Are You Responsible for Your Parent's Debts?

This question is often asked in the nursing home context.  What obligation do children have to their parents when they are in need of continued care but can no longer afford it?

Well, Pennsylvania does have a Filial Support Law where a child may be held  liable for the debts of their parents.   How often it is used is unclear but it is on the law books and available to nursing homes trying to collect unpaid bills.

You  want to encourage your parents, or help them, to apply for medicaid if you anticipate they may not have the funds to continue to pay for their nursing home costs.  Many nursing homes will provide this support but are not all do so and further they may or may not adequately handle it.

Therefore, you want to be proactive and seek the necessary professional guidance so that you are protecting your parents as well as your financial security.  Contact us to discuss all your elder law and estate planning needs at www.ythlaw.com 

Free Seminar Thursday - RSVP 215-321-4033

Happy Birthday to us All!!!

I had mentioned before that I alway use my birthday as a time to review and reflect on important health, financial and personal matters. Making sure my estate plan is up to date is a part of this annual reflection. Well, today is my Birthday!!

I am fortunate to have my health. I also realize how important good health is and so I do what is necessary to maintain good health. It is just as important to do what is necessary to make sure my Will and other important estate planning documents exist and are up to date, when I am healthy and can make sound and rational decisions.

It is also important that I address issues of healthcare and long-term care when I am healthy and can make sound and rational decisions. This would include the social security areas of retirement, disability, medicare and medicaid; long term care insurance; assisted living; and, guardianship. All of these areas may be of importance to you and your family.

Feel free to contact us soon at http://www.ythlaw.com/.

To Be or Not To Be, That is Your Decision!!

You can dictate whether you want to be on life support. If your condition is terminal without any hope of recovery because you are in a permenant state of unconsciousness or in a vegetative state, your Living Will can speak for you. The Living Will is the fourth important document of your estate plan. It is also referred to has your Advance Healthcare Directive. You can let your family as well as medical professionals know your preference for life-sustaining treatment. Plan for those important decisions in your life. Contact our offices at http://www.ythlaw.com/ We can help you with Probate, Estate Planning and Elder Law.

Estate Planning Mistakes - Number Six

As with the description of personal property to be given, you want to clearly describe the person to whom a gift is given. You want to name the person and if there is possible confusion make sure your Will indicates their relationship to you.

For example, I leave my gold watch to my best friend, Jane Doe. You do not want to just say to your best friend or to your favorite cousin. Let it be clear even if you have to also express where the person lives, at least at the time of making the Will.

Contact us for expert assistance in matters of Probate, Estate Planning and Elder Law.

Where Do You Think This Stock Market Is Going?

Marianna Goldenberg of Penn Wealth Planning has answered this question in her weekly commentary which I always find to be informative and insightful. She stated:

"If history is any indication: The fourth quarter of mid-term election years is almost always favorable for stocks. The market’s reaction to mid-term elections, as uncertainty fades, has almost always been positive, with fourth quarter gains as measured by the S&P 500 index averaging 8% in mid-term election years. The only two exceptions to the gains in the fourth quarter of every mid-term election year since 1950 were 1978 and 1994, when the Fed was hiking rates aggressively, a critical factor that is highly unlikely to take place this quarter. So far, stock market performance in 2010 has tracked the typical pattern for U.S. stocks in mid-term election years, albeit with a bit more than the usual volatility."

For those who wanted to know the answer to our question, this explaination might be as good as it gets. Contact us for your estate planning, probate and elder law needs at www.ythlaw.com

Who's Talking To The Doctor?

What if your doctor is unable to communicate with you regarding a healthcare matter. You could have had an accident. You could be in surgery and require another procedure.

Your Healthcare Power of Attorney allows you to appoint an individual to make healthcare decisions on your behalf. This agent or personal representative is authorized by you to review your private medical information.

This is the THIRD most important document in your estate plan. Contact our offices at http://www.ythlaw.com/ to address your probate, estate planning and elder law needs.

Protect The Future

Did you know that accourding to a recent survey, nearly 2/3 of Americans do not have a will. This means that a judge and the laws of the state will determine the distribution of their assets and belongings if they should pass away, unexpectedly or not.

Avoiding important estate planning decisions could eventually mean that someone else has to make them for you. The results are often not in the best interest of your family and could event fail to meet their future needs. A thoughtful estate plan takes your priorities into account, protects your heirs, and establishes your legacy.

