Elder Law

Monday, March 05, 2012

Are you getting all of your benefits?

Check out this web site we came across, www.benefitscheckup.org. It's a wonderful site that allows adults ages 55 and over to check and see if there are any federal, state or local benefits that they may be qualified for but not receiving. 

According to the web site, "Many adults over 55 need help paying for prescription drugs, health care, utilities, and other basic needs. There are over 2,000 federal, state and private benefits programs available to help. But many people don’t know these programs exist or how they can apply." Take 15-20 minutes on this web site and let it find unused benefits for you.

We hope this helps!

Friday, February 10, 2012

Do You Need Long-Term Care Insurance?

Monday, January 30, 2012

Gifting the House For $1: Good Idea or Not?

Sunday, January 22, 2012

Caution: Do-It-Yourself Wills

Is it a good idea to write your own will? I can’t answer that question without being somewhat biased, because as an attorney, I know that there are complex and unique issues that each family and individual faces. Therefore, it does concern me when I hear of someone writing his or her own will without an attorney’s help.

My mission as an attorney is to build a long-term relationship with each client and provide superior service to him or her. The stack of paper in a binder or folder that I eventually hand to my clients is not what they find valuable. They just find it heavy! So the question is, where is the value in working with an attorney on my estate plan? My clients tell me that they find value knowing that they have a trusted legal advisor that has taken the time to learn about their needs, their goals, and the unique aspects of their lives. Unique lives translate into unique estate plans.

When I hear about do-it-yourself estate planning, I can’t help but get nervous for the folks that use those products. Here’s what concerns me about folks writing their own will:

1. Failure to protect your assets: As an attorney, I always talk to my clients about their kids and grandkids, and I make sure that an asset protection plan is put in place. I want to make sure the client’s kids or grandkids are protected from themselves and others, including their creditors, spouses (or ex-spouses), business partners, legal judgments, etc. I can assure you that you cannot design a one-size fits all form for an asset protection plan, which is more important than ever today.
    
2. Failure to create an asset preservation plan: A will and power of attorney is important but only the start for many estate plans. A major concern for retirees and people close to retiring is making sure an asset preservation plan is crafted, so that if you go into a nursing home, the house will be safe and some assets will also be safe from Medicaid spend down.
    
3. False sense of protection: Doing it yourself and convincing yourself you only need the “simple will” may give you a false sense of protection, when in fact your situation is more complex. By complex, I mean things like second marriages, kids with financial issues, real estate under water, uncertain financial future, family conflicts, etc. I can assure you that these types of issues won’t go away when you pass on—in fact, our experience shows they only magnify if they’re not dealt with while you’re still here.
    
4. Legal issues and problems with the documents: Let’s be honest, you don’t know what you don’t know when it comes to estate planning. Work with a trusted advisor that knows what you need. Would you pull your own tooth? Do surgery on yourself? Estate planning and asset preservation is best done with the help of a professional.

Are you going to spend more money on an estate plan with an attorney? Yes. But do you really want the “cheapest” plan? Worse, are you making matters more complex by doing it yourself and saving a few bucks?

I make my living by being passionate about helping families deal with their estate planning goals, fears and hopes to ensure they leave a legacy they can be proud of, no matter what happens and when it happens. Think about estate planning as saving your family time, money, aggravation, conflict, and from your estate being unnecessarily spent down on long-term care. Then, the real value of working with a professional will be realized.  

Monday, January 16, 2012

Social Security For Spouses

Social Security benefits can be complex, and our article this week shows you why. If you need assistance with planning for Social Security, please contact our office.

Social Security doesn't just pay retirement benefits to retired workers; in some circumstances, it also provides benefits to a worker's spouse or ex-spouse and to a deceased worker's surviving spouse. Here are the ins and outs of spouse and survivor benefits.

SPOUSAL BENEFITS
Spouses are entitled to benefits if the marriage lasted at least 10 years. A spouse is entitled to an amount equal to one-half of the worker's full retirement benefit. To receive this benefit, you must be at your full retirement age or caring for a child who is under 16 years old. In addition, your spouse must have filed for Social Security retirement benefits even if he or she isn't receiving them.

