Klitzman Law Group, PLLC

ABLE Accounts to Open This Summer

Almost two years after federal legislation was passed to make it easier for people with a disability to save money without losing federal benefits, the first programs that enables people to take advantage of the law are about to go into effect.

As every family with a child of special needs knows it can be very difficult for a person with disabilities to open up an account to save money and not make himself or herself ineligible for benefits. In an effort to make it easier Congress passed the Achieving a Better Life Experience Act (ABLE) in 2014.

The Act allows people with a disability to put up to $100,000 in state based accounts without losing Social Security benefits. An unlimited amount may be put into the accounts without fear of losing Medicaid benefits.

So far no one has been able to take advantage of the Act because it requires states to pass laws and regulations to oversee the programs.

Disability Scoop reports in "First ABLE Accounts Expected This Summer" that Nebraska has announced that its program will begin on June 30, 2016. Ohio has not announced a launch date, but it might begin its program even sooner. Florida and Virginia are also expected to open their programs this year.

In good news for all people with a disability, Ohio, Nebraska and Virginia are not limiting their programs to state residents. Anyone in the country can enroll.

As the programs are expected to vary between states, people might want to go ahead and enroll in one of those three states. The accounts can later be rolled over to another state if a better program opens up.

An estate planning attorney should be consulted for advice on dealing with potential restrictions on ABLE accounts and the possible use of a special needs trust.

 

Prisoner Claims to be Prince's Son

A federal prisoner in Colorado claims that he is the sole heir of the musician Prince according to paperwork filed by his attorney in court.

While the musician Prince is not known to have had any children, it is expected that many people will claim to be descended from the musician. Naturally, this is due to the vast size of his estate and the fact he did not create an estate plan.

If anyone can prove that he or she is the sole child of Prince, they would inherit the entire estate under Minnesota's laws of intestate succession.

Carlin Q. Williams, an inmate in federal prison in Colorado, has filed paperwork through an attorney claiming the he is a child of Prince. Williams claims his mother had a one night stand with Prince in Kansas City in 1976 before the musician became nationally famous. His mother claims that she knows Prince is the father of her son because she did not have sex with anyone in the weeks before her encounter with Prince nor did she have sex with anyone afterwards until giving birth.

CNN reported this story in "Prince estate: Colorado inmate says he is singer's son, sole heir."

Williams is unlikely to be the only person who makes a claim to be the child of Prince.

In anticipation of such claims, the court ordered that a blood sample taken for the musician's autopsy be used for DNA testing to make any claims easier to prove or disprove. It is unknown if and when Williams will undergo a DNA test.

 

Trustee Still Seeks Madoff Funds

While Bernie Madoff might be disgraced and in prison others still might have to pay for his crimes. Currently, the estates of his two sons are being asked to.

Both of the sons of convicted Ponzi scheme felon Bernie Madoff have passed away. One committed suicide and the other passed away from cancer.

Before their deaths, however, they were sued by the trustee who is in charge of reclaiming funds for Madoff's victims, Irving Picard. Because the suits were not settled, the sons' estates have to defend the lawsuits.

As Bloomberg reports in "Madoff Sons' Fight Over Cash Endures Long After Their Deaths," Picard has gone back to court in an attempt to force the estates to pay the $150 million he claims the sons improperly received as the result of their father's fraud.

The estates claim that Madoff's sons were not a part of the scheme and that when their father confessed to them they went to the authorities. The money they earned while working for their father's business was earned from legitimate enterprises.

The estates also claim that the Trustee had a chance to press his claims in a related case in the United Kingdom and is now trying to get a second bite of the apple. Picard claims that the case in the U.K. was different in scope and that he did not participate in it. He also claims that the son's knew about and profited from their father's scheme.

It can take a long time to close an estate, especially when there are heavily contested claims against it that are potentially worth great sums of money, as this case illustrates.

 

Prince Inspired Legislation

The death of musician Prince has inspired his home state's legislature to consider a new law in his honor and to protect his legacy.

So far 17 states have explicit laws that protect a person's name, image and likeness after death, known as right to publicity laws. These laws provide that a celebrity's image can be controlled by his or her estate and prevent its use by others for commercial purposes.

Minnesota is not one of those 17 states, which creates an issue for the estate of Prince.

Without such a law, it is possible the scope of his estate's rights to control his publicity would be the subject of litigation.

WDAZ reports, in an article titled "PRINCE Act appears in Minn. Legislature," that Minnesota is rushing to consider the Personal Rights In Names Can Endure Act to protect the musician's rights to publicity.

