Q&A

A substantial amount of otherwise confidential information is found a consumer credit report. The report includes personal information such as name, age, social security number, home and business address, employment, pervious addresses, marital status, spouse's name and number of children, It also contains financial information such as estimated income, value of car and home, bank accounts, credit accounts, payment history, credit limits and mortgages. Public information such as tax liens, bankruptcies or court judgments are also included in this report. The material contained in your credit report is updated regularly.

Credit bureaus, sometimes called credit reporting agencies gather and sell information as credit reports about individual consumers. Credit reporting agencies do not actually grand credit, but merely collect large amounts of information which they sell to third parties such as banks or retailers, who, using their own criteria, determine whether the consumer will be granted credit or not.

Presently there are three major national credit reporting agencies operating in the United States maintaining records throughout the country. Each of the three, Equifax, Trans Union and Experian (formerly known as TRW) keep files on an estimated 150 to 170 million Americans. In addition to these three major credit reporting agencies there are also more than 800 smaller bureaus around the country that keep records only on consumers living withing their limited geographical areas. However, more than 500 of these 800 companies are either affiliated with or fully owned by one of the three major credit reporting companies.

As could be expected with the accumulation of such huge amounts of information, mistakes happen. Studies have shown that about half of all credit reports have errors. Errors on your credit report can have potentially disastrous results.

The first step in finding out if there is a mistake in your credit report is obtaining a copy of your credit report. Included in this Web site are three sample letters, one for each of the three major credit reporting agencies. By using these letters you can request a copy of your credit report be sent to you. Federal law requires the credit reporting agencies to provide you with a free credit report annually upon your request. Go to www.ftc.gov to order your free credit reports on line. Once you have examined your credit report, you should be able to see if there are any mistakes in your report.

When you find a mistake in your credit report, you should bring it to the attention of the credit reporting agency or agencies in writing. Each of the credit reporting agencies acts independently so you should check each agency's report for inaccuracies. Once you have challenged the accuracy or completeness of information contained in your credit report, the credit reporting agency must investigate your complaint at no cost to you. Federal law requires this investigation be completed within thirty days. The investigation may, however, be extended an additional fifteen days if, during the initial thirty day period, the consumer supplies additional relevant information for consideration.

A will is a legal document by which you direct the distribution of your assets.

If a person dies without a will (dying intestate) the laws of the home state of the deceased (the domicile) determines who gets what assets and in what amounts. The laws of the state will also determine who will administer the estate and if there are children who will be appointed as guardian for the children. This can often lead to unwanted results.

The person named by the deceased in his or her will to administer the will is called the Executor. In some states this person is called a personal representative.

Yes you can write your own will; you can also take out your own appendix with a pen knife if you wish and you may do yourself less harm if you do your own surgery than if you do your own will, although frankly I do not advise people to do either activity on their own. Writing a will can be a complicated process to do properly. It involves coordinating assets which will not usually be covered by the will, such as life insurance or retirement benefits, being aware of tax laws and how they affect your estate and being aware of and following exactly the precise laws governing the execution and witnessing of your will.

Even if all of your assets are held in joint tenancy with a right of survivorship which means that the other person named on the asset (such as a joint bank account) will inherit that asset without it being subject to probate or being an asset to be distributed by the terms of your will and even where you may have other assets with named beneficiaries who will receive the assets at your death such as retirement accounts or life insurance, you should have a will because there may be additional assets that you may acquire later that would require a will to avoid intestacy.

It is very simple to either change or revoke a will either by executing a new will or by executing an amendment of the will which is called codicil. Although it is easy to have a codicil drafted, it must be executed with the same formalities of a will, such as being properly witnessed.

A will should be reviewed whenever there is a major change in personal or financial circumstances of the testator or when there is a change in the tax laws. Some of the personal changes that would call for the review of a will would be moving from one state to another, marriage, divorce, the births of children or the deaths of beneficiaries of the will. As a general rule a will should be reviewed in any event about every five years.

Yes, the full faith and credit clause of the United States Constitution requires each state to recognize wills properly drawn and executed in the other states. However, even though your will may be valid after moving to another state, it is still a good idea to have your will reviewed to insure that it still is written in the most effective manner for achieving your goals.

