategic planning and administrative considerations.

Intrafamily Loan Forgiveness Statute Limitations

Thu, 01 May 2025 19:07:41 +0000

The statute of limitations for intrafamily loan forgiveness primarily governs the period during which the IRS can assess gift tax liabilities and initiate audits. Forgiven loan amounts must be reported in the tax year the forgiveness occurs. Extensions on filing do not extend this limitation. Failure to report timely may trigger audits within the standard limitation period. Proper documentation and compliance minimize risks. Additional insights outline how this interacts with gift tax rules and documentation requirements.

Intrafamily Loan Balloon Payment Tax Reporting

Mon, 28 Apr 2025 10:51:09 +0000

Intrafamily loans with balloon payments require clear documentation and adherence to IRS rules. Interest income must be reported using the Applicable Federal Rate to calculate both actual and imputed interest, ensuring compliance. If the balloon payment’s present value is below market, the difference may be treated as a taxable gift, necessitating gift tax filings. Proper structuring and record-keeping mitigate audit risks and penalties. Further exploration clarifies complex tax implications and compliance strategies for such loans.

Intrafamily Loan Forgiveness

Mon, 28 Apr 2025 04:50:57 +0000

Intrafamily loan forgiveness is the formal cancellation of a loan between relatives, requiring a valid loan agreement and clear documentation such as promissory notes and a written forgiveness agreement. This process ensures compliance with tax laws and distinguishes loan forgiveness from gifts, which carry different tax implications. Proper documentation protects both parties and clarifies financial expectations. Understanding legal obligations, tax consequences, and best practices for documentation helps maintain family transparency and financial clarity. Additional details provide further guidance on effective management.

Dynasty Trust Perpetuity Period by State

Sun, 27 Apr 2025 10:46:51 +0000

Dynasty trust perpetuity periods vary by state, impacting how long trusts can preserve family wealth without forced termination. States like South Dakota and Alaska allow indefinite durations by abolishing the rule against perpetuities. Others, such as Colorado and New York, permit trusts up to 70–90 years, balancing longevity with oversight. Some states enforce shorter limits, like Louisiana with 30 years. These differences affect estate planning strategies and tax benefits, with ongoing legislative changes shaping future dynasty trust structures in many jurisdictions. Further examination reveals detailed state-specific impacts and planning considerations.

Dynasty Trust Termination

Sat, 26 Apr 2025 21:50:13 +0000

Dynasty trust termination is a complex legal process requiring adherence to trust terms and often court approval. Trustees must act in beneficiaries’ interests, ensuring proper notification and managing asset distribution. Termination can trigger significant income, capital gains, and estate tax liabilities, necessitating careful planning with professionals. Common reasons include changing family needs or legal environments. Alternatives like decanting or modification may preserve trust benefits. Exploring these aspects reveals crucial considerations for trustees and beneficiaries facing termination.

Family Limited Partnership Dissolution

Thu, 24 Apr 2025 10:37:34 +0000

Family Limited Partnership (FLP) dissolution requires adherence to partnership agreement provisions and state filing protocols. Consent from general and limited partners, as stipulated in the agreement, governs the process. Legal steps include filing dissolution documents and notifying creditors. Tax implications involve asset valuation and recognition of gains or losses, impacting distributions among family members. Proper compliance and documentation minimize disputes and preserve relationships. A comprehensive understanding of these factors ensures a structured dissolution process and equitable outcomes. Further insight reveals detailed procedural and tax considerations.

Dynasty Trust State Rule Against Perpetuities Exception

Sun, 20 Apr 2025 22:48:51 +0000

Certain states, including South Dakota, Alaska, Nevada, and Delaware, have abolished or significantly modified the traditional Rule Against Perpetuities, allowing dynasty trusts to exist indefinitely. These legal exceptions facilitate perpetual wealth preservation, minimizing transfer taxes and enhancing asset protection for families. By leveraging these state-specific perpetuity rule exceptions, settlors can establish trusts with extended durations and greater tax efficiency. Understanding how these jurisdictions optimize dynasty trust benefits–and the fiduciary and regulatory complexities involved–is essential for effective estate planning.

Intrafamily Loan Balloon Payment Tax Risk

Sun, 20 Apr 2025 22:00:50 +0000

Intrafamily loans with balloon payments present tax risks primarily due to IRS scrutiny of adherence to Applicable Federal Rates and bona fide loan characteristics. Failure to document formal repayment terms or charging below-market interest rates can lead to loan recharacterization as a gift, triggering gift tax consequences. Balloon payments may accelerate income recognition and cause imputed interest issues. Structuring and documenting these loans precisely is critical to mitigate such risks. Further examination reveals effective compliance strategies and case-based insights.

Charitable Remainder Trust Termination

Sun, 20 Apr 2025 18:30:18 +0000

Charitable remainder trust termination occurs when the trust’s income distributions end, and remaining assets transfer to designated charities as specified in the trust agreement. Early termination can result from beneficiary hardship, trust mismanagement, or changes in law. Legal steps include reviewing trust terms and notifying beneficiaries, while tax consequences may involve income recognition and capital gains. Alternatives exist to preserve the trust’s benefits. Further exploration reveals detailed procedural, legal, and tax considerations crucial for proper termination.

Dynasty Trust Perpetuity Period Extension Strategies

Sun, 20 Apr 2025 05:41:31 +0000

Dynasty trust perpetuity period extension strategies focus on navigating and leveraging varying state laws, including jurisdictions that have abolished or extended the traditional rule against perpetuities. Utilizing statutory reforms such as RAP Reform Acts allows trusts to operate for significantly longer durations. Incorporating savings clauses and strategically managing trust assets safeguards the trust’s longevity and compliance. Collaboration with estate planning professionals ensures tailored approaches balancing tax efficiency and asset protection. Further details reveal how jurisdictional choices and trust provisions optimize multigenerational wealth preservation.

Dynasty Trust State-Specific Perpetuity Extensions

Sat, 19 Apr 2025 23:54:11 +0000

Dynasty trusts benefit from state-specific perpetuity extensions that override traditional Rule Against Perpetuities limits, allowing assets to be preserved across multiple generations. Most states have adopted statutes permitting trust durations from 90 years to perpetuity, with states like South Dakota, Nevada, and Delaware offering favorable laws for indefinite existence. These extensions influence trust structuring, governance, and tax planning, ensuring long-term wealth protection and compliance. Further exploration reveals varied legislative approaches and their impact on estate strategies.

Intrafamily Bargain Sale

Sat, 19 Apr 2025 00:57:51 +0000

Intrafamily bargain sales involve transactions where family members sell property or assets below market value. This practice often reflects emotional bonds and financial strategies within families. While these sales can ease financial burdens and promote cooperation, they also carry tax implications, including potential gift taxes. Proper valuation and legal documentation are critical for compliance and minimizing disputes. Understanding the complexities of this approach can lead to effective asset transfers and family harmony in financial matters.

Intrafamily Loan Amortization Schedule Compliance

Fri, 18 Apr 2025 02:40:49 +0000

Intrafamily loan amortization schedules are essential for compliance with tax regulations and to prevent disputes among family members. These schedules detail repayment terms, including payment frequency, interest rates, and allocation toward principal and interest. Adhering to the Applicable Federal Rates helps avoid potential gift tax ramifications. Proper documentation and clear communication are important for transparency and accountability throughout the loan period. Understanding the intricacies of these agreements can further enhance familial trust and streamline financial management.

Testamentary Trust: Perpetuities Savings Clause

Wed, 16 Apr 2025 12:45:53 +0000

A testamentary trust is established through a will and takes effect upon the testator’s passing. It is essential to comply with the Rule Against Perpetuities, which mandates that interests must vest within a specified timeframe. A perpetuities savings clause addresses this by ensuring compliance, helping to maintain the trust’s validity. Incorporating such a clause not only protects assets but also mitigates tax implications. Further insights into testamentary trusts and their clauses are available for those interested.

Succession Legal Document

Mon, 14 Apr 2025 15:27:12 +0000

A succession legal document is essential for transferring assets and responsibilities after an individual’s death. It formalizes their wishes and minimizes disputes among heirs. Key components typically include identifying heirs, listing assets, and outlining execution guidelines. Various types exist, such as wills and trusts. Creating and updating these documents involves legal expertise to ensure compliance and address potential challenges. Exploring the nuances of these documents can provide deeper insights into effective succession planning.

Intrafamily Loan: Minimum Interest Rate (AFR) Compliance

Mon, 14 Apr 2025 14:50:56 +0000

Intrafamily loans require compliance with the Applicable Federal Rate (AFR) to avoid tax consequences. The AFR, set by the IRS, dictates the minimum interest rate that must be charged to prevent the loan from being classified as a gift. Non-compliance can result in significant penalties, unintended gift tax implications, and scrutiny from the IRS. Proper documentation and understanding of loan terms are critical to maintaining compliance. Further exploration of AFR nuances can enhance financial decision-making in family lending scenarios.

Intrafamily Loan AFR Rate Compliance

Sun, 06 Apr 2025 22:39:00 +0000

Intrafamily loans must adhere to Applicable Federal Rates (AFR) to avoid unexpected tax consequences. Failing to comply can result in imputed interest, increasing the borrower’s taxable income and potential penalties for the lender. Documentation is vital to establish the legitimacy of the loan, including promissory notes and payment records. Understanding loan terms, interest rates, and reporting requirements is critical for compliance and financial clarity. Exploring advanced strategies and potential pitfalls can further enhance informed decision-making in such arrangements.

Testamentary Trust Income Distribution Guidelines

Thu, 20 Mar 2025 04:40:15 +0000

Testamentary trusts establish structured income distribution guidelines to ensure that beneficiaries receive their inheritances as intended by the testator. These trusts appoint a trustee to manage assets and oversee distributions, which can be discretionary or mandatory based on predefined criteria. The trustee is responsible for maintaining compliance with fiduciary duties while communicating effectively with beneficiaries. Understanding potential tax implications and common challenges is critical for optimal management. Further insights reveal additional strategies for effective income distribution.

