Michigan Family Law Updates

March 18th, 2013 by Sean Cox Law Resources

At Sean Cox Law, we specialize in helping West Michigan families through divorce, custody and visitation issues every day. The following are briefs from recent appeals that will affect family law in Michigan. If you or someone you know may be affected by this case law, contact us for a free initial consultation 616-942-6404!

• Custody change denial is final order for appeal

In Legal Terms: The trial court’s denial of a motion to change custody was a final order that conferred appellate jurisdiction to review the court’s decision. MCR 7.202(6)(a)(iii) defines a “final order” in a domestic relations case as a “postjudgment order affecting the custody of a minor.” Even when an order denies a custody change, the trial court’s ruling necessarily has an effect on and influences where the child will live and, therefore, is one affecting the custody of a minor, according to the Michigan Court of Appeals in Wardell v. Hincka.

In Layperson’s Terms: What the Court of Appeals was determining is whether the Trial Court’s DENIAL – or lack of change to the custody order – is considered a “final order” under the law. The argument was that  if the trial court’s order does not change custody, it does not produce an effect on custody and, therefore, is not appealable of right. However, one could also argue that, when making determinations regarding the custody of a minor, a trial court’s ruling necessarily has an effect on and influences where the child will live and thus, is one affecting the custody of a minor. In this case, the ruling means that “no change” is still “a final order.”

• Grandparenting time decision vacated for failure of proof

In Legal Terms: The trial court’s order granting plaintiff grandparenting time with defendant’s minor child is vacated because the plaintiff did not present any evidence that the lack of visitation would raise a substantial risk of harm to the child, decides a split panel of Michigan Court of Appeals in an unpublished decision, Hollis v. Miller.

In Layperson’s Terms: If you are a grandparent and you wish to argue for visitation time in a court of law, this decision would have you needing to make a case that without your access there is a substantial risk of harm to the child. As a split panel, we might expect differing results on future appeals.

• Referee has authority to conduct PPO proceedings

In Legal Terms: A Friend of the Court referee may conduct personal protection order proceedings involving individuals who have a minor child in common, say the Michigan Court of Appeals in Visser v. Visser. The majority wrote: “It is clear… that PPO proceedings between individuals who have a minor child in common “have reference or relation” to custody or visitation proceedings. Therefore a referee is authorized to conduct a hearing.”

In Layperson’s Terms: In this case, the person against whom the PPO was issued was appealing it and was also suggesting that the order harmed his reputation. The Court of Appeals clarified that it is proper for a Friend of the Court referee to call for a personal-protection order, although one judge gave a dissenting opinion on this aspect.

• Sanctions properly awarded for improperly signed subpoena.

In Legal Terms: In this divorce action, the trial court properly sanctioned defendant for serving a subpoena not signed by an attorney of record. The attorney’s signing of the subpoena without indicating that her signature was made “for” or “with permission of” the attorney of record cannot be excused as a clerical error, according to the Michigan Court of Appeals in an unpublished opinions, Thorne v. Thorne.

In Layperson’s Terms: It is important to ensure that subpoena’s are signed either by the attorney of record or that the signer records the authority to sign on the attorney’s behalf.

• Social Security benefits garnished to pay periodic spousal support

In Legal Terms: Plaintiff’s spousal support obligations to his ex-wife are best understood as periodic alimony. As a result, the trial court erred by ending the garnishment of plaintiff’s Social Security benefits to satisfy his support obligation after plaintiff became ill, was unable to continue his surgical practice, filed for bankruptcy and was reduced to Social Security disability benefits as his only source of income, says the Michigan Court of Appeals in an unpublished opinion (Vanwagner v. Vanwagner.)

In Layperson’s Terms: In this divorce case, the husband had agreed to pay the wife support that was not modifiable and which could not be discharged in bankruptcy. The trial court had erred in treating the payments as “in gross” and therefore, terminated the payments. The Court of Appeals reversed the decision.

 


