Legal Planning 101

It is September and students and teachers are back in school. Even if we are not students ourselves, or have students in our lives, most of us can remember how it feels to start the new school year with sharpened pencils and high hopes. But have you considered taking this time of renewal to review your legal needs to make sure that you planned adequately for the future?

Planning can take many forms from the perspective of a lawyer. It might mean making sure that someone’s business is incorporated so that the owner does not lose everything they own personally in the event that something untoward happens. It also might mean having a contract reviewed, or getting assistance in selling or buying real estate. Planning may be necessary when someone is facing or could be facing long term care and must figure out how to pay for the costs involved. However, there is basic planning that everyone needs whether you are 18 years old or 95 years old, namely, determining who will be able to speak for you if you cannot speak for yourself. In other words, everyone 18 years old and up should have Power of Attorney documents for finances and healthcare.

We tend to think of a Will when we think of estate planning. A Will is very important to bring clarity to the distribution of your assets at your passing. A parent of young children should have a Will to state who will assume guardianship for the child or children if you pass while the children are still minors (18 years in Pennsylvania), and no living parent or previously appointed legal guardian is still living. Property that is not jointly owned by spouses does not automatically go to the surviving spouse, unless there is a beneficiary listed, per the laws of intestacy. Those in second marriages should name how their estate is to be distributed. A Will can stabilize an estate, particularly when there is a closely held business or young children left behind.

There are many reasons to have a Will but it is not impossible to handle an estate without one in place. Powers of Attorney, on the other hand, are documents that set up a plan for during life since incapacity can happen as suddenly as a stroke or a car accident. Parents of high school graduates should realize that they have no more say in their child’s healthcare decisions. Privacy regulations prevent medical professionals from sharing information with parents once the child is 18 years old without authorization under the HIPA A laws. Older persons, such as parents or other relatives, may need assistance with healthcare or financial issues. The adult must give someone (or hopefully several persons in succession) written authorization in the form of Power of Attorney documents while they are able. Otherwise, it may be necessary to obtain guardianship, which is expensive, intrusive and takes time to accomplish. The principal no longer has any say regarding his or her care or finances, and who is making decisions for him or her.

Parents, if your child is off to college or trade school, or even working in the area, consider having him or her execute Powers of Attorney. Children, pay attention to whether your parents or other relatives that you care for have these documents in place. For any adult, make sure that your life planning includes the necessary legal documents. Call your attorney or call OWM Law for assistance (610-323-2800). Don’t wait until it is too late.

The legal advice in this column is general in nature, Consult your attorney for advice to fit your particular situation. Kathleen Martin, Esquire is licensed to practice in the Commonwealth of Pennsylvania and is certified as an Elder Law Attorney by the National Elder Law Foundation as authorized by the Pennsylvania Supreme Court. She is a principal of the law firm of O’Donnell, Weiss & Mattei, P.C., 41 High Street, Pottstown, and 347 Bridge Street, Phoenixville,610-323-2800, www. owmlaw.com. You can reach Mrs. Martin at kmartin@owmlaw.com