Contributor, Author at BusinessWest

Law

Families Can Save Close to $100,000 Under New Rules

By Hyman G. Darling, Esq.

At long last, Massachusetts has passed a law increasing the estate-tax exemption. Under the prior law, if a person died with less than $1 million, there was no estate tax due. However, if they died with more than $1 million, the $1 million exemption basically disappeared, and taxes were due on all assets back to the first dollar. This includes assets such as real estate, stocks, bonds, retirement plans, life insurance, annuities, etc.

Under the new law, the exemption has increased to $2 million, but this is a true exemption. Therefore, if a person dies with less than $2 million, there is no estate tax due. If their estate is greater than $2 million, the tax will be calculated on all assets, but basically, the first $2 million is exempt from tax.

Hyman G. Darling

This does have the effect of taxing all assets at a bit higher rate, but the exemption of $2 million basically applies to a credit. The credit is $99,600, which would have been the tax on the first $2 million. In other words, if a person dies under the new law, and if the estate was greater than $2 million, the family basically saves $99,600, which would have been the tax on the first $2 million. The law is retroactive to any individual who dies on or after Jan. 1, 2023. Therefore, if you are reading this article, you have the benefit of the increased exemption amount.

Under the new law, there is also a provision that attempts to impose an estate tax on out-of-state property, which was not the case under the old law. The new law will allocate the tax and charge only a proportionate share of the estate tax as it applies to the Massachusetts property, but the out-of-state property is included, thus increasing the total of the taxable estate. This probably will be challenged by an individual who has a significant amount of out-of-state property, which would therefore increase their estate tax in Massachusetts. However, it may be some time before the litigation on this matter makes its way through the court system.

For a married couple, they each now have an exemption of $4 million. However, they must use the exemption, or it is otherwise lost. For instance, if one spouse dies, leaving all assets to the surviving spouse, there is no tax because the unlimited marital deduction allows a spouse to receive an unlimited amount of money from the deceased spouse. If this is the case, then the person who died did not use their $2 million exemption, and the assets are then in the surviving spouse’s estate. If that surviving spouse has greater than $2 million, there will be a tax, and only the exemption will be allowable on the second to die.

Therefore, the first spouse should consider establishing a trust with up to $2 million in assets. The trust fund will be available for the surviving spouse, and that spouse may receive income and principal at the discretion of the trustee. At the death of the second spouse, the funds remaining in this trust will pass to the children or other contingent beneficiaries without any estate tax, and the surviving spouse will still have their $2 million exemption available. Thus, they have sheltered $4 million of assets to pass to beneficiaries, which is a significant change over the prior law.

An alternative would be to have $2 million of assets left outright to the children on the death of the first spouse, but then the surviving spouse will not have availability of those assets to use during their lifetime. The use of the trust is more advisable since it is flexible in allowing the surviving spouse to have access to income and principal, but not have those assets taxed in their estate.

An additional benefit of utilization of a trust is that the funds may be held in the trust for the benefit of children until they attain desired ages when they may be more mature to receive their funds for distribution. The funds may also be distributed in intervals such as one-third at age 25, one-third at age 30, and one-third at age 35, with also giving the trustee discretion to utilize funds for the children for their health, maintenance, education, support, etc.

While the increase in the exemption has finally increased, it is still not as desirable as many other states that have either no estate tax or a significantly higher exemption. The federal exemption is currently $12.92 million for each person who dies as a U.S. citizen, but this amount is proposed to be reduced in 2026 to approximately half of this amount unless Congress extends the higher exemption amount.

In any event, this is a good time to review all estate -planning documents to be sure they are up to date, including a will, a healthcare proxy, a power of attorney, and any other estate-planning documents a person may have. Of course, use of the new tax credit should be considered to reduce or eliminate the tax.

Hyman Darling, a shareholder at Bacon Wilson and chair of the firm’s Estate Planning and Elder Law department, is recognized as the area’s preeminent estate planner, with extensive experience with all aspects of estate planning, trusts, tax law, probate and estates, guardianships, special-needs trusts and planning, elder law, and long-term care planning, and additional specialties including adoption and real estate; (413) 781-0560.

Changes to Paid Family and Medical Leave Law Require Action

Law

Employers, Take Note

By Amelia J. Holstrom, Esq.

The Massachusetts Paid Family and Medical Leave (PFML) law is a relatively new statute that employers have to comply with in the Commonwealth. Under that law, eligible employees can take up to 26 workweeks of job-protected leave each benefit year for various reasons, including leave for their own serious health conditions or the serious health condition of their family members; leave to bond with children after birth, adoption, or placement; and leave for certain military-based reasons.

During any PFML leave, an employee is paid a portion of their regular pay as a PFML benefit. While some Massachusetts employers have a private PFML plan, the majority provide PFML to their employees through the Commonwealth’s Department of Family and Medical Leave.

Recently, two very important changes were announced regarding the PFML law. As a result of those changes, employers need to take action in the coming weeks. Here is what you need to know.

The Contribution Rate Is Increasing

Employees (and employers at companies with 25 or more employees) fund the PFML program through contributions deducted from their wages. For employers who provide PFML through the Commonwealth, rather than a private program, the Department of Family and Medical Leave sets the contribution rates annually, and it recently announced that contribution rates will increase in 2024.

“Recently, two very important changes were announced regarding the PFML law. As a result of those changes, employers need to take action in the coming weeks.”

Beginning on Jan. 1, 2024, the PFML contribution rate for businesses with 25 or more employees is increasing from 0.63% of wages to 0.88%. Of the 0.88%, 0.18% applies to the family-leave portion of the law and may be paid for solely by the employee. The remaining 0.7% is applicable to the medical-leave portion of the law, of which 0.28% may be paid for by the employee, with the remaining 0.42% to be paid for by the employer.

Similarly, the PFML contribution rate for businesses with fewer than 25 employees is increasing from 0.318% to 0.46%. Employers with fewer than 25 employees may require the employee to pay the full 0.46% contribution, or they can pay a portion of the contribution at their option.

Individual contributions are still capped by the federal Social Security taxable maximum. In other words, PFML contributions are not paid by the employee or employer on any income over that maximum. For 2024, that maximum is $168,600.

The increase is not surprising given statistics recently released by the Department of Family and Medical Leave in its FY 2023 Report. The report, which covered July 1, 2022 through June 30, 2023, indicates that the department approved more than 143,000 applications for PFML in FY 2023, which was a 27.39% increase in approved applications over FY 2022. With more PFML claims receiving approval, the department is paying out more in benefits, which are funded by employer and employee contributions.

A New Notice Is Now Required

The change in the contribution rate means that employers need to issue a new PFML notice to employees. Under the law, employers are required to give employees a written notice, which includes information on the contribution rates, among other things, at the time of hire and 30 days in advance of any contribution-rate change.

The new contribution rates will be effective Jan. 1, 2024. As a result, employers must provide notice to their employees no later than Dec. 2, 2023. The Department of Family and Medical Leave issues a model notice for employers to use each year, which will be found on the department’s website once it is released.

‘Topping Off’ PFML Payments

Since its inception, the PFML statute prohibited an employee from using company-provided paid time, including but not limited to vacation, personal, and sick time (collectively, PTO) and receiving PFML benefits from the Department of Family and Medical Leave at the same time.

In other words, an employee who chose to use PTO during their PFML leave was not permitted to receive any payment from the state. Employees could not even supplement — frequently referred to as ‘topping off’ — their reduced-PFML benefit using PTO to receive 100% of their pay during their leave. This, however, has recently changed.

Employees who apply to the department for PFML benefits on or after Nov. 1, 2023 will be allowed to supplement their PFML benefits with accrued PTO provided by their employer at their option. This will enable an employee to receive their full pay while on PFML leave, if they choose to do to. It is important to note that employers cannot require an employee to use their company-provided paid time to top off.

Employers with private plans may need to make some changes, too. Prior to Nov. 1, 2023, employers with private plans could choose whether or not to permit employees to top off their reduced PFML benefit by utilizing company-provided PTO. There is no longer a choice. Beginning on Nov. 1, employees working for employers with private plans will also be permitted to utilized company-provided paid time off, at their option, to supplement their PFML benefit to receive their full pay while on leave.

What Should Employers Do Next?

Employers should review the Department of Family and Medical Leave website regularly for the new contribution-rate notices and send those out to employees no later than Dec. 2, 2023. Additionally, now that employees have the option to top off their PFML benefits with PTO offered by the employer, employers should review their PFML policies and other related documents to make any necessary changes in light of the new topping-off option.

Employers who have questions about the changes to the law or edits to their policies and related documents should work with their labor and employment counsel to address those questions.

Amelia Holstrom is a partner with the Springfield-based law firm Skoler, Abbott & Presser, P.C., with a practice that focuses on litigation avoidance, employment litigation, and labor law and relations; (413) 737-4753.

For Those Struggling with Addiction, There Is Hope

Healthcare News

A Survivor’s Story

By James Basler

There have been 1 million drug-overdose deaths in this country since 1999. On March 21, 2018, my brother was one of them.

I am very lucky, at age 46, to not be one of them, as I, too, have overdosed, but survived. My paper route, as I tell people about my life’s journey, has not been an easy one, with jail time for aggressive behavior while under the influence, time wasted in denial about my substance use and mental health, and letting judgment of others keep me from seeking treatment.

However, I did seek treatment, finding success with daily medication to maintain recovery, along with the behavioral-health counseling that goes with it, in my mind, like peanut butter and jelly. I now share my story with others, as many of us have lost family members and friends to drug overdose.

I tell anyone with addiction that if I can maintain recovery — despite a long history of misuse, startovers, and decisions that did not focus on what I needed to do — you can do it, too. You can find the right combination of support to start and sustain recovery.

My substance use dates to weekend drinking as a young adult, and my addiction and recovery are, you might say, a timeline for the public-health emergency that substance use and mental health have become during the last two decades.

My journey has included alcohol, the once widely prescribed pain med Oxycontin that flamed the country’s overdose crisis, heroin, Section 35 court-order treatment, stays in residential recovery programs, and hospital admissions on a voluntary basis for psychiatric treatment.

I got married; fathered three children, whom I see regularly; and learned and accepted that my addiction, the most severe form of substance use, may have started as a form of self-medication in response to mental-health issues and exposure to trauma.

“I tell anyone with addiction that if I can maintain recovery — despite a long history of misuse, startovers, and decisions that did not focus on what I needed to do — you can do it, too. You can find the right combination of support to start and sustain recovery.”

I have been clean for the last five years except for one relapse three years into my sobriety. Anyone in recovery will tell you relapse is part of recovery. Your brain misses the pleasurable feelings drug dependency produces, especially when life’s realities sideline how such dependency can ruin your life altogether.

I live in sober housing and work daily to maintain recovery, as no one ever said recovery is easy, despite its rewards. You need to stay connected to your treatment and supports, and not go it alone.

I take methadone at the MiraVista Behavioral Health Center in Holyoke, and I also do one-one-counseling for my mental health, as well as group sessions. Substance use can contribute to poor mental health, and poor mental health can contribute to substance use. Finding the right medications and getting the right providers in place for both can take time, but are what enable individuals like myself with a substance-use and mental-health diagnosis to lead fulfilling lives in our community and have healthy relationships.

I was oblivious, growing up in Middlesex County during the 1990s, to the dangers and consequences of substance use. I now understand addiction for what it is: a medical condition that needs individualized treatment, and that there is no shame in getting treatment to manage it.

I have survived to 46 thanks to a little luck, as illicit drugs laced with fentanyl, a laboratory-made opioid that is cheap and 100 times more potent than heroin, have become mainly responsible for the majority of overdose deaths at record numbers in this country; much ongoing support from family and friends; and access as well as commitment to medication-assisted recovery like that at MiraVista.

I hope that my story offers hope for recovery to anyone with substance-use and mental-health disorders. Medications can get you into recovery, and the work you do in counseling motivates and helps sustain it.

James Basler was born in Melrose and raised in Burlington. He is a resident of Holyoke, the father of three, and a patient of MiraVista Behavioral Health Center’s Opioid Treatment program. He is in his fifth year of successful, sustained recovery. For more information on MiraVista’s treatment and recovery programs, call (413) 701-2600, option 3, or visit www.miravistabhc.care.

Area Banquet Facilities Offer Wide Range of Food, Amenities

Accounting and Tax Planning

Holiday Party Planner

What’s on the Menu?

By Manon L. Mirabelli

Ralph Santaniello says the Federal fits the bill as an upscale, special-occasion restaurant and also as an affordable, sociable spot.

Monica Guarneri has seen a noticeable trend in party planning — specifically, parties outside the home.

And that’s good for business at Shortstop Bar & Grill in Westfield, where Guarneri is executive chef and co-owner alongside her parents, Nabil and Julie Hannoush.

In the 10 years that facility has been open, she explained, more people are choosing to host parties in public rather than private spaces such as homes and offices, a trend driven by the COVID-19 pandemic. To accommodate that demand, Shortstop offers a newly redecorated, 3,000-square-foot banquet room that can hold 25 to 100 people.

“A lot of people don’t want to worry about having people in their homes,” Guarneri said. “What attracts clients is the ease and comfort of having someone else do the work for them so they can enjoy the party.”

While the space is tastefully appointed, she added, those hosting parties may opt to decorate the room to their liking to create a custom experience. “We are the go-to spot for several business clients. We offer convenience, consistency, and a private atmosphere.”

The holiday season is traditionally a time when employers celebrate their employees’ contributions to a successful business year with festive gatherings, and Western Mass. has no shortage of distinctive venues of all sizes, from the Berkshires to the Pioneer Valley.

One of the most notable local venues is Springfield’s world-renowned Naismith Memorial Basketball Hall of Fame, which has the capability to host events of all sizes, intimate to large-scale.

Chelsea Johnson, manager of internal events for the Hall of Fame, said most businesses begin booking their holiday parties in the summer, and those that return regularly begin planning for the following year immediately after their parties.

“We are the go-to spot for several business clients. We offer convenience, consistency, and a private atmosphere.”

“It’s definitely a unique venue,” she said. “It’s not your standard banquet hall.”

Indeed, it is not. Party planners have a wide range of options, including Center Court, which typically accommodates 500 to 800 guests; the Theater, which holds 100 to 200 people; and the Boardroom and Hall of Honor, both more intimate spaces that can accommodate 50 to 100 guests.

Johnson said the Hall of Fame is an ideal venue for holiday parties because of its proximity to major highways, plenty of free parking, and free on-site valet service, to name just a few reasons.

“We are the premier location for events of any size or type in Western Massachusetts and New England,” she added. “We have more than 80,000 square feet of flexible function space, and each year we host hundreds of local and global corporate meetings, award dinners, private socials, and internationally televised events.”

Go West

Party planners seeking a more intimate venue a bit farther west might find the traditional elegance of the Red Lion Inn in Stockbridge an ideal location for a quintessential New England holiday experience.

Tim Eustis, director of Sales and Catering, said the storied eatery can accommodate 65 to 120 people and can customize space to suit every party, and companies who hold holiday events at the Red Lion can expect “a warm space, good food and drinks, and excellent service.”

The Red Lion’s Hitchcock Room is the historic inn’s most spacious banquet option.

“We’re very good at throwing parties,” he noted. “We have the Hitchcock Room, the main dining room, front and back dining rooms, and part of the lobby.”

One local business-client stalwart for the Red Lion Inn, Eustis said, is the Jane Iredale international cosmetics company, as well as U.S. Rep. Richard Neal’s annual gathering for staff and friends.

“Congressman Neal’s parties are one of our favorites to plan and be a part of,” Eustis said. “They have a great team.”

Back in the Springfield area, the Federal is a historic site in Agawam that has become synonymous with excellence in fine dining.

Owners Ralph Santanielo and Michael Presnal strive to integrate the white-linen elegance of a bygone era with a fresh and innovative, ‘new American’ cuisine. “We rely on strong Italian and French influences to inspire the contemporary culinary style of Chef Presnal in dishes such as his red beet risotto, burnt tangerine glazed cod, and white-chocolate panna cotta” Santaniello said.

One big advantage of hosting a holiday event at the Federal, he added, is that the space is “dressed up as a special-occasion restaurant, but is sociable and affordable enough for every occasion.”

For those who choose to have the Federal cater their events off-site, parties from 15 to 300 can be served from a menu of specialty items.

Beyond the Table

Some venues offer more than a meal experience. Not unlike the Basketball Hall of Fame, but on a smaller scale, Shortstop also offers an interactive party experience with indoor batting cages to encourage mingling and hands-on fun.

“The batting cages are a great icebreaker,” Guarnieri said. “They make it easy to make conversation and make the party more interactive.”

Shortstop provides all food and beverages in party packages and may include chef-made desserts, though guests are also welcome to bring in their own desserts.

Speaking of the Hall of Fame, that venue provides local businesses with a one-of-a-kind party facility where guests can enjoy an interactive experience shooting hoops and touring the museum.

Johnson noted that Max’s Downtown is the exclusive caterer for Hall events, ensuring that visitors will enjoy a gourmet dinner experience in addition to a fun venue.

She noted that two of the biggest local companies that utilize the spot for their holiday parties are Advanced Manufacturing in Westfield and the Sarat Ford group, which includes Enfield Ford, Ford of Northampton, and the flagship Sarat Ford Lincoln in Agawam, for a total of more than 250 guests.

Jack Sarat, president of the auto group, said 2022 was the company’s first year at the Hall of Fame, and it was a great choice enjoyed by employees and their families. “Everybody had a great time. The food was excellent, and the venue is excellent. They really did a great job. A lot of people had never been there. It was a lot of fun.”

The Sarat patriarch said the company has used quite a few banquet facilities throughout the years it has been in business, but the Hall of Fame provided one of the most memorable parties.

“Overall, we had such a great time last year. They really sold us, and there was no reason not to go back this year.”

There Are Plenty of Reasons — and Ways — to Shop Local

By Contributor November 9, 2023

Shop Local Special Coverage

Gifts for Every Season

By Manon L. Mirabelli

Michelle Wirth says the Feel Good Shop Local website gives area merchants access to many more shoppers.

The gift-giving season is quickly approaching, and the business of everyday life can make it difficult to find the perfectly thoughtful gift. Fortunately, the 413 is full of good ideas.

Michelle Wirth, founder and CEO of Feel Good Shop Local — and a believer in the importance of supporting local retailers — has been working with area merchants since 2020, when the COVID-19 pandemic halted business as we knew it.

A successful marketing executive and entrepreneur, Wirth — who, with her husband, Peter, brought Mercedes-Benz of Springfield to the region — said she has always been passionate about supporting local, independent businesses.

