Blog & Resources

From our “Ask a Question” mailbag: Years ago, I gave my friend a General Durable Power of Attorney. Now I am married, living in Lehigh County and want to give Power of Attorney to my spouse. My former friend will not give me the old Power of Attorney. Can I revoke or void the Power of Attorney if he still has the original?

Yes, you can void a Power of Attorney at any time as long as you have the requisite mental capacity.

Your situation will be a little more complex, as you have given the original document to your former Agent. I have not seen that Power of Attorney, but it may have a paragraph that states that banks and others need not confirm with you that the document is still in power.

From our “Ask a Question” mailbag: I am in a long-term, same-sex relationship with my partner. She happens to be much older than I, and I am concerned about the expenses of caring for her as she gets older. Would Long Term Care Insurance be a good option?

I have had clients use Long Term Health Insurance as a useful tool in their estate plan. Clients typically get the best use from this tool when they thoughtfully look ahead to the potential expenses of old age and work closely with their financial advisors. Specifically, I ask clients to examine whether their savings for retirement are adequate to address the costs of an unexpected, serious health problem.

From our “Ask a Question” mailbox: My father wants to transfer a rental property he owns in Delaware County into my name. If he does, will this gift avoid Pennsylvania Inheritance Tax?

As a Delaware County resident, at your father’s death, all assets he leaves you at death (except life insurance) will be subject to the Pennsylvania Inheritance Tax at the 4.5% children’s rate.

Since more than 1 in 5 Gloucester County households include residents over age 65, Long Term Care should be a serious consideration in your personal financial plan.

My mother, who lives in Camden County, New Jersey, is having serious health problems. She wants me to be able to use her general power of attorney, but it requires a doctor’s note saying that she is incapacitated. Is that normal?

Your mother has a “Leaping” Power of Attorney which, at one time, was the normal document that Camden County Estate Planning Lawyers would prepare. A Leaping Power of Attorney gives the “Agent” the power to act for the person if…and only if…that person has become incapacitated, and the Agent can secure a letter from the person’s doctor stating that the person is incapacitated. Without the letter, the power of attorney is useless.

I am a resident of Camden County, New Jersey and want to modify my Will. My two children are older and I want to name them as co-executors. Is naming my children as co-executors a good idea?

Naming your children as co-executors (or “personal representatives”) of your Will can be a fine idea, or a terrible idea, depending on your children. You need to be honest with yourself about how well your children’s personalities work (or do not work) together.

I have signed a General Power of Attorney giving my daughter the power to act for me, but I don’t want her to have it yet. I only want her to have it when (and if) I become unable to care for myself. Should I keep it in my safe deposit box? We both live in Delaware County, so she is close by.

The problem with putting your General Power of Attorney in your safe deposit box is, if you become incapacitated, your daughter will likely be unable to get into the box. If you have died, there is a process to open the box… but it is much more complex if you are alive, but incapacitated.

My father wants to transfer a rental property he owns in Chester County into my name. If he does, will this gift avoid Pennsylvania Inheritance Tax?

As a Chester County resident, at your father’s death, all assets he leaves you at death (except life insurance) will be subject to the Pennsylvania Inheritance Tax at the 4.5% children’s rate. That includes all gifts made within one year of the date of his death. So, if he transfers the rental property into your name and lives for at least one more year, at his death you will avoid Pennsylvania Inheritance Tax payment.

I live in Philadelphia County, and my Will names my two children as co-executors. I thought this was a natural thing to do, but my children have not been getting along recently, what are my options?

Naming your children as co-executors when they do not get along is a bad idea. Co-executors have to work well together and cooperate. Children who are having a dispute can make what is a small family dispute into a family feud that lasts generations.

I am a resident of Atlantic County, New Jersey. If I have recently formed a Revocable Living Trust and moved all my New Jersey assets into the trust, do I still need a Will?

If the goal in forming your Revocable Living Trust was to avoid probate, then you must either transfer all your assets that would otherwise be Probate Assets into the trust during your lifetime or have them pour into the Revocable Trust at your death. That is often done by using a Payable on Death Account or naming the Trust as Beneficiary.