Gas Lease Planning

Planning for the Zombie Tax

Drug Benefit Expanded for Seniors with Modest Incomes

 

Pennsylvania Reduces State Supplementary Payments

For Some SSI Beneficiaries

 

New Law Affects Medicaid Applications for Veterans

 

Congratulations!

 Attorneys Grebas and Weber Become Principals at Marshall, Parker

 

Follow Jeff Marshall on Twitter

 

Free Consumer Workshops Set for January & February

 

Veteran’s Aid & Attendance Presentation Set at Elmcroft of MidValley

 

Save the Date!  Marshall, Parker & Associates’ 14th Annual Professional Update Set for May 20th and May 21st

 

 

 

 

 

Gas Lease Planning

 

Written By: Attorney Dale A. Tice

 

Development of the natural gas reserves in the Marcellus shale is having a tremendous impact on landowners in our area.  First, the leasing boom hit as cash bonus payments spiraled upwards. Now, drilling activity has begun to increase and is projected to further accelerate over the coming years as the production from the initial wells exceeds expectations.

 

It seems that hardly a week goes by without another newspaper article discussing the impact of the Marcellus shale, both positive and negative.  Pennsylvania has even been described as the “Saudi Arabia of natural gas .” For better or for worse, the gas companies are here to stay and landowners need to be prepared to deal with the consequences, both legal and financial.

 

At the beginning of 2010 it may seem that the leasing frenzy has reached its peak, and is now beginning to decline.  At times it has appeared that the gas leasing boom has bust.  However, cash bonus and royalty offers have increased dramatically over the last year, with competition between gas companies driving up the lease prices.  Although many landowners have already entered leases, there are still leasing opportunities for those who have not yet signed, particularly for individuals in the areas where drilling is taking place.

 

Landowners who are considering a lease offer must make sure that they fully understand the various terms that appear in the lease.  Upon first glance an oil and gas lease may look as if it is written in a foreign language, but with professional guidance landowners can understand the significance of the different lease provisions.  Of course, the lease that the landman proposes for you to sign has been written to best protect the gas company’s interest.  However, landowners are often able to negotiate more favorable lease terms through the use of addenda added to the industry lease. 

 

Factors that will influence your ability to negotiate a landowner-friendly lease include the amount of acreage being leased, your proximity to drilling activity or gas production and the competition between gas companies for leases in your area.  Underlying these factors is the timing of your lease negotiations – over the course of months or even weeks lease offers can rise and fall.

 

The importance of taking the time to have your lease reviewed by a competent professional cannot be overstated.  While the lease may include a fixed five year term, if the gas company drills and subsequently produces gas the lease will be extended for as long as production continues, potentially for many years.  The lease that you sign today may continue to impact your children and grandchildren years from now.

 

Negotiating a good lease with the gas company is only the first step.  Landowners in proximity to gas production may be asked to sign additional agreements including a pipeline right-of-way agreement, surface use agreement or a damage release.  Those landowners fortunate enough to receive royalties will be asked to sign a document called a division order before royalty checks are issued.  In addition, you may receive various notices such as a notice with information regarding the location of a proposed well, notice that your water well is within 1000 feet of a proposed well or a drilling notice.  It is strongly advised that landowners have any of these documents reviewed by an attorney before signing.

 

Landowners who have signed an oil and gas lease must also give thought to planning to protect this resource and the income it may produce for their family over successive generations.  To ensure that a comprehensive plan is in place, it will require the expertise of various professionals including an attorney, accountant and a financial planner.

 

The law firm of Marshall, Parker & Associates recognizes the need for quality legal counsel in this area of law that is new to central and northeastern Pennsylvania.  We are pleased to offer the services of Attorney Dale A. Tice, who joined our firm in December of 2009. Dale has extensive experience reviewing oil and gas leases and negotiating lease terms for landowners.  He has presented numerous educational programs with the Penn State Cooperative Extension, and has served as a faculty member presenting educational seminars for lawyers with the Pennsylvania Bar Institute.  Please contact Dale for assistance with review and negotiation of an oil and gas lease or of any of the documents discussed above, or if you have questions related to oil and gas leasing.

 

 

Attorney Tice can be contacted at webmail@paelderlaw.com or at 1-800-401-4552. More information about Attorney Tice is available on our website at www.paelderlaw.com/staff.html

 

 

 

Planning for the Zombie Tax

 

Written By: Attorney Jeffrey A. Marshall, CELA *

 

The old saying is that “nothing is certain but death and taxes.”  But this year it’s the combination of death and taxes that is causing a lot of uncertainty.