If you could receive more from Social Security based on your own earnings record than through the spousal benefit, the Social Security Administration will automatically provide you with the larger benefit. If you have reached your full retirement age, you may also elect to receive spousal benefits and delay taking your benefits, allowing your own delayed retirement credits to accrue, and switch to your own benefit at a later date. However, you cannot elect to receive spousal benefits below your retirement age and later switch to your own benefits.

If you begin collecting your spousal benefit before your full retirement age, your spousal benefit will be permanently reduced.  But if your spouse retires early, but you wait until your full retirement age, you will still receive benefits based on one-half of his or her full retirement benefit.

DIVORCED SPOUSES
An ex-spouse is also entitled to receive one half of the worker's full retirement benefit as long as the marriage lasted at least 10 years. Unlike a current spouse, a divorced spouse can begin receiving benefits even before the worker has applied for benefits. The worker must be at least 62 years old and the divorce must have been final for at least two years.

SURVIVOR BENEFITS
If you are a surviving spouse at full retirement age, you are entitled to the worker's full retirement benefits. If the worker delayed retirement, the survivor's benefit will be higher. Survivors are entitled to benefits even if they are divorced as long as they had been married for at least 10 years. If you file for benefits before you are over age 60, but below full retirement age, you will receive a reduced percentage of the worker's benefits. Surviving spouses who are younger than 60 receive benefits only in limited circumstances, such as cases of disability or caring for a disabled child.

Tuesday, December 06, 2011

Asset Preservation: Your HOME

Preserving your assets is possible even if you are about to enter into a nursing home. But the worst thing you can do is wait until you're no longer healthy to start planning. Instead, start planning while you are healthy!

Like most people, if you own a home, typically that's your greatest concern when you sit down to consider what assets are most in need of protection.

Consider an example: Jon and Mary, both 68, own a $250,000 home. They have two children. Neither has long-term care insurance. Jon's health is a source of concern, but his doctors are confident that based on current information, he will not need long-term care for at least another 7-10 years. This presents a great opportunity to plan in advance.

With our customized Nursing Home Protection+ Account solution, we can protect Jon and Mary's home from ever being taken if Jon goes into a nursing home. Even better, when Jon and Mary both pass on, the house won't be subject to estate recovery. In other words, their two children will be able to inherit the house, even if Medicaid wants to re-coup their costs by taking the house. 

This type of asset preservation requires special skills and must be done carefully after considering many factors.

If you're interested in this type of planning, please contact our office today. 

Monday, November 28, 2011

Evaluate Your Estate Plan

Monday, October 31, 2011

Nursing Home Costs - Rising Fast?

MetLife recently released their Market Survey of Long-Term Care Costs for 2011, and the statistics do not bode well for seniors and those that need long-term care. 

A few statistics from the report that you should know about:

• The average cost of a nursing home (private room) across the USA increased 4.4%, from $229 per day to $239 per day.
   
• On average across the country, a semi-private room costs $78,110 per year, and a private room costs $87,235 per year.
   
• In Philadelphia, the average costs are higher. The average private room costs $285 per day, with the high being $325 per day. At the average, the cost per year is $104,025 and at the high, the cost per year is $118,625. Ouch.
   
• Assisted Living Facilities: On average, they cost $3,477 per month, an increase of $184 or 5.6% from 2010. 
   
• Home Health Care: Average hourly rate is $21, and the daily rate for Adult Day Services is $70.

We continue to point out to our clients that long-term care costs are rising, probably faster than inflation. If you have concerns about long-term care costs, you should speak with an elder law attorney who can help your family plan craft a plan for preserving part of your estate in case long-term care is needed. Elder law professionals have a variety of tools available, such as long-term care insurance, trusts, sophisticated gifting strategies, and more.

Monday, October 17, 2011

CLASS Dismissed

Last week, the Obama administration formally shut down the CLASS Program, part of the Affordable Care Act (Obamacare). CLASS would establish a long-term care insurance program that individuals could pay into and then receive a daily benefit if they needed long term care.

But, the experts figured out that not enough people would sign up for the voluntary program. Thus, it would end up becoming insolvent, adding to the deficit and costing taxpayers.

Insolvent? Adding to the deficit? Costing taxpayers a lot? Sounds like Medicaid, Medicare and other entitlement programs!