“People today are busy and don’t have time to do research to find small businesses,” she said. “But we can’t have a vibrant downtown if we don’t support small businesses throughout the year so they can survive.”

Wirth established Feel Good Shop Local (FGSL) and its website, www.feelgoodshoplocal.com, to support independent merchants and empower conscientious consumers by offering a simple online solution for those who want to shop locally and/or to support small businesses, she explained.

“Small business is the backbone of any thriving community, and FGSL wants to create an elevated online experience so shopping locally becomes the go-to solution when trying to find great products easily.”

Not only does FGSL support local commerce, the nonprofit organization also increases sales for small-business merchants by making its online store available to them to sell their goods. The concept behind the website is to offer consumers an alternate shopping stream while boosting sales for the businesses.

The website, Wirth noted, gives merchants access to a significantly greater number of shoppers. It started with 20 businesses and has increased to 50 this year, offering consumers a wide array of shopping options.

“Our online e-commerce website shop is a one-stop shop that gives small, local business access and exposure to new consumers who would not otherwise know about the business,” she said. “We’re giving these businesses access to sales, vitality, and exposure. We’re doing the heavy lifting for business and the consumer.”

As a busy mom of four and business owner, Wirth understands the challenges consumers face when balancing the need for convenience and the desire to make value-driven purchasing choices. She personally curates a selection of the best products from independent merchants and local makers.

The shopping convenience and variety of choice, as well as the benefits to business owners, make up just some of the bigger economic picture. The importance of shopping locally benefits the long-term success of any community’s downtown offerings and can make the difference between a stagnant town center and one that thrives with activity.

“It’s important to shop local,” Wirth said. “We all want a vibrant downtown community. When people shop local, they are voting with their wallets and making dreams come true for the business owner.”

Just as important, the consumer benefits by having the opportunity to purchase unique items, she added. “There is a higher propensity of finding something unique while providing economic growth in the community. We pride ourselves on providing a personalized experience. We know the owner, remember what you like, and the money is going to a person, not a faceless corporation. We offer a higher level of customer experience.”

Claudia Pazmany, executive director of the Amherst Area Chamber of Commerce, echoed Wirth’s sentiments on how critical supporting local business owners can be to a community’s success.

“They create the fabric of our community. Entrepreneurship is soaring since the pandemic, and as a result, Amherst alone has an array of new retail offerings and many new restaurants and food establishments,” Pazmany said. “When you support local, you are directly investing in positive social and economic impact. We developed our Amherst Area Gift Card program to showcase local and remind our community that these small businesses should be your first place to turn for gift giving.”

For our annual Shop Local Gift Guide, BusinessWest offers up 18 such options, whether you’re looking for a physical gift to wrap up, a service, or an always-welcome gift card.

Arts Unlimited Gift Gallery
25 College St., South Hadley
(413) 532-7047
www.arts-unlimited.com
Arts Unlimited was founded with one goal in mind: to provide customers with a high-quality, smart, and reliable gift shop. Offerings include a wide variety of art, accessories, and decorations, and gifts for birthdays, retirements, weddings, holidays, and more.

The Baker’s Pin
34 Bridge St., Northampton
(413) 586-7978
www.thebakerspin.com
This extensive kitchen store carries a wide range of cookware, cutlery, electric devices, bakeware, kitchen tools, home goods, cookbooks, and food products as well. But it also offers an array of cooking classes, both online and in person, exploring different foods and techniques appropriate for the season.

Berkshirecat Records
63 Flansburg Ave., Dalton
(413) 212-3874
www.berkshirecatrecords.com
Berkshirecat Records is an independent record store located inside the Stationery Factory building, selling quality vintage and new vinyl records of classic rock, blues, jazz, psychedelic, garage rock, folk, indie, pop, and metal recordings.

The Bookstore and Get Lit Wine Bar
11 Housatonic St., Lenox
(413) 637-3390
www.bookstoreinlenox.com
The Bookstore, a fixture in Lenox for more than 40 years, was actually born in the neighboring town of Stockbridge, in the living room of a small rented house behind an alley that housed a then little-known café that later came to be known as Alice’s Restaurant. The bar is open whenever the bookstore is, and the bookstore stays open later some nights when the bar is open as well.

The Closet
79 Cowls Road, Amherst
(413) 345-5999
www.thecloset.clothing
The Closet’s mission goes beyond connecting shoppers to the perfect black dress or favorite pair of shoes. Environmentally conscious, the shop wants to do its part to prevent clothing from being thrown away. Buying previously loved apparel stops the further use of natural resources and prevents clothing from wasting away in landfills.

Fresh Fitness Training Center/Fresh Cycle
320 College Highway, Southwick
(413) 998-3253
Fresh Fitness is a new, full-service, state-of-the-art gym with brand-new equipment and training for all fitness levels, from beginner to advanced, and is located in the same building that houses Fresh Cycle, one of the region’s premier indoor cycle studios, with more than 25 classes per week led by certified instructors.

Glow Studio Suites
2260 Westfield St., West Springfield
(413) 579-8455
Glow Studio Suites features individual beauty experts in one location. Walk in the door and find a lash artist, nail technician, esthetician, and injector. In addition, spray tan and waxing services are available.

Highlands Cards and Gifts
303A Springfield St., Agawam
(413) 315-3442
www.highlandscardandgift.com
Highlands Card and Gifts features a large selection of Irish and Celtic products, Irish knit sweaters, and Irish saps year round, as well as Celtic jewelry, Emmett glassware, Irish and Celtic themed sweatshirts and tees, wool capes, handbags, mugs, teapots, wall hangings, lamps, Irish foods, and much more.

Julie Nolan Jewelry
40 Main St., Amherst
(413) 270-6221
www.julienolanjewelry.com
Julie Nolan’s work blends traditional techniques of wax carving, diamond setting, and goldsmithing with a modern sensibility for design and composition. She sells her own handcrafted, one-of-a-kind heirloom pieces by hand in her studio and boutique, alongside a curated selection of home and gift items by Western Mass. makers.

Pilgrim Candle
36 Union Ave., Westfield
(413) 562-2635
www.pilgrimcandle.com
Pilgrim Candle Co. opened its doors in 1992 and expanded its already-busy operation in 2000 by acquiring Main Street Candlery. In 2007, Pilgrim expanded into private-label manufacturing. Since its first sale more than 30 years ago, Pilgrim Candle has developed a high-quality line of scented candles for candle lovers all around the world.

Pioneer Valley Food Tours
(413) 320-7700
www.pioneervalleyfoodtours.com
This enterprise creates walking food tours that explore local flavors from Northampton and around the region. It also creates gift boxes sourced from the region’s fields and farms, as well as Pioneer Valley picnic baskets of selections ready to bring on an outdoor adventure. Choose a pre-set tour itinerary, or create a custom tour to suit your tastes.

Pottery Cellar
77 Mill St., Westfield
(413) 642-5524
www.potterycellar.com
Located in the Mill at Crane Pond, the Pottery Cellar offers the largest selection of authentic Boleslawiec pottery in New England. From holiday-themed seasonal pieces to full dining sets, Pottery Cellar is a regional destination for authentic Polish pottery.

Renew.Calm
80 Capital Dr., West Springfield
(413) 737-6223
www.renewcalm.com
Renew.Calm offers an array of both medically based and luxurious spa treatments, with services including skin care, therapeutic massage, nail care, body treatments, yoga, hair removal, makeup, and lashes. Multi-treatment packages make great gifts.

The Shot Shop
722 Bliss Road, Longmeadow
(413) 561-7468
www.ssmedspa.com
The Shot Shop medical rejuvenation spa offers medical rejuvenation treatments for a wide variety of needs. Anyone feeling run down and tired, noticing visible signs of aging, or with other concerns that need to be addressed may find a medical rejuvenation treatment here that will help.

Springfield Thunderbirds
45 Bruce Landon Way, Springfield
(413) 739-4625
www.springfieldthunderbirds.com
A great deal for big-time hockey fans and folks who simply enjoy a fun night out with the family, Thunderbirds games are reasonably priced entertainment in Springfield’s vibrant downtown. The AHL franchise plays home games through April at the MassMutual Center, with a constant stream of promotions.

Springfield Wine Exchange
1500 Main St., Springfield
(413) 733-2171
Located on the ground floor of downtown Tower Square, the Springfield Wine Exchange offers customers local select craft beers and wines imported from around the world, providing a wide array of options for any occasion.

Visual Changes Salon
100 Shaker Road, East Longmeadow
(413) 525-1825
www.visualchangesinc.com
With more than 30 years dedicated to all dimensions of the hair industry, salon owner Mark Maruca is widely respected for his innovative approach hair styling. Services and products are individualized to suit client needs.

Zen’s Toyland
803 Williams St., Longmeadow
(413) 754-3654
www.zenstoyland.com
Zen’s Toyland sells a variety of items ranging from baby teethers to adult puzzles, including high-quality, unique items that aren’t available elsewhere. All the toys are handpicked, and the shop also has a playroom for children to ‘test drive’ items.

Reconsider Northampton’s Redesign

By Contributor November 8, 2023

Opinion

By Judy Herrell, John DiBartolo, James Winston, Jon Reed, and Amy Mager

Save Northampton Main Street has surveyed the Northampton Main Street business district to assess the number of businesses in favor or opposed to the city of Northampton’s redesign. In the media, city officials have touted that 50 businesses on Main Street are in favor of their redesign.

However, our findings clearly show that most downtown businesses are opposed to the current redesign plans by the city of Northampton. Our results show, of 100 businesses surveyed, 69 are opposed, while only two are in favor. Several businesses were not aware of the proposed changes and needed more information, and four businesses were neutral about the changes.

What was the most interesting was how businesses listed on the city’s list that were surveyed by our team were not aware they were on any list, let alone one that was published.

Additionally, Save Northampton read and analyzed the Toole Design report [detailing the Main Street redesign]. John DiBartolo of our group wrote a letter outlining these issues to the City Council in Northampton and the Mayor’s office. Some of these issues are:

• Traffic increase and travel time. This new design will create traffic jams and extended travel time for people traveling down Route 9 through Northampton for any reason. According to the city, the intention of the project is to slow down traffic for safety, and it was never an objective to keep travel time or improve traffic flow.

• Bike safety. This new design will create unsafe bike crossings at intersections without traffic lights and visibility issues with drivers, bikers, and pedestrians. According to the city, the current design’s internal lanes are 40% safer than other designs, including our suggestion of adjacent-to-traffic bike lanes with enhancements.

• Requested public meetings. The city refuses to meet with business owners and residents except individually. They claim to have had many in-person meetings during COVID, which were Zoom meetings. There was no city public hearing on this subject (only one Zoom hearing by the DOT). The city feels that their process was robust and inclusive.

• Comparing Northampton’s redesign to Concord, N.H. While the size of Concord and Northampton are relatively the same, Concord is set up as a grid, which Northampton is not. Northampton has no natural bypass for drivers who wish to bypass the Northampton shopping district. Furthermore, Concord has shared bike and vehicle lanes with no separate bike path and was always a one-lane-in-each-direction road. In Concord, they removed parking to create larger sidewalks and green areas. Concord’s main shopping district is not a state highway. Concord’s city officials conducted 50 meetings in person with concerned businesses and residents before deciding on their plan. Northampton had only 20 Zoom meetings, the last of which was both in-person and over Zoom.

• A new design alternative. Save Northampton has had numerous discussions with residents, businesses, and property owners and is currently working with an architect to provide the city with an alternative plan which can also receive the same funding and might be a bit less expensive.

We continue to hope the city of Northampton will call for a public meeting to access the city’s views on the current design, as our data indicates more residents are opposed than in favor of this design. Our Save Northampton Main Street petition currently has more than 2,000 signatures, mostly from Northampton, Florence, and Leeds residents and business owners.

Judy Herrell, John DiBartolo, James Winston, Jon Reed, and Amy Mager are members of Save Northampton Main Street.

Senate Committee Approves Historic Cannabis Legislation

By Contributor October 27, 2023

Cannabis

A Banking Breakthrough?

Late last month, the U.S. Senate Banking Committee approved the Safe and Secure Enforcement and Regulation (SAFER) Banking Act, clearing the way for a floor vote. The bipartisan legislation, introduced by U.S. Sens. Jeff Merkley and Steve Daines, would allow financial institutions to do business with the legal cannabis industry without fear of running afoul of federal banking regulations. The legislation cleared the committee on a 14-9 vote.

The SAFER Banking Act would afford the cannabis industry better access to financial services that are currently unavailable or not reliably accessible, including depository services, electronic payments, and lending. Similar bipartisan legislation has passed in the U.S. House of Representatives seven times in previous congressional sessions, but has yet to receive a vote in the Senate. Last month’s committee vote clears a path for the bill to finally make its way to the Senate floor for a vote.

Aaron Smith

“The committee’s approval of the SAFER Banking Act gives hope to thousands of compliant, taxpaying businesses desperately trying to access the basic financial services other businesses take for granted.”

During the markup session, multiple amendments were offered. One would create a five-year sunset for the legislation unless a report from the Treasury Department certified that it had decreased the racial wealth gap and ameliorated other negative economic impacts of the war on drugs. This amendment ultimately failed.

Advocates are hopeful the Senate will approve the SAFER Banking Act given the strong bipartisan support. Seventy-six senators currently represent states that regulate the sale of cannabis for medical or adult use, including 28 Republicans.

“The committee’s approval of the SAFER Banking Act gives hope to thousands of compliant, taxpaying businesses desperately trying to access the basic financial services other businesses take for granted,” said Aaron Smith, CEO of the National Cannabis Industry Assoc. “This uniquely bipartisan legislation has the potential to save lives and help small businesses; it’s time for Congress to get it to the president’s desk without further delay.”

The Department of Health and Human Services and the Food and Drug Administration also recently made an official recommendation to move cannabis from Schedule I to Schedule III status in the federal Controlled Substances Act (see story on page 37), but that change would not affect the current banking situation for the industry.

The SAFER Banking Act is endorsed by the National Assoc. of Attorneys General, the National Assoc. of State Treasurers, the American Bankers Assoc., the Credit Union National Assoc., Independent Community Bankers of America, the NAACP, Americans for Prosperity, the United Food and Commercial Workers Union, and a bipartisan group of 20 state governors.

Smith noted that current banking regulations force cannabis businesses to operate in a very cash-heavy environment as they are unable to process credit cards and sometimes even unable to access depository services. The situation has led to numerous robberies and violent crimes targeting cannabis retail facilities and industry employees.

The bill would also open the door to greater business lending in the industry, providing access to capital that advocates say is sorely needed by small and independently owned cannabis businesses.

Laws to make cannabis legal for adults have passed in 23 states as well as the District of Columbia, while 38 states have comprehensive medical cannabis laws. Three in four Americans live in a state where cannabis is legal in some form.

“The vast majority of Americans now live in a state that is effectively regulating legal medical or adult-use cannabis sales,” Smith added, “but federal banking regulations are exposing millions to an unnecessary and completely avoidable risk of violent crime.”

HNE Medicare Advantage Plan Earns Health Equity Certification

By Contributor October 27, 2023

Insurance

Addressing Unique Needs

Health New England is the sixth health plan in the country to earn the National Committee for Quality Assurance (NCQA) Health Equity Certification for Medicare, and the first in Massachusetts to earn the recognition for both its Medicare and commercial health plans.

Health New England received this certification for its Medicaid, Medicare, and commercial plans by demonstrating exceptional efforts in reducing health disparities and addressing the unique needs of diverse populations.

To earn NCQA Health Equity Certification, health plans must build an internal culture that supports health-equity work; collect and assess data to help create and offer culturally humble care, including language services; ensure that its provider networks are delivering culturally and linguistically appropriate care to meet individuals’ diverse needs; and identify and act on opportunities to reduce health inequities and improve care.

Richard Swift

“We are committed to continually improving our efforts to reduce health disparities, eliminate barriers to care, and ensure equitable access to healthcare services for all.”

“At Health New England, we believe that everyone should have the opportunity to achieve their best possible health. Receiving Health Equity Certification from NCQA underscores our commitment to advancing health equity for our members and the communities we serve,” said Richard Swift, president and CEO of Health New England. “This achievement reflects the hard work and dedication of our entire team, as well as our ongoing collaboration with healthcare providers, community organizations, and members. We are committed to continually improving our efforts to reduce health disparities, eliminate barriers to care, and ensure equitable access to healthcare services for all.”

NCQA President Margaret O’Kane noted that “the prevalence of racial and ethnic disparities has been a barrier to improving the quality of healthcare of many Americans for too long. Organizations achieving Health Equity accreditation are leaders in closing this gap, and NCQA commends them for their dedication.”

NCQA Health Equity Certification debuted in late 2021. Massachusetts will require health plans to obtain the certification for their Medicaid (MassHealth) plans by 2025. To ensure equity for all members, Health New England led an organization-wide strategy to achieve the certification for all plans.

“We believe that all customers deserve fair and equitable access to care and services no matter what type of health plan they have,” said Shelly McCombs, Quality and Accreditation manager for Health New England. “We are not just looking at whether people have physical health problems like diabetes. We are looking at the social determinants of health — the societal factors that affect people’s ability to be well, such as housing, healthy-food access, the availability of good jobs and childcare, and more. These are all factors that impact people’s ability to focus on their well-being.”

Such health-equity practices have had real-world outcomes. For example, Health New England worked to develop a program through its BeHealthy Partnership Plan with Revitalize Community Development Corp. and Baystate Health. Health New England identified the need to address social determinants of health to help diabetic members access healthy food. Members enrolled in the program receive a cooking appliance of their choice (microwave, slow cooker, or induction cooktop); a kitchen-supply bag; diet education; and 10 weeks of home-delivered, nutritious groceries specially curated for people with diabetes by registered dietitians. The groceries are culturally tailored and feature foods that promote a carbohydrate-controlled, therapeutic diet.

Health New England has made an organization-wide commitment to health equity, McCombs said, and continues to work with the healthcare practitioners in its network, community organizations, and other stakeholders to provide culturally humble care, identify health inequities, and bridge gaps. NCQA Health Equity Certification has helped Health New England earn a four-star overall health-plan rating from NCQA for commercial and Medicaid plans.

GCC Grant Aims to Drive Equitable Clean-energy Workforce Development

By Contributor October 13, 2023

GCC campus, as a whole, is innovative and entrepreneurial

Construction

Greener Pastures

Greenfield Community College (GCC) will develop a new HVAC training program that’s focused on improving equity in the green workforce thanks to a grant from the Healey-Driscoll administration.

