HOW IS IRA DISTRIBUTION TAXED?

Q: John named his estate as the beneficiary of his IRA. He died after his required beginning date in 2012. After his death, the trustee of the IRA distributed the balance of his IRA to his estate. If the entire amount of the IRA was distributed from the estate to the estate beneficiaries, who pays the tax on distribution, the beneficiaries of the estate? Pittsburgh, PA

A: The beneficiaries of the estate will be liable for the tax on the amount of each received. The beneficiaries will be entitled to reduce the distribution amount by their allocated share of basis in the IRA if there was any. The distribution is reported as other income to the estate on Form 1041. The amount is deemed to be distributable net income and is reported as an income distribution deduction by the estate, limited by DNI (§661). The allocated amount will flow from Form 1041 to Schedule K-1 and reported on the beneficiaries’ personal Form 1040.

 

CAN I EXPUNGE A SIMPLE ASSAULT ON MY RECORD?

Q: Having trouble getting and job with a simple assault on my record, how do I get it off? I have a simple assault background and really need a job, this happened in the year 2009! Baldwin Borough, PA.

A: You should have an attorney get your criminal history from the PA state police to confirm you were convicted. If you were not convicted, for example if you were found not guilty or the charges were dropped, you can file to expunge, or destroy, all the related records that can still show up on a criminal history search. If you were convicted, you cannot expunge a misdemeanor.

My 11 year older threatened to kill a teacher, do we need a lawyer?

Q: My 11 year old at Woodland Hills was accused of threatening to kill a teacher by two other students. Does he need a lawyer? My son has Toilette syndrome and impulsive disorder and has an IEP at school for emotional support. Two other students are accusing him of threatening to kill a teacher. He never threatened to kill anybody and now the cops are involved and this is causing more emotional damage to my son. What should I do?

A: I am not sure if you mean “Toilette” syndrome or are the victim of spell check but the situation sounds serious. I think a lawyer who specializes in educational law, may be helpful. The threat was not directly made to the teacher but the school maybe taking this seriously, especially if the police are involved. This could be handled with something simple like a conference, or at the other extreme, it could even end up in juvenile court on a delinquency petition and with a suspension. You should be proactive and discuss this with the school to determine how they are going to handle this. Again, an attorney who specializes in educational law may be a benefit to understanding the rights of your child and you as parent have in this situation. There is an organization called Kid’s Voice in Pittsburgh who represent children who are alleged to be dependent, but they may be able to offer some advice.

 

Can step-sister sign dad’s cabin to herself with a POA?

Q: My father was just diagnosed with a terminal illness. He is 80 years old. His step daughter “talked” him into giving her POA. What can we do? We all live hours away. My sister is going up to take care of him, after she puts her affairs in order. She is also the executor of his will (as she understands it). We are worried she (step daughter) will change his living will. He feels intimidated by her. She is big and forceful. We are afraid she will change it and take the cabin away and put him on the streets. He lives in the cabin in Crawford County. We are all in Allegheny except the step-daughter who lives up there. What are our options?

A: Generally, an Agent on a POA cannot draft and sign a will for another person. But this could not stop her from having a new deed to the cabin prepared and signed by her as POA, in which she deeds it to herself. If he is still mentally competent, perhaps you can advise him to revoke the POA by signing one over to you or your siblings. If this is not possible, if you want to control the situation, you may need to file for a guardianship. Unfortunately, he lives in Crawford County and you may have to file there. I think you should discuss this with a lawyer here or in Crawford County. He or she may be able to start communication with the step daughter and this may put her on notice that her actions are being scrutinized. If you have evidence she is diverting money, or has wrongfully converted his money, you can have an attorney petition the court for an accounting of POA funds. Before you do anything I would attempt to see if you and your siblings can meet with her to put all of these concerns on the table. Open communication may help to avoid a legal fight.

 

UNDERAGE DRINKING-CAN I GET ADJUDICATIVE ALTERNATIVE?

Q: What are my odds of getting adjudication alternatives as oppose to underage drinking charge? I have a lawyer. First off, I’m 19 years old. A few months back my friends and I had a party at my apartment. My boyfriend who is of age bought us alcohol and our party turned wild and one girl was sent to the hospital with suspected alcohol poisoning . The police came and searched my apartment and my boyfriend’s car without our consent, is that legal? Nothing was found when search , no Breathalyzers given to the rest of but the girl that was underage and went to the hospital had a BAC of 0.18. Long story short now there is an arrest warrant out for me and I had no prior notification from the police but this. My parents hired an attorney. This is a first time offense. I’m a college student and going places in life and I don’t want this one mistake on my record. With an attorney what charges facing? My hearing is

A: Usually, minors are cited with the summary offense of Purchase, Consumption, Possession or Transportation of Alcohol and they are cited with a citation or arrested by mail, or summons. Arrest warrants are generally not issued. If you have a “warrant” for your arrest, it sounds as if you may have been charged with a misdemeanor furnishing alcohol to minors under § 6310.1,   “Selling or furnishing liquor or malt or brewed beverages to minors”. I am not sure how this can be if you are a minor as well. In either case, if charged with a summary or misdemeanor, you cannot have a conviction as it will impact your life. In addition, there are driver’s license suspensions that can be imposed by PennDOT once you are convicted. Generally, there will be an alternative program for you as a first offender which will let you avoid a conviction. Only an experienced criminal defense attorney can advise you on how to obtain these types of results. Do not do it without counsel. The various searches you describe may or may not be legal and you should have your attorney look at the facts closely as well.

