Wills, Trusts & Estates - Hilary Kinal Law Office - Beaver County Pennsylvania PA Family, Divorce & Elder Law Lawyers, Attorneys & Law Firms

POWERS OF ATTORNEY AND "LIVING WILLS"

A power of attorney gives someone else the ability to commit your interests, by signing your name as if you had signed. Powers are very useful if one cannot be physically present for a contract. Also, if one is hospitalized or in a coma, the power will allow one's affairs to be handled and bills to be paid. A specialized power or "Living Will” gives someone the right to refuse medical treatment that will only prolong the duration (and cost) of dying. While many think that only older people need such documents, the two main cases on this issue both involved 30-year-old women put into irreversible comas by auto accidents. Anybody who has responsibilities toward another person should have appropriate powers of attorney executed, just in case. As of April 12, 2000, Pennsylvania requires powers of attorney to have certain new mandatory clauses signed by the grantor and the "agent" (previously called the attorney-in-fact).

FAMILY INHERITANCE

In Pennsylvania, a surviving spouse does NOT automatically get everything the deceased spouse owned, if there are living children or parents of the deceased spouse. It is therefore important for spouses to have Wills, and to update them if there are births, deaths, or large changes in the composition of their assets. Many people do not think they have much of an estate. They forget about rising real estate value, insurance pay-outs, and pension commutations. These can easily create a six-figure estate. Professional advice is helpful in avoiding unnecessary taxes (Pennsylvania taxes immediate relatives 6% or 9%, and others 15%; spouses pay nothing). For estates approaching $1 million, Federal taxes are also a concern.

People who may be going into nursing homes must realize that the state will take their property to pay for their care. Attempts to pass property to heirs must be planned years in advance. Three years in advance may be too late.

"Living Trusts" or revocable trusts are sometimes promoted too highly. In states with long and expensive estate administrations, they may be universally appropriate; Pennsylvania is not such a state. Most of the functions served by a revocable trust can be performed less expensively in Pennsylvania by a Will and a power of attorney. Such trusts are advisable if your estate will be given to unusual devisees, or will need to be held together in order to keep full value. A lawyer's advice is essential to making the most cost-effective decision.

Kinal Law Office
Ambridge, PA 15003
412-719-5344