ABLE Accounts

 

There is a solution on settlement of cases for ($20,000 or less) for clients with disabilities, so that they don’t lose Medicaid or SSI benefits.

 In 2019, Mississippi enacted the Mississippi ABLE Act that implements the federal ABLE Act. It allows for an account for a person with a disability that began prior to age 26 (to be raised to age 46 in 2026) that will not be counted by SSI or Medicaid as part of the beneficiary’s assets. SSI limits countable assets to $2,000 (including funds in a conservatorship) and some Medicaid programs limit countable assets to $4,000.

 The maximum amount that can be deposited to an ABLE account in a calendar year is the same as the fed gift tax annual per done exclusion amount - $18,000 in 2024.  So, a person on SSI who receives a $20,000 settlement  could put $2,000 or less in a checking account and $18,000 in an ABLE account and keep SSI and Medicaid.

Divorce and Life Insurance

 

Miss. Code Ann. Section 91-29-23 revokes a divorced spouse’s designation as life insurance beneficiary (absent some specified exceptions) from and after July 1, 2020.

 Prior to July 1, 2020, the mere act of divorce in Mississippi did NOT divest a spouse of her rights as the designated beneficiary under a life insurance policy insuring the life of her ex husband.  First Columbus Nat. Bank vs. D.S. Pate Lumber Co., 141 So. 767 (Miss. 1932)

Case of Interest

Yesterday, the Mississippi Supreme Court decided American Compensation Insurance Company v. Hector Ruiz, Doing Business As Los Primoz Construction; Raul Aparacio; Jesco, Incorporated; and Appalachian Underwriters, Incorporated located here.  This was a good decision for workers as it found that an insurance company cannot void coverage due to alleged misrepresentations by an employer in filling out a worker's comp insurance application.    Ironically, we had resolved a case in the Western District of Tennessee coming to the same conclusion a few months earlier. 

Book of Interest

 AAJ just released Litigation Obstruction:  Breaking Through by Mark Kosieradzki.   I received a copy last week and it is excellent and perhaps the most detailed book I have seen on answering or lack of answers on discovery.   A link to it is here.   

Possible Language to Add to Mediation Agreement

 

There are no other material terms to the settlement other than as set forth in this mediation agreement” “The mediation agreement sets for the intent of the parties and shall be attached and adopted by any subsequent release”

 

ABA Ethics Opinion

 

The American Bar Association (ABA) last week issued Formal Opinion 511 stating that, under Rule 1.6 of the Model Rules of Professional Conduct, attorneys do not have implied authorization to reveal information about a client’s representation to a wider group of lawyers by posting a comment or inquiry on a listserver discussion group. To do so within ethical boundaries, lawyers must have the client’s informed consent.

Rule 1.6 prohibits lawyers from revealing information relating to the representation of a client unless the client gives informed consent. It is not limited to information subject to attorney-client privilege. Extending the rule to listserver postings, the opinion pointed out that posting to a listserver is not the same as seeking the counsel of an individual lawyer or select group of lawyers in a client matter. Participants in a listserver discussion group are often unknown to the person posting. As such, attorneys cannot count on the audience to keep any disclosures confidential. In fact, the opinion noted, there is no way for the posting lawyer to ensure that their client’s information will not be disseminated further by another listserver participant, used against the client, or even seen by those representing another party in the same case.

Similarly, lawyers cannot skirt the rule by posting in “anonymized, hypothetical, or [ ] abstracted form” if there is a reasonable likelihood that someone seeing the posting could discover the client’s identity. Posting in hypothetical or anonymous terms must therefore also be done only with the client’s informed consent. Rule 1.0(e) provides guidelines for what constitutes informed consent.

The opinion recognized that listservers can fulfill a useful educational purpose for lawyers. It acknowledged that these discussion groups can be a good way for attorneys to stay abreast of changes in the law, update each other about new case law, and share recommendations. Using listservers in these ways is unrelated to specific client matters and can therefore be done without obtaining a client’s informed consent. The opinion cautioned, however, that lawyers should remain vigilant about the confidentiality risks listservers pose and should be mindful of ethical boundaries before posting anything to a listserver.

Attorney Amir Tahmassebi, who is a co-chair of the Chicago Bar Association’s professional responsibility committee, said “In my view, ABA Opinion 511 correctly interprets Rule 1.6 and provides important guidance relating to disclosing confidential information. It highlights the importance of attorneys protecting their client’s confidential information, which is the bedrock of the attorney-client relationship."

Understanding Mississippi Law on Towing and Storage Costs: What You Need to Know

 Understanding Mississippi Law on Towing and Storage Costs: What You Need to Know

Are you aware of your rights and responsibilities when it comes to towing and storage costs in Mississippi? Whether you're a vehicle owner, a towing company, or a real property owner, it's crucial to understand the regulations outlined in Mississippi Code Annotated section 85-7-251.

1. Liability for Towing and Storage Costs: According to the statute, the owner of a motor vehicle that has been towed is liable for the reasonable price of towing and storage. This applies in various scenarios, including towing at the request of the owner, at the direction of a law enforcement officer, or upon request of a real property owner for a vehicle left without permission for more than five days.

2. Notice Requirements: Towing companies are required to report towed vehicles to the local law enforcement agency within 24 hours unless towed at the owner's request. If the owner hasn't contacted the towing company within five business days, efforts must be made to locate the owner and lienholder. Notification of the amount due must be sent via registered mail within ten days of the initial tow. Failure to comply with these notice requirements may preclude the imposition of storage and towing charges.

3. Sale of Towed Vehicles: If towing and storage charges remain unpaid for 30 days, the towing company can commence the sale of the vehicle at public auction after providing notice to legal owners and lienholders. Notice of the sale must be published in a newspaper with circulation in the county where the vehicle was initially towed. Proceeds from the sale, after covering expenses, are held for six months and then become the property of the county if not reclaimed by the owner.

4. Recordkeeping Requirements: Towing companies are obligated to maintain accurate records for three years, identifying towed vehicles and detailing compliance with the statute's provisions.

Conclusion: Understanding Mississippi's laws regarding towing and storage costs is essential for all parties involved. Whether you're a vehicle owner, a towing company, or a real property owner, compliance with these regulations ensures fair treatment and protection of rights. If you have questions or concerns about your rights and obligations under Mississippi law, it's advisable to consult with legal experts familiar with the intricacies of these statutes.