Dramatic Changes Announced in Property Tax and Rent Rebate Program

Written By: Kim Fredo, Marshall, Parker & Associates' Planning Specialist

Seniors will be greatly impacted by qualifying income changes made in the Property Tax and Rent Rebate Program. Due to the recent passage of the Taxpayer Relief Act, the new law increases the income limit to $35,000 for homeowners/renters and raises the maximum rebate to $650.  Previously, the income eligibility for property owners OR renters was up to $15,000 a year (not including half of Social Security) and the maximum rebate was $500.  It's estimated that because of this income expansion, over 400,000 Pennsylvania seniors will receive assistance in paying their property taxes or rent.  Also, more than 200,000 seniors will have their school property taxes eliminated all together.

Homeowners will now receive:

Income	Rebate
$0 to $8,000	$650
$8,001 to $15,000	$500
$15,001 to $18,000	$300
$18,001 to $35,000	$250

Renters will now receive:

Income	Rebate
$0 to $8,000	$650
$8,001 to $15,000	$500

In addition, seniors who live in metropolitan areas throughout Pennsylvania like Philadelphia, Pittsburgh and Scranton, where local wage and income tax rates are significantly higher than in other  areas, will have their property tax rebate increase by an additional 50%, if their income is under $30,000.  Seniors who reside in other areas of the state who pay more than 15% of their income in property taxes will also have their property tax rebate increase by an additional 50% if their income is under $30,000.

The new changes within the rebate program's income limits and maximum rebate will go into effect for property taxes paid in the 2006 tax year. The rebates will be paid in the summer of 2007.  Those living in urban school districts who pay more than 15% of their income in property taxes will receive their extra help once the first statewide property tax relief occurs for all homeowners. 

Seniors aren't the only individuals who qualify and benefit from the Property Tax/Rent Rebate program.  Any Pennsylvania residents or spouses age 65 or older, widows or widowers 50 years or older and those who are permanently disabled and 18 years of age or older may all receive assistance from this program.

Gaming funds will pay for the full expansion of the Property Tax and Rent Rebate Program.

Finally, beginning in 2007, taxpayers will be able to pay their school property taxes on an installment plan.  This payment method will help seniors since they often don't pay their school taxes through a mortgage company.

For further information on the Property Tax and Rent Rebate Program, as well as the Tax Relief Act, you can go to the Pennsylvania Department of Revenue's website, http://www.papropertytaxrelief.net, or call:  (717) 207 - 7845.

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

---

The Waiver Program: An Alternative to Nursing Home Care

Written By: Kim Fredo, Marshall, Parker & Associates' Planning Specialist

The 60+Waiver Program, which is administered by the Pennsylvania Department of Aging and provided through local Area Agencies on Aging throughout the State, offers nursing home level of care to non-independent seniors in their private homes.  Services provided include personal care, transportation, home modifications, medical equipment and supplies, adult day care, respite care, counseling, extended state plan physician services, home delivered meals, personal emergency response systems, and companion care.  The oversight of care and coordination of these services is provided by the Area Agency on Aging (AAA) in the community.  If a senior meets the qualification requirements, the AAA will provide a choice of local providers who can deliver the care and/or services needed.  Ultimately, the Waiver Program enables seniors with increasing health issues to remain safely in their homes.

So, who qualifies?  Anyone residing in Pennsylvania who is age 60 or older, requires the type or level of care provided in a nursing home and who qualifies financially.  The individual applying must receive a medical exam by his or her physician and be assessed by the Area Agency on Aging.  There must be (local) community-based services available that can offer the care and/or services the consumer needs.  Financial requirements are determined by the local County Assistance Office.  The applicant's monthly income can not exceed $1,869.00 and his or her assets can not exceed the program limit of $8,000.  Medicaid Spousal impoverishment rules apply if the applicant is married.  Medical Assistance pays for all approved services and products.  Estate Recovery can apply, but is often less of a concern than consumers fear.

As far as the mechanics of the Waiver program are concerned, a representative from the Area Agency on Aging visits the individual in their home to assess their needs.  Together, they plot-out a plan of care and help the senior select a provider who's been approved by Medical Assistance.  Then, on a regular, on-going basis, the AAA monitors the senior and the services they receive to determine the amount of care required as their needs increase over time.  There is no cost to the consumer. 

To obtain further information about the PDA Waiver Program, contact your local Area Agency on Aging or call the Department of Public Welfare toll-free at 1-800-692-7462.

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

---

Marshall , Parker & Associates' 11^th Annual Professional Update

Marshall, Parker & Associates' 11^th Annual Professional Update is scheduled for May 10^th at the Williamsport Country Club and May 11^th at the Woodlands in Wilkes-Barre .  The Morning update is presented free of charge. Last year, over 400 professionals attended our sessions. 

In upcoming editions of The Elder Care Law Alert, we will feature one of this year's expert speakers.

If your business or organization would like to be one of this year's sponsors or if you have questions about the update, please contact Melissa Bottorf at mbottorf@paelderlaw.com or at 1-800-401-4552.

