As Ben Franklin said ..."an ounce of prevention is worth a pound of cure” - Estate Planning - Power of Attorney

Over the past few months we have run into clients who never thought they would need a Power of Attorney (POA). Without notice, they found themselves with a family member in crisis and they were unable to act for the family member as they felt they needed. People should know age or perceived health were not really factors either.

One client was a nurse whose husband suffered an aneurism in his brain. He was in his 40's and had some medical issues but leading a normal life. He collapsed one night and spent several weeks in a coma. When he came out of it, he was unable to communicate. She did not have a POA. Throughout the worst times, the client was unable to access health insurance records and medical records due to HIPPA and lacking a POA. Other basic decisions became harder to execute. Fortunately, he worked his way back to be able to grant a POA a couple months after the event.
 
Another client found herself trying to care for one parent with severe Alzheimer's Disease after the other parent died. The parents only gave POA's to each other. Fortunately, the ill parent was already in a care facility. The main problem was paying for it. All the parent's money was instantly locked up because the only person authorizes to make decisions just passed and the living parent had no capacity to make decisions. At that point, the only way to gain authority to make decisions for the court to appoint an guardian for the parent. 

The legal cost for appointing a guardian was thousands of dollars. Depending on the law firm and the complexity of the POA, a POA would have cost between $100 - $1,000; well below the thousands needed for the guardianship action. Also, my client had to advance the costs of the care facility, which was 10's of thousands, until the court granted my client the authority to recover her money from her parent's accounts.

While a POA may not avoid all needs for a guardianship proceeding, it definitely can make the transition easier and can lessen the stress and urgency of the matter. Also, a POA may never be used. But when you need it, you really need it and it is too late then if you don't have it. Prevent making a family crisis worse. Talk to an attorney about this vital legal tool; a Power of Attorney.

If you want assistance, legal representation, or just want to know more about Mark M. Medvesky or Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

 #bankruptcy Chapter7 #Chapter13 #MontgomeryCounty #lawfirm #BucksCounty #Pennsylvania    

"Does your mother have a living will?" a personal account - Estate Planning

My mother went into the hospital for semi-elective surgery. It wasn't necessary for her survival but she wanted the procedure hoping it would improve the quality of her life. She wanted to repair injuries to her body left from other surgeries after a serious illness two years ago.

Image courtesy of artur84
at FreeDigitalPhotos.net

My sister is a nurse and works in the hospital where my mother was being treated. She is my mother's designated healthcare agent.

After the surgery, things did not go as well as we expected. She was in the hospital about two weeks with some good days and some bad days. My sister is usually calm, cool, and collected but I could tell even she was concerned.

One morning she called me to tell me the hospital called her at 3 AM and ask her, "does your mother still have a living will?" As my sister was talking the hair on the back of my neck raised up. Obviously, my mother was having some serious issues and they wanted to preform a procedure.

Two issues arose immediately. First, my sister knew (and I agree) my mother probably would not have wanted the procedure the doctors were recommending. Second, my sister knew my mother was aware and capable of making her own decision. The doctors may have known my mother would reject their advice.
 
My sister told the doctors, "my mom can make her own decision and we can talk to her later." Later that day, the hospital offered my mother three options. The first option and their recommendation would have significantly increased her chance of survival but would have further diminished her quality of life. To what extent we were not sure. The second option was a temporary solution which would give her body time to heal if it was able. The third option was to do nothing and the doctors were pretty sure she would not survive.
 
My mother selected the temporary option. We knew she would terminate the treatment as scheduled no matter what the result. If fact, she terminated the temporary treatment five days early anyway. It was hard to wrap my head around the fact my mother decided to risk death over surviving but with a degradation in her quality of life. But that was her choice.
 
My sister may not have made the decision for her as her healthcare agent but she did protect my mother's right to decide for herself.  Without the living will giving my sister authority to answer for my mom, the hospital may have imposed its judgment upon my mother.

By the way ... my mother survived this ordeal and has more mobility than she would have if she followed her doctors' advice. She is a tough old bird ... living on her own ... raising cane as she always has.

It is good my sister had the authority of the living will and that we knew what my mother wanted for her life and in her death when the time comes. It made a tough experience less stressful. 

