Approximately 62 million people in the United States are over the age of 65-years-old, with this number projected to rise to 84 million by 2054. With such a large number of senior adults, elder law is increasing in demand with each passing year.

Elder law encompasses the legal aspects of long-term care planning, distribution of estate assets, and what happens in the event of a person’s incapacitation. The field also involves counseling individuals on what choices will have the most tax benefits.

In this blog, our PA elder law attorneys provide an overview of elder law, helping to demystify this area of practice.

Areas of Practice

Elder law consists of the following areas of practice:

Legacy Planning

When we think of estate planning, most of us think of signing a last will and testament. A will describes how your assets and property will be divided when you die. Besides having a Will, many people choose to establish a trust. In a trust, you will designate a trustee or a person who holds the title to the property. The proceeds of a trust are intended for the beneficiaries or those who will benefit from the assets.

Pre-Mortem Estate Planning

Estate planning involves more than just post-mortem planning. It also includes drafting a medical power of attorney, durable power of attorney, and living will/advance directive. These are sometimes referred to as “living documents.” They give designated persons the authority to make decisions on your behalf if you are unable to.

While a medical power of attorney allows someone to make medical decisions on your behalf, a durable power of attorney allows someone to handle your finances. The third document, a living will/advance directive, spells out your medical wishes if you become terminally ill and are unable to communicate your desires.

Long-Term Care Planning

At some point, many of us will need assistance with daily activities, from bathing, dressing, going to the bathroom, and walking. Long-term care planning involves researching different services and determining how services will be funded. While many individuals receive in-home care, others may receive support in assisted living facilities and nursing homes.

Fiduciary Representation

Both conservators and guardians are appointed by the probate court once a judge determines that a person is no longer able to make these decisions.

A conservator is appointed to handle one’s funds and property in the event that someone is incapacitated. Similar in nature, a guardian is appointed to take care of a senior adult’s financial, medical, and personal decisions.

Tax Planning

While the Commonwealth of Pennsylvania does not have an estate tax, if your estate is worth more than $13.61 million, then you will be subject to the federal estate tax.

However, Pennsylvania does have an inheritance tax, which consists of the following:

• 0 percent for assets transferred to a surviving spouse or to a parent from a child (21 years old or younger)
• 5 percent for assets that are transferred to direct descendants and lineal heirs
• 12 percent for assets transferred to siblings
• 15 percent for assets transferred to other heirs (except charitable organizations and other exempt entities or government institutions)

Place Your Trust in Our PA Elder Law Attorneys

With the baby boomer generation well into retirement, the field of elder law is dynamic and ever-growing. If you or a loved one need planning for your golden years, our PA elder law legal team is more than happy to guide you. To schedule your consultation, contact us online or by phone today.