The person whom you name as Executor in your will does not have to be a lawyer or accountant or other professional. Most important is that the person you pick have common sense and be familiar with your circumstances. Your executor will be advised by a lawyer and perhaps other professionals such as accountants and financial planners in seeing that your estate is settled in the most efficient manner possible.

Generally you can disinherit any relative other than a spouse . A spouse, even if he or she is left out of a will has a statutory right to take a specified percentage of the estate. Children or other relatives may be effectively left out of a will.

You should keep your Will in a safe, but accessible place. A safe deposit box is a good place to store your Will. In Massachusetts, unlike some other states, a safe deposit box is not sealed at the time of the death of the owner of the box so long as there is someone else listed on the box as being able to have access to the box. It is always a good idea to have at least two people named on a safe deposit box.

I also suggest that you keep a photocopy of your Will at home for reference and review.

You should tell your executor where to find your original Will. I keep an unsigned copy in your confidential file. I will not make copies for anyone other than you or someone you authorize.

It is not necessary for anyone other than you, the client, to have copies of your Will. If you wish, I will be glad to make copies for anyone you desire, but remember if you change your Will, the copies of the old Wills could be embarrassing to you.

I suggest that you review your Will every time there is a significant change in the law or in your family or financial situation. At a minimum, you should review your Will every five years.

• Death of beneficiary.
• Marriage, divorce or remarriage.
• Birth or adoption of a child.
• Death or change of personal representative. Death or change of children's guardian.
• If you change your name, or anyone mentioned in the Will changes theirs.
• If you change your mind about distribution. If there is a significant change in your assets.
• If you retire.
• If you buy, inherit, or receive substantial assets as a gift.

Do not write on the Will. Changing your Will is often done by a Codicil. However, if you are changing beneficiaries or changing the amounts being given to beneficiaries, it is a better practice to redo the Will. The fee for redoing your Will is generally the same as for adding a Codicil. I recommend that you contact us if you want to make any changes and to make certain all changes are legally made.

The best way to revoke a Will is to tear up the original. Normally you should not revoke your Will until your new one is executed.

If you revoke your Will and die without one, your property will be distributed according to Massachusetts Laws of Intestacy and that may not be the way you want.

Feel free to call me. I am glad to answer your questions.

A power of attorney is a document that allows a person (the principal) to appoint someone else to act on his behalf. This person who acts on behalf of the principal is called the "agent" or the "attorney in fact". The attorney in fact does not have to be a lawyer. The attorney in fact can do whatever the principal could do in regard to his financial affairs; he or she can pay bills, file tax returns and otherwise do anything in regard to the financial or business affairs of the principal. A power of attorney can be extremely broad or it can be as limited as the principal wishes and is tailored to the desires of the principal.

Traditionally a power of attorney was automatically revoked and invalid once the principal became incapacitated. This in effect meant that as soon as the principal needed the agent to act on his or her behalf the most, the power of attorney was ineffective. By 1999 twenty-eight states and the District of Columbia had adopted the Uniform Durable Power of Attorney Act creating powers of attorney that would continue to be effective even if the principal was incapacitated.

If you become incapacitated without the having a durable power of attorney in place it will be necessary to go to court to have a guardian or conservator appointed by the court to manage your affairs. This can be an expensive and time-consuming proposition and may result in a person who would not be of your choosing being appointed as your guardian or conservator. In addition the guardianship or conservatorship is a public record and affects your privacy.

A durable power of attorney can either be immediate or springing. An immediate power of attorney, as the name describes takes effect immediately and continues to be effective, even if you become incapacitated. A springing durable power of attorney acts like an insurance policy and only takes effect upon your becoming incapacitated. The standard for determining your incapacity is set out by you in your durable power of attorney. A common standard used is the determination of your primary care physician.

Absolutely. A durable power of attorney is revocable by you at any time. Legally all you need do is give notice to your agent that you are revoking the power of attorney. It is also advisable to notify those institutions with whom you may have business affairs that the power of attorney has been revoked.

People over the age of sixty-five years of age represent the fastest growing age group in the country. It has been estimated that two out of every five people over the age of sixty-five years will enter a nursing home. Nursing home expense can be financially devastating. Proper planning for long term care is critical today.

