New Laws Affect Seniors

Written By: Jeffrey A. Marshall , Certified Elder Law Attorney*

  As usual, the Pennsylvania Legislative Session has closed with a flurry of activity.  Among the many bills passed by the legislature and signed into law by Governor Rendell are a number of measures affecting seniors. 

House Bill 1211 raises the personal needs allowance allowed to nursing home residents who are on Medicaid to $40 a month.  (The deduction was previously limited to $30 a month).  Residents on Medical Assistance are permitted to deduct this amount for purposes of determining how much the resident must pay toward the cost of care while living in a nursing facility. DPW must implement the change in 90 days (the end of March, 2005). The monthly personal needs allowance will increase again to $45 in 2007.

A copy of HB 1211 is available at http://www.legis.state.pa.us/WU01/LI/BI/ALL/2003/0/HB1211.HTM

 House Bill 2036 amends Title 20 of the Pennsylvania Consolidated Acts by adding a chapter on mental health powers of attorney and declarations.  In addition, the bill amends provisions on prudent investor rules governing charitable trusts.  We will discuss the new mental health powers of attorney law in greater depth in a future issue of the Elder Care Law Alert. 

A copy of HB 2036 is available at http://www.legis.state.pa.us/WU01/LI/BI/ALL/2003/0/HB2036.HTM

Senate Bill 95 amends Title 20 (Decedents, Estates and Fiduciaries) to provide that the provisions relating to the distribution of property upon the death of a married person living in the Commonwealth prior to death are not applicable if, at the time of death the person was in the midst of divorce proceedings or if no decree of divorce was entered into but grounds for entering a decree of divorce or annulment prior to the final determination and disposition of rights and obligations between the parties had been established. 

Senate Bill 95 also amends Title 23 (Domestic Relations) of the Pennsylvania Consolidated Statutes to clarify the rights of the parties when a couple has commenced to live separate and apart.  The new law establishes the burden of proof for setting aside a premarital agreement and provides provisions regarding divorce or annulment prior to the final determination and disposition of rights and obligations between the parties.  It also makes revisions to the definition of "marital property."  It takes effect in 60 days.

A copy of SB 95 is available at http://www.legis.state.pa.us/WU01/LI/BI/ALL/2003/0/SB0095.HTM

Senate Bill 1167 amends the State Lottery Law to provide for the dispensing of a brand name drug to a PACE or PACENET recipient if it is less expensive than the generic equivalent. It also revises the section regarding rebates to reflect determinations made under the federal Social Security Act.  The Act takes effect immediately and the revisions regarding rebates will be retroactive to Jan 1, 2004 . 

House Bill 2719 provides that no common law marriage entered into after January 1, 2005 , shall be valid.  A copy of SB 95 is available at http://www.legis.state.pa.us/WU01/LI/BI/ALL/2003/0/HB2719.HTM

House Bill 2441 (sponsored by Rep. Steven Cappelli, R-Lycoming), provides that a surviving spouse may, at any time, resume their prior last name by filing a written notice, as well as a death certificate for the deceased, in the clerk of courts of common pleas in the county where they reside.  The bill becomes effective in 60 days.

The Governor vetoed Senate Bill 492.  Senate Bill 492 was intended to update Pennsylvania 's laws regarding health care decision making for incapacitated persons and create the new position of "health care representative" for incapacitated persons who have no health care agent or other authorized decision maker.  The Governor also vetoed SB 304 which would have increased the amounts payable under Probate Estate's and Fiduciary's Code Section 3101, increased the family exemption to $5,000 and removed the requirement that the child be a member of the decedent's household to claim the family exemption. 

Attorney Marshall can be contacted at webmail@paelderlaw.com or at 1-800-401-4552

A Letter of Instructions to Your Family

Written By: Jeffrey A. Marshall, Certified Elder Law Attorney*

  Okay.  You just came back from your lawyer.  Your estate is "planned."  You signed your Will and powers of attorney and made sure that your life insurance and other beneficiary designations are up to date.  You feel like a big weight has been lifted off your shoulders.  You know your family will be protected if something happens to you. 

But wait!  Your job is not yet quite finished.  Does your family know where your important papers are located?  Can they easily find all your investment accounts and insurance policies?  Do they know what kind of funeral arrangements you want?  Do they know how to get in touch with your lawyer?  Do they know who should receive those precious personal items that may not be worth a lot of money, but can be so important to someone you love? 