Medicare Annual Enrollment Update

November 14th, 2012 by Sean Cox Law Resources

By Christopher W. Smith, Michigan Law Center, PLLC

Medicare’s annual open enrollment began on October 15 and concludes on December 7. All Medicare beneficiaries who are enrolled in either a Medicare Advantage Plan or a Prescription Drug Plan need to review their plans during this time. Please remind your clients that the terms of their plan may have changed significantly for 2013, and they need to decide whether it is still the best plan. Not reviewing a plan and blindly continuing it is foolish. Throughout the state of Michigan, MMAP, Inc. is holding enrollment events where a client can consult with an MMAP counselor to review his or her plan. Call 1-800-803-7174 or your local Area Agency on Aging to see where MMAP will hold enrollment events. (Please note that calls to the hotline are heavy during this period, and your client will likely get the quickest service by attending an enrollment event.) If clients are unable to work with an MMAP counselor, ICLE just released a How To Kit on “Using Medicare.gov to Select And Review Medicare Plans” that may be useful to them or you. ICLE also released a Top Tips in Ten Minutes on “Selecting a Medicare Prescription Drug Plan.” Courtesy of MMAP, Inc., here are the changes to be aware of this year: • As of this newsletter’s deadline, we still do not know what the Medicare Part B premiums will be. Preliminary projections suggest a Part B premium increase of about $7/month in 2013. • For the first time, Prescription Drug Plans can cover benzodiazepines and certain barbiturates such as those used in the treatment of epilepsy, cancer, or chronic mental disorder. Note: Plans are not required to cover these prescriptions and may place restrictions on them. • There are still no five-star Medicare Advantage plans in Michigan. Thus, an individual will not be able to switch Medicare Advantage plans after December 7. • However, if an individual misses the December 7, 2013 deadline and is in a bad Medicare Advantage plan, he or she can return to Original Medicare between January 1 and February 14, 2013, and enroll in a prescription drug plan. Historically, this person may have been able to enroll in a Blue Cross Legacy plan, but the pending legislation may impact the ability to do this as discussed elsewhere in this newsletter. However, if the client is healthy, he or she might be able to enroll in a Medigap plan even if Blue Cross restricts the Legacy plans. • Competitive bidding for Durable Medical Equipment (e.g., oxygen equipment, wheelchairs, and hospital beds) will take place in the Detroit, Flint, and Grand Rapids areas next year. These locations will also be a part of the mail-order diabetic testing demonstration. If you live in these areas, expect some limitations regarding where a client can get these supplies (but hopefully at better prices) beginning in mid-2013. • Co-pays under Original Medicare for outpatient mental health services will be reduced from 40% in 2012 to 35% in 2013. Beginning in 2014, this co-pay will be reduced to 20%. • Medicare beneficiaries will begin receiving a new Medicare Summary Notice beginning January 1. It will look like this. Information Regarding Part D Prescription Drug Costs • There are 34 Prescription Drug Plans in Michigan for 2013. The Humana Walmart plan is no longer the cheapest Prescription Drug Plan at $18.50 in 2013. The cheapest plan is now an AARP United Healthcare plan at $15 month. • The national Part D base premium (i.e., the figure that the Part D penalty is calculated from) has increased a small amount to $31.17 in 2013, up from $31.08 in 2012. • The basic structure for Part D plans will change as follows: o The annual deductible increases to $325 (up from $320 in 2012). o An individual will reach the “doughnut hole” when actual drug costs equal $2,970 (a $40 increase) and will escape the “doughnut hole” when his or her out-of-pocket prescription drug costs reach $4,750 (a $50 increase). • Clients in the doughnut hole will pay 47.5% of brand name drug costs (down from 50% in 2012) and 79% of generic drug costs (down from 86%) in 2013. • If your client never enrolled in Part D and did not have creditable prescription coverage, the maximum penalty is 79% ($24.62) if he or she enrolls this season. • For those who receive low-income subsidies for prescription drugs (i.e., Part D LIS/“Extra Help”), the Michigan’s Regional Benchmark premium is $34.18, and there are 10 plans with $0 premiums in 2013. There are very minimal increases in co-pays and deductibles for those in the LIS program.


Tax Laws Will Impact Estate Planning Approaches in 2013 – Are You Ready?

October 1st, 2012 by Sean Cox Law Resources

 At Sean Cox Law, we know that the only thing that stays the same in estate planning these days is that the government will change the tax rules that underpin the best plans. Here’s a sneak peek at some of the estate planning tools that may be subject to change in 2013.  If you have pressing estate matters you’d like resolved, there’s no time like the present to take advantage of a Free Consultation with Sean Cox Law. Call 616-723-9365.

Speculation abounds in the estate-planning world, with the present estate tax exemption expiring on Dec. 31st. The current law, circa 2010, unifies gift and estate taxes so that amounts less than $5.12 million per donor are exempt, and amounts above are taxed at 35%. However, if congress does not act before the deadline, the law could revert to $1 million per donor and 55% tax rate above.

Here are some of the tax tools perceived to be most at risk:

Gifts

The key question in terms of gifts is whether congress will effectively extend the existing amounts or allow the current law simply to expire. The impact to gifts could be substantial. It is also unknown whether congress might again separate estate tax and gift limits, which presently enjoy the flexibility of the unified limit.

Gifts in Trust

Gifts in trust can bee a good idea when the donor wants to maintain control over the asset or when the recipient is a young child. However, if the gift tax exemption changes after this year, this strategy could be affected.

Life insurance trusts

If a trust is established to purchase life insurance, the policy proceeds are exempt from estate tax. Transfers to life insurance policies are exempt up to the current $5.12 million threshold. Next year, that limit could drop to $1, according to industry pundits.