 

Nine years ago Congress passed a law to temporarily repeal the federal estate tax (but not the gift tax) for one year - 2010.  In 2011, the old rules will apply and your estate will only be able to exclude the first $1 million of taxable interests (indexed for inflation) from the estate tax. Last year the exemption was $3.5 million, so returning to a $1 million threshold is a big step backward. Like a zombie, the estate tax dies briefly then comes back with vengeance. 

 

No estate tax for one year and then a confiscatory tax the next. Even for Congress, this was a particularly boneheaded way to deal with taxes. Everyone assumed that Congress would make some kind of sensible revision to the tax law before 2010.  After all, it had 9 years to deal with the issue.  Unfortunately, a contentious and distracted Congress has failed to address the estate tax issue. 

 

This means that we are now in a situation where there is currently no estate tax for this year only.  It is reminiscent of the “blue light special” at K-Mart.  But don’t die just yet.  Leaders in Congress have threatened to pass a law that will retroactively repeal the one year repeal.  As my wife, (a non-lawyer) likes to ask me, “Is that legal?” The answer is, I don’t know.  I don’t think anyone does know. But the threat adds even more uncertainty to 2010.

 

Given the unnecessary mess created by Congressional inaction, what should you do to protect your family? 

 

If your federal taxable estate is worth over $3.5 million, you hopefully have a plan already in place.  If not, pick up the phone right now and call your lawyer.  A few of you who are married may have set up a plan that leaves your children the maximum amount that can pass tax free to your children with the remainder to your spouse. If so, you should also phone your lawyer and talk about revising your plan.  Your plan may unintentionally result in disinheritance of your spouse. If your plan leaves everything to your spouse and allows her to disclaim to the children or a trust, you should be okay for the time being. You can wait and see if Congress does anything about this problem in the next few months.  You should talk with your lawyer later in the year.

 

If you have a taxable estate of between $1 million and $3.5 million, you may want to sit tight for the moment.  There is no federal estate tax right now.  If Congress does not act to change the law before the end of 2010, you will need to speak with your lawyer before the start of 2011.  The decrease in the tax exclusion amount will mean you may want to change your plan.  

 

Attorney Marshall can be contacted at webmail@paelderlaw.com or at 1-800-401-4552. More information about Attorney Marshall is available on our website at www.paelderlaw.com/staff.html

 

 

 

Drug Benefit Expanded for Seniors with Modest Incomes

 

Written By: Attorney Jeffrey A. Marshall, CELA *

 

 

More Medicare beneficiaries can qualify this year for “Extra Help” with their Medicare prescription drug plan costs because some things no longer count as income and resources. “Extra Help” helps pay for the costs–monthly premiums, annual deductibles, and prescription co-payments–related to a Medicare prescription drug plan. Extra Help is estimated to be worth an average of $3,900 per year.

 

To qualify for Extra Help, a person must be on Medicare and have limited income and resources. Under the old law, applicants had to include money received on a regular basis from relatives and friends to help pay household expenses as part of their income. They also had to include the value of life insurance policies in calculating their assets. Effective January 1, 2010, these types of support and life insurance are no longer counted.  It is estimated that these changes will mean that more than 1 million additional seniors will qualify for Extra Help.

 

In general, Extra Help income limits are $16,245 a year for singles and $21,855 for married couples living together. But even if your annual income is higher, you still may be able to get some help. Some examples where your income may be higher are if you or your spouse:

 

    * Support other family members who live with you;

    * Have earnings from work; or

    * Live in Alaska or Hawaii.

 

In addition, your combined savings, investments, and real estate must not be worth more than $25,010, if you are married and living with your spouse, or $12,510 if you are not currently married or not living with your spouse. (But these resource limits DO NOT include the home you live in, vehicles, personal possessions, burial plots, irrevocable burial contracts or back payments from Social Security or SSI.)

It is easy to apply for Extra Help. Just complete Social Security’s Application for Extra Help with Medicare Prescription Drug Plan Costs (SSA-1020) . Here’s how:

• You can apply online at www.socialsecurity.gov ;
• Call Social Security at 1-800-772-1213 (TTY 1-800-325-0778) to apply over the phone or to request an application; or
• Apply at your local Social Security office .

If you already receive Extra Help, you will not need to reapply in 2010. Social Security will see if you are entitled to any additional Extra Help since they no longer count your life insurance or help with household expenses.

