"We cannot adjust the wind, but we can adjust the sails."
--Unknown Author

Carney & Sugai's commitment to our clients is founded on a sincere interest in our clients' welfare. An interest which continually motivates us to seek and gather information addressing your problems and concerns. Not limited solely to legal matters, we strive to uphold a tradition of responsible community involvement relating particularly to areas that may concern you. This commitment inspired us this year to join in the Alzheimer's Association Memory Walk. Our staff's participation in the Silicon Valley Memory Walk helped raise more than $209,000 for research and support care for millions of individuals and families affected by this disease. It is with satisfaction that we participate in events such as the Memory Walk, knowing that we are part of the path leading to solutions. You, our clients, motivate us to get involved.

2008 FALL SEMINAR

November 6th, 7:00 p.m.
Section 1031 Exchanges and Tenants-in-Common properties

We are excited to welcome Bill Wiles, founder of Horizon Investments, as our Fall Seminar guest speaker. If you are contemplating new investment options or the sale of investment property, you won't want to miss this informative discussion regarding the ins and outs, benefits and issues of Section 1031 Exchanges and Tenants-in-common investments, as well as current market conditions. Bring your questions - Mr. Wiles will end the evening with a question and answer session.

Are you aware that Carney & Sugai maintains a library of resources for our clients' use centered around senior issues and concerns? As part of our mission to provide comprehensive elder law services, we have collected brochures, resource guides, educational tools and referral sources to assist our clients with their areas of concern. Information related to topics such as Alzheimer's disease, hospice, home health care, organ donation and senior housing are available. New additions available to borrow include a safe driving DVD, a small claims guide for nursing home residents addressing the right to recover stolen property and enforce resident rights, and a guide to insurance coverage from the FDIC. Feel free to ask us about any of your concerns and we will be happy to share our resources with you.

CALIFORNIA LAW CHANGES

Prop 13 - Reassessment Between Registered Domestic Partners

The California legislature has recently passed legislation to provide an exemption for registered domestic partners from property tax reassessment on the transfer of property from one domestic partner to the other. The bill is retroactive to January 1, 2000, thus registered domestic partners who had their property reassessed after January 1, 2000, due to a change of ownership from one domestic partner to the other partner, may now apply for a reversal of reassessment and refund of excess property tax paid. However, this claim for refund must be made no later than June 30, 2009.

Any one who believes they may have a claim for a property tax refund under this new law may contact our office for assistance.

Medi-Cal

Another law recently signed by the Governor is intended to implement in California the Federal Deficit Reduction Act of 2005 (DRA) which changed the rules for Medi-Cal (Medi-Caid) eligibility. Although the DRA was passed almost three years ago, California has continued to operate under the old law. Despite passage of the new law in California, its provisions cannot take effect until the Department of Health Care Services (DHCS) promulgates regulations to implement them. The new law will only be applied prospectively on the date the regulations are adopted which is expected to be sometime in mid 2009. Until then, Californians will continue to qualify for Medi-Cal under the old law rather than the more onerous new one.

Any clients with questions or concerns regarding Medi-Cal eligibility or how the new law will effect their Medi-Cal eligibility should contact our office.

Probate Filing Fees

In 2003 the California Legislature enacted a graduated scale of filing fees for probate cases based on the size of the probate estate. Recent case law overturned this graduated fee schedule as a tax on inheritance despite its classification as a fee. A refund can now be obtained for the excess filing fee paid for any estates opened between August 2003 and January 1, 2008, above the base fee amount. Each county has a separate process to claim the refund. This firm is in the process of assisting our clients obtain the refund due them.

Should you know of other family or friends who may be eligible for the graduated filing fee refund, please let them know about the law change. If they wish to pursue obtaining a refund for the graduated filing fee, they may contact our office for assistance.

FEDERAL LAW CHANGES

FDIC Limit Changes

When President Bush signed the Emergency Economic Stabilization Act of 2008, the basic limit on Federal Deposit Insurance Coverage was temporarily raised from $100,000 to $250,000 per depositor. The legislation authorizing the increase in FDIC limits makes the change effective October 3, 2008, through December 31, 2009, at which time the coverage will revert back to the $100,000 limit. The FDIC insures funds in deposit accounts, money market accounts and CD's. The FDIC provides separate insurance coverage for deposits held in different ownership categories such as single, joint, IRAs and trust accounts. Coverage is per owner at each FDIC insured bank (and per beneficiary for trust accounts - subject to specific limitations and requirements). This legislation did not increase coverage for retirement accounts at each FDIC insured bank, which continues to be $250,000.

Direct Deposit of Federal Benefits

Direct deposit is not only easier, but a safer way to get your paychecks or government benefits than actual checks, and there is an added long-range benefit for all of us. 72% of seniors over 65, but only 59% of Americans aged 45-64, use direct deposit to receive social security and other federal benefits. Half of the baby-boomer generation choose getting a check in the mail over direct deposit into their bank account. Why? A recent survey uncovered several reasons including a sense of greater control when visiting the bank in person to deposit checks or a lack of trust in the safety of direct deposit.

While the safety and control of their funds appear the main concerns for most individuals, the reality is that direct deposit is actually safer. Funds are transferred into your account the same time each month, thereby giving you more control over your cash flow, direct deposit eliminates the risk of lost or stolen checks and helps protect against identity theft or check fraud. Statistics show that you are 30 times more likely to have problems with paper checks than direct deposit. The US Treasury asserts: "No direct deposit payment has ever been lost or stolen, while last year alone half a million people reported problems receiving checks", and "95% of those who used direct deposit were pleased with the process, reporting that their money was safely in their accounts on time, every time."