If you want to work on your estate plan, need assistance, legal representation, or just want to know more about Mark M. Medvesky or Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

#Bucks_County #lawyer #lawyers, #MontgomeryCounty #Souderton #Law_Firm #Wills #Power-of-Attorney #Living_Will #Healthcare #Trusts 

Estate Planning - why should I plan? I'm not here ...

I came across this article that discusses the family's responsibility to cover debts of a person who passes away - Will your heirs get slammed with your outstanding debt when you die? (By Sarah O'Brien, special to CNBC.com). With the average unsecured debt, the family generally has no responsibility to pay the debt. The executor of the person's estate has an obligation to pay the bills from the estate before any of the estate can pass to the heirs. The article also explains the challenges with secured loans and mortgages; they need to be paid or the property will go to the creditor. But with a little planning, a financially secure person can take care of most of this before they pass.

Image courtesy of photostock at FreeDigitalPhotos.net

One thing the article doesn't mention is financial support from the state; Medicaid/medical assistance/long term care. The state is mandated by the federal government to attempt to recover medical assistance payments whenever possible. This issue revolves around ownership interests and timing. This is more complex and must be done years before a person's death. Fortunately, the state is limited to the person's estate but it can wipe out the entire estate leaving nothing for the heirs. For more info in Pennsylvania, you can check out the FAQs on the state's website: Medical Assistance, ESTATE RECOVERY PROGRAM, Questions and Answers

Finally, we have the "Gottcha" issue. There are times in some state where a child could be stuck with a parent's debt. About half the states in the US have "have so-called 'filial responsibility' laws that require adult children to support their parents if they become indigent." Pennsylvania is one of those states. This article explains, in broad strokes, the law - Children may have to foot bill for indigent parents' care. (By Erin E. Arvedlund, Staff Writer at Philly.com) The article further explains Pennsylvania has gone a little further than other states. "What is unique about Pennsylvania is that the law has been interpreted as permitting third parties, such as nursing homes, to sue the children directly, Pearson explains." This is left out of the article I found first.

Clearly, people should plan for the end of their lives as best they can. It is best if it is done with their children and other family members. Even if you cannot avoid these problems, you can prepare the people you leave behind so the know what they can expect.

If you want assistance, legal representation, or just want to know more about Mark M. Medvesky or Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

#Bucks_County #lawyer #lawyers, #MontgomeryCounty #Souderton #Law_Firm #Wills #Power-of-Attorney #Living_Will #Healthcare #Trusts 

Estate Planning - Anyone who has life insurance and kids probably should set up a Trust ...

People seem to think only "rich" people need to set up Trusts for their families. Terms like "irrevocable," "testamentary," "special needs," pour-over," "unfunded," and "living" related to the word "Trust" generally sends shivers down people's spines and crosses their eyes. The purpose of the Trust and the people who are the beneficiaries will determine the complexity of the trust. But what I am talking about here is pretty basic.

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Many middle class parents have life insurance to protect their family if something happens to them. Most have the policies through their jobs. The value of the policies can run from $100,000 to $500,000. Usually, they name their spouse as the primary beneficiary. Sometimes they name their children as alternate beneficiaries and sometimes they do not name a secondary beneficiary at all.

If a tragic accident strikes and the parents of minor children died at the same time, what will happen to the insurance money without a trust? There is a real risk in Pennsylvania the money will be deposited into a sequestered account. That means the minor children and/or their caretakers will have limited or no access to the money. Then, as soon as the minors turn 18,  they will receive the entire sum. If both mom and dad had $250,000 of life insurance, the children would receive their share of the money at 18 with no controls, restrictions, or safeguards on the funds. Would you trust your 18 year-old child with $500,000?

If parents want to help guide their children financially even after they are gone, they can do it through an unfunded trust agreement. Basically, they have a trust agreement drafted to accept the proceeds of their insurance policy should their primary beneficiary (their spouse) not be alive at the time the policy pays out. The money would be paid into the trust and managed by a trustee.

The trust is a list of directions on how the money will be used for the support of the children and when they will receive control of the money itself. Parents can give the cash to them when the kids are as young as 18 or as old as they want. The money can be held in a trust until the beneficiaries turn 30 if the settlor wants. 

The trustee can be another family member, someone the settlor has a relationship with, or a professional trust manager or institution like a bank. The trustee is the gatekeeper and manages the money. A simple trust can help protect a young adult from wasting money before they are ready to properly manage it.