How do I sue an ex-friend for money owed to him?

Q: What type of lawyer do I need to sue an ex-friend for money loaned to him? I loaned a significant amount of money, through a verbal agreement, to a friend, who is no longer a friend. He is paying me back but is doing so now on his terms, not the agreed upon monthly payment. I want to sue him, file a property lien, and potentially try for wage garnishment. I don’t know what legal specialty this situation would be considered. Is it collections or dispute?

A: If the economics of the claim warrant investing in an attorney, you will be much better off with counsel. If it is a few hundred dollars, file at the local District Justice on your own. Since you state it is a significant amount of money, you would be better off with an attorney to ensure you get a judgment and it is enforceable and if so enforced correctly. Many people obtain judgments against others, but cannot enforce them. At a minimum you need to consult with a civil attorney to see if it is worth proceeding, and if so, exactly how.

 

Can my sister charge me for elder abuse?

Q: I have been my mother’s power of attorney as well as on a joint checking account with her for the past couple of years. She has now had to be placed in a dementia care home and my sister who was not involved with any of her care filed for and got guardianship. I then closed the joint accounts and sent the money to the care home. My sister got copies of bank statements and is now charging me with stealing my mother’s money. My mom and I were ok with me spending what I needed as well as me using money from my private account to help her with bills. Since I was a legal joint owner on that checking account does my sister have a legal standing to accuse me?

A: Based on the limited facts I am hearing, the simple answer is that when you were acting as POA Agent, you had a fiduciary duty to act in your mom’s best interest and document all your expenditures of her money. If you can did act in her best interest and can document all of her expenditures, your sister can allege all she wants, proving it is another matter. In order for her to proceed against you legally, she would need to hire an attorney to file a petition in Orphan’s Court requesting an accounting of all of your spending as agent for your mother on her POA.

 

CAN I GET CRIMINAL CHARGES ON MY EX FOR HACKING INTO FACEBOOK?

Q: My ex boyfriend hacked into my Facebook account. I discovered the IP address from where the device was located in my email.

A: You can ask the police or DA if they will file criminal charges for harassment. Harassment charges are more likely to be filed if the contact is continuing. The police are not likely to file charges with this one instance, but you may at least want to file a police report.

 

If I am 18 years old, can my school prosecute me for truancy?

Q: Can I be charged with a truancy violation in Pennsylvania if I’m 18 years of age? I’m 18, and I got a letter in the mail that because I have 7 unexcused absences they have notified the district and legal action may be taken. Does this truly apply to me being 18 years old.

A: I shouldn’t. Pennsylvania’s compulsory attendance law only applies to minors up to seventeen. The school is doing their job in reporting you, but I would be very surprised if it went any farther than that. Of course, if charges are brought, you should retain counsel immediately. They can even charge your parents for your truancy.  If the facts are as you say they are, this should be an easy case to get dismissed. After age 17 you can sign yourself out of school. The school likely is pushing you to make up your mind as to whether you want to be a student or not. You may have to sign yourself out, which is maybe what they want.

How can I keep my inheritance and remain on Medicaid?

Q: I am a 59 year old female, legally married but my husband left me and moved from Monroeville to AZ. We had no savings and the only asset I was left was a 20 yr. old mobile home which my 20 yr. old son and I currently reside. I was a homemaker and have no skills but was able to secure a full time minimum wage fast food job with no health ins. benefits. I had no savings and I applied for Medicaid and now rely on it for health insurance. My mother recently passed away and I received an inheritance check (have not cashed) worth more than what I think Medicaid allows. I have been told that I need knee replacement surgery and I need the Medicaid to get it. I need to know what legal options I have regarding keeping Medicaid and my inheritance. Could I apply for disability, social security, some other option?

A:  You need to see a lawyer versed in Medicaid regulation and SS Disability issues.  Two separate issues and perhaps one attorney can advise on both. Without knowing more, generally, depending on the amount of your inheritance, you may be able to “spend down’ this money prior to your Medicaid application for eligibility, or, establish a special needs trust (SNT). The special needs trust requires some administrative work and my only be worth it to you if your inheritance is significant.  As to a potential disability claim, issue one will be whether or not you worked long enough to have full credits for eligibility for Social Security Disability Insurance (SSDI) benefits. Generally you’d need 5 years of earnings over the last 10 years. If you don’t have SSDI coverage, then you’d want to look at Supplemental Security Income (SSI) and the resource limits will be same as Medicaid. Please see a lawyer so these issues are addressed thoroughly.