Salt Lake City Estate Planning

Las Vegas Cop Arrested on Elder Abuse Charges

A police officer, who has been with the Las Vegas Metropolitan Police Department since March 1994, has been charged with 14 felony counts of theft, grand larceny auto, perjury, and exploitation of an older person.

The officer is identified as James Melton, according to a report in the Las Vegas Review-Journal, “Las Vegas police officer, 3 others indicted in elder abuse case.”

“We are disappointed the state made the decision to charge Mr. Melton,” Melton’s lawyer Josh Tomsheck said. “I say that based on the overwhelming amount of evidence which exists showing Mr. Melton violated no law and committed no crime. Mr. Melton, however, trusts the court system and knows we will be able to utilize the court process to bring to light the full version of facts which will exonerate him and restore the good name he’s spent a lifetime earning.”

Melton was most recently a member of the LVMPD’s homeland security division. Public records show he received more than $300,000 in pay and benefits in 2016. Melton has been on paid suspension since July 2017, when authorities launched the investigation. He’s now expected to be relieved of duty without pay, according to a statement from the LVMPD.

April Parks, a guardian appointed to care for the elderly, is already jailed in a separate case. Parks now faces a new exploitation charge, as well as five counts of offering a false instrument for filing or record and one count of perjury. Prosecutors said two others, Noel Palmer Simpson and Mark Simmons—office manager of Parks’ company, A Private Professional Guardian LLC—also were indicted.

Prosecutors claim that Melton worked with Parks, Simmons, and attorney Simpson to exploit an elderly couple. Between December 2010 and May 2017, Melton is said to have hired Parks, Simmons, and Simpson to act as the guardian for Beverly Flaherty and obtain control of more than $700,000 in Beverly and Jerome Flaherty’s assets.

Melton, Parks, and Simmons are accused of using Simpson’s services to file false and misleading legal documents with the court to obtain guardianship and name Melton as the successor trustee of Beverly Flaherty’s family trust.

“Protecting Nevada’s families and vulnerable populations is the overarching mission of this office, and one that I take very seriously,” Attorney General Adam Laxalt said in a statement. “Just a few short months after obtaining the most significant elder exploitation indictment in Nevada’s history, my office has once again teamed up with our local law enforcement partners to ensure justice is served against those seeking to exploit our elderly. These targeted crimes strike at the very heart of our tight-knit communities and will be pursued aggressively by my office.”

A Clark County grand jury indicted Parks last year on more than 200 felony counts that include racketeering, theft, exploitation and perjury.

Law enforcement at the time said Parks was the central target of their investigation and said she exploited at least 150 of vulnerable Nevadans and “systemically bilked them out of their life savings.” Parks is still awaiting trial on those charges.

Parks and Simmons are in custody on hundreds of previous charges.

Reference: Las Vegas Review-Journal (February 14, 2018) “Las Vegas police officer, 3 others indicted in elder abuse case”

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Financial Industry Watchdog Enacts New Rules to Help Seniors

FINRA, the Financial Industry Regulatory Authority, has instituted two new rules to help thwart elder financial abuse:

1. Financial advisors must now make every reasonable effort to get the name and contact information of a trusted person for a senior customer; and
2. Financial advisors must now place a temporary hold and not disperse funds, if the adviser thinks that the senior investor may be the victim of financial exploitation. If this happens, the adviser must contact the trusted contact, while the funds are on hold.

Wealth Advisor says in its recent article, “These new rules will help protect seniors against fraud,” that the regulations are now in effect.

FINRA’s Securities Helpline for Seniors was the impetus for the enactment of these rules. More than 12,000 calls were made to the helpline on fraud and exploitation in the past three years, the self-regulator said. They recovered $5.3 million in voluntary reimbursements to customers.

Research shows that financial abuse is the second most frequently-reported type of abuse against the elderly. The most common is psychological abuse, according to a recent study of people 60 and older published in the journal Lancet Global Health.

The new rules should have a great impact on the safety of the elderly and their assets, because it may reduce the risk of the elderly losing funds they won’t be able to get back.