GRATs and Grantor Trusts

Grantor Retained Annuity Trusts, or GRATs, are particularly tax-advantaged, and have become one of the most powerful and efficient wealth transfer tools. However, their increased popularity has also garnered the attention of the feds.  A GRAT  is a trust with a specific life or term whereby the grantor transfers assets to the GRAT and retains an interest in the trust. This income interest will be stated as an annuity percentage of the original assets transferred to the GRAT.  Each year the GRAT will pay the grantor the required payment. A GRAT  allows a person to share the future appreciation of an asset with the next generation with virtually no gift tax.

Presently, there is legislation afoot, with White House backing, that would limit or eliminate GRATs and grantor trusts.

 Appraisals

Most estate plans require detailed appraisals, particularly in the case of of real property and business valuation. Waiting now to decide what action to take risks missing the Dec. 31st deadline because appraisers are expected to be inundated at year-end.


Veteran Affairs: MyGoodDeed 9/11 Campaign Implements Service Projects to Help Vets

August 15th, 2012 by Sean Cox Law Resources

Here’s a neat movement to help veterans that Sean Cox Law hopes will catch on in Grand Rapids. Following the unveiling of the “I Will” Sculpture in New York this week, the “MyGoodDeed” campaign is launching a new website at 911day.org where the public can pledge to do good deeds and teachers can download lesson plans. In addition, the organization announced large-scale volunteer service projects on 9/11 in major cities to benefit homeless families and veterans.  These projects, which will be run by military veterans and staged in partnership with The Mission Continues, Volunteers of America, Second Harvest Heartland and the Corporation for National and Community Service, will be held in New York City; Washington, DC; Chicago; Los Angeles; Dallas/Fort Worth and Minneapolis.

The 9/11 nonprofit MyGoodDeed launched the 9/11 Day observance in 2003 as a lasting tribute to the 9/11 victims and those who rose in service in response to the attacks. In 2009 the group successfully secured passage of bi-partisan legislation that officially established 9/11 as a National Day of Service and Remembrance under federal law. Today 9/11 is the nation’s largest annual day of charitable service, with more than 33 million people participating last year from all 50 states and many nations throughout the world. Among the many prominent individuals who support the “I Will” campaign are Lady Gaga, Samuel L. Jackson, Dr. Oz, Terrence Howard, Gary Sinise, Selena Gomez, Kevin Spacey, Demi Lovato, Tim McGraw, Kathleen Turner, Mickey Rourke, Denis Leary, Julianne Moore, Maria Shriver, Justin Tuck, Bebe Neuwirth and many others.

This year’s funding and/or supporting organizations include American Express, Target Corporation, GlaxoSmithKline, NYSE Euronext, Viacom, AOL, Clear Channel, 9/11 Memorial, Corporation for National and Community Service, Holland & Knight, NFL Charities, Cantor Fitzgerald, Benjamin Moore Paint, Aerva, The Broadway League, Times Square Alliance, Creative Artists Agency, Sunshine Sachs, SNS Staging Inc., American Eagle and others.


Featured Partners – Elizabeth Harrell from ‘A Place for Mom’, Plus An Online Community About Eldercare

March 6th, 2012 by Sean Cox Law Resources

During the course of our work in eldercare in West Michigan, Sean Cox Law has been fortunate to work with Elizabeth Harrell in the Grand Rapids branch of ‘A Place for Mom,’ which is a national organization dedicated to providing a free eldercare referral service. Eldercare Advisors like Elizabeth provide personal, professional assistance finding care options in Grand Rapids and surrounding areas that match your loved one’s needs and budget, including Alzheimers, Assisted Living, Home Care and Nursing Homes. To contact Elizabeth, please call 1-616-485-3365. For more information about the work of APFM, download this APFM_Fact_Sheet.

 Of additional interest to families coping with elder care challenges is an online discussion board hosted by ‘A Place for Mom Families.’ Here’s an excerpt about the community, with links to join.

With the busy schedules we tend to keep, it’s common to connect with others via the Internet, whether by email, a blog or in an online community. Since we are naturally social beings, it is satisfying to contribute to a discussion and receive direct responses from others. And, with an online community you can interact with others from the comfort of your home!

One such online community is A Place for Mom’s Family. The site was created to give families and caregivers an online space to connect, share and learn from each other. When you visit the site you’ll find several forums that were created to spark conversation. These forums or topics so to speak are jumping points for community members to begin communicating with each other.

Thousands families converge on such issues as strategies to simplify moving mom and dad, ways to finance elder care, coping with guilt, everyday care giving challenges and caring for a parent with Alzheimer’s disease. Families talk about music therapy, senior driving safety, benefits for Veterans, wandering, support groups and more. Families are connecting with each other, sharing their experiences and finding support.

You can join the conversation too! It is simple and free to join. Click here to join A Place for Mom’s Family. Once you are a member you can post a story, ask a question or just browse what other folks are writing.

 



 
© 2013 - The Law Offices of Sean Patrick Cox, P.L.L.C.