With 57.8 million adults 65 years of age and older, elder law is an evolving field of practice. In broad terms, elder law encompasses offering legal guidance to senior adults and planning for special needs persons. Described in further detail, the field involves providing long-term care planning, estate planning, fiduciary representation, tax planning, and planning for special needs persons.
Keep reading to learn about the various aspects of elder law and why aging Americans should consider hiring a PA elder law attorney.
Major Areas of Practice
Elder law can be broken down into the following areas of practice:
Long-Term Care Planning
It is difficult to see a parent get older or to be the parent who can no longer handle daily chores. The reality is that many of us will need to be placed in a long-term care facility as we get older. Besides helping you choose which assisted living center or nursing home best fits your needs, an elder law attorney can help you and your family with paying for the facility.
Estate Planning
A basic estate plan usually includes a (1) will, (2) financial power of attorney, (3) medical power of attorney, and (4) living will/advance directive. Most of us are familiar with a will, which designates how your assets will be distributed upon your death.
However, estate planning is more than just planning for after you die. Estate planning involves who will handle your finances (durable power of attorney) and health care decisions (medical power of attorney) in the event that you are deemed incompetent or incapacitated.
The fourth document listed, a living will/advance directive, spells out your medical preferences if you are terminally ill and unable to express your desires. In an advance directive, you can indicate if you wish to receive life-sustaining treatment if you do not have the ability to communicate it to a physician.
Guardianship/Conservatorship & Advising on Fiduciary Responsibilities
If you believe that a family member can no longer handle his or her finances or medical decisions, the court may appoint a guardian/conservator. If the individual prepared a financial or health care POA, a fiduciary appointment will not be necessary.
While a guardian may be appointed to handle a person’s medical or personal affairs, a conservator is usually appointed solely to handle finances. In addition to helping you secure the appointment, a PA elder law lawyer will advise you on your role as fiduciary.
Tax Planning
An individual estate that exceeds $13.61 million will be subject to the federal estate tax. However, the state of Pennsylvania does not recognize an estate tax, no matter the worth of your estate.
Nonetheless, the Commonwealth of 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
- Fifteen percent for assets transferred to other heirs (except charitable organizations and other exempt entities or government institutions)
There are ways to minimize both estate taxes (if you are over the federal threshold) and inheritance taxes. It may be as simple as placing assets in a trust or gifting them to family members. A PA elder law attorney can help discuss your options to see what best suits your needs.
Special Needs Planning
A special needs trust provides financial resources for a disabled person who receives or may receive Medical Assistance (MA) or Supplemental Security Income (SSI) in the future. A special needs individual will not qualify for MA or SSI unless he or she has $2,000 or less in assets. Therefore, money is placed in a trust to get funds out of the individual’s name, allowing him or her to still qualify for government benefits.
There are three types of Special Needs Trusts in Pennsylvania:
- Common Law Special Needs Trust
- Payback Trust
- Pooled Trust
If you have a special needs family member or child, a PA elder law attorney can discuss the differences between these options and help you decide which works best based on the individual’s financial picture.
PA Elder Law Lawyers Looking Out for You
Estate planning is multi-faceted, requiring attention to detail and an understanding of complexities under the law. As you age, you need to allow yourself the peace of mind to know that your personal needs and those of your children are satisfied.
If you are interested in planning for yourself or a loved one, we are more than happy to offer you guidance. To learn more about our elder law services, contact us online to schedule your initial consultation.