Advocates for the elderly say still more needs to be done, such as mandating that the financial industry develop personnel training, so staff know what to look for and can be proactive before a possible breach.

The FINRA rule stipulates that the absence of a trusted contact person’s name or information doesn’t keep an adviser from opening or maintaining an account, provided he or she has tried to obtain the information of a trusted contact. The advisers will also have to update the contact information regularly, along with the customer’s records.

There are other ways advisers can help fight elder financial abuse. One is to know the signs: the elderly may seem more submissive or fearful toward new people, or aggressive family and friends. Another is a senior who may make abrupt changes to financial documents, like their will or deed, or they have unusual changes to their financial management habits—like trying to wire large sums of money or establish new joint accounts.

Reference: Wealth Advisor (February 12, 2018) “These new rules will help protect seniors against fraud”

If you would like help protecting your Elders, give our office a call for a FREE consultation 801.438.7120!

Steely Dan Founder’s Estate Battles with Bandmate Over the Band’s Ownership

 

The estate of one of Steely Dan founders says bandmate Donald Fagen's lawsuit over ownership of the band is "riddled with half-truths and omissions." The estate of Walter Becker has responded to a lawsuit filed by Fagen over the ownership of the band, following Becker's September 3 death.

Rolling Stone’s recent article, “Walter Becker's Estate Responds to Donald Fagen's Steely Dan Lawsuit,” reports that in the lawsuit, Fagen accuses Becker's estate of reneging on a Buy/Sell Agreement that he and Becker agreed to in 1972. Under that agreement, one member of the duo would buy all shares of Steely Dan, if the other member quit or died.

"We believe the agreement to which Mr. Fagen refers in his suit—drafted 45 years ago—was not in effect at the time of Walter's death," a representative for Becker's estate said in a statement to Rolling Stone.

"Mr. Fagen's lawsuit, riddled with half-truths and omissions, misleadingly fails to state that the day after Walter died, Mr. Fagen had his lawyer send a demand letter to Walter's estate, thus beginning a legal campaign against Walter's family immediately after his death."

The lawsuit also sued the band's former business managers and tour accounting company over "secretive behaviors." Fagen said he received a letter from Becker's widow stating that, as director or officer of Steely Dan, she is entitled to 50% ownership of the band. He also accused the Becker estate of not giving up control of the Steely Dan website. But a spokesperson for the Becker estate remarked that "the misrepresentation that his widow, [Delia Becker] initiated any litigious action is simply untrue." The estate claimed that they twice have neared a compromise with Fagen's legal team, only for Fagen to fire both lawyers. A third lawyer for Fagen filed the lawsuit, they allege, without first reaching out to the Becker estate.

Following the publication of the Rolling Stone article, Fagen's attorney said that "Mr. Fagen reluctantly took this step in response to certain actions of Mr. Becker's estate. The main point is that the Buy/Sell agreement at the heart of the suit is as valid as the day it was signed. It's something Mr. Becker felt strongly about keeping in place and honoring, even during his years of illness. Mr. Fagen believes Mr. Becker's estate is entitled to receive all normal royalties on the songs they wrote together. But this case is about the future of the band, and we will vigorously defend the contract."

Reference: Rolling Stone (November 27, 2017) “Walter Becker's Estate Responds to Donald Fagen's Steely Dan Lawsuit”

If you would like to set up your Estate Plan, give our office a call for a free consultation 801.438.7120!

Adult Children Tasked With Caring For Their Parents

Adult children may one day need to provide care for their aging parents. This may include helping them downsize their home and assist with complex legal matters. It’s frequently an overwhelming and emotional process that is filled with tough decisions.

For some, that process begins when an adult child and parent decide that she needs to move in with the adult child and his family. In its recent article, “Helping an elderly parent downsize,” The Best of New Orleans reports that a senior’s active lifestyle can often stop with a serious fall requiring hospitalization.

There are also legal issues associated with becoming a parent's caretaker. It’s important to obtain power of attorney (POA) documents to make an adult child or other trusted person the primary decision maker for a parent's medical and financial matters.

Those in this type of situation would benefit from calling an estate planning attorney.

