Dear Friends:

This is the eighth newsletter I have sent to clients since January, 2006. As many of you know, I recently have welcomed Attorneys Allison M. DePaola and Bernard J. Kito, III to my staff and they have participated in writing this newsletter. We expect to continue to provide the same careful, individually crafted, personalized, and cost effective legal counsel, advice, and representation that I have provided many of you in the areas of law discussed in this and earlier newsletters. In addition to these practice areas, we now will provide counsel, advice, and representation in all aspects of family law, and in employment law including subjects such as unemployment compensation, hiring and termination, and other employment issues.

Personal Injury Cases: What is a statute of limitations? It is a legal doctrine that requires you to start a lawsuit against the person who has injured you within a certain period of time after you have been injured. In most cases, the statute of limitations requires that the suit be started no later than two years from the date of your injury. In some cases, the period may be extended to three years from the date of your injury. If you do not start a lawsuit within the required time period, your right to do so is barred.

Rules concerning the statute of limitations are construed very strictly. If you have been injured, please contact us immediately. An important part of our responsibility is to assure that your lawsuit is started before the statute of limitations expires.

Medicaid planning: New rules concerning continuing care retirement communities: In most instances the equity in a home owned by husband and wife is an “excluded asset” for Medicaid eligibility purposes. However, if husband and wife sell their home and use the proceeds as an entrance fee to a continuing care retirement community, new rules say that in most instances the entrance fee no longer is an “excluded asset”, but, rather, now is an “available asset”. The change is the combined result of the 2005 Deficit Reduction Act (effective as of February 8, 2006) and proposed changes to the Connecticut Uniform Policy Manual (“UPM”). The UPM is the Manual used to administer the Connecticut Medicaid program.

Please contact our office immediately if you are considering a move to a continuing care retirement community. We may be able to negotiate language in the entrance agreement that will avoid this harsh result.

Estate planning: What is the status of estate planning for same sex couples?

Public Act 09-13 was recently passed by the Connecticut Legislature and signed by Governor Jodi Rell.  This Public Act changes the legal definition of “marriage” in Connecticut to mean the legal union of two persons.  Connecticut previously defined marriage as the union of a man and a woman.  This Public Act also transforms existing civil unions into marriages as of October 1, 2010, unless the civil union has been previously annulled or dissolved, or is in the process of dissolution.

If you have questions regarding this new Public Act or would like to learn more about estate planning for same sex couples, we would be pleased to meet with you, discuss your questions and address your specific family circumstances.

Real estate transactions: What is owner’s title insurance and why do I need it? When you purchase a home, your lender will insist that you have a title insurance policy for the amount of your mortgage loan. It is important that you also have coverage to insure your ownership interest. There are many potential defects in title that simply cannot be discovered, even with a careful title search. A few examples include forged deeds, unreleased mortgages or other liens, claims by Indian nations, and transfers by persons without legal capacity. For a modest price, an owner’s title insurance policy will give you coverage for any such title defects.

We would be pleased to answer your questions about title insurance or any other aspects of your home purchase.

Business entities: What is a Severance Agreement? In the absence of a contract that obligates an employer to provide benefits beyond COBRA health coverage to a terminated employee, there is no legal obligation for most employers to do so. Nevertheless, many employers voluntarily choose to offer an employee a severance package upon the termination of the employee’s employment. In order to receive the benefits offered by the employer, the employee will be asked to sign a Severance Agreement, sometimes referred to as a Separation Agreement or a Termination Agreement. Such Agreements typically state that the employee’s acceptance of the benefits provided in the Severance Agreement constitutes a waiver of most claims the employee may have against the employer. The specific terms of a Severance Agreement are very important and should be carefully reviewed by both employer and employee.

Whether you are an employer or an employee, we can prepare and/or review a Severance Agreement that protects your interests.

We hope you have found this newsletter informative and helpful. Please do not hesitate to call us if you, a family member, friend, or colleague requires legal services in any of the practice areas handled in our office. As always, we are here to serve our past and present clients, and we also welcome new referrals.

Very truly yours,

SPF/jm                                                                       STEVEN P. FLOMAN