Featured Speaker Profile:

 Professor Katherine Pearson

Occupation:  Professor of Law and Director, Elder Law and Consumer Protection Clinic at

Penn State Dickinson School of Law

Education: J.D. University of Miami

                    B.A. University of Arizona

Presentation Topics for Professional Update:  Will Children Pay for Nursing Home Costs? & Understanding Nursing Home Admissions Agreements

Professor Pearson joined the Penn State Dickinson School of Law in 1995. Since that time, she has created an elder law curriculum including an elder law seminar, a workshop in legal problems of the elderly, and an Elder Law and Consumer Protection Clinic.

Recognized throughout the legal community for her expertise on legal issues facing older citizens, Professor Pearson has been selected to speak before the National Academy of Elder Law Attorneys, the National Council on Family Relations, and at the National Aging and the Law Conference in Washington , D.C.

Professor Pearson's recent articles analyzing third-party liability for health and long term care have led to legislation, drafted by students under her supervision, that was introduced before the Commonwealth's House of Representatives. In June 2006, she was honored by the Pennsylvania Bar Association with a special achievement award for her work on elder law topics and her "extraordinary" guidance in advancing legislative initiatives.

She is currently examining contractual obligations and statutory law affecting families and older adults, such as contracts used to define relationships in assisted living and "continuing care retirement communities" (CCRCs), and the growing use of mandatory arbitration provisions for long-term care disputes. In recent years she has collected and analyzed hundreds of contracts connected to long-term care facilities.

Do You Want to Know More?

Professor Pearson's Testimony from Governor Rendell's Medical Assistance Listening Tour is available online at http://www.dpw.state.pa.us/Business/MATour/HbgTstmny/003673948.htm.

---

Questions and Answers from Guide for Americans Over 50

The American Bar Association has published a new book of interest to seniors, their family members, and anyone who is concerned about legal issues encountered by older Americans. The American Bar Association Legal Guide for Americans Over 50 is an essential reference for baby boomers and their parents.

The book is authored by the staff of the American Bar Association Commission on Law & Aging.  Lawyers from across the country who are recognized experts in legal issues related to older persons were asked to contribute responses to practical questions.

Attorney Marshall, the managing attorney of Marshall, Parker and Associates, was asked to provide his expert responses to a number of practical questions regarding financial planning for incapacity.   A few of these questions and Attorney Marshall's responses are below.  The book is available on amazon.com and bookstores everywhere.  The cost is $16.

Q. What's the difference between a durable power of attorney and a guardianship?

 

A.  If you are ever unable to manage your property and finances, someone else will have to act on your behalf.  Power of attorney and guardianship are two distinct legal tools that are used to authorize a substitute to act for you.   The power of attorney is a voluntary tool that you create in advance of your incapacity.  You decide who will act on your behalf, when they may act, and what actions will be permitted.  Guardianship is an involuntary legal tool that is created by court order when consensual tools like powers of attorney are non-existent or inadequate to meet the needs of an incapacitated person. The court decides who will act for you and what types of decisions they can make. Because power of attorney is voluntary, you can terminate it at any time.  Guardianship must be terminated by the court. 

 

Q. Will a living trust enable me to avoid the long delays, high legal costs, and public disclosure of information that usually occurs when an estate goes through probate?

 

A. The answer depends in large part upon your personal situation and upon the state in which you reside at the time of your death. Some states, like Pennsylvania ,  have simple, efficient and inexpensive probate processes.  In other states, probate can result in added delay and expense.  While living trusts may help you achieve your estate planning objectives, they are complicated and are not right for everyone.  You should consult with trusted estate planning professionals to help you determine how best to plan your estate and implement that planning.  The plan that is right for you may or may not include the use of living trusts. 

 

No matter where you reside you need to beware of living trust scams.  Con artists frequently solicit seniors by phone or mail to get them to attend seminars or to set up in-home appointments to discuss tax and estate planning. Living trusts are then marketed through high-pressure sales pitches, which misrepresent the disadvantages of probate and the advantages of a living trust.  Consumers may end up with worthless "kits," or form documents which may cost thousands of dollars.  The promoters also use their access to the victim's financial information to try to sell high-commission annuities and other inappropriate investments.  The best defense against these scams is to work only with an estate planning attorney and other professionals who have earned your trust and confidence.

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

---

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

 You can even search our site by a keyword or phrase!

---

Do you have a friend or colleague who would enjoy reading the Elder Care Law Alert?  If so, please feel free to forward it to them. Simply use the "Forward" button on your e-mail program.

---

To subscribe or unsubscribe to the Elder Care Law Alert,

simply send your request to:

webmail@paelderlaw.com  

---

*Attorneys Marshall and Parker are certified as Elder Law Attorneys by the National Elder Law Foundation under authorization from the Pennsylvania Supreme Court.

Return to 2007 Newsletters

Return to Marshall, Parker & Associates' Home Page