MA RMV Sticks It To Consumers Again

Another reason the average MA driver has to dislike the Registry of Motor Vehicles:
Registrar of Motor Vehicles, Celia J. Blue, just announced she will not reverse her decision to charge $25 for an updated registration on every car that changes insurance companies despite strong opposition from consumer and insurance agent groups against the abusive fee.
The RMV just raised fees on almost every transaction earlier this year and now they’ve added insult to injury by ramming another fee onto drivers. Ms Blue stated that to not charge the fee would reduce revenue to the RMV. This is another example of the Patrick administrations complete disregard for the taxpayers of MA. As long as he can keep spending more on government every year, he’ll be as happy as a pig in mud.
The only way this will ever be reversed is if you contact your state representative and complain. Post your thoughts on their Facebook pages and send them emails….it will make a difference.

MA Department of Revenue Tax Grab

In December 2013, a new $5 surcharge was added to the fine for civil motor vehicle infractions (CMVIs) that are from Chapters 89 and 90 of the Massachusetts General Laws. CMVIs are violations that are non-criminal, such as speeding or not obeying traffic signs.

Included below is a list of the moving violations under Chapters 89 and 90 that are surchargeable under merit rating and will also be impacted by this surcharge:

Major Traffic Violations
OUI while license suspended for OUI M.G.L. c. 90, s. 23
Child endangerment while OUI M.G.L. c. 90, s. 24V
Permit unlicensed suspended operation of MV M.G.L. c. 90, s. 12(b)
Permit operation without ignition interlock M.G.L. c. 90, s. 12(c)
Operate without ignition interlock M.G.L. c. 90, s. 24S(a)
Tamper with ignition interlock M.G.L. c 90, s. 24T(a)
Bypass ignition interlock for another M.G.L. c. 90, s. 24U(a)(1)

