Page 16 THE REVERE ADVOCATE – FRIDAY, JUNE 30, 2023 BBB Scam Alert: How to spot a credit check scam when apartment shopping M oving this summer? Watch out for a new twist on fake rental ads. According to multiple Better Business Bureau (BBB) Scam Tracker reports, scammers use fake tenant credit checks to trick potential renters into compromising sensitive personal information. How the scam works: You fi nd a good deal on an apartment while browsing rental listings online. When you call the number to inquire, the owner asks you to complete a credit check before you can see the place. If you agree, they’ll send you a link to a website where you can get the credit check done. The website might look professional, but it’s all part of a scam. After you enter your sensitive information and pay for the credit check, the “landlord” will disappear. Your credit card information could be compromised, and you could even be at risk for identity theft. One consumer reported the following experience: “I gave my name, address, and social security number to obtain my credit score from this website. I was asked to take a screenshot of my score and send it to the same address that emailed me the link. Afterward, I was sent an email with a showing time, but the house number was not listed on this email or on the listing on Craigslist.” Afterward, the consumer was unable to reach anyone about the apartment. Their calls and emails went unanswered. How to avoid credit check rental scams • Be wary of lower-than-usual prices. If the rent for an apartment is well below the going market rate, consider it a red fl ag. Scammers love to draw people in with claims that sound too good to be true. • Do some research. Search the listing online, as well as the associated phone number and email address. If you fi nd another listing for the same property in a diff erent city, you’ve spotted a scam. Reverse image searches can be helpful, too, as can searching the alleged landlord’s name along with the word “scam.” These searches only take a few minutes and are well worth the eff ort. • Always see the property in person. Many rental scams involve listings for properties that don’t exist. Something is fi shy if the renter refuses to let you know where the apartment is before you complete a credit check or pay them a deposit. Be wary, too, if you are given the address of a home with a For Sale sign in the yard. You might not be in contact with the actual owners. • Verify the property owner’s information. Contact a licensed real estate agent to see who owns a property or check the county property appraiser’s website. Ask the landlord for a copy of their ID to verify they are who they claim to be before you off er up sensitive personal information like your social security number for a credit check. If the landlord refuses or gets upset, you could be dealing with a scammer. SCAM | SEE Page 20 LIFE ESTATES AND STEP UP IN COST BASIS O ne common dilemma facing the remaindermen listed on a deed is how to calculate the cost basis of the real estate in question upon the death of the life tenant or life tenants. This is an important issue as the remaindermen need to know their cost basis in the event they subsequently sell the real estate or rent it out thereby requiring depreciation calculations. If, for example, a father deeded his home to his two children and reserved a life estate on the deed itself (essentially the right to use, occupy and possess the home for the rest of his life), upon the father’s death, under Internal Revenue Code (IRC) Section 2036(a)(1), the fair market value (FMV) of the home at the time of the father’s death would be the starting cost basis in the hands of the children going forward. If the FMV of the home was $600,000, the law treats it as though the children paid $600,000 for the home. This of course helps tremendously to avoid or greatly eliminate any capital gains tax upon a subsequent sale of the home. What if the father and mother both deeded the home to the children with reserved life estates? In this situation, since the father deeded his 50% interest in the home to the children with a reserved life estate, upon the father’s death, only 50% of the property is stepped-up to FMV upon his death. Since the mother deeded her 50% interest in the home to the children with a reserved life estate, upon the mother’s death, only 50% of the property is stepped-up to FMV upon her death. As a result, the home would have to be valHealth Insurance Options After a Spouse Retires Dear Savvy Senior, My 63-year-old wife, who’s doesn’t work, is on my health insurance plan through my employer. When I retire next month and go on Medicare, what are our options for getting her health coverage until she turns 65? Is there some kind of Medicare coverage for dependent spouses? Need Insurance Dear Need, Unfortunately, Medicare does not provide family coverage to younger spouses or dependent children when you qualify for Medicare. Nobody can obtain Medicare benefi ts before age 65, unless eligible at a younger age because of