Monthly Archives: February 2013

Consider Long Term Care in your Estate Plan

  LucyThe idea of the fiscal-cliff has taken over the country with an increasing intensity about whether or not the deficit and debt will be reduced quickly enough. Many people fear, however, that this decision will be made without consideration for our retirees, veterans, elderly and disabled citizens.

The fear is that the long-term care costs will knock many people off of their own fiscal cliff. Congress has been surrounded by industry lobbyists that have been liberally dispensing their generosity to Congressmen for the last few months. These lobbyists have also been assembling a campaign to have the friendly congressmen dismantle the social and medical safety nets that are currently available to senior, veterans and disabled citizens through the federal Social Security, Medicare, Medicaid and VA programs.

Long-term care insurance does make a lot of sense to consider, according to the 2012 MetLife Market Survey of nursing Home, Assisted Living, Adult Day Services and Home Care Costs, including:

  • There is a 70 percent chance that one person in a couple turning 65 will need long-term care.
  • For people over 75, 65 percent already need long-term care.
  • By 85 years, 97 percent of people need long-term care.
  • An average nursing home stay is three years.
  • The average cost of a semi-private room in a Southern Illinois nursing home in 2012 was $152 per day and the cost for a private room was over $360 a day.
  • Assisted living is between $2,675 per month to about $5,300 a month.
  • Lastly, home health costs in 2012 ranged from $17-$28 per hour for home health aides and homemaker services ranged from $16-$25 per hour.

With these prices, long-term insurance may be worth considering. With long term care costs only going up and a high potential for federal benefits to become limited, estate planning is more important than ever. Estate planning attorneys at The Law Office of Cynthia Hayes Hutchins can help you relieve the stress with planning for long term care costs. Let Cynthia Hayes Hutchins help you today.

Determining The Need For a Trust

Determining The Need For a Trust IMAGE

There is plenty of legal jargon when it comes to estate planning, and the difference between a trust and a will is often confused. A will, according to CNN Money Magazine, “governs the distribution of nearly everything in your estate.” A trust, on the other hand, deals with specific assets, “such as life insurance, or a piece of property.” While the idea of drawing up a trust may seem like something that is only necessary for very wealthy families or real estate magnates, that’s not so. According to a different CNN Money Magazine article, a trust is useful if your family has a net worth of at least $100,000 and meet one of the following conditions:

  • you have some real estate holdings, money invested in business, or money invested in fine art
  • you think it’s best that your belongings be stratified upon distribution to your heirs—that is, they don’t receive everything at once, or you want to set parameters (ie: they’ve graduated from college first, etc.)
  • you want your surviving spouse to be taken care of, but you want the majority of your assets to be left to your children after your spouse dies
  • you’d prefer to maximize estate-tax exemptions
  • you’d like to provide for a disabled relative without disqualifying him or her from Medicaid or other governmental assistance

There are several different types of trusts. According to the National Association of Financial and Estate Planning, one such trust is an IRA Checkbook Control Trust, “a special purpose trust which is either fully or partially owned by a self directed individual retirement account.” This can be useful if your retirement savings are in an IRA, of which very few permit direct ownership of real estate or other non-traditional investments.

Determining the best estate plan for you is a complicated process, and is best figured with the help of a qualified estate-planning attorney. Contact a dedicated Illinois estate-planning attorney today.

Image courtesy of FreeDigitalPhotos.net

Ray Charles’ Children Win Legal Battle to Reclaim Song Copyrights

Ray CharlesSeveral of late singer Ray Charles’ children have won their legal battle to reclaim the copyrights on 60 of the entertainer’s most famous songs. A lawsuit filed by the Ray Charles Foundation attempted to block his children’s’ right to ownership.

In 1976, a revision to the Copyright Act gave authors the ability to reclaim their works assigned to publishers after a certain period of time. However, works “made for hire” cannot be reclaimed. If an author is deceased, then the heirs of the estate are allowed to recover works.

In 2010, seven of Charles’ twelve children filed termination to reclaim ownership of the 60 compositions from Warner/Chappell Music. Warner/Chappell did not challenge the validity of the termination notices. The Ray Charles Foundation did, however, because it reaps royalties from the copyrighted music.

According to a report in Variety, the judge would not rule on whether or not the songs were “made for hire” but instead wrote that “because the foundation is not a grantee of the rights to be terminated or its successor, Congress did not even require the statutory heirs provide it with statutory notice of the termination, let alone give it a seat at the table during the termination process.”

The foundation was also claiming breach of contract, claiming that in 2002, the children entered into an agreement with their father under which he set up a $500,000 trust for each of them and they waived “any right to make a claim against his estate.” The judge ruled that the termination notices were not claims against the estate because the estate had been probated and closed in 2006, prior to the notices being sent out. Therefore, there was no breach of contract.

Foundations, trusts, and any other estate planning issues can be very complicated and through knowledge of the law is important. Make sure you consult with a qualified Illinois estate attorney for all your estate planning needs.