Estate planning concerns handling people's estates after they pass away. Estate planning attorneys work with executors in dealing with the affairs of the deceased and distributing assets to heirs.

A POA states who will act on the person's behalf, when he or she is incapacitated or simply needs assistance in handling certain affairs. The power of attorney can apply to financial or medical matters (or both). A living will tells your family and the medical staff what your wishes are regarding end-of-life medical issues.

When someone dies, going through their lifetime of belongings is an overwhelming and emotional major task. It's hard to make progress with items of sentimental value and family heirlooms.

Some will distribute furniture and other belongings among grandchildren. For others, an estate sale ensures a second life for those objects—and can bring in some money. Many people are happy knowing that the personal items they’ve treasured through the years are going to good homes.

Reference: The Best of New Orleans (October 30, 2017) “Helping an elderly parent downsize”

If you would like more information, or would like help with your Estate Plan, give our office a call for a free consultation, 801.438.7120!

Iowa Senator Proposes Elder Abuse Legislation

The (Cedar Rapids IA) Gazette’s recent article, “Grassley elder abuse legislation awaits Trump's signature,” says that one of the main reasons for the legislation is the case of a Cedar Rapids couple who spent more than $40,000 buying nutrition-related supplements of dubious value. Senator Chuck Grassley of Iowa said the legislation would increase penalties and improve coordination at the Justice Department and Federal Trade Commission.

“Exploiting and defrauding seniors is cowardly, and these crimes should be addressed as the reprehensible acts they are,” the 84-year-old Grassley said. Legislation that the Senate Judiciary Committee chairman sponsored with Sen. Richard Blumenthal, D-Conn., will send a “clear signal from Congress that combating elder abuse and exploitation should be a top priority for law enforcement.”

The Elder Abuse Prevention and Prosecution Act of 2017 passed the House of Representatives and the Senate by voice vote. One of the challenges of protecting seniors from scams is that technology changes quickly and “criminals are constantly coming up with new scams,” Grassley said. “None of us are completely immune.”

Grassley explained that six million seniors are victims of abuse and exploitation each year. In 2016, Karl and the late Marlene Sibert of Cedar Rapids were among them, spending $44,000 on nutritional supplements over a period of twenty months for health and nutrition-related products, when her mother was hospitalized. Their daughter, Karla Sibert, became aware of the spending and contacted the Iowa Office of Attorney General’s Consumer Protection. She filed a formal complaint. The investigation discovered telemarketers’ handwritten notes indicating that Sibert’s mother had “memory” issues and her father had “dementia,” according to Attorney General Tom Miller. Luckily, in the Sibert’s case, the telemarketer complied with his office’s demand to repay the money the couple spent on the supplements.

Grassley called those who exploit seniors “cowardly” and said those crimes should be prosecuted “as the reprehensible acts they are.” Even though elder exploitation may not be a “prominent or popular issue,” Grassley said it’s “an important kitchen table issue for America’s seniors, families and caregivers.”

The legislation will improve the nation’s response to these crimes, Grassley said, and will help families across America by equipping law enforcement, seniors, and caregivers with better training and tools to deter crimes and hold perpetrators accountable.

Reference: The (Cedar Rapids IA) Gazette (October 5, 2017) “Grassley elder abuse legislation awaits Trump's signature”

If you need help with an Elder Law case, give our office a call for a free consultation, 801-438-7120!

Guardians for Minor Children a Must in Estate Planning

Estate planning is a part of good parenting.  It means trying to make things a bit easier on the family we leave behind. Those of us with any accumulated assets or minor children really must do some estate planning.

The more complicated your life, the more involved your planning needs to be.

A caring.com survey found that just 42% of adults currently have estate planning documents, including a will or living trust. For those with children under 18 living at home, that number is an astonishing 36% with an end-of-life plan in place.

Parents do their best to keep their children from harm.  However, as the numbers show, many don’t do the same when it comes to keeping them safe, if the parents should die. At a minimum, a parent should have a will that designates guardians for minor children in the event something happens to both parents. Without a will, there will be a messy situation for the individual appointed by the court.