GCC’s Workforce Development division is developing the HVAC training program with funding from an $18 million grant designed to drive equitable clean-energy workforce development. The awards are being provided by the Massachusetts Clean Energy Center (MassCEC), a state agency dedicated to accelerating the growth of the clean-energy sector to meet the Commonwealth’s clean-energy, climate, and economic-development goals.

“We’re thrilled to partner with MassCEC to bring this high-demand workforce-training program to Greenfield,” said Kristin Cole, vice president of Workforce Development at GCC. “This grant award, rooted in equity, will allow GCC to train unemployed and underemployed individuals for a family-sustaining career in a growing industry. HVAC technicians will become increasingly more in-demand over the next few years to help meet the state’s climate targets for 2030 and 2050.”

Michelle Schutt

“Clean-energy jobs are good for the environment and good for family incomes. This is a win-win situation for GCC and our region.”

GCC is receiving $1.1 million to develop and deliver a HVAC training program that includes paid on-the-job training with employers. Trainees will be provided technical skills and career-readiness training, as well as professional certifications, comprehensive student support, and a two-month paid internship.

These efforts aim to provide career-ready individuals for an industry that will need to increase the number of professionals by 17% between now and 2030, according to a recently released needs assessment for the Massachusetts clean-energy workforce.

“Clean-energy jobs are good for the environment and good for family incomes. This is a win-win situation for GCC and our region,” GCC President Michelle Schutt said.

The college and its partners at MassHire Franklin Hampshire Career Center will specifically focus recruitment efforts on historically underrepresented individuals.

“Building and expanding our workforce is a foundational element of the clean-energy transition,” MassCEC CEO Jennifer Daloisio said. “The evolution of MassCEC’s programming in workforce development shows our commitment to inclusive and intentional growth that delivers good-paying jobs to families and clean energy to residents across the Commonwealth. We are grateful for the Healey-Driscoll administration’s continued support, and we look forward to seeing these organizations carry out their promising work.”

Sue Surner, CEO of Surner Heating Co. and a GCC employer partner, added that “this program will be a critical resource to prepare students for an excellent career path in the HVAC industry. We are excited to not only support GCC’s efforts to design a valuable training program with industry-recognized credentials as outcomes, but also to partner with GCC to provide paid internships to the participants coming out of this extensive training program.

“This grant will allow GCC to add 45 newly qualified individuals to our regional HVAC workforce pipeline,” she added, “and with the work ahead of us to move residents across the state off of fossil fuels and into cleaner energy, this couldn’t come at a better time.”

Owning Real Estate in Other States

By Contributor September 29, 2023

What Does It Mean for Estate-tax Liability in Massachusetts?

By Elizabeth Dougal, Esq.

Massachusetts estate-planning clients frequently ask whether they should transfer their vacation property, typically located in Florida or New Hampshire, to a limited liability company. The answer is almost always ‘no.’

Why? Because Massachusetts does not tax out-of-state real estate held individually. However, it does tax out-of-state intangible assets. The transfer of the real estate to a limited liability company would convert that real estate to an intangible asset for purposes of the application of the Massachusetts estate tax.

Elizabeth Dougal

Let’s say you are a Massachusetts resident with a vacation condominium in Florida valued at $300,000. You die with $800,000 of other assets in Massachusetts. Massachusetts imposes an estate tax up to 16% on a Massachusetts taxable estate of more than $1 million. Massachusetts does not impose its estate tax on real property held individually outside of Massachusetts. Hence, in this scenario, you would owe no Massachusetts estate tax.

What if you transferred that $300,000 Florida condominium to a limited liability company? You sometimes rent it out and want the limited liability company to decrease any liability exposure. Now, when you die, your Massachusetts estate is $1.1 million, thus subject to Massachusetts estate tax. The transfer of the condominium to the limited liability company converted it to an intangible asset includable for Massachusetts estate tax purposes. You could have managed your risk to limit potential liability through the acquisition of appropriate liability insurance instead of transferring it to a limited liability company.

You might also consider transferring your out-of-state property to an entity for probate avoidance, privacy, or ease of future transferability. For these purposes, the use of a simple ‘living’ or revocable trust might accomplish your goal. Massachusetts cannot impose Massachusetts estate tax on real property located outside of Massachusetts, whether held individually or within an arrangement that is the equivalent of individual ownership. A revocable trust is such an arrangement.

One last caveat on the example involving the Florida condominium mentioned above: Florida has no estate tax. Neither does New Hampshire. You may experience a different outcome in states with an estate tax. You will want to consult an estate tax advisor to determine if the state where the property is located has a higher estate tax rate than Massachusetts. If so, use of a limited liability company or other entity may be warranted.

Still, in general, you want to avoid dying as a Massachusetts resident with an estate over $1 million that includes real estate in a limited liability company, unless the real estate is located in Massachusetts or a state with at least an equivalent estate tax.

Elizabeth Dougal is an attorney with Bulkley Richardson and a member of the firm’s Trusts & Estates department.

Develop a Strategy Now to Be Tax-efficient In Retirement

By Contributor September 29, 2023

Wealth Management

Planning Is the Key

By Barbara Trombley, CPA

Does anyone like to pay taxes? Most of my clients tolerate paying taxes like eating their least-favorite vegetables. They are difficult to calculate and hard to understand, especially with a business generating uneven cash flow or an employed couple with disparate incomes.

But what if I told you there are ways to eliminate taxes in retirement or minimize federal taxes to a palliative 12% bracket?

Tax planning is an important part of retirement planning. When I ask clients what their target monthly spend in retirement is, they never consider the tax effect. For instance, a married couple may say they need to generate $6,000 per month to pay all their bills when they retire. Typically, this means the dollar amount that is deposited in their bank account.

But as a financial planner, I immediately think of the gross amount. How much do we need to generate on a gross level, before taxes, to net them $6,000? Depending on the source of funds, some of my clients may have a tax bill of zero, allowing them to draw only the $6,000 per month out of their investment account(s)!

Barbara Trombley

“When I ask clients what their target monthly spend in retirement is, they never consider the tax effect.”

How can this be? Most retirees rely on Social Security to generate a large portion of their income. Some people pay tax on Social Security, and others do not. Whether you pay taxes or not depends upon your total combined taxable income. Combined income includes your adjusted gross income, any non-taxable interest you receive, and half of your Social Security benefits (adjusted gross income includes earnings, investment income, retirement-plan withdrawals, pension payments, and other taxable income.)

If a married couple has a combined income of less than $32,000, then none of their Social Security income is taxable on a federal level or in Massachusetts. For a single person, the limit is $25,000. Depending on the outcome of this formula, 85% of Social Security benefits could be taxable. The key to paying no federal taxes in retirement is to have other, non-taxable sources of funds.

How can you plan now to possibly pay zero taxes in retirement? A Roth 401(k) or Roth IRA is the best place to start. Most employer 401(k) plans now have a Roth option. This is when your contributions are made on an after-tax basis instead of pre-tax. If you are in a high tax bracket now, you would need to consider the tradeoffs of paying taxes now to not pay later.

In 2023, the limit for Roth 401(k) contributions is $22,500 with a $7,500 catch-up contribution for those over age 50. If you do not have a 401(k) plan at work, you can make a Roth IRA contribution of $6,500 per year, or $7,500 per year if you are over age 50. When you withdraw Roth funds after age 59½, the withdrawals are tax-free and do not impact taxable income.

Another great source of non-taxed income in retirement is investment accounts or savings outside of retirement accounts. If invested efficiently, where capital gains and interest income can be minimized, drawing from these accounts in retirement can have little effect on taxable income. Tax-efficient investing may involve putting interest-generating investments in a Roth IRA and keeping investments that generate long-term capital gains in a brokerage account.

For an example of efficient tax planning, consider client couple A versus client couple B. Both clients are married and file taxes jointly. Each of these couples would like to generate $6,000 per month in cash to spend in retirement. Each client couple generates $3,000 per month in Social Security after paying for Medicare. Client couple A each has a Roth IRA and draws the remaining $3,000 per month out of one of their accounts to meet spending needs. Since withdrawing from Roth accounts is non-taxable after age 59½, they would pay $0 in federal and $0 in Massachusetts state taxes.

Client couple B has only taxable retirement accounts. They draw the needed $3,000 from one of their taxable accounts. If there are no other factors, according to 2022 federal tax tables, they could owe approximately $4,500 in federal taxes and $1,600 in the state of Massachusetts, for a total of more than $6,000 in total income tax!

As a financial planner, I would need to generate an additional $500 per month to cover client couple B’s taxes. If client couple B withdraws a standard 4% from their retirement accounts in retirement, they would need to save another $150,000 during their working years compared to client couple A.

Proper tax planning should be a very important part of retirement planning. Many times, income taxes cannot be avoided, but they can be managed efficiently. Working with your CPA and financial planner is always a good place to start.

Barbara Trombley, CPA is managing partner at Trombley Associates. Securities offered through LPL Financial. Member FINRA/SIPC. Advisory services offered through Trombley Associates, a registered investment advisor and separate entity from LPL Financial. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own, separate from this educational material.

What’s New in Tax Laws for Individuals and Businesses?

By Contributor September 28, 2023

Accounting and Tax Planning Special Coverage

Rolling with the Changes

By Daniel Eger and Cindy Gonzalez

Tax laws are like a constantly shifting landscape, subject to periodic changes that can significantly impact your financial bottom line. Whether you’re an individual taxpayer striving to maximize deductions or a business owner who wants to optimize your financial strategies, staying informed about the latest tax-law changes is paramount.

Daniel Eger

Cindy Gonzalez

In this ever-evolving tax environment, we’ll explore the essential updates that individuals and businesses need to be aware of to navigate the new tax frontier effectively. We’ll dive into the critical modifications that may influence your financial planning and tax strategies in the coming year.

TAX-LAW CHANGES IMPACTING INDIVIDUALS

In 2023, several significant adjustments have been made to tax laws that individuals should be aware of. These changes encompass a wide range of topics, from energy credits to retirement contributions, interest rates, and tax brackets. Let’s delve into some of the key changes that may impact your financial planning.

Residential Energy Credits

For individuals looking to reduce their environmental footprint and lower their tax liabilities, residential energy credits are worth exploring. These credits aim to incentivize the adoption of clean and energy-efficient technologies in homes. A notable change for 2023 is the Clean Vehicle credits, which are now effective after April 18. These credits apply to new, used, or commercial vehicles, with qualifying requirements for sellers, dealers, and manufacturers.

Interest-rate Changes for Q4 Payments

Starting on Oct. 1, 2023, significant adjustments will be made to interest rates for tax payments. In cases of overpayments, where individuals have paid more than the amount owed, the interest rate will be set at 8%. In instances of underpayments, where taxes owed have not been fully paid, individuals will be subject to an 8% interest rate.

Contributions to Retirement Savings

In an effort to help individuals save for their retirement, the IRS has raised the contribution limits for 401(k) and IRA plans in 2023. If you contribute to a 401(k) or 403(b), you can now put in up to $22,500 a year, an increase from $20,500. Those age 50 or older can make an additional catch-up contribution of $7,500. Similarly, traditional and Roth IRA contributors can now contribute up to $6,500 (up from $6,000), with an extra $1,000 catch-up contribution available for those age 50 and older.

“Whether you’re an individual taxpayer striving to maximize deductions or a business owner who wants to optimize your financial strategies, staying informed about the latest tax-law changes is paramount.”

Enhanced IRA Contribution Limits

Traditionally, there have always been strict constraints on contributions to both traditional and Roth IRAs. For the majority of individuals, the contribution ceiling stood at $6,000. However, for those age 50 and above, there was the opportunity to contribute an additional $1,000 as catch-up contributions, bringing the total to $7,000.

The exciting news for 2023 is a boost in these limits by $500, allowing Americans to now contribute up to $6,500 to their IRA. For individuals age 50 and older, this figure escalates to $7,500.

Increased Contributions to Employer-sponsored Retirement Plans

Following a similar upward trajectory, the contribution limits for employer-sponsored retirement plans have also experienced a positive adjustment. In 2022, the threshold for employee contributions stood at $20,500. However, in 2023, this limit has risen by $2,000, providing a new maximum of $22,500. For those eligible for catch-up contributions, the prospects for bolstering retirement savings have become even more enticing, with an elevated contribution limit of $30,000.

It’s important to note that, if you participate in multiple workplace retirement plans, the limitations encompass all salary deferrals and total contributions across these plans. Contributions made to other types of accounts, such as an IRA, remain separate and do not impact these thresholds. These enhanced contribution limits offer individuals and employees greater flexibility and opportunities to secure their financial future.

Health Savings Account Contribution Limits

Health savings accounts (HSAs) have become increasingly popular for managing medical expenses and as an investment vehicle. In 2023, individuals will be allowed to contribute an additional $200 per year to their HSAs, raising the maximum contribution limit to $3,850. For families, the threshold for coverage will also increase by $450, reaching a maximum of $7,750 for the fiscal year. Keep in mind that you must meet the minimum deductibles to qualify for an HSA plan, which are $1,500 for individuals and $3,000 for families.

Tax Brackets for 2023

Lastly, it’s essential to be aware of the changes in tax brackets for 2023. While there are still seven tax rates ranging from 10% to 37%, the income thresholds for these brackets have been adjusted upward by about 7% from 2022. This adjustment reflects the impact of record-high inflation, potentially placing some individuals in a lower tax bracket than in previous years.

These changes underscore the importance of staying informed about tax-law updates to make informed financial decisions and optimize your tax-planning strategy. Be sure to consult with a tax professional or financial advisor to understand how these changes may affect your unique financial situation.

TAX-LAW CHANGES IMPACTING BUSINESSES AND INDIVIDUALS REPORTING ON SCHEDULE C

In the dynamic landscape of tax laws, staying informed about changes that affect both businesses and individuals reporting their income and expenses on Schedule C is of paramount importance. In recent years, several noteworthy adjustments have been made, significantly impacting the way deductions are calculated, particularly for expenses like Section 179 deductions, bonus depreciation, and meals and entertainment. Here, we delve into these pivotal changes.

Section 179 Deduction Limits

One of the cornerstones of tax planning for businesses has been the Section 179 deduction. This deduction enables businesses to write off the cost of qualifying property and equipment in the year they are placed in service, rather than depreciating them over time.

In 2023, the Section 179 deduction limit has been raised to a generous $1,160,100 for property used 50% or more for business purposes. This marks an increase of $80,000 from the previous year. This change empowers businesses to invest in capital assets and equipment while enjoying substantial tax savings.

“While there are still seven tax rates ranging from 10% to 37%, the income thresholds for these brackets have been adjusted upward by about 7% from 2022. This adjustment reflects the impact of record-high inflation, potentially placing some individuals in a lower tax bracket than in previous years.”

Meals Deductions

The tax treatment of meals expenses has witnessed a notable transformation, with implications for businesses and individuals alike. During the height of the COVID-19 pandemic in 2021 and 2022, the IRS allowed a temporary 100% deduction for such expenses to provide economic relief and support the struggling hospitality industry.

However, starting in 2023, there has been a shift in the deductibility of meal expenses. Any deductible meal is now subject to a 50% deduction under the guidelines outlined in Publication 463. This change underscores the need for businesses and individuals to carefully document and categorize their expenses and adhere to the new rules governing these deductions.

Interest-rate Changes

Starting on Oct. 1, 2023, significant adjustments will be made to interest rates for tax payments. Corporations will experience a slightly different rate structure than individuals. For overpayments exceeding $10,000, the interest rate on the excess amount will be reduced to 5.5%. In contrast, large corporate underpayments, representing taxes owed but not fully paid, will incur a higher 10% interest rate. These adjustments in interest rates aim to ensure fairness and compliance within the tax-payment system for both individuals and corporations.

Changes to Bonus Depreciation

The window of opportunity for fully benefiting from one of the Tax Cuts and Jobs Act’s (TCJA) most significant provisions is closing rapidly. This provision allows for a 100% bonus depreciation on a broad range of assets categorized as ‘qualified property.’ Initially set to expire at the close of 2019, the TCJA extended these bonus depreciation rules for assets placed in service after Sept. 27, 2017, and before Jan. 1, 2023, increasing the deductible amount to 100%.

However, unless there are changes in the law, this bonus percentage is set to gradually decrease over the next few years, ultimately phasing out entirely (100% in 2022, 80% in 2023, 60% in 2024, 40% in 2025, 20% in 2026, and 0% in 2027).

Stay Informed

The evolving landscape of tax laws necessitates vigilant awareness and proactive tax planning for businesses and individuals who report on Schedule C. The changes to Section 179 deductions, the phasing out of bonus depreciation, and the modifications to meals and entertainment deductions can have a significant impact on tax liabilities. As such, seeking guidance from tax professionals and staying informed about these changes is crucial for optimizing tax strategies and ensuring compliance with the latest IRS regulations.

This material is generic in nature. Before relying on the material in any important matter, users should note date of publication and carefully evaluate its accuracy, currency, completeness, and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances.

Daniel Eger is a tax supervisor, and Cindy Gonzalez is an associate, at Holyoke-based accounting firm Meyers Brothers Kalicka, P.C.

ESG Investing Continues to Be Misunderstood

By Contributor September 28, 2023

Special Coverage Wealth Management

Unpacking the Controversy

Presented by Jay Durand

The topic of environmental, social, and governance (ESG) investing has become increasingly popular over the last two to three years, sparking many discussions and questions. What is, at its core, a simple attempt to make better investment decisions has surprisingly caused quite a bit of controversy. So, what are we talking about when we discuss ESG investing, and what is fueling the debate?

The ABCs of ESG

First, let’s start with the basic ESG standards themselves. Environmental, social, and governance standards can certainly all be interpreted as politically oriented, but why? Taking them out of order:

• Corporate governance means being responsive to shareholders. This is what any investor should want.

• Social means taking account of a business’ impact on society. This certainly affects the appeal of that business to customers and, therefore, can also affect the financial results.

• Environmental also has a perception impact, as well as an impact on whether the business can be run sustainably over time. For example, slash-and-burn agriculture may be more profitable in the short run as long as there is always more jungle. But properly managing farmland is more sustainable — and likely more profitable over time.

ESG doesn’t replace the financial metrics, but gives a more complete picture of them. There’s nothing here that implicitly should be a problem, as they are simply analytical tools.

Jay Durand

“The worry seems to be that asset managers are running their businesses with a goal to change the world in certain ways. This appears contrary to what investors see as the goal: to do whatever is maximally profitable.”

The Debate

Once we understand the basics, the question often raised is, how are these tools being used? The worry seems to be that asset managers are running their businesses with a goal to change the world in certain ways. This appears contrary to what investors see as the goal: to do whatever is maximally profitable.

