Maureen L. Anderson Elder Law, LLC Maureen L. Anderson Elder Law2026-05-14T05:19:22Zhttps://www.mlaelderlaw.com/feed/atom/WordPress/wp-content/uploads/sites/1502758/2022/03/cropped-512x512-1-32x32.pngOn Behalf of Maureen L. Anderson Elder Law<![CDATA[What are ABLE accounts and when should you use one?]]>https://www.mlaelderlaw.com/?p=484892026-05-14T05:19:22Z2026-05-14T05:19:22ZHow ABLE accounts protect benefit eligibility
SSI limits your assets to $2,000 for an individual. If you exceed that threshold, you lose monthly benefits and healthcare coverage. The federal ABLE Act expanded by the ABLE Age Adjustment Act put in effect on January 1, 2026, lets you hold up to $100,000 in an ABLE account without losing SSI eligibility.
Medicaid does not penalize you regardless of the balance. The 2026 expansion raised the age of disability onset from 26 to 46, making roughly six million more Americans eligible, including veterans and individuals with multiple sclerosis (MS), amyotrophic lateral sclerosis (ALS) or spinal cord injuries acquired later in life.
What you can use ABLE funds for
ABLE accounts cover a broad range of qualified disability expenses. The IRS defines these as costs that help you maintain health, independence or quality of life. Common uses include the following:
Housing: Rent, utilities or home modifications for accessibility
Healthcare: Copays, prescriptions, therapy or assistive technology
Education and employment: Job coaching, training programs or tuition
Transportation: Vehicle modifications, gas or public transit costs
You can withdraw funds tax-free as long as you use them for qualified expenses. Non-qualified withdrawals face income tax and a 10% penalty on earnings.
2026 contribution limits
For 2026, the annual contribution limit is $20,000. If you work and do not participate in an employer retirement plan, you can contribute an additional $15,060 under the ABLE to Work provision. One person can only have one ABLE account. If the account holder dies, Pennsylvania may file a Medicaid payback claim to recover benefits paid during the person's lifetime, which can leave little for heirs.
Protect your loved ones in Bucks County
Many Bucks County families discover ABLE accounts too late or misuse them in ways that trigger benefit loss. An experienced special needs law attorney can help you determine whether an ABLE account fits your situation, coordinate it with a special needs trust and ensure contributions stay within legal limits. When you get it wrong, your loved one may lose the benefits that pay for their care, leaving them vulnerable at the moment they need protection most.]]>On Behalf of Maureen L. Anderson Elder Law<![CDATA[New law impacts gifting rules, triggers need to update estate plans]]>https://www.mlaelderlaw.com/?p=484852026-02-05T20:45:16Z2026-02-05T20:45:16Z is an important estate planning tool with tax and Medicaid eligibility consequences. The governing rules evolve and such changes can trigger the need to review and update estate planning strategies. A strategy that worked under one exemption amount, one reporting threshold or one Medicaid policy may produce unexpected tax or benefit outcomes after these changes. As such, planning requires flexibility, documentation and periodic review.
What changes, why it matters
Transfer tax rules often change through adjustments to the federal gift, estate and generation-skipping transfer exemptions. State estate tax regimes can also change through rate revisions and exemption resets. It is also important to review Medicaid rules as they can shift as a result of agency interpretation, state plan amendments, and increased enforcement intensity.In a recent example, President Donald Trump’s One Big Beautiful Bill Act (OBBBA) has changed the rules that guide the lifetime federal gift and estate tax exemption. As of 2026, the OBBBA clarifies that the lifetime estate and gift tax exemption has risen to $15 million per individual and $30 million per couple. This means those who had used their full exemption in 2025 now have an additional $1.01 million per person during 2026.
How to use gifting effectively in an estate plan
Annual exclusion gifting depends on current thresholds which generally change every year. It is important to review these thresholds as a missed requirement can convert an intended exclusion gift into a taxable gift. Larger lifetime gifts depend on exemption levels, like those discussed above. A later reduction can change remaining capacity for additional transfers, estate liquidity planning. Discuss these possibilities to help better ensure your estate plan is in line with your goals.
