Question:         My home has a septic system.  If I sold it on the market, I would need to fix the system to pass a Title V inspection.  But, if I sell to my Son, does Title V still apply?
 
Answer:           Title V is a state law that regulates the condition of septic systems.  The responsibility lies with a home seller to repair a deficient septic system, prior to a sale.  Such repairs can cost over ten thousand dollars.  However, does the regulation apply to inter-family transfers?  No.
 
Fortunately, a seller won’t incur the cost of repairing a septic system of a home for the following transactions: 
1. between current spouses;
2. between parents and their children;
3. between full siblings; and
4. where the grantor transfers the real property to be held in a revocable or irrevocable trust, where at least one of the designated beneficiaries is of the first degree of relationship to the grantor.
 
Attorney James Haroutunian practices real-estate law, estate planning and probate at 630 Boston Road, Billerica. He gladly invites questions at james@hlawoffice.com or by phone at 978-671-0711. His website blog is found at www.hlawoffice.com.  This column is published for informational purposes only and not to be relied on as legal advice, in any manner.  
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Some call it a scam.  A company calling itself “Massachusetts Corporate Compliance” recently mailed solicitations entitled “Annual Corporate Minutes Compliance Filing” to many Massachusetts corporations. This company offers to complete corporate meeting minutes on behalf of the corporation for a fee. Despite the implications contained in the solicitation, Massachusetts corporations are not required by law to file corporate minutes with the Secretary of State.
Based upon phone calls this office has received, it is apparent that many citizens are confused by Massachusetts Corporate Compliance’s solicitation.
First, the solicitations are presented in a format similar to forms promulgated and distributed by the Office of the Secretary of State and references a $125 “Annual Fee”, the exact amount of the fee for filing an annual report with the Office. Second, the solicitation includes a corporation number. Third, the solicitations contain a limited response time. Although the solicitation contains a disclaimer stating that Massachusetts Corporate Compliance is not affiliated with any government agency, many customers may misinterpret the official-looking documents.
You do not have to do business with Massachusetts Corporate Compliance. The forms provided by them are not required by the Office of the Secretary of State. Whether you choose to do business with Massachusetts Corporate Compliance will in no way affect your corporate filing with the Secretary of State, either positively or negatively.
It is important to remember that any official statement or request from the Office of the Secretary of State will clearly indicate its origin by displaying the name of Secretary of State William Francis Galvin.

​Attorney James Haroutunian practices estate planning, business and real estate law in Billerica at 630 Boston Road.  Contact him to begin an estate plan or with questions at 978-671-0711 or email him at james@hlawoffice.com.
 

Last week, senior citizens rejoiced at a landmark Mass. Supreme Judicial Court case decision.  MassHealth, argued against two seniors who applied for long term care coverage.  The applicants each owned assets in a special irrevocable trust designed for nursing home protection.  Under the agency’s regulations, assets owned under an irrevocable trust are not countable, as long as the principal of the trust assets was unavailable to the applicant.  The concept of an asset’s “availability” was scrutinized at length in the case. 
MassHealth argued the seniors retained rights to live in the home, previously conveyed to the irrevocable trust.  Thus, MassHealth claimed the home was “available” to the applicants, and should be counted as an asset subject to a lien.  The seniors, and many industry groups, argued using traditional trust and property law concepts.  In the end, the court agreed that “availability” of a trust asset’s principal related strictly to the trustee’s ability to distribute trust principal.  The concept related to ownership vs. use of a trust asset. 
These seniors did the estate planning work.  They obtained the trusts authorized by the MassHealth regulations.  Unfortunately, these seniors had to fight the agency, all the way to the Commonwealth’s highest Court, just to prove they protected their homes.  This victory, however, benefits all applicants who own their homes under an irrevocable trust. 

