Kreisher Marshall & Associates, LLCColumbia County, PA Estate Planning & Elder Law | Estate Administration2024-03-14T18:24:41Zhttps://www.columbiacountylaw.com/feed/atom/WordPress/wp-content/uploads/sites/1404126/2023/11/cropped-favicon-kreisher-x-1-32x32.pngOn Behalf of Kreisher Marshall & Associates, LLChttps://www.columbiacountylaw.com/?p=2544882024-03-12T15:10:19Z2024-03-12T15:10:19ZRead More Here]]>On Behalf of Kreisher Marshall & Associates, LLChttps://www.columbiacountylaw.com/?p=2544612024-03-07T12:21:20Z2024-03-07T12:21:20Z1. Set up a trust. Any funds left for a child with special needs, whether from an estate or the proceeds of a life insurance policy, should be held in trust for his or her benefit. Leaving money outright for anyone with a special need jeopardizes public benefits. Many people with special needs cannot manage funds -- especially large amounts. Some families disinherit children with special needs, relying on their siblings to care for them. This approach is fraught with potential problems. Siblings can be sued, get divorced, disagree on their responsibilities, or run off with the funds. It can also cause tax problems for the siblings. The best approach is a trust fund set aside for the child with special needs.
There are three main types of special needs trusts: first party trusts; third party trusts; and pooled trusts. Each have their own set of rules and instances when they are appropriate. An experienced, certified elder law attorney will be able to review your situation and best advise which of these trusts is appropriate in your case.
2. Buy enough life insurance. Not everyone has a large chunk of money that can be left to a special needs trust, so life insurance can be an essential tool. If you've established a special needs trust, a life insurance policy can pay directly into it, and it does not have to go through probate or be subject to estate tax. Be sure to review the beneficiary designation to make sure it names the trust, not the child.
You should make sure you have enough insurance to pay for your child's care long after you are gone. Without proper funding, the burden of care may fall on siblings or other family members. Using a life insurance policy will also guarantee future funding for the trust while keeping the parents' estate intact for other family members. When looking for life insurance, consider a second-to-die policy. This type of policy only pays out after the second parent dies, and it has the benefit of lower premiums than regular life insurance policies.
3. Create a will and appoint a guardian. While a will and the appointment of a guardian is important for anyone with minor children, it is doubly so if the child has special needs. Finding the right guardian can be difficult. In some cases, the care needs of the child may be so demanding that he or she will need a different guardian from his or her siblings. The parents need to make these determinations while they can. The will is the vehicle for the appointment of a guardian.
An adult child may also require a guardian when the parent can no longer serve in this role (whether officially appointed or not). It will probably not be legally possible to officially appoint a successor guardian once the parent is out of the picture. So, it may make sense to begin making the transition to a new guardian while the parent is able to assist in the process. This can be in the form of a co-guardianship, or passing the baton to a successor guardian.
4. Review your beneficiary designations. Make sure to review your beneficiary designations on investment accounts, retirement accounts and other life insurance policies. Make sure that the beneficiary names the trust, and not the child.
5. Write down the care plan. All parents caring for children with special needs are advised to write down what any successor caregiver would need to know about the child and what the parent's wishes are for his or her care. Should the child be in a group home, live with a parent, be on his or her own? Usually, the parent knows best, but needs to pass on the information. The memo or letter can be kept in the attorney's files with the parent's estate plan.
6. Coordinate with other family members. Even a carefully developed plan can be sabotaged by a well-meaning relative who leaves money directly to the child with a special need. If a trust is created for the benefit of the child, grandparents and other family members should be told about it so that they can direct any bequest they may like to leave to that child through the trust.
Get Help With Your Plan
However you decide to provide for a child with special needs, proper planning is essential. Talk to an experienced, certified elder law attorney to determine the best plan for your family.]]>On Behalf of Kreisher Marshall & Associates, LLChttps://www.columbiacountylaw.com/?p=2544482024-01-31T15:32:44Z2024-01-31T15:32:44Zuse specialized trusts to protect their loved ones and transfer their property to specific beneficiaries. People often think of trusts as tools for the extremely wealthy, but they can be useful for people in many different scenarios.
When might someone benefit from adding a trust to their estate plan?
When they have a very large estate
Someone with significant personal assets must address the possibility that their family members might fight over what they leave behind when they die. A trust can be harder to challenge and may deter frivolous lawsuits brought against someone's state. Trusts can also benefit those with multi-million-dollar estates by protecting their legacies from the negative impact estate taxes could have.
When someone worries about debt or long-term care
Individuals who believe their estates could be at risk of collection efforts after they die may want to create trusts. The assets in a trust can bypass probate court and may therefore have protection from creditor claims in many cases. Trusts can also be useful if people worry that they may require long-term care support and may eventually need to apply for Medicaid. A trust can both make qualifying easier and decrease the likelihood of penalties imposed due to financial transactions.