How to strengthen gifts against legal risk
It is important to keep clear documentation to support the gift, such as dated receipts. Avoid informal handoffs that invite later challenges. It can also help to coordinate gifts with trusts and beneficiary designations. Those who are also considering Medicaid planning are wise to reassess Medicaid lookback exposure and cash flow needs. Gifting remains powerful because it can shift appreciation, simplify administration, and support loved ones during life. A smart approach uses periodic reviews, careful documentation, coordinated tax reporting and alignment with long-term care planning. Consult qualified counsel to tailor gifting to current law, personal objectives and foreseeable changes.]]>On Behalf of Maureen L. Anderson Elder Law<![CDATA[Can family members legally challenge the terms of my living will?]]>https://www.mlaelderlaw.com/?p=484842025-11-19T09:39:03Z2025-11-19T09:39:03ZWhen you sign a living will, you establish your legal authority over your own future medical treatment. The purpose is to protect your personal wishes from being overridden by others, even well-meaning family members. Still, the moment this estate planning tool is most needed is precisely when emotions are highest, and disagreements among heirs can surface.
Can a loved one legally challenge your instructions? The answer is yes, but only if specific, limited legal grounds are met.
A formal legal document, not a suggestion
In Pennsylvania, the Advance Directive Act governs living wills and mandates that healthcare providers honor your choices once they confirm you lack the capacity to make decisions and have an "end-stage medical condition" or are "permanently unconscious." The law treats your written instructions with great respect.
If you cannot sign it yourself, another person must sign the document for you
Two individuals, each at least 18 years old, must sign the living will as witnesses
The person who signs the document on your behalf (if needed) cannot be one of your two required witnesses
It is critical to note that a living will in Pennsylvania does not require notarization, but getting one notarized may help ensure its acceptance in other states if you travel.
Few legal grounds for a contest
A family member who wishes to set aside your living will must prove that a serious flaw existed when you signed the document:
Lack of capacity: You did not have the necessary mental capacity to understand what you were signing at the time you created the living will.
Undue influence: Someone improperly pressured or coerced you into signing the document against your own true wishes.
Improper execution: You failed to follow the state's legal rules for signing and witnessing the document.
If a judge finds that your living will is invalid based on one of these grounds, then medical decisions will usually fall to your designated healthcare agent (if you named one) or to family members in a specific legal order.Courts, however, start with the presumption that your living will represents your authentic wishes, so the burden of proof is entirely on the person filing the lawsuit. That person must attack the process of creation, not the substance of the directions.
Protecting your wishes
To make your living will more resistant to challenges, it can be beneficial to write clear, specific instructions about your medical preferences and review and update the document regularly. You may also want to select a healthcare agent who strongly supports your documented choices and ask your doctor to note your decision-making capacity in your medical records.Most importantly, consider starting an open discussion with your loved ones about your wishes. Try to help them understand your values and reasoning behind your healthcare decisions. This communication often prevents future disputes and gives family members time to process and accept your choices before a medical crisis occurs.]]>On Behalf of Maureen L. Anderson Elder Law<![CDATA[Long-term care planning: 4 essentials things to consider]]>https://www.mlaelderlaw.com/?p=484832025-08-19T11:12:38Z2025-08-19T11:12:38ZUnderstand potential costs
Long-term care costs vary significantly based on the type and duration of care. Nursing home care, assisted living facilities or in-home care services each carry different price tags. Researching current rates in your specific area helps you project future expenses. This knowledge forms the bedrock of a realistic financial strategy.
Evaluate insurance options
Generally, Medicare does not cover long-term care. Try to explore private long-term care insurance policies that can provide a vital financial safeguard. These policies can cover a wide range of services to ease financial strain. Review different plans carefully to find coverage that aligns with your projected needs and budget.
Consider asset protection strategies
Pennsylvania law offers various legal tools to protect your assets from the high costs of long-term care. Strategies like creating certain trusts or making timely gifts can safeguard your home and savings.
Discuss family involvement
It is crucial to honestly discuss your wishes, preferences and financial situation with your family. Clarify who can provide support and what roles they might play. This ensures everyone understands the plan and helps prevent misunderstandings or burdens later on.