The cost of long term care can be very expensive. In addition to using your assets and savings to pay for the cost of long term care there are other alternatives which include:

Long Term Care Insurance: More and more this insurance is becoming a viable alternative for people with significant assets which they wish to protect from depletion. Individual policies sold in Massachusetts must meet stringent coverage requirements which are protective of consumers. In addition, under a special provision of Massachusetts law the state will not place a lien on your home if you require Medicaid after the coverage of a qualifying policy is exhausted. Anyone considering long term care insurance should contact an insurance agent experienced in this area.

Medicaid: This is a joint federal and state program that pays for the cost of long term care for people who meet its economic and other guidelines. Planning for Medicaid is quite complicated. An experienced lawyer should be consulted.

Single Premium Life Insurance: A life insurance policy may be purchased with a single large premium payment that has as a provision of the policy the ability to tap into the death benefit during your lifetime if needed to pay for long term care. It is usually advisable to have the insurance held in an irrevocable life insurance trust so that if the insured dies without having tapped into the policy, it will not be subject to estate tax. An advantage of this type of planning is that if you never tap into the policy during your lifetime, the proceeds are available as an asset to your beneficiaries. With long term care insurance, if you never require long term care, you and your beneficiaries receive no cash benefit from the premiums.

Viatical Companies: Companies now exist that will buy your life insurance policy during your lifetime and pay you close to its death benefit to use for long term care costs.

Long term care planning is complicated but necessary. If you are considering such planning you should consult your lawyer and financial planner.

Planning for long term care is a complicated task. The earlier a person plans, the more options are available. This area of the law varies from State to State and is often changed. This memorandum contains general information regarding long term care planning that, although helpful, must be discussed with a lawyer trained in this specialty of the law in your location.

A separate burial bank account or money market fund may be set up for the exclusive purpose of Funeral and Burial costs. The amount placed into this account is subject to State limitations but is exempt from consideration for Medicaid purposes.

The entire cost of a Funeral may be prepaid to a Funeral Home. Care should be followed to insure that the money is held in escrow or otherwise protected from Bankruptcy of the Funeral Home. This amount is exempt from consideration for Medicaid purposes.

Subject to limits of the value of the car, it is an exempt asset for Medicaid consideration.

This will pay for the cost of Nursing Home or at Home Care. If it fits within a person's budget, it may be a very wise way to pay for Long Term Care and protect your other assets. Policies should be scrutinized carefully to insure that they provide adequate coverage. For example, coverage for Alzheimer disease should be covered in any policy you would consider. The length of time for coverage in a nursing home generally need not be longer than five years, a period of time long enough to allow a person to make gifts upon entering a Nursing Home without violating the Medicaid five year look back period. It is important to only buy a policy that is approved by the insurance commissioner in your state. In Massachusetts and many other states individual policies are strictly regulated, but group policies are not. This does not mean that a group policy is necessarily a bad choice, but it does mean that you should carefully examine any group policy you may consider purchasing to make sure it best meets your needs.

A person buying a single premium life insurance policy gets life insurance coverage, an investment and a source of funds for long term care. A single premium payment of, for example, $50,000.00 may, depending on your age, pay a death benefit of $l50,000.00. From that death benefit amount 2% may be withdrawn per month to pay for the cost of Nursing Home Care during your lifetime. In addition, there are income tax benefits to the policy and over time its value and the death benefit increase.

Although the law in this area is undergoing particular change, they still present a good opportunity, particularly when a spouse of the Nursing Home resident still lives at home in the community, to shelter assets if the annuity meets State and Federal guidelines. If properly set up, an annuity will allow you to convert otherwise countable assets to non-countable assets for determining Medicaid eligibility without having a disqualification period.

For wealthier people a Family Limited Partnership is an effective way of reducing Estate Taxes and sheltering assets from Medicaid consideration while still being able to control the assets. The establishment of the Family Limited Partnership with gifts of interests in it to Family members is subject to the look back period disqualification.

The home may be protected from Medicaid in many ways such as transferring it to a spouse who is remaining in the community, transferring it to a care-taker child who has lived in the home for the previous two (2) years, selling the home to family members for a private annuity, selling it to children for a Promissory Note that is forgiven, and transferring of the Home subject to a Life Estate. There are tax ramifications to these options that should be considered and reviewed with your attorney before making any decision and variations of the law from State to State will affect these options.