Contact our offices for all your Probate, Estate Planning and Elder Law needs at www.ythlaw.com

Asset Protection Planning

We all want to protect and preserve the assets that we have accumulated through all our hard work. There are simple and complex ways to accomplish that task.

Some ideas to consider include gifting to those whom you want to have your assets. Joint ownership will allow assets to pass to those whom you have made co-owners. There is so much that can be done with proper planning with insurance. Family Limited Partnerships are more complex but very effective planning tools as are different types of trusts.

You need to address all of these asset protection planning vehicle with a respected professional. Contact us at www.ythlaw.com for all your estate planning, probate and elder law needs.

Elder Care - When a Nursing Home is Required

I recently spoke with a client whose 91 and 95 year old grandparents are in need of long term care. They can no longer stay in their home because the limited care they receive (4 hours a day) is not sufficient to meet their needs. However, the cost of a nursing home is prohibitive given their resources.

So, what is one to do? Their options are limited. Since both need to have 24 hour care, all of their resources would have to be paid to the nursing home until they qualify for medicaid. My client's grandparents could spend down on eligible items like prepaid funeral, medical bills and home repairs (which would be necessary to sell it). Other transfers, like to a trust or gifting to family members, would affect their eligibility for medicaid since there is a 5 year look back period on transfers.

The options are few given their advance age. Planning for long term care needs to be on everyones' radar since we are living longer and with that our medical needs increase. Leave your comments here or contact us at www.ythlaw.com

Mother's Day - A time to talk

You know I often say that estate planning is a family conversation. Mother's Day is this weekend and generally all the family is together. As our parents age, who will be there for them? If a parent is alone due to divorce or death, then answering this question is even more important for the family.

A friend asked me to write a guide for families. A step-by-step approach to How to Care for Mom. When families are faced with this reality, it can be overwhelming. Families are no longer living in close proxmity. They have multiple commitments and obligations. They struggle themselves financially. BUT, in all this chaos, there is an approach to make the burden easier. The approach not only includes necessary documents like General Power of Attorney and Healthcare Power of Attorney; but, resources like continuing care communities and elder care wellness centers. Having this information available in a handy check-off format, makes an otherwise daunting task doable. So coming soon, your guide to caring for Mom.

Leave your comment here or contact me at http://www.ythlaw.com%20w/

Probate - Do You Know What it is?

I thought I would take the time to explain probate. I have had a few situations recently where understanding probate was an issue.

First, probate means to prove the will. The will is presented to the register of wills and they determine whether it is valid under the law. If there is a challenge to the will then the probate court hears both sides of the challenge to determine validity.

Second, probate serves as the process to change ownership of property from the deceased to their heirs or beneficiaries. Many times individuals never go through the probate process. As a result, you can have real estate still held in the name of a deceased person. Of course, this causes a lot of problems and confusion later.

Third, one of the main things done during the probate process is to pay any inheritance taxes due. You also must pay all debts of the deceased prior to transferring any assets to the heirs or beneficiaries.

We can handle probate for you. Our speciality is Probate, Estate Planning, Elder Law and Estate Administration. Contact us at http://www.ythlaw.com/

7. Discern Elder Needs

We have discussed over the last 2 weeks the 7 essential benefits of estate planning and today we address the seventh essential benefit, discern elder needs.

In 2006, the oldest of the baby boomers, the generation born between 1946 and 1964, turned 60 years old. As a result, new concerns have given rise to the specialized area of “elder law.” This term was not even mentioned when I attended law school in the early 1980’s. However, with the anticipated increase in the elderly population, the advances in technology, and the increase in life expectancy, the dynamics of our society are changing and the elder law area of practice is growing rapidly.

Elder law looks at the needs of seniors during their longer lifetime. Estate planning, as well as retirement and long-term care planning, forms a natural part of the elder law practice. Seniors are finding themselves working longer to address the cost of healthcare for elders under their care. The fact that we are living longer requires all of us to take a real careful look at long term care questions and put plans in place, like purchasing long term care insurance and getting your will, general power of attorney, healthcare power of attorney and living will done.

Want to know more about the 7 essential benefits of estate planning? Check out my new book Stop! What Are You Waiting For? Your Step-by-Step Guide to Estate Planning.

