Elon Musk of Tesla was asked to fund a six-billion-dollar donation to the UN to address world hunger. He agreed to give provided they presented him with an acceptable detailed plan on how it was to be accomplished. Even such a large gift (2% of his estimated wealth) would not be a permanent solution. Solving world hunger, the effects of poverty, disease, and natural disasters not to mention research and long-term care require on going contributions from all who have means to give. We are all part of the solution and better for the sacrifice of time, change, small one time or regular donations, or a legacy after death thru a will or trust, land, life insurance or an annuity. As an estate planner I encourage my clients to consider gifting through their wills or as part of a trust. There is no limit on estate tax deductions that can be taken for charitable bequests.

Donors age 70 ½ and older may direct lifetime distributions from a traditional or Roth IRA to a nonprofit that counts toward your taking of the required minimum distribution. You effectively bypass income tax on the contribution! You can also avoid estate taxes with death time distributions to nonprofits. The cap for a death time retirement plan contribution is $100,000. There is no charge to update a beneficiary designation form if you decide to add a charity as one of you beneficiaries. These designations can be separate from your will or trust.

Creating a charitable gift annuity or a testamentary charitable remainder trust lets the non-spousal beneficiaries (i.e., children and other issue) of your IRA receive fixed payments of over a longer span of time than the 10-year distribution required by Congress as of January 1, 2020.

If you make a gift of stocks, bonds, and mutual funds you receive an immediate tax deduction for the fair market value on the date of transfer to the nonprofit with no capital gains! You can gift to a specific nonprofit and designate a particular project you like.

When gifting a paid-up life insurance policy, you receive an immediate tax deduction for the cash value of the policy. You have satisfaction knowing you made a significant gift without it affecting your cash now.

Likewise, you can gift a vacation home, commercial building, or undeveloped land. The IRS requires an independent appraisal to establish fair market value and there are additional IRS procedures. If interested check it out online. With these kinds of real property gifts, you can give up to 30% of your adjusted gross income and carry the deduction forward for up to five years. Good news after the gift you are free of property taxes, insurance, maintenance costs AND CAPITAL GAINS TAXES.  You can also keep a lifetime interest and pass the property at death via a life estate deed.

Some fun gifting ideas I have noticed this year are The Church of Jesus Christ of Latter-day Saints donation machines – it is like putting money in for a candy bar, but instead you buy a pair of gloves for a homeless person. They are also promoting The Light the World with Love Campaign that encourages you to do some act of kindness each day from December 1st until Christmas. You can find this online at LighttheWorld.org. I have a sign in my kitchen that reads “Kindness Begins with Me.”  And I believe it does.

I really like buying a cow, goat, some rabbits, or chickens for a family who then learns to raise animals for their milk or meat at Heifer International and eventually they earn enough to sell the excess and further their self-sufficiency. Oh, and it’s just not Christmas without something for children. Over the years we have been involved through various programs – Secret Santa, Angel Trees, the Smile Train, Make a Wish, and Toys for Tots. This year our ladies’ group at church made fleece blankets for at risk children.

I practice elder law and my office fills shoe boxes with small gifts for home bound seniors through our local programs on Aging.

I read a book a few years back titled Christmas Jars and started saving all my change to give jars of coins at the holidays to whoever my heart directs. I see people all around who need to be lifted with a little cash.

Here’s the final tip: Count your blessings at Thanksgiving.  I do which always opens my heart to prepare for Christmas.

DISCLAIMER: The information given in this article is of a general nature and does not create an attorney-client relationship. You should always consult with an attorney one-on-one regarding the specific facts of your situation. November 2021

WRITTEN BY LINDA KNAPP

You may reprint this article with my permission by showing the Firm’s name and attaching my contact information. If you wish to cite the article you must give full credit to the author, Attorney Linda Farron Knapp. Nothing in this article creates an attorney-client relationship. When the article was written it was good law, that may not be situation at the time of reprint. We advise you seek competent legal advise based on your own factual situation before relying or acting on any legal material you read online.

A simple way to avoid probate is to give away property during your lifetime.  But there can be consequences because you lose control and cannot recover the item, cash or property just by asking.  The new owner has to agree to return something to you or even use funds for your benefit.  You should only give away what you can spare. Gifting over $15,000 per person in a year requires you to file a gift tax return with the IRS.