There is a significant long-range benefit to direct deposit as well. It costs 75¢ more to mail a federal benefit check than to pay it electronically. The cost to the Federal government is $12 million annually to mail benefit checks. The U.S. Department of the Treasury and the Federal Reserve Bank sponsor a national campaign (GoDirect) designed to motivate more Americans to select direct deposit for their Social Security, Supplemental Security Income and other Federal benefits. This campaign focuses on the future when the number of people receiving government checks will boom and the cost to mail paper checks will skyrocket. The money saved by reducing the number of paper checks mailed will be used to help defray future costs of Social Security.

If you have not yet selected direct deposit for your Federal government benefit, you can do so by signing up at www.GoDirect.org or call 1-800-333-1795.

National Memory Screening Day

November 18, 2008

1 in 10 Americans over the age of 65 and nearly half of those over 85 have Alzheimer's disease. Reports show a majority of individuals concerned about memory loss have not discussed their concerns with anyone, including their doctor. Individuals need to be pro-active about their own memory health. It is essential to diagnose memory loss in its early stages since it can be indicative of a more serious medical condition and screening can be the first step. If you are concerned about memory loss, take advantage of free screenings on November 18, 2008, as part of the annual National Memory Screening Day sponsored by the Alzheimer's Foundation of America "AFA". On this day, health care organizations and health care professionals offer free, confidential screenings, follow-up resources and educational materials to those concerned about memory loss. The screenings promote early detection of Alzheimer's disease and related illnesses, and encourage appropriate intervention.

Memory screenings are private and simple. They average 10 minutes and consist of questions and tasks to assess memory. The screenings provide participants with an opportunity to identify treatable causes of memory problems, such as vitamin deficiency or adverse reactions to medication and with the opportunity to embark upon treatment options including medications for diseases like Alzheimer's. The AFA urges anyone concerned about changes in memory or other mental functions to visit a screening site. Warning signs include: forgetting people's names and events, asking repetitive questions, loss of verbal or written skills, confusion over daily routines and erratic mood swings. Memory screenings do not diagnose an illness. Individuals with low scores or who have concerns about their memory are advised to consult a qualified health care professional.

Local testing locations:

The Forum at Rancho San Antonio
23500 Cristo Rey Dr., Cupertino (650-944-0112)

Villa Siena
1855 Miramonte Ave., Mtn. View (650-961-6484)

For other testing locations, call the Alzheimer's Foundation of America at 800-AFA-8484, check on-line at www.afascreenings.org or call our office.

Senior Guide for Safe Driving

Tips for Refreshing, Assessing and Improving Your Driving Skills

By 2020 over 40 million licensed drivers will be over the age of 65. This has ignited a debate about when someone should legally be prevented from driving. Experts suggest, however, that our immediate focus should be on how to keep driving safely for as long as possible. Preparation for safe driving should start long before driving becomes a problem. The DMV, AAA and AARP all recognize the need for education in this area and have developed programs to help older drivers recognize and address common physiological problems that affect their driving ability.

There are a number of things older drivers can do to keep driving safely. Changes in car equipment including equipment add-ons and new technology for our vehicles can make a substantial difference. Driver fitness, while overlooked, can improve driving performance through a regime of strength and flexibility exercises. Flexibility of the neck is important for checking for blind spots. Hand, arm and leg strength can help reaction time. Car fitness includes taking advantage of the adjustability of your car. Make sure the rear- view mirrors, inside and out, are adjusted correctly to work together so that you maximize your rear view. Your seat should be adjusted so that you have clear vision at least 3" over the steering wheel and can easily reach the gas and break pedals. Cars can be customized for greater comfort and safety with add-ons such as oversized mirrors, pads to raise your seat and extensions for your pedals. Since visibility is a big issue for seniors, new technology such as rear-view cameras and sensors, as well as high intensity headlights which automatically darken when bright lights hit a sensor, are options on newer vehicles. A GPS screen navigation system that guides your way to a destination reduces the need to multitask so the focus can stay on the act of driving.

To meet the needs of this growing issue, AARP has developed a Refresher Course which covers driving rules, age related physical changes and tips on taking driver's exams. This course can be taken in a class room or on-line. Also, AAA has a CD entitled "Roadwise Review" which provides helpful information. The DMV has published a comprehensive "Senior Guide for Safe Driving" pamphlet and has put out a DVD entitled "Road Test Tips".

Tips for Seniors to Pass a Driving Test

The DMV does not automatically re-examine drivers at any certain age. However, if the DMV receives information about a potentially unsafe driver, that driver will be required to take a written and practical test to prove he or she is able to drive safely. Information about unsafe drivers comes to the DMV from various sources including concerned physicians, emergency personnel, police officers and family members. Anyone being summoned to take a driver's test can use the resources as mentioned above to help prepare for both the written and practical exams. We particularly like the "Road Test Tips" DVD sponsored by the DMV which simply and concisely provides vital tips on what the DMV examiners are looking for during a driver's test.

The "Road Test Tips" DVD is part of the Carney & Sugai library and is available for use by our clients. We also have the DMV Driver Handbook, Driving Test Criteria pamphlet, and their informative Senior Guide For Safe Driving. If you are interested in borrowing any of these materials, please contact our office.