Robert P. Milia

11/8/42-5/9/11

Michigan Defines "Super" Drunk

By now, you may have heard of Michigan's new "Super Drunk" driving law that went into effect on October 31, 2010. Under this new law, harsher fines and penalties will be delivered to those guilty of being "super drunk." Michigan will now differentiate between intoxicated operators who have a bodily alcohol content (BAC) of .08 and above and "super" intoxicated operators who have a BAC of 0.17 and above.

Some of the stiffer fines and penalties for a "super" drunk conviction include a maximum incarceration penalty of 180 days, fines ranging from $200 to $700 and a mandatory one year suspension of the drivers license if no prior convictions within the previous seven years and no more than two convictions within the previous ten years. The mandatory one year suspension includes an initial 45 day "hard" suspension where the offender is prohibited from driving for any reason. For the remaining days under the suspension, the offender may be allowed restricted driving privileges only if an ignition interlock device has been installed on the offender's vehicle. If an offender is caught driving a vehicle without the required interlock device, the car will be immediately impounded and may be immobilized for up to 180 days.

Another new penalty to befall both repeat drunk-driving offenders and first time super drunk offenders is the mandatory alcohol rehabilitation program. A conviction for a repeat offender or a first time super drunk offender will now result in the mandatory participation in an alcohol treatment program or self-help program for a period of not less than one year with all fees and costs taxed to the offender.

	Old Statutory Language	New "Super Drunk" Language
Maximum Penalty for First 0.17 BAC and up Offense	93 days	180 days
Fines and Costs for First 0.17 BAC and up Offense	$100 - $500	$200 - $700
Mandatory Suspension of License (possibility of restricted license privileges)	6 month suspension if no priors within previous 7 years and no more than 2 convictions within previous 10 years	1 year suspension if no priors within previous 7 years and no more than 2 convictions within previous 10 years
Mandatory Hard Suspension (no driving at all for any reason)	30 days	45 days
Mandatory Ignition Interlock Device Installed to Receive Restricted License	Only Required for Repeat Offenders	Required for First Offenders
Mandatory Alcohol Rehabilitation Program	None	Repeat offenders and offenders with a BAC of 0.17 and higher must participate in a minimum one year alcohol education program

Please contact POWERS CHAPMAN with any questions you may have regarding these new changes to Michigan's Motor Vehicle Code or for anything else our firm can assist you with.

Amanda Bentley Warner

Times Are Surely Changing with the Federal Estate Tax

In the world of Federal Estate Tax ("FET"), the mantra surely is, "Change is with us." None of us who work in this area thought we would end up with no tax in 2010, much less a new Tax Bill being passed into law on December 17, 2010.

Fortunately, we now have some clarity in the FET area, at least for the next two years. The new law ("TRA 2010") provides for a $5 Million per person FET exemption for the years 2011 and 2012, with a 35% top FET rate.

This means that for people with gross estates of under $5 Million with one Trust, or $10 Million using two Trusts properly funded, they will be able to pass the their entire estate to their heirs without being subjected to a Federal Estate Tax.

For those who died during calendar year 2010, an option is available. The decedent's estate can follow the rules under the TRA 2010, which provides for a "stepped-up" income tax basis for appreciated assets. In the alternative, the estate can utilize the "No Estate Tax for 2010," but with appreciated assets in the estate receiving only a modified basis step-up ($1.3 Million for non-spousal beneficiaries and a $3 Million for spousal beneficiaries). Consultation with your tax advisors is strongly recommended before electing either option.

For many people with estate plans presently utilizing two formula-type trusts, who do not anticipate that their gross estate will ever exceed $5 Million, the use of a single or joint trust may be an option. For those with gross estates over $5 Million, the two-trust plan with formulas designed to minimize or eliminate estate taxes will still be appropriate.

Your guess is as good as mine as to what we can expect in 2013, and thereafter, but for the time being many planning opportunities are available. We recommend that your estate plan be reviewed as soon as possible. With this in mind, please call our office to make an appointment.

As the saying goes, "Carpe Diem!"

L. Gene DeAgostino

Powers Chapman Welcomes Amanda Bentley Warner

Powers Chapman welcomes Amanda Bentley Warner to its full time staff as an associate attorney effective 11/1/10. Amanda has worked for the firm for several years as a clerk and has done a wonderful job. We look forward to working with Amanda on a full time basis as an associate attorney. Welcome!