Legal Steps for Handling Executor Misconduct

Sat, 17 Aug 2024 00:45:37 +0000

Executor misconduct can have severe consequences, including financial loss and delayed inheritances. Identifying red flags, such as unusual asset changes, inconsistent accounting, and unexplained delays, is vital. Gathering evidence, including financial records and digital correspondence, supports claims of misconduct. Notifying the court of concerns initiates a judicial review process. Filing a lawsuit against the executor can lead to punitive damages, while temporarily freezing estate assets prevents further mismanagement. In severe cases, removal of the executor from office may be necessary. Taking prompt and effective action is necessary to protecting the estate and its beneficiaries. By understanding the legal steps involved, you can safeguard the estate’s assets and justice is served.

Counterclaims in Trust and Estate Dispute Cases

Wed, 17 Jul 2024 12:35:01 +0000

In trust and estate dispute cases, counterclaims can be a strategic game-changer for defendants. A well-crafted counterclaim can offset or reduce the plaintiff’s claims, gain a strategic advantage, or even secure a judgment in the defendant’s favor. Timing is critical, as filing too early may lead to delays, while filing too late may yield a lost opportunity. A valid counterclaim must meet specific legal requirements, including pleading standards and statute of limitations. Common counterclaim scenarios in trust disputes involve allegations of breach of fiduciary duty, fraudulent activity, and improper trust administration. Understanding the intricacies of counterclaims can help defendants navigate complex litigation and negotiations, and further analysis can provide valuable insights into effective counterclaim strategies.

Counterclaims in Trust and Estate Dispute Resolution

Tue, 16 Jul 2024 17:23:01 +0000

In trust and estate disputes, counterclaims serve as a vital defensive strategy, enabling defendants to assert their own claims and counter allegations of wrongdoing. Typically, counterclaims arise when beneficiaries accuse trustees of misconduct or mismanagement, prompting the trustee to respond with a counterclaim alleging that the beneficiary’s actions contributed to the purported damages. Counterclaims can substantially impact the trajectory of litigation and settlement negotiations, introducing complexity and prolonging the discovery process. By understanding the strategic considerations and dynamics at play, defendants can effectively employ counterclaims to regain control of the narrative and protect their interests, and further exploration can reveal the nuances of this pivotal litigation tool.

Cease and Desist: Trust and Estate Enforcement

Mon, 15 Jul 2024 10:11:01 +0000

In trust and estate enforcement, a cease and desist letter serves as a formal legal notification to individuals or entities engaging in infringing or unlawful activities. These letters demand immediate cessation of illegal conduct, failure of which may lead to legal proceedings, fines, or penalties. Identifying illegal or harmful activity is pivotal, requiring a thorough understanding of relevant laws and industry standards. Crafting an effective cease and desist letter involves clear documentation of infringing activity, precise legal language, and specific demands and deadlines. Understanding the implications of these letters is essential in trust and estate enforcement, and further guidance is necessary to navigate the complexities of this legal landscape.

Will Signed on Separate Page is Valid, Says Court

Wed, 20 Nov 2019 18:04:09 +0000

A court recently held that a will is valid even though the witnesses signed as testators on a separate page.

Case Title

Castruccio v. Castruccio, 146 A.3d 1132 (MD Ct. App. 2016)

Case Summary

The court held a will was valid even though witnesses signed a separate page as testators. The testator signed the will on one page and the witnesses signed the will on the following pages. The attestation clause implies the witnesses sign on the same page as the testator. The will is still valid as it is part of a common scheme intended to be one document.

Terms and Definitions for Conservatorship and Guardianship

Mon, 15 Oct 2018 23:45:24 +0000

The following are terms and definitions for conservatorship, guardianship, and related concepts.

Please note, these are common definitions, but precise legal definitions may vary depending on how a term is defined in a contract, law, or case.

What is an Affidavit?

A sworn statement.

What is an Appeal?

To bring a case before a higher court to review a decision of a lower court.

What is a Bond?

A promise by a bonding company, that protects the protected person from mismanagement by the conservator of the estate. In the event of mismanagement, the court may decide that the bond will reimburse the estate for the missing money, and the company that issued the bond can recover the money from the conservator.

Example Form: Trust Beneficiary Receipt and Release Template

Sat, 22 Sep 2018 19:07:10 +0000

Video: Learn About Receipt and Release Forms

In this video, you get answers to these questions:

What is a receipt and release form?
Who is a trustee?
What if a receipt and release was not signed?

Introduction

A receipt and release form protects the trustee and closes out a beneficiary’s claim against a trust—making it one of the most important documents in any trust administration. This template is provided free of charge for the benefit of the public. As with any legal form or template, you should consult with your attorney before relying on anything you read on the internet. This form may not be appropriate for your circumstances or in your jurisdiction.

Does an Unrecorded Deed in a Trust Avoid Probate?

Tue, 06 Mar 2018 18:09:37 +0000

Recording a Deed is Not Necessary to Avoid Probate

Transferring real estate into a trust will generally avoid probate, even if the real estate deed was never recorded.

In general, a deed does not need to be recorded with the county recorder’s office to be valid. The deed merely needs to be complete and have been delivered from the grantor to the grantee. Under Minnesota law, real estate is effectively transferred when the deed is delivered from the grantor to the grantee.

How to Avoid Probate and Access Bank Funds of the Deceased

Wed, 20 Dec 2017 21:51:33 +0000

In Minnesota, estates valued at $75,000 or less can skip probate entirely using an Affidavit of Collection under Minn. Stat. sections 524.3-1201 through 524.3-1204. This process requires only a certified death certificate and a sworn affidavit—no court appearance, no personal representative, and no notice to interested parties.

Those who are managing the estate of a loved one who has passed may want to avoid probate while still withdrawing funds in a small bank account. I often get asked about this. The question goes something like this: I am managing the estate of my mother who died. She had money in her bank account. The account had no “beneficiaries” named. How do I get these funds without doing probate? The answer is simple: use an Affidavit of Collection.

Rights of Beneficiaries in Minnesota Trusts

Thu, 07 Dec 2017 23:00:36 +0000

The rights of beneficiaries of a Minnesota trust are primarily based on Minnesota Statutes and the trust document. When a trust document and/or statute imposes a duty on the trustee, for the benefit of the beneficiary, the beneficiary has rights. Here are some examples from the Minnesota Trust Code, Minnesota Statutes chapter 501C.

Good Faith

A beneficiary has a right to have a trustee “administer the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries, and in accordance with this chapter and all other applicable law.” See Minnesota Statutes section 501C.0801.

Manual Letter #16.1, June 1 2016

Thu, 16 Nov 2017 10:27:04 +0000

This article is part of our Estate Planning resources for Minnesota residents and business owners.

This article is a section taken from Manual Letter #16.1, a part of the revisions and additions to the Minnesota Healthcare Program Eligibility Policy Manual.

Manual Letter #16.1

Welcome to the Minnesota Department of Human Service’s (DHS) Minnesota Health Care Programs (MHCP) Eligibility Policy Manual (EPM). The manual replaces the Health Care Program Manual (HCPM) and the Insurance Affordability Programs Manual (IAPM) as of June 1, 2016. Bulletin #16- 21-03 announced the implementation of the EPM. The archived HCPM and IAPM will remain accessible online. Note about procedural and system instructions: ONEsource contains procedural instructions, system instructions for the Minnesota Eligibility Technology System (METS), and some of the system instructions for MAXIS. However, some procedural and MAXIS instructions are still found only in the

Manual Letter #17.2, June 1 2017

Thu, 16 Nov 2017 09:35:24 +0000

This article is a section taken from Manual Letter #17.2, a part of the revisions and additions to the Minnesota Healthcare Program Eligibility Policy Manual.

Manual Letter #17.2

This manual letter lists new and revised policy for the Minnesota Health Care Programs (MHCP) Eligibility Policy Manual (EPM) as of June 1, 2017. The effective date of new or revised policy may not be the same date the information is added to the EPM. Refer to the Summary of Changes to identify when the Minnesota Department of Human Services (DHS) implemented the policy.

Medicare Savings Programs (MSP) Income

Thu, 26 Oct 2017 13:40:30 +0000

This article is a section taken from Medicare Savings Programs (MSP), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

MSP Income

Medicare Savings Programs (MSP) follow many of the same income eligibility policies as Medical Assistance for People Who Are Age 65 or Older and People Who Are Blind or Have a Disability (MA-ABD). Specific MSP income policies and links to the relevant MA-ABD income policies are included.

MA-FCA Medical Spenddown

Tue, 24 Oct 2017 13:42:11 +0000

This article is a section taken from MA for Families with Children and Adults (MA-FCA), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Medical Spenddown

A spenddown is a cost-sharing approach that allows Medical Assistance (MA) eligibility for people whose income is greater than the applicable limit. Federal rules refer to this population as “medically needy.”

People can become income eligible for MA by “spending down” their excess income to the appropriate income limit. The excess income is reduced by deducting certain health care expenses.

MA Begin and End Dates

Mon, 23 Oct 2017 20:44:25 +0000

This article is a section taken from Medical Assistance (MA), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Medical Assistance (MA) Begin and End Dates

Overview

Medical Assistance (MA) eligibility and coverage are separate concepts:

Eligibility refers to when a person meets the MA eligibility rules.
Coverage refers to when a person can receive MA benefits.

MA begin and end date policy also applies to Medicare Savings Programs (MSP) and the Minnesota Family Planning Program (MFPP).

MA Asset Limits

Mon, 23 Oct 2017 16:35:36 +0000

This article is a section taken from Medical Assistance (MA), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Medical Assistance (MA) Asset Limits

Assets are items of value that people own like bank accounts, stocks and bonds, cars and real estate.

Asset Limit for Medical Assistance Families with Children and Adults (Without a Spenddown)

There is no asset limit for Medical Assistance (MA) for Families with Children and Adults.