Our political leaders just can’t seem to find a way around the problem of ballooning long-term care expenses. Meanwhile, a nursing home costs approximately $8,000 per month and at least 33% of people will spend on average 3 years in a nursing home during their lives. Do the math, and that adds up to almost $300,000.

Yes, Medicaid will cover the cost of nursing home care, but only when you have nothing left. The CLASS program aimed to fix this problem, but it was a failure.

Monday, September 19, 2011

Five Myths About "Living Trusts"

Is the Revocable Living Trust, sometimes just called a Living Trust, the ultimate estate planning tool? It depends who you ask, and what state you’re in.

In Pennsylvania, Living Trusts aren’t used commonly as an estate planning tool. Instead, practitioners in Pennsylvania, as well as clients, tend to favor Wills as the fundamental estate planning tool.

Here are five myths about Living Trusts in Pennsylvania:

Myth #1: Living Trusts save, reduce or avoid taxes:
A Living Trust is NOT a tax reduction or avoidance strategy. You simply cannot avoid estate or inheritance taxes by using a living trust. It used to be that more people were effected by the federal estate tax, and that married couples could reduce their estate tax by using credit shelter trusts. But you could do the same thing in a Will!

Myth #2: They prevent estate challenges:
A Will is easier to challenge than a Living Trust, because a Will is probated and is public. However, just because a Living Trust isn’t probated, doesn’t mean it can’t be challenged in court. It just takes a little more time, effort and money to do so.

Myth #3: They avoid probate because probate should be avoided:
Pennsylvania probate is pretty simple, and a run-of-the-mill estate can be probated by the Executor him or herself without the help of an attorney. So probate shouldn't necessarily be avoided at all costs and you shouldn't be scared of probate in PA. Yes, living trusts avoid probate, but your living trust must be 100% funded with ALL of your stuff to do that! Even missing ONE small bank account means your loved ones will have to go through probate. Anyway, probate is not a big deal in Pennsylvania, unlike in other states such as California (yes, living trusts are popular there because probate is a COURT supervised process!).

Myth #4: A Living Trust will make things easier at the end of my life:
Not really… It is probably takes just as much work to probate the will, settle the estate, etc., as it does to manage an ongoing trust. Trusts need to comply with many rules, tax returns must be filed annually for trusts, and more. A living trust will usually require the help and services of a professional.

Myth #5: I need a living trust to shelter assets from nursing home costs:
A living trust would NOT be a good tool to use if you want to shelter some of your assets from being spent down by nursing homes. You need to use a Medicaid Asset Protection Trust, which is IRREVOCABLE, and establish and fund this trust when you’re still healthy. A living trust used in a situation like this would be a disservice to you and your family.

LIVING TRUSTS MAKE SENSE IN SOME SITUATIONS, BUT NOT ALL SITUATIONS.  Estate planning is an individual process that's unique for everyone. A qualified attorney can help guide you to what estate planning tools you need.

Want more information on what estate planning tools make sense for you? Call us today at (215) 706-0200 to schedule your complimentary visit.

Wednesday, September 07, 2011

Fall 2011 Estate Planning Essentials

Our blog entry this week focuses on five topics that have been hot button issues for clients over the last few months. Estate planning continues to evolve and therefore, we must continue to “think different."

Estate Planning in General: Estate planning today isn’t what it was 5 or 10 years ago. For most families that I see today, saving estate tax dollars is not an objective, because there are simply no taxes to begin with! But just because the tax problem went away (at least for the time being) doesn’t mean you shouldn’t plan. Our clients come to us to make sure their kids and grandkids will be taken care of properly, and that their estate is setup and optimized properly to achieve those goals. In other words, there are many more reasons to engage in estate planning than simply to save taxes.

Powers of Attorney: To put it bluntly, we are living longer. A Will by itself won’t suffice anymore. A Will is a death document, and only kicks in upon your passing. As we live longer, we have more time where we may be incapacitated or incompetent to make decisions. Therefore, powers of attorney, appointing someone to take over your affairs, continue to become more essential.

Long-Term Care: Long-term care costs are rising. See last week's blog entry on the latest average costs in Pennsylvania for long-term care. It is essential that middle class families plan for long-term care costs. There are strategies that can be employed to save at least part of your estate from costs that could ravage your estate.

