Possible Changes to Pennsylvania’s Power Of Attorney Statute Written By: Attorney Kevin R. Grebas, CELA*   Change may be coming to the law that governs Powers of Attorney in Pennsylvania.  On May 7, 2010, new legislation, known as Senate Bill 1358, was introduced in the Pennsylvania Senate. The bill would amend portions of the Pennsylvania Consolidated Statutes that deal specifically with financial and healthcare powers of attorney.      A financial power of attorney is a legal document through which a person (the Principal) appoints another person (the Agent) to manage his or her financial and legal affairs.  Under current Pennsylvania law, if a Principal wishes to grant the Agent the authority to transfer ownership of assets from the Principal to other individuals, the power of attorney document must specifically authorize gifts.  Gifts can be either “limited” or “unlimited” in nature and must be specified in the power of attorney document.    Senate Bill 1358 seeks to implement additional requirements for the authorization of “unlimited gifts”.  If the new legislation is enacted, the power of attorney document would have to identify the recipient of the gifts by name, relationship to the Principal, class or other description.  The power of attorney document would also be required to specify the property or the amounts of money to be gifted.      In addition, the new legislation would create provisions to deal with the investigation of financial abuse and mismanagement by the Agent.  It would authorize the court to order an investigation, make a referral to an appropriate agency and take any other action regarding allegations that the Principal is suffering from financial abuse or mismanagement at the hands of the Agent.   Health Care Powers of Attorney are also addressed in Senate Bill 1358.  A health care power of attorney is a legally enforceable document through which the Principal authorizes another person (the Agent) to make health-care decisions for the Principal when the Principal is unable to do so.  The new legislation would clarify the authority of the Health Care Agent and specifically include language authorizing the Agent to admit the Principal to a medical, nursing, residential or similar facility, and to enter into agreements for the Principal’s care.  Such powers are implied in the current law but are not specifically mentioned.     Senate Bill 1358 is still in its very early stages.  Time will tell if this legislation is able to gain the support needed to become law. __________________________________________________   Gas Law Lingo: Defined & Explained Written By: Attorney Dale A. Tice   This is the second installment in a series written by Marshall, Parker lawyer Dale A. Tice.  Dale is a nationally recognized expert on planning for landowners in the Marcellus Shale regions of Pennsylvania.  He has been quoted in the New York Times and Investor’s Business Daily. Over the next several issues of this newsletter, Dale will define a common term used in the Marcellus shale industry and then explain why it’s important to you as a landowner, professional or consumer living in our region.  If you would like regularly updated information about gas developments in the Marcellus shale, you can also follow Dale Tice on Twitter at PAGasLawGuy.  What is the Meaning of “Held by Production”?   Many of the oil and gas leases used by the gas companies leasing in the Marcellus shale include a primary term of five years.  This means that the gas company has five years to begin drilling operations on the leased premises or the lease will expire at the end of the primary term.  Although the lease may not specifically include the expression “secondary term”, the gas lease moves into the secondary term when drilling operations begin and then is extended as long as gas is produced in paying quantities.  The industry term used to describe a gas lease that is extended in this manner is “held by production”. The gas leases used by the oil and gas companies operating in the Marcellus shale also include a provision allowing the gas company to pool the landowner’s premises with other leased properties to form a production unit.  Landowners signing a gas lease must understand that commencement of drilling operations anywhere on the unit extends the entire production unit into the secondary term.  As a result, a producing well holds by production all of the property placed in the unit. The oil and gas companies operating in the Marcellus are spending millions of dollars on lease cash bonus payments.  Naturally, the companies don’t want these leases to expire as they may be forced to approach the landowner with a new lease at the end of the primary term.  Negotiating another lease is particularly unattractive to the operators in light of the general trend for cash bonus payments to increase as the Marcellus play matures.  To avoid this result, the gas companies have increased drilling activity despite low natural gas prices.  Chesapeake Energy CEO Aubrey McClendon has said that up to 50% of all natural gas drilling is done to retain leases that would otherwise expire. Clearly, it is the goal of the gas companies to hold as much land by production as possible.  Because production of gas will hold all of the acreage in the pooled unit, the gas companies have an incentive to make large production units.  In fact, some companies have requested that landowners sign an amendment to their gas leases to remove any limit on the size of a production unit.  Before signing any amendment to a gas lease, landowners need to understand the impact the amendment may have on their future royalties.   Property Tax/Rent Rebate Deadline Extended The deadline to apply for Pennsylvania’s Property Tax/Rent Rebate Program has been extended from June 30, 2010 to December 31, 2010.  The program benefits senior citizens who are 65 years of age or older, as well as widows and widowers who are 50 or older, and persons with disabilities who are age 18 and over.  In order to qualify, an individual must meet certain income limits and pay property taxes or rent for his or her home.  