MA Cost Sharing

Fri, 20 Oct 2017 20:05:53 +0000

This article is a section taken from Medical Assistance (MA), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Cost sharing includes those costs a Medical Assistance (MA) enrollee pays towards their health care. MA cost sharing includes deductibles, medical visit and prescription copays. Some enrollees also have premiums, spenddowns, waiver obligations or parental fees.

Deductibles and Copays

Adults age 21 or older have:

MA Liens

Fri, 20 Oct 2017 15:23:16 +0000

This article is a section taken from Medical Assistance (MA), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Medical Assistance (MA)Liens

The Minnesota Department of Human Services (DHS) files liens against real property interests to recover the amount Medical Assistance (MA) paid for certain services described in state and federal law. A lien is a legal right or interest that a creditor has in another person’s property until the creditor’s claim has been repaid or the lien expires. Real property includes land and buildings on land.

MA Estate Recovery

Fri, 20 Oct 2017 15:06:39 +0000

This article is a section taken from Medical Assistance (MA), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Medical Assistance (MA) Estate Recovery

Medical Assistance (MA) estate recovery is a program that the federal government requires the State of Minnesota to administer to receive MA funds. County agencies, on behalf of the state, assert MA claims against the estates of deceased MA enrollees, or the estates of the enrollees’ spouses, to recover the amount MA paid for certain services described in state and federal law.

Minnesota Health Care Programs (MHCP)

Fri, 20 Oct 2017 14:31:36 +0000

This section is taken from Eligibility Policy Manual, a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Minnesota Health Care Programs

The Minnesota Department of Human Services (DHS) administers a number of Minnesota Health Care Programs (MHCP). These programs include MinnesotaCare, Medicare Savings Programs, the Minnesota Family Planning Program and many types of Medical Assistance (Medicaid). This chapter provides policy information on topics that apply to all MHCPs.

MHCP Overpayments

Fri, 20 Oct 2017 14:16:27 +0000

This article is a section taken from Minnesota Health Care Programs (MHCP), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Minnesota Health Care Programs (MHCP) Overpayments

Overpayments occur when enrollees receive more Minnesota Health Care Programs (MHCP) benefits than they were entitled.

Overpayments are determined in these situations:

Situations in which the agency finds that enrollees received more MHCP benefits than they were entitled to because of late reporting or failure to report or disclose information

MA for Long-Term Care Services (MA-LTC) Annuities

Fri, 20 Oct 2017 13:50:39 +0000

This article is a section taken from MA for Long-Term Care Services (MA-LTC) a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Annuities

An annuity is a purchase contract where the purchasing party generally pays a lump sum of money or periodic payments to an entity issuing the annuity (a bank or insurance company) in return for an expectation of future regular payments in certain amounts. See Medical Assistance for People Who Are Age 65 or Older and People Who Are Blind or Have a Disability (MA-ABD) Annuities for more information.

MA-FCA Bases of Eligibility

Thu, 19 Oct 2017 14:53:24 +0000

This article is a section taken from MA for Families with Children and Adults (MA-FCA), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Bases of Eligibility

Minnesota provides Medical Assistance (MA) to certain groups of people as allowed under law. These groups are referred to as a basis of eligibility. A person’s basis of eligibility determines the non-financial criteria and financial methodology used to determine MA eligibility.

MA-FCA Asset Limits

Thu, 19 Oct 2017 14:52:03 +0000

This article is a section taken from MA for Families with Children and Adults (MA-FCA), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Asset Limits

Assets are items of value that people own like bank accounts, stocks and bonds, cars and real estate.

Medical Assistance for Families with Children and Adults (Without a Medical Spenddown)

There is no asset limit for Medical Assistance (MA) for Families with Children and Adults.

Data Privacy: Is Your Minnesota Health Care Application Confidential?

Wed, 18 Oct 2017 21:43:01 +0000

This article is a section taken from Minnesota Health Care Programs (MHCP), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

MHCP Data Privacy

Applications and other forms collect sensitive information on an individual that is needed to determine eligibility. Individuals can be harmed by the reckless disclosure of information about them, and, accordingly, there are significant penalties under both state and federal law for government agencies that violate laws designed to protect individuals and groups from such disclosure of information.

MHCP Authorized Representative

Wed, 18 Oct 2017 21:38:50 +0000

This article is a section taken from Minnesota Health Care Programs (MHCP), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Authorized Representative

Minnesota Health Care Programs (MHCP) applicants and enrollees may designate an authorized representative at the time of application or at any other time. An authorized representative is a person or organization authorized by an applicant or enrollee to apply for a MHCP and to perform the duties required to establish and maintain eligibility.

MHCP Program Overviews

Wed, 18 Oct 2017 21:29:46 +0000

This article is a section taken from Minnesota Health Care Programs (MHCP), a part of the revisions and additions to the Minnesota Healthcare Program Eligibility Policy Manual.

Program Overviews

Several programs provide Minnesota families and individuals affordable health coverage. Programs include public health care programs and help buying private health insurance.

Minnesota Health Care Programs

Minnesota Health Care Programs (MHCP) are public health care programs administered by county, tribal, and state servicing agencies under the supervision of the Minnesota Department of Human Services (DHS).

MHCP Temporary Absence

Wed, 18 Oct 2017 21:24:08 +0000

This article is a section taken from Minnesota Health Care Programs (MHCP), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Temporary Absence

Temporary absence refers to circumstances where one or more household members are absent from a household they share with others, but the absent members remain part of the household.

Reasons for the temporary absence include but are not limited to:

MA for Long-Term Care Services (MA-LTC) Eligibility Requirements

Wed, 18 Oct 2017 15:59:43 +0000

This article is a section taken from MA for Long-Term Care Services (MA-LTC) a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Eligibility Requirements

This subchapter provides general policy information that applies to Medical Assistance for Long-Term Care Services (MA-LTC).

LTC Eligibility Factors

People requesting MA-LTC must meet all of the following eligibility factors to be eligible:

Must be eligible for MA
Requires a nursing facility level-of-care as determined through a Long-Term Care Consultation (LTCC)
Must have home equity at or below the home equity limit
Must not be subject to a period of ineligibility under the uncompensated transfer rules
Must name the state the remainder beneficiary of certain annuities

Eligibility for MA

People who request MA-LTC are required to meet all of the eligibility requirements for MA before determining if the person meets the eligibility requirements for MA-LTC. MA eligibility is determined under MA for People Who Are Age 65 or Older and People Who Are Blind or Have a Disability (MA-ABD) or MA with Families with Children and Adults (FCA) basis of eligibility.

MA-LTC Lookback Period and Transfer Date

Tue, 17 Oct 2017 14:30:40 +0000

This article is a section taken from MA for Long-Term Care Services (MA-LTC) a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Lookback Period and Transfer Date

The lookback period is a specific period of time before the date a person requests Medical Assistance for Long-Term Care Services (MA-LTC) and is either residing in a long-term care facility (LTCF) or has been screened and been found to need services provided through a home and community-based services (HCBS) waiver program. The date these conditions are met is referred to as the baseline date.

MA-ABD Income Deeming

Tue, 17 Oct 2017 13:58:48 +0000

This article is a section taken from MA for People Who Are Age 65 or Older or People Who Are Blind or Have a Disability (MA-ABD), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

To deem income is to count one person’s income in the calculation of another person’s income. This policy indicates whose income must be deemed to a person for Medical Assistance for People Who Are Age 65 or Older and People Who Are Blind or Have a Disability (MA-ABD).

MA-ABD Burial Contracts

Mon, 16 Oct 2017 15:48:35 +0000

Burial Contracts

Burial contracts are contractual agreements between a consumer and a funeral provider, such as a funeral home or a cremation society. Burial agreements require that a buyer pay in advance for funeral services and items that a funeral director agrees to furnish upon the death of the buyer or other designated person.

MA-ABD Burial Fund Exclusion

Thu, 12 Oct 2017 20:08:49 +0000

Burial Fund Exclusion

Two separate and distinct exclusions apply to assets set aside for burial expenses. All assets set aside for burial expenses must be evaluated to determine if they may be excluded under one of the exclusions. This section discusses the Burial Fund Exclusion (BFE). The Burial Space Exclusion (BSE) was discussed in the previous section.

MA-ABD Burial Space Exclusion

Thu, 12 Oct 2017 20:07:51 +0000

Burial Space Exclusion

Two separate and distinct exclusions apply to assets set aside for burial expenses. All assets set aside for burial expenses must be evaluated to determine if they may be excluded under one of the exclusions. This section discusses the Burial Space Exclusion (BSE). The Burial Fund Exclusion (BFE) will be discussed in the subsequent section.

MA-FCA Hospital Presumptive Eligibility

Thu, 12 Oct 2017 14:26:53 +0000

This article is a section taken from MA for Families with Children and Adults (MA-FCA), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Hospital Presumptive Eligibility

The Hospital Presumptive Eligibility (HPE) program allows participating hospitals to determine temporary eligibility for Medical Assistance (MA) for people who meet the basic criteria for Medical Assistance for Families with Children and Adults (MA-FCA). See the Hospital Presumptive Eligibility web site for additional program information.

MA-FCA Household Composition and Family Size

Thu, 12 Oct 2017 14:22:59 +0000

This article is a section taken from MA for Families with Children and Adults (MA-FCA), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Household Composition and Family Size

Overview

Household composition means the people included in an applicant’s or enrollee’s household. Household composition determines the family size. Household composition and family size are factors used to determine financial eligibility.

Household composition and family size are determined for each person separately. Household composition and family size may be different for each person on an application or in a household.

MHCP Application Forms

Wed, 11 Oct 2017 15:29:03 +0000

This article is a section taken from Minnesota Health Care Programs (MHCP), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Application Forms

Many people may apply for Minnesota’s Insurance Affordability Programs (IAP) using the MNsure online or a paper application. However, there are different application forms designed to collect the information needed based on the applicant’s situation. Using the correct application form helps speed up the eligibility determination. When using a paper application form, it is important to choose the most appropriate form and to follow the instructions about where to send the form.