Non-Probate Assets: More and more, people are acquiring assets that don’t pass their Will, such as IRA’s, 401(k)’s, life insurance, and annuities. In general, any asset with a beneficiary designation form avoids the Will and avoids probate. But it doesn’t mean you shouldn’t plan or protect those assets with trusts or other devices, and it doesn’t mean you should ignore them when planning your Will and estate.

Gifting: 2011 and 2012 present great opportunities to make large gifts without incurring gift taxes. You can optimize your estate plan and take care of your kids or grandkids with life insurance, pensions for life, and other great tools. Gifting may be more limited come 2013, so now is the time to act.

Fall is typically our busiest time for estate planning. Make your appointment now and reserve some time with me today if you want to optimize your estate plan. Call my office today at (215) 706-0200 or schedule an appointment online on our web site.

Monday, August 29, 2011

Long Term Care Costs

Most people know that it’s crucial to plan for retirement. It used to be the case that saving about $1 Million would cover a typical couple, but that number seems to be ticking up rapidly. Retirement planning is a specialty, and you should see a qualified retirement planning professional.

But in addition to retirement, what many people don’t consider is the cost of long-term care, if needed, for you and/or your spouse.

Consider Genworth Financial’s annual facts and figures on the costs of long-term care:

• Assisted Living Facility (One Bedroom) $36,000 per year
• Nursing home – Private room – $97,000 per year
  
• Home Health Aide - $46,000 per year.
  

Note that these are the average costs for 2011. The costs vary depending on the provider and your needs. Also, long-term care costs increase every year, and the increases are usually significant. So not only must you plan for long-term care, you must include inflation when factoring the costs.

You have to consider your family’s health history, your health history, the amount of assets you have, and other factors when planning for long-term care. There are different planning opportunities available to preserve at least a portion of your estate and qualifying for Medicaid sooner. However, these strategies are only available to those that start planning at least five years ahead of time. But it’s hard to predict when you’ll go into a nursing home. There are strategies available for “crisis planning” but the biggest problem with waiting until there is a crisis is that what we can do today, we may not be able to do tomorrow. The laws are constantly changing for Medicaid, especially since it’s a joint federal-state program.

The bottom line is that planning for long-term care costs while you’re still healthy is advantageous for you and your family. 

Monday, August 01, 2011

Estate Recovery and Medicaid

What is Medicaid?

Medicaid is a joint state-federal entitlement program that serves several purposes, one of them being paying for the long term care (nursing home, etc.) of elderly who cannot afford such care. In Pennsylvania, Medicaid is called Medical Assistance (MA). Nursing homes cost anywhere from $80,000 to over $100,000 per year depending on the facility.

It is more difficult to qualify for Medicaid today due to the five year look-back period. You cannot make transfers or gift away your estate within five years of applying for Medicaid, otherwise a penalty period will occur that will prevent you from receiving Medicaid for a certain period of time.

Yet still, there are strategies and methods available to middle-class families to effectively qualify for Medicaid without entirely spending down an estate.

What is Estate Recovery?

Estate Recovery is the process of the state attempting to recover the cost of paying for long term care. After a person dies, if there are assets available in that person’s probate estate, the state could potentially seek recovery from those funds.

Pennsylvania has been one of the states that has limited the scope of estate recovery. If you’re married, jointly owned property (i.e., a house) with your spouse was not subject to estate recovery. Yet, federal laws allow Pennsylvania to recover from joint assets like real estate. Pennsylvania resisted putting in place a more expansive estate recovery law with such provisions.

But, state budgets are still hurting, and states across the nation are looking at ways to make cuts. One possible way to bring in more money is to expand estate recovery. In fact, the Pennsylvania legislature recently passed a law allowing the Department of Public Welfare, the agency that oversees the PA Medical Assistance program, to impose new regulations such as more stringent estate recovery rules without any oversight. If new regulations such as expanded estate recovery were to be imposed, it could cause problems for many people. We will keep you updated on the matter. Right now, there are many attorneys across the state working together to urge the governor and legislature to repeal the law granting the agency expansive powers.

How Should You Plan For Long Term Care?

