Category: Estate Planning
Changes Are Coming to Medicare Part D
November 14, 2024 | Cathryn Reher
The Good and Bad of These Changes First, the good news: the Inflation Reduction Act (IRA) will cap the out-of-pocket maximum at $2,000 for all Medicare Part D plans starting January 1, 2025. Medicare Part D plans provide coverage to enrollees for prescription drugs. This will enable Medicare Part D enrollees to better budget if they have had historically high out-of-pocket prescription drug costs. The difficulty of the law change will be the impact for those who are Medicare-eligible but are enrolled through an employer or other health insurance plans. These plans are required to provide health insurance coverage that is just as good or better than Medicare standards. A plan that is as good or better than Medicare standards represents “creditable alternative coverage.” If a plan is not creditable, individuals run the risk of accruing a Late Enrollment Penalty (LEP) for each month they are not enrolled in a plan providing creditable coverage. The specific concern with the Part D law change is that prescription drug coverage under alternative insurance plans may not be as good as the new Medicare Part D coverage and therefore may not meet the creditable alternative coverage requirement. This would then require individuals to drop their employer or other health insurance plans, which are generally more cost-effective than Medicare health insurance plans. The…
Read MoreHow to Coordinate Business Succession & Estate Planning
October 30, 2024 | Carole Clark Isakson
At some point, many business owners execute a will or trust to provide for the disposition of their personal assets. Those dispositions will either specifically or generally deal with their business ownership interests as well. However, business succession planning is also affected by an entity’s governing documents. This blog addresses the possible conflicts between the entity documents and the individual owner’s estate planning documents. Make sure your business attorney and estate planning attorney are each aware of your plans so you can avoid such conflicts. Governing Documents Affect Business Succession Planning When a business owner makes an estate plan, they must decide where all their assets are to go, including ownership in the business. The owner—let’s call her Sam—may wish to leave half of XYZ Properties to her three children for their benefit. So, Sam’s will or trust will state that her ownership interests in the company (or perhaps simply all her assets) are to be divided equally among her three children. Whether or not this will actually happen depends on the governing documents of XYZ Properties. There are several forms of business entities. But no matter the type of business, the owner(s) intentionally created it, and in cases where there is more than one owner, the owner intentionally chose the other person(s) with whom…
Read MoreNotice of Continued Insurable Interest: Minnesota Transfer on Death Deeds
June 25, 2024 | Cathryn Reher
A spiteful ex-spouse burned down the decedent’s homestead immediately after death upon learning the property title passed to the decedent’s daughter as the surviving transfer on death beneficiary. The insurance company refused to cover the loss, asserting the daughter did not have an insurable interest! Thankfully, this prompted our legislators to pass a new law effective August 1, 2024, which provides some limited post-death insurance coverage to transfer on death beneficiaries. BUT, it will require you to act. The new law provides that, upon notice, your property insurance company must provide extended coverage commencing on the date of the Grantor Owner’s death or death of the last survivor of multiple Grantor Owners for a period of 30 days, or the date that the insurance policy expires, whichever is shorter, for the named Grantee Beneficiary(ies) under the transfer on death deed. Note that if you change your insurance carrier, you will need to submit a new notice to your new insurance company. This is a benefit to property owners in Minnesota. If you need assistance to provide the required notice, please reach out to your BGS team. Our estate planning and real estate practice groups here at Barna, Guzy, & Steffen are dedicated to staying informed and serving our client’s best interests. Our estate planning…
Read More