When their beneficiaries face challenges
There are many concerns about beneficiaries that might require a more careful approach to estate planning. Perhaps they have substance abuse issues or special needs. Maybe they are in an unhealthy marriage and the testator wants to protect them from the loss of inherited property if they ever divorce. Trusts can help prevent issues in a broad range of different family situations.
When they have specific legacy wishes
Perhaps someone wants to leave money to a charitable cause, create a scholarship fund or transfer property to local authorities for the creation of a public park. Maybe they own a business and want it to become the shared property of the employees. Some people have long-term plans for their assets after their passing, and a trust can be the easiest way to achieve those goals. Trusts do not just transfer assets to people the way that wills do but can require that recipients meet certain standards to access or use trust resources.
Those planning complicated legacies may benefit from adding more complex documents to their estate plans. Recognizing when a trust could be beneficial may help people create estate planning documents that effectively address their unique concerns.]]>On Behalf of Kreisher Marshall & Associates, LLChttps://www.columbiacountylaw.com/?p=2544462024-01-31T12:59:06Z2024-01-31T12:59:06Zhave a fiduciary duty to others. A fiduciary duty requires that one party put the best interests of another before their own. A fiduciary is someone in a position of trust and authority who acts on behalf of another party.
What does it mean for a professional to provide fiduciary services, and who generally needs that kind of help?
Professional fiduciaries handle complex needs
Fiduciary services involve professionals performing specific services for individuals, businesses or trusts. A professional fiduciary could assume a guardianship role over a vulnerable adult when they do not have any nearby family members to act on their behalf. They could also hold authority over medical and financial matters through durable power of attorney paperwork.
A professional offering fiduciary services could administer a trust or an estate for an individual. They could manage financial accounts, pay bills and oversee the administration of medical treatment when a person becomes incapacitated. Fiduciary services can even offer certain legal, financial and management resources for businesses.
Who needs a professional fiduciary?
People in many different circumstances may require fiduciary services. Perhaps someone created a trust and named their children as beneficiaries. They may want an unrelated professional to administer the trust to prevent embezzlement and other conflicts.
Those without close family members may rely on fiduciary services for estate matters or their protection if they experience some kind of incapacitating emergency. Those who have families but who do not want to stress their family members or feel they cannot trust them in an emergency could also benefit from securing professional fiduciary services.
Anyone hoping to entrust another party with tasks that could have a major impact on their well-being might require fiduciary services. Hiring the right professionals can have a major impact on someone's security and quality of life.]]>On Behalf of Kreisher Marshall & Associates, LLChttps://www.columbiacountylaw.com/?p=2544372024-01-15T18:11:59Z2024-01-15T18:11:59ZWhat is the lookback period?
A review of someone's finances is a key aspect of the Medicaid application process. Professionals look at not just someone's current resources and income but also any significant transactions or transfers from within the last few years. Currently, Medicaid professionals go back over five years or 60 months of financial records looking for large gifts and transfers, such as intentionally moving assets into a trust.
Any large transfers that occur during the lookback period may trigger a penalty. The state determines the value of those transfers and then converts that into a number of months of care costs. Medicaid does not cover someone's expenses for that set number of months as a penalty for improper financial conduct prior to applying.
The only way to avoid that penalty and qualify for benefits quickly is to plan at least five years before applying for Medicaid. People may want to change how they hold certain assets, including real property and financial accounts. Many adults preparing for retirement may feel a greater sense of financial security if they plan ahead of time to protect their assets and qualify for the medical care coverage they may eventually require.
Advance planning also protects someone from estate recovery efforts. Even those who qualify without a penalty have to worry about the state making a claim against their estate to recruit whatever funds Medicaid distributed to pay for their care. Older adults who take for granted that they can quickly apply for Medicaid when they need benefits sometimes end up disappointed and experiencing significant financial struggles because of current Medicaid rules.
Learning about the Medicaid lookback period, Medicaid penalties and even the estate recovery program may help people see the benefit of planning for their long-term care needs before they actually arise.]]>On Behalf of Kreisher Marshall & Associates, LLChttps://www.columbiacountylaw.com/?p=2544162023-12-14T21:46:16Z2023-12-14T21:46:16ZChanges in behavior or personality
Someone enduring abuse will inevitably experience emotional upheaval and change their social behavior. People experiencing abuse that they cannot escape, including older adults, may begin to withdraw from their interpersonal relationships. Sometimes, they may become more emotional or angry. Other times, they may be less expressive and may fear letting people know how they feel.
Unexplained bruises and injuries
Elder abuse can involve physical violence that can leave marks on people. Other times, elder abuse can involve neglect that leads to someone getting hurt because they do not receive proper support. If someone has injuries not easily explained by reasonable experiences, then elder abuse might be the cause of those injuries.
Unusual financial habits
Financial abuse is a common form of elder abuse. It may occur on its own or in conjunction with other types of abuse and neglect. If someone begins spending their money in a very different manner than before, especially if they burn through cash or start paying for things for other people, those could be warning signs of ongoing elder abuse.