Minor Traffic Violations
Accident, hit and run M.G.L. c. 90, s. 24
Allowing vehicle to stand unattended, motor running M.G.L. c. 90, s. 13
Anything on or in vehicle or on person interferes with operation M.G.L. c. 90, s. 13
Attempting a speed record M.G.L. c. 90, s. 13
Blind pedestrians, must stop for M.G.L. c. 90, s. 14A
Brakes, operating without M.G.L. c. 90, s. 7
Crosswalk, motor vehicle not to enter if his car will block it M.G.L. c. 89, s. 11 Crosswalk, operator yield to pedestrian M.G. L. c. 89, s. 11Directional signals, devices required M.G.L. c. 90, s. 7
Directional signals, hand or mechanical required for lane change M.G.L. c. 90, s. 14B
Drag racing, speeding M.G.L. c. 90, s. 17B
Driving in “breakdown lane” M.G.L. c. 89, s. 4B
Driving within eight feet of street car stopped for passengers M.G.L. c. 90, s. 14
Emergency vehicles, right of way M.G.L. c. 89, s. 7
Exhibit another license M.G.L. c. 90, s. 23
Failure to ascertain if it is safe to change lanes M.G.L. c. 89, s. 4A
Failure to keep to the right when turning right M.G.L. c. 90, s. 14
Failure to keep to the far left when turning on a one/two way street M.G.L. c. 90, s. 14
Failure to fasten a trailer to a tow vehicle with proper safety chains M.G.L. c. 90, s. 7
Failure to give proper stopping or turning signals M.G.L. c. 90, s. 14
Failure to keep in right lane M.G.L. c. 89, s. 4B
Failure to keep to right when view is obstructed up to 400 feet M.G.L. c. 89, s. 4
Failure to stop at sign or signal at intersection M.G.L. c. 89, s. 9
Failure to use child restraint M.G.L. c. 90, s. 7AA
Fire apparatus, driving within 300 feet if going to a fire M.G.L. c. 89, s. 7A
Fire apparatus, failing to pull to right and stop M.G.L. c. 89, s. 7A
Fire Department, interfering with M.G.L. c. 89, s. 7A
Flashing red traffic signal, failure to stop M.G.L. c. 89, s. 9
Hand signals, failure to give M.G.L. c. 90, s. 14B
Headlights, dimming from high beam M.G.L. c. 90, s. 31
Headlights, one half hour after sunset M.G.L. c. 90, s. 7
Headphones, wearing while operating M.G.L. c. 90, s. 13
Height, operating vehicle when elevated or lowered M.G.L. c. 90, s. 7P
Hit and run, person injured M.G.L. c. 90, s. 24
Hit and run, property damage M.G.L. c. 90, s. 24
Horn, operating without M.G.L. c. 90, s. 7
Ignition key, remove from unattended vehicle M.G.L. c. 90, s. 13
Improper passing M.G.L. c. 89, s. 1
Inspection sticker, failure to display M.G.L. c. 90, s. 20
Inspection sticker, operating without M.G.L. c. 90, s. 7A and M.G.L. c. 90, s. 20
Intersecting way, slow down when approaching M.G.L. c. 90, s. 14
Junior operator’s license, operating in violation of M.G.L. c. 90, s. 8
Learner’s permit, motorcycle, violation of M.G.L. c. 90, s. 8B
Learner’s permit, operating in violation of M.G.L. c. 90, s. 8B
License, Class 1-2-3 M.G.L. c. 90, s. 8A
License, operating when not properly licensed M.G.L. c. 90, s. 10
License, violation of restriction M.G.L. c. 90, s. 8
Lights, operating motor vehicle with improper lights M.G.L. c. 90, s.s. 7 & 16
Making a turn from the wrong lane of traffic M.G.L. c. 90, s. 14
Making a right turn on a red light where prohibited M.G.L. c. 89, s. 8
Meeting other vehicles, exercise due care when M.G.L. c. 89, s. 1
Mirrors and reflectors, operating without proper M.G.L. c. 90, s. 7
Motorcycle, operating without proper equipment, lights and headgear M.G.L. c. 90, s. 7
Motorcycle, no more than two abreast M.G.L. c. 89, s. 4A
Motorcycle, no passenger unless machine so designed M.G.L. c. 90, s. 13
Motorcycle, single file when passing M.G.L. c. 89, s. 4A
Negligently operating M.G.L. c. 90, s. 24
Not reasonably to right for vehicle approaching from the opposite direction M.G.L. c. 89, s. 1
Noise, offensive, unreasonable (squealing tires) M.G.L. c. 90, s. 16
Not slowing and keeping right of center on approaching intersection or corner where view is obstructed M.G.L. c. 90, s. 14
Not yielding to oncoming vehicles when making a left turn M.G.L. c. 90, s. 14
Obstructing emergency vehicle M.G.L. c. 89, s. 7
One way street M.G.L. c. 89, s. 10
One way street, left turn from M.G.L. c. 90, s. 14
Operating after suspension or revocation of registration M.G.L. c. 90, s. 23
Operating on a bet or wager M.G.L. c. 90, s. 24
Operating car not properly registered M.G.L. c. 90, s. 9
Operating in violation of license restrictions M.G.L. c. 90, s. 8
Operating at speed greater than reasonable or proper M.G.L. c. 90, s. 17
Operating, motorcycle without permanent seat M.G.L. c. 90, s. 13
Operating motor vehicle without liability policy M.G.L. c. 90, s. 34J
Operating, no driving on sidewalks M.G.L. c. 89, s. 1
Operating, obey traffic signs, signals, markings M.G.L. c. 90, s. 18
Operating on ways divided into lanes M.G.L. c. 89, s. 4A
Operating through peekhole in snow on windshield M.G.L. c. 90, s. 13
Operating unregistered car M.G.L. c. 90, s. 9
Operating without proper mirrors and reflectors M.G.L. c. 90, s. 7
Operator not to obstruct passing vehicle M.G.L. c. 89, s. 2
Parking lights M.G.L. c. 90, s. 7
Passing vehicle stopped for a pedestrian in a crosswalk M.G.L. c. 89, s. 1
Passing bicycles, slow down M.G.L. c. 90, s. 14
Passing, commercial vehicles, excess 21/2 tons (except busses) use right lane pass in adjacent lane M.G.L. c. 89, s. 4C
Passing, don’t obstruct passer M.G.L. c. 89, s. 2
Passing horses, use care M.G.L. c. 90, s. 14
Passing on right, unless vehicle being passed is (a) making a left turn, (b) on one way street, (c) on a divided highway c. 89, s. 2
Passing school bus when flashers are on M.G.L. c. 90, s. 14
Passing vehicle forbidden if view is obstructed for less than 400 feet M.G.L. c. 89, s. 4
Pedestrian, must slow down for M.G.L. c. 90, s. 14
Permitting operation by a person who has no legal right M.G.L. c. 90, s. 12
Racing M.G.L. c. 90, s. 24
Railroad crossing, failure to slow down M.G.L. c. 90, s. 15
Railroad crossing, failure to stop while lights are flashing or gate lowered M.G.L. c. 90, s. 15
Rear lights, must have M.G.L. c. 85, s. 15
Rear lights, operating without M.G.L. c. 90, s. 7
Red flag or light, rear of load M.G.L. c. 90, s. 7
Red flashing signal, stop M.G.L. c. 89, s. 9
Right of way, fire engines, patrol wagons, ambulances M.G.L. c. 89, s. 7
Right of way, pedestrian in a crosswalk M.G.L. c. 89, s. 11
Safety glass, operating or permitting operation without M.G.L. c. 90, s. 9A
School bus, drivers responsibilities M.G.L. c. 90, s. 7B
School bus, railroad crossing, must stop and open door M.G.L. c. 90, s. 15
School bus, speed limited M.G.L. c. 90, s. 17
School zone, speed limit M.G.L. c. 90, s. 17
Siren law M.G.L. c. 90, s. 16
Slow down to pass pedestrian M.G.L. c. 90, s. 14
Slow moving vehicles, keep right on upgrade M.G.L. c. 89, s. 4
Speed at railroad crossings M.G.L. c. 90, s. 15
Speed, bridges M.G.L. c. 85, s. 20
Speed, certain vehicles to operate five m.p.h. below speed posted M.G.L. c. 90, s. 17
Speed, decrease for special hazards (pedestrians, traffic, weather) M.G.L. c. 90, s. 17
Speed, failure to regulate when men and equipment are on road M.G.L. c. 90, s. 17
Speed, faster than posted M.G.L. c. 90, s. 17 and M.G.L. c. 90, s. 18
Speed, greater than reasonable and proper M.G.L. c. 90, s. 17
Speed limit 15 m.p.h. near vehicle peddling merchandise, when flashing lights M.G.L. c. 90, s. 17
Speed limits, thickly settled district, school zone M.G.L. c. 90, s. 17
Speed, special regulations M.G.L. c. 90, s. 18
Speed, school bus M.G.L. c. 90, s. 17
Stolen car, operating M.G.L. c. 90, s. 24
Stop before passing school bus M.G.L. c. 90, s. 14
Stop signs M.G.L. c. 89, s. 9
Street car, care in passing M.G.L. c. 90, s. 14
Street car, eight foot stopping law M.G.L. c. 90, s. 14
Television in operator’s view M.G.L. c. 90, s. 13
Throughways, right of way M.G.L. c. 89, s. 9
Tires too wide M.G.L. c. 90, s. 19
Traffic signals, flashing red is same as stop sign M.G.L. c. 89, s. 9
Tread depth, tires M.G.L. c. 90, s. 7Q
Turning improperly M.G.L. c. 90, s. 14
Unattended vehicle, stop engine, set brakes, remove key from switch and from vehicle M.G.L. c. 90, s. 13
Vehicles excluded area, operating or permitting one’s vehicle to be operated where posted M.G.L. c. 90, s. 16

