The factual background: Does this sound familiar? An elderly single female homeowner with no immediate family befriends or is befriended by the man providing landscaping services at her home.

 At some point she executes a quit-claim deed transferring her home to the landscaper. On the same day she executes a durable power of attorney instrument naming him as her agent for financial and health care decision making. Relying on the durable power of attorney instrument, the landscaper makes withdrawals from several bank accounts of the homeowner.

Both documents were signed in the presence of a Notary Public.  The Notary Public signed both documents as a witness.  The second witness to both documents was the landscaper.

Less than three months after executing both documents, the homeowner died.  Her nephew was appointed as the administrator of her estate, and, in that capacity, he sought to invalidate the quit-claim deed and the bank account withdrawals.

Existing Connecticut law: Connecticut statutory provisions require that a deed conveying real estate be “attested to by two witnesses.” Connecticut statutory provisions concerning the execution of a durable power of attorney instrument contain similar requirements.  The statutes do not expressly say that the grantee named in the deed or the agent named in the durable power of attorney instrument is precluded from being one of the witnesses. 

Holding of the case: The Court states that the “use of subscribing witnesses…serves the purpose of assuring that the conveyance is genuine and not fraudulent”, and that “there is a more profound risk of a fraudulent conveyance if grantors and grantees are permitted to act as the statutorily required witnesses to their own deeds.” (p.274).  Because the landscaper signed as one of the two statutorily required witnesses, the deed and the bank account withdrawals were invalidated.

Moral of the story: The elderly are particularly susceptible to overreaching and abuse, particularly those that are lonely and frail. The case creates an important safeguard for that vulnerable population.

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• Determine the goals of the relationship and the purpose for entering into an independent contractor relationship as opposed to hiring an employee.
• Review the Connecticut laws regarding independent contractors to be sure that the Independent Sales Representative will in fact classify as an independent contractor and not an employee.
• Accurately define confidential information that will be shared with the Independent Sales Representative and ensure that restrictions are set forth in the Agreement to protect such confidential information.
• Define the geographic territory that the Independent Sales Representative will be covering.
• Define the types and frequency of reports, forecasts, and correspondence that the Independent Sales Representative will need to deliver to the company. 
• State whether or not the company can engage other Independent Sales Representatives and whether or not the Independent Sales Representative can work with other competing and/or non competing companies. 
• State how the company will provide material, advertising information, and pricing to the Independent Sales Representative, how that material should be used, and when that material must be returned to the company.

If you are considering engaging an Independent Sales Representative to assist your business, we can guide you through these considerations and more, as well as draft an Independent Sales Representative Agreement that protects you and your business and helps you to achieve your goals.

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• You can name the people who will be in charge of the trust.
• You can direct that funds in the trust be used only to supplement benefits provided by government programs such as Medicaid or Supplemental Security Income (SSI).
• You can direct what happens to any money still in the trust after the beneficiary with special needs has died.
• You can create and fund the trust while you are alive to see how it works, or you can say that it comes into effect only after you have died.

We have experience preparing sensible and cost effective estate plans that include special needs trusts as part of the planning. We encourage you to call us to discuss this important and sensitive subject.

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The White House has addressed the issue of privacy and the internet in the past and most recently has proposed a Consumer Privacy Bill of Rights for legislative consideration.  The proposed Consumer Privacy Bill of Rights calls for:

• Individual Control: Consumers have a right to exercise control over what personal data companies collect from them and how they use it.
• Transparency: Consumers have a right to easily understandable and accessible information about privacy and security practices.
• Respect for Context: Consumers have a right to expect that companies will collect, use, and disclose personal data in ways that are consistent with the context in which consumers provide the data.
• Security: Consumers have a right to secure and responsible handling of personal data.
• Access and Accuracy: Consumers have a right to access and correct personal data in usable formats, in a manner that is appropriate to the sensitivity of the data and the risk of adverse consequences to consumers if the data is inaccurate.
• Focused Collection: Consumers have a right to reasonable limits on the personal data that companies collect and retain.
• Accountability: Consumers have a right to have personal data handled by companies with appropriate measures in place to assure they adhere to the Consumer Privacy Bill of Rights.