Stop!!! What Are You Waiting For? To Be Released Soon

Well, the book you have been waiting for has now gone to print. With the death of Michael Jackson, I wanted to include some lessons learned thus far, many more will continue to unfold. So, what is the book about??

STOP!! What are you waiting for?, a comprehensive guide to preserving your wealth, will provide information on the benefits of estate planning. It will address how estate planning (1) protects your assets, (2) saves you money, (3) creates your legacy, (4) distributes your wealth, (5) addresses your special circumstances, (6) insures you peace of mind, and (7) discerns needs as you age.

More importantly, this book will challenge you to reflect on your life. You can engage the estate planning process as a process of self-discovery to help you understand the life that you are living. It may be the first time that you plant an idea of your purpose that can begin to germinate into your legacy.

Leave your comments here or contact us at http://www.ythlaw.com/

Social Security - Myths and Facts

As part of our Elder Law work, we often address social security questions. I recently read a good article by Renee DeFranco, Social Security Myths Debunked, which addressed 7 important social security questions. Here are 2 of the questions with part of the answers and a link to the article so you can review the other 5 questions and answers.

Q: Social Security is predicted to run out of money within the next 30 years. Should we start collecting as soon as possible, at age 62, before there's nothing left to claim?

A: According to Social Security commissioner Michael J. Astrue, benefits for today's retirees are safe. However, if nothing is done to reform the system, the trust funds will begin to lose money in 2016 and will run out by 2037. A Social Security spokesperson John Shallman assured that Social Security tax income would be enough to pay roughly 75 percent of scheduled benefits through 2083. However, if the thought of insolvency keeps you up at night, it might be better to cash in early.

Q: Do I have to pay income tax on my Social Security benefits?

A: Less than one-third of current beneficiaries pay taxes on their benefits, according to the Social Security Administration. The rule: If you file a federal tax return as an "individual" and your total income is more than $25,000, you will have to pay taxes. If you file a joint return, and you and your spouse have a total income over $32,000, you will also have to pay taxes. Consider having taxes withheld from your Social Security checks.

For the 5 other questions and answer visit www.comcast.net/finance/forwhatitsworth/145/socialsecuritymythsdebunked/

Feel free to leave your comments or contact us at www.ythlaw.com

As We Age - Elder Law

I had mentioned before that I alway use my birthday as a time to review and reflect on important health, financial and personal matters. Making sure my estate plan is up to date is a part of this annual reflection. Well, today is my MOTHER's birthday!! Happy Birthday Mom!!

We are fortunate that my mother and father are both vibrant and healthy individuals. However, just like we should be doing our estate planning when we are healthy and can make sound and rational decisions, we should address issues of healthcare and long-term care when we are healthy and can make sound and rational decisions. The "sandwich generation", those caring for children and potentially caring for aging parents, should be planning for the issues that arise as we age. This would include the social security areas of retirement, disability, medicare and medicaid; long term care insurance; assisted living; and, guardianship. All of these areas have issues within them that can be sorted through with the help of an elder law attorney.

Feel free to contact us soon at www.ythlaw.com.

Continuing Care Retirement Communities - Healthcare Options

The Continuing Care Retirement Communities can offer independent living, assisted living and nursing care. Many offer all three levels of care or services, though there are some that do not include nursing care as part of the covered continuum or which offer nursing care at a separate location. There are three primary types of health care options:

First type provides an individual with the ability to move from independent living to assisted living or nursing care without any significant change in their monthly payment. For example, if a resident was paying $ 3,000 for a one bedroom apartment but now requires round the clock skilled nursing care,- in this type of community, the monthly fee would remain at $ 3,000 with some additional charge for three meals per day that are required by long term care regulation to be provided in the nursing setting. This first type of community tends to have higher entrance fees and higher monthly fees than the second and third type of communities.

Second type communities are sometimes referred to as modified fee-for-service communities. There are various forms of these communities, but essentially life care is not offered. The resident does not have to pay the full cost of the higher levels of care, either because they receive a discount on the per diem or monthly costs for the higher levels of care (i.e. assisted living and nursing care) or receive an agreed upon number of days within the higher care levels, without additional charge to their independent living unit monthly fee.