Investors seem to have two complaints about ESG investing. The first one is that investors are suffering as companies are being forced by institutional asset managers to run their companies in a suboptimal way. On the contrary, asset managers typically get paid based on a percentage of the asset value they manage, so they have a significant incentive to get the highest returns they can. Those same asset managers are, as fiduciaries, subject to legal requirements to do the same. So the asset-management industry is motivated to seek out the best possible financial returns by both potential rewards and potential negative consequences.

To believe that asset managers are not trying to maximize returns is to conclude that they are willing to hurt their own paychecks and take meaningful legal risks to change the world. Does this seem likely? Think about this: with billions of dollars on the table, if there was any real evidence of asset-manager slanting, wouldn’t there already be lawsuits in play?

The second complaint is that institutional asset managers are forcing companies to drive outcomes that the investors don’t support. That’s not to say some fund managers aren’t trying to change the world; some are. But those funds are typically very explicitly marketed as such to investors looking for that kind of impact. Since those funds are looking for a specific type of investor, asset managers have a clear incentive to make their orientation obvious — and their self-interest and fiduciary requirements point very clearly in that direction.

For the remainder of the industry, ESG may be a marketing strategy or simply incorporated in their standard investment practice. This makes sense for purely financial reasons, as we noted when we covered the basic standards. Those products are out there and, for those who want them, are easy to find.

Is There Reason to Worry?

ESG investing is a set of analytical techniques designed to further inform the financial analysis and investment decision. Those tools can, of course, then be used to implement value-based judgments and to drive desired impacts from that investment, just as with other value-based investment processes. Investment managers should use all the tools available to improve their results, but they have clear incentives (both positive and negative) to disclose both how they are applying those tools and the results.

Is this something to have on your radar? Yes, for reasons both positive and negative. As always, please reach out to our office to discuss your current plan and any concerns.

This material is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Investments are subject to risk, including loss of principal.

Environmental, social, and governance criteria are a set of non-financial principles and standards used to evaluate potential investments. The incorporation of ESG principles provides a qualitative assessment that can factor heavily into the security selection process. The investment’s socially responsible focus may limit the investment options available to the investor. Past performance is no guarantee of future results. Please contact your financial professional for more information specific to your situation.

This article was authored by Brad McMillan, CFA, CAIA, MAI, managing principal, chief investment officer, at Commonwealth Financial Network, and presented by James E. Durand, CPA of MountainOne Investments, where he analyzes the financial markets and researches stocks, mutual funds, and other investments. He is also responsible for managing many of MountainOne Investments’s fee-based investment accounts. Durand holds his FINRA Series 4, 7, 24, 63, and 86 securities registrations as an investment adviser representative of Commonwealth Financial Network. He earned the Chartered Financial Analyst designation in 2003. He has also served on the board of directors for the Northern Berkshire United Way since 2005; (413) 664-4025; [email protected]

The financial advisors of MountainOne Investments offer securities and advisory services through Commonwealth Financial Network, member FINRA/SIPC, a registered investment adviser. Fixed insurance products and services offered through CES Insurance Agency. MountainOne Bank is not a registered broker-dealer or registered investment adviser. MountainOne Bank and MountainOne Insurance are not affiliated with Commonwealth. Insurance and investments are not insured by the FDIC and are not deposits or other obligations of, or guaranteed by, any depository institution. Funds are subject to investment risks, including possible loss of principal investment.

Further Softening Expected in Home-remodeling Market

By Contributor September 15, 2023

Home Improvement

Tracking a Turnaround

Annual expenditures for improvements and repairs to owner-occupied homes are expected to decline at an accelerating rate through the first half of 2024, according to the Leading Indicator of Remodeling Activity (LIRA) released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.

The LIRA projects that year-over-year spending on homeowner improvements and maintenance will shrink by 2.7% through the first quarter of next year and by 5.9% through the second quarter, following a slowdown in growth that began in the final quarter of 2022.

“Home-remodeling activity continues to face strong headwinds from high interest rates, softening house price appreciation, and sluggish home sales,” said Abbe Will, associate project director of the Remodeling Futures Program. “Annual spending on homeowner improvements and repairs is expected to decrease from $486 billion through the second quarter of this year to $457 billion over the coming four quarters.”

Carlos Martín, project director of the Remodeling Futures Program, added that “ongoing reductions in household moves will cause a decline in the remodeling and repair activity that typically occurs around the time of a home sale. The magnitude of the impact may be offset if owners who are locked into their current homes with ultra-low mortgage rates continue to renovate to meet changing needs or take advantage of new federal incentives for energy-efficiency retrofits.”

The Leading Indicator of Remodeling Activity (LIRA) provides a short-term outlook of national home-improvement and repair spending to owner-occupied homes. The indicator is designed to project the annual rate of change in spending for the current quarter and subsequent four quarters, and is intended to help identify future turning points in the business cycle of the home-improvement and repair industry. Originally developed in 2007, the LIRA was re-benchmarked in April 2016 to a broader market measure based on the biennial American Housing Survey.

The Remodeling Futures Program, initiated by the Joint Center for Housing Studies in 1995, is a comprehensive study of the factors influencing the growth and changing characteristics of housing renovation and repair activity in the U.S. The program seeks to produce a better understanding of the home-improvement industry and its relationship to the broader residential construction industry.

The “Improving America’s Housing 2023” report, also issued by the Joint Center for Housing Studies of Harvard University, noted that the pandemic spurred home-improvement spending that dropped once infection rates decreased and individuals were able to leave their homes and return regularly to public spaces.

“The widespread adoption of working from home, spectacular growth in home equity and saving rates, and the continued aging of the housing stock lifted the home-remodeling market to an unprecedented height of nearly $500 billion in 2021,” the report noted.

“Growth in market spending involved households at all income levels and projects of all sizes, but with disproportionate surges in home improvement among middle-income homeowners doing moderately priced projects, many of which involved their own labor.

That trend has shifted. Deane Biermeier, a housing-market expert and general contractor, recently told Forbes that the softening trend will be with us for some time.

“Homeowners spent a great deal in the past couple of years on home renovations,” he noted. “The wave didn’t have much of a chance of lasting very long. It’s not surprising … that the combination of higher borrowing costs and economic uncertainty will continue to have a negative effect on the renovation market.”

Biermeier explained that the steep increase in home renovation spending during COVID-19 was a direct result of forced time spent at home and was not an increase that would have been seen otherwise, so the slowing over the last few years is more of a leveling back to normal than a true decrease. But he is hopeful that home-renovation spending will eventually increase again.

“I don’t see home-improvement spending increasing any time soon,” he told Forbes. “My hope is that home-renovation spending will level off and stop falling by the end of 2024.”

PVPC Secures $750,000 Grant for Preservation Projects

By Contributor September 15, 2023

Home Improvement

Restoring History

The National Park Service named the Pioneer Valley Planning Commission’s (PVPC) 501(c)(3) subsidiary, the Pioneer Valley Regional Ventures Center Inc., as one of only 13 awardees nationally to receive a Paul Bruhn Historic Revitalization Grant.

The $750,000 grant will allow the state-designated regional planning agency to work with the Ventures Center to develop a subgrant program and select individual projects in rural communities for physical preservation projects that will contribute to economic vitality. It is the first time a Bruhn Historic Revitalization Grant has been awarded to a Massachusetts organization.

“From our cities to our rural towns, we know economic development is often spurred when we reinvest in places that reflect the history of community and pay tribute to the people who came before us,” PVPC Executive Director Kimberly Robinson said. “We are grateful to the National Park Service and its Paul Bruhn Historic Revitalization Grant program for providing the resources necessary to reactivate historic buildings in rural towns that will create 21st-century opportunities for growth.”

Through the Pioneer Valley Regional Ventures Center, PVPC staff will provide subgrants to competitively selected preservation and rehabilitation projects on National Register-listed anchor historic buildings in 40 communities with fewer than 12,500 residents in Hampden and Hampshire counties and parts of Worcester County. The focus is on properties that are significant to the community and, when rehabilitated, will contribute to local economic development.

Subgrant awards of up to $100,000 will be given to work in compliance with the secretary of the Interior’s standards for the rehabilitation of historic properties to conduct pre-planning; roof repair or replacement; exterior rehabilitation, such as painting, repointing, or historic siding restoration; structural repairs; window and door restoration; and life and safety improvements, including fire suppression and ADA compliance.

Eligible owner-applicants may be private, public, or nonprofit. There will be no match required. Applications will be evaluated based on population, regional distribution, variety of project type, community and economic-development potential, pre-planning to determine project needs, and the capacity of the active, local working group. A preservation restriction will be required on a property that receives funding.

These grants mark the fifth year of funding for the program honoring the late Paul Bruhn, executive director of the Preservation Trust of Vermont for nearly 40 years. The Pioneer Valley Planning Commission is the state-designated regional planning agency for the 43 cities and towns of Hampden and Hampshire counties.

Cooley Dickinson Receives $100,000 from Greenfield Co-op

By Contributor September 15, 2023

Banking and Financial Services

Kicking Off a Campaign

Cooley Dickinson Hospital announced last week that it has received a $100,000 gift from Greenfield Cooperative Bank to support the expansion and renovation of its 50-year-old Emergency Department. The bank’s donation also serves as the kickoff gift for a $1,000,000 challenge opportunity.

“This incredibly generous gift in support of the Emergency Department is an investment in our shared commitment to a healthy Pioneer Valley,” said Dr. Lynnette Watkins, president and chief operating officer of Cooley Dickinson Health Care. “We are honored and grateful to Greenfield Cooperative Bank for this gift of support, which will benefit their customers, our patients, and our collective communities by providing access to the region’s top providers and leading healthcare services in a newly renovated and expanded Emergency Department.”

The gift will support the $26 million expansion, reconfiguration, and renovation effort to allow Cooley Dickinson to meet the ever-evolving emergency-medicine needs of the community it serves. To accomplish this goal, the hospital has embarked on an ambitious and comprehensive fundraising campaign, with nearly $7.2 million has been raised to date.

“Cooley Dickinson Hospital is a vital part of the health of our neighbors in the Valley,” said Tony Worden, president and CEO of Greenfield Cooperative Bank. “This donation is a way for us to show our support for the hospital and the people it serves. Many of our staff, family, and friends have needed to receive care at the Emergency Department. We are grateful for the work that the hospital does, and we are thrilled to help them continue their mission.”

Worden added that “Greenfield Cooperative Bank is committed to giving back to the community, and we believe that supporting our local hospital is one of the best ways to do that. We are proud to be a part of this community, and we want to do our part to make it a healthier place.”

Diane Dukette, Cooley Dickinson’s chief Development officer, noted that the generosity of Greenfield Cooperative Bank will have a transformational impact as the kickoff gift for the $1 million Harold Grinspoon Foundation Challenge, which launched on Sept. 1.

Through Aug. 31, 2024, she noted, every new cash donation to Transforming Emergency Care: The Campaign for the Cooley Dickinson Emergency Department will be matched 50%, up to $1 million, by the Harold Grinspoon Charitable Foundation. “When successful, that means that we will raise up to an additional $2 million for this campaign.”

Cooley Dickinson is expected to serve 40,000 Emergency Department patients this year. That care will be provided in a 1970s-era building that was designed for 17,000 patients annually and is currently 40% undersized. A shortage of space means some patients are treated in hallways. The Emergency Department also needs to expand its services to care for an aging population (triple what it was just 10 years ago). In addition, the expansion will provide additional beds for people experiencing mental-health emergencies.

The two-year project calls for adding 6,600 square feet of space, including nine new patient rooms; eight behavioral-health beds, which can ‘flex’ as patient needs arise; and a family waiting area. In addition, a computerized tomography (CT) scanning machine, which provides timely access to diagnostic imaging, will be added to the Emergency Department.

“This campaign is critical to the health of our community,” Dukette said. “In the newly renovated Emergency Department, patients will see a nurse when they arrive, they will be treated in single patient rooms that allow for privacy, and a central nurses’ station means our clinicians can respond better to patient needs. Overall, this is about making the Emergency Department as efficient and up-to-date as possible to enable our talented providers to take the best possible care of their patients. We are so truly grateful for Greenfield Cooperative Bank for stepping forward and supporting Cooley Dickinson Hospital so generously.”

It’s Time to Review Your Employee Handbook

Modern Office

A New Chapter

By John S. Gannon, Esq.

Last month, the National Labor Relations Board (NLRB) issued a decision altering the standard used to determine whether employer handbook policies and work rules infringe on employee rights in the workplace. The NLRB will now use an employee-friendly test that asks whether workers could reasonably interpret the policy or rule as one that restricts rights protected under the National Labor Relations Act (NLRA), such as discussing wages and working conditions, or forming unions.

Put in plain, non-legalese terms, the decision significantly increases the likelihood that one or more of your handbook policies are unlawful in the eyes of the NLRB. It also applies to all private-sector employers — including those without a union presence. Violations can lead to federal penalties, lawsuits, and more. So now is as good a time as ever to review your existing employee handbooks and work rules in order to ensure compliance.

Background

Over the years, the NLRB has used a medley of tests when reviewing employee-handbook provisions to determine if a violation exists. Traditionally, the test shifts from employee/union-friendly to employer/management-friendly depending on whether the majority of board members are appointed by a Democrat or Republican president.

“Put in plain, non-legalese terms, the decision significantly increases the likelihood that one or more of your handbook policies are unlawful in the eyes of the NLRB. It also applies to all private-sector employers — including those without a union presence.”

For example, in 2015, the ‘Obama board’ issued decisions and guidance suggesting that common and well-accepted work rules on topics like confidentiality and civility in the workplace (like rules prohibiting ‘picking fights’ and ‘insulting’ co-workers) were problematic. Then, in 2017, under the ‘Trump board,’ the NLRB essentially undid this by establishing an employer-friendly standard that “overruled past cases in which the board held that employers violated the NLRA by maintaining rules requiring employees to foster ‘harmonious interactions and relationships’ or to maintain basic standards of civility in the workplace.”

The Work-rules Saga Continues

On Aug. 2, the NLRB issued its latest decision in this long-running saga on how to evaluate whether employee handbook provisions and work rules are unlawful. In a case called Stericycle Inc., the board, which has tilted toward the left under President Biden, adopted a new test to use when workplace rules and policies are challenged on the grounds that they interfere with or restrict employees’ rights to join together and improve terms and conditions of employment. These rights are often referred to as ‘Section 7 rights,’ as they are protected by Section 7 of the National Labor Relations Act.

The Stericycle decision expressly overrules the previous standard set forth by the Trump board in 2017, and (not surprisingly) was decided on a 3-1 basis, with the lone Republican board member (Marvin Kaplan) dissenting.

In Stericycle Inc., the majority held that the prior standard established by the Republican-dominated Trump board permitted employers to adopt overly broad work rules that chill employees’ exercise of their Section 7 rights. Under the new Stericycle standard, employers can maintain workplace rules only if they are narrowly tailored to “advance legitimate and substantial business interests” and minimize the risks of interfering with workers’ Section 7 rights (i.e., the right to act together to improve the workplace).

Similar to the old test under the Obama board, employer rules and policies can (and likely will) be ruled unlawful if the NLRB believes that an employee can reasonably interpret them as restricting their Section 7 rights. These put the following types of policies at risk:

• Restricting employee use of social-media platforms and communication;

• Demanding confidentiality of investigations and other workplace discussions;

• Restricting the use of cameras or recording devices in the workplace;

• Prohibiting negative comments or limiting an employee’s right to criticize the employer’s management, products, or services;

• Promoting civility in the workplace and/or prohibiting insubordination; and

• Restricting use of company communication tools such as email, Zoom, and Teams.

Under the Stericycle decision, an employer policy or rule is presumptively unlawful if an employee could reasonably interpret it to limits Section 7 rights. For example, if an employee reads a work rule requiring confidentiality of investigations as limiting their rights to discuss work-related issues with co-workers, it will likely be viewed as presumptively unlawful. The employer can then rebut that presumption by proving that (1) the work rule advances a legitimate and substantial business interest; and (2) the employer cannot advance that interest with a more narrowly tailored rule.

The first prong of this test does not seem particularly difficult for employers to establish, as most work rules presumably are put in place to advance a business-based interest. However, succeeding on the second prong will not be as simple. How often can it be argued that the goal of a work rule could be accomplished in a narrower fashion?

Consider a rule that prohibits workers from using video devices in the workplace. The business-based justification may be as simple as “we want to protect confidential information about how we do business from competitors.” This seems legitimate, to me, at least. But, moving to the second prong, could this goal be achieved by requiring employees to sign a non-disclosure agreement, or something of the like, that prohibits sharing confidential information or trade secrets in public domains? Probably.

As such, a handbook policy penalizing employees for taking unauthorized videos at work is probably invalid under the current ‘Biden board’ test of work rules.

Takeaways and What’s Next

In light of the new standard set forth by the NLRB in Stericycle Inc., both union and non-union businesses should expect more challenges to their work rules on Section 7 grounds. Employers and human-resources professionals should review their employee handbooks and work rules to make sure policies comply with the new NLRB standard. Businesses are also encouraged to consult with experienced labor and employment counsel, and keep an eye out for future updates.

John Gannon is a partner with the Springfield-based law firm Skoler, Abbott & Presser, specializing in employment law and regularly counseling employers on compliance with state and federal laws, including family and medical leave laws, the Americans with Disabilities Act, the Fair Labor Standards Act, and the Occupational Health and Safety Act; (413) 737-4753; [email protected]

When Are Alcoholism, Drug Addiction Considered Disabilities?

Law

Questions of Accommodation

By Trevor Brice, Esq.

As we move out of the COVID-19 era, employees are struggling more frequently with drug and alcohol addiction. As such, it is important for employers to know that alcoholism and drug addiction can qualify as disabilities under federal and Massachusetts anti-discrimination laws.

If an employee suffers from alcoholism or drug addiction, the employer could be exposed to liability for discriminating against that employee or failing to grant the employee a reasonable accommodation for the employee’s alcoholism or drug addiction. However, alcoholism and drug addiction do not qualify as disabilities in all circumstances.

Alcoholism and Drug Addiction as Disabilities

Despite the possibility that alcoholism or drug addiction can qualify as legal disabilities, employers do not have to tolerate employees who are drunk or under the influence on the job. As such, employees cannot excuse being under the influence at work by claiming that they suffer from alcoholism or drug addiction.

Furthermore, employees cannot request to be drunk or under the influence at work as a reasonable accommodation for alcoholism or drug addiction. In these circumstances, the employee would not be a ‘qualified’ alcoholic or drug addict that would meet the definition of disability under the ADA. Consequently, the ADA does not cover those who are currently engaging in use of illegal drugs or alcohol.

