Comments for Massachusetts Estate Planning, Probate & Elder Law

Comment on Why Is It Important that a Massachusetts Power of Attorney Be “Durable” and Detailed? by Don O'Clair

Don O'Clair — Wed, 11 Jan 2012 17:09:36 +0000

Nicely written; makes many of the points I usually give my clients.

Comment on Can a “Retained” Life Estate Be Eligible for a Step-up in Basis under Internal Revenue Code Section 1022? by Brian E. Barreira

Brian E. Barreira — Tue, 10 Jan 2012 21:58:10 +0000

Sorry, but this is a blog, and is not intended to give advice to anybody. You should obtain specific advice geared to your own particular situation from an estate planning lawyer in your state.

Comment on Can a “Retained” Life Estate Be Eligible for a Step-up in Basis under Internal Revenue Code Section 1022? by Marianne W

Marianne W — Wed, 28 Dec 2011 15:57:55 +0000

What happens if the life estate is relinquished before death of grantor? The house has since been sold. Can the proceeds of the sale still be included in the estate when the parent dies or are they subject to capital gains taz?

Comment on Life Estate Can Be “Retained” for Estate Tax Purposes under Internal Revenue Code Section 2036 without Being Reserved in Deed by Brian E. Barreira

Brian E. Barreira — Thu, 22 Dec 2011 00:00:10 +0000

Sorry, but this is a blog, and is not intended to give advice to anybody. You should obtain specific advice geared to your own particular situation from an estate planning lawyer in your state.

Comment on Why DOESN’T a Reserved Life Estate Get a Step-up in Basis under Internal Revenue Code Section 1022? by Brian E. Barreira

Brian E. Barreira — Wed, 21 Dec 2011 23:56:01 +0000

Yes.

Comment on Life Estate Can Be “Retained” for Estate Tax Purposes under Internal Revenue Code Section 2036 without Being Reserved in Deed by larry barsher

larry barsher — Fri, 16 Dec 2011 02:02:30 +0000

I set up a GRIT 17 years ago and on Dec 19, 2010 my home was transferred to my 2 sons. Wife & I have been paying fair market rent since then. Until the Feds decide on the exemption (which is now 5 million each) I will continue the fair market monthly rent payments.
.
If the final (permanent?) exemption is more than our net worth including the home, I think I should reduce the monthly rent down (to less than fair market rent) to where the rent equals my sons expenses etc, which means they pay no income tax on the rent income. What are the ramifications if I do this?

Based on your “Life Estate Can Be “Retained” for Estate Tax Purposes under Internal Revenue Code Section 2036 without Being Reserved in Deed” would this “less than fair market rent” put the home back into our estate after the death of my wife and I? If so then my sons get it at a stepped-up basis. This sounds to good to be true. Your comments would be greatly appreciated.

Thanks, Larry

Comment on Why DOESN’T a Reserved Life Estate Get a Step-up in Basis under Internal Revenue Code Section 1022? by Jerome Savino

Jerome Savino — Mon, 05 Dec 2011 19:57:28 +0000

Live in NYork. If you inherit a house through a conventional will, do you inherit the stepup in the value of the house so as to value the house at the time of death of the decedent?

Comment on Minimum Monthly Maintenance Needs Allowance for Nursing Home Resident’s Spouse Increased to $1,839 during 7/1/2011-6/30/2012 by Mike Torres

Mike Torres — Mon, 26 Sep 2011 17:52:14 +0000

This post seems to prove the fact that anyone can attempt to do the process on their own but it is very wise to at least get an attorney involved. There are many details that an attorney can make sure are attended to and if not taken care of, there could be dire outcomes at the end.

Mike Torres

Comment on New Massachusetts Law Allows Trusts to Be Established to Take Care of Pets by Longmont Lawyers

Longmont Lawyers — Tue, 20 Sep 2011 16:35:55 +0000

How fortunate the pets could be. I will definitely check your pettrust.info site. I think it is interesting.

