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H

Hague Convention

Trusts are a creature of the common law.  However, civil law jurisdictions have shown an interest in recognizing trusts.  A law permitting same is the Hague Convention Relative to the Law Applicable to Trusts of 1985.

H-H-H-A-R-P

Home health – Homemaker services – Hospice – Adult day care – Respite care – Personal care.

Levels of home health care.

Hanging Powers

The lapse of a Crummey withdrawal power in excess of $5,000 or 5 percent of the trust assets, whichever is greater, can cause the power holder to be treated as having made a transfer to the trust for tax purposes. To prevent a lapse of a general power in excess of the so-called five-and-five limits of Code § 2514(e), many planners use a “hanging” power. With a hanging power, the excess amount does not lapse; rather, the power holder maintains a continuing right to exercise the general power of appointment over the excess amount. If the life insurance policy in the ILIT reaches a point at which no more premiums are due and no additional contributions are made to the trust, the “hanging” amount can begin to lapse at the greater of $5,000 or 5 percent of the trust assets subject to the power until no amount is left hanging.

Hazard

Any factor that  gives rise to peril.  Generally 3 types: Moral Hazard, Morale Hazard, and Physical Hazard.

HCB

Home & Community Based Care.

HCBS

Home & Community-Based Services.

HCFA

Health Care Financing Administration.

HCPOA

Health Care Power Of Attorney.

HDHP

High-Deductible Health Plan.

HeA

Health-e-App.

An easy to use, interactive, online application for government sponsored health plans, like Healthy Families Program.

Heath Care Proxy

See Durable Power Of Attorney.

Health Maintenance Organization

An HMO essentially functions as an insurance company.  It collects premiums and benefits are paid for coverage.  Of MCOs today, only HMOs must comply with the same capital and solvency standards that insurers must.  Covers physician services, hospitalization, laboratory costs, x-ray costs, emergency room costs, preventive care, and out-of-area coverage.  Supplemental coverage for physical therapy, drugs, medical equipment, chiropractic, dental, optical, are optional.

Health Reimbursement Accounts

An employer funded program where “health reimbursement accounts” or “personal care accounts” are associated with a Health Care Plan.  An HRA is a type of employer group health care plan that reimburses employees for qualified medical expenses..

Health Savings Account

HSAs are available to those who enroll in HDHPs.  Funds contributed to the HSA are tax deferred.  The HSA belongs to the employee.  Unused funds automatically rollover.  Contributions are limited each year.  Those over 55 years may put in more to “catch up.”  Qualified expenses are tax free; though OTC drugs are not included.  Withdrawals for not covered expenses are subject to penalties.

Heckerling Institute on Estate Planning

Phillip E. Heckerling Institute on Estate Planning is a part of the University of Miami School of Law.  It is the nation’s leading conference for estate planning professionals.  The program is designed for sophisticated attorneys, trust officers, accountants, insurance advisors, and wealth management professionals who are familiar with the principles of estate planning.

HECM

Home Equity Conversion Mortgage (Reverse Mortgage).

Run by FHA.  More information may be had from National Council on Aging at (800) 510-0301. 

HEET

Healthy & Education Exclusion Trust.

Heir(s)

Any person who is entitled by law to inherit real estate absent contrary provisions in a valid will, and any person or entity named in a valid will.  See Next of Kin.  In modern usage an heir is one who may, or does, inherit real or personal property from either intestate or testate.

Heir in Law

Any person who is entitled by the laws of intestate succession to inherit.

HEM

Heath, Education and Maintenance

HEMS

Health, Education, Maintenance and Support.

Hendrix v. Commissioner, T. C. Memo, 2011-133.

An opinion issued by the Tax Court which approved transfers with “defined value” formula provisions to limit gift tax exposure from the transfers.  The court concluded that a transfer of closely held stock in a gift/sale transaction to family trusts and gift to a Foundation under coordinated formula provisions was at arm’s length and was not contrary to public policy. This is now the fourth case that has upheld defined value transfer provisions (the other cases being McCord, Christiansen, and Petter).

HFCA

Health Care Financing Administration.

HFP

Healthy Families Program.

HFS

Healthcare and Family Services (Illinois).

HHG&F

HouseHold Goods & Furnishings.

HHSA

Health and Human Services Agency.

HICAP

Health Insurance Counseling and Advocacy Program. 

To make an appointment with a HICAP counselor in your county, call (800) 434-0222.  Service is available for those on Medi-Cal.

HICFA

Health Care Financing Administration.

HIPAA

Health Insurance Portability and Accountability Act of 1996.

HIPP

Health Insurance Premium Payment.

HIRE

Hiring Incentives to Restore Employment Act.

HMO

Health Maintenance Organization.

Types:

Group Model: HMO does not employ doctors directly, but contracts with a multi-specialty physician group practice.

Network Model: Like Group Model but HMO contracts with two or more medical physician groups, rather than just one.

Staff Model: the doctors are salaried and have offices in HMO buildings.  Doctors are employees of the HMO  This is closed panel, i.e., doctors do not see non-member patients.

HNW

High-Net-Worth.

HOA

Home Owner Association.

Holography Will

A will in which the signature and all of the material provisions are in the handwriting of the person making the will.  Not valid in majority of states.

Homestead

A certain amount of property, usually a residence, which is exempt from the claims of creditors.

Honorary Trust

Name given to trusts for non-charitable purposes without a definite human beneficiary.   An example would be a trust benefiting a pet.

Hospital Income / Hospital Confinement Indemnity

Type of insurance policy which pays a stated amount of income per day (or weekly or monthly) based upon the number of days the insured is hospitalized.  It does NOT pay hospital or medical expenses.

Hotchpot

A mathematical procedure used to take account of an advancement when distributing an intestate’s estate.

HRA

Health Reimbursement Account.

HS

Health Services.  Human Services.

HSA

Health Savings Account.

HSC

Handgun Safety Certificate.

HSS

In Home Supportive Services.

HUD

Housing and Urban Development.

Hybrid Agreement

Also called a two-tier buy-sell agreement.  A type of buy-sell agreement in which the individual equity owners and the business itself has rights, duties, and/or obligations within the same agreement to acquire the interest of a deceased, disabled, or retired owner.