College Station's new zero rise floodplain ordinance taking shape

The City of College Station has come out with a draft zero rise floodplain ordinance. It is a pretty significant departure from current city policy. Those interested in real estate development in the City of College Station should attend a stakeholder meeting on April 13th at the College Station Conference Center from 11:30 am to 1:00 pm. Lunch will be served at that meeting.

Estate Tax under Obama's Budget

Folks have been worried for some time about the changes to the current estate tax system with the change in President. President Obama's current budget does make a coupld of significant changes to the current estate tax system.

First, the estate tax exemption for 2010 is replaced in toto. Previously, there was an unlimited exemption in 2010, which meant that no estates would be subject to estate tax. Now, that has changed, and the unlimited exemption has been removed for 2010.

Second, the estate tax exemption amount for 2010 and the following years has been changed to $3.5 million per individual. Thus, with proper estate tax planning, a married couple can shield $7 million from the estate tax.

While it would have been nice to have the unlimited exemption in 2010, the 2011 exemption is a significant increase from the $1 million exemption amount that was scheduled for those years. Thus, although there is some disappointment in this news, there is also a significant silver lining that will probably be a bigger benefit to more Americans.

Little-Known Government Program Pays the Cost of Elder Care

WHAT IF 33% OF ALL SENIORS IN THIS COUNTRY could receive up to $1,949 a month in additional income from the government to help cover their elder care costs? THEY CAN!

Under the right circumstances, a little-known federal program will pay additional income to cover long term care costs for at least 1/3 of all US senior households -- that's how many war veterans or their surviving spouses there are in this country. But the provisions of this program are such a well-kept secret that only 4.7% of US seniors are actually receiving the benefit. The great news about this program is the Department of Veterans Affairs will pay you to hire your family, friends or just about anyone to take care of you (Caregiving spouses can't be paid under this program). The program is called "Veterans Pension."

Most people who have heard about Pension know that it will cover the costs of assisted living and, in some cases, cover nursing home costs as well. But the majority of those receiving long term care in this country are in their homes. Estimates are that approximately 70% to 80% of all long term care is being provided in the home. All of the information available about Pension overlooks the fact that this benefit can also be used to pay for home care.

It also comes as a surprise to most people that the Department of Veterans Affairs will allow veterans' households to include the annual cost of paying any person such as family members, friends or hired help for care when calculating the Pension benefit. This annual cost is deducted from household income and used to calculate a lower "countable income" which in turn enables families to receive this disability income from VA. Even though VA claims the benefit is for low income families, because of the special provision in the regulations -- allowing for deduction for care costs -- households earning between $3,000 to $6,000 a month or more can still qualify for Pension under the right conditions.

This extra income can be a welcome benefit for families struggling to provide eldercare for loved ones at home. Under the right circumstances, this annualized medical expense for the cost of family members, friends or any other person providing care, could create an additional household income of up to $1,056 a month for a single surviving spouse of a veteran, up to $1,644 a month for a single veteran or up to $1,949 a month for a couple.

If the disabled care recipient has been rated "housebound" or in need of "aid and attendance" by VA, all fees paid to an in-home attendant will be allowed as long as the attendant provides some medical or nursing services for the disabled person. The attendant does not have to be a licensed health professional. There is also no need to distinguish between medical and nonmedical services -- all are deductible.

For a disabled person who has been rated "in need of aid and attendance" or "housebound", a family member will be considered an in-home attendant, but that family member has to be paid for services duly rendered. There is potential for fraud here where a family member may move into the home and ostensibly receive payment as a caregiver but not actually provide the level of care paid for. Documentation for this care must be provided to VA, and it is reasonable for VA to question whether the services being purchased from a family member living in the household are legitimate. Such arrangements should be extensively documented and completely arm's-length.

The care arrangements and payment for home care must be made prior to application and there must be evidence that this care is needed on an ongoing and regular basis. We recommend a formal care contract and weekly invoice billing for services. Money must exchange hands and federal law requires employment taxes must be withheld and there must be evidence of this. All of this documentation must be provided as proof to VA when making application for the pension benefit. Costs for these services must be unreimbursed; meaning these costs are not paid by insurance, by contributions from the family or from other sources. VA will allow, however, family caregivers being paid by their loved ones, to turn around and pay the household bills for their loved ones to help defray the cost of the care.

Due to the need for a rating, documentation for annualizing care costs and the extensive proof needed to show the caregiver is indeed an employee of the care recipient, most people should not try this on their own. An expert in this area should be sought to help with the application in order to avoid lengthy delays in awarding a benefit or a possible denial of benefits. For a list of individuals or companies in your area who understand how to get this benefit go to http://www.longtermcarelink.net/ref_veterans_consultants.htm

College Station's Draft Tree Preservation Ordinance

On March 26, 2009, the College Station City Council is going to consider a tree preservation ordinance that has been in the works for some time. This ordinance will affect both developers and homeowners, so it is something that all should be aware of.

The ordinance's purpose is stated as: "The purpose and intent of this Section is to promote the preservation of trees and tree stands during construction to facilitate site design and construction that contributes to the long-term viability of existing trees and to develop a process to control the removal of trees. It is further the purpose of this ordinance to prevent the untimely and indiscriminate removal or destruction of trees, maintain and enhance a positive image of the City and to protect trees and promote the ecological environmental and aesthetic values of the City."

The ordinance will require a tree removal permit before removing trees greater than 8+ inches in diameter or before clearing a site containing such trees. It also has special requirements for "protected trees", a term which is defined in the ordinance. In order to remove these trees, there must be replacement trees planted.

The ordinance is very specific and should be evaluated in detail. If you want a copy of the draft, contact the City of College Station or e-mail us at chris@brazoslawyers.com.

As always, if you have a legal need, contact Peterson Law Group at 979-703-7014 or through our website, BrazosLawyers.com.

2009 First Time Home Buyer Tax Credit

There is a new tax credit available for first time home buyers. The tax credit is $8,000 and does not have to be repaid.

Am I eligible?

To qualify, you must be a buyer who has not owned a principal residence in the 3 years prior to this purchase, and you must be a US citizen who files tax returns.

Does it matter how much money I make?

You can claim the full tax credit if you are single and make less than $75,000 or married and make less than $150,000. You can take a partial credit if you make less than $95,000 as a single person or $170,000 as a couple. The credit is not available if you make more than those amounts.

When do I have to buy a home?

Home purchases made between January 1, 2009 and December 1, 2009 qualify for the tax credit. The transaction must officially "close" during that time period, so don't wait until the last minute.

What types of homes qualify?

All single family homes, townhomes and condominiums qualify as long as you plan to use it as your principal residence (and meet the other requirements above).

How does the credit work?

When you file your tax return, you will apply the tax credit against the amount of income taxes you owe. So, if you owe $10,000, your tax bill will be reduced to $2,000. If you owe $5,000, you will get a tax refund of $3,000. Remember that if you are employed and have been paying withholding from your paycheck or have paid quarterly estimated taxes, you already have tax money stored up with the IRS. This credit is in addition to what you have personally paid.

To find out more information, check out www.federal housingtaxcredit.com.

Nursing Homes for Veterans

Nursing home coverage for veterans is available from two sources within the Department of Veterans Affairs -- the veterans health care system and the state veterans homes system.

Nursing Home Coverage through the VA Health Care System
Nursing home coverage along with other long term care services such as home care and assisted living as well as geriatric care management are available through the Veterans Health Administration for qualifying veterans.

In order to get into the veterans health care program, the veteran must have service-connected disabilities, or be below a qualifying income level or be receiving Veterans Pension income. Once in the system, veterans are not guaranteed long term care services, including nursing home care, unless they meet specific requirements. Here is a list of these requirements for nursing home coverage.

Who is Eligible for Nursing Home Care

• Any veteran who has a service-connected disability rating of 70 percent or more;
• A veteran who is rated 60 percent service-connected and is unemployable or has an official rating of "permanent and total disabled;"
• A veteran with combined disability ratings of 70 percent or more;
• A veteran whose service-connected disability is clinically determined to require nursing home care;
• Nonservice-connected veterans and those officially referred to as "zero percent, noncompensable, service-connected" veterans who require nursing home care for any nonservice-connected disability and who meet income and asset criteria; or
• If space and resources are available, other veterans on a case-by-case basis with priority given to service-connected veterans and those who need care for post-acute rehabilitation, respite, hospice, geriatric evaluation and management, or spinal cord injury.