Medicaid Law is an evolving area of the Law. Aggressive tactics may protect your property, but carry a risk of challenge by the State and of possibly not being allowed. An example of an aggressive tactic, would be a lifetime personal service contract to pay a family member for lifetime care.

These are some of the many options available to protect and shelter assets as a part of long term care planning. Always consult an experienced Lawyer in your State for guidance in long term care planning. The law is constantly changing and all of the information contained in this document must be verified to insure that it applies in your state and has not been changed.

Protection of the home, in the event of a need for nursing home care, is a primary concern of many senior citizens. Medicaid, a joint Federal and State program, is the only governmental program that will pay for the cost of long-term nursing home care. Medicaid has strict requirements as to the amount of assets a person may have and still qualify for Medicaid benefits. The principal home, however, generally is a non-countable asset for determination of Medicaid eligibility of the homeowner. Although the Division of Medical Assistance will generally not count the home as an asset for determining Medicaid eligibility, the Division of Medical Assistance is authorized by law to seek a recovery from the home as an asset for all Medicaid benefits provided to the Medicaid recipient at the later of his or her death or the death of any surviving spouse. There are a number of alternative choices available to protect the home from the State's recovery. These choices include:

TRANSFER TO HEALTHY SPOUSE: A home may be transferred without out any Medicaid disqualification from a spouse, going into a nursing home, to the healthy spouse who is referred to, in the law, as the "community spouse".

TRANSFER TO PROTECTED INDIVIDUALS: The law provides an exception from the transfer penalties for transfers to:

1. A disabled children of a homeowner;
2. A child of the Medicaid applicant who had lived in and cared for his or her parent, in that home, for at least two years prior to the parent entering into a nursing home; and
3. A sister or brother of the Medicaid applicant who is already a part owner of the home.

TRANSFER SUBJECT TO LIFE ESTATE: The home may be given away with the Medicaid applicant owner keeping a life estate, that is the right to lifetime use of the property. This option is somewhat complicated and can have some adverse income tax effects if the home is sold during the life of the life tenant.

SALE: The house may be sold to the children of the homeowner, or anyone else, in return for payment by way of a private annuity or a promissory note which can be structured to avoid any Medicaid disqualification period.

IRREVOCABLE TRUST: An irrevocable trust can protect the home from Medicaid recovery. However, the look-back period for determining disqualification from Medicaid benefits is five years so you should plan early to avoid problems.

All of the these options, and others as well, all have estate tax, control and income tax implications that must be considered in your planning. There is no one right way to plan your estate. Your estate plan must be carefully tailored to your own specific desires and needs. The earlier a person plans, the more choices there are available.

You should remember that this area of the law is constantly changing. Before taking any steps, you should consult a qualified attorney.

Anyone who has found himself or herself in the unfortunate position of being unable to pay his or her bills also has probably found himself or herself contacted by debt collectors on behalf of the creditor (the person owed the money). This is often a disheartening experience. The federal government however has recognized that debtors (the people who owe money) have rights when it comes to the collection process and has enacted the Fair Debt Collection Practices Act which is the law in all of the states. In addition many states including Massachusetts have passed their own laws supplementing the federal legislation.

A debt collector may contact you in person , by mail, by telephone or Fax. A debt collector may not however contact you at what have been deemed to be unreasonable times or places which have been defined as before eight o'clock in the morning and after nine o'clock in the evening unless you agree to be contacted at those times. A debt collector may not contact you at your job if the collector knows that your employer disapproves of such contacts.

The simplest way to stop a debt collector from contacting you is by merely notifying them in writing that you wish them to stop contacting you. By law they must abide by your decision. In addition if you are represented by an attorney, the debt collector is prohibited from contacting you directly, but rather must deal with your attorney.

The debt collector must inform you in writing of the amount alleged to be owed, to whom it is alleged to be owed and what steps you can take if you believe that you do not owe the money.

The law prohibits abusive collection practices such as threats of violence, using obscene language, telephoning you without identifying themselves as debt collectors and publishing publicly your debts.

Debt collectors may not make false statements in an effort to collect a debt. Specifically they are prevented from implying they are lawyers or government officials if they are not. They may also not send you papers that appear to be legal forms when they are not.

The law prohibits debt collectors from making you accept collect calls or contacting you by postcard.

If you believe that you are the victim of unfair debt collection you have the right to sue the debt collector in court. Your case must be filed within one year from the date the offense occurred.