 

For more information:

Extra Help forms and publications

See if you qualify for Extra Help and apply

 

Attorney Marshall can be contacted at webmail@paelderlaw.com or at 1-800-401-4552. More information about Attorney Marshall is available on our website at www.paelderlaw.com/staff.html

 

 

 

 

Pennsylvania Reduces State Supplementary Payments

For Some SSI Beneficiaries

 

 

Written by: Attorney Brenda Colbert, CELA*

 

Some recipients of Supplemental Security Income (SSI) will soon see a reduction in their monthly payments.  Effective February 2010, the Pennsylvania Department of Public Welfare is cutting the State Supplement Payment (SSP) to individuals living independently from $27.40/month to $22.10/month and individuals living in the home of another from $27.40/month to $25.53/month.  For couples receiving SSI and living independently, the decrease will be from $43.70/month to $33.30/month and a couple living in the home of another will see a decrease in the SSP from $43.70/month to $38.44/month.  Individuals and couples residing in Domiciliary Care Homes and Personal Care Homes will not see a reduction in their SSP.

You may submit written comments regarding this change to the Department of Public Welfare at the following address:  Edward J. Zogby, Bureau of Policy, Room 431, Health and Welfare Building, Harrisburg, PA 17105, or at ezogby@state.pa.us . Persons with a disability who require an auxiliary aid or service may submit comments using the Pennsylvania AT&T Relay Service at (800) 654-5984 (TDD users) or (800) 654-5988 (voice users).

 

 

 

New Law Affects Medicaid Applications for Veterans

 

Written By: Attorney Jeffrey A. Marshall, CELA *

 

Act 54 of 2009 was enacted on December 17, 2009.  It makes two changes in the Welfare Code that affect Medical Assistance (MA) benefits. Section 1 requires Veterans who are applying for MA to contact a Veteran Service Officer in the county of residence to determine whether the Veteran is eligible for Veteran’s benefits. The Veteran must provide proof of compliance with this requirement.

 

Section 3 of Act 54 does away with the illegitimate $10,000 limitation that existing law (Act 42) attempts to place on the deduction of prior medical expenses when determining an MA recipient’s co-payment towards the cost of LTC services.

 

The new law is effective immediately, although the VA benefits section should take a little time to implement. 

 

 

To view the relevant new sections of the law, check out our website at www.paelderlaw.com/pdf/Act_54_provisions.pdf  

*Please note that the new language is underlined

 

Attorney Marshall can be contacted at webmail@paelderlaw.com or at 1-800-401-4552. More information about Attorney Marshall is available on our website at www.paelderlaw.com/staff.html

 

 

 

Congratulations!

 Attorneys Grebas and Weber Become Principals at Marshall, Parker

 

Written By: Melissa Bottorf, Director of Marketing & Business Development

 

Marshall, Parker & Associates, LLC is pleased to announce that Attorney Kevin R. Grebas and Attorney Tammy A. Weber have become principals of our law firm. This means that they have become part owners and managers of the firm.

 

Attorney Grebas is a native of Scranton. He graduated from the University of Scranton and received his law degree from the Dickinson School of Law of the Pennsylvania State University. Attorney Grebas has attained to coveted status of Certified Elder Law Attorney by the National Elder Law Foundation. Kevin resides in Old Forge with his wife Gina, a teacher.

 

Attorney Weber is a native of Muncy. She graduated Magna Cum Laude from Lycoming College and received her law degree from Temple University. Prior to joining Marshall, Parker she served as an Assistant United States Attorney where she was involved with major federal investigations and prosecutions. Tammy has also attained Certification as an Elder Law Attorney by the National Elder Law Foundation. She enjoys volunteering at her church and playing the piano in her spare time. Her daughter Sarah attends the University of Pittsburgh. 

 

Melissa can be contacted at webmail@paelderlaw.com or at 1-800-401-4552. More information about Melissa is available on our website at www.paelderlaw.com/staff.html

 

 

 

Follow Jeff Marshall on Twitter

 

As an additional way to help you stay on top of the ever-changing world of elder and special needs law, our managing attorney is now “tweeting” on Twitter. You can follow Jeff Marshall at http://twitter.com/ElderLawGuy . Just click on that link or on the Twitter link below in this newsletter.

