What Happens to My Pet After I am Gone?

Written By:  Attorney Kevin R. Grebas       

  Chances are you may have never seriously pondered this question.  Many people assume that upon their incapacity or death, family members or friends will be willing to provide care for their pets.  Unfortunately, this isn't always the case.  That is why pet owners may wish to consider including their non-human family members in their estate planning.

There are two important issues for people to consider when planning for the continued care of their pets.  The first is selecting someone to provide care for the pet in the event the pet owner becomes incapacitated.  This can be easily accomplished by including a provision in a Power of Attorney document that authorizes the agent to take any steps necessary to provide for the pet.  By including such a provision, pet owners can see to it that there is no confusion surrounding their intent to allow their agent to spend money for their pet's housing, maintenance, medical care and other expenses.

The second, and perhaps more important issue for pet owners is whether they wish to provide for their pet after their death.  Many people have undoubtedly heard stories about eccentric individuals who have left their entire estates to their beloved animals.  While most people would consider this to be a bit extreme, many pet owners may at least wonder how they can make sure their pets receive proper care after they are gone.

The simplest way for individuals to provide for their pets is through a validly executed will.  While an animal may not be named as a beneficiary under a will, it is possible to get around this prohibition.  Because a pet is legally considered to be property, an individual may include a provision in his or her will giving the pet to a named individual.  That named individual can also be given a cash bequest to cover the cost of maintaining the animal.  To make sure the pet is properly cared for, the pet owner may impose the condition that the funds must actually be used for the care of the pet. This type of provision, however, is difficult to enforce.

Many states allow their residents to create special trusts for the benefit of their pets.  These trusts allow people to set aside money, either during lifetime or upon their death, for the care and maintenance of their pets. Pennsylvania has not yet authorized these trusts but individuals wishing to provide for their pets may be able to set up a trust which names a human beneficiary who is given the responsibility of taking care of the pet. 

Under such an arrangement, the pet owner would choose a person who is willing to serve as caretaker for the pet.  This person would be an actual trust beneficiary and would be entitled to distributions from the trust to pay for the pet's expenses.  Additionally, a remainder beneficiary should be chosen who would receive any assets still held by the trust upon the death of the animal. A trustee would also be chosen who would have the responsibility of making distributions of trust assets to the caretaker so long as the caretaker is satisfactorily caring for the pet.

In order to prevent their heirs from contesting the validity of the trust, pet owners should make sure that the amount of money used to fund the trust is not excessive.  If the amount of money in the trust exceeds what is actually needed to provide care for the animal, the court may even decide to reduce the amount of money held by the trust.  For these reasons, pet owners should proceed with caution and seek expert advice.

It is important for pet owners to know that provisions can be included in their estate planning documents to address the continued care of their animals.  For animal lovers, this can provide great peace of mind. 

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

---

The Medicaid Penalty for Gifts

Written By:  Attorney Jeffrey A. Marshall , CELA*

  Medicaid ("Medical Assistance") is the primary source of payment of nursing home costs in Pennsylvania .  Most nursing home residents eventually receive financial assistance from Medicaid. But, before a nursing home resident can receive government Medicaid benefits, the resident must meet the financial need criteria of the program.  Most nursing home residents first have to "spend down" their personal financial resources so that they can qualify for this form of government aid. 

If the resident has given away assets in order to get down to the required financial qualification level, the gift may create a waiting period during which the resident will be ineligible for Medicaid.  This waiting period, often called the "penalty period," begins in the month the gift is made.  The length of the waiting period is determined by dividing the value of the income or assets given away by a "penalty divisor" which is roughly equivalent to the average monthly cost of a private nursing home room.

Because the penalty divisor is based on the cost of nursing home care, the Department of Public Welfare must revise it from time to time.  The Department recently announced an increase in the penalty divisor, effective July 1, 2004 , to $5,787.58.  This new divisor applies to applications for Medicaid benefits which are filed on or after July 1st for nursing home care.  It also applies to applications for home care benefits under the Pennsylvania Department of Aging 60+ Waiver program. 

This new divisor means that a gift of $100,000 will create a waiting period of 17 months.  In many cases, if a gift was made more than three years before the Medicaid application is filed, it need not be reported.  However, the reporting period can be extended to five years if a gift is made to or from a trust.  

Persons who may need to apply for Medicaid in the next three years and who want to make gifts should consult with an experienced elder law attorney.  Many gifts are exempt from the transfer penalty rules, and the rules are very complicated.  Incorrect understanding of the rules regarding gifts can create significant problems not only for the nursing home resident and his or her family, but also for the nursing facility.   Nursing facilities can end up with a resident who cannot pay for care but who is now ineligible for Medical Assistance due to gifts that were made. Everyone benefits if expert guidance is obtained.  

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

---

Attorney Tammy Weber Joins Marshall, Parker & Associates' Staff

  The Elder Law Firm of Marshall, Parker & Associates' is pleased to announce the addition of Attorney Tammy A. Weber to its professional staff.

Attorney Weber is a native of Muncy.  She graduated Magna Cum Laude from Lycoming College and received her law degree from Temple University . She previously served as an Assistant United States Attorney for the Eastern District of Pennsylvania where she was involved with major federal investigations and prosecutions. While in this position, she was the recipient of the Department of Health & Human Services Inspector General's Integrity Award for the investigation and criminal conviction of the first Medicare money laundering seizure case in the country.  Attorney Weber has also served as an adjunct professor at Saint Joseph 's University Graduate Criminal Justice Program where she designed and taught a course on Law and Social Policy.  For several years, Attorney Weber sat on the editorial board of the Legal Intelligencer, Philadelphia 's legal newspaper.

Tammy Weber and her daughter Sarah live in Montoursville.  She spends any remaining spare time playing piano and volunteering at her church.

Attorney Weber has already begun providing estate planning, elder law, and long term care planning services to clients of the Elder Law Firm of Marshall, Parker & Associates'.

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

---

PA Seniors Will Benefit from Department of Aging Funding Increase

Written By:  Marshall, Parker & Associates' Planning Specialist, Lisa Barner     

  Senior citizens will benefit from an 8% increase in funding to the Department of Aging.  The final 2004-05 budget has been approved and signed.  The new budget includes several increases for the Pennsylvania Department of Aging.  Some of these increases are:

                       An additional $1.18 million dollars will be provided for the Attendant Care Program.

                       The Pennsylvania Department of Aging Waiver Program will receive an additional 3,524 slots.

                       Funding for Alzheimer's Outreach is increased by $145,000.

                       The PACE program, which currently serves over 280,000 older Pennsylvanians, will see an additional $1.7 million in funds to be used for administrative expenses. 

            A 2% increase for PENNCARE to support home and community based services          for older adults.

Lisa can be contacted at lbarner@paelderlaw.com or at 1-800-401-4552

---

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

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

---

Marshall, Parker & Associates' Bake-Off a Success

  Geriatric Planning Specialist and renowned baker, Lisa Barner is the winner of the year's Marshall, Parker & Associates' 2^nd Annual Bake-Off.  Her entry of White Chocolate Strawberry Cake was a crowd favorite in both the Williamsport and Jersey Shore offices.  With great support from local businesses and the public, the Bake-Off raised almost $300 towards our Memory Walk team total.  Thanks to all those who helped make it such a successful event!

---

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.

---

Back issues of The Elder Care Law Alerts 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.