Third type communities are frequently referred to as fee-for-service communities. The monthly fee in particular (but also entrance fees) tends to be lower than the fee at other type communities. The reason for this is that there is no insurance like component to the third type community. If an independent living resident requires assisted living or nursing care, they can access that care but will be charged the full cost of the care. There is no discount or free days.

While the advantage of the first type communities is that they offer residents and families the ability to define and pre-plan the expenditures that will be made for current and future care, these communities, of course, tend to be more expensive. The third type community recognizes that not all residents will require higher levels of care; therefore, the resident is only charged for the actual care that is received.

Share your experience by leaving a comment or contact us at www.ythlaw.com

Continuing Care Retirement Communities - Payment Options

Before Michael Jackson's death and all the estate planning issues raised by his death, I had been covering the Continuing Care Retirement Communities. Picking back up with it today I will look at the payment options available in those communities.

Another key distinguishing characteristic of CCRC is the refundability of the entrance fee. The four basic types of entrance fee approaches are as follows:

Non- Refundable: The Entrance Fee is non-refundable in the event of the resident’s death. Non-refundable entrance fees are generally lower than the remainder of the Entrance Fee options described below.

Amortized: An amortized entrance fee generally offers the resident or the resident’s estate the ability to recoup a portion of the entrance fee paid during an agreed upon period.

Refundable: The term Refundable entrance fee is typically used to describe an entrance fee that offers the resident or the resident’s estate the ability to always obtain a specific refund amount – as a minimum.

Equity: Though less common, it is another payment option for some CCRC. The Equity approach represents entrance fee refund plans that offer the resident or the resident’s estate the ability to obtain a refund that reflects a portion of the appreciation of the resident’s living unit or apartment.

What are your thoughts regarding CCRCs? We would like to hear from you. Leave a comment or contact us at http://www.ythlaw.com/

Continuing Care Retirement Community - Services Provided

The Continuing Care Retirement Communities are diverse in the services that they provide. The services or programs are either included within the monthly fees or may be separately purchased or accessed on-site for an additional fee.

Examples include the following:
· Meals - This changed over time to reflect preference for more flexibility. Today, most CCRC’s either include a meal per day or some number of meals per month (such as 15 to 20) or offer a monthly dining allowance which can be used whenever the resident chooses.
· Housekeeping - weekly, bi-weekly, monthly, or as needed
· Transportation - on a scheduled basis to local shopping and other sites. Transportation to personal appointments and medical services may be offered as needed for an additional fee
· Activities - recreational options including fitness programs, aquatics, arts, crafts
· Other - emergency response or emergency call

It is best to visit any community prior to making a final commitment. Let us know about your experiences by leaving your comments or contact us at http://www.ythlaw.com/

Continuing Care Retirement Communities

Continuing Care Retirement Communities (CCRC)
We talked about assisted living facilities yesterday. Another supportive housing alternative is the Continuing Care Retirement Communities. These communities offer a blend of housing complex, activity center and health care services. They can consist of independent living, assisted living, and nursing care as well as other programs and activities. Some offer specialized Alzheimer’s memory care units and programs.

There are various types of CCRC types. They differ in the nature of services included or that are optional, the payment structure, the refundability (or non- refundability) of the entrance fee, as well as the physical design features of the accommodations. The three major areas that can be used to assist in defining the types of CCRC’s are services, healthcare options and payment options. Over the next 3 days, we will elaborate upon these three major areas.

Feel free to leave your comments or contact us at http://www.ythlaw.com/

Services (other that health care/nursing care)
Most CCRC’s offer a series of services or programs that are either included within the monthly fees or may be separately purchased or accessed on-site for an additional fee. Examples include the following:
· Meals - This changed over time to reflect preference for more flexibility. Today, most CCRC’s either include a meal per day or some number of meals per month (such as 15 to 20) or offer a monthly dining allowance which can be used whenever the resident chooses.
· Housekeeping - weekly, bi-weekly, monthly, or as needed
· Transportation - on a scheduled basis to local shopping and other sites. Transportation to personal appointments and medical services may be offered as needed for an additional fee
· Activities - recreational options including fitness programs, aquatics, arts, crafts
· Other - emergency response or emergency call

Health Care Options
CCRC can offer independent living, assisted living and nursing care. Many offer all three levels of care or services, though there are some that do not include nursing care as part of the covered continuum or which offer nursing care at a separate location. There are three primary types of health care options: