You do not need to have your own attorney. The lender will choose an attorney to conduct the closing. However, you do have the right to choose your own title attorney to handle the title exam, do the recording and issue the title insurance policy.

Many people in RI do not use their own attorney when they are selling a house, but it is a good idea to have one. The attorney handling the closing is looking out for the interests of the lender, so it is a good idea to make sure someone is looking out for you. You will want someone to properly prepare the deed transferring the property, to make sure the payoff of your mortgage is correct, and to be sure you are being charged the correct fees on the settlement statement.

Title insurance is a form of indemnity insurance that protects against financial loss from defects in title to real estate and from the invalidity and unenforceability of mortgage liens. It is meant to protect an owner’s or lender’s financial interest in real property against loss due to title defects, liens or other matters. When buying or refinancing a house, the lender will almost always require that you purchase a title insurance policy to protect its interest. This is known as a lender’s policy. The lender’s policy will remain in effect for the term of the loan. When the loan is paid off the lender’s policy will terminate. When buying a house, it is highly recommended that you purchase an owner’s title insurance policy to protect your interest. You only need to pay the premium once at the closing and the policy will remain in effect for as long as you own the home.

Incorporating or organizing your business as an LLC protects your personal assets in the event that your business is sued. It keeps your personal assets and business assets separate preventing your personal assets from being attached due to legal proceedings. A properly formed and maintained Corporation or LLC will stop your personal assets such as your house and personal bank accounts from being used to satisfy judgments and debts incurred by your business.

Organizing as an Incorporation or LLC gives you the same level of protection with respect to your personal assets. The taxes paid by an Incorporation and an LLC can differ, however. So when asking which entity you should pick for your business, you will need to determine the tax implications of each. An accountant or CPA can help you determine what your tax liability would be. By working closely with your accountant or CPA, we can determine the right entity for your business.

Organizing as an Incorporation or LLC can make it easier for you to raise or borrow money for your business.  It makes it easier for your business to take on partners. And it makes it easier to leave your business to your family or heirs in your will or trust.

Once you have organized as either an Incorporation or LLC you will need to do some minor annual maintenance to keep your business in good standing with the Secretary of State. You will need to file an Annual Report with the Secretary of State and do Annual Minutes whereby the actions taken by the company during the year are ratified and approved by the shareholders or members. Our office makes maintaining your Corporation or LLC easy. We prepare all the necessary forms and paperwork you need each year, which allows you to focus on your business operations.

Probate is the legal process whereby the estate of a deceased person is administered by determining that the will of the deceased was executed with all legal formalities, that the claims against the deceased are resolved, and that the deceased person’s property is distributed according to the will.

Depending on the size and complexity of the estate, the cost to probate an estate can range from 2-7% of the value of the estate. So for an estate worth $100,000, the cost of probate will range between $2,000 and $7,000.

The length of time to probate an estate will depend on the size and complexity of the estate. However, on average, it will take between 9 and 18 months to probate an estate. Not all property or all estates need to be probated.

The basic rule says that to qualify for Medicaid, you cannot have more than $4,000 of countable assets in your name. Countable assets will generally include all assets other than:

• Your primary residence;
• Personal property, such as clothes, furniture, jewelry, etc.;
• One motor vehicle; and
• Assets that for one reason or another cannot be accessed.
• Without the proper planning, you will have to spend all except for $4,000 of your savings until you can qualify for Medicaid.

No. Your primary residence is not a countable asset. Therefore, it will not be counted against the asset limit you are allowed to have for Medicaid eligibility, as long as, you intend to return home or your spouse or other dependent relative lives there. However, the State of Rhode Island will place a lien on the home upon your death for reimbursement of benefits you received. However, with the proper planning, you can prevent the State from putting a lien your home and seeking reimbursement.

No. A major rule of Medicaid eligibility concerns the penalty for transferring assets. While there are a few exceptions, generally if you transfer assets, you will be ineligible for Medicaid for a period of time beginning on the date of the transfer.
Transferring assets to certain recipients will not trigger ineligibility. These recipients include:

• Your spouse;
• A blind or disabled child;
• A trust for a blind or disabled child; or
• A trust for the sole benefit of a disabled beneficiary under the age of 65.

