"Change is inevitable...except from a vending machine!"
--Robert C. Gallagher

There is no season more dramatic than spring, and this spring is especially ripe with change. Change is all around us, not only with blue skies, the smell of blooming flowers, and the touch of warmer days, but also with the buzzing democratic election process and an economy challenging us all. Spring is timed perfectly to bring us out of our winter placidity and remind us that nothing stays the same for long, and perhaps the best way to navigate the changes and challenges on the road ahead is to fully embrace spring's promise of brighter days and to move forward energized in that belief.

Client Seminar

Tuesday - MAY 13, 2008 - 7:00PM
Trust Administration for Married Couples

Our spring seminar addresses trust administration for married couples. It will cover special trust administration issues which arise after the death of a spouse. This seminar is a follow up to our Fall 2007 seminar which focused on general guidelines for handling trust administration. In this seminar we will take an in-depth look at the more complex issues involved in handling trust administration specifically after a spouse has died.

Here to Serve!

In this season known for its changes, we at Carney & Sugai would like to take this opportunity to remind you that there are some things that never change. As a valued client, you are always given the highest priority by our entire staff. We are here to serve you, and are always available to answer questions or discuss any concerns you might have regarding your estate planning.

FEDERAL LAW CHANGES

Economic Stimulus Package

As part of the Economic Stimulus Package, the IRS will begin sending out rebate payments to taxpayers beginning in May of 2008. In order to receive this rebate, you must file your 2007 tax return. Thus, for many retired Americans who do not normally file a return, a return will now need to be filed to receive the rebate. Specific requirements to receive the rebate include filing your 2007 return and having annual income of at least $3,000. Supplemental Security Income (SSI) does not count towards the qualifying income amount, but social security, certain veterans' benefits, and railroad retirement benefits will count towards the qualifying income requirement. The IRS provides assistance and answers questions regarding how to claim the rebate, as well as providing estimates on the amount you can expect to receive on their website: www.irs.gov. A note of caution - scam artists are already trying to get to your money by calling and claiming to be from the IRS and needing bank information to deposit your rebate. Don't be fooled! File your return, and the IRS will send you the rebate if you are eligible.

IRS WARNS: BEWARE OF REBATE SCAMS!

Over 130 million households are scheduled to receive a rebate. With all that money floating around, scammers are already on the prowl, and their sole purpose is to separate you from your money. Most scams are initiated over the phone or by e-mail. To protect yourself from being tricked by a crook, simply remember that the IRS will ONLY CONTACT YOU BY MAIL - the IRS never sends unsolicited e-mails or makes unsolicited telephones calls. This applies to refunds on your tax returns as well.

CALIFORNIA LAW CHANGES

Notaries

California enacted some new law changes with regard to Notaries. The most significant of these will impact all of our clients who need to have documents notarized. We can no longer certify as notaries that we have personal knowledge regarding your identity. Now, all notaries must be able to document proof of identity for every document notarized. Thus, if you come to the office to have a document notarized, please remember you will be required to show us a current official government issued picture identification. These include a valid passport, military identification card, driver's license, or senior citizen identification card. This may be difficult for some of our elderly clients. Therefore, we recommend that seniors who have stopped driving either keep their passports current, or obtain a senior identification card from the DMV.

Conservatorship

As previously reported, the Omnibus Conservatorship and Guardianship Reform Act of 2006 mandated several changes to the conservatorship laws which are now becoming mandatory. This act substantially increased the amount of paperwork required and the steps to be taken for a conservatorship. While most changes typically only impact the matters handled by the attorney, the conservator must be aware that these laws require substantially more reporting, not only to the conservatee and the conservatee's family, but also to the court.

Given the increased complexity of conservatorships and the corresponding increased cost, it is always recommended that everyone establish an estate plan with powers of attorney for both financial affairs and for health care decisions as well as a trust, if there are substantial assets, in order to avoid the need for a court ordered conservatorship. If you have any questions regarding conseravtorships or estate planning methods to avoid a conservatorship, please contact us.

COMPUTER PASSWORD SAFETY

Unfortunately, there are no scam proof passwords. Any password stored on a computer is obtainable. However, passwords which are more commonly used are hacked more often. Commonly used passwords such as "12345", "password1", or your name are risky. Others might be your pet's name or part of your social security number. All of these are easy for a hacker to decipher, thus making your private information vulnerable.

A few tips for safer passwords are: passwords with 8 or more characters, combining parts of two unusual words such as "gastrocumulus", mixing capital and lowercase characters with symbols or numbers such as "cs164@LGH", or combining foreign and English words such as "buenoday". Another suggestion to make your passwords safer is to simply choose ones that people cannot guess, such as "yt#08*" or "2*M1", which are created by randomly hitting different keys. Of course, especially with random passwords, you should write them down to keep them safe and to ensure you don't forget what they are.