In addition, an employee who is an alcoholic or drug addict can lose their qualification as a disabled individual due to low performance, as the ADA specifically provides that an employer can hold a drug-addicted or alcoholic employee to the same standards and behaviors as other employees. However, a high-performing alcoholic or drug-addicted employee can be qualified under the ADA if the employee is no longer engaging in illegal drug use or alcohol.

Reasonable Accommodations Under the ADA

Reasonable accommodations for employees who are recovering alcoholics or drug addicts can include seeking time off for inpatient treatment; time off to undergo outpatient treatment, including methadone clinics; or being excused from work events that involve alcohol. However, qualified alcoholics and drug addicts do not necessarily need to be granted accommodation every time they ask.

For example, if a drug-addicted employee requests a reasonable accommodation in response to discipline for unacceptable performance or conduct, the employer does not have to grant that accommodation if the low performance is attributable to the current use of drugs.

However, if the low performance is due to alcohol, and the employee specifically notes this in her accommodation request, it is the employer’s responsibility to engage in an interactive dialogue to determine whether or not the requested accommodation is reasonable. Absent undue hardship, the employee may have to grant the employee’s reasonable-accommodation request, such as a modified work schedule to enter treatment or to attend an ongoing self-help program.

However, another wrinkle presents itself when the reasonable accommodation is in response to a court order for an alcohol- or drug-related offense. As a recent court case (Mueck v. La Grange Acquisitions, L.P.) notes, employers do not have to grant a requested accommodation of leave in relation to a court-order DUI for a recovering alcoholic.

Further, the employer can offer the employee a “firm choice” or “last-chance agreement,” in which the employee can be terminated for future poor performance or misconduct resulting from drug or alcohol addiction. The agreement will normally state that the employee’s continued employment is conditioned on the employee’s agreement to receive substance-abuse treatment and refrain from further use of alcohol or drugs.

Conclusion

When an employer is determining whether an accommodation for disabled employees is reasonable, it is a difficult task in and of itself. When the question becomes whether the employee is actually disabled due to current or past alcohol or illegal drug use, the question for the employer becomes even harder. If an employee is seeking a questionable accommodation request for alcoholism or drug addiction, it is prudent to seek out representation from employment counsel.

Trevor Brice is an attorney who specializes in labor and employment law matters at the Royal Law Firm LLP, a woman-owned, women-managed corporate law firm that is certified as a women’s business enterprise with the Massachusetts Supplier Diversity Office, the National Assoc. of Minority and Women Owned Law Firms, and the Women’s Business Enterprise National Council.

Keep Beneficiary Designations Updated in Line with Your Estate Plan

Law

A Critical Consideration

By Amanda R. Carpe, Esq.

Planning for the future is an essential part of life, and one of the most critical aspects of this process is estate planning. Having a comprehensive estate plan ensures that your assets are distributed according to your wishes and minimizes confusion and conflicts among your loved ones after you’re gone.

While drafting a healthcare proxy, power of attorney, and will, along with creating trusts, are crucial steps, many people overlook another vital aspect: updating beneficiary designations.

Avoid Unintended Consequences

Beneficiary designations supersede the instructions laid out in a will or trust. If you’ve named specific beneficiaries on your retirement accounts, life-insurance policies, or other financial accounts and have not reviewed or updated them in a while, it’s possible that they no longer reflect your current wishes.

Outdated designations may lead to unintended consequences, such as leaving assets to an ex-spouse, a deceased individual, or someone with whom you no longer have a close relationship. You may also unintentionally exclude one or more children if the account was established prior to the birth of all your children and has not been updated.

Ensure Smooth Asset Distribution

Your estate plan is designed to provide a clear roadmap for the distribution of your assets. By keeping your beneficiary designations current, you ensure that your assets will be transferred efficiently to your chosen beneficiaries and the distributions align with the rest of your estate plan. This process can help your loved ones avoid delays, legal complexities, and potential disputes, ensuring that your hard-earned assets are put to good use without unnecessary hindrances.

Accommodate Changes in Life Circumstances

Life is ever-changing, and so are your circumstances. Major life events like marriage, divorce, the birth of children, or the passing of a loved one can significantly impact your estate plan and beneficiary designations. By regularly reviewing and updating your beneficiaries, you can adapt to these life changes and guarantee that your financial arrangements align with your current family dynamics and relationships.

Maximize Tax Efficiency

Ineffective beneficiary designations can have tax implications. For instance, certain retirement accounts may offer different tax benefits based on the age of the beneficiary. By updating beneficiaries strategically, you can maximize tax efficiency, potentially allowing your beneficiaries to benefit from tax-deferred growth or minimizing their tax burden upon inheriting your assets.

Preserve Privacy

Unlike a will, which becomes part of the public record after probate, beneficiary designations typically bypass this process and remain private. By keeping your beneficiary designations updated and accurate, you help maintain the privacy of your beneficiaries and the details of their inheritances.

Avoid Intestate Distribution

Failing to designate beneficiaries or keeping them outdated can lead to the assets falling into intestacy. In such cases, the Commonwealth’s laws will determine how your assets are distributed, which may not align with your wishes. By actively managing your beneficiary designations, you retain control over who receives your assets, ensuring your legacy is preserved according to your desires.

Bottom Line

Estate planning is a responsible and thoughtful way to ensure your loved ones are taken care of after you’re gone. To make your estate plan truly effective, it’s crucial to regularly review and update your beneficiary designations. By doing so, you’ll not only prevent unintended consequences, but also provide your loved ones with a smoother process for asset distribution and avoid unnecessary complications.

Stay proactive, meet with an experienced estate-planning attorney to develop a cohesive estate plan, and keep your beneficiary designations in line with your current wishes — your loved ones will undoubtedly thank you for it.

Amanda Carpe is an associate attorney with Bacon Wilson, where she specializes in estate planning, elder law, and estate/probate administration.

Physical Therapist Helps Parkinson’s Patients See Positive Results

Architecture Environment and Engineering

Business of Aging

Innovative Treatment

Parkinson’s disease is a brain disorder that causes unintended or uncontrollable movements, such as shaking, stiffness, and difficulty with balance and coordination. Symptoms usually begin gradually and worsen over time. As the disease progresses, people may have difficulty walking and talking. They may also have mental and behavioral changes, sleep problems, depression, memory difficulties, and fatigue.

Patients diagnosed with Parkinson’s disease and experiencing interference with their day-to-day movements may greatly benefit from Lee Silverman Voice Therapy – Big, also known as LSVT–Big, said Amanda Martins, a physical therapist at Baystate Wing Hospital. LSVT–Big is a nationally recognized rehabilitation-therapy program that has helped people with Parkinson’s disease improve upon the disease’s impact on their walking, balance, and other activities of daily living, such as writing and dressing.

“People living with Parkinson’s disease or other neurological conditions often move differently, with gestures and actions that become smaller and slower,” Martins said, noting that patients facing neurological illnesses have always been an area of interest for her and the physical therapy team at the hospital.

LSVT has two branches: ‘big’ and ‘loud.’ The treatment protocol is designed for individuals with Parkinson’s disease and other neurological conditions.

“It is designed to involve large and exaggerated movement patterns to move better, increase confidence, and improve safety.”

“Because LSVT–Big treatment is customized to each person’s specific needs and goals, it can help regardless of the stage or severity of your condition,” Martins said. “The treatment is unique and customized to each patient’s goals, targeting gross and fine motor skills.”

These skills include walking, balance, and other activities of daily living, such as writing, getting dressed, and other job-related tasks, she added.

Although the LSVT–Big program was designed for individuals with Parkinson’s disease, it has been shown to be beneficial in the rehabilitation of individuals with other neuromuscular disorders, such as stroke, normal-pressure hydrocephalus, brain injury, and multiple sclerosis.

“The program consists of 16 sessions, four days a week for four weeks, and our patients are given daily homework and carry-over homework,” Martins explained. “It is designed to involve large and exaggerated movement patterns to move better, increase confidence, and improve safety.”

Martins received a bachelor’s degree in exercise science from Westfield State University and earned her doctorate in physical therapy from American International College in Springfield. She sees an array of patients of all ages and abilities, and expresses a passion for sports and stroke rehabilitation, as well as amputee and prosthetic rehabilitation. A former soccer player, she understands the physical, emotional, and rehabilitative aspects of getting the patient back to the highest quality of life — and an athlete back in the game or on the field.

“I have worked with patients who have had strokes, spinal-cord injuries, multiple sclerosis, and Parkinson’s. I have personally found working with this population to be gratifying. It wasn’t until I had the opportunity to shadow the LSVT program and saw its positive results that I decided to take it upon myself to get certified in this special treatment.”

Representatives Must Navigate the Many Ways to Probate an Estate

By Contributor August 31, 2023

Law Special Coverage

Complex Decisions

By Michael Roundy, Esq.

Estate representatives have a variety of options for how to probate an estate. Decisions made early in the process may have long-term consequences, as reflected in a recent decision of the Supreme Judicial Court, In re Estate of Slavin.

The Massachusetts Legislature enacted the Massachusetts version of the Uniform Probate Code (MUPC) in 2008. Under the MUPC, estates may be administered under a ‘formal’ or ‘informal’ process, as ‘supervised’ or ‘unsupervised’ administrations, as a ‘voluntary’ administration, and even by appointment of a ‘special personal representative’ under some circumstances.

Sorting through all of these options may seem daunting — and mistakes made at the initial stage may have lasting impact. In Estate of Slavin, an early decision to file as a voluntary personal representative nearly prevented the voluntary PR from pursuing a wrongful-death claim on behalf of the estate.

An informal probate, under Section 3-301 of the MUPC, is possible where the proposed personal representative has priority for appointment (usually named as PR in the will), and is in possession of the original will. A petition for informal appointment in intestacy (without a will) must also attest that, after a reasonably diligent search, the petitioner is unaware of any unrevoked will or why such an instrument the petitioner is aware of is not being probated. Informal probate is overseen by a magistrate rather than a judge, and hearings are not permitted. The benefit of informal probate is that it can be a faster process than a formal probate.

A formal probate, under Section 3-402 of the MUPC, is typically heard by a judge and may involve one or more hearings. It may be necessary to file a formal probate in order to object to an informal probate if the terms of the will are unclear, if the administration needs to be supervised, if the court needs to appoint a special personal representative, or for other reasons. A formal petition may also be used to obtain a judicial determination of intestacy, and of the heirs, without requesting the appointment of a personal representative.

Michael Roundy

“Sorting through all of these options may seem daunting — and mistakes made at the initial stage may have lasting impact.”

A formal administration may be supervised or unsupervised. A supervised administration is overseen more closely by the court, which typically must approve everything the PR wants to do before he or she does it. A supervised administration may be requested by the PR or by any interested person, and may be requested while a petition to appoint the PR is pending, or after the PR has already been appointed. Where a will directs supervised administration, it will be ordered unless the court finds that the circumstances relating to the need for supervision have changed since execution of the will.

For some estates, it may be necessary to appoint a special personal representative under Section 3-614 of the MUPC for specific purposes, such as searching the decedent’s safe-deposit box for his or her will, or to preserve assets of the estate. A special PR may also be appointed for the purpose of performing an act that a general PR cannot or should not perform due to a potential conflict of interest. While a special PR can have many of the same powers as a permanent PR, the special PR is not able to sell or distribute any assets of the estate.

Small estates may be administered by a voluntary PR. Under Section 3-1201 of the MUPC, a voluntary PR may administer an estate consisting only of personal property (no real estate) that includes a vehicle owned by the decedent and other property valued up to a cap of $25,000. Although voluntary PRs are recognized as such by certification by the register of probate, they are not appointed to the role by a judge or magistrate.

Case in Point

In Estate of Slavin, the decedent’s daughter filed the necessary statement of voluntary administration, which the register of probate certified in accordance with Section 3-1201. The daughter served as the voluntary PR for more than four years before she filed a petition for formal probate, seeking appointment as a personal representative under Section 3-402. She feared, correctly, that, as a voluntary PR, she would be unable to pursue a wrongful-death claim.

Although all five of the decedent’s other children assented to the daughter’s appointment as PR under the formal petition, the Probate and Family Court judge denied the appointment. The judge noted that Section 3-108 of the MUPC prohibits filing a formal petition for appointment more than three years after the decedent’s death. Since the decedent in Estate of Slavin had at that point died more than four years earlier, the judge denied the formal petition.

“The Estate of Slavin case reflects the potentially dramatic impact of an early decision about which method to use for probating an estate.”

The daughter appealed. The Supreme Judicial Court took the case for direct appellate review and reversed the lower court’s decision. The SJC noted that one of the few exceptions in Section 3-108 to the three-year limit on filing for a formal probate appointment is “appointment proceedings relating to an estate in which there has been a prior appointment.” While the Probate and Family Court judge found that a voluntary personal representative is not a ‘prior appointment,’ the SJC disagreed, holding that the exception in Section 3-108 “does not limit the type of prior appointment that qualifies.”

It agreed that, while a personal representative in a formal or informal probate must be appointed by a judge, a voluntary PR does not need to be. However, the voluntary PR statute does permit the register of probate to “issue a certificate of appointment to such voluntary personal representative” (MUPC Section 3-1201).

Moreover, the voluntary PR has the authority to pay debts, receive and sell personal property, pay funeral expenses, and distribute any balance remaining according to the principles of intestate succession. In addition, Section 3-1201 notes, third parties delivering property to the estate are “discharged and released to the same extent as if he dealt with a personal representative of the decedent.” Finally, a voluntary PR is liable for his or her administration of the estate to the same extent as a personal representative who was appointed by the court.

For all of these reasons, the SJC held that a voluntary PR constitutes an ‘appointment’ within the scope of the ‘prior appointment’ exception of Section 3-108. Thus, the daughter could be formally appointed (more than four years after death) as PR and pursue the wrongful-death claim that she could not pursue as a voluntary PR.

The Estate of Slavin case reflects the potentially dramatic impact of an early decision about which method to use for probating an estate. Would-be estate administrators may want to seek assistance from a qualified attorney in navigating such complex decisions.

Michael Roundy is a partner at the Springfield-based law firm Bulkley Richardson.

Keep Supporting Local Farms

By Contributor August 30, 2023

Opinion

By Philip Korman

The widespread flooding that hit our region in mid-July illuminates many truths: the vulnerability of many local farms, the hard reality of climate change, and the amazing response that is possible when the community, nonprofit and foundation partners, and government all step up and work together.

Current estimates are that more than 100 local farms were affected by the floods and that they lost a combined $15 million in crops — but long-term effects are still being counted. The flooding came on the heels of two freezes that damaged peach, blueberry, and apple crops, and was followed by continued heavy rains that deluged even non-flooded fields. As our climate changes, these extreme weather events will become more common.

The response — from the generosity of individual donors to the speed with which our state government has acted — has been stunning. The governor signed a supplemental budget that includes $20 million in disaster relief to cover crop losses. The Emergency Farm Fund at Community Involved in Sustaining Agriculture (CISA) is offering no-interest loans up to $25,000 to affected farms, and a recent disaster declaration will make low-interest federal loans available too.

What is missing is money to cover all the other losses that farms have suffered, including the destruction of property and equipment. The new Massachusetts Farm Resiliency Fund can help fill this gap, and it has set an ambitious fundraising goal of $5 million to quickly get grants to farms.

Farmers are resilient, and they are adapting to their new reality — but they will need continued support and a robust emergency-response system as the climate changes. You can support them, as always, by buying local, and you can help build up the Massachusetts Farm Resiliency Fund now so it’s there in the future. Learn more at buylocalfood.org/helpfloodedfarms.

Philip Korman is executive director of Community Involved in Sustaining Agriculture.

Tighe & Bond Engineers Help Reopen Span in Great Barrington

By Contributor August 18, 2023

Thinking Outside the Bridge

By Daniel Holmes and Andrea Lacasse

The new modular, prefabricated truss bridge rests on the existing abutments and is secured to the reconstructed bridge seat.
Photo by Tighe & Bond

The Town of Great Barrington was faced with a substantial challenge: one of its main bridges, the Division Street bridge, connecting two state routes, had to be shut down due to deterioration and safety concerns. This created a significant detour for local traffic as well as upsetting an important truck route, causing congestion in the downtown area. The town acted quickly to find a solution that would not only be cost-effective and work within an expedited schedule, but would benefit the local communities and all who use the bridge.

The town engaged Tighe & Bond to review the Massachusetts Department of Transportation’s (MassDOT) inspection reports for all town-owned bridges crossing the Housatonic River. It soon became clear that the bridge on Division Street over the Housatonic River needed rehabilitation and potentially a complete structure replacement.

The original, 138-foot, single-span, through-truss bridge was constructed in 1950 and carried two 10-foot traffic lanes with no sidewalks or breakdown lanes. The bridge has always been a popular area for hiking, biking, walking, and fishing, as well as an important truck route connecting Route 7 to Route 41, keeping truck traffic out of downtown Great Barrington. In addition, Division Street is an important artery for local traffic and the agricultural community.

With the potential for the bridge to be closed entirely, Tighe & Bond got to work developing cost estimates for varying levels of rehabilitation and/or complete replacement of the bridge to provide the town with the most cost-effective design solutions for the bridge.

In 2019, a town meeting voted to appropriate funding to replace the bridge. Soon after, Tighe & Bond began data collection and preliminary engineering as well as a bridge-replacement alternatives analysis. However, while the replacement bridge was being designed, the due diligence of a MassDOT special member inspection and subsequent load rating report found that three structural elements were rated at zero capacity, and the bridge was closed immediately. This created a five-mile detour, causing additional congestion for Great Barrington’s downtown area.

With the bridge closed, the town requested Tighe & Bond refocus on emergency repairs to reopen the bridge as quickly as possible. Tighe & Bond and the town reached out to MassDOT to switch gears and begin the design of emergency repairs for the three zero-rated elements to reopen the bridge to local traffic as quickly and safely as possible.

“To avoid a prolonged closure of the Division Street bridge, Tighe & Bond proposed to the town a temporary superstructure replacement, which would allow the critical crossing to reopen until the permanent bridge replacement was installed.”

Through further examination of the inspection and load rating results, MassDOT indicated that the bridge deterioration had advanced to a point where rehabilitation would not be possible, and a complete replacement would be required. MassDOT then informed the town it would be able to get the bridge on the State Transportation Improvement Plan and the state would replace the bridge, but it would effectively delay the reopening of the new bridge for several years until the necessary funds could be allocated, design completed, and construction executed. The estimated reopening date was sometime in 2027.

To avoid a prolonged closure of the Division Street bridge, Tighe & Bond proposed to the town a temporary superstructure replacement, which would allow the critical crossing to reopen until the permanent bridge replacement was installed.