A second thing you can do is to make an asset payable on death.  An example is life insurance, an IRA, a 401k, or an annuity.  As long as you don’t name your estate or fail to name any beneficiary the property will pass outside of probate to the person you designate.  You should name a contingent beneficiary in case the first person you select predeceases you.

Likewise you can use payable-on-death (POD) accounts.  These are also sometimes called multiparty accounts.  POD accounts do not provide the beneficiary with immediate access to your financial accounts, such as checking and savings accounts.  The funds are given to the named beneficiary after you die.  With a multiparty account the other person on the account can have immediate access while you are alive and after you die it belongs to the other person and does not pass thru probate.  This can be a useful way for loved ones to have quick access to funds to pay for funeral expenses, last bills, and even support themselves.

Similar tools are called transfer on death (TOD) accounts used for stocks, bonds and other securities.  Some states do not allow this form of designation, but South Carolina does.

Joint ownership with right of survivorship or a life estate are often used with real property, vehicles, and mobile homes to avoid probate.  These types of ownership create various rights and limitations such as needing the other owner’s permission to mortgage the property or sell it.   You need to understand the drawbacks before creating any changes to your real property.  This change in title is a gift and subject to the five-year-look-back-period for Medicaid eligibility.

Living trusts have grown in popularity because they avoid probate and let you retain control as long as you are competent.  These kinds of trusts can hold your real property in multiple states, including time shares.  Said trusts can also hold household goods, vehicles, cash, accounts, etc.  They can work in conjunction with some of ideas above.

Do not act on any of these ideas if you feel pressured by someone or are confused.  You should consult with an elder law attorney well versed in Medicaid law before gifting away property and assets, changing your beneficiaries, or even creating a living trust.

Disclaimer:  Information contained in this column is meant to be of general information on frequently asked questions concerning disability, elder law, estate planning and probate law, and does not contain specific legal advice to a client.  No attorney-client relationship is created by reading this column.

WRITTEN BY LINDA KNAPP

You may reprint this article with my permission by showing the Firm’s name and attaching my contact information. If you wish to cite the article you must give full credit to the author, Attorney Linda Farron Knapp. Nothing in this article creates an attorney-client relationship. When the article was written it was good law, that may not be situation at the time of reprint. We advise you seek competent legal advise based on your own factual situation before relying or acting on any legal material you read online.

Q. What things can be done to avoid probate?
A. A simple way to avoid probate is to give away property during your lifetime. But there can be consequences because you lose control and cannot recover the item, cash or property just by asking. The new owner has to agree to return something to you or even use funds for your benefit. You should only give away what you can spare. Gifting over $15,000 per person in a year requires you to file a gift tax return with the IRS.
A second thing you can do is to make an asset payable on death. An example is life insurance, an IRA, a 401k, or an annuity. As long as you don’t name your estate or fail to name any beneficiary the property will pass outside of probate to the person you designate. You should name a contingent beneficiary in case the first person you select predeceases you.
Likewise you can use payable-on-death (POD) accounts. These are also sometimes called multiparty accounts. POD accounts do not provide the beneficiary with immediate access to your financial accounts, such as checking and savings accounts. The funds are given to the named beneficiary after you die. With a multiparty account the other person on the account can have immediate access while you are alive and after you die it belongs to the other person and does not pass thru probate. This can be a useful way for loved ones to have quick access to funds to pay for funeral expenses, last bills, and even support themselves.
Similar tools are called transfer on death (TOD) accounts used for stocks, bonds and other securities. Some states do not allow this form of designation, but South Carolina does.
Joint ownership with right of survivorship or a life estate are often used with real property, vehicles, and mobile homes to avoid probate. These types of ownership create various rights and limitations such as needing the other owner’s permission to mortgage the property or sell it. You need to understand the drawbacks before creating any changes to your real property. This change in title is a gift and subject to the five-year-look-back-period for Medicaid eligibility.
Living trusts have grown in popularity because they avoid probate and let you retain control as long as you are competent. These kinds of trusts can hold your real property in multiple states, including time shares. Said trusts can also hold household goods, vehicles, cash, accounts, etc. They can work in conjunction with some of ideas above.
Do not act on any of these ideas if you feel pressured by someone or are confused. You should consult with an elder law attorney well versed in Medicaid law before gifting away property and assets, changing your beneficiaries, or even creating a living trust.
Disclaimer: Information contained in this column is meant to be of general information on frequently asked questions concerning disability, elder law, estate planning and probate law, and does not contain specific legal advice to a client. No attorney-client relationship is created by reading this column.

