We Help Middle Class Families in Pennsylvania Protect their Hard-Earned Wealth
At Keystone Elder Law P.C., our Pennsylvania middle-class asset protection lawyers are skilled, experienced, and committed to helping families put the right plan in place for their specific situation. You worked hard for your wealth: Proactive protection is a must. If you have any questions or concerns about asset protection, we are here to help. Contact us at our Mechanicsburg office today for a fully confidential consultation with a top Pennsylvania middle-class asset protection lawyer.
Aging Brings Serious Risks to Your Assets
As you age, you will face certain inherent financial risks. Indeed, financial stability can become increasingly fragile for people as they enter retirement. Aging generally brings a serious reduction in income as long as a big increase in health care needs. For middle-class people and families in Pennsylvania, the golden years often come with challenges. It is especially true when it comes to protecting what you have worked hard to build. Long-term care needs, medical expenses, and the potential for sudden incapacity can quickly drain savings and assets. Without proactive planning, your entire life savings could quickly be consumed by something like the cost of a nursing home.
Top Asset Protection Strategies for Middle Class Families
Asset protection is complex. There are a number of different potential strategies that may be the key to effective asset protection for people and families in Pennsylvania. A one-size-fits-all approach is definitely not the right path forward. Some of the most common estate protection strategies for middle-class families in Pennsylvania include:
- A Comprehensive Estate Plan: A foundational step in protecting your assets is establishing a clear, legally sound estate plan. Among other things, it can include a will, durable power of attorney, health care directive, and possibly one or more trusts. These documents ensure that your wishes are followed and that a trusted person is appointed to handle your affairs if you become incapacitated.
- Irrevocable Trusts (Medicaid Trust): In Pennsylvania, the Medicaid program has strict asset limits. To qualify without spending down everything, a Medicaid-compliant asset protection can be a valuable tool. By transferring assets into this trust at least five years before applying for Medicaid, those assets are no longer counted as yours. The trust protects them from long-term care costs while still allowing you to benefit.
- Title Assets Properly (Option for Spouses): Joint ownership and beneficiary designations matter. In many cases, how assets are titled can impact both your eligibility for benefits and the protection of your estate. For example, converting certain assets to tenancy by the entirety (a form of joint ownership available to married couples in Pennsylvania) may help shield property from individual creditors.
- Purchase Long-Term Care Insurance: While certainly not suitable for every family, long-term care insurance can provide coverage for nursing home or in-home care expenses, reducing the financial burden on your estate. Notably, these policies vary in cost and coverage, and they are most effective when purchased before significant health issues arise.
- Consider an Early Gifting Strategy: Giving away assets during your lifetime can reduce the size of your estate and may help with Medicaid eligibility. With that being said, the timing and structure matter. Improper gifting can trigger Medicaid penalties. Strategic gifting, especially when coordinated with a trust or estate plan, can help preserve assets.
Why Trust Our Pennsylvania Middle-Class Asset Protection Attorney
Middle class families in the Commonwealth of Pennsylvania work hard for their life savings. It is imperative that they know that aging brings inherent risk to the wealth that they have built. The founder of Keystone Elder Law P.C., Patrick Cawley, is an attorney whom middle-class people and families can trust. We believe in personalized, proactive guidance and support. Along with other things, our Pennsylvania middle-class asset protection lawyer is ready to:
- Hear your story and answer your most pressing estate planning questions;
- Help you gather, prepare, and organize all supporting financial records; and
- Develop a comprehensive strategy designed to help middle-class families protect wealth.
Middle Class Asset Protection in Pennsylvania: Frequently Asked Questions (FAQs)
Is asset protection even worth it for middle-class families?
Yes, absolutely. There is an all-too-common misconception that asset protection is only something that is valuable for the very rich. That is simply not the case. Many middle-class families in Pennsylvania have built up assets. Those assets need to be proactively protected. If they are not, they could face serious risks from a wide range of different things, including long-term care costs.
Can a revocable living trust protect my assets from creditors or lawsuits in Pennsylvania?
No. Although revocable living trusts can be a very valuable estate planning tool, one does not provide protection from creditors or legal judgments because you maintain control over the assets during your lifetime. In Pennsylvania, these assets are still considered part of your estate and subject to claims. For asset protection, an irrevocable trust is a better approach.
Are retirement accounts like 401(k)s and IRAs protected from creditors in Pennsylvania?
Under Pennsylvania law, qualified retirement accounts such as 401(k)s and traditional IRAs receive substantial protection from most creditors. However, once funds are withdrawn, they may lose that protection. Inherited IRAs may not receive the same level of protection. A Pennsylvania middle-class asset protection lawyer can help.
Is it too late to protect my assets if I am already retired?
No. You should still take action to protect your assets. Indeed, it is never too late to put the proper protections in place. With that being said, your options may become more limited the longer you wait. Still, even in retirement, you can still take steps to guard assets against future risks. A Pennsylvania estate planning attorney can help you create a customized strategy based on your current situation.
Contact Our Pennsylvania Middle-Class Asset Protection Lawyer Today
At Keystone Elder Law P.C., our Pennsylvania estate planning and elder law attorneys are standing by, ready to help middle-class families protect their assets. You worked hard for your life savings: Let us help you preserve it. Contact us now to arrange a fully confidential, no-obligation initial consultation. Our firm helps middle-class families in Pennsylvania protect their assets.
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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.
What an amazing team you have!!! Taking charge and getting things done, but also being so understanding and compassionate
Empowering Clients with Holistic Planning at
Keystone Elder Law
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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