Comment on Form 8939 May Eventually Be Due for Estates of Some 2010 Decedents, But the IRS Still Has Not Finalized the Form, Instructions or Due Date by Michael

Michael — Mon, 08 Aug 2011 08:39:55 +0000

What is your position on whether non resident aliens who died during 2010 are subject to estate tax?

Comment on Form 8939 May Eventually Be Due for Estates of Some 2010 Decedents, But the IRS Still Has Not Finalized the Form, Instructions or Due Date by Peter Yikes

Peter Yikes — Fri, 15 Jul 2011 14:24:49 +0000

Any update on when the IRS will finalize this form or how to opt out of the estate tax

Comment on Preserving Assets and Maximum Income for the Healthier Spouse When the Other Spouse Enters a Nursing Home by Minimum Monthly Maintenance Needs Allowance for Nursing Home Resident’s Spouse Increased to $1,838.75 during 7/1/2011-6/30/2012 « Massachusetts Estate Planning, Probate & Elder Law

Thu, 30 Jun 2011 13:39:46 +0000

[...] the community spouse has no choice but to purchase an immediate annuity with excess assets. See Preserving Assets and Maximum Income for the Healthier Spouse When the Other Spouse Enters a Nursing…. tweetmeme_url = [...]

Comment on How Does the Massachusetts Medicaid Program Treat a Sale of a Life Estate? by Jonathan

Jonathan — Tue, 28 Jun 2011 02:12:23 +0000

Great information here. Give it up!

Comment on New Massachusetts Law Allows Trusts to Be Established to Take Care of Pets by Do you have a pet? What kind of pet do you have? Why did you choose that pet? « Post A WEEK 2011 | Wordpress Challenge

Sun, 29 May 2011 15:59:03 +0000

[...] New Massachusetts Law Allows Trusts to Be Established to Take Care of Pets (elderlawblog.info) [...]

Comment on Executors of 2010 Estates Now Have Choice of Two Different Tax Laws, and Obtaining a Step-up in Basis is Much Easier by Don O'Clair

Don O'Clair — Tue, 19 Apr 2011 16:01:05 +0000

I, too, wish to express thanks for your sorting through to this latest version on this.
Even following the changes in the law, you provided a quick article about how it’s done, or what needs to be done, to get the step up in basis for a 2010 decedent (3 different articles in 2010, I believe) -Nice work.

Comment on When Are Assets in an Irrevocable Trust Eligible for a Step-up in Basis in 2010 under the Modified Carryover Basis Rules? by Brian E. Barreira

Brian E. Barreira — Thu, 31 Mar 2011 18:51:08 +0000

This blog is not meant to give legal or tax advice or as a means for the solicitation of free legal or tax advice. Please make an appointment with a qualified lawyer or CPA for your specific questions.

Comment on When Are Assets in an Irrevocable Trust Eligible for a Step-up in Basis in 2010 under the Modified Carryover Basis Rules? by Marcia Sullivan

Marcia Sullivan — Thu, 31 Mar 2011 18:01:08 +0000

More of a question. My father recently passed away and there is stock in a trust he established that we are to receive. For financial aid planning purposes, I would prefer that the trust sell the stock for me and distribute the cash to me rather than receive the stock and sell it myself. If the trust sells the stock for me is this transaction eligible for stepped-up basis or will it be subject to taxation at the trust tax rate?

Comment on What Is the Adjusted Basis of Common Stock Received from Demutualized Life Insurance Companies? by Brian E. Barreira

Brian E. Barreira — Fri, 25 Mar 2011 18:23:21 +0000

I suggest that you hire a CPA to handle this issue for you.

Comment on What Is the Adjusted Basis of Common Stock Received from Demutualized Life Insurance Companies? by Everett Clift

Everett Clift — Fri, 25 Mar 2011 02:53:44 +0000

I found your posting just in time. I am in the process of preparing my 2010 income tax return and was puzzeled over the method of determining the reportable income on the sale of stock received as a result of demutualization of John Hancock. The demutualization took place in the year 2000 which somehow involved Manulife I sold the stock in 2010 but cannot get information from John Hancock or Manulife regarding how a basis was to be determined.