Attorney James Haroutunian practices real-estate law, estate planning and probate at 630 Boston Road, Billerica. He gladly invites questions at james@hlawoffice.com or by phone at 978-671-0711. His website blog is found at www.hlawoffice.com.  This column is published for informational purposes only and not to be relied on as legal advice, in any manner.  
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Question:    I am a real estate closing attorney.  Last week we closed a sale, and paid off the Seller’s mortgage lender exactly as stated in the payoff statement.  A week later the Seller’s lender called, threatening to send back all payoff funds – because they discovered approximately $2,000 of additional fees.  Can the lender do that?
 
Answer:       Let me get this straight:  The Seller’s lender sent you a written statement showing all funds required to satisfy the Seller’s debt….you closed and sent them all funds requested…then, a week later, the lender demands more money.  Sounds crazy.  But, they can actually do this.
 
What they cannot do: threaten to return all the payoff funds. 
 
Massachusetts law allows banks to request additional funds after payoff is made.  However, they must seek payment on a civil basis, like an unsecured creditor.  The same law requires lenders to discharge their mortgage, upon payment of the amount quoted in a written payoff statement. 
 
The lender’s threat is unlawful, and constitutes a likely title insurance claim.  Here, the lender is threatening the good and marketable nature of the title.  This potential harm to the new owner’s ownership, and new lender’s security rights, is often covered by the new title insurance policy.  Seek assistance from the title insurance company, and write a letter demanding that the lender retain the payoff funds and discharge their mortgage.
 
Of course, the whole dispute may be extinguished if the Seller simply pays the additional sum demanded.  (Good luck, there). 
 
Attorney James Haroutunian practices real-estate law, estate planning and probate at 630 Boston Road, Billerica. He gladly invites questions at james@hlawoffice.com or by phone at 978-671-0711. His website blog is found at www.hlawoffice.com.  This column is published for informational purposes only and not to be relied on as legal advice, in any manner

Question:         I was my Mom’s Health Care Proxy.  When it was time to make decisions about her end of life treatment, I had little guidance.  We never really spoke about her desires.  I struggled to make the choices she would have wanted.  Are there other options, beside, just a Health Care Proxy document? 

​Answer:           Your Mother trusted your judgment above everyone else.  I am sure you honored her well.  Yet, I understand your desire for more specific directions.  It is not easy making important end of life treatment decisions, without a script.  Fortunately, since 2012, there is an additional form to help fill in the blanks left with a basic Health Care Proxy document. 
A MOLST form, instructs health professionals about a patient’s decision to accept or deny certain life sustaining medical treatment.   MOLST is an acronym which stands for Medical Orders for Life Sustaining Treatment.  Completed together with a physician, physician’s assistant, or nurse practitioner, the form captures a patient’s desires for or against:

• CPR Resuscitation;
• Intubation;
• Ventilation;
• Dialyses;
• Hydration;
• Nutrition;

Unlike a Living Will, which has no legal significance in Massachusetts, a MOLST form signed by the patient and his or her medical professional, will stand as a valid legal directive.  Coupled with a Health Care Proxy form, seniors, or anyone with significant medical needs, will be well represented without any doubts.  MOLST forms can be obtained at your Doctor’s office or online at www.molst-ma.org  

​Attorney James Haroutunian practices real-estate law, estate planning and probate at 630 Boston Road, Billerica. He gladly invites questions at james@hlawoffice.com or by phone at 978-671-0711. His website blog is found at www.hlawoffice.com.  This column is published for informational purposes only and not to be relied on as legal advice, in any manner.  

Question:     My favorite television attorney, Saul Goodman, (from “Breaking Bad” and “Better Call Saul”), created Attorney/Client confidentiality by simply getting a dollar from someone.  Is the exchange of money required to create an Attorney/Client relationship? 

Answer:          I remember that episode.  “Put a dollar in my pocket” he screamed to the criminals, in order to be bound to keep their secrets.  Some visitors to my office actually try forcing a dollar bill in my pocket, to have their secrets protected.  It creates an uncomfortable mood for the meeting.  Payment of money, though, is not required to create an Attorney/Client relationship. 
An individual can become a client based on various reasons.  An implied relationship may arise based upon the perception of the individual.  According to an Attorney Risk Management professional, David Grossbaum, Esq., “factors that might lead a court to conclude that the attorney impliedly agreed to provide legal services include”:

• written correspondence between the attorney and potential client,
• payment by the potential client for an attorney’s costs or fees,
• future meetings scheduled or contemplated,
• discouragement of seeking advice from another attorney,
• the potential client’s reasonable reliance on the attorney’s advice.