The town reallocated funds from the town-funded bridge replacement into an accelerated reopening of the bridge with a temporary superstructure replacement. Tighe & Bond evaluated the existing abutments for reuse to determine if they were sufficient to continue to support the same load. The team of engineers determined that the existing abutments could support the same load and could be reused for the project.

This aerial view shows the old truss being removed by cranes.
Photo by Tighe & Bond

To accommodate the town’s request of eliminating the previous load restriction while reusing the existing abutments, Tighe & Bond engineers proposed a single-lane modular truss with a cantilevered pedestrian walkway. The single-lane traffic could be controlled with new traffic signals, effectively reopening traffic flow along this important corridor while the town awaited the permanent bridge replacement.

Logistical and Environmental Challenges

With consensus on the design approach, time was of the essence, and the design team put the agreed-upon plan into action immediately. While Tighe & Bond mobilized the design team, the town continued its public outreach effort, keeping the local community informed through Select Board meetings, social-media posts, and press releases. Tighe & Bond participated in several town meetings to provide answers to technical questions and support the town’s effort.

There were a few unique challenges the team had to work around in order to make this project a success. For one thing, the permits would need to consider the potential impacts the superstructure replacement would have on rare and endangered species. The permitting process included a proactive conversation with the Natural Heritage and Endangered Species Program to discuss the potential impacts construction methods could have on three identified endangered species — creeper mussels, brook snaketail dragonflies, and longnose suckers — as well as potential actions that could be taken to minimize impacts.

Tighe & Bond adapted the solution of keeping all construction work out of the limits of the Housatonic riverbank, removing potential impacts to the river habitat below. Although this approach created challenges during construction, it reduced the overall project schedule by one year.

Another design challenge included working around energized overhead power lines encroaching onto the job site. Tighe & Bond coordinated with National Grid to relocate the power lines to provide contractors with space to execute their demolition and erection plans while adhering to OSHA guidelines, providing at least 10 feet of clearance.

“They were able to quickly pivot design plans to meet the needs of our community in a way that allowed us to ensure safe traffic flow, save the town money, and not disrupt habitats around the Housatonic River.”

Once the design phase was complete, the demolition and construction of the replacement bridge required all hands on deck in order to reopen the bridge before the winter of 2022. Every member of the project team was integral to the success of this project. This included the town of Great Barrington, Tighe & Bond (engineer of record), and Rifenburg Contracting Corp. (contractor), along with subcontractors Seifert Associates (construction engineer), Atlantic Coast Dismantling (demolition), Acrow (truss manufacturer), and Lapinski Electric (traffic signal).

Innovative demolition techniques were put into action to avoid work within the riverbank and the energized power lines encroaching on the job site. Using cranes on either approach, Seifert worked with Atlantic Dismantling to split the truss into two pieces using thermal lancing rods, then lifting the two halves and swinging them to a temporary location outside the riverbank for disassembly before being trucked off-site. This method resulted in the removal of the bridge without impacting the endangered species’ habitats in any way.

With the existing bridge removed, it was time to install the new modular, prefabricated truss bridge. Reuse of the existing abutments not only reduced cost and time, but also kept to the team’s commitment to protect the local endangered-species habitat. The abutments were modified to receive the new truss.

The new modular bridge was then constructed on the east side of the project area and ‘launched’ toward the west abutment as it was counterweighted to allow the bridge to extend approximately halfway across the span. Once safely at rest, the crane positioned behind the west abutment connected to the end of the bridge and lifted it while an excavator on the east aided in the remaining launch by pushing the bridge the remainder of the span, where it finally rested on both abutments and was secured to the reconstructed bridge seat.

With substantial efforts by all parties, the construction project was completed on time and on budget with no change orders issued.

Future Opportunities

The collaborative partnership between the project team resulted in Division Street being open to traffic once again. In addition, the new modular, prefabricated truss bridge will remain a resource to Great Barrington going forward. Not only can the town use the new truss bridge for Division Street, once the bridge is permanently replaced by MassDOT, the town can either sell the truss bridge to help fund future projects or reuse the bridge for any future needs that may arise, saving time and money.

“Tighe & Bond and the entire team did a great job with this project. They were able to quickly pivot design plans to meet the needs of our community in a way that allowed us to ensure safe traffic flow, save the town money, and not disrupt habitats around the Housatonic River,” Great Barrington Town Manager Mark Pruhenski said. “We look forward to driving over the bridge every day.”

Daniel Holmes is a senior project manager, and Andrea Lacasse is a structural engineer, at Tighe & Bond. Contributing to this article are Emily White, proposal and content management specialist, and Regina Sibilia, marketing and communications specialist.

Tight Labor Conditions See Construction Workers Return to Work

By Contributor August 18, 2023

Construction

Back on the Job

The construction industry added 19,000 jobs in July even as the sector’s unemployment rate increased, according to an analysis of new government data by Associated General Contractors of America. Officials with the association noted that tight labor conditions are bringing more previously employed construction workers back into the job market as firms continue to boost pay levels.

“The construction industry continues to add workers at a steady clip as demand for many types of construction remains strong,” said Stephen Sandherr, the association’s CEO. “Firms are boosting pay to cope with tight labor-market conditions, which is bringing more former workers back into the job market.”

Construction employment in July totaled 7,971,000, seasonally adjusted, an addition of 19,000 compared to June. The sector has added 198,000 jobs, or 2.5%, during the past 12 months. Non-residential construction firms — non-residential building and specialty trade contractors along with heavy and civil-engineering construction firms — added 10,600 employees (3.1%) in July. Meanwhile, employment at residential building and specialty trade contractors grew by 7,800 (1.8%).

The unemployment rate among job seekers with construction experience rose from 3.5% in July 2022 to a still-low 3.9%. A separate government release reported there were 378,000 openings at construction firms on the last day of June, close to the record high for June set in 2022, indicating that demand for workers remains strong.

Average hourly earnings for production and non-supervisory employees in construction — covering most on-site craft workers as well as many office workers — jumped by 5.8% over the year to $34.24 per hour. Construction firms in July provided a wage ‘premium’ of just over 18% compared to the average hourly earnings for all private-sector production employees.

“The good news is that there remain private construction segments associated with rosier prospects, including manufacturing, data centers, and healthcare.”

Officials at Associated General Contractors of America noted that labor shortages in construction threaten to undermine new federal investments in infrastructure, semiconductor chip plants, and green-energy construction. They urged federal officials to boost funding for construction education and training programs, noting that the federal government currently spends five times as much encouraging students to go to college as it does on career and technical education programs.

“Unless federal officials begin to narrow the funding gap between college prep and career training, the construction industry will continue to struggle to find workers,” Sandherr said. “It is great that federal officials want to invest in construction projects; they also need to invest in construction workforce development.”

The report followed an Associated Builders and Contractors (ABC) analysis of data published by the U.S. Census Bureau noting that national non-residential construction spending increased 0.1% in June. Spending is up 18% over the past 12 months. On a seasonally adjusted annualized basis, non-residential spending totaled $1.07 trillion in June.

Spending increased on a monthly basis in 12 of the 16 non-residential subcategories. Private non-residential spending was virtually unchanged, while public non-residential construction spending rose 0.3% in June.

“Non-residential construction spending growth downshifted over the past two months,” ABC Chief Economist Anirban Basu said. “While stakeholders can expect ongoing spending growth in public non-residential construction segments as more Infrastructure Investment and Jobs Act monies flow into the economy, private, developer-driven activity appears to be drying up in the context of higher costs of capital and tighter credit conditions.

“Among other things, these dynamics will translate into larger spreads in performance among contractors,” Basu added. “While those that focus on public work stand to remain busy for years to come, those who specialize in meeting the needs of developers of office buildings, hotels, and shopping centers are likely to struggle to support backlog going forward. The good news is that there remain private construction segments associated with rosier prospects, including manufacturing, data centers, and healthcare.”

After the Credit Downgrade

By Contributor August 16, 2023

Opinion

By Jeff Liguori

Is Washington, D.C. broken?

The global rating agency, Fitch, certainly believes so. On Aug. 1, the company downgraded the credit of the United States one notch, from AAA to AA+. It is only the second time in history that our nation’s credit has been downgraded, the first in August 2011 by S&P. In its explanation, Fitch stated that the downgrade “reflects the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to AA- and AAA-rated peers over the last two decades that has manifested in repeated debt-limit standoffs and last-minute resolutions.”

The move came as a surprise despite the agency hinting in May that the inability of Congress to effectively deal with the debt ceiling could lead to a downgrade. Once legislation was passed to raise the U.S. government debt limit, Fitch Ratings said the United States’ AAA credit rating would remain on negative watch. President Biden, Treasury Secretary Janet Yellen, and others in the administration have criticized the move as bizarre and arbitrary, careful to point out that the timing made no sense given the bipartisan effort to avoid a default in June.

The reaction by financial markets was somewhat mild considering the nearly unprecedented — and alarming — nature of the downgrade by Fitch. Bond prices went lower as yields continued higher, and the S&P 500 sold off about 1.3% — overall, a negative response. But 2023 has been a healthy year for investors thus far, with stocks up nearly 20% prior to the Fitch downgrade and a bond market about flat on the year, a stark contrast to 2022, when both markets were down double digits, an historical anomaly. So, what is the impact of a AA+ versus AAA rating for our government’s debt?

When S&P downgraded the U.S. government debt rating in 2011, global stock markets plunged and bonds rallied, driving interest rates lower. Typically, a downgrade in credit equates to higher — not lower — interest rates. But the uncertainty surrounding that downgrade pushed investors into safe-haven assets, namely U.S. treasuries, which illustrates that the move by S&P had no real implications for buyers of U.S. debt. It was a slap on the wrist, a consequence of massive accommodative fiscal measures intended to shore up a weak economy as the nation emerged from the greatest financial crisis since the Great Depression.

The rating agency was signaling that the U.S. had to get its fiscal house in order and Congress needed to come together to address the burgeoning debt. Like today, S&P had signaled to the Obama administration and U.S. Treasury that there was a risk of a downgrade about a month prior to the move. Stock markets lost roughly 10% of their value in the 30 days preceding the downgrade.

Fitch’s recent actions are consistent with its close competitor, S&P, in 2011. The U.S. debt, as a percent of gross domestic product (GDP), rose from 65% at the end of 2007 to 92% prior to the downgrade then. Before COVID locked down the economy, debt to GDP was just above 100%, ballooning to 135% by the middle of 2020. Currently, our debt is running at nearly 120% of GDP. And as interest rates rise, the situation worsens. (Growth in GDP can ameliorate this ratio, but the economy is not keeping pace with inflation presently.)

Similarities from the first downgrade to today are limited. Yes, the nation was emerging from crisis in 2011, the economy was flooded with stimulus spending, and Washington, D.C. was also unable to address our long-term fiscal issues. But the similarities end there.

Economically, global bond yields were falling prior to the downgrade in 2011, and central banks were still easing, dealing with the aftermath of the Great Recession. The unemployment rate was around 9%, high from a historical standpoint, but trending lower as the number of job openings were on the upswing. Debt to GDP was still under 100%, with most economists optimistic that further economic growth would remedy that dynamic. U.S. household debt had decreased about 8% and was also trending lower. The interest rate on a 30-year mortgage was about 4.5% and, again, trending lower.

Today, central bankers continue to fight persistent inflation, aggressively raising interest rates and tightening monetary conditions. The job picture remains sanguine, with the unemployment rate at 3.5%. Job openings, however, are now on the decline after sharply increasing from COVID lows. Household debt is on the rise, with total credit-card debt projected to hit $1 trillion for the first time ever. And housing affordability is at its worst level since the late 1980, according to the National Assoc. of Realtors, as the rate on a 30-year mortgage bumps up against 7%, an increase of 114% since the beginning of 2022.

There may be no economic adjustment to the rating downgrade by financial markets. Stocks have been incredibly resilient this year. The message by the Fitch agency is more about the United States having the willingness to pass legislation to deal with our debt burden, and less about the ability to pay our borrowers.

It is not an issue solely for the U.S.; after the Federal Reserve and U.S. government accounts, the largest holders of our debt are Japan, China, and the UK (in that order). The snowball effect of a default would be catastrophic. Almost every analyst and economist voicing an opinion on the downgrade, however, knows that an actual default is such a remote possibility for the largest economy in the world that it isn’t worth mentioning. And there’s no new information that brought on the downgrade.

It is a warning, nonetheless, and emblematic of our long-term political issues, which continue to hamper constructive fiscal progress.

Jeff Liguori is the co-founder and chief Investment officer of Napatree Capital, an investment boutique with offices in Longmeadow as well as Providence and Westerly, R.I.; (401) 437-4730.

What Does the United States’ Credit Downgrade Mean?

By Contributor August 10, 2023

Daily News

Analysis by Jeff Liguori

Is Washington, D.C. broken?

It is a warning, nonetheless, and emblematic of our long-term political issues, which continue to hamper constructive fiscal progress.

Jeff Liguori is the co-founder and chief Investment officer of Napatree Capital, an investment boutique with offices in Longmeadow as well as Providence and Westerly, R.I.

Data: The Driving Force of Innovation

By Contributor August 7, 2023

Thought Leadership

Let’s Not Fight over This Stuff

Distributing Tangible Personal Property Can Cause Conflict

By Hyman G. Darling, Esq.

Very often in preparing an estate plan, issues arise over the tangible personal property, also known as ‘the stuff.’ This may include cars, collectibles, the dining-room furniture, Waterford china, and basically any other item in a house that is not attached to the walls. These tangible personal property items are often dealt with separately from other assets, such as stocks, bonds, real estate, cash, etc.

Unfortunately, when the client has not provided enough detail in listing the distribution of assets, the tangible property becomes a major issue. Arguments may ensue, and often, the family brings the case to litigation to argue about all these items. In some cases, the family has significant assets to be distributed, but these tangible items become contentious and cause the estate to be litigated and prolonged.

Hyman G. Darling

“Arguments may ensue, and often, the family brings the case to litigation to argue about all these items.”

There are several ways in which this matter may be resolved, but the clients need to take the time to prepare properly for the distribution. The first way would be to have a complete listing of the items that may have either sentimental value or material value. The client can either list these items in the will, in which case they may have to be probated, or in other cases, the client can sign a memorandum.

The memorandum is fairly new in Massachusetts, as determined in the Uniform Probate Code, which was enacted in 2013. A client may now make a listing of assets and the individuals to receive the assets, which may be memorialized in writing and signed by the client, and then merely referred to in the will. In this manner, if the client desires to change the memorandum, they may merely write up a new memorandum and have it signed and dated and placed with the will, as opposed to having the entire will rewritten.

It is very important in this memorandum to be clear about what items are listed. For example, a mention of a ring or a watch may not be clear enough; perhaps the ring should be listed as the engagement ring with two small diamonds, and the watch could be listed as the Timex watch with rhinestones.

If there are items that are to be identified more clearly, they also should be listed, so that a painting or picture should state the setting or picture, as well as where it may have been hanging in the house, such as in the den above the piano.

Some clients have made lists and put stickers on the back of items or underneath them with identifying colors such as a yellow sticker for daughter Susie, a white sticker for son John, and green stickers for all the grandchildren. This is acceptable so long as the stickers are still on the items at the time of the client’s death and if someone doesn’t get to the items and move the stickers to different items.

In cases where the client was not clear, there are several alternatives to litigation. The first would be to have all parties make a list of the items that are important to them and then allocate an item to each person from their lists, taking turns between the beneficiaries. In some cases, clients have had to draw straws in determining who makes the first selection. Once they are finished choosing all of the items, they can then do their own ‘horse trading’ between themselves, but at least some of the beneficiaries will receive some of the items they want.

If this does not work, it may be necessary to gather the lists of the desired items by the family and engage the services of a mediator to attempt to resolve the differences. The problem then becomes whether the items are more valuable in terms of material value or sentimental value. If the sentimental value isn’t as great as the material value, then a client might decide to choose a larger, more valuable item and hope to trade it later for the more sentimental item.

If the resolution is not able to be made voluntarily, then an inventory of all items will have to be filed with the court, and perhaps an appraiser or two will have to be hired by the estate to value all the items. Some items without much value may be included in a ‘lot,’ which will be valued as a commingling of these items and valued as such.

Once these are all valued and listed on the inventory, one party might have to petition the probate court to determine the proposed distribution of these items, which is unfortunate, as they will be utilizing valuable court time merely to divide the tangible items. The court has the discretion to appoint a master, who will be an experienced lawyer, to hold the hearing at the expense of the estate, and then each party will also be paying their own lawyer to argue over who will receive what items.

In many cases, when this matter is over and resolved, none of the parties are pleased with the result, which means it was probably a fair and equitable decision.

Very often, clients are convinced that the children will have no problem distributing the assets and dividing the items; the client will merely state that nobody will want anything, as they have their own items. This is not always the situation; when a person passes away, not only do the children have a say in what will be distributed, but their spouses may wish to intervene and strongly suggest what their spouse should take. It is usually helpful to keep these in-laws (often called out-laws) out of the decision-making process, as this only causes more people to be involved and greater dissent between the parties.

When completing your own estate plan, consider the potential use of the memorandum with specific detail for the items you wish to distributed. Be careful in considering and discussing these issues with the children since, if you ask them all what they want and they all state that they want the same items, you will then be faced with the decision of having to tell some of them they will not be getting certain items. This can easily cause conflict, and family dinners and holiday occasions may prove to be less than pleasant.

Hyman G. Darling is a shareholder and the head of the probate/estates team at Bacon Wilson; (413) 781-0560; [email protected]

Having the Talk

Ten Tips on How to Approach a Difficult Topic

By the AARP Foundation

The reality is that some conversations are just plain difficult — even with the people to whom you feel the closest. When preparing to discuss a difficult topic like senior care needs, it helps to follow the ground rules below to ensure that everyone’s feelings are respected and viewpoints are heard. To help make the conversation as productive and positive as possible:

1. Try not to approach the conversation with preconceived ideas about what your loved ones might say or how they might react. “Dad, I just wanted to have a talk about what you want. Let’s just start with what is important to you.”

2. Approach the conversation with an attitude of listening, not telling. “Dad, have you thought about what you want to do if you needed more help?” — as opposed to “we really need to talk about a plan if you get sick.”

3. Make references to yourself and your own thoughts about what you want for the future. Let them know they are not alone, that everyone will have to make these decisions. “Look, I know this isn’t fun to think about or talk about, but I really want to know what’s important to you. I’m going to do the same thing for myself.”

4. Be very straightforward with the facts. Do not hide negative information, but also be sure to acknowledge and build on family strengths. “As time goes on, it might be difficult to stay in this house because of all the stairs, but you have other options. Let’s talk about what those might be.”