Below is a listing of the rebates available to homeowners and renters based upon income:   Homeowners:  Income: $0 to $8,000 = $650 Rebate Income: $8,001 to $15,000 = $500 Rebate Income: $15,001 to $18,000 = $300 Rebate Income: $18,001 to $35,000 = $250 Rebate   Renters: Income $0 to $8,000 = $650 Rebate Income $8,001 to $15,000 = $500 Rebate   For most homeowners the maximum rebate is $650.  Those who live in Scranton, Philadelphia and Pittsburgh may be eligible for an additional tax rebate of up to $325.  As a result, homeowners in those cities may receive a rebate as high as $975.   Homeowners and renters can receive applications for the rebate program by calling 1-888-222-9190 or by contacting their local Area Agency on Aging.    ______________________________________________________________   The Role of the Personal Representative in Administering an Estate   Written By: Gloria Macario Kizis, Estate Planning Paralegal     You have been named as the Executor of an estate.  What do you do and where do you start?   The first thing you must do is appear before the Register of Wills in the County where the estate is being probated in order to receive your appointment as Executor.  Probate is the court controlled process by which the assets of the estate are managed from the time of the decedent’s death until such assets are distributed to the beneficiaries.   Once you have been appointed, the Register of Wills issues Letters Testamentary which will give you the authority to act on behalf of the Estate. Your duties and responsibilities as Executor of an Estate can be numerous, but can generally be categorized as follows:   -       Gather all property of the decedent, whether real or personal   -       Determine the value of the assets and arrange for appraisals when necessary   -       Pay all valid claims from creditors   -       File the necessary inheritance tax return and income tax returns in a timely fashion   -       Distribute the net assets of the estate according to the terms of the accounting or Family Settlement Agreement.   You are entitled to compensation for acting as an Executor.  The amount of compensation is determined by the amount of work you perform.  Keep in mind that whatever compensation you receive from the Estate will be subject to income taxation because it is earned income.  The amount of your fee is subject to review by the Court.   The administration of an estate typically takes approximately 12 to 15 months although some estates may be concluded in less time.  In most cases, the size of the estate and the type of assets dictate the time frame for the estate’s completion.   Although there is no legal requirement that you contract the services of any attorney to help you administer an estate, it is good common sense to do so.  Few people have the legal knowledge to administer an estate and you may be held personally responsible if you fail to properly handle the estate or if you fail to ensure that the taxes are paid.  It is in your best interest and the best interest of the beneficiaries to hire an experienced lawyer to help you through this process.   At Marshall, Parker & Associates we strive to make your work as a Personal Representative as easy as possible.  We believe our job is to assist and guide you through the Estate Administration process and to ensure that the Estate is administered and distribution is made pursuant to Pennsylvania law.   _____________________________________________________________   Angel Food Ministries Written by: Attorney Brenda D. Colbert, LL.M, CELA*     Angel Food Ministries is a non-profit, non-denominational organization that provides food relief to communities throughout the United States.  Its mission is accomplished through local Host Sites, usually community churches.  Orders are taken and distributed through the local Host Sites.   Angel Food provides high quality foods at significantly discounted prices.  One “Unit” of food is estimated to feed a family of four for one week or a single person for one month.  The cost for one Unit, which has an estimated grocery store value of between $42.00 and $78.00, is just $30.00.  Angel Food also participates in the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps. The Unit consists of a variety of fresh and frozen foods, for example, this June’s menu consists of sirloin steaks, skinless chicken breasts, green beans, Idaho potatoes, among other items.  Also available are Convenience Meals, which are fully-cooked, nutritionally balanced meals that the consumer just heats and serves. There is no limit to the number of units that an individual or family can receive.  There are no financial requirements to qualify for this program and no applications to complete.   For more information, to view this month’s menu, or to find the closest Host Site go to www.angelfoodministries.com.       Contacting Marshall, Parker & Associates 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.  Only a lawyer who meets all of the certification requirements set by the Pennsylvania Supreme Court is recognized as a CELA. The coveted status has only been attained by 37 attorneys in Pennsylvania.  The Pennsylvania Supreme Court approved the CELA professional designation because it found that the CELA certification process provides valuable assurance to the public that the lawyer has an in-depth working knowledge of the legal issues impacting the elderly.   If you or someone you know needs assistance with estate or gas royalty planning or with qualification for Medicaid benefits for nursing home or home care, you can trust the lawyers 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

*Attorneys Marshall, Parker, Weber, Grebas and Colbert are Certified Elder Law Attorneys by the National Elder Law Foundation under Authorization of 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.     DISCLAIMER The comments contained in this newsletter are intended to be of a general nature only, do not constitute legal advice, and no recipient is entitled to rely on them for any purpose. The distribtion and receipt of this e-mail does not create an attorney-client relationship.