Their answers were incredible! They said there was no basis and had no explanation on how the value of my shares were determined. My response was, “well then, why not send me a million dollars if there is no basis.”

My question now is, how do I report the income and on what form? Do I use: the capital gains form schedule D, supplemental Income schedule E or just throw it in the mix somewhere?

Sincerly yours,
(but puzzled)

Ev Clift

Comment on Executors of 2010 Estates Now Have Choice of Two Different Tax Laws, and Obtaining a Step-up in Basis is Much Easier by BOBBY RING

BOBBY RING — Wed, 02 Mar 2011 00:00:19 +0000

FOR A 2010 ESTATE, THE OPTION TO USE THE 2011 ESTATE LAWS SEEMS TO WORK VERY WELL. MY ONLY QUESTION WOULD BE IS ANYTHING REQUIRED TO BE FILED? WHAT DOES THE EXECUTOR NEED TO DO TO ESTABLISH THE STEP-UP BASIS AND PROVIDE THIS INFORMATION TO THE BENEFICIARIES. WHAT WILL SATISFY THE IRS IN FUTURE YEARS WHEN THE BENEFICIARIES BEGIN TO USE THE ASSETS OF THE ESTATE.

THANKS FOR YOUR HELP. GREAT ARTICLES SO FAR ON THIS MATTER

Comment on Internal Revenue Service Releases 12/16/2010 Advance Proof Copy of Form 8939 Required for Step-up in Basis for 2010 Deaths by American Bar Association Sections Comment On Draft Form 8939 - Hani Sarji - Estate of Confusion - Forbes

Tue, 01 Mar 2011 02:42:24 +0000

[...] E. Barreira, Internal Revenue Service Releases 12/16/2010 Advance Proof Copy of Form 8939 Required for Step-up in…, Massachusetts Estate Planning, Probate & Elder Law, Dec. 16, 2010 (“Until we see specific [...]

Comment on Using a Charitable Remainder Annuity Trust to Pay for Long Term Care Insurance by Wyatt

Wyatt — Sat, 26 Feb 2011 20:14:07 +0000

Actually hard to find well-informed persons for this matter, you seem like you understand what you are dealing with! Thx

Comment on Massachusetts Supreme Judicial Court Rules Favorably on Validity of Postnuptial Agreements by Mark Boyer

Mark Boyer — Tue, 15 Feb 2011 16:37:17 +0000

Is there anything new on the ramifications of this decision and whether there is any one who might have more information/opinions on “limited post-nuptial agreements” that cover estate planning issues only. I do not have access to the Advanced Legal Seminar with Attorney Lee and Professors Sandoe and Kindregan.

Thank you

Comment on Executors of 2010 Estates Now Have Choice of Two Different Tax Laws, and Obtaining a Step-up in Basis is Much Easier by b hadsel

b hadsel — Tue, 15 Feb 2011 05:18:25 +0000

Hello. I just wanted to thank you so much for providing this article on your blog. I spent most the day on the phone with the IRS; the representatives tried their best but could not answer questions relating to the 2010 basis of the property I inherited from my mother. They kept mentioning publication 4895. This publication is not available now on the IRS website and they had no idea when it would be. Thanks to your information I am reassured that I can use the automatic step-up in basis on my 1040 schedule D!

Comment on Preserving Assets and Maximum Income for the Healthier Spouse When the Other Spouse Enters a Nursing Home by Are You Personally Responsible for Your Spouse’s Nursing Home Bills in Massachusetts? « MassHealth: Medicaid in Massachusetts

Mon, 07 Feb 2011 13:58:59 +0000

[...] For some basic information about the at-home spouse’s ability to retain assets under MassHealth (i.e., Medicaid) law, see http://elderlawblog.info/2010/04/05/preserving-all-assets-and-maximum-income-for-the-community-spous... [...]

