"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.

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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.

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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 

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

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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 

Three Costly Mistakes Estate Executors Need to Avoid

Anyone without knowledge of estate administration and associated tax laws can easily make costly mistakes.

Failure to Value Assets Correctly.  

Valuing assets incorrectly can be costly, time-consuming and create personal liability for an Executor or Administrator. Selling the asset based on a value too low may cost the estate the difference in fair value versus the incorrect, low value. If the asset is valued low for Pa. Inheritance Tax but then sold for a higher, fair value, there will be income tax on the difference (gain) in value and the income tax rate will be higher than the Pa. inheritance tax rate. In both cases, the Executor or Administrator will have cost the estate heirs a loss. Valuing an asset too high can result in over payment of  Pa. inheritance tax and a delay in selling the asset. When the asset is finally sold after long delay and at a lower price, heirs will be frustrated by the over-payment of tax and disappointed by the final sale price. Obtaining accurate date-of-death value of assets requires both knowledge of the laws and regulations governing valuation and the correct sources to use to obtain accurate values.

Failure to Liquidate Assets Timely. 

The duty of the Executor or Administrator is to preserve asset value for the heirs. Holding an asset, like stock which is subject to fluctuation of value, is dangerous and can often result in loss of value. In one estate the Executor delayed in liquidating the stock for over 90 days and the stock went down in value by $50,000. This caused significant problems for the Executor. If the Executor or Administrator is found to have delayed in liquidating the asset without a proper reason, he may be held personally liable for the loss.

Failure to Apportion Taxes Properly Among Heirs. 

Executors and Administrators need to carefully follow the estate and inheritance tax allocation language of the will, or if there is no provision for it, then must follow the law for distribution of tax liability among heirs. Improper allocation will, at best, create unhappy heirs and, at worst, impose liability on the Executor or Administrator if final distribution to heirs was made without proper releases or court order.

If you want assistance, legal representation, or just want to know more about R. Kurtz Holloway 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