MHCP Applications for Incarcerated People Preparing for Release

Wed, 11 Oct 2017 15:22:41 +0000

This article is a section taken from Minnesota Health Care Programs (MHCP), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Applications for Incarcerated People Preparing for Release

A person who is incarcerated and applying for Minnesota Health Care Programs (MHCP) in advance of their release from a state prison, county detention facility, or city jail must apply using a paper application. Applying with a paper application ensures that eligibility dates for health care coverage are correct.

MA-EPD Premiums and Cost Sharing

Wed, 11 Oct 2017 15:06:47 +0000

This article is a section taken from MA for Employed Persons with Disabilities (MA-EPD), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

People enrolled in Medical Assistance for Employed Persons with Disabilities (MA-EPD) must pay monthly premiums.

A premium is based upon:

A person’s gross countable income. The minimum amount will be $35 per month, with a sliding scale for people with gross income at or below 300% of the Federal Poverty Guidelines (FPG). If income is greater than 300% FPG, the rate is 7.5% of gross income.
An additional fee that is equal to 0.5% of unearned income. The fee is paid no matter how low gross income is.

The total MA-EPD premium is the combined amount.

MA-EPD Work Requirements

Wed, 11 Oct 2017 15:04:59 +0000

This article is a section taken from MA for Employed Persons with Disabilities (MA-EPD), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Work Requirements

A person must be employed to be eligible for Medical Assistance for Employed Persons with Disabilities (MA-EPD). This policy describes specific employment requirements for MA-EPD.

Employment Income

A person must have a monthly average gross income greater than $65 from wages or self-employment earnings.

MA-EPD Assets

Wed, 11 Oct 2017 14:54:19 +0000

This article is a section taken from MA for Employed Persons with Disabilities (MA-EPD), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Assets

Assets are items of value that people own like bank accounts, stocks and bonds, cars, and real estate.

Medical Assistance for Employed Persons with Disabilities (MA-EPD) limits the amount of assets people can own to be eligible for coverage. There are also rules about what people must do with their assets in order to establish and maintain eligibility.

MA-EPD Medicare

Wed, 11 Oct 2017 14:46:41 +0000

This article is a section taken from MA for Employed Persons with Disabilities (MA-EPD), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Medicare

Medicare Eligibility

People enrolled in Medical Assistance for Employed Persons with Disabilities (MA-EPD) must enroll in Medicare if eligible.

If not enrolled in Medicare at the time they apply for MA-EPD, Medicare eligible people must apply for Medicare during the next available Medicare general enrollment period (January-March of each year), to continue MA-EPD eligibility.

TEFRA Parental Fees

Wed, 11 Oct 2017 14:35:17 +0000

This article is a section taken from MA under the TEFRA Option, a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Parental Fees

Medical Assistance (MA) under the TEFRA option is for children with a disability who are otherwise ineligible for MA because household income is above the MA for Families with Children and Adults (MA-FCA) income limit. The TEFRA option for children with a disability is named after the Tax Equity and Fiscal Responsibility Act (TEFRA) of 1982 that created the option.

MA-ABD Certification of Disability

Tue, 10 Oct 2017 20:59:11 +0000

Certification of Disability

Disability or blindness must be certified by the Social Security Administration (SSA) or the State Medical Review Team (SMRT). The certification process is also called a disability determination.

MA-ABD Bases of Eligibility

Tue, 10 Oct 2017 20:56:23 +0000

Bases of Eligibility

Minnesota provides Medical Assistance (MA) to certain groups of people as allowed under law. These groups are referred to as a basis of eligibility. A person’s basis of eligibility determines the non-financial criteria and financial methodology used to determine MA eligibility.

MA-ABD Contract for Deed and Other Property Agreements

Tue, 10 Oct 2017 20:45:35 +0000

Contract for Deed and Other Property Agreements

This section provides policy provisions for contracts for deed and other property agreements. The analysis for contracts for deed is used to evaluate all property agreements.

MHCP State Residency for Adoption Assistance and Foster Care

Tue, 10 Oct 2017 13:51:48 +0000

This article is a section taken from Minnesota Health Care Programs (MHCP), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

State Residency for Adoption Assistance and Foster Care

People who receive adoption assistance or are in foster care have special rules for determining their state of residency.

Adoption Assistance

People, of any age, who receive federal payments for adoption assistance under Title IV-E of the Social Security Act, are residents of the State where they live. A person who lives in Minnesota and receives these payments is a Minnesota resident; a person who receives these payments who lives in another state is not a Minnesota resident.

MA-LTC Transfer Penalty

Mon, 09 Oct 2017 19:44:35 +0000

This article is a section taken from MA for Long-Term Care Services (MA-LTC) a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Transfer Penalty

The transfer penalty for uncompensated transfers is a period of ineligibility for Medical Assistance for Long-Term Care Services (MA-LTC). The transfer penalty only applies to people who meet all of the other criteria to receive MA-LTC. See MA-LTC Eligibility Requirements for more information regarding MA-LTC eligibility. Therefore, the transfer penalty cannot start until a person would be otherwise eligible for MA-LTC. This section discusses how the transfer penalty is calculated.

MA-LTC Transfer Penalty Exceptions and Hardship Waiver

Mon, 09 Oct 2017 19:23:13 +0000

This article is a section taken from MA for Long-Term Care Services (MA-LTC) a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Transfer Penalty Exceptions and Hardship Waiver

Not all uncompensated transfers result in a transfer penalty. Some uncompensated transfers meet an exception, which means a penalty is not imposed.

The following uncompensated transfers are exempt from a transfer penalty:

Uncompensated transfers made prior to the lookback period
The transferred assets are excluded assets (other than a homestead)
Uncompensated transfers granted a hardship waiver
There is convincing evidence of intent to receive fair market value (FMV)
There is convincing evidence to show the purpose of the transfer was exclusively for a reason other than to obtain or maintain Medical Assistance (MA)
Assets are transferred to an applicant or enrollee’s spouse or another person for the sole benefit of the applicant or enrollee’s spouse
Assets are transferred to a child of either the person or the person’s spouse, regardless of the child’s age, if the child is blind or certified disabled.
Assets are transferred into a trust established for the sole benefit of a child of either the person or the person’s spouse, regardless of the child’s age, if the child is blind or certified disabled
Assets are transferred into a trust established for the sole benefit of any person under age 65 certified disabled by the Social Security Administration (SSA) or the State Medical Review Team (SMRT)

Homestead Transfers

An uncompensated transfer of a homestead is exempt from a transfer penalty when the transfer is made to:

MA-LTC Income Calculations for Long-Term Care Services

Mon, 09 Oct 2017 19:05:53 +0000

This article is a section taken from MA for Long-Term Care Services (MA-LTC) a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Income Calculations for Long-Term Care Services

Income Calculations

There are two income calculations used to determine what amount, if any, a person must contribute from their income toward the cost of their long-term care (LTC) services. People whose Medical Assistance (MA) eligibility is determined using an MA for People Who Are Age 65 or Older and People Who Are Blind or Have a Disability (MA-ABD) basis of eligibility may have to make an income contribution toward the cost of their LTC services. People whose MA eligibility is determined using an MA for Families with Children and Adults (MA-FCA) basis of eligibility are not required to make an income contribution toward the cost of their LTC services.

MA-LTC Income Calculation Deductions

Mon, 09 Oct 2017 19:04:44 +0000

This article is a section taken from MA for Long-Term Care Services (MA-LTC) a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Income Calculation Deductions

Certain deductions from countable gross income are allowed in the long-term care (LTC) income calculation to determine the amount a person is required to contribute toward the cost of LTC services, if any. Deductions, like income, count in the month in which they occur. Deductions must be verified at each request for Medical Assistance for Long-Term Care Services (MA-LTC), at each renewal, and when a change is reported.

MA-FCA Income Limit

Mon, 09 Oct 2017 18:48:16 +0000

This article is a section taken from MA for Families with Children and Adults (MA-FCA), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Income Limit

To be eligible for Medical Assistance for Families with Children and Adults (MA-FCA) a person’s income must be less than or equal to the applicable income limit. Income limits are based on federal poverty guidelines.

Federal Poverty Guidelines

The U.S. Department of Health and Human Services (HHS) issues federal poverty guidelines (FPG) each year. New guidelines are used beginning each July 1.

MA-LTC Community Spouse Asset Allowance

Mon, 25 Sep 2017 16:22:24 +0000

This article is a section taken from MA for Long-Term Care Services (MA-LTC) a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Community Spouse Asset Allowance

At the time of a request for Medical Assistance for Long-Term Case Services (MA-LTC), the LTC spouse who has a community spouse must report and verify their assets. An asset evaluation is used to calculate which assets are protected for the community spouse. The assets that the community spouse is allowed to keep is called the Community Spouse Asset Allowance (CSAA).

MA-LTC Annuity Disclosures

Mon, 25 Sep 2017 16:05:42 +0000

This article is a section taken from MA for Long-Term Care Services (MA-LTC) a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Annuity Disclosures

People must disclose if they own an annuity or have the right to receive income from an annuity. A person who requests Medical Assistance for Long-Term Care (MA-LTC) services must disclose any interest the person or their spouse has in an annuity and provide additional information about any annuity transactions.

MA-FCA Income Methodology

Mon, 25 Sep 2017 14:48:42 +0000

This article is a section taken from MA for Families with Children and Adults (MA-FCA), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Income Methodology

Income eligibility for Medical Assistance for Families with Children and Adults (MA-FCA) is based on current income and adjustments using the Modified Adjusted Gross Income (MAGI) methodology as follows:

Household income includes:
- The types of income included in Federal taxable income, minus Federal income tax adjustments
- Nontaxable foreign earned income and housing cost of citizens or residents of the United States living abroad
- Nontaxable interest income
- Nontaxable Social Security and tier one railroad retirement benefits
Household income does not include:
- Scholarships, awards or fellowship grants used for education purposes and not for living expenses
- Certain American Indian/Alaska Native income
Lump-sum income is counted in the month received.