Comment on Using Reserved Special Powers of Appointment in Medicaid Planning by World Spinner

World Spinner — Mon, 31 Jan 2011 04:29:04 +0000

Using Reserved Special Powers of Appointment in Medicaid Planning ……

Here at World Spinner we are debating the same thing……

Comment on Using Reserved Special Powers of Appointment in Medicaid Planning by Dui Massachusetts Law

Dui Massachusetts Law — Sun, 30 Jan 2011 07:55:42 +0000

[...] Using Reserved Special Powers of Appointment in Medicaid Planning … [...]

Comment on Using Reserved Special Powers of Appointment in Medicaid Planning by Using Reserved Special Powers of Appointment in Medicaid Planning

Using Reserved Special Powers of Appointment in Medicaid Planning — Sat, 29 Jan 2011 12:42:35 +0000

[...] this article: Using Reserved Special Powers of Appointment in Medicaid Planning Related Posts:“In re BENTON. SMITH v SMITH.” | 73 WireA Genealogy Hunt | Part 407s – Smith [...]

Comment on Preserving Assets and Maximum Income for the Healthier Spouse When the Other Spouse Enters a Nursing Home by Minimum Monthly Maintenance Needs Allowance for Nursing Home Resident’s Spouse Stays Unchanged through June 30, 2011 « MassHealth: Medicaid in Massachusetts

Fri, 28 Jan 2011 01:52:02 +0000

Comment on Appealing Medicare Denials Caused by “Plateauing” by Suzanne

Suzanne — Fri, 28 Jan 2011 01:11:20 +0000

Brian, I operate a contract rehab company where we only provide PT, OT, and/or ST, in SNFs. I will frequently hear therapists comment that Med B (LTC) census is low because it will be difficult to show progress and Medicare will deny payment. I am an OTR and a strong patient advocate. i know there is always something I can do to facilitate increased function and quality of life with just about any patient/resident of a SNF. Could you provide me with any additional information related to the comment above? For example, for someone with RA or another progressively debilitating disease, it is accepetable by Medicare standards that therapy continue (Not as a maintenance program, but more of incremental gains)? Any information or guidance will be greatly appreciated.

thank you
suzanne

Comment on Life Estate Can Be “Retained” for Estate Tax Purposes under Internal Revenue Code Section 2036 without Being Reserved in Deed by Marcus

Marcus — Wed, 12 Jan 2011 16:49:10 +0000

My mother passed away in 2010. Our lawyer indicated to us that this new law does not pertain to our situation.

Our family farm was in my Dad’s name only. When he died in 1977, the farm was inherited by the children. My Mom was given the right to the income for as long as she lived through a life estate that became effective upon his death. She never owned the farm. In 1978, she paid a large inheritance tax on behalf of the children. When she died, the children gained control of the farm. The farm was sold in 2010 soon after her death. The difference between the 2010 value and the 1977 value became a capital gain. The tax laws in 2010 had no bearing on this outcome. A capital gain was to be recognized regardless of which year she died.

If my Mom had jointly owned the farm at the time of his death, she would have received full ownership of the farm without having to pay any inheritance tax in 1978. Then when she died, the life estate could have been rescinded. With the farm in her estate, the value of the farm could have been stepped up. Estate taxes and capital gains taxes would have both been avoided.

Comment on Life Estate Can Be “Retained” for Estate Tax Purposes under Internal Revenue Code Section 2036 without Being Reserved in Deed by Julie G. Kling, Esq.

Julie G. Kling, Esq. — Tue, 11 Jan 2011 20:13:05 +0000

I represent the executor of a decedent who died in 2010. I believe we have a strong case , based upon your information, for a “retained” life estate and consequently a step-up in basis(which my client hopes to attain). Of course, a Federal Estate Tax return is unavailable for 2010. My question is how to obtain the step-up when the gross taxable estate does not reach the threshold amount for filing?

Comment on Internal Revenue Service Releases 12/16/2010 Advance Proof Copy of Form 8939 Required for Step-up in Basis for 2010 Deaths by Dennis C Butler

Dennis C Butler — Wed, 05 Jan 2011 16:59:10 +0000

Can we get the instructions for this form? I just came from a seminar
and they said that the $5,000,000.00 at 35% was retroactive back to
Jan 1 2010, and that we will have an option on which way to go. I’m not sure that I agree with that statement.