WRITTEN BY LINDA KNAPP

You may reprint this article with my permission by showing the Firm’s name and attaching my contact information. If you wish to cite the article you must give full credit to the author, Attorney Linda Farron Knapp. Nothing in this article creates an attorney-client relationship. When the article was written it was good law, that may not be situation at the time of reprint. We advise you seek competent legal advise based on your own factual situation before relying or acting on any legal material you read online.

Not necessarily. Medicare due to its privacy notice has its own form they want completed. A competent person can complete the form called 1-800-MEDICARE AUTHORIZATION to Disclose Personal Health Information. This allows the named agent to talk with Medicare, research, choose coverage, handle claims and file an appeal. Its best not to limit the information your agent might need, but you can. You can also state whether the authority is indefinite or for a specific period of time. There is NO FAX OR EMAIL SUBMISSION. You must mail the form so keep a second original at home. The individual has the right to revoke at any time in writing.
These forms are necessary even for spouses.
If the person is no longer able to give consent, then the attorney-in-fact can sign AND should attach a copy of the health care power of attorney (HCPOA). Note some HCPOAs require a doctor or two doctors’ statements to activate. Some durable powers of attorney for finance contain authority in these situations. A guardian should submit his or her certificate of authority when executing on behalf of the ward.
Once you put the initial form in place you can change, update and add Medicare representatives online through your account.
You still may not be done because each Medicare Advantage, Part D Plan for prescription drugs or supplement coverage seems to have its own form. It may be called authorization to release personal information. To complete this form check with the Plan’s member information or call a customer service representative.
Disclaimer: Information contained in this column is meant to be of general information on frequently asked questions concerning disability, elder law, estate planning and probate law, and does not contain specific legal advice to a client. No attorney-client relationship is created by reading this column.

WRITTEN BY LINDA KNAPP

You may reprint this article with my permission by showing the Firm’s name and attaching my contact information. If you wish to cite the article you must give full credit to the author, Attorney Linda Farron Knapp. Nothing in this article creates an attorney-client relationship. When the article was written it was good law, that may not be situation at the time of reprint. We advise you seek competent legal advise based on your own factual situation before relying or acting on any legal material you read online.

Living or revocable trusts are effective estate planning tools that can avoid the hassle and cost of probate and ease the transition of assets after the death of a grantor. Clients often think that because their trust contains some, if not all, of their assets, that they only need a living trust to direct distribution on the grantor’s death, but that is not true. Assets in a living trust will generally pass to the named beneficiaries just days or a few weeks after a grantor’s death, but a will is still needed and filed with the probate court. The purpose of a pour-over will is to direct transfer of the grantor’s other assets and possibly those tangible personal items acquired after creation of the trust. A grantor may inherit or purchase an asset that they forget to transfer into their trust and the pour-over will deals with these items.

IRA and other retirement accounts often don’t go into a trust to order to preserve the payable-on-death tax benefits. Many people opt to leave their cars or a small checking account out of their trust. Your attorney will be able to help you decide which assets should go into the trust.

A lessor know reason for having a will involves claims against the estate. Under probate you can limit the time period when creditors can file a claim. In South Carolina that time is usually 8 months. Without probate barring creditors, creditors may come after assets for years. Assets in a living trust are not necessarily safe from creditors just because the estate is probated.

A third reason for having a will is to be able to name a guardian for minor children, an incompetent adult child or spouse with diminished capacity. These are things you cannot do in a revocable trust.

While in most cases it will cost more to create a trust and a pour-over will than just a simple will, trustee fees are typically lower than those charged by personal representatives for assets probated through a will. In South Carolina a Personal Representative can charge 5% of the probate estate, which only includes real property if the land is sold as part of administration of the estate. Trustees fees are typically 1-2% of the total assets, but depend on the size and complexity of the estate. Often family members who serve as trustees do not charge fees, only seek reimbursement for actual costs, including hiring professionals to assist and advise them as needed. Family members or friends serving as personal representatives are not required to charge fees. Trustees and personal representatives who do charge fees often must report the monies paid to the IRS as earned income.