Planning for Non-Traditional Couples

Non-traditional couples (NT) are defined as opposite sex couples that are not married and same sex couples (married or not). If you fall into either of these categories, you have advantages and (mostly) disadvantages as compared to traditional couples when dealing with tax and financial issues. We’ll highlight a few examples of each:

1. Federal tax code does not recognize NTcouples as a family and therefor does not allow assets to pass  tax-free to the surviving partner upon death of the other…estate taxes will apply.

2. Asset transfers from one partner to the other are subject to gift tax and lifetime gift exclusion rules.

3. Since partners are not related in the eyes of the tax code, one partner can sell assets to the other at a loss and use the loss for tax purposes (one of the few benefits you have over traditional couples).

4. Exclusion on Sale of Residence of $250,000 for an individual and $500,000 for a couple is restricted to just one exclusion ($250,000).

5. Passive Loss Limitation rules apply separately to each partner (one of the few bonuses for NT couples).

6. COBRA premium subsidy. If both partners are insured under a group policy at a company only one of the partners work at, the other partner is not a “qualified beneficiary” under the definition of the act and therefor not eligible.

7. Social Security. Don’t even ask.

8. Qualified Domestic Relations Order. If the NT couple split up and retirement plan benefits are included in the QDRO, an employer is under no obligation to follow the order since The Defense Of Marriage Act prohibits the recognition of same-sex marriage.

9. Property transfers between spouses/domestic partners. If a traditional marriage ends, any gains in value of property transferred between spouses to settle the divorce are not taxed. NT couples will pay tax on any gain over the cost basis of transferred property.

These are just a few of the financial and tax issues a NT couple faces which traditional couples don’t. Luckily there is a way to solve many of these problems using insurance or trusts. The most common trusts to use are:
-Grantor Retained Income Trusts
-Charitable Remainder Trusts
-Wealth Replacement Trusts
-Charitable Lead Trusts

The problem with trusts are that they cost money to create and maintain and the rules regarding trusts seem to change constantly. Life insurance is one of the best ways to transfer assets at death of one of the partners of a  NT couple and keep those assets from being taxed. Life insurance (with a Long-Term-Care rider) can also  make sure each partner has funding for nursing home or home health care available without worrying about bankrupting the other partner.

These are complex issues that every NT couple should deal with…earlier rather than later!