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 

General Powers of Attorney

Today, I was updating a Power of Attorney for a client. This reminded me of the importance of having a professionally done Power of Attorney. I was working on a nursing home case where most of the elderly clients had appointed an agent under a Power of Attorney. It was necessary when the patient/client was unable to act on their on behalf that the agent had the requisite power to act for them. One more than one occassion, the Power of Attorney used was insufficient for bringing an action in court. The agent did not have the power to sue on behalf of the patient/client. The Power of Attorney (some pulled off of the internet or some form booklet) was limited in its use.

An attorney and especially an estate planning attorney would be in the best position to prepare an appropriate Power of Attorney. In my nursing home case, thousand of dollars were lost because no suit could be brought by the agent on behalf of the injured patient. Don't let this happen to you or your loved one.

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

4. Distributes Wealth - Continues

Yesterday, we introduced Ria and asked whether the State should control the distribution of her assets. The fact is if Ria does not take any action (plan now), the state will control the distribution of her assets.

Remember, Ria is not married and has no children. Her parents are not in good health and she has 2 estranged brothers. If Ria dies without a will in Pennsylvania, her parents would inherit her entire estate. However, with her parent’s failing health, this would not be a wise option for Ria.

She would probably want to leave some assets for their care but upon their death, control where those specific assets would go. Ria would not want a nursing home to be her beneficiary but that would happen if she does not plan.

Tomorrow, we will look further at Ria's estate and the potential perils. Leave your comment here or contact us at http://www.ythlaw.com/

The Five Year Look Back - Keeping Assets in the Family

I am often asked about the 5 year look back period as it relates to nursing home costs. Will the nursing home take all of a person's assets? Can assets be transferred before a person has to go to a nursing home?

In order to qualify for state funding of one's nursing home expense, you either have to have no assets or spend down your assets. There are some permissible spend down, ie. prepaid funeral, home repair but the biggest one is paying for nursing home cost. Once you have paid for the nursing home care for a period of time, most assets are depleted. Some assets are protected if you are married and your spouse is not in a nursing home. If you are single, there is little that can be done unless you have planned ahead of time and transferred assets at least 5 years prior to going into a nursing home.

That is why planning now is so important. Leave your comments or contact us at http://www.ythlaw.com/

Tax Incentives and Long-term Care Insurance

I have discussed the importance of having long-term care insurance. Since we are now living longer, healthcare issues have become more prevalent. Over time the cost can be exuberant and consume all of the family's assets. A previous survey of the Health Insurance Association of America revealed that 48% of those turning age 65 will make use of a nursing home and and 72% will use home care. Long-term care insurance covers the costs of a nursing home, assisted living and home care depending upon the coverage your purchase.

Tax laws at the federal and state levels provide incentives for individuals and businesses to purchase qualified long-term care insruance policies, with the goal of decreasing reliance on Medicare and Medicaid both of which may experience capacity issues in the future.

Browse some of my other blogs on this topic to educate yourself on your needs and your next steps. Leave your comments here or contact us at www.ythlaw.com

Assisted Living

Today, we continue to address elder law issues. Previously, we discussed staying at home when there are acute health challenges for seniors. But, what if you can not stay in your home? What are the other options and how do they rank in meeting the needs of seniors?

There has been an increase of supportive housing alternatives. The options are no longer limited to an agonizing choice between staying at home and moving to a nursing home.

Assisted living facilities are one supportive housing alternative that has experienced significant growth. These facilities provide room, board and 24 hour supervision as well as help with some of the activities of daily living. Housing is often in small apartments where there are medical supervision and recreational options.

Assisted living facilities are not as costly as nursing home care though the expense is significant. Where the average cost in 2009 for nursing homes in Pennsylvania is approximately $7,000, for assisted living facilities, the average cost is approximately $3,000. The cost varies depending upon the level of service provided by the facility and the specific needs of the person.

Do you have an experience to share with our readers? Leave a comment or contact us at http://www.ythlaw.com/

Long Term Care Insurance - SECOND, Get Home Care rider

Yesterday, we covered one of the first things to consider when purchasing long term care insurance. Today we cover one of the second things to consider.

SECOND, Purchase a home care option or rider. You want to make sure that your long term care coverage provides for skilled care in your home. You want coverage not only while you are in a nursing home but if you can get skilled care in the home you want that covered as well. You do not want to be financially compelled to go to a nursing home. This additional rider can help you avoid moving to a nursing home.

Most seniors want to stay in their home as long as possible. This is also the desire of those family members who care for seniors.

What has been your experience? Do you want to share a comment? Feel free to do so here or contact us at www.ythlaw.com.