VA's nursing home health system programs include VA-operated nursing home care units and contract community nursing homes. Many VA hospitals operate nursing home care units located in or near the hospital. Other hospitals, without adequate nursing home beds, contract with approximately 2,500 community private nursing homes nationwide to provide services.

State Veterans Homes
State veterans homes fill an important need for veterans with low income and veterans who desire to spend their last years with "comrades" from former active-duty. The predominant service offered is nursing home care. VA nursing homes must be licensed for their particular state and conform with skilled or intermediate nursing services offered in private sector nursing homes in that state. State homes may also offer assisted living or domiciliary care which is a form of supported independent living.

Every state has at least one veterans home and some states like Oklahoma have a number of them. There is great demand for the services of these homes, but lack of federal and state funding has created a backlog of well over 130 homes that are waiting to be built.

Unlike private sector nursing homes where the family can walk in the front door and possibly that same day make arrangements for a bed for their loved one, state veterans homes have an application process that could take a number of weeks or months. Many state homes have waiting lists especially for their Alzheimer's long term care units.

No facilities are entirely free to any veteran with an income. The veteran must pay his or her share of the cost. In some states the veterans contribution rates are set at a certain level and if there's not enough income the family may have to make up the difference. Federal legislation, effective 2007, also allows the federal government to substantially subsidize the cost of veterans with service-connected disabilities in state veterans homes.

State Veterans Homes Per Diem Program
The Veterans Administration pays the state veterans homes an annually adjusted rate per day for each veteran in the home. This is called the per diem. The 2008 nursing per diem amount is $74.42 and for domiciliary care it is $34.40. Adult Day Health Care – up to one-half of the cost of care -- cannot exceed $66.82 per day. The goal of state veterans homes is to get Congress to increase the per diem rate for nursing care to 75% of the state private nursing rates. In most states the per diem falls well short of this goal.

The per diem program and construction subsidies mean that State veterans homes can charge less money for their services than private facilities. Some states have a set rate, as an example $1,400 a month, and they may also be relying on qualified veterans receiving the Pension benefit with aid and attendance plus the per diem to cover their actual costs. Other states may charge a percentage of the veteran's income but be relying on other subsidies to cover the rest of the cost. Some state homes can receive Medicaid support as well.

Most of the states with income-determined rates are selective about the veterans they accept. These states may rely on a variety of private and public sources to help fund the cost of care.

Eligibility and Application Requirements for State Veterans Homes
From state to state, facilities vary in their rules for eligible veterans. And even in the same state it is common, where there is more than one state home, for some homes to have very stringent eligibility rules and others to be more lenient. These differing rules are probably based on the demand for care and the available beds in that particular geographic area.

Some homes require the veteran to be totally disabled and unable to earn an income. Some evaluate on the basis of medical need or age. Some evaluate entirely on income -- meaning applicants above a certain level will not be accepted. Some accept only former active-duty veterans, while others accept all who were in the military whether active duty or reserve. Still others accept only veterans who served during a period of war. Some homes accept the spouses or surviving spouses of veterans and some will accept the parents of veterans but restrict that to the parents of veterans who died while in service (Goldstar parents).

Federal regulations allow that 25% of the bed occupants at any one time may be veteran-related family members, i.e., spouses, surviving spouses, and/or gold star parents who are not entitled to payment of VA aid. When a State Home accepts grant assistance for a construction project, 75% of the bed occupants at the facility must be veterans.

Domicile residency requirements vary from state to state. The most stringent seems to be a three-year prior residency in the state whereas other homes may only require 90 days of residency.

All states require an application process to get into a home. Typically a committee or board will approve or disapprove each application. Many states have waiting lists for available beds.

A current contact list of all state veterans homes is available at http://www.longtermcarelink.net/ref_state_veterans_va_nursing_homes.htm

To Will or Not to Will

The Texas Bar Journal has a new client page that contains very basic information about why everyone should have a will. Click here for the link. If you need a will, please contact Peterson Law Group at BrazosLawyers.com or 979-703-7014.