Federal Taxable Income

Federal taxable income is the different types of income that appear in the Income section of the Internal Revenue Service (IRS) form 1040, IRS form 1040-A and or IRS form 1040-EZ. Only the taxable portions of these types of income are included in the adjusted gross income. See the appropriate IRS form instructions for examples of federal taxable income. The general types of taxable income include the following:

MA-FCA Transitional MA and Transition Year MA

Mon, 25 Sep 2017 14:19:45 +0000

This article is a section taken from MA for Families with Children and Adults (MA-FCA), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Transitional Medical Assistance and Transition Year Medical Assistance

Some Medical Assistance for Families with Children and Adults (MA-FCA) enrollees may extend their MA coverage under Transitional MA (TMA) or Transition Year MA (TYMA) after they are no longer considered MA eligible.

MinnesotaCare Income Verification

Fri, 22 Sep 2017 14:48:52 +0000

This article is a section taken from MinnesotaCare Financial Eligibility a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

MinnesotaCare Income Verification

MinnesotaCare requires verification of a person’s Projected Annual Income (PAI). PAI must be verified through an available electronic data source or by paper proof if electronic data sources are unsuccessful or unavailable.

The PAI is determined using the MinnesotaCare Income Methodology policy.

MinnesotaCare Begin and End Dates

Fri, 22 Sep 2017 14:14:22 +0000

This article is a section taken from MinnesotaCare Post-Eligibility, a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

MinnesotaCare Begin and End Dates

Eligibility and coverage are separate concepts for MinnesotaCare:

Eligibility refers to when a person meets the MinnesotaCare eligibility rules.
Coverage refers to when a person can receive MinnesotaCare benefits.

MinnesotaCare eligibility and coverage begin dates can be different dates. When a person is determined eligible for MinnesotaCare, coverage can begin no earlier than the first of the month following the determination. Once a person has been determined eligible for MinnesotaCare, that person remains eligible for MinnesotaCare for the rest of the certification period, unless a change in circumstances makes the person ineligible during the certification period. A person may still be eligible for MinnesotaCare even if they fail to pay a premium. A person required to pay a premium has coverage for only those months for which a premium is paid, subject to the grace month policy.

MA-ABD Pooled Trusts

Tue, 19 Sep 2017 17:15:17 +0000

Pooled Trusts

A Pooled Trust is a trust established for the sole benefit of a beneficiary who is certified disabled. The property held within a trust that meets all the requirements of a Pooled Trust is an excluded asset.

MSP Household Composition and Family Size

Tue, 19 Sep 2017 16:31:25 +0000

This article is a section taken from Medicare Savings Programs (MSP), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

MSP Household Composition and Family Size

Household composition means the people included in a person’s household. Household composition determines the family size. Household composition and family size are factors used to determine financial eligibility.

Household composition and family size are determined for each person separately and may be different for each person on an application or in a household.

Appendix B Types of Income

Thu, 14 Sep 2017 17:57:16 +0000

Types of Income

Academic Achievement Incentive Scholarships

A student financial aid program created by Title IV of the Higher Education Act of 1965.

Academic Competitiveness Grants

A student financial aid program created by Title IV of the Higher Education Act of 1965.

Accelerated life insurance payments

Some life insurance policies, in certain circumstances, allow the policy owner to receive some or all of the proceeds of the life insurance policy in the form of accelerated life insurance payments prior to the death of the insured.

Appendix G Life Estates Mortality Table

Thu, 14 Sep 2017 14:43:32 +0000

This article is a section taken from Medical Assistance (MA), a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual. This information was published in 2017 and has not been updated since.

Life Estates Mortality Table

This table must be used to determine the expected duration of a life estate interest or the remainder interest:

Appendix F Standards and Guidelines

Thu, 14 Sep 2017 14:39:44 +0000

Standards and Guidelines

This appendix provides figures used to determine eligibility for a person, or in a specific calculation completed to determine eligibility.

Community Spouse Allowances

The Community Spouse Allowances are used when determining the long-term care (LTC) income calculation’s community spouse allocation.

Basic Shelter Allowance

The Basic Shelter Allowance is used to determine if the community spouse has any excess shelter expenses.

Effective Dates

Minnesota Patients' Bill of Rights

Wed, 13 Sep 2017 18:07:55 +0000

Legislative Intent

It is the intent of the Legislature and the purpose of this statement to promote the interests and well-being of the patients of healthcare facilities. No health care facility may require a patient to waive these rights as a condition of admission to the facility. Any guardian or conservator of a patient or, in the absence of a guardian or conservator, an interested person, may seek enforcement of these rights on behalf of a patient. An interested person may also seek enforcement of these rights on behalf of a patient who has a guardian or conservator through administrative agencies or in probate court or county court having jurisdiction over guardianships and conservatorships. Pending the outcome of an enforcement proceeding the health care facility may, in good faith, comply with the instructions of a guardian or conservator. It is the intent of this section that every patient’s civil and religious liberties, including the right to independent personal decisions and knowledge of available choices, shall not be infringed and that the facility shall encourage and assist in the fullest possible exercise of these rights.

Emergency Medical Assistance

Wed, 13 Sep 2017 17:12:02 +0000

This article is a section taken from Medical Assistance (MA) a part of the revisions and additions to the Minnesota Health Care Program Eligibility Policy Manual.

Emergency Medical Assistance

Emergency Medical Assistance (EMA) covers emergency services for lawfully present noncitizens who are not eligible for regular Medical Assistance (MA) coverage with a federal match, and undocumented persons. (Certain groups of lawfully present noncitizens qualify for regular MA coverage with a federal match; individuals in these groups do not qualify for EMA.)

Overview of Programs for People with Disabilities

Wed, 13 Sep 2017 17:04:19 +0000

Minnesota provides a variety of services for people with disabilities. This information brief provides information about those programs and services. It contains a general Medical Assistance (MA) overview, including some expenditure and cost comparisons; an overview of MA disability programs and services, including home and community-based waiver services, intermediate care facility for persons with developmental disabilities (ICF/DD), day training and habilitation (DT&H), case management, home care, and personal care assistant (PCA) services; and an overview of state disability programs and services, including group residential housing (GRH), family support grants, consumer support grants, and semi-independent living skills (SILS). In addition, a list of acronyms is included at the end of the report.

Housing with Services

Wed, 13 Sep 2017 16:59:07 +0000

Overview of “Housing with Services”
HWS Fees
Legal Issues
Class A or Class F in HWS
Service Agreement and Service Plan
Assisted Living
Home Care Bill of Right #16 for Assisted Living Consumers
Termination of Assisted Living Services
Termination of HWS Contract
End of Home Care for Those Not on Assisted Living
Home Care Bill of Rights
Hospice Bill of Rights
Housing with Services Contract
Housing with Services Uniform Consumer Information Guide
Disclosure of Special Care Status
Exploring Options and Finding Resources
Other Consumer Tips

Medicaid Protection Trust: Protect Assets from Nursing Home & Long Term Care

Mon, 11 Sep 2017 22:40:51 +0000

2023 Update: Minnesota Fully Recognizes Medicaid Protection Trusts

Thanks to the Minnesota Court of Appeals’ ruling in Geyen v. Commissioner, Minnesota Dept. of Human Services, 964 N.W.2d 639 (Minn. App. July 12, 2021), the State of Minnesota now recognizes the effectiveness of a Medicaid Protection Trust. That is, Minnesota held that Minnesota Statutes section 501C.1206 (Minnesota’s “trust busting” statute) is superseded by federal law. Thus, people in Minnesota can protect their assets from nursing home costs and long-term care costs (including memory care) by properly using a Medicaid Protection Trust.

Minnesota Motor Vehicle Transfer-On-Death Law

Mon, 21 Aug 2017 22:47:57 +0000

Name a Beneficiary to Your Vehicle with a Motor Vehicle TOD Form

Minnesota vehicle owners can designate a beneficiary to receive their motor vehicle upon death—avoiding probate entirely. The Minnesota Legislature established a Transfer-On-Death (TOD) form for this purpose, allowing the vehicle to pass immediately to the named individual or trust (e.g. revocable living trust). This is one of several tools available for avoiding probate and accessing assets of the deceased.

MA Uncompensated Transfers Penalty Period Table

Thu, 03 Aug 2017 23:12:34 +0000

Medical Assistance: Penalty Period for Gifts During the 5-Year Lookback Period

When a person applies for Medical Assistance (Medicaid) in Minnesota, the state looks to any uncompensated transfers (e.g. gifts to family members) during the past 5 years. This is called the “5-year lookback period.” Depending on the amount of the uncompensated transfer, the state will deny coverage for a period of time (“penalty period.”)

The calculation for the penalty period starts by determining the uncompensated transfer amount. The uncompensated amount of transfers is the amount of income transferred or the fair market value (FMV) of the asset transferred, less any encumbrances and compensation received, on the transfer date. Exceptions exist for an annuity, a life estate, and a trust.

Billing Statements Are Not Hearsay Under the Business Records Exception

Thu, 03 Aug 2017 18:33:57 +0000

Minnesota Estate Planning Case: In re Estate of Klie, 2017 WL 541469 (OH Ct. App. 2017)

Case Summary: Billing statements are not hearsay under the business records exception

In re Estate of Klie, 2017 WL 541469 (OH Ct. App. 2017). The parties were fighting over attorney fees. One of the issues was whether the billing records were hearsay. The court decided the case on the hearing testimony and the application for fees which included the billing records. The transcript was not given to the appeals court and on appeal a party objected to the billings as hearsay. The billing statements are an exception to hearsay under business records exception and therefore admissible and may be used to decide the case.

Surcharge denied for making lump sum distribution

Thu, 03 Aug 2017 18:27:00 +0000

Minnesota Estate Planning Case : Estate of Braasch, 140 A.D.3d 1341 (NY Sup. Ct App. 2016)

Case Summary: Surcharge denied for making lump sum distribution

Estate of Braasch, 140 A.D.3d 1341 (NY Sup. Ct App. 2016). The trustee-executor was surcharged on other matters. But the surcharge for income taxes resulting from a lump sum distribution from an IRA was reversed. The plaintiffs failed to actually prove any damages. There was no proof offered that stretch distributions from an IRA would have resulted in a lower tax liability. That is not to say that stretch distributions don’t result in lower taxes. The problem here is that no proof of damages was offered. The plaintiffs merely make allegations that they would have paid no taxes at all. The failure to prove tax damages results in reversal of the surcharge on the matter.