Comment on Traps for the Unwary Regarding the Modified Carryover Basis Rules for 2010 Deaths by Carolyn Strautman

Carolyn Strautman — Wed, 29 Dec 2010 16:34:42 +0000

Brian: Will the executor be required to obtain appraisals on any real property for which the step-up in basis is claimed on Form 8939, or will a broker’s opinion of value suffice?

Also, I believe there is a 2-year time limit (from the DOD) for a surviving spouse to use the deceased’s share of the Section 121 gain exclusion on sale of their principal residence.

Thanks,
Carolyn

Comment on New Form 8939 Required to Be Filed with the Internal Revenue Service for Step-up in Basis for Estates of Persons Who Die During 2010 by Daniel

Daniel — Fri, 17 Dec 2010 08:28:32 +0000

great post, thanks for sharing

Comment on Internal Revenue Service Releases 12/16/2010 Advance Proof Copy of Form 8939 Required for Step-up in Basis for 2010 Deaths by What Are the Mechanics of Obtaining a Step-up in Basis in 2010 under Internal Revenue Code Section 1022? « Massachusetts Estate Planning, Probate & Elder Law

Thu, 16 Dec 2010 20:42:46 +0000

[...] DOESN’T a Reserved Life Estate Get a Step-up in Basis under Internal Revenue Code Section 1022?Internal Revenue Service Releases 12/16/2010 Advance Proof Copy of Form 8939 Required for Step-up in…When Are Assets in an Irrevocable Trust Eligible for a Step-up in Basis in 2010 under the Modified [...]

Comment on Internal Revenue Service Releases 12/16/2010 Advance Proof Copy of Form 8939 Required for Step-up in Basis for 2010 Deaths by New Form 8939 Required to Be Filed with the Internal Revenue Service for Step-up in Basis for Estates of Persons Who Die During 2010 « Massachusetts Estate Planning, Probate & Elder Law

Thu, 16 Dec 2010 20:36:41 +0000

Comment on Internal Revenue Service Releases 12/16/2010 Advance Proof Copy of Form 8939 Required for Step-up in Basis for 2010 Deaths by Internal Revenue Service Has Gone Back to the Drawing Board on Form 8939 « Massachusetts Estate Planning, Probate & Elder Law

Thu, 16 Dec 2010 20:33:52 +0000

Comment on Traps for the Unwary Regarding the Modified Carryover Basis Rules for 2010 Deaths by Internal Revenue Service Releases 12/16/2010 Advance Proof Copy of Form 8939 Required for Step-up in Basis for 2010 Deaths « Massachusetts Estate Planning, Probate & Elder Law

Thu, 16 Dec 2010 20:29:14 +0000

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Comment on What Are the Mechanics of Obtaining a Step-up in Basis in 2010 under Internal Revenue Code Section 1022? by Internal Revenue Service Releases 12/16/2010 Advance Proof Copy of Form 8939 Required for Step-up in Basis for 2010 Deaths « Massachusetts Estate Planning, Probate & Elder Law

Thu, 16 Dec 2010 20:15:59 +0000

[...] What Are the Mechanics of Obtaining a Step-up in Basis in 2010 under Internal Revenue Code Section 1… [...]

Comment on When Is an Asset Considered “Acquired from the Decedent” under Internal Revenue Code Section 1022? by Internal Revenue Service Releases 12/16/2010 Advance Proof Copy of Form 8939 Required for Step-up in Basis for 2010 Deaths « Massachusetts Estate Planning, Probate & Elder Law

Thu, 16 Dec 2010 20:15:56 +0000

[...] When Is an Asset Considered “Acquired from the Decedent” under Internal Revenue Code Section 102… [...]

