In this Issue
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About Us
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The Traub Law Office is a Full Service Law Firm located at 8601 RR 2222.
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Andrew Traub is my name, and I want to help you ensure that your loved ones are taken care of. Call me at 343-2572 or email me.
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Free Initial Consultation
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Did you know that the Traub Law Office offers a free initial consultation?
Part of my dedication to my clients is ensuring that there is a good fit between you and I.
The purpose of the free initial consultation is for you to tell your story, learn about me,
and then we can decide whether we would work well together. There is no obligation on your part,
so why not schedule a free initial consultation today?
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Joke of the Month
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The other day a lawyer remarked to a friend, "I just finished a puzzle and it only took me five months."
"Five months?" her friend asked. "That seems like an awfully long time to do a puzzle."
"Not at all," she explained. "The box says six to twelve years."
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Attacking a Will
When a person dies with an effective will in place, the will may be submitted to a court for "probate." During this court procedure, the will can be declared valid and binding on the estate of the decedent. In addition, debts are paid, property is sold, and the estate's assets are distributed.
more...
Asset Protection Planning Under the Homestead Exemption
In today's litigious society, asset protection planning has become an area of great interest for individuals who own their own businesses or are engaged in occupations with a high risk of exposure to liability, such as doctors or lawyers. These individuals are concerned about protecting their assets from the claims of potential creditors. To aid such individuals, many states provide what is known as "the homestead exemption," which can shield a debtor's personal residence from being repossessed and/or sold for the benefit of creditors.
Texas offers an unlimited homestead exemption, or an exemption with no dollar cap. Unsecured creditors in Texas cannot seek payment from a debtor's personal residence at all, no matter what the value of the property is.
However, the exemption is limited based on the acreage of the land in question. In Texas, unsecured creditors cannot seek payment from a debtor's personal residence if the homestead is not more than one acre in a city or 200 acres elsewhere.
Recent Privacy Rule May Impact Estate Planning
The Health Insurance Portability and Accountability Act of 1996 (HIPAA) became effective on April 14, 2003. HIPAA establishes national standards for the protection of certain health information. The purpose of HIPAA is to ensure that a patient's confidential health information or "protected health information" (PHI) is protected from unauthorized dissemination. The Privacy Rule applies to any health care provider that transmits or disseminates health information, assessing penalties for failing to comply, and could potentially result in rendering certain estate planning documents ineffective.
Authorized Use and Disclosure of Protected Health Information
The Privacy Rule authorizes dissemination of PHI without an individual's written authorization in the following instances:
- To the individual who is the subject of the information
- To payment, treatment and health care operations
- For uses and disclosures with an opportunity for the patient to agree or object, such as permission from the patient to release information to friends or relatives
- For incidental use and disclosure, provided the information disseminated was limited to the "minimum necessary" under the Privacy Rule
- For public interest and benefit activities, including but not limited to, disclosure to public health authorities for the prevention or control of disease, to law enforcement, or for judicial or administrative proceedings
Any use or disclosure of PHI other than those noted above require the individual's written authorization, specifically including the following:
- Describing the information to be disclosed
- The person(s) disclosing and receiving the information
- Duration of the validity of the authorization
- A statement that the individual may revoke the authorization by a subsequent writing
Penalties for Failure to Comply with Privacy Rules
Health care providers face fines of $100 per violation, up to a maximum of $25,000 per year, for multiple violations of the same Privacy Rule requirement. Any person who knowingly obtains and disseminates PHI faces a fine of $50,000 and up to one year in prison. If the PHI was obtained under false pretenses, the penalty increases to a fine of $100,000 and up to five years of imprisonment. If the PHI was procured or disseminated for commercial advantage, personal gain, or with the intent to cause malicious harm, the fine increases to $250,000 and up to ten years of imprisonment.
Effect of Privacy Rule On Estate Planning Documents
Health care providers are understandably concerned about the transmission of PHI and the penalties for violating the Privacy Rule. Many health care providers are reluctant to disseminate PHI without the express written authorization of the patient. This poses a potential problem for individuals who have executed health care powers of attorney or advance health care directives (documents which allow an individual to appoint an agent to make medical decisions on their behalf in the event the individual is incapacitated or otherwise unable to communicate his or her wishes).
A well-prepared health care power or directive should contain a statement authorizing the release of the individual's medical information to the designated health care agent. The health care provider may, however, be reluctant to release such information without an express statement in the document that PHI may be transmitted under the HIPAA Privacy Rule. Since the need to exercise the authority to make medical decisions under the health care power or directive usually arises during an emergency or medical crisis, it is important that the health care provider accept the authorization provided in the document without question.
We always recommend creating HIPAA releases to complement the medical powers of attorney we create for our clients. Please consult us if you have any concerns about your health care directives.
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