Settlor and trust beneficiary can amend an irrevocable trust without consent of all beneficiaries

Thu, 03 Aug 2017 18:14:41 +0000

Minnesota Estate Planning Case : Brock v. Premier Trust, Inc., 133 Nev. 8 (NV 2017)

Brock v. Premier Trust, Inc., 133 Nev. 8 (NV 2017). Trust was created to benefit children of both spouses (2nd marriage). After once spouse died the trustee/beneficiary petitioned the court to amend the trust with the consent of settlor. The amendment voided the spendthrift provision and allowed for distributions at beneficiary request. Trustee settled claims with other beneficiaries who were claiming mismanagement. Trustee had agreed to pay other beneficiaries from his trust share as a pledge. When the bank started paying his pledge to beneficiaries the trustee objected. Arguments were that the trust could not be amended and that he got bad legal advice and should not have been allowed to pledge trust share. The trust can be amended even with a spendthrift clause without the consent of all beneficiaries and the change made to trust voided spendthrift. Bad legal advice is between trustee and lawyer and does not open the trust agreement.

Beneficiaries could sue for the mother after death for breach of duty

Thu, 03 Aug 2017 18:07:44 +0000

Minnesota Estate Planning Case: In the Matter of the Taylor Trust, 381 P.3d 428 (CO Ct.App. 2016)

Case Summary: Beneficiaries could sue for the mother after death for breach of duty

In the Matter of the Taylor Trust, 381 P.3d 428 (CO Ct.App. 2016). A second marriage case. Husband and wife created a joint trust that distributed ½ to husband’s kids and ½ to wife’s kids after both deaths. Husband had separate accounts POD to his kids at death and wife had the same. After husband died in 2010 those accounts distributed to his kids and husband’s son became a co-trustee with wife. While wife was dying, husband’s kid had wife put her separate accounts into the revocable trust so they would be distributed ½ to husband’s kids. At trial the co-trustee son failed to argue that there was no breach of fiduciary duty to mom or her interests. It was only raised on appeal. Because it was only raised on appeal the court would not address the argument. The court went on to find that there might be such a claim of breach against mom’s interests and it might be able to be brought by her kids so it was allowed to move forward. Because this was a trust matter attorney fees can be awarded in a breach claim.

Nephews gifts by POA to himself and relatives with POA was self-dealing and constructive fraud.

Fri, 28 Jul 2017 18:46:24 +0000

Minnesota Estate Planning Case : Stehlik v. Rakosnik, 24 Neb.App. 34 (2016).

Case Summary: Nephews gifts by POA to himself and relatives with POA was self-dealing and constructive fraud.

Stehlik v. Rakosnik, 24 Neb.App. 34 (2016). Shortly after gaining POA the nephew transferred the farm and various cash assets to the POA and the POA’s siblings. The testator changed his will to disinherit the POA and siblings. While the POA had gifting powers, that did not allow for selfdealing. Acts of self-dealing must be specifically waived. Alleged oral authorizations for self-dealing are not sufficient, it must be in the document.

Presumption of fraud for gifts to attorney-in-fact can be pushed back.

Tue, 25 Jul 2017 16:36:52 +0000

Minnesota Estate Planning Case : In re Guardianship of Spinnie, 2016 Ill.Dec. 319 (IL Ct.App. 2016)

Case Summary : Presumption of fraud for gifts to attorney-in-fact can be pushed back.

In re Guardianship of Spinnie, 2016 Ill.Dec. 319 (IL Ct.App. 2016). The attorney-infact was named as such in the ward’s poa, but the ward made gifts personally to the AIF and the gifts were not made by the AIF as AIF. In this case, the court found that merely being named AIF is sufficient to create a presumption of fraud for gifts received by the AIF. However, in this case, the AIF was able to push back the presumption and the gifts to the AIF were allowed.

Trustee-Beneficiary acting in bad faith can have fees charged against trustee-beneficiary's share

Tue, 25 Jul 2017 16:06:24 +0000

Minnesota Estate Planning Case : In the Matter of the Massie Trust, 2017 WL 218284 (WI Ct.App. 2017)

In the Matter of the Massie Trust, 2017 WL 218284 (WI Ct.App. 2017). The American Rule on attorney fees applies in Wisconsin. Also, by statute, in trusts and estates the common fund rule applies where fees are paid from the common fund. Wis. Stat. 879.37. But in a trust the court also has equitable powers. Therefore the court can assess fees against a trustee-beneficiary’s share who was acting in bad faith. The assessment can exceed the share owed the trustee-beneficiary to the extent that the trusteebeneficiary actually owes the trust beneficiaries from personal assets. The court went on to note that this conclusion is supported by Wis Stat. 701-1004(1) (the new Wisconsin UTC).

Which State's Law Applies in Trust Administration?

Tue, 25 Jul 2017 15:59:28 +0000

Summary: State where trust is created is the applicable law for dispositive provisions of a trust. Law of administration is the state where trust is administered.

Minnesota Estate Planning Case : Alexander v. UMB Bank, N.A., 497 S.W.3d 323 (MO Ct.App. 2016)

Case Summary : Section 107; State where trust is created is the applicable law for dispositive provisions of a trust. Law of administration is the state where trust is administered.

Alexander v. UMB Bank, N.A., 497 S.W.3d 323 (MO Ct.App. 2016). The trust was administered in Missouri but was created in Kansas. The trust had an ambiguous dispositive provision because the trust did not contemplate the distribution of the trust if both of the settlors brothers died before termination. And sure enough, both brothers did die. The resolution of how the trust is distributed is different under the two state laws. So the applicable law became the deciding questions. Since the trust was created in Kansas the Kansas Trust Code decided how to interpret the dispositive provisions of the trust.

Real Estate Option Purchase Agreement Interpreted Against the Drafter of Agreement

Tue, 11 Jul 2017 14:23:19 +0000

Minnesota Estate Planning Case : Waterworth v. Ekman, 2016 WL 1175099 Filed March 28, 2016 (Minn.Ct.App. 2016)

Case Summary : Real estate option purchase agreement interpreted against the drafter of agreement.

Waterworth v. Ekman, 2016 WL 1175099 Filed March 28, 2016 (Minn.Ct.App. 2016). Plaintiff was renting 106 acres from Defendant who was later put under conservatorship. Defendant owned a total of 138.48 acres but rented just 106 acres. The defendant wrote an option agreement to buy the land at a price offered by any third party if the defendant ever sold it. The agreement did not specifically list the total acres it applied to, i.e. whether it applied to 106 acres or 138 acres. When the land was sold off in three parts, plaintiff wanted to buy it all. The court ruled that under the law of contracts, “ambiguous contract terms must be construed against the drafter.” Since the Plaintiff drafted the agreement the ambiguous provision was limited to 106 acres.

Civil Contempt Order Resulting in Jail Time Was Proper for Party Who Refused Post-Judgment Discovery

Tue, 11 Jul 2017 14:13:14 +0000

Minnesota Estate Planning Case: Mohrman, Kaardal & Erickson v. Gene Rechtzigel (and as PR for Estate of Frank Rechtzigel and as Trustee et al) Filed August 22, 2016, A15-1886.

Case Summary : Civil Contempt Order Resulting in Jail Time Was Proper for Party Who Refused Post-Judgment Discovery

Mohrman, Kaardal & Erickson v. Gene Rechtzigel (and as PR for Estate of Frank Rechtzigel and as Trustee et al) Filed August 22, 2016, A15-1886. Attorneys performed substantial services for the client that went unpaid. Attorneys sued client and obtained judgment for payment for $184,890.99. The client appealed to Minnesota Supreme Court and US Supreme Court, and lost. Post-judgment discovery was started but client did not respond. This eventually resulted in client being held in jail for contempt until he cured the contempt order. During the appeal, the client cured the contempt order but continued with the appeal. The client raised at least 10 issues for appeal. I will not waste my time or yours on the issues raised, he lost.

Constructive Trust Did Not Apply To Cohabitating Partners

Fri, 30 Jun 2017 17:04:08 +0000

Minnesota Estate Planning Case: In re the Estate of Clara Mae Murphy, Deceased, A16-0661 (Minn.Ct.App. January 9, 2017)

Case Summary: Constructive Trust Did Not Apply To Cohabitating Partners

In re the Estate of Clara Mae Murphy, Deceased, A16-0661 (Minn.Ct.App. January 9, 2017). The decedent and appellant began dating in 1992. They bought a home in joint tenancy. They sold that home and bought a new home in 1995 in joint tenancy. They both participated in several mortgages on the property. In 2002 the appellant quit-claimed his interest in the home and the decedent signed a will on the same day. The decedent died in 2013. The boyfriend-appellant appeals the district court order denying a one-half interest in the home. The court found that the payments by boyfriend after the quitclaim deed were rent payments. The court did not find that there was unjust enrichment to the estate because the boyfriend benefitted from the rent payments by living in the home. The district court did not abuse its discretion in its findings and the denial of constructive trust did not abuse the court’s discretion. Appeal denied.

Undue Influence Need Not Be Proved By All Factors Under The Precedent Of In Re Wilson’s Estate.

Fri, 30 Jun 2017 16:59:05 +0000

Minnesota Estate Planning Case: In re Estate of: Alice I. Engman, Decedent, A16-0805 Filed January 30, 2017

Case Summary: Undue Influence Need Not Be Proved By All Factors Under The Precedent Of In Re Wilson’s Estate.