Caregivers not allowing private communication
Whether someone lives with family members or in a nursing home, they should have some degree of privacy. When other people come to visit, an older adult should receive privacy during their interactions with those people. Hovering caregivers can be a warning sign that those people do not want the older adult to communicate honestly about their recent experiences.
Preventable injuries and illnesses
Caregivers can help ensure that an older adult does not fall or develop bedsores. Proper support and regular interactions can significantly reduce the risk of these preventable medical issues. Someone who falls, develops bedsores or has other medical issues that caregivers can prevent may have experienced neglect.
Those who identify warning signs of elder abuse early may be able to protect someone from the worst possible outcomes including loss of major assets, emotional damage and permanent physical injury. Intervening to protect a loved one from elder abuse may require litigation to remove a guardian or to hold professional caregivers accountable for misconduct.]]>On Behalf of Kreisher Marshall & Associates, LLChttps://www.columbiacountylaw.com/?p=2542932023-11-29T00:19:56Z2023-11-29T00:19:56ZDurable documents retain authority for longer
As a general rule, powers of attorney lose their authority when the principal dies. Their testamentary documents take over at that point. However, people are sometimes incapacitated and incapable of caring for themselves for extended lengths of time. The courts could even intervene and declare that someone has lost their testamentary capacity.
Such determinations often occur when an outside party seeks guardianship or conservatorship over an aging adult. Basic powers of attorney may lose their authority when someone becomes permanently incapacitated. The principal is as vulnerable in that situation as someone who never bothered to draft powers of attorney.
However, durable powers of attorney retain their authority even after someone's permanent incapacitation. The person they named in their documents can continue to manage their finances and medical needs. Effectively, properly drafted durable powers of attorney can allow someone to name an individual they trust to handle all of their personal matters if they become permanently incapacitated.
Instead of being subject to the whims of whoever requests legal authority from the courts, an adult preparing for retirement can choose the individual who will manage their finances or medical matters when they become incapable of doing so. Durable powers of attorney, therefore, serve to protect people from involuntary guardianship and the loss of control over their circumstances.
Ultimately, thinking about long-term needs and possible future challenges may help people put together more effective estate plans in Pennsylvania with the assistance of a skilled legal professional.]]>On Behalf of Kreisher Marshall & Associates, LLChttps://www.columbiacountylaw.com/?p=2541852023-09-27T19:19:01Z2023-09-27T19:19:01ZWhat is involved in estate administration
Once your mother or father dies, you'll be responsible for carrying out their last wishes. While it is an honor to do this task, you'll also have a host of legal duties involved inestate administration. You must take care of all financial obligations, including paying debts and taxes, notifying heirs, and properly dispersing the remaining assets. You must also attend any probate court sessions and maintain the property until the estate is settled.
Understanding your responsibilities is essential to sound estate administration. Each of the following steps is essential as you go through the process:
Maintain clear communication
Obtain copies of the death certificate
Locate the original will and other estate documents
Locate, inventory and maintain assets
Determine if probate is necessary
Alert creditors and the Social Security Administration
Open a bank account to deal with estate finances
Pay estate debts and taxes
Distribute the assets
Don't do everything on your own
Estate administration is complicated. The average estate takes one year to resolve. The larger the estate is, the longer it will take and the more tasks you'll have to accomplish. Remember, you'll encounter a flood of emotions, so get help whenever you can. Although you may be tempted to have another family member help you, doing so may not be the best decision.
Many estate tasks can be daunting. Hiring professionals such as tax advisors, investment counselors and other associated professionals can make the process easier. However, before you do so, review Pennsylvania's rules regarding estate administration. Even if you do not directly administer your mother's or father's estate, you are still legally responsible for ensuring everyone follows the rules.]]>On Behalf of Kreisher Marshall & Associates, LLChttps://www.columbiacountylaw.com/?p=2517512023-08-16T18:58:49Z2023-08-16T18:58:49ZOn Behalf of Kreisher Marshall & Associates, LLChttps://www.columbiacountylaw.com/?p=2517492023-08-16T18:59:20Z2023-08-14T18:55:21ZMedicaid Renewal: Be Proactive
You may not yet have received any kind of notification regarding whether you remain eligible for Medicaid. However, there are steps you can take to help ensure the county assistance office has the information it needs to evaluate your eligibility and to renew your coverage promptly.
If you have moved or changed your phone number or email address, reach out to your county assistance office to update your contact information.
Each state will send out a letter to your mailing address regarding your coverage. Be sure to keep an eye out for this communication in your mailbox and timely respond to any requests for information.
You may be asked to fill out a Medicaid renewal form. If so, complete the form and return it as soon as possible.
Consider Consulting an Elder Law Attorney
If you are concerned about the effect of the redetermination process on your Medicaid benefits, consider speaking with a certified elder law attorney in your area. This is especially true if you’ve had any life-changing actions such as divorce, marriage, death of a spouse, receiving an inheritance, selling a home or other real estate to name a few. A certified elder law attorney can help you understand whether you will continue to qualify for Medicaid and also what steps, if any, can be taken to maintain your coverage.]]>