KEEPING TRACK OF YOUR PASSWORDS

We have all heard about the importance of keeping a copy of our driver's license, credit cards, and passports in a safe place. The same holds true for log-in and password information for the various Web sites on which we are registered such as banks, to pay bills, or to make purchases. It is an excellent idea to make a list of the Web site name, log-in, and password you have registered with those web sites. Web sites will often require different information for your log-in and password, and can thus create quite an assortment to remember.

An "insurance" policy to protect the loss of this information would be to print a hard copy of each login and password to store in a safe place with other important documents. This way, if you forget any of the information, you have it secured safely in a location away from your computer. An important added benefit to storing this information in one place is that in the event of an emergency leaving you incapacitated, or in the event of your death, this would be valuable information for family members left to handle your affairs.

SCAM ALERT: Credit Card Scam to Obtain Your 3 Digit Security Code

Scammers are crafty with no limit to their ingenuity and aggressiveness. A new credit card scam targeting credit card users, particularly VISA and MasterCard customers, has recently surfaced. It goes like this: you receive a call from the Security/Fraud division of your credit card company. They are calling to confirm if you authorized a charge from a company they are investigating which shows up on your card. Once you confirm that you did not make the charge, you are advised that the amount will be credited back to your card. The caller then verifies your address by reading it off to you (it has been secured from public records and that is why they have chosen you as a target). You are then asked to verify that you are in possession of the card by providing the credit card verification code on the back of your card, which is what the scammer is ultimately after. (Note: Credit card companies already have the information on your card - there is no need for them to ask for it.) Once you have read off the number, the scammer confirms that you have provided the correct number, and BINGO - you have given them what they want! The scam has worked well because you have said very little, just to confirm information, and you were never asked outright for your credit card number so you are not suspicious. The scammer goes on to use your card every few days for Internet purchases under $500 (the amount which flags security to take a closer look), and you aren't aware of the fraudulent credit card activity until your bill arrives.

If you get a call like this, hang up, notify your credit card company and the police department.

Medicare Coverage - Outside the U.S.

This time of year is travel time for many of us. If you are planning to travel outside the U.S., it is always recommended that you carry your Medicare insurance information with you in the event of an illness or accident while abroad. If you haven't given thought, done research, or asked questions about exactly what medical services will be covered while outside of U.S. borders, you should. Then determine if a supplemental Medicare insurance policy is warranted. If you are insured by Medicare, there are several things you should know before beginning a trip abroad. In most situations, under the original Medicare Plan (Part A and/or Part B), Medicare will not pay for health care, supplies, or prescriptions that you get outside the U.S.

Travel on a cruise ship qualifies for a couple of exceptions to this rule. If you are within six hours of any U.S. port (or in a U.S. port), Medicare will pay for services rendered aboard the ship as long as the doctor is allowed under certain laws to provide Medicare services on the ship. If you are outside the six hour marker, Medicare does not usually pay benefits even if the ship you are on is a ship of U.S. registry. However, Medicare might pay for health care services you get from a ship's doctor if you are admitted to a U.S., Canadian, or Mexican hospital for a Medicare-covered emergency stay. To be covered in this situation, you must have received emergency services by a ship's doctor while outside U.S. waters, be admitted to a hospital in one of those countries, and the services in the hospital must be for the same condition you were treated for aboard the ship. Medicare insurance to fill in the gaps of what isn't covered can be secured through a Medicare supplement insurance policy (Medigap), a Medicare Advantage Plan, or travel insurance.

There are a few instances where Medicare is mandated to cover treatment in a foreign hospital such as: you live in the U.S. and the nearest hospital is a foreign hospital; you are away from home, but still in the U.S. and have a Medicare emergency and a foreign hospital is closer or easier to get to than the nearest U.S. hospital that can treat your condition; or you are leaving Alaska and crossing Canada without delay to another state, you have a Medicare emergency, and a Canadian hospital is closer and easier to get to than one in the U.S. Services covered in all these situations are the same as what is covered under the original Medicare Plan.

To fully protect yourself while traveling, please consult your insurance provider.

Staying Healthy While Traveling - Pointers for Seniors

Prevention is always better than a cure, especially when traveling. Here are some preventative steps that a senior traveler can take before leaving on a trip to lessen the probability that an illness or accident might disrupt their travel adventure. Consider the following:

1) Plan ahead - see your doctor at least 6 weeks before you go. Some vaccines need 6 weeks to be at their most efficient.

2) Have both a medical and dental check up before you go so that you are aware of any problems and can find out about which medications you might want to take with you.

3) Be prepared - find out what your health policy will cover while in another country.

4) Carry enough of your regular medications in their original containers and prescriptions for them - just in case!

5) Bring your eyeglass prescriptions in case you lose your glasses and are dependent on them.

6) Go over your travel destinations with your doctors so that they can advise what, if any, vaccinations are needed for your destination and to make sure previous vaccinations don't need to be updated.

7) If you have medical issues, consider an internationally recognized medical alert bracelet which carries pertinent medical information about you.

For additional pointers about seniors staying healthy while traveling, check out the website: www.SeniorsToTravel.com.