Another benefit of a living trust is that each named beneficiary adds $250,000 to the total FDIC protection available to the account for a maximum of $1,250,000. If you plan to have more than five beneficiaries check with your attorney because there are added requirements such as each beneficiaries must having an equal interest in the trust assets.

Disclaimer: Information contained in this column is meant to be of general information on frequently asked questions concerning disability, elder law, estate planning and probate law, and does not contain specific legal advice to a client. No attorney-client relationship is created by reading this column.

WRITTEN BY LINDA KNAPP

You may reprint this article with my permission by showing the Firm’s name and attaching my contact information. If you wish to cite the article you must give full credit to the author, Attorney Linda Farron Knapp. Nothing in this article creates an attorney-client relationship. When the article was written it was good law, that may not be situation at the time of reprint. We advise you seek competent legal advise based on your own factual situation before relying or acting on any legal material you read online.

YES. FEMA (Federal Emergency Management Administration) whose mission it is to help people before, during and after disasters will have funds available starting April 12, 2021 to reimburse up to $9,000 per funeral to those that paid for burial of love ones from COVID. Funds were made available in the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 and the American Rescue Plan Act of 2021.
To qualify:
• The death had to occur in the US, including US territories and the District of Columbia after January 20, 2020.
• An official death certificate must state death was attributed directly or indirectly to COVID-19. Phrases that indicate a high likelihood of COVID-19 will be considered sufficient.
• The applicant must be a US citizen, qualified alien, or non-citizen national. There is no requirement the deceased be born in the US.
• Funeral expenses documents must include the applicant’s name, show your name as the responsible party, the deceased person’s name, the amount of funeral expenses and date(s) the funeral expenses happened.
• There can be no duplication of benefits received from burial or funeral insurance, voluntary agencies, government agencies or other sources like donations. These amounts will be deducted so its possible to get partial assistance. Life insurance that was payable to an individual or an estate is reimbursable.
• Funeral expenses can also be for interment and cremation.
• Applicants may receive reimbursement for multiple deceased individuals up to a maximum of $35,000.
If multiple persons contributed toward funeral expenses, such as the children of a deceased parent, they should apply under one application as applicant and co-applicant. A minor child cannot apply even if he or she was the primary beneficiary of the decedent’s estate, however if all documentation supports the minor child’s payment of the funeral expenses FEMA will consider the application for possible assistance under terms not yet released.
NO ONLINE APPLICATIONS WILL BE ACCEPTED BUT GATHER YOUR DOCUMENTS NOW. Once an applicant has applied and received an application number you will be able to upload, fax or mail documents. To register you will need your and the deceased person’s Social Security numbers, your and the deceased person’s date of birth, your current mailing address and phone number, location where the deceased passed away, information about burial and funeral insurance policies and other donations or payments made on the funeral bill, routing and account number for applicant if direct deposit is requested.
The following funeral expenses are covered:
• Transportation for up to two individuals to identify the deceased person
• Transfer of remains
• A casket or urn
• Burial plot or cremation urn
• Marker or headstone
• Clergy or officiant services
• Arranging the funeral ceremony
• Use of funeral home equipment or staff
• Cremation or interment costs
• Cost of producing and certifying multiple death certificates
• Additional expenses mandated by local or state government laws or ordinances.
A hotline has been setup at 844-684-6333 or TTY for the deaf at 1-800-462-7588. The Office will be open from 8 AM to 8 PM Central Time after April 12, 2021. At present there is no deadline to apply for COVID-19 Funeral Assistance.
DISCLAIMER The information given in this article is of a general nature and does not create an attorney-client relationship. You should always consult with an attorney one-on-one regarding the specific facts of your situation. April 2021

WRITTEN BY LINDA KNAPP

You may reprint this article with my permission by showing the Firm’s name and attaching my contact information. If you wish to cite the article you must give full credit to the author, Attorney Linda Farron Knapp. Nothing in this article creates an attorney-client relationship. When the article was written it was good law, that may not be situation at the time of reprint. We advise you seek competent legal advise based on your own factual situation before relying or acting on any legal material you read online.