5. Phrase your concerns as questions, letting your loved ones draw conclusions and make the choices. “Mom, do you think you might want a hand with some of the housekeeping or shopping?”

6. Give your loved ones room to get angry or upset, but address these feelings calmly. “I understand all this is really hard to talk about. It is upsetting for me, too. But it’s important for all of us to discuss.”

7. Leave the conversation open. It’s OK to continue the conversation at another time. “Dad, it’s OK if we talk about this more later. I just wanted you to start thinking about how you would handle some of these things.”

8. Make sure everyone is heard — especially those family members who might be afraid to tell you what they think. “Susan, I know this is really hard for you. What do you think about what we are suggesting?”

9. End the conversation on a positive note. “This is a hard conversation for both of us, but I really appreciate you having it.”

10. Plan something relaxing or fun after the conversation to remind everyone why you enjoy being a family. Go out to dinner, attend services together, or watch a favorite TV program.

These are just a few suggestions of things you, your loved ones, and other family members can do to unwind after a difficult conversation.

Savvy Seniors Freeze It

Nutrition-minded Older Adults Should Heed These Tips

By Kimberly DaSilva with Carrie Taylor and Andrea Luttrell

Your nutritional needs change throughout your lifetime. Some physical changes may impact appetite, senses, and fluctuations in your digestive system. These changes may be due to aging, decreased physical activity, or in conjunction with prescriptive medication suppressing your appetite.

Having a decreased appetite may impact your intake of calories, essential vitamins, minerals, and proteins needed to maintain muscle mass and prevent unintentional weight loss. When it comes to appetite, decreased senses of smell and taste can also affect the enjoyment of your food’s flavor and aroma. For digestion, your gastrointestinal tract could become less mobile and more rigid — leading to issues including constipation, stomach pain, and nausea.

“Produce that freezes well includes tomatoes, corn, carrots, peppers, zucchini, and berries. High-water-content foods such as melons, cucumbers, lettuce, and eggplant should stay clear of the freezer.”

To overcome any decrease in taste and smell, get creative. Cook with spices; herbs; aromatic vegetables like celery, onion, garlic, and shallots; and savory sauces to engage your taste buds. Select higher-quality food; cook seasonal fruits and vegetables so they have a softer mouth feel in recipes like soups, stews, and casseroles; drink plenty of water; and reduce stomach irritants, such as alcohol, to overcome physical changes as well.

As you age, your nutrition may be affected by your social and financial situation versus physical. For example, your social circle may become smaller due to the loss of a spouse, family members, and friends. Living alone and cooking for one while eating on a fixed income can present challenges for some as well.

Not all is lost! Below are some tips when cooking for one on a budget.

Six Nutritional Tips for Older Adults

Older adults have unique nutritional needs.

Simple adjustments can go a long way toward building a healthier eating pattern. Follow these tips from the National Institute on Aging to get the most out of foods and beverages while meeting your nutrient needs and reducing the risk of disease.

• Enjoy a variety of foods from each food group to help reduce the risk of developing diseases such as high blood pressure, diabetes, and heart disease. Choose foods with little to no added sugar, saturated fats, and sodium.

• To get enough protein throughout the day and maintain muscle, try adding seafood, dairy, or fortified soy products, along with beans, peas, and lentils, to your meals.

• Add sliced or chopped fruits and vegetables to meals and snacks. Look for pre-cut varieties if slicing and chopping are a challenge for you.

• Try foods fortified with vitamin B12, such as some cereals, or talk to your doctor about taking a B12 supplement.

• Reduce sodium intake by seasoning foods with herbs and citrus such as lemon juice.

• Drink plenty of water throughout the day to help stay hydrated and aid in the digestion of food and absorption of nutrients. Avoid sugary drinks.

Tip 1: Be a savvy shopper. Get the most out of your food budget and purchase meats and shelf-stable foods when they are on sale. And stock up on fruits and vegetables when they are in season.

Tip 2: Be an organized shopper. Plan meals in advance and create a shopping list from your menu. Buy store brands for the same quality items at a lower cost.

Tip 3: Freeze your meals. When cooking for one, a great option is to cook and freeze meals. To do this, make multiple servings versus just one. Divide quantities into individually sized portions and freeze for future ready-made meals. Planning portions also prevents waste and can save you money.

Freezing Inspiration

With cooler weather around the corner, plan for hearty soups, stocks, and quick casseroles. For example, take advantage of less-expensive seasonal fruits and vegetables and preserve their fresh-picked flavor by freezing them.

Why freeze? Freezing temperatures stop the growth of microorganisms while slowing the chemical reactions that break down food and reduce its quality. This makes freezing food perfect for enjoying the taste of summer for seasons to come!

Produce that freezes well includes tomatoes, corn, carrots, peppers, zucchini, and berries. High-water-content foods such as melons, cucumbers, lettuce, and eggplant should stay clear of the freezer. Avoid discoloration of fruits such as peaches, apples, pears, and apricots by tossing with lemon juice prior to freezing.

For the best flavor and texture, use ripe, non-bruised produce free of nicks. Most raw fruit freeze just fine without blanching.

Tips for Freezing

• Rinse and cut produce into the desired size.

• Blanch vegetables before freezing. Drop vegetables in boiling water for one to two minutes, then immediately transfer to an ice bath and chill completely to help stop the cooking process. Drain and pat dry.

• Place fruit or vegetables in a single layer on a sheet pan lined with wax or parchment paper. Place in the freezer until the produce is frozen solid.

• Once frozen, pack into whichever freezer-safe container you prefer — a freezer-safe food-storage bag, a plastic container with an airtight lid, plastic wrap, or aluminum foil. Avoid glass, as it can shatter and cause your food to become unsafe to eat.

• Leave only a half-inch to one-inch space at the top of containers. Reducing food’s contact with air will prevent ‘off’ flavors or freezer burn.

• Store sauces and soups in freezer-safe food-storage bags and lay flat on shelves to save space.

Tips for Storage

• Practice food safety when cooling leftovers. Cool to room temperature for no more than two hours, or one hour for hot summer conditions above 90 degrees Fahrenheit, to avoid the risk of a foodborne illness. Putting hot food directly into the freezer creates condensation on the food, which can lead to freezer burn while possibly raising the temperature of the refrigerator. Although freezer-burned food may have off flavors, it will not cause you harm.

• Label foods with prepared, frozen, and use-by dates. Soups and stews with meat can be frozen for up to two to three months. Leftover meals can be frozen for two to six months, and fruits and vegetables can be frozen for up to one year.

Tips for Thawing

• Determine the quality of food after thawing. First, check odor, as some foods will develop a rancid or off odor when frozen too long. Discard such items. (Note: although some items may not look picture-perfect when frozen, they work exceptionally well in soups, stews, casseroles, and sauces.)

• Never defrost foods at room temperature. Use these three safe ways to defrost food: in a refrigerator running at 40 degrees Fahrenheit or lower, in the microwave, or under cold running water. (Note: for foods thawed in the microwave or by running cold water, cook immediately after thawing.)

Tips for Use

• Enjoy frozen fruit as is, without cooking, for smoothies, flavoring plain yogurt, adding to sautés, and baking recipes.

• Vegetables can be cooked while still frozen and/or after thawing.

• Raw meat and casseroles can be cooked, or reheated, from the frozen state.

• Always reheat and/or cook foods to their recommended internal temperature, as verified with an instant-read food thermometer.

As you can see, any challenges that impact nutrition as you age can be minimized by incorporating a few new practices into your normal routine. Preserving nutrients and flavor of seasonal produce and your favorite recipes by freezing is a great way to control your food budget as well. Happy freezing!

Kimberly DaSilva is dietetic intern with Be Well Solutions. Carrie Taylor, RDN, LDN, RYT and Andrea Luttrell, RDN, LDN are registered dietitians with Big Y.

The Emotional Bank Account

How Seniors Can Maintain Mental Wellness

By Behavioral Health Network

How can people continue to support their mental health and find ways to engage in life as they age? Leona LaFleur, a behavioral-health clinician and mental-health consultant for elder services at Behavioral Health Network, has been finding those answers through the people she works with.

Their wealth of life experience is key, she says. “I am constantly learning from my clients. They have a good degree of resilience, and so I try to help them identify what their strengths are.”

Leona LaFleur

“A lot of people have this idea that we have to make huge changes in order to feel some success, and that’s not really necessary. We can experience success from small changes.”

According to LaFleur, there are four pillars of mental wellness for seniors: sleep, nutrition, exercise, and social connection. The latter of these is of the utmost importance, as recently referenced in an advisory by the U.S. surgeon general.

As we get older and our bodies age, maintaining a sense of control can be difficult, and choosing the people you allow to be in your life and influence you helps maintain that sense of control. Not only that, but the COVID-19 pandemic and forced isolation was tough on many people’s connections, and many are still reeling from those impacts today.

LaFleur advises seniors and their loved ones to assess how well these pillars are being addressed and where they might need to make a change. It is important to normalize what they are going through, recognize where they may be stuck, and then identify what small things can be done to make progress.

“A lot of people have this idea that we have to make huge changes in order to feel some success, and that’s not really necessary,” she said. “We can experience success from small changes.”

For example, if there is a need for more physical activity, she might recommend connecting with a friend who does yoga. Sometimes the change is as simple as getting out of bed, which can be difficult for some seniors due to their physical limitations. It is important to note that, in many cases, the elderly are not disconnected in life because they are depressed, necessarily, but because it is physically difficult for them to actively engage in their life.

Breaking things down into small components helps with anxiety and decision fatigue as well. Because of the abundance of information in the world today, people can be easily overwhelmed. Simplifying things is important to identify where the challenges are and where improvement can happen. LaFleur notes that “I try to break things down and recognize the individual, and try to get them to identify what they need.”

She also recommends considering mental healthcare like an ‘emotional bank account.’ Determine what actions can you take — whether relaxing, socializing, or otherwise — to put ‘money’ in the bank and increase your reserves for managing stress. With more reserves in your emotional bank account, you are better able to manage difficult situations that you encounter.

Deposits are different for each person and situation. For example, social actions are not always a deposit; time spent with family can come with difficult history and thus can increase stress. It is important to give yourself credit for the things you do, especially the little things, because they all contribute to your self-worth and overall well-being.

A Whole Year of Fun

Older Adults Have Plenty of Ways to Stay Physically Active

By the National Institute on Aging

There are lots of fun and simple ways to build exercise into your daily routine. It’s easy to come up with ideas for activities to do with your family and ways to stay active in all four seasons.

Spending Time with the Family

Being physically active with your family is a great way to stay healthy and make exercise fun. Whether you play team sports with the entire family or take brisk walks with your spouse, child, or grandchild, you’ll be rewarded with improved health and time spent together. Here are a few activity ideas for you to do with your grandchildren:

Infants and toddlers:

• Take them for walks in the stroller and rides on your bike. Don’t forget your helmets.

• Play games that get your bodies moving, like wheels on the bus, pretend we’re animals, and hide and seek.

• Sign up for baby yoga or exercise classes.

• Try baby-friendly swimming classes.

School-aged children:

• Walk to the park and push their swing.

• Jump rope together.

• Build a fort — indoors or out.

• Play catch, kickball, basketball, or soccer.

• Go swimming or biking together.

• Play a video fitness game together and see who wins.

Teens and young adults:

• Participate in activities that interest them. Try hiking, skating, or tennis.

• Go golfing or swimming. Invite them to join you in physical activities that require two people, such as tennis or ping pong.

• Ask them to help you in the garden or with heavy-duty household chores.

Be Physically Active Without Spending a Dime

You don’t need to spend a fortune to be physically active. In fact, you can be active in many ways without spending any money. You don’t need special exercise equipment other than comfortable walking shoes. Here are a few ideas to help get you moving for free:

• Make your own weights from household items such as soup cans or bottles of water.

• Try out free demonstration exercises classes at your local senior center or fitness center.

• Go for a hike in a park.

• Participate in community-sponsored fun runs or walks.

• Yard work such as raking, digging, and planting can keep you active.

• Make sure to drink water or juice after exercise.

Find Ways to Stay Active in All Four Seasons

Being creative about your physical activity plans and trying new forms of exercise can keep you motivated by preventing boredom. A change in seasons is an excellent time to be creative about your exercise routine and try something new. There are many ways to be active throughout the year.

Winter:

• When your grandchildren visit, head outside to build a snowman together or go ice skating.

• Cold outdoor temperatures are an excellent reason to join a mall-walking group.

• Start the new year by trying out a fitness center — many offer New Year’s resolution specials.

• Give your heart a Valentine’s Day gift with dance lessons, such as salsa, tango, or belly dancing.

Spring:

• As the temperatures start to get warm, get your garden ready for spring and summer. The lifting and bending you do when gardening are great for strength and flexibility.

• A bike ride is a great way to enjoy the warmer temperatures.

• Anything can be fun with upbeat music, including spring cleaning.

• Build your endurance and strength with a bike ride during National Bike Month (May). Remember your helmet.

Summer:

• Swim laps or take a water-aerobics class. These are both refreshing once the weather gets steamy.

• Walking in the mall is a cool way to beat the heat.

• Now that the grandchildren are out of school for the summer, ask them to teach you their favorite sport or physical activity.

• Celebrate National Bowling Week the first week in August. Get friends and family together and challenge each other to a friendly tournament.

Fall:

• If you’ve heard about the benefits of yoga but haven’t tried it yet, National Yoga Awareness Month (September) is a great time to find special events and trial classes for beginners.

• As the weather begins to cool, join an indoor sports league, such as basketball, handball, or bowling.

• Fall provides great opportunities for physical activity. You can take long walks to see the beautiful fall colors. Once the leaves have fallen, raking is good exercise.

• If you have holiday shopping to do, walk the entire mall each time you’re there.

Estate Planning: An Introduction

Goals, Strategies Can Vary with Each Stage of Life

By UMassFive Financial & Investment Services

By definition, estate planning is a process designed to help you manage and preserve your assets while you are alive, and to conserve and control their distribution after your death, according to your goals and objectives. But what estate planning means to you specifically depends on who you are. Your age, health, wealth, lifestyle, life stage, goals, and many other factors determine your particular estate-planning needs.

“Your age, health, wealth, lifestyle, life stage, goals, and many other factors determine your particular estate-planning needs.”

For example, you may have a small estate and may be concerned only that certain people receive particular things. A simple will is probably all you’ll need. Or you may have a large estate, and minimizing any potential estate-tax impact is your foremost goal. Here, you’ll need to use more sophisticated techniques in your estate plan, such as a trust.

To help you understand what estate planning means to you, the following sections address some estate-planning needs that are common among some very broad groups of individuals. Think of these suggestions as simply a point in the right direction, and then seek professional advice to implement the right plan for you.

Over 18

Since incapacity can strike anyone at any time, all adults over 18 should consider having:

• A durable power of attorney: This document lets you name someone to manage your property for you in case you become incapacitated and cannot do so; and

• An advance medical directive: The three main types of advance medical directives are a living will, a durable power of attorney for healthcare (also known as a healthcare proxy), and a do-not-resuscitate order. Be aware that not all states allow each kind of medical directive, so make sure you execute one that will be effective for you.

Young and Single

If you’re young and single, you may not need much estate planning. But if you have some material possessions, you should at least write a will. If you don’t, the wealth you leave behind if you die will likely go to your parents, and that might not be what you want. A will lets you leave your possessions to anyone you choose (e.g., your significant other, siblings, other relatives, or favorite charity).

Unmarried Couples

You’ve committed to a life partner but aren’t legally married. For you, a will is essential if you want your property to pass to your partner at your death. Without a will, state law directs that only your closest relatives will inherit your property, and your partner may get nothing. If you share certain property, such as a house or car, you may consider owning the property as joint tenants with rights of survivorship. That way, when one of you dies, the jointly held property will pass to the surviving partner automatically.

Married Couples

For many years, married couples had to do careful estate planning, such as the creation of a credit shelter trust, in order to take advantage of their combined federal estate-tax exclusions. For decedents dying in 2011 and later years, the executor of a deceased spouse’s estate can transfer any unused estate-tax exclusion amount to the surviving spouse without such planning.

You may be inclined to rely on these portability rules for estate-tax avoidance, using outright bequests to your spouse instead of traditional trust planning. However, portability should not be relied upon solely for utilization of the first to die’s estate-tax exclusion, and a credit-shelter trust created at the first spouse’s death may still be advantageous for several reasons:

• Portability may be lost if the surviving spouse remarries and is later widowed again;

• The trust can protect any appreciation of assets from estate tax at the second spouse’s death;

• The trust can provide protection of assets from the reach of the surviving spouse’s creditors; and

• Portability does not apply to the generation-skipping transfer (GST) tax, so the trust may be needed to fully leverage the GST exemptions of both spouses.

Married couples where one spouse is not a U.S. citizen have special planning concerns. The marital deduction is not allowed if the recipient spouse is a non-citizen spouse (but a $164,000 annual exclusion for 2022 is allowed). If certain requirements are met, however, a transfer to a qualified domestic trust will qualify for the marital deduction.

Married with Children

If you’re married and have children, you and your spouse should each have your own will. For you, wills are vital because you can name a guardian for your minor children in case both of you die simultaneously. If you fail to name a guardian in your will, a court may appoint someone you might not have chosen. Furthermore, without a will, some states dictate that, at your death, some of your property goes to your children and not to your spouse. If minor children inherit directly, the surviving parent will need court permission to manage the money for them.

You may also want to consult an attorney about establishing a trust to manage your children’s assets in the event that both you and your spouse die at the same time.

You may also need life insurance. Your surviving spouse may not be able to support the family on his or her own and may need to replace your earnings to maintain the family.

Comfortable and Looking Forward to Retirement

If you’re in your 30s, you may be feeling comfortable. You’ve accumulated some wealth, and you’re thinking about retirement. Here’s where estate planning overlaps with retirement planning. It’s just as important to plan to care for yourself during your retirement as it is to plan to provide for your beneficiaries after your death.

You should keep in mind that, even though Social Security may be around when you retire, those benefits alone may not provide enough income for your retirement years. Consider saving some of your accumulated wealth using other retirement and deferred vehicles, such as an individual retirement account.

Wealthy and Worried

Depending on the size of your estate, you may need to be concerned about estate taxes. For 2022, $12,060,000 is effectively excluded from the federal gift and estate tax. Estates over that amount may be subject to the tax at a top rate of 40%.

Similarly, there is another tax, called the generation-skipping transfer (GST) tax, that is imposed on transfers of wealth made to grandchildren (and lower generations). For 2022, the GST tax exemption is also $12,060,000, and the top tax rate is 40%.