If you want assistance, legal representation, or just want to know more about Mark M. Medvesky or Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.
#Bucks_County #lawyer #lawyers, #MontgomeryCounty #Souderton #Law_Firm #Wills #Power-of-Attorney #Living_Will #Healthcare #Trusts 

Military - Special Needs Trust for diabled military children

MOAA Reported; "Special Needs Trust Update" - http://bit.ly/1POdKqR - allowing military members and retirees the option of directing their " Survivor Benefit Plan (SBP) payments to a Special Needs Trust (SNT) for permanently disabled children." Up until last year, this could not be done. That meant disable children would lose access to other public benefits. Now parents can use their survivor benefits to supplement their child's income instead of replacing it. It is a short article. If you know someone that may benefit from the new law, encourage them to talk to an attorney to help with their estate planning.

Image courtesy of David Castillo Dominici at FreeDigitalPhotos.net

If you want assistance, legal representation, or just want to know more about Mark M. Medvesky or Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

#Bucks_County #lawyer #lawyers, #MontgomeryCounty #Souderton #Law_Firm #Wills #Power-of-Attorney #Living_Will #Healthcare #Trusts 

Power-of-Attorney: They may be your "babies" ... but they aren't babies anymore

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This is the time when college students are packing up and leaving home for the school year. For those who are becoming "empty nesters." many things are changing for them. One of those things is their legal role in their children's lives. Their children have become adults as far as the law is concerned.

If something happens now and parents need to intervene, they may not be able to do so just because they are parents. HIPPA and other privacy laws may now apply to them. Also, the new college students are adults and are bound to their agreements. If someone wants or needs to assist the student with something like dealing with an apartment lease, that person, even a parent, my need to be granted the power to negotiate a resolution. Parents may no longer exercise power by virtue of being a parent.

One way to gain that power is for the child to give Power-of-Attorney to his or her parents. This will allow parents to step in to assist during an emergency. This may be a good time to talk to your "baby" about Powers-of-Attorney and their value. This is a document that is better to have and not need it than to need it and not have it. To find out more, talk to an attorney.

 If you want assistance, legal representation, or just want to know more about Mark M. Medvesky or Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

#Bucks_County #lawyer #lawyers, #MontgomeryCounty #Souderton #Law_Firm #Wills #Power-of-Attorney #Living_Will #Healthcare #Trusts 

Setting up a Trust - Why should I let someone else manage my money?

Image courtesy of David Castillo Dominici at FreeDigitalPhotos.net

Many people find it hard to talk about the end of their life and how to handle their estate. Thinking about how to leave money to a child is generally a tough conversation. The idea of giving control of their life savings to a third party seems counter-intuitive. On top of that, there is generally a management fee that goes along with the trust. So why do it? Why not just give it to the children?
Well, did you see this headline on Yahoo Finance?

"22-year-old college student blows her $90,000 college fund and blames her parents" The article outlines a radio interview conducted by the Atlanta radio show “The Bert Show.” Excerpts from the article and interview:

"The woman, a 22-year-old college junior named Kim, ... she had managed to blow through a $90,000 college fund left to her by her grandparents. Kim has one year left of school and no way to cover her remaining $20,000 tuition balance."

...

“Maybe [my parents] should have taught me to budget or something. They never sat me down and had a real serious talk about it.”

...

“[My parents] said there was nothing they could do for me. They’re not being honest with me saying they don't have [money] because my dad has worked for like a million years and they have a retirement account.”

I truly do not believe this type of behavior is limited to our younger generation. The idea of creating Trusts has been around for quite some time. This case illustrates one good reason to consider creating a Trust rather giving the entire amount to a young adult.

If this young lady's grandparents would have placed this money in a Trust, they could have protected the girl from herself and provided her with the guidance she blames her parents for failing to provide her. They could have placed a mature individual or a financial institution to guide her and ensure she maximized the use of her gift for its intended purpose; school. The costs of managing the Trust may have been greater but the result would probably been more favorable.

 If you want assistance, legal representation, or just want to know more about Mark M. Medvesky or Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

#Bucks_County #lawyer #lawyers, #MontgomeryCounty #Souderton #Law_Firm #Wills #Power-of-Attorney #Living_Will #Healthcare #Trusts