It is important that you speak with a qualified attorney who can help you plan for long term care costs. There are many strategies and techniques an attorney can employ, depending on you situation and your goals. The earlier you begin planning, the better.

Monday, June 27, 2011

Elder Abuse and Predatory Marriages

• Hire only someone who consents to a background check
• Hire a professional to keep tabs on the individual caregiver
• Stay in touch with your parent regularly if possible, even if you are not local

Monday, May 23, 2011

Financial Power of Attorney Check-Up

We caught a great article in the Wall Street Journal last weekend (May 14-15, Weekend Investor section) about powers of attorney, and how they can be dangerous if the power gets into the wrong hands, and how they could be useless if they’re old or executed improperly.

In our practice, we counsel clients to carefully select their power of attorney – trust is paramount, and if there is even the slightest doubt that someone won’t have your best interests at heart, they aren’t the right choice.

We also counsel our clients to carefully choose which powers make sense in their POA documents. Unfortunately, it is impossible to predict future needs, so we must sensibly balance what powers we should allow for. One of those most abused powers in these documents is the gifting power. Usually, we limit how gifting can be done, and how much of your estate can be gifted at one time.

The WSJ article has some tips for folks that are setting up powers of attorney. A few of them include:

• Set up your POA early, while you’re still healthy and in control.
• Keep the estate plan, including the POA, current (We recommend every 3 years)
• Check with your banks and financial institutions, to ensure the POA will be valid and accepted by the institution (sometimes, institutions have their own POA forms they ask clients to use).
• If you are often in between two or more different states, have POA’s that comply with the respective state laws. In other words, have a POA for Pennsylvania, and if you are in Florida several months per year, have a POA for Florida as well.

A power of attorney in Pennsylvania that is more than 5 years old should be updated immediately. Let us know if we can assist you, by calling our office today at (215) 706-0200.

Monday, March 14, 2011

A Living Will Is Not Enough

A Living Will is a document that clarifies your wishes for the very end of life. Specifically, the Living Will, also known as an Advanced Directive, tells your family, loved ones and medical professionals whether to continue life support even if all realistic options for any meaningful recovery have been exhausted.

An updated Living Will is crucial for everyone to have. Without it, you are inviting conflict, disharmony and a potentially great burden for your family. Also, without a clear Living Will, there is always a chance that a situation could develop into a case like Terry Schiavo, which lasted years because Ms. Schiavo had no Living Will.

But a Living Will is not enough – it takes care of your very end of life decisions. What about the rest of your health care decisions that must be made if you’re not competent to make them yourself?

Today, we always create a Health Care Power of Attorney (in addition to the Durable Financial Power of Attorney). The Health Care Power of Attorney appoints someone to make all medical decisions for you, hire and fire doctors and other medical personnel, etc. In Pennsylvania, most attorneys include the Living Will within the Health Care Power of Attorney document.

If you are admitted to a hospital, the staff will want to know immediately if you have these documents. You can’t carry them with you everywhere, so we highly recommend you store these documents online with our LegalVault service, and carry around an emergency ID card that allows hospitals to access these documents at any time.

By having an updated Health Care Power of Attorney with a Living Will that hospitals can immediately access with your emergency ID card, you are making it much easier for your family and loved ones to make the right decisions for you.

If we can be of assistance in updating or creating these crucial documents, or if you are interested in LegalVault/Emergency ID Card, please give our office a call at (215) 706-0200. 

Monday, March 07, 2011

Don't Forget Your Pets

Many of our clients have furry friends in their homes that offer unconditional love to their owners. For many, our dogs, cats and other animals are a special part of our family. In return, if you pass before your pets, or you get sick and can't care for them, you should really consider putting in place at least provisions in your will and power of attorney, if not a pet trust.

Here are a few specifics tips to consider when planning your estate with pets in mind:

1. Talk with someone or an organization in advance if you want that person or organization to watch after your pet in the event that something happens to you. See what they will need in order to take this job on.
    
2. Consider leaving a sum of money in your will for each pet, depending on your pet's age, medical condition and other needs. Coordinate with your estate planning attorney and financial advisor to ensure there is enough liquidity available for this.
   
3. Make sure your power of attorney appoints your agent or someone else to care for your pets. Make sure that the power of attorney allows for at least reasonable compensation for the care of your pet, and also the ability for your agent to gift money for the care and maintenance of your pet.
   
4. A pet trust may be useful if you wish for an account to be established that will provide for your pet over the rest of his or her life. Any unused funds would pass on to contingent beneficiaries or charities.

Have you thought about your pets in your estate plan? If not, please call our firm at 215-706-0200 to schedule a complementary estate planning consultation.

Thursday, February 24, 2011

Special Blog: Medicare Matters

The Federal Government’s Medicare program, which most seniors over 65 enroll in, is a good Health Insurance plan, except for one very small fact. Along with various co-pays and deductibles that you need to pay along the way, Medicare only pays for 80% of your Medical bills. If you quickly do the math, and consider a possible serious medical issue or two popping up in the near and distant future, the 20% of medical bills that you are responsible for can add up to thousands of dollars!

To cover the gaps in Medicare coverage, you have two options. You can buy a Medicare Advantage plan or buy Medicare Supplemental Insurance otherwise known as “MediGap”.

The following is an introduction to Medicare Supplement (MediGap) insurance.

1. DEFINITION: Medicare Supplement Insurance, also known as Medigap, is private Insurance that pays for the “gaps” in coverage that “Original” Medicare Parts A & B do not cover. It is not Medicare Advantage (which is typically a HMO type of Medicare Coverage).
    
2. COVERAGE: Medicare Supplements cover 100% of the gaps for medical procedures and hospital costs that Medicare approves and will pay for (except the gaps). If Medicare doesn’t approve of a particular (unconventional) treatment or procedure, Medicare Supplements won’t pay as well.
    
3. ELIGIBILITY: To purchase Medicare Supplements, one must have Medicare Parts A & B
    
4. PLANS: There are several Medicare Supplement Plans to choose from. The features of the different Plans are standardized by the Federal Government.  Companies selling Medicare Supplements cannot deviate from the standard features. Plan “F” from one company is EXACTLY the same as Plan “F” from another company.
    
5. PRICE:  Even though companies are selling the same exact plans, they can charge different prices. The Plan “F” price from one company can be different than the Plan ”F” price from another company. There is no pricing standardization. Please make it a point to shop around for the best price!
    
6. PRE-EXISTING CONDITIONS: Pre-existing conditions do not matter and will NOT have an effect on pricing or your eligibility when buying a Medicare Supplement Plan if:
   a) You are new to Medicare and you sign up within the 7-month Initial Enrollment window;
   b) You were involuntarily terminated from another Medicare Plan due to the company ending their Medicare programs, etc.;
   c) You are coming off a Gov’t plan or a Group Plan from an employer. 
   Aside from these three exceptions, pre-existing conditions could factor into your pricing and/or eligibility
    
7. DOCTORS & HOSPITALS: With Medicare Supplements there are NO RESTRICTIONS to what Doctors and Hospitals you choose. There are NO NETWORKS and NO REFFERALS needed for specialists, tests or procedures. You may receive medical care in any state, with NO geographical limitation
    
8. CO-PAYS: With Medicare Supplements, there are NEVER ANY CO-PAYS, or OUT-OF-POCKET COSTS when receiving medical care (except for $20 per Dr. visit in the new Plan ‘N’)
    
9. CLAIMS: There is coordination between Medicare, Medicare Supplement Insurers and Health Care providers so you will never receive a bill, or have to submit bills. You will only receive a “Summary of Benefits” so you can see what was paid for and by whom
    
10. INTERNET & TELEPHONE: Your Medicare coverage is much too important to buy on the Internet, over the Telephone or from TV Commercials. You need someone to come to your home, and get to know you and your situation so they can provide you with the most appropriate options and recommendations. Look to work with an Insurance Professional who specializes in Medicare and who will always be available for questions and guidance… as this will provide you the best value, along with the peace of mind that you deserve!

Thanks to our guest blogger, Howard Peck, who we regularly work with and who is a Pennsylvania licensed Insurance Broker specializing in Medicare Advantage, Medigap, Part ‘D’ Drug Plans and Long Term Care Insurance. Howard represents numerous Top ‘A’ Rated Insurance Companies that allows him to offer the best plans based on his client’s needs and budget. Please contact us if you’d like to arrange for a consultation with Howard.

Monday, January 10, 2011

Living Wills and Difficult End-of-Life Decisions

We recently came across an informative and touching article about end-of-life decisions, in which the author followed the emotional stories of a few different families. The article gives rich insight and into what families wrestle with when a relative falls ill and it may be getting close to the end. The article explores when the 'end' really is, and how, with so much new medical technology in the last 100 years, the lines have been blurred.

All of our clients complete a living will that is part of a broader health care power of attorney tool. This allows each client to designate someone (a relative, friend, etc) as their health care agent, who will be authorized to make all decisions regarding personnel, treatment, facilities, etc. and who will also be the guardian of the client's wishes.

A living will is not a perfect document by any means, and in many cases today, it is difficult to determine when nothing more can be done to keep someone alive. 

We recommend that you have a clear living will with your preferences for end-of-life decisions, and also choose an agent that you completely trust and who will make rational decisions even in a time of great emotion. Sounds easier said than done. However, this is what we counsel clients on day in and day out. If you have not done comprehensive planning, we suggest you schedule a complementary appointment today by calling (215) 706-0200. 

In the meantime, here is the article link: Letting Go: What should medicine do when it can't save your life?
Appeared in The New Yorker, August 2, 2010

Monday, December 27, 2010

When To Plan

When is the right time to start planning your estate? It really depends on your concern, but we help a range of people plan, from those in their 20's through the 90's.

It is especially important to plan if you have young children, or are newly married. You need to ensure a guardian is appointed for your children in case something happens to you and/or your spouse. Also, you want to ensure you have adequate life insurance for your children, and a trust set up in case something happens to you while they are still underage.

If you have grandchildren, you should encourage your children to engage in estate planning if they haven’t already.

Everyone, whether you’re 20 years old or 90 years old, needs a basic estate plan, which includes a will, financial power of attorney, and health care power of attorney (with a living will).

As you build up your 401(k) or IRA, you should see an estate planning attorney to ensure that your beneficiary designation forms are properly completed, and that these accounts are coordinated with your overall estate plan.

When you get into your 60’s, you should consider seeking the advice of an elder law attorney. Medicaid laws make it very difficult to shelter assets in case a spouse goes into a nursing home today. The earlier you plan, the better.

Everyone should update their estate plan every few years, to ensure the documents are still an accurate reflection of your wishes.

As you grow older, your needs will change. You may need more advanced estate planning. Some reasons for needing more advanced planning include:

• Family member with special needs
• Family member with health issues
• Estate value grows
• Property in multiple states
• Family conflicts
• New family members
• Charitable intentions
• Asset protection issues

If we can assist you with any estate planning matters, please do not hesitate to reach out to our office for a complementary consultation by calling (215) 706-0200.

Monday, November 22, 2010

Pennsylvania Inheritance Tax 101

When you die in Pennsylvania, any property or assets that you leave to other people is subject to an “Inheritance Tax.” This is in addition to possible federal estate taxes (more on this in the coming weeks).

Typically, but not always, the Executor of the estate pays the inheritance tax on behalf of all beneficiaries of the estate before any of the property is distributed to beneficiaries.

Pennsylvania mandates that inheritance tax be paid 9 months after the decedent dies. You can get a discount if you pay within 3 months.

The PA Inheritance Tax rates for 2010, 2011 and beyond (at least as of now) are:

• 0% --  Legally married spouses
• 4.5% -- Children, Grandchildren
• 12% -- Siblings
• 15% -- All others

Most property is subject to inheritance tax. Jointly owned property is taxed at the share the person owned (i.e., if a person owned 50% of a property, that 50% share would be taxable).

One way to avoid inheritance tax in PA is to establish an irrevocable trust, or simply gift assets (unconditional giving, no strings attached) to someone. You must outlive them at least one year in order for the gift or trust to be complete so that no inheritance tax is due on that property.

Be careful what you gift to someone. If you gift someone a house, and you still want to live in it while he or she owns it, you could be making a risky move, especially if that person gets in trouble.

We would advise you not to do any inheritance tax planning without the assistance of a qualified estate planning attorney.  Please call our office today at 215-706-0200 to schedule a complementary appointment. Have a wonderful Thanksgiving holiday!

Monday, October 25, 2010

Special Needs Trusts: The Basics

If you wish to provide for a loved one with either a medical or educational disability, a Special Needs Trust is usually the best option to achieve this goal.

It is a detriment to any person that receives public benefits (SSI, Medicaid, etc.) if they are provided money outright. Therefore, a Special Needs Trust is important in these circumstances, and they successfully avoid this dilemma.

By setting up a Special Needs Trust carefully, we select a Trustee who cares for your loved one, and provides for any supplemental needs with the trust fund. The Trustee makes sure that your loved one never actually touches the funds. This ensures that eligibility for public benefits will never be in jeopardy.

If you establish a Special Needs Trust for the benefit of another person, this is called a “Third Party Special Needs Trust.” With these types of trusts, the Pennsylvania government is not entitled to recover any assets (“estate recovery”) when the person dies. In other words, they cannot dip into whatever is leftover in the Special Needs Trust to cover the cost for any public benefits that were consumed.

A Special Needs Trust is a specialized tool and provides many benefits. If you have a loved one on public benefits that you wish to provide for, we can assist you.

Let our firm assist you: Our firm offers a complementary estate plan review and consultation. Please call us today at (215) 706-0200 or email us.

Pass the word on: If you know someone who can benefit by reading this blog, please forward it on to them, or subscribe your friend or family member through this link.

Monday, October 18, 2010

Top 10 Signs It's Time To Review Your Plan

Your estate plan should be reviewed on a regular basis. Here are ten signs that it is time to review it. If you are not sure whether your plan needs to be altered, get in touch with our office at anytime.

1. Your plan was crafted over five years ago.
    
2. You moved to a different state.
    
3. You got re-married, or got divorced.
    
4. You’ve been blessed with grandchildren.
    
5. You no longer talk to one of your kids, or you have reconnected with your child.
    
6. You are now widowed.
    
7. You have acquired significant assets, or lost substantial assets.
    
8. You don’t feel that your plan really meets the test for a good estate plan: “Give what you want, to whom you want, when you want and how you want.”
    
9. You have over $1 million in assets, or you and your spouse together have over $2 million in assets, which means there may be pending estate tax implications for you.
    
10. You’re worried about your kids, either because they spend too much, they are in a high risk profession, they may get divorced, etc.

In general, any time that an event occurs that changes your life or your family should prompt you to review your plan. We are pleased to provide a complementary consultation to you if you wish for our office to review your plan.

Let our firm assist you: Our firm offers a complementary estate plan review and consultation. Please call us today at (215) 706-0200 or email us.

Pass the word on: If you know someone who can benefit by reading this blog, please forward it on to them, or subscribe your friend or family member through this link.

Thursday, March 25, 2010

Special Needs Trusts

Thursday, February 25, 2010

Jeremy Attends Estate & Elder Law Symposium

Yesterday, your estate planning attorney Jeremy A. Wechsler attended the Pennsylvania Bar Institute's annual Estate & Elder Law Symposium. Jeremy believes that continuing to learn the latest estate planning techniques and case law is crucial to maintaining top standards in practice.

For instance, several key cases came through the Pennsylvania courts this year regarding estate planning. A big case, Slomski, has huge ramifications for powers of attorney, and whether certain language in your power of attorney gives the agent the ability to change beneficiaries on your retirement accounts. Was your power of attorney drafted a while ago? Better have it reviewed by us to make sure the language is proper. In fact, there have been dozens of cases throughout Pennsylvania this year that could have estate and elder law ramifications. Bottom line is, your documents from 10 or 20 years ago may not work today.

Other topics discussed yesterday were new and current asset protection strategies that actually work in Pennsylvania. Asset protection simply means planning ahead of time to keep your assets as safe as possible, using legal strategies. There are many strategies to protect your assets -- it's really about knowing the law. What assets can creditors get to? What is restricted? What strategies can you use to get money out of your estate and into your son or daughter's hands? What about strategies to protect your son or daughter with that estate? These are all questions we can help you with.

Also of interest was the latest elder law issues, such as Medicaid planning and the Medicaid application process, social security issues, and family caregiver agreements.

If you need a review of your estate plan, or need an estate plan crafted, make sure you visit with an attorney who keeps up with the latest law and most innovative techniques that actually work.