2008 IRA Changes

This is an excellent article from Yahoo! Finance and MarketWatch tying together changes in the law, court rulings & private letter rulings (PLRs). Probably the biggest change is the one-year (2009) waiver of the required minimum distribution (RMD) enabled by the Worker, Retiree, & Employer Recovery Act of 2008 passed in response to the economic slowdown.

Long-Term Care & Durable Powers of Attorney

The following scenario came up recently with a Long-Term Care insurer:

The insured was in a position to need the benefits from her policy due to the onset of Alzheimer's but the insurer would not accept a claim filed by her husband and the insured, of course, was in no position to file the claim herself. What a Catch-22! No way to claim the benefits she had paid for for many years.

Fortunately, the insured had executed a Durable General Power of Attorney naming her husband and children attorneys-in-fact before the onset of her illness. The general power of attorney (POA) allowed her husband to file the claim in her place and because it was a durable POA, it continued to be valid even after she became incapacitated.

It should be noted that the insurer specifically denied a Health Care POA as granting sufficient authority to file the claim.

A durable general power of attorney, like all advance directive documents, should be drawn up by an attorney - specifically one experienced in estate planning. Planning ahead can save lots of hassle up the road.

Mortgages Catch Up

After months of watching Treasury rates fall and wondering when the impact would finally reach borrowers, mortgage rates moved swiftly beginning in late December and are now at levels where homeowners should investigate refinancing. According to bankrate.com, 30-year fixed rates are averaging 5.1%, while 15-year fixed are at 4.76%.

Good credit scores are a must, and be sure to negotiate low, fixed closing costs.