Jul 22

D.C. Circuit Strikes Down Heart of Obamacare

A ruling that came out this morning dealt a very severe blow to the Affordable Care Act. The ruling in Halbig v. Burwell states that persons who applied for insurance through the federal exchange on healthcare.gov are ineligible for subsidies of their premiums.

This stems from the actual language of the law stating that subsidies are available for people enrolled through “an Exchange established by the State.” Since 34 states did not create their own exchanges and the federal government, through healthcare.gov, established it for those states, no person in any of those states is eligible for subsidies. Most of the 34 states opting out are Republican states, including our state of Oklahoma and our neighbor Texas.

What does all of this mean? Well, as I am a tax attorney, for me it means that Obamacare just became a lot more budget friendly. The estimate on subsidies that will be cut off are about $36 Billion per year for up to 7.3 million people. (Essentially the vast majority of persons who signed up under the ACA only did so because they would receive subsidies.) The latest CBO report I saw estimated that Obamacare would run a $2 Trillion dollar deficit over the next ten years. If you take out $360 billion+, then it cuts the expected deficit by about 20%.
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What are the takeaways from this? First, the Congress that passed this hastily in 2010 needs to bear all of the blame. The law was passed by reconciliation through only one party’s votes. As Kevin W. Glass said about the ruling, “You write bad laws, you get bad laws.” Second, it is likely that poorer, healthy enrollees will drop out of the insurance marketplace, electing to pay the “tax” instead. Third, the insurance market will likely have to be directly subsidized, because if this law is not repealed, the whole industry will collapse under the weight of covering bad risk enrollees.

 

Jul 21

Planning for vacation

As we wind down on the last few days of summer, it is probably in some people’s plans to take a vacation. While you think of all that you will do as you travel, it is also a great idea to think of what needs to be done before you go.

A couple of scenarios and solutions you should consider:

  • If this is a trip without the kids, have you given the person you are leaving as caretaker a power of attorney for the children? If a child has to seek medical help and the parent or legal guardian is not present, there may not be anyone to authorize his/her care.
  • Also, if something were to happen to you, do you have the provisions for who you want to be guardian over the child and over your property you are leaving him/her?
  • If something happens to you on the trip, will your agents/relatives be able to access documents that show who you want to act to make medical decisions for you; or suppose you are tossed in jail and have to get bail money out of your bank account, can your agent get that access with you gone?
  • If you were to pass away, will your last wishes be made known or have you locked them away in a safe deposit box only you know about?

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Vacations should be fun and a time of escape. Make sure that you have all these worries squared away before leaving on your trip. Call for a free consultation about your estate planning to put your mind at ease and enjoy your holiday.

Jul 18

Estate planning word of the day – Trust

Black’s Law Dictionary defines “Trust” as “An equitable or beneficial right or title to land or other property, held for the beneficiary by another person, in whom resides legal title or ownership, recognized and enforced by courts of chancery.”

When most people think of a trust, though, they only think of it as probate avoidance technique. This flows from the legal definition above, though. If you think about probate, then it is the procedure for passing property owned by an individual at the time of his death. Trusts avoid this because the “beneficial right” is held separate from the “legal title”. Thus a trust does not die even though a Trustee, Grantor, or Beneficiary does die.

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If you would like to learn more about a trust, a last will and testament, or other estate planning documents, please feel free to contact me.

Jul 17

Busy times in the office

The old Chinese proverb is “May you live in interesting times.” I can say that these have been interesting the last few weeks.

In my previous five years as an estate planning attorney, I have prepared eight applications for tax exempt status. (I believe one even got caught up in the IRS targeting scandal, even though it was a cemetery association because it took nearly sixteen months for approval.) But the last two months, I have had three applications.
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Of course, I appreciate the business, but when I see the help to the rural areas that these charitable organizations will do for our community, and the fervor for getting them started, it makes me really appreciate the tax planning side of the law.

Apr 20

Happy Easter!!

Just a wish of a Happy Easter to my clients, friends and family here in Altus, Blair, Hollis, Hobart, Frederick, and the rest Some of these medications are Fluoxetine (Prozac), Tranylcypromine (Parnate), Sertraline (Zoloft), Isocarboxazid (Marplan), Amitriptyline (Elavil), Amoxipine (Asendin), Clomipramine (Anafranil) etc. heritageihc.com levitra 20 mg Most of men expect to deal with erectile dysfunction later viagra soft 100mg in their life. cheap levitra 20mg The clinic trials of its vital ingredient – Sildenafil Citrate. The production cost of the medicine is low and lots of sildenafil tablets 50mg producing company is making the medicine and supplying it with enough blood. of southwest Oklahoma.

I pray that each of us remembers the sacrifice made on our behalf and that we live a life worth living.