To read the full text please click here: Consumer Privacy Bill of Rights

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• The non-injured spouse is entitled to monetary damages for all of the ways in which he/she has lost the care and companionship of the injured spouse.
• In order to assert a claim for loss of consortium, the parties must have been married at the time of the injury.
• The non-injured spouse’s claim for damages is considered “derivative” which means if the injured party settles his/her claim it extinguishes the loss of consortium claim. A 2011 opinion of the Connecticut Supreme Court affirmed this conclusion.
• Although similar principles apply to relationships between an injured parent and child or an injured child and parent, the Connecticut Supreme Court has not recognized a separate cause of action for parental/filial loss of consortium.

Strategizing the way a claim for damages is presented to an insurance company, judge or jury is critically important. We have years of experience helping people who have been injured by others.  Feel free to contact us if you have been injured and have questions about your rights.

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• Be careful to define what is meant by “closing costs”: Does it include points or other fees charged by the buyer’s lender? The buyer’s attorney’s fee? The buyer’s recording fees? The phrase “closing costs” means different things to different people and should be clarified, in advance.
• Keep in mind that the state and local conveyance tax will be imposed on the gross sales price, not the adjusted sales price.
• Keep in mind that the broker’s commission also will be based on the gross sales price, not the adjusted sales price, unless the broker expressly agrees otherwise.

We provide affordable legal representation to individuals who are selling and/or buying homes. Our services include a careful review of the sales agreement before it is signed so we can advise you of your rights and responsibilities. Feel free to contact us if you are buying or selling a home.

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• Always be sure to obtain a copy of the Certificate of Incorporation and Form 1023 before accepting a position on the board.
• Before and during service, regularly review the Non Profit’s Conflict of Interest Policy.
• Ensure that the purpose/mission of the Non Profit matches the Certificate of Incorporation as the Non Profit grows.
• Always review the Annual Tax forms before they are filed.

We can help you address these and other issues you should be aware of in connection with service on a non profit organization’s board of directors.

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• The veteran served at least 90 days of active military service, 1 day of which was during a war time period; and
• The veteran was discharged from service under conditions other than dishonorable; and
• The veteran’s countable family income is below a yearly limit set by Congress; and
• The veteran’s “net worth” (the net value of all of the assets of the veteran and his or her dependents) is not excessive.

Allison DePaola is a Veteran’s Benefits Planning Accredited Attorney, #20213.

Please contact our office if you need help with veteran’s benefit issues, including the Pension, Aid and Attendance, or Homebound benefit.  We stay abreast of changes in the law, and have experience advising clients in preparing and filing VA benefits applications. We are prepared to counsel you to determine if you or a family member are eligible to receive such benefits.

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By calculating the payments in this manner, the annuity payments of the GRAT term will equal or almost equal the value of the property originally contributed to the GRAT (called “zeroing out”).  Since the IRS focuses on the prescribed interest rate, not the actual interest rate, the assets in the GRAT that grow at an interest rate that surpasses the prescribed IRS interest rate can be passed on to trust beneficiaries tax-free at the end of the GRAT term. 

Although the assets pass to beneficiaries tax free, setting up a GRAT can trigger a tax.  If the calculation results in additional assets left over at the end of the GRAT term, the transfer of those assets is a taxable event. 

Generally, GRATs are a wealth transfer tool to be used in a low interest rate environment because the lower interest rate increases the chance that the gift will be larger.  Please note that this is a very simplified explanation of a complicated topic.  GRAT planning is particularly complex and there are certain risk factors, including tax law risks, valuation risks, and the possibility that the grantor might die during the term of the trust, that must be reviewed and analyzed in each individual case.

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