If there’s life insurance involved with a decent amount of money, even your no-good, irresponsible younger brother will gladly offer to take the kids.

It’s convenient to delay estate planning when you’re unsure who to name as guardian for the kids and, if we don’t talk about dying, maybe it won’t happen!

Unfortunately, no one gets out of this life alive, so the smart move is to make these important plans now. Life can be complex, and it gets even more complicated when you throw in blended families. That can make the decision as to who will rear your minor children a lot tougher.

A wise choice for the guardian may be an adult brother or sister, a close cousin, or your best friend who lives nearby. However, these may not be options in every case. Grandparents might seem like a good selection, but because of their age they may be too old to rear young children.  However, if they’re fairly young, don’t rule them out. Speak with those members of your family and your friends about the possibility of caring for your kids.

Life will go on, if nothing happens to you soon. However, estate planning on your part now can make things a lot easier for those you leave behind, if something should happen to you.

Reference: CBS Boston (August 24, 2017) “Catastrophe Planning: Where There’s A Will There’s A Way!”

If you need help with your Estate Plan, please call our office for a free consultation, 801-438-7120!

New York Considers Legislation to Help the Elderly

“Elder abuse is an under-reported crime that preys on the people who worked hard to build our communities.”

Several pieces of legislation in New York are being considered that are aimed at helping health care workers and bank employees identify abuse and fraud, so they can notify the authorities.

The Times Union in Albany NY recently published an article, “New Legislation to Protect New York Seniors from Exploitation and Abuse.” The article notes that in New York State, approximately 260,000, or 1 in every 13 seniors, experienced some form of elder abuse in the previous year. Financial exploitation was found to be the most common form of abuse.

One Assembly bill would require the state Office for the Aging to create guidelines to help health care providers and employees identify abuse and maltreatment of seniors. Another directs the superintendent of the state Department of Financial Services to develop training to help bank employees recognize and report signs of financial exploitation. This bill would protect banks and other financial institutions from state liability, when reporting suspected financial abuse in good faith. The measures ensure that the elderly have additional allies watching out for their financial well-being.

The Assembly also passed a measure that requires banks to notify customers who want to open a joint account, if the bank also offers convenience accounts. Unlike joint accounts, which grant the co-signer the right of survivorship and the assets of the account if the other signer passes away, these convenience accounts allow the other accountholder to make basic transfers or withdrawals which must be in the best interest of the main account holder, as well as simplifying check writing and bill paying. If the holder of a convenience account passes away, the money in the account is part of his or her estate.

The last piece of legislation streamlines the estate planning process by simplifying the power of attorney (POA) form to a single simple document. This simplifies the process of executing a POA and helps ensure that third parties honor a valid POA. The bill also allows courts to impose sanctions against third parties who unreasonably and unfairly refuse to honor a valid POA form.

Legislators say the bill will help ensure that the state’s regulations and protections keep up with and adapt to society, so it can help prevent elder abuse before it happens.

Reference: (Albany NY) Times Union (July 7, 2017) “New Legislation to Protect New York Seniors from Exploitation and Abuse”

Planning for the Future of a Special Needs Child

 

There are parents who have special needs trusts for their autistic adult children. Many of these children with special needs are able to live on their own and hold down a job. Nonetheless, parents want to do more to provide for the future of these children.

NJ.com’s article, “Long-term planning for a special needs child,” says there are several things that parents can do to help children with special needs years into the future.

Consider a guardianship proceeding, if your child with special needs isn’t able to manage his or her financial or medical decisions without help. Be certain that your will designates a successor guardian.

Next, draft a letter of intent to help the successor guardian or those designated to care for him to manage the transition after you pass away. This isn’t a formal legal document, but it’s a memorialization of the child's needs to guide the caregiver, guardian, and trustee of the special needs trust in providing the best possible care for the child. A letter of intent should include information about the child's schedule, diet, medications, medical and dental care, and his or her public benefits, along with information about his living arrangements, social activities and religion. Review and update the document periodically and keep it with your estate planning documents.