disability. With that said, here are your best options for covering your wife. Affordable Care Act: In most cases, your best choice is to get your wife an individual health insurance policy through the Aff ordable Care Act (ACA) health insurance Marketplace (a.k.a. Obamacare). The Marketplace off ers comprehensive health coverage, and she won’t be denied coverage or charged extra for preexisting health conditions. And thanks to the American Resued at both the father and mother’s death in order to obtain the new cost basis in the hands of the children upon the second to die. You would take 50% of the FMV of the home upon the father’s death and add that fi gure to 50% of the FMV of the home upon the mother’s death. Furthermore, 50% of the FMV of the home would be includible in the taxable estate of each spouse upon his or her death. What if the father and mother reserved a life estate, as husband and wife, tenants by the entirety? Would that make a diff erence in the calculation? The answer is no. Upon the father’s death, he in essence gifts his life estate to his wife. This is referred to as a life estate pur autre vie. Upon the subsequent death of his wife, there will not be a step-up in cost basis of the husband’s 50% life estate given to her as she simply did not retain a life estate in 100% of the home. She only retained a life estate in the 50% that she originally gifted to the children. She did not retain a life estate in the husband’s 50% interest. Only he did. This is pursuant to IRC Section 2036(a)(1) dealing with retained interests. Joseph D. Cataldo is an Estate Planning/Elder Law Attorney, Certifi ed Public Accountant, Certifi ed Financial Planner, AICPA Personal Financial Specialist and holds a Master’s Degree in Taxation. cue Plan and Infl ation Reduction Act, the Marketplace now provides enhanced subsidies through 2025. If your income falls below the 400 percent poverty level after you retire – anything below $73,240 for a couple or $54,360 for a single in 2023 – your wife will be eligible for a tax credit that will reduce the amount you’ll have to pay for her policy. The Marketplace also ensures that households with incomes above that 400 percent poverty level will not have to pay more than 8.5 percent of their income for a benchmark policy. To see how much subsidy you may be eligible for, use Kaiser Family Foundation calculator at KFF.org/ interactive/subsidy-calculator. To shop for Marketplace plans in your state, visit HealthCare.gov or call 800-318-2596. Or, if you want some extra help, contact a Marketplace-certifi ed agent or broker at HealthCare.gov/fi nd-assistance. COBRA: Another option is the Consolidated Omnibus Budget Reconciliation Act (COBRA), which is a federal law that would allow your wife to remain with your company insurance plan for at least 18 months after you make the switch to Medicare. But not every employer plan is COBRA eligible. Contact your employer benefits administrator to fi nd out if yours is one of them. You also need to be aware that COBRA is not cheap, requiring you to pay the full monthly premium yourself. But, if you’ve already met or nearly met your employer plan’s deductible or out-of-pocket maximum for the year, and don’t want your wife to start over with a new plan; or if you fi nd your employer’s health plan to be more aff ordable than the Marketplace plans, it makes sense for your wife to keep her current coverage under COBRA. Short-Term Health Insurance: If you can’t fi nd an aff ordable Marketplace plan and COBRA is too expensive, the next option is shortterm health insurance. These plans, which are not available in every state, are cheaper, bare-bones health plans that provide coverage for one to 12 months and may be renewed for up to three years in some states. But be aware that short-term plans don’t comply with the ACA so they can deny sick people coverage, they don’t cover preexisting conditions, and they can exclude coverage essentials like prescription drugs. To fi nd and compare short-term health plans, try sites like eHealthInsurance.com or PivotHealth.com. Healthcare sharing ministries: One other coverage option you should know about is healthcare sharing ministries (HCSM). These are cost-sharing health plans in which members – who typically share a religious belief – make monthly payments to cover expenses of other members, including themselves. HCSM’s are cheaper than paying full out-of-pocket costs for traditional health insurance but be aware that HCSM’s are not health insurance. They don’t have to comply with the consumer protections of the ACA. They can also reject or limit coverage for having pre-existing health issues and can limit how much you’ll be reimbursed for your medical costs. To look for HCSM plans, comparison shop at the three largest providers: SamaritanMinistries.org, MyChristianCare.org and Chministries.org. Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior.org. Jim Miller is a contributor to the NBC Today show and author of “The Savvy Senior” book.
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