One way to handle these details is with a letter (or letters) of instructions.  A letter of instructions can contain (1) instructions as to funeral and burial arrangements, (2) instructions as to the disposition of some of your personal items, and (3) information as to the location of your important papers and the identity of your advisors.

A letter of instructions is not a substitute for your will. It is a list of things that your survivors need to know should anything happen to you.  Although such instructions are not legally binding as they would be if contained in your Will, a letter is much more easily revised than a Will.  Moreover, your Will may become a public record and its contents viewed by any curious person, while your letter of instructions should remain private.

Here are some things you may want to include in your letter or letters of instructions:

Funeral and Burial Arrangements

When a person dies, their family must make a number of decisions fairly quickly about funeral and burial. Some people include details about these arrangements in their Wills.  However, your Will may not be located and read until after the funeral.  A better alternative may be to prepare a letter of instructions which contains private, informal directions from you regarding the arrangements you prefer. 

Disposition of Personal Items

You can give directions as to how your household goods and personal effects should be distributed among your family and friends.  For example, your Will might specify that you leave your personal effects to be divided equally among your children, but you may decide you want a certain piece of jewelry to go to one child and a painting to another.  You can put this information in a letter of instructions.  Later you can change your mind and modify your directions without having to modify your Will.  (If you do provide this kind of direction in a letter of instructions, you should be sure to note in the letter that your instructions are not intended to have the effect of modifying or revoking your Will.)

Locating Important Papers and Advisors

A letter of instructions can help your executor locate and gather the assets of your estate.  A detailed list of investments and other important information, prepared by you, can help ensure that none of your assets will be overlooked. 

Once your letter is prepared, make several copies.  Give one to your lawyer, place another with your copy of your Will, and keep another in the place your family would look first in the event of your death.  Review your letter every year or so to make sure it is kept up to date.    

Having this information will ease the stress on your family after you are gone.  It is one final kindness you can do for them. 

Attorney Marshall can be contacted at webmail@paelderlaw.com or at 1-800-401-4552

When Driving Becomes Dangerous

Written By: James Hathaway , Marshall, Parker & Associates' Intern

  Driving at any age can be a complex and hazardous endeavor. The situation may become even more complex for the older driver. Many of the skills such as, seeing, hearing, reaction time, and flexibility become slower as one ages. Despite these physiological changes, there are many things that can be done on a day-to-day basis to help older drivers.

It is important to recognize the signs that your ability as a driver are changing.

            1. Are street signs and signals becoming harder to see?

            2. Do left hand traffic turns make you nervous?

            3. Do you find yourself driving slower because you need more time to react?

            4. Is it harder to turn your steering wheel?

These are just a few signs that you might notice. A series of tests to show us how your ability may have changed is available in the "Driving Safely As You Get Older" Booklet published by Penndot.

There are a few other things you can do to help keep you a safe driver. 

            1. Try to stick to roads where you know the traffic flow.

            2. Drive with a passenger who can be "a second pair of eyes."

            3. When conditions allow, a following distance of 4 seconds is recommended.

            5. Make sure that your head lights are clean and properly aligned.

6. If you wear corrective lenses make sure to wear your most current prescription

These and other helpful driving tips and tests are available in the "Driving Safely As You Get Older" booklet that is available through Penndot. Visit their website at http://www.dot.state.pa.us or call 1-800-932-4600 for your copy.

James Hathaway can be contacted at webmail@paelderlaw.com or at 1-800-401-4552

Attorney Marshall Quoted in Time Magazine

  Attorney Marshall is quoted in the November 29, 2004 issue of Time Magazine, available online at http://www.time.com (search on "Ask Francine").  He was interviewed by Time columnist Francine Russo for the Generations column.  The column deals with problems arising between children when a parent becomes incapacitated and one child holds power of attorney and withholds information from other involved family.

The column advises that the child without power of attorney is not helpless.  It quotes Attorney Marshall as noting that family members have a number of protections and remedies: they can seek an accounting from the power of attorney, file for guardianship, or call protective services if they suspect financial abuse.   

Marshall, Parker & Associates' Now Offering FREE In-Office Workshops

  Marshall, Parker & Associates' is now offering free workshops for seniors, their families and professionals who want to know more about paying and planning for long term care.  The workshops are held in our Williamsport and Wilkes-Barre offices and last about an hour.  These informal discussions with our planning experts are a great opportunity to learn about the options available to pay for care. 

Reservations are suggested, but not required.  SIGN UP ONLINE or call 1-800-401-4552 for more information or to reserve your spot.

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