In addition, special exceptions apply to the transfer of your home. You can transfer your home without a penalty to:

• Your spouse;
• A child under the age of 21 or who is blind or disabled;
• A trust for the benefit of a disabled beneficiary under the age of 65;
• A sibling who has lived in the home for the year prior to your entry into a nursing home and who already has an equity interest in the home;
• A child who has lived in the house for at least 2 years prior to your entry into a nursing home and who during that time provided care that allowed you to avoid entry into the nursing home.

Yes. The basic rule is that you must pay all of your income minus certain deductions to the nursing home. The deductions include:

• A $50 per month personal needs allowance;
• Uncovered medical costs; and
• An allowance for your spouse who lives at home and needs income support.

Special provisions exist to protect your spouse if you enter a nursing home so that he or she has the minimum support needed to continue to live in the community. Your spouse is entitled to keep one-half of the countable/available assets up to a yearly designated amount, called the Community Spouse Resource Allowance. Also, your spouse’s income will not be disturbed when you enter a nursing home. He or she will not have to use their income to support you if you are in a nursing home and receiving Medicaid benefits. And as stated above, your spouse may be entitled to keep some of your income if needed.

If you are concerned about your estate and the future security of your loved ones, then you should consider doing an estate plan. Our estate planning packages can help you avoid probate, minimize potential federal and state estate taxes, as well as, embody your wishes as to:

• Who will inherit your estate;
• Who will care for your children; and
• Who will handle your finances and make medical decisions for you if you are unable to do so.

Because the only time you can prepare and execute your estate plan is while you are alive and have legal capacity, you should do an estate plan now. If you become unable to manage your affairs or suffer from a disability that may impact your ability to manage your affairs, you run the risk of your wishes being challenged and not being carried out to your satisfaction.

A will is a good start. However, while a will states who you want to inherit your estate, it does not avoid probate, which can take 6 months to a year or longer and can be very costly. In addition, the will does not give anyone the ability to act on your behalf to make financial and medical decisions, if you are incapacitated and unable to make decisions for yourself.

A will allows you to leave your real and personal property to specific people (i.e. “my niece, Katherine”), or to a group of people (i.e. “my children”). A will most importantly is the only place where you can name a guardian for your minor children.

A Revocable or Living Trust is recommended to almost all of our clients. Like a Will, it lists who you want to inherit your estate by listing specific bequests or leaving your estate to a general group of people. Unlike a Will, however, any assets contained in your Trust will avoid probate, thereby passing to your heirs without the cost or hold up of the probate process. A Revocable Trust is also used to limit or eliminate the need for your heirs to pay estate tax on the assets they inherit. It allows you to control when and how young children will take possession of their inheritance providing Trustee oversight until the child reaches a mature age. Finally, it protects the trust assets from creditors, divorcing spouses and lawsuits.

A Durable Power of Attorney is a document that allows the person you chose to make financial decisions on your behalf. You do not need to be incapacitated for the document to take effect. However, it can be set up so that it springs into effect only if you become incapacitated. A Durable Power of Attorney avoids the need to have a Guardian appointed for you if you are unable to make decisions for yourself.

A Health Care Power of Attorney and Living Will allows the person you choose to make decisions regarding your Health Care if you are unable to do so. They allow the person you choose to speak with your doctors, hospitals and health insurance companies regarding your treatment and care. They also state your wishes regarding life support, feeding tubes, and organ donation.

The Medicaid Package is designed for people in their 60s and 70s who do not have long-term care insurance and who want to qualify for Medicaid, if they need to enter into a nursing home. Through the use of different trusts, we can protect various assets that you may have including, your primary residence, investment property, and bank accounts. Not all assets can be protected and there is a 5 year waiting period from when your property is transferred into the trust to when you can qualify for Medicaid.

A Special Needs Trust is a trust that will allow your disabled child to inherit your estate without compromising the State or Federal benefits he or she is currently receiving.

If your child has a disability and is receiving benefits from the state or federal government, you should have a Special Needs Trust. You can then place money in the Trust for their benefit without effecting their benefits.