In re Estate of: Alice I. Engman, Decedent, A16-0805 Filed January 30, 2017. Mother had 3 children. One son died and left a surviving spouse. Mother had a will leaving the estate to the two children and to the surviving spouse. When one of the children was going on medical assistance, mother changed the will to give the estate to the son’s surviving spouse and to the daughter who was not on medical assistance. Mom did not want MA to get the estate. The MA daughter died before mom. After mom died, the disinherited daughter’s son brought a petition to probate the estate as intestate and ultimately argued that the will was the product of undue influence. Both the district court and the Court of Appeals noted the factors to consider for undue influence under the precedent of In re Wilson’s Estate, 27 N.W.2d 429, 432 (Minn. 1947) which include (briefly stated) the opportunity, active participation in the will, confidential relationship, disinheritance of natural objects, singularity of provisions, and exercise of the influence. While the objector and the district court analyzed all the factors, the court of appeals found that proving all factors is not necessary under the Wilson’s standards. “…there are various ways in which a party might prove undue influence, depending on the facts of a particular case, and that party seeking to prove undue influence may choose to introduce, among other things, any of the forms of circumstantial evidence identified in that opinion.” The district court found that there was no undue influence and the court of appeals agreed.

Can I Get Medical Assistance if I have Private Insurance?

Thu, 29 Jun 2017 13:31:35 +0000

How other health insurance may affect eligibility for Medical Assistance or MinnesotaCare

When applying for health care programs, you must tell us if you have other health insurance or can get health insurance through:

A current or former employer
Military service
Medicare, including Medicare supplement plans
Private insurance that you buy, including long-term care and dental insurance
Workers’ compensation or other insurance that must pay for your medical care

Can I have other health insurance and qualify for Minnesota Health Care Programs (MHCP)?

Minnesota Nursing Home Discharge/Transfer Notices

Mon, 19 Jun 2017 21:39:52 +0000

This bulletin contains an updated sample notice and current Ombudsman directory for use with the 30 day discharge/transfer notice given a resident prior to involuntary discharge or transfer. (This information supercedes Information Bulletin 92-4.)

The sample notice has been revised to identify the Minnesota Disability Law Center as the agency responsible for protection and advocacy of nursing home residents with developmental disabilities or mental illness. Also added to the notice is a statement that the resident has 30 days from receipt of the discharge notice to appeal.

If a Medicare patient requests hospice, must a nursing home provide it?

Mon, 19 Jun 2017 21:39:32 +0000

Question: If a Medicare beneficiary requests hospice care, is the SNF obligated to provide this service?

Response: No.

The beneficiary has freedom of choice, but it is not an unqualified freedom. A hospice must enter into a written agreement (a contract) with any individual or entity for the services that are to be provided under arrangement. A Medicare beneficiary residing in a SNF/NF may elect the hospice benefit and receive hospice services if the hospice and the facility have a written agreement under which the hospice takes full responsibility for the professional management of the individual’s hospice care and the facility agrees to provide room and board to the individual. Federal regulations place the burden for establishing these contracts on the hospice. Additionally, federal regulations do not require a nursing facility to contract with a hospice provider, and the facility may limit the number of hospice providers with which it chooses to enter into agreements, including no agreements at all.

Minnesota Guidelines for Locked Nursing Home Units

Mon, 19 Jun 2017 21:39:28 +0000

The Minnesota Department of Health, Health Regulation Division, has experienced a significant increase in requests to lock up all or parts of nursing homes. This increase is in response to providers’ desires to create a more secure area for residents who wander.

A locked unit is considered a form of restraint. The facility must request a waiver of Minnesota Rule 4658.0300 as the first step in the process. The waiver will be reviewed and acted upon by the Division’s Licensing and Certification Administrative Committee. If the waiver is approved, the facility has permission to establish, i.e. construct a locked unit. This approval will be contingent upon compliance with all provisions of these Guidelines for Locked Nursing Home Units and Mn. Rules 4658.2000 to 4658.2090. When it is determined that all conditions have been met by the facility, the Department of Health will grant permission to operate the locked unit.

Ensuring Safety Without Restraints in Nursing Home Care

Mon, 19 Jun 2017 21:20:23 +0000

Safety Without Restraints: A New Practice Standard for Safe Care

One Daughter’s Story

My mother is 88 years old and has dementia. After a severe injury, she moved to a nursing home with a good reputation, one where I felt I could trust the staff to keep Mom safe. The staff did an excellent job of helping Mom continue to be able to walk.

Then it happened. I got a call from the nurse at the nursing home saying Mom had been sent to the emergency room. She had been walking when she became tangled in another resident’s walker and fell flat on her face. She had a bad cut on her forehead and her face was badly bruised. I cried when I saw her. She returned to the facility in a wheelchair with a lap tray. I felt a lot better believing the chair and tray would protect her from further falls.

Nursing Facility Services Covered by Medical Assistance

Mon, 05 Jun 2017 13:33:40 +0000

Nursing facility services under Medical Assistance (MA) are a package of room and board and nursing services. Acute care services such as hospitalization are paid for separately under MA; this is also usually the case for therapy and other ancillary services.

In order to be eligible for nursing facility care, an MA enrollee must:

be screened by a long-term care consultation team; and
be determined by the team to need nursing facility-level care.

The screening team assigns each nursing facility resident one of 48 case-mix classifications under the Resource Utilization Groups (RUGs) case-mix system.1 Each classification is assigned a weight that represents the amount of care needed. This weight is used in calculating reimbursement rates for nursing services.

Forbes Top Ten Earning Deceased Celebrities and What We Can Learn From Them

Thu, 10 Nov 2016 19:48:08 +0000

Forbes puts out a list of the Top 10 Earning Deceased Celebrities each year. These people are earnings millions…or rather their estates are…long after their death. While we don’t all have lucrative music or film contracts that provide for residual income, we can all learn something from these celebrities. With careful estate planning, and smart investments, your estate can continue to earn money long after your death as well which will provide your beneficiaries with financial security for years to come.

Consumer Reports Evaluates DIY Estate Planning

Thu, 10 Nov 2016 18:55:16 +0000

Estate planning attorneys want to assist clients. For this reason, some people may be skeptical when legal professionals advise against the utilization of do-it-yourself estate planning documents.

The reason why experienced estate planning attorneys, who have knowledge about the subject, don’t recommend going it alone is because they understand some of the hazards.

The above having been stated, even the skeptics should be swayed by evaluations that are coming from a highly respected and purely objective source.

In Minnesota Can You Give Away Assets to Qualify for Medicaid?

Wed, 09 Nov 2016 20:49:30 +0000

It can come as a shock when you find out that Medicare will not pay for an extended stay in a nursing home or a long-term care community. What would you do if you were faced with long-term care expenses during the latter portion of your life? Most senior citizens who are receiving long-term care in the United States are getting assistance from the Medicaid program. In the state of Minnesota this jointly run federal-state program is called Medical Assistance (MA).

Guardianship in Minnesota: How Do I Know if My Parent Needs a Guardian?

Wed, 09 Nov 2016 20:43:53 +0000

Someone who is mentally impaired, whether from age or infirmity, may start to show signs of needing assistance in their personal affairs. If, for example, your parent or loved one starts leaving food cooking on the stove, getting lost when away from home, forgetting to eat or take their medication, it is probably time to consider whether they are in need of a guardian. Don’t let it reach the point that your parent or loved-one becomes a real hazard to themselves or others. In some cases, your loved one’s needs can be taken care of informally by family or friends, which would be the preferred solution.

What is a Guardianship or a Conservatorship in Minnesota?

Wed, 09 Nov 2016 20:41:46 +0000

When the time comes for you to decide whether someone you love needs someone else to take control of their personal affairs, it helps to understand what a guardianship and conservatorship in Minnesota mean. A guardianship or conservatorship is established through a legal proceeding when the court appoints a person (a conservator or guardian) to act as a decision maker for the protected person, also referred to as the conservatee or ward. First, the court must make a finding that the individual is incapacitated, meaning the individual is unable to make decisions for himself or herself. As the implications of making this determination are serious, a guardianship or conservatorship “should only be sought if the individual’s judgment or decision making is a major threat to the individual’s welfare,” according to Minnesota law.

What is the Difference Between Medicaid and Medicare in Minnesota?

Wed, 09 Nov 2016 20:36:45 +0000

When you are positioning yourself financially for the future, you are naturally going to have questions about government programs that you have heard about. These would typically include Medicaid and Medicare.

Because the names are similar, understanding what each respective program accomplishes can be confusing. With this in mind let’s look at the differences.

Medicare Basics

American income earners pay into the Medicare program via taxation. If you pay into it sufficiently you become eligible for Medicare federal health insurance coverage when you reach the age of 65.

Your Dogs are Listening and They Want a Trust

Mon, 19 Sep 2016 15:36:20 +0000

Ground-Breaking Study

Good news, dog owners. Science has confirmed what we have known all along. Dogs are able to understand individual words and intonations much like us. Until this ground-breaking study, scientists thought that humans were the only species capable of separating what was said from how it was said. But after sticking six border collies, five golden retrievers, a German shepherd, and a Chinese crested into an MRI machine, this assumption was shattered. So it appears that man’s best friend is cognitively closer to humans than previously thought. Indeed, our canine companions often feel like intimate members of our families. Just like any family member, we play with our dogs, we care for our dogs, we talk to our dogs (and now we scientifically know they listen). In short, we treat our dogs like family in every sense but one—estate planning.

How Is Incapacity Determined?

Thu, 15 Sep 2016 18:42:20 +0000

This is an important question in estate planning because many instruments become active when the person who executed it becomes incapacitated. The reverse is also true. There are many instruments that cannot be created if the person trying to execute the instrument is incapacitated. Determining an individual’s capacity or incapacity can be a very difficult issue, but it is a necessary determination in many legal proceedings.

What is incapacity?

In general, a person is considered incapacitated when he or she is no longer able to manage their own affairs or maintain his or her own physical well-being. There are some medical conditions that also result in a declaration of incapacity, such as dementia or various mental illnesses. Age and infirmity can also diminish a person’s capacity to care for themselves. Incapacity can also refer to someone who is unconscious or in a coma, which renders them unable to respond to questions or make decisions.