The law inspired by the musician would protect people's names, photographs, likenesses, voices and signatures for up to 50 years.

While passing this law might seem like an easy call, there is a potential downside for Prince's estate.

As Michael Jackson's estate is discovering, if a celebrity's publicity rights have value, then the IRS can seek to collect estate taxes on that value. The value of Jackson's publicity rights are at the center of his estate's dispute with the IRS.

In Prince's case, he apparently did not have a will or any other form of estate plan when he died. That means none of his estate is protected from the estate tax.

Winning this particular battle to protect Prince's publicity could actually cost the estate millions of dollars should the IRS seek to collect estate taxes on the value of the publicity rights.

Not having an estate plan will make Prince's estate difficult to administer. An experienced estate planning attorney can help you create your legacy and ensure that your wishes are carried out correctly.

 

Right to Die Begins Soon in California

A new California law that will make it the largest state so far to allow physician assisted suicide is about to go into effect.

On June 9, 2016, California will become the fourth state to allow doctors to assist terminally ill patients to commit suicide. Beginning on that date, residents of California can request a lethal prescription from their doctors.

The doctors must follow guidelines before prescribing the medication, but that has not stopped any controversy about the law.

Doctors and hospitals are allowed to opt out of providing the service and many have already done so according to the Sacramento Bee in "A better way to die? California's end-of-life law launches June 9."

Oregon, Washington and Vermont are the only other states with similar laws often called "Right to Die" laws.

Elder law advocates are often torn about these laws.

Many argue that terminally ill patients have a right to die with dignity and should be allowed to end their own lives when they want to instead of when a disease takes its final course. Physician assisted suicide allows people to pass away in the presence of their loved ones.

On the other hand, many believe these laws could potentially be abused if terminally ill elderly people are manipulated into suicide by the unscrupulous.

One thing is certain. Look for other states to confront pressure regarding whether to pass a similar law. Consequently, people who feel strongly one way or another should pay attention to what their legislatures might be up to.

Why Some Musicians Succeed after Death

After a musician passes away you can never be certain what will happen to his or her legacy. Some musicians continue to be very successful commercially. Their estates continue to grow. Other musicians fade into obscurity.

It is tempting to think that what happens to a musician's legacy after he or she passes away is a matter of luck.

Some musicians slowly fade from memory. Their albums stop selling. Books about them are not written. Movies are not made about their lives. While other musicians' estates make vast fortunes.

If it is not attributed to luck, then perhaps it is attributed to some vague notion of artistic greatness. The truth, however, might be a bit more practical and not coincidental. In fact, there might not be any mystery at all.

No, the postmortem success of deceased musicians may come down to what contributed to their success during life – good management.

The Guardian recently published an article about Jeffrey Jampol, "'This is the pop culture legacy business': JAM Inc manages artists after death."

While not a household name himself, Jampol manages the business of many musicians who are household names, deceased musicians. For example, Jampol manages the legacy of Otis Redding, Kurt Cobain and Janis Joplin as well as many more.

As the article notes, Jampol employs a careful strategy designed to enhance the legacy of the musicians he represents. It is his management strategy that keeps these musicians' legacies alive.

This highlights an important concept for all estates, not just the estates of famous musicians. Estate management is an important issue for anyone who wants to leave a legacy.

It is important to have the right people in charge of the estate to make sure that the legacy is handled appropriately.

 

Talk to the Doctor about End of Life Care

Doctors can now receive reimbursement from Medicare for talking to their patients about end of life medical care. The conversation should not be one-sided nor should it be the only end of life conversation people have.

A recent article in the Washington Post, entitled "When a doctor and patient disagree about care at the end of life," is an interesting look at the interaction between one doctor and his elderly cardiac patient.

The doctor's chart indicated that the patient did not wish to be resuscitated in the event of a cardiac arrest. When the doctor asked the patient to confirm this, the patient responded that he did want to be resuscitated. The doctor then essentially tried to talk the patient out of the change explaining that given his age and health resuscitation was unlikely to work.

The patient got his way of course, and the doctor changed the chart. However, the patient went away angry.

These conversations between doctors and patients about end of life care are very important, but they cannot be one-sided. Doctors need to listen to patients and understand the reasons that patients have for their preferences. In this story, the doctor was able to do that during the patient's next visit.

Another lesson that should be taken away from the story is something the author does not state.

These conversations should be had with family members and estate planning attorneys before the patient even has the opportunity to have the conversation with the doctor. People should make their end of life preferences known by getting living wills and health care powers of attorney.

Living Will, Health Care Power of Attorney, Estate Planning