Spring greetings, everyone - It's so good finally to say those words that I'm tempted to leave it at that!
Well, not quite actually, because I want to let you know that we're continuing with our annual Spring tradition of showing a FREE legally-oriented movie at the Peterborough Community Theatre on Saturday, April 4, at 10:00 a.m.
We started this series 10 years ago to commemorate the death of Harper Lee by showing "To Kill a Mockingbird", the movie based on her Pulitzer Prize-winning novel. We're showing it again this year to honor the memory of Robert Duvall, who recently died and whose first movie role was as the iconic Boo Radley. I'm not going far out on a limb by saying that there's no movie based on personal integrity and human decency that surpasses this one - and even has a lawyer as its central figure! Whether you've seen this film many times - or not even once yet - please join me for the kind of uplifting experience we all need at this very precarious moment.
And while I'm at it, here are a couple of legal comments that may also help out.
There's a significant new residential real estate rule that's been adopted by FinCEN, the federal Financial Crimes Enforcement Network. It requires that all residential transactions - involving homes, condominiums, apartment buildings (with 1-4 units), even vacant land capable of residential development - to any kind of entity - trust, LLC, corporation, etc. - that is not financed through financial institutions - be accompanied by long disclosure forms completed by both parties (even if they are gift transfers without money changing hands), unless they are specifically exempted from such filings. And in my opinion the information that must be provided is both extensive and highly personal and invasive - not to mention that it will likely add to the cost of most transactions to have a professional person complete and upload the forms to the appropriate office.
For most of us, the key exemption is for transfers from individual owners to the trusts they establish for estate planning purposes; that is, to avoid the need for probate administration to transfer those properties to their beneficiaries. The problem is that if you're buying and paying cash for, say, a second home or undeveloped land on which to build a new home, those transactions are subject to the new reporting requirements. So, here's the apparent work-around: When you first acquire the new property, take title to it in your personal names - not in the name of your trust. Then, once that transaction is completed, execute a new deed to your estate planning trust, using the exemption for that kind of transfer. It seems ridiculous that the solution could be this simple; however, I'm sure there will be many parties who don't bother with this second step and who end up completing all the forms and paying the additional cost of having someone prepare and file the forms for them.
One more thing this time. With 60 becoming the new 40 (or less even) and with more people getting married or remarried at post-childrearing ages, there are more and more prenuptial agreements being used to protect the newlyweds' assets from claims by the other partner in the event of a later divorce or death. However, the overlooked issue is that of liability for payment of the other spouse's elder care expenses, such as those for assisted living or nursing home facility costs. That is, while a prenuptial agreement may deal effectively with claims by one spouse against the other (or the other's estate), they have no impact on whether one spouse may have to use his or her assets to care for the other spouse's medical or health care needs. So, please keep that factor in mind before making a final decision about a senior marriage. It may be entered into with the best of intentions and commitment, but it may also have unanticipated consequences that could be avoided by a relationship that doesn't include tying an official knot. The latter would certainly permit voluntary payments toward the other party's health care, but wouldn't impose unforeseen expensive legal requirements.
OK, enough said this time. I hope some of this may help you or your family members, though I'm certain that joining me for "To Kill a Mockingbird" will help restore your somewhat shaken faith in human goodness and decency. That I can be sure of.
Best wishes, Phil