Another option is to purchase a life insurance policy with the trust as a beneficiary. If you decide to move forward with this, see an independent insurance broker rather than a company agent. This is because an independent broker may be able to find policies with different companies to get the best rate.

Reference: NJ.com (May 9, 2017) “Long-term planning for a special needs child”

Contact our office at 801-438-7120 for advice on designing an estate plan specific to your needs, including planning for any beneficiaries with special circumstances. We can also assist with a Guardian or Conservatorship.

Does My Kid Need a Trust?

Trust Advisor explains in its recent article “Should You Create Trusts for Your Children?” that if minors receive assets before age 18, a guardian of the property must be appointed to oversee those assets for the child.

Guardians typically need to be bonded and must file a formal accounting with the court each year with a petition for approval. All of the costs are paid from the child’s funds.

Another option is to instruct that a trust be created for each minor child in your will at the death of both parents. In the will, you can state that the trustee doesn’t need to post a bond or to file an accounting with the court every year.

 Setting up a trust for a minor child is usually easier and less expensive than leaving the assets outright to a minor child and having a guardian appointed. Many estate planning attorneys recommend that even if you think your children will be over 18 when both spouses die, consider keeping the assets in a trust for the children to protect them from themselves.  It is recommended to wait until they reach a specific age, when they would be best ready to handle the assets. For some, this might be age 30 or 35, or older. Other parents set up the trust to continue for their entire lives to protect the assets in the trust from future claims of the child’s creditors, or in the event that he or she goes through a divorce. Assets that continue to be held in the trust, can’t be touched by a child’s current or future creditors.

Trusts can have considerable flexibility. For instance, the trustee can be given the authority to make liberal distributions to the child for any reason the trust creator wants or for no reason at all.  At a certain specific age, the child can also become a co-trustee of his or her own trust and be given the power to remove and replace the co-trustee making the distribution decisions. That can give the child significant control over his or her own trust.

There are many reasons to create trusts and every family situation is different. It’s important to work with a qualified estate planning attorney on these issues in order to create a plan that works best for your family.

Reference: Trust Advisor (March 28, 2017) “Should You Create Trusts for Your Children?”

For a free estate planning consult, including planning for minor children, call our office at 801-438-7120.

Think Hard About Naming Your Beneficiaries

One of the biggest decisions in estate planning is determining the beneficiaries on your life insurance policies, pension plan accounts, IRAs and annuities.

Some people automatically put down their children or nieces and nephews, and then fail to consider the substantial estate and income tax consequences that each beneficiary may have from your generosity.

The Cape May County Herald, in “Naming Beneficiaries: What You Need to Know,” advises that it’s important to know that beneficiary designations supersede a will. Designating your beneficiaries is critical, but you also should talk with an experienced estate planning attorney to be certain that your beneficiary arrangements are consistent with other estate planning documents.

There are several different financial products and investments that allow you to name a beneficiary, but each of them may have some subtle nuances that can be hard to flesh out and understand.

Remember that designating a beneficiary is also a legal arrangement. A beneficiary designation requires that you include certain language to be certain that your wishes are accurately recorded and carried out. That is why it is important to consult with a qualified estate planning attorney when deciding who to name as beneficiaries and how to properly document your wishes. In addition to the specific person you’ll name as your beneficiary, you should consider the following:

• The age of the beneficiary, because most policies and plans won’t directly transfer assets to minors, until a court approves a trustee or guardian;
• The ability of a beneficiary to manage assets, because if he or she has trouble with finances, a trust in the person’s name may be a better option than a direct transfer; and
• When looking at your pension plan, the law requires a spouse to be the primary beneficiary of the account, unless he or she waives this designation in writing.

Go with a Pro. Naming beneficiaries is not a simple matter. It requires some real planning and thought to be sure that your decisions are consistent with your financial and estate planning goals.

An experienced estate planning attorney will help you to review your beneficiary designations and suggest options that are appropriate for your situation.

Reference: Cape May County (NJ) Herald (March 17, 2017) “Naming Beneficiaries: What You Need to Know”

We would be happy to sit down with you to help you plan out your beneficiary designations. Contact our office at 801.438.7120 to set up a free consultation.