Seeking legal support
Planning for long-term care may seem overwhelming, but with the proper legal guidance, you can create a personalized strategy fit for your family’s needs. They can also ensure your plan complies with all state laws and effectively protects your interests, securing your future care needs.]]>On Behalf of Maureen L. Anderson Elder Law<![CDATA[Can my parents legally gift assets to avoid Medicaid penalties?]]>https://www.mlaelderlaw.com/?p=484822025-05-22T08:31:33Z2025-05-22T08:31:33ZThe critical look-back period
Medicaid does not want people to give away assets just to qualify for benefits. To prevent this, Medicaid employs a "look-back period." During this period, Medicaid officials scrutinize any asset transfers an applicant made.
In Pennsylvania, this look-back period is five years. This means officials review financial transactions for the 60 months preceding the Medicaid application date. Any gifts or assets transferred for less than fair market value during this time can trigger penalties.
Penalties for improper gifting
If Medicaid discovers gifts made during the look-back period, it will likely impose a penalty. During this penalty period, the applicant will be ineligible for Medicaid benefits. The length of this ineligibility depends on the total value of the gifted assets.
These rules aim to ensure fairness. Essentially, the gifted amount must cover care privately before Medicaid coverage begins. If you and your loved ones find yourselves in such a situation, you may encounter immense financial strain due to not getting Medicaid help sooner.
Irrevocable trusts established outside the look-back period
Spending down assets on exempt resources (primary home improvements, medical devices)
Caregiver child exception for adult children who lived with and cared for a parent
Purchase of certain annuities that meet specific requirements
Conversion to exempt assets like a primary residence or vehicle
These options must follow strict legal guidelines. Any strategy must align with both federal Medicaid laws and Pennsylvania-specific regulations.
Trying to manage this on your own can lead to serious errors and financial hardship. It is essential to consult an experienced elder law attorney before taking any action. They can provide accurate advice tailored to your parents' situation and help you make informed decisions.]]>On Behalf of Maureen L. Anderson Elder Law<![CDATA[Limited or plenary guardianship: Which one do you need?]]>https://www.mlaelderlaw.com/?p=484812025-02-20T10:07:53Z2025-02-20T10:07:53ZAre you considering estate planning for yourself or a loved one? One crucial aspect to consider is guardianship. As we age or face health challenges, we may need someone to make decisions on our behalf. In Pennsylvania, there are two types of guardianships: limited and plenary. Understanding the differences between them is crucial to protecting the independence of your loved ones. In this blog, we'll break down the basics of limited and plenary guardianships so you can make informed decisions about your family’s future.
Limited guardianship
In some cases, an incapacitated person (IP) may be capable of making decisions in certain areas of their life but not in others. That's where limited guardianships come in. This arrangement allows a guardian to make decisions on behalf of the individual, but only in specific areas where they need assistance. The court will outline exactly what rights and responsibilities the guardian has and any limitations. Limited guardianships can be tailored to fit the IP’s needs, whether it's for their personal well-being, financial matters or both. This type of guardianship aims to preserve as much independence as possible, while still providing necessary support.
Plenary or full guardianship
On the other hand, full guardianship grants the guardian complete decision-making authority. This type of guardianship is usually a last resort, when families have exhausted all other options. It's essential to remember that plenary guardianships take away fundamental rights from the IP, so it's crucial to explore less restrictive alternatives first. As a guardian, it's a legal responsibility and a moral obligation to maximize the IP’s independence. If circumstances change, the guardian must petition the court to update the arrangement.
Choosing the right guardianship type
Discussing guardianship arrangements can be complex and emotional, but understanding the options is key to protecting your loved one’s rights. By staying informed, you and your family can be more confident in the decisions you make.]]>On Behalf of Maureen L. Anderson Elder Law<![CDATA[Creating a Power of Attorney in Pennsylvania]]>https://www.mlaelderlaw.com/?p=484802024-11-27T19:01:04Z2024-11-27T19:01:04ZIt is essential for ensuring that your financial, medical and legal affairs are all in order and managed according to your wishes.
Why you need a Power of Attorney
In short: because life is unpredictable and certain situations can leave you incapacitated and unable to make critical decisions, so a POA ensures someone else does.
If you do not have a POA and have an accident, face an illness or become incapacitated, your loved ones and family members will face significant challenges trying to put the pieces together.
When there is no Power of Attorney, the court usually appoints someone to do the work, like accessing your finances and making important choices, like healthcare decisions.