 

Jeff is giving his “followers” links to online articles he is reading on issues of importance to seniors and to people who may need long term supports and services. Here are some examples:

                           

 

-At what age should you begin claiming Social Security benefits?  Social Security Claiming Guide -

http://crr.bc.edu/social_security_guide

 

-Special Needs Kids - Understanding Higher Learning Options -

http://www.paspecialneedslaw.com/?page_id=127

                           

-A Profile of Older Americans: 2009-

http://tinyurl.com/yhcpqtx

 

-Risk-Free Yield? Consider I Bonds -

http://tinyurl.com/ylm2wv9

 

-"Legal Guide for the Seriously Ill" by the American Bar Association is available free online-

http://tinyurl.com/yc4oacj

 

-Funerals: A Consumer Guide - advice from the Federal Trade Commission -

http://tinyurl.com/69b4f7

 

For those of you who aren’t familiar with Twitter, it’s basically “micro-blogging.” Writers are forced to communicate in 140 characters or less (which is exceedingly tough for lawyers to do). You can get lots of information very quickly.  It’s free to sign up. Plus, it’s fun.  Sign up to be able to access all of Jeff’s “tweets.”

 

Follow Marshall, Parker & Associates’ Managing Attorney

Jeff Marshall on twitter at:

www.twitter.com/ElderLawGuy  

 

 

 

Join Marshall, Parker & Associates for our FREE Consumer Workshops to Learn How to Protect Your Home & Assets from Long Term Care Costs

 

- Protect Your Home & Assets from Long Term Care Costs-

Saturday, January 23, 2010 from 10:00 AM until 12:00 PM at Orlando’s in Muncy

 

- Protect Your Home & Assets from Long Term Care Costs-

Saturday, January 23, 2010 from 10:00 AM until 12:00 PM at The Irem Country Club in Dallas

 

-Protect Your Home & Assets from Long Term Care Costs-

Saturday, February 6, 2010 from 10:00 AM until 12:00 PM at The Clinton Country Club in Mill Hall/Lock Haven

 

- Protect Your Home & Assets from Long Term Care Costs-

Saturday, February 6, 2010 from 10:00 AM until 12:00 PM at The Waterfront Banquet Facility in Plains

 

 

 

Veteran’s Aid & Attendance Presentation Set at Elmcroft of MidValley

 

Did you know that the Aid & Attendance Benefit is available to Veterans and their widows if they need assistance in eating, dressing, bathing or other activities? It can pay for in-home or care at an assisted living facility.

Join Marshall, Parker & Associates’ VA Accredited Attorney Kevin R. Grebas and Lackawanna County Veteran’s Affairs Coordinator, Anissa Fetchen for an information session on January 27th at 6:30 PM.  Elmcroft of MidValley, 89 Sturges Road in Peckville, will sponsor the event. If you would like to attend, please RSVP to Elmcroft at 383-9090. A copy of the flier is available on our website at http://www.paelderlaw.com/pdf/MidValley_VA.pdf

 

 

 

Save the Date! 14th Annual Professional Update is set for May

 

Don’t miss the area’s premier event for elder and special needs professionals!  We have scheduled the 14th Annual Professional Update for Thursday, May 20, 2010 at the Williamsport Genetti and Friday, May 21, 2010 at the Hilton Hotel & Convention Center in Scranton. 

 

Each year we gather experts from across the state and the nation to bring our local community up-to-date on the latest trends affecting the seniors and individuals with special needs.  The program is offered free of charge and will run from 8:00 AM until 12:00 PM.  Various CEUs will be offered at little or no cost to attendees. So, mark your calendar now and watch for more information about this year’s speakers and topics.

 

 

 

Contacting Marshall, Parker & Associates  for Assistance   Marshall, Parker & Associates is a nationally recognized law firm which provides long-term care planning, estate planning, special needs planning, & estate administration services to Pennsylvania clients from our offices in Jersey Shore, Williamsport, Wilkes-Barre and Scranton.   Marshall, Parker & Associates is the ONLY law firm in the United States with more than two Certified Elder Law Attorneys (CELAs) on its staff.  Five of our attorneys are CELAs.  CELA status, which has been attained by only 37 attorneys in Pennsylvania, is authorized by the Pennsylvania Supreme Court.  In approving the CELA professional designation, the Supreme Court found that it provides a measure of assurance to the public that the attorney has an in-depth working knowledge of the legal issues impacting the elderly.   If you or someone you know needs assistance with estate planning or with qualification for Medicaid benefits for nursing home care, you can trust the specialists at Marshall, Parker & Associates.  Please call us toll free at 1-800-401-4552 or e-mail our Scheduling Coordinator, Lynn Wesley at webmail@paelderlaw.com

 

Back issues of The Elder Care Law Alert are available on our website. 

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*Attorneys Marshall, Parker, Grebas, Weber & Colbert are all certified as Elder Law Attorneys by the National Elder Law Foundation under authorization from the Pennsylvania Supreme Court.

**In addition to her law degree and CELA status, Attorney Colbert holds an advanced legal degree (LLM) in Estate Planning from the University of Miami School of Law.

 

 

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