Fixing David Bowie's Will

Thu, 23 Jun 2016 13:50:48 +0000

David Bowie died on January 10, 2016, just two days after the release of his final album, Blackstar. The last song on the album, “I Can’t Give Everything Away,” seems prophetic both in its title and its initial verse. “I know something is very wrong.”

News stories estimate Bowie’s estate at $100 million. His legal name is David Robert Jones. He was a citizen of the United Kingdom and a resident of the United States (New York City). He left a Will dated August 25, 2004, and a Codicil to the Will dated May 4, 2007. David Bowie was married to his second wife, Iman Mohamed Abdulmagid (“Iman”) at the time of his death. David has a daughter with Iman, Alexandria Zahra Jones (“Lexi”) who is 15 years old. He also had a son from his first marriage, Duncan Jones (“Duncan”). Duncan is 44 years old, married, and is expecting his first child (Bowie’s first grandchild) in June of this year. Iman has a daughter, Zulekha Haywood (“Zulekha”), from her first marriage.

Uniform Fiduciaries Act

Tue, 10 May 2016 19:42:51 +0000

Imagine that a trust is established with insurance proceeds for the benefit of a minor child Billy after his parents are killed in an accident, with Uncle Theodore as Trustee. Theodore cannot use the insurance proceeds to buy a new boat or to pay of Theodore’s student loan debt. If Theodore violates that rule, what then? Assuming Theodore no longer has the trust assets to return to Billy, how is Billy to be made whole again? Might those people who helped Theodore take the trust assets also be held liable? Does the bank where the trust assets were deposited have any protection against a suit if the bank acted in good faith?

Your Family Cabin: How to Avoid Conflict & Structure Ownership

Wed, 25 Mar 2015 20:11:36 +0000

Family Cabin LLCs & Trusts

While a family cabin is often filled with happy memories, conflict can arise when the cabin’s owner dies. Now comes the time to plan future ownership and responsibilities. If the cabin has been gifted to the former owner’s children, as often is the case, it is not uncommon for disagreements to turn into serious family conflicts. Some family members may want to split responsibilities equally, while others may want nothing to do with it. Unless protective measures have been taken, one owner has the power to force a sale of the cabin against the wishes of the other owners. This is why it’s important to address potential problems before they can cause rifts in the family. Many common disputes can be avoided by restructuring ownership of the cabin in one of two ways.

2013 Minnesota Estate & Gift Tax Legislative Changes

Fri, 19 Jul 2013 19:22:58 +0000

2013 Tax Law Changes Overview: Estate Tax
Tax Type	Statute	Brief Description	Effective Date

Estate Tax	289A.10 Sub 1	Estate Tax: Modifies the filing requirements for the estate tax to provide that federal adjusted taxable gifts made within 3 years of decedent’s death must be added to the value of the federal gross estate to determine if the estate exceeds the $1 million filing requirement.	Effective for estates or decedents dying after December 31, 2012

Estate Tax	289A.10 Sub 18	Estate Tax: Requires qualified heirs file two informal returns if a decedent deducted qualified small business or qualified farm property. First return is due two years after decedent’s death. Second return is due three years after decedent’s death.	Effective for returns required to be filed after December 31, 2013

Estate Tax	291.005 Sub 1	Estate Tax: Includes the amount of Minnesota taxable gifts made by the decedent after June 30, 2013 and within 3 years of death in the Minnesota adjusted taxable estate.	Effective for estates of decedents dying after December 31, 2012

Estate Tax	291.005 Sub 1	Estate Tax: Provides gifts of tangible personal property are assigned to the place where it was normally located at time of gift and gifts of intangible property is assigned to donor’s domicile at time of gift.	Effective for estates of decedents dying after December 31, 2012

Estate Tax	291.005 Sub 1	Estate Tax: For nonresidents who have ownership interests in pass-through entities, assigns any real and tangible personal property located in Minnesota as if the pass-through does not exist.	Effective for estates of decedents dying after December 31, 2012

Estate Tax	291.005 Sub 1	Estate Tax: Updates the estate tax for federal changes enacted through January 3, 2013, but without regard to the federal termination of the federal credit for state death taxes. This change has no substantive effect.	Effective for estates of decedents dying after December 31, 2012

Estate Tax	291.03 Sub 1	Estate Tax: Provides that any Minnesota gift tax paid on gifts included in the Minnesota adjusted taxable estate reduces the estate tax due	Effective for estates of decedents dying after December 31, 2012

Estate Tax	291.03 Sub 1c	Estate Tax: Allows a credit against the Minnesota estate tax for estate or inheritance tax paid to another state on property held in pass-through entities, as provided under section 4. The credit cannot exceed the Minnesota estate tax attributable to that property.	Effective for decedents dying after December 31, 2012

Estate Tax	291.03 Sub 8	Estate Tax: Clarifies that a trust whose beneficiaries are all family members qualifies as a family member for purposes of the qualified small business property and qualified farm property exclusion	Effective retroactively for estates of decedents dying after June 30, 2011

Estate Tax	291.03 Sub 9	Estate Tax: Modifies the qualified small business property requirements for purposes of the exclusion (see bill language for details)	Effective retroactively for estates of decedents dying after June 30, 2011

Estate Tax	291.03 Sub 10	Estate Tax: Modifies the qualified farm property requirements for purposes of the deduction (See bill for details)	Effective retroactively for estates of decedents dying after June 30, 2011

Estate Tax	291.03 Sub 11	Estate Tax: Clarifies that for sole proprietor property, the qualified heir will not be treated as having disposed of an interest in the qualified property if the heir replaces qualified small business property with similar property.	Effective retroactively for estates of decedents dying after June 30, 2011

(2013 Regular Session)

Bulletin Date: May 31, 2013

Survey of State Estate, Inheritance, and Gift Taxes

Tue, 03 Apr 2012 21:49:46 +0000

This post was last updated in December 2012. View an overview of Minnesota Gift Tax law reflecting changes made in 2013.

This post provides basic background information on the details of state estate, inheritance, and gift taxes. The District of Columbia and 22 states, including Minnesota, impose these taxes. Of these, 14 states, including Minnesota, and D.C. impose estate taxes, six states impose inheritance taxes, and two states impose both estate and inheritance taxes. Two states (one with an estate tax and one with an inheritance tax) also impose gift taxes.

Stranger-Originated Life Insurance: How Seniors Can Fight STOLI Scams

Thu, 18 Nov 2010 21:41:31 +0000

I have represented a number of senior citizens who have been victims of a STOLI scam.

This article explains the basics of the STOLI scam on seniors and what they can do to fight back. In short, the seniors should turn the tables on the STOLI businesses to sell the insurance policy themselves rather than let the STOLI businesses reap a windfall.

Before we begin, it’s worth defining and describing some of the terms and concepts in the STOLI and ILIT process.

Trusts & Estates on Aaron Hall, Attorney

Managing Voting Power When Ownership Is Held in Trust

Legal Strategy for Delaying Distributions Legally

Rights of First Refusal That Conflict With Tax Planning

Use of QSSTs in Closely Held S Corporation Planning

Intrafamily Loan Forgiveness Statute Limitations

Intrafamily Loan Balloon Payment Tax Reporting

Intrafamily Loan Forgiveness

Dynasty Trust Perpetuity Period by State

Dynasty Trust Termination

Family Limited Partnership Dissolution

Dynasty Trust State Rule Against Perpetuities Exception

Intrafamily Loan Balloon Payment Tax Risk

Charitable Remainder Trust Termination

Dynasty Trust Perpetuity Period Extension Strategies

Dynasty Trust State-Specific Perpetuity Extensions

Intrafamily Bargain Sale

Intrafamily Loan Amortization Schedule Compliance

Testamentary Trust: Perpetuities Savings Clause

Succession Legal Document

Intrafamily Loan: Minimum Interest Rate (AFR) Compliance

Intrafamily Loan AFR Rate Compliance

Testamentary Trust Income Distribution Guidelines

Legal Steps for Handling Executor Misconduct

Counterclaims in Trust and Estate Dispute Cases

Counterclaims in Trust and Estate Dispute Resolution

Cease and Desist: Trust and Estate Enforcement

Will Signed on Separate Page is Valid, Says Court

Case Title

Case Summary

Terms and Definitions for Conservatorship and Guardianship

What is an Affidavit?

What is an Appeal?

What is a Bond?

Example Form: Trust Beneficiary Receipt and Release Template

Video: Learn About Receipt and Release Forms

Introduction

Does an Unrecorded Deed in a Trust Avoid Probate?

Recording a Deed is Not Necessary to Avoid Probate

How to Avoid Probate and Access Bank Funds of the Deceased

Rights of Beneficiaries in Minnesota Trusts

Good Faith

Manual Letter #16.1, June 1 2016

Manual Letter #16.1

Manual Letter #17.2, June 1 2017

Manual Letter #17.2

Medicare Savings Programs (MSP) Income

MSP Income

MA-FCA Medical Spenddown

Medical Spenddown

MA Begin and End Dates

Medical Assistance (MA) Begin and End Dates

Overview

MA Asset Limits

Medical Assistance (MA) Asset Limits

Asset Limit for Medical Assistance Families with Children and Adults (Without a Spenddown)

MA Cost Sharing

Medical Assistance (MA) Cost Sharing

Deductibles and Copays

MA Liens

Medical Assistance (MA)Liens

MA Estate Recovery

Medical Assistance (MA) Estate Recovery

Minnesota Health Care Programs (MHCP)

Minnesota Health Care Programs

MHCP Overpayments

Minnesota Health Care Programs (MHCP) Overpayments

MA for Long-Term Care Services (MA-LTC) Annuities

Annuities

MA-FCA Bases of Eligibility

Bases of Eligibility

MA-FCA Asset Limits

Asset Limits

Medical Assistance for Families with Children and Adults (Without a Medical Spenddown)

Data Privacy: Is Your Minnesota Health Care Application Confidential?

MHCP Data Privacy

MHCP Authorized Representative

Authorized Representative

MHCP Program Overviews

Program Overviews