Looking at this list, and related caselaw, an individual can create an Attorney/Client relationship many ways.  Payment for services is certainly the easiest and most obvious manner.  An attorney who needs to create an Attorney/Client relationship quickly, can do so with the exchange of payment.  Though, an unwilling attorney can likely get around the “dollar in the pocket” trap. 

Attorney James Haroutunian practices real-estate law, estate planning and probate at 630 Boston Road, Billerica. He gladly invites questions at james@hlawoffice.com or by phone at 978-671-0711. His website blog is found at www.hlawoffice.com.  This column is published for informational purposes only and not to be relied on as legal advice, in any manner. 

​Question:      My mom just died.  Her will leaves everything equally to my sister and Me.  But, my Mom and I held a joint account together.  This sizable account does not pass through her will.  I am being told the account is now mine.  I don’t know if this was Mom’s intention, or if she wanted me to split this with my sister.  How should I proceed?
Answer:         Parents often hold assets jointly with one child as a matter of convenience.  Joint ownership allowed you to help Mom with her accounts while she was alive, and creates a probate avoidance situation.  You have direct access to the money regardless of your Mom’s death.  But, ask yourself: did your Mom intend for things to stop there, or did she want you to split them with your sister?
You may not have an immediate legal obligation to share your assets with your sister.  But, she may be able to file a lawsuit, seeking half of the jointly held account.  Her argument will rely upon limited provable evidence, such as written language in her will or elsewhere.  Clauses are often used in a will to confirm a parent’s intentions regarding jointly held assets.   
This clause may not be enforceable on its own, but is valuable as evidence in a larger lawsuit.  Obviously, your Mom is not available as the key witness to determine her intentions.  Many folks resolve these issues on a moral basis – vs. a legal one.    
You know your Mom, and your sister, better than most.  You and your sister will need to live with each other for years to come.  If holding the funds to yourself creates a lifelong rift with your sister, assess your personal losses against your financial gains.  Also, consider the cost of defending against a potential lawsuit from your sister. 

​Attorney James Haroutunian practices real-estate law, estate planning and probate at 630 Boston Road, Billerica. He gladly invites questions at james@hlawoffice.com or by phone at 978-671-0711. His website blog is found at www.hlawoffice.com.

​Q:        I’m pregnant and thinking about applying for life insurance.  My agent tells me to hold off my application until after labor.  Am I being discriminated against because I am pregnant?  

A:         While many life insurance companies officially claim to be open to pregnant applicants, consumers report their own difficulties online.  Insurance related websites cite the unique medical risks attributable to pregnancy, as justification for denying applications like yours.

Gestational diabetes, for example affects less than 10% of pregnant women.  In most cases, it disappears after delivery.  However, this is the top reason for a company to deny an application or to charge higher premiums to pregnant women.  So, what are your options?

• If you are still in your 1st trimester, try applying with another life insurance company.  You may get approved, but expect higher premiums.  Make sure the company will allow you to re-apply after delivery.  Most companies allow a 1-2 year window for re-examination and adjustment to your premium, due to a change in medical conditions.
• Wait until the baby comes.  Allow 6 months to pass, to get past the highest post-partum depression risk period.  Shed any lingering baby weight, too.  These are two often cited reasons for high post-labor premium increases.

Billerica attorney James Haroutunian’s practice includes real estate, business and estate planning.  Contact him with questions at http://www.hlawoffice.com, call 978-671-0711 or email him at james@hlawoffice.com.

Haroutunian Law Office

Phone:
(978) 671-0711

Fax:
(978) 671-0712

Address:
630 Boston Road,
Billerica, MA 01821