Comment on Can a “Retained” Life Estate Be Eligible for a Step-up in Basis under Internal Revenue Code Section 1022? by Internal Revenue Service Releases 12/16/2010 Advance Proof Copy of Form 8939 Required for Step-up in Basis for 2010 Deaths « Massachusetts Estate Planning, Probate & Elder Law

Thu, 16 Dec 2010 20:15:52 +0000

[...] Irrevocable Trust Eligible for a Step-up in Basis in 2010 under the Modified Carryover Basis Rules?Can a "Retained" Life Estate Be Eligible for a Step-up in Basis under Internal Revenue Code Section …What’s So Bad about Probate? [...]

Comment on When Are Assets in an Irrevocable Trust Eligible for a Step-up in Basis in 2010 under the Modified Carryover Basis Rules? by Internal Revenue Service Releases 12/16/2010 Advance Proof Copy of Form 8939 Required for Step-up in Basis for 2010 Deaths « Massachusetts Estate Planning, Probate & Elder Law

Thu, 16 Dec 2010 20:15:49 +0000

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Comment on Are All Revocable Trusts Eligible for a Step-up in Basis under the Modified Carryover Basis Rules? by Internal Revenue Service Releases 12/16/2010 Advance Proof Copy of Form 8939 Required for Step-up in Basis for 2010 Deaths « Massachusetts Estate Planning, Probate & Elder Law

Thu, 16 Dec 2010 20:15:46 +0000

[...] Are All Revocable Trusts Eligible for a Step-up in Basis under the Modified Carryover Basis Rules? [...]

Comment on Which Powers of Appointment Are Eligible for a Step-up in Basis in 2010 under the Modified Carryover Basis Rules? by Internal Revenue Service Releases 12/16/2010 Advance Proof Copy of Form 8939 Required for Step-up in Basis for 2010 Deaths « Massachusetts Estate Planning, Probate & Elder Law

Thu, 16 Dec 2010 20:15:42 +0000

[...] Which Powers of Appointment Are Eligible for a Step-up in Basis in 2010 under the Modified Carryover… [...]

Comment on More about Whether Life Estates Are Eligible for a Step-up in Basis in 2010 by Internal Revenue Service Releases 12/16/2010 Advance Proof Copy of Form 8939 Required for Step-up in Basis for 2010 Deaths « Massachusetts Estate Planning, Probate & Elder Law

Thu, 16 Dec 2010 20:15:39 +0000

[...] More about Whether Life Estates Are Eligible for a Step-up in Basis in 2010 [...]

Comment on Why DOESN’T a Reserved Life Estate Get a Step-up in Basis under Internal Revenue Code Section 1022? by Internal Revenue Service Releases 12/16/2010 Advance Proof Copy of Form 8939 Required for Step-up in Basis for 2010 Deaths « Massachusetts Estate Planning, Probate & Elder Law

Thu, 16 Dec 2010 20:15:36 +0000

[...] Why DOESN’T a Reserved Life Estate Get a Step-up in Basis under Internal Revenue Code Section 1022… [...]

Comment on Questions and Answers about Declarations of Homestead in Massachusetts by More Questions and Answers about Declarations of Homestead in Massachusetts « Massachusetts Estate Planning, Probate & Elder Law

Thu, 16 Dec 2010 17:21:07 +0000

[...] of Homestead has never been very clear. Having already answered some typical questions in http://elderlawblog.info/2010/04/20/questions-and-answers-about-declarations-of-homestead-in-massach…, here are some other questions I’ve been asked by clients during our [...]

Comment on Internal Revenue Service Has Gone Back to the Drawing Board on Form 8939 by Save Home From Foreclosure

Save Home From Foreclosure — Wed, 15 Dec 2010 13:45:11 +0000

Where To Find The Most Useful Home Foreclosure Listings…

Checked ou your blog and linked back with a trackback I like it so much!…

Comment on Fitting Tax Planning and Immediate Annuities into Last-Minute Medicaid Planning by Jamie Iomo

Jamie Iomo — Tue, 07 Dec 2010 23:24:57 +0000

Hello

Thanks for sharing, I have digged this post