Providing Expert Guidance and Estate Planning Services for Personal Representatives and Trustees
At Keystone Elder Law, P.C., we offer comprehensive estate planning services and legal guidance for a wide range of estate and trust administration matters in Harrisburg, Pennsylvania. Administering a loved one’s affairs after their passing can be overwhelming, leaving family members with many questions and uncertainties. Our team is here to address your concerns, guide you through each step of the administration process, and help you successfully bring the estate or trust to its conclusion.
Distinct Forms of Administration for Pennsylvania Trusts and Estates
It’s important to understand that a trust and a probate estate are separate legal entities. A probate estate is administered by an executor or personal representative and includes solely owned property of the deceased. Estate administration involves managing the estate by the personal representative, including probate filings, asset collection, debt payment, and ensuring compliance with legal obligations. Assets held jointly with another person, such as a spouse or child, are not part of the probate estate.
If the deceased left a will, the probate estate is administered according to its terms. This involves appointing a personal representative and distributing the estate’s property to beneficiaries after settling debts and administration expenses. In the absence of a valid will, Pennsylvania’s intestacy law governs the administration of the estate. The probate process can be lengthy and costly, but it is necessary to validate the will and distribute assets accordingly.
Assets placed in a trust during a person’s lifetime are not considered part of the probate estate. Many Harrisburg residents utilize “living trusts” to bypass regular probate administration. In a living trust, assets are titled in the name of one or more trustees, who administer them for the benefit of named beneficiaries. While alive, the grantor can serve as their own trustee and beneficiary. However, upon their passing, a successor trustee takes over to administer and distribute the remaining assets according to the grantor’s wishes. Inheritance tax implications must also be considered, as different rates apply to various beneficiaries in Pennsylvania, and accurate tax return filings are essential for both state and federal taxes.
It’s common for individuals to have both a trust and a will, as each serves a distinct estate planning purpose. In many cases, the same person fulfills the roles of personal representative for the estate and successor trustee for the trust. Even when different individuals assume these roles, coordination is often necessary to ensure a smooth administration process between the two entities.
Contact Keystone Elder Law, P.C., Today
As a personal representative or trustee, you hold a fiduciary duty to fulfill your legal responsibilities to the best of your ability. Experienced estate planning attorneys can provide valuable assistance in honoring your loved one’s final wishes and carrying out your duties professionally. Keystone Elder Law offers estate planning services to help manage your assets and ensure your wishes are honored. If you’re involved in any matter related to the administration of a trust or estate in South Central Pennsylvania, don’t hesitate to contact Keystone Elder Law, P.C., today to schedule a consultation. We are here to support you throughout the process.
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REGISTER HERE for LONG-TERM CARE PLANNINGPower of Attorney
A Power of Attorney can be used to give another person the right to sell a car, home, or other property in the place of the maker of the Power of Attorney. A Power of Attorney might be used to allow another person to sign a contract for the maker of the Power of Attorney (the person who makes a power of attorney is called the “principal”). It can be used to give another person the authority to make health care decisions, do financial transactions, or sign legal documents that the principal cannot do for one reason or another. With few exceptions, Powers of Attorney can give others the right to do any legal acts that the makers of the Powers of Attorney could do them themselves. A General Power of Attorney gives the “power of attorney Agent” or simply “Agent” (the legal name of the person who is authorized to act for the principal) very broad powers to do almost every legal act that the principal can do. When Elder Law Attorneys draft general Powers of Attorney, they still list the types of things the Agent can do but these powers are very broad. People often do general Powers of Attorney to plan ahead for the day when they may not be able to take care of things themselves. By doing the General Power of Attorney, they designate someone who can do these things for them.
Normal Powers of Attorney terminate if and when the principal becomes incompetent. Yet many people do Powers of Attorney for the sole purpose of designating someone else to act for them if they cannot act for themselves. It is precisely when persons can no longer do for themselves that a Power of Attorney is most valuable. To remedy this inconsistency, the law created a Durable Power of Attorney that remains effective even if a person becomes incompetent. The only thing that distinguishes a Durable Power of Attorney from a regular Power of Attorney is special wording that states that the power survives the principal’s incapacity. Even a Durable Power of Attorney, however, may be terminated under certain circumstances if court proceedings are filed. Most Powers of Attorney done today are durable.
Yes. At the time the Power of Attorney is signed, the principal must be capable of understanding the document. Although a Power of Attorney is still valid if and when a person becomes incompetent, the principal must understand what he or she is signing at the moment of execution. That means a person can be suffering from dementia or Alzheimer’s Disease or be otherwise incompetent sometimes but as long as they have a lucid moment and are competent at the moment they sign the Power of Attorney, it is valid even if they do not remember signing it at a later date. At the time it is signed, the principal must know what the Power of Attorney does, whom they are giving the Power of Attorney to, and what property may be affected by the Power of Attorney.
Any competent person eighteen years of age and older can serve as an agent. Certain financial institutions can also serve. There is no course of education that agent must complete or any test that Agent must pass. Because a Power of Attorney is such a potentially powerful document, agents should be chosen for reliability and trustworthiness. In the wrong hands, a Power of Attorney can be a license to steal. It can be a big responsibility to serve as an agent.
For Medicaid
Medicare is health insurance and covers medical services such as physician appointments, therapy, blood tests, x rays, medical procedures and hospitalization. Medicare will sometime pay for rehabilitation in a long-term care facility for a period of 20 to 100 days, but not longer. In long-term care, Medicaid covers the cost of ongoing support services for daily functioning, such as room and board in a nursing home.
Medicaid is a federal program that is overseen by the Center for Medicare and Medicaid Services (CMS). In Pennsylvania, Medicaid is called Medical Assistance and is administered by the Department of Human Services (DHS).
In Pennsylvania, Medicaid funds are not available to pay for assisted living or personal care.
For Medicaid to pay for care in a nursing home, an individual recipient must be determined to need a nursing home level of care by a physician and the local Office of Aging. An individual whose income is not greater than three times the poverty level may keep up to $8,000 of total resources, but may otherwise keep only $2,400. The cash value of life insurance counts as a resource, but one car and a residential home does not count as a resource.
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At Keystone Elder Law, we believe that the physical, social, legal, and financial considerations of our clients all intertwine. We utilize an interdisciplinary approach to evaluate each area, which allows for the creation of a plan that addresses the concerns of the individual as a whole as well as the family. To this end, our model of practice includes a Care Coordinator (usually a nurse or social worker), whose expertise complements our team of attorneys.
When the road of life is smooth, decisions about legal and financial matters are easy to push aside for “a rainy day.” Planning ahead, however, will allow for more options as you view the map of where you’ve been and where you want to go. Don’t let a crisis limit your choices or derail your plans.
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