The Tax Cuts and Jobs Act, signed into law in December 2017, doubled the gift- and estate-tax basic exclusion amount and the GST tax exemption to $11,180,000 in 2018. After 2025, they are scheduled to revert to their pre-2018 levels and cut by about one-half.

Whether your estate will be subject to state death taxes depends on the size of your estate and the tax laws in effect in the state in which you are domiciled.

Elderly or Ill

If you’re elderly or ill, you’ll want to write a will or update your existing one, consider a revocable living trust, and make sure you have a durable power of attorney and a healthcare directive. Talk with your family about your wishes, and make sure they have copies of your important papers or know where to locate them.

Help with Estate Planning

Looking for guidance for getting started with estate planning, or maybe you just need a second opinion? The CFS fnancial advisors at UMassFive Federal Credit Union are well-versed in this type of planning and can work in conjunction with your estate-planning attorney. Visit [email protected] for more information.

Non-deposit investment products and services are offered through CUSO Financial Services, LP (CFS), a registered broker-dealer (member FINRA/SIPC) and SEC registered investment advisor. Products offered through CFS are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk, including possible loss of principal. Investment representatives are registered through CFS. UMassFive has contracted with CFS to make non-deposit investment products and services available to credit-union members. CFS does not provide tax or legal advice. For such guidance, consult your tax or legal professional.

Creating an Estate Plan

The Process Begins by Understanding the Key Documents

By Stephen Sobey, Esq.

In the back of your mind is a list that, particularly in quiet moments, likes to assert itself. It’s the list of the things you know you should do but haven’t. Items may include scheduling an oil change, finding a primary care physician, cleaning out your refrigerator…and creating an estate plan.

Stephen Sobey

“You need to consider who you trust and, among those individuals, who has the right skill set and disposition to serve as personal representative of your estate or as the guardian of your children.”

One day, hopefully soon, you resolve to check off this last, very important item. What do you need to know? Although an estate-planning attorney can guide you through this process, it is to your benefit to have a basic understanding of the core documents that make up an estate plan and have already considered certain key questions.

The documents generally considered to form the core of any estate plan are the last will and testament, durable power of attorney, and healthcare proxy. Depending on your circumstances (e.g., minor children, taxable estate, etc.) or preferences, a fourth document, the revocable trust, may also be part of this core group. A discussion of trusts would require more space than is available in this article, but the questions posed here will still be useful if you and your attorney decide trust planning is appropriate.

Last Will and Testament

A will’s primary functions are to direct the distribution of probate property, nominate the personal representative (previously known as the ‘executor’) of your estate, and nominate the guardians and conservators of any minor children who survive you.

First, who do you want to get your probate property when you die? Although seemingly straightforward, this question contains within it a multitude of sub-questions. Do you want to make sure someone gets a particular item? Do you want to leave someone a specific dollar amount, and, if so, how much? Is there someone you want to make absolutely sure gets nothing from your estate? And what happens if everyone you have named in your will predeceases you?

As you consider these questions, keep in mind two critical points: the will ultimately controls only the distribution of probate property, which is not necessarily all the property you may own. Probate property consists only of the assets you owned in your name alone at your death. Assets with beneficiary designations, such as life-insurance policies and IRAs; jointly owned assets, such as some bank accounts; and assets in trust are all examples of non-probate property. In creating an estate plan, then, just as important as the question of what you own is the question of how you own it.

Finally, you need to consider who you trust and, among those individuals, who has the right skill set and disposition to serve as personal representative of your estate or as the guardian of your children. The best way to think about these roles, and about any of the other roles discussed here, is as jobs with their own particular job descriptions. In this way, deciding on the right person should be more than a matter of simply naming, for example, your eldest child; rather, give some thought to each person’s proverbial resumé.

Durable Power of Attorney

The purpose of the durable power of attorney is to designate someone to manage your financial affairs during your life. The person you appoint is variously referred to as your ‘agent’ or ‘attorney-in-fact.’

When your agent may act for you will depend on how the document is drafted. In some durable powers of attorney, the agent’s authority is immediate. In so-called ‘springing’ durable powers of attorney, the agent’s authority commences only upon the determination of a physician that you lack the capacity to manage your own affairs. Each of these approaches has its own pluses and minuses, which your attorney can explain.

Healthcare Proxy

In a healthcare proxy, you designate an individual to serve as your ‘healthcare agent.’ Their role is to make medical decisions on your behalf in the event you are unable to communicate your wishes. However, the healthcare agent’s authority is effective only upon a physician’s determination that you are incapacitated.

Healthcare proxies are often conflated with what are commonly known as living wills. A living will is a document in which you set your preferences regarding, among other things, end-of-life care. Living wills, unlike healthcare proxies, are not legally binding in Massachusetts; however, this document can provide a helpful framework for your healthcare agent in making medical decisions on your behalf.

This is a general overview of what is ultimately an intensely detail-oriented subject. But, armed with this little bit of knowledge, you have the beginnings of what you need to create your estate plan. The next step, naturally, is to contact an attorney.

Stephen Sobey is an associate with Shatz, Schwartz and Fentin.

Decisions, Decisions

How to Choose a Medicare or Medicare Advantage Plan

By Sarah Fernandes

In Massachusetts, more than 1.4 million people who are 65 or older will be making decisions about their 2024 Medicare and Medicare Advantage coverage during the Medicare Annual Enrollment Period (open enrollment) from Oct. 15 to Dec. 7. Before choosing their plans, Medicare beneficiaries should consider a few things.

Sarah Fernandes

“By focusing on prevention, any potential health issues can be identified early, and you can work to maintain optimal health and prioritize your well-being.”

Is All Medicare Coverage the Same?

While Original Medicare (Parts A and B), the plan provided by the federal government, covers hospitalizations and most doctors’ services, coverage for other services like outpatient care, medical supplies, and preventive health care (Parts C and D) can vary widely. Part C, otherwise known as Medicare Advantage, and Part D (prescription drug coverage) are offered through private insurers, such as Health New England and others.

What is Medicare Advantage (Part C)?

Medicare Advantage (Part C) plans cover everything Original Medicare (Parts A and B) would cover, but offer additional benefits and services beyond Original Medicare. These added benefits can include prescription-drug coverage, vision care, dental services, hearing aids, wellness programs, and more. Medicare Advantage plans provide greater opportunities for beneficiaries to engage in preventive services, such as regular checkups, screenings, vaccinations, and health education.

By focusing on prevention, any potential health issues can be identified early, and you can work to maintain optimal health and prioritize your well-being. If you do have a chronic condition, a coordinated approach from your Medicare Advantage plan and your providers ensures that you receive the necessary support, education, and interventions to manage your condition effectively, leading to improved quality of life and health outcomes.

How Do I Decide?

To decide what plan is right for you, be sure to review the features of the plan. For instance:

• Make a list of your preferred healthcare providers and see if they are considered in-network or out-of-network for each plan you are considering. Some plans do not cover out-of-network services at all, while some cover them partially.

• Similarly, make a list of your medications and see if they will be covered and how much, if anything, you will need to pay out-of-pocket (your co-pay).

• If you travel or spend time in other areas of the country, check if the plan allows you to use any Medicare-accepting doctor anywhere in the U.S.

• See if the plan covers dental, vision care, hearing services, and prescription drugs.

• Ask if the plan offers additional healthy benefits such as gym memberships, coverage for acupuncture, activity trackers, and weight-management programs.

How Do I Learn More?

Health New England’s Medicare Advantage plans are a popular option for people aged 65 and older who are looking to tailor their healthcare coverage to their personal needs. As part of Baystate Health, Health New England has many high-quality providers in our network across Western Mass., and we have plans that cover you anywhere you travel in the U.S.

To learn more about choosing the right Medicare or Medicare Advantage plan, you can attend Health New England’s live information sessions, which you can find and register for at healthnewengland.org/medicare/sessions.

For more information about Health New England, visit healthnewengland.org/medicare or call (877) 443-3314 (TTY: 711). SHINE, Massachusetts’ free Medicare advice service, is available online at mass.gov/health-insurance-counseling or by calling (800) 243-4636. For more information about Medicare, visit medicare.gov.

Sarah Fernandes is the Medicare sales manager at Health New England and been with Health New England for more than 23 years. She and her team educate Medicare beneficiaries in Western Mass. on their Medicare options.

Preparing a Will

It Can Be a Dreaded Task, but It’s an Important One

By Mary Paier Powers, Esq.

Completing a will is often a dreaded task to undertake — partly because we don’t want to face our own mortality, and partly because we don’t know where to begin.

A will is an important document that ensures property you own in your own name passes to the beneficiaries of your own choosing, and it can be changed as necessary. Your will gets filed at probate court when you pass away owning assets in your own name. Assets that have a beneficiary listed or assets that you own jointly are not controlled by your will.

Mary Paier Powers

“A will is an important document that ensures property you own in your own name passes to the beneficiaries of your own choosing, and it can be changed as necessary.”

As you are about to embark on this process, here are some thoughts to consider.

• Who are your beneficiaries? Family, children, friends, charities, or a combination of all? You can construct your will to leave your estate to the beneficiaries of your choosing.

• How old is a beneficiary, and does that beneficiary have the ability to manage the money or inheritance? Can they be in control if they receive a lump sum of money?

• Will you need a trust as part of your will? A trust provides for the management and distribution of assets for a beneficiary in a manner that is best for the beneficiary.

• What if a beneficiary passes away before you? Does that beneficiary’s share pass to their children? Or does it go only to your surviving beneficiaries?

• Some people plan for the future when they prepare their wills and try to accommodate various situations. It is OK and often recommended to update your will as your family and beneficiaries change. There is always uncertainty with what the future holds.

• If you do want to make minor changes later, you can do that with a codicil. This is an amendment to your will that changes the specific paragraphs that need to be adjusted, or, if there are a lot of changes, you would redo your entire will.

• If you opt to leave money to a charity, I encourage you to look at the organization’s website. You can opt to leave your money to a general fund and allow the charity to use the funds as the charity chooses, or you can specify your preferences for the use of your bequest.

• Another consideration is whom you should name as your personal representative, formerly known as an executor. This is an important responsibility since this person will gather your assets and distribute them as you direct. The personal representative will be responsible for making sure that the estate-tax return and income-tax return are completed if required, as well as making sure final personal income-tax returns are done.

• You should think of a second person to serve as a backup if the first named person/party cannot carry out these responsibilities.

• If you have minor children, you will want to think about who their guardian and/or conservator will be. Generally, the spouse or the child’s surviving parent will be listed, but you can also name alternate agents to serve in this capacity.

• You can also prepare a memorandum that will list various personal property items. Your personal representative will follow this list as a guideline. A memorandum can be completed by you individually, but you need to keep it with your will so the personal representative has access to it. This memorandum is a great mechanism to distribute personal items as well as sentimental items to beneficiaries of your choice — and if you change your mind, you can write a new memorandum.

This list is meant to be a starting point, and everyone’s situation is different. The most important step is to prepare a will; otherwise, the Commonwealth will dictate who will receive your assets at your death.

Mary Paier Powers is a partner at Powers Law Group in Springfield and West Springfield, where her practices focus primarily on estate settlement, estate planning, and elder law.

A Task Better Left to a Professional

Being in Charge of an Estate Can Be Unsettling

By Janice Ward, Esq., CFP

It is a fact: estate administration is complicated and time-consuming. Money can, and often does, complicate relationships. Money can make people do things they wouldn’t ordinarily do. Money can breed distrust — and worse.

These are just some of many reasons why those with estates, especially large estates or those with complex assets, should think carefully about who they choose to be their personal representative (formerly known as an executor or executrix) to administer their estate after they pass. Because settling an estate can be an unsettling experience and can potentially damage and destroy personal family relationships, you might consider an alternative to a family member.

Janice Ward

“Overall, the person you choose as your personal representative will be responsible for a daunting list of tasks.”

Overall, the person you choose as your personal representative will be responsible for a daunting list of tasks. For a grieving family member, this could represent an unintended burden that requires a wide range of expertise and significant time commitment during this very difficult life transition. And if this isn’t enough, they may have to contend with pressure from — and disputes with — beneficiaries who are usually other family members. The resulting tug of war can lead to lengthy delays, sometimes lasting years, and often resulting in strained relationships and sometimes irreconcilable, heartbreaking splits among surviving family members.

An increasingly popular alternative is to choose a third-party professional, such as the Estate Settlement team within Greenfield Savings Bank Wealth Management and Trust Services. Such professionals can take away the burden and worries of estate settlement and ensure that one’s estate is managed efficiently and according to their wishes, without overburdening one specific family member. Alternatively, a professional personal representative can serve jointly alongside a family member. Such professionals can handle a wide array of responsibilities, including:

• Entering the will into probate and handling other legal requirements;

• Gathering all personal property and arranging for support of the family;

• Clearing out the decedent’s home and preparing for distribution or sale;

• Obtaining appraisals of required property for tax purposes;

• Reviewing real-estate records to assure timely payment of taxes and collection of rents;

• Evaluating contracts and leases, giving necessary notices, and complying with all requirements;

• Investigating all claims against the estate and handling them accordingly;

• Collecting all life insurance, rents, and other amounts due;

• Preparing and filing your final personal income-tax return, as well as any estate/inheritance tax returns that may be required either on a state or federal level;

• Paying related estate and inheritance taxes;

• Preparing a final accounting of the estate for the remainder beneficiaries; and

• Distributing the estate as directed by the will.

This partial list of responsibilities reveals just how complicated and time-consuming the settling of an estate can be. Individuals should keep this in mind when they are choosing a personal representative.

While choosing a family member may seem like a logical step, and some family members may actually volunteer for the assignment, most individuals are not fully qualified to handle such duties, and even if they are, they would often be placed in a difficult situation where relationships can become strained and matters can be delayed. There is often a perception of unfairness if one family member is making all the decisions that affect the personal finances and tax consequences of each beneficiary. For example, is this individual liquidating all the assets — which might cause significant capital gains to family members who pay high tax rates — and are those decisions equally fair and appropriate for all affected parties?

A professional personal representative will not only know the requirements of estate administration from a tax perspective, but will also understand the consequences of every decision they make as they assemble and then distribute each important piece of the puzzle. Choosing such a professional shouldn’t be considered disrespectful to family members. It should be looked upon as a common-sense alternative, one that can alleviate potential problems and eliminate the stress on familial relationships that often arises when money is at stake and an estate needs to be settled.

Janice Ward is an attorney, certified financial planner, and first vice president and trust officer at Greenfield Savings Bank.

Roadblocks to Equality

LGBTQ+ Elders Face Unique Planning Challenges

By Julie A. Dialessi-Lafley, Esq.

You have heard it and read it over and over again: everyone, regardless of their level of wealth, should have an estate plan. However, for LGBTQ+ elders, it may be even more critical to have an estate plan in place due to the challenges faced by many in the community.

Despite the fact that same-sex marriages are legally recognized in all 50 states, only 54% of same-sex couples are married. Not only are there still challenges for married same-sex couples, the high percentage of non-married couples also necessitates planning. While the government can create a law recognizing these marriages, there are organizations, businesses, and people who do not acknowledge these couples. The result is challenges for couples who simply want equality, as well as to provide and plan for their loved ones and chosen family.

Julie A. Dialessi-Lafley

“Making sure planning is in place to provide for the needs of the surviving spouse, partner, and other family and friends is crucial, as the laws in the absence of planning may not provide for those loved ones as you would want.”

Planning for retirement is both a financial goal as well as a lifestyle decision for LGBTQ+ elders. Making sure planning is in place to provide for the needs of the surviving spouse, partner, and other family and friends is crucial, as the laws in the absence of planning may not provide for those loved ones as you would want.

Additionally, social isolation can really creep up and become a serious problem to overcome. The question of where to retire has become overwhelming, as relocation brings with it a need to find an area that provides for the social inclusion for these elders as well as financial stability, reasonable cost of living, and lifestyle needs.

Within the U.S., about 80% of long-term care for older people is provided by family members, such as spouses, children, and other relatives. LGBTQ+ elders are only half as likely as their heterosexual counterparts to have close family to lean on or children to help. Simply put, folks who are part of the LGBTQ+ community are less likely to be married, they may have children where only one partner is the biological parent, and there is a high incidence of alienation from non-accepting family members.

Planning how long-term-care medical needs will be paid and who will act as the healthcare proxy/advocate for the LGBTQ+ elder is crucial, as many LGBTQ+ elders need to make sure they have an appropriate person to assist in making decisions about their care, as well as being concerned about harassment and hostility in facilities that serve the aging population. These folks often do not access aging services out of fear of hostile and harassing treatment. Few facilities are prepared to address insensitivity or discrimination aimed at LGBTQ+ elders by staff or other older people. Proper planning and memorializing those wishes in an estate plan can allow the elder person to age with the dignity and respect they deserve.

For non-married partners, planning is extremely important because, under the law, a partner is not going to have the standard rights to healthcare information and the ability to make healthcare decisions on behalf of their partner. A partner will not be able to access bank accounts if they are not in joint names and they are not able to make any and all decisions on behalf of their partner. Unmarried partners are not entitled to any inheritance in the absence of a will, trust, or proper planning.

Regardless of marital status, end-of-life decisions, the question of cremation versus burial, and any memorial arrangements should be documented to make sure your wishes are carried out as, again, both non-married and married partners may face significant challenges in carrying out your wishes in the absence of documentation.

In LGBTQ+ couples with children, only one parent might be the biological parent, or neither might be. They might have used an egg or sperm donor to conceive, or a surrogate to carry the child. There are varying rules across states about parental rights, but from a legal perspective, the biological parent is the one with the legal rights, barring any other court documentation. Even a birth certificate with both parents’ names on it may not be enough.

A last will and testament lays out who your assets should go to after you die. It also allows you to name a guardian for your minor children. It can help your family avoid disputes that might arise if there is not a plan in place or if it is not clearly stated. Additionally, trusts can be used to plan where assets go after you die and also avoid probate of your estate. This can be a cost-effective way to reduce conflict in the future and avoid claims against the elder’s estate from family who have been intentionally omitted from the planning.

As a result of what the community describes as continued discrimination and lack of inclusion, elders need to ensure that they have in place, at minimum, the appropriate documents, such as durable power of attorney, healthcare proxy; will, trusts (if warranted), and end-of-life directives in order to ensure their wishes can be carried out and their needs will be met in the event of an illness or death.

Estate planning can help to navigate through an increasingly complex legal system, and proper planning can protect your loved ones when they will need it most.

Julie Dialessi-Lafley is a shareholder with Bacon Wilson whose practice areas include estate planning and elder law, domestic relations and family law, and business and corporate law; (413) 781-0560; [email protected]

A Gentle Reminder