Amanda Bentley Warner (Associate) Born Rochester, Michigan, 1984; admitted to bar, 2010. Education: University of Michigan, Flint (B.A. with High Honors, 2007), Wayne State University Law School (J.D., 2010); Managing Editor 2009-2010, THE JOURNAL OF LAW IN SOCIETY. Member: American Bar Association; State Bar of Michigan; Women Lawyer's Association of Michigan; Oakland County Bar Association and Macomb County Bar Association. Practice Areas: Personal injury, medical malpractice, no-fault insurance, civil litigation, bankruptcy, and general practice.

Awards and Honors

Powers, Chapman has proudly served as the Michigan provider firm for Legal Shield (formerly known as Pre-Paid Legal Services, Inc.) since 1994. In that capacity, our firm delivers extensive legal services to nearly 40,000 individual, family and small business members of Legal Shield.

We do so, not only with sound technical legal assistance, but also with a strong focus on the client service/satisfaction aspect of our practice.

On October 22, 2010, Legal Shield held its 2010 Black and Gold Banquet to honor the 38 independent provider law firms that provide legal services to its members throughout the U.S. and four provinces of Canada.

The annual event was held in Tulsa, Oklahoma and the program included the Top 10 Provider Awards, presented to provider law firms, attorneys and the professional and administrative staff at these firms. The awards program is based on the "WOW Service from the Heart Program," a customer service and best practices program developed by Legal Shield to help ensure the highest quality service to the company's members.

"In 2009 the independent provider law firms that deliver legal services to our members responded to an estimated 2.3 million requests for legal services," said Harland C. Stonecipher, the company's founder. "Through real time monitoring, surveys and unsolicited customer communications, we are able to maintain an ongoing record of 'best practices' among our provider law firms. The annual provider law firm awards recognize the highest quality work within our unique network of law firms, attorneys and law firm professionals," he said.

Powers, Chapman was honored with the "Distinguished Service Award", at the 2010 awards banquet. This accolade placed our firm in the Top 5 of Legal Shield provider firms, for several years running. We are proud of this achievement, having earned it within a network of excellent law firms across North America. In addition to this collective honor, two of our attorneys received Members' Choice Awards for excellence in individual service, according to the opinions of our members, as expressed in systematic surveys conducted by Legal Shield.

Legal Shield maintains a rigorous monitoring system and conducts surveys which provide feedback on the customer service experience of members with the provider law firms. This is one of the distinguishing characteristics of the "Provider Law Firm Network System." The average tenure for provider law firms in the Legal Shield network is more than 12 years.

We at Powers, Chapman, are honored to be among such an esteemed network of Legal Shield provider law firms, all with the common goal of providing quality legal service at affordable rates to a broad range of Legal Shield members.

Patient Protection and Affordable Care Act - How Does It Affect You?

The Patient Protection and Affordable Care Act signed into law on March 23, 2010 and its amendment, Health Care and Education Reconciliation Act of 2010 signed into law on March 30, 2010 affects individuals, health insurers and employers. The following lists some highlights on how this law affects us as a nation.

2010

Dependent Coverage – Dependents are permitted to remain on their parents' medical insurance plan until age 26 for plan years that begin on or after the date six months after the enactment. Dependent child can be married or unmarried

No Lifetime or Annual Limits – Prohibits lifetime limits on group health plans for plan years that begin on or after the date six months after the enactment.

2011

Employer W-2 Reporting – Requires employers to disclose value of health benefits provided by employer on employee's W-2

2012

Corporate Information Reporting – Requires employers to expand reporting requirements to include reporting payments to the IRS made to corporate and non-corporate providers of goods and services over $600

2013

Threshold for Itemized Deduction for Medical Expenses – Unreimbursed medical expense deduction will increase from 7.5% to 10% of adjusted gross income

Flexible Savings Account Contribution – Limits the amount of the contribution to $2,500 per taxable year

Tax On Investment Income – Impose a 3.7% tax on lesser of "net investment income" or excess of modified adjusted gross income. Net investment income generally means excess of interest, dividends, annuities, royalties, rents, gain from disposition of certain non-business property

Employee Portion of Medicare Tax – Wages in excess of $200,000 for an individual or $250,000 for joint returns will pay an extra .9% for medicare taxes from their wages increasing the current medicare tax portion of 1.45% to 2.35%

2014

Minimum Essential Coverage - Individuals who fail to maintain minimum essential coverage are subject to a penalty

This information is intended to provide only a general summary of the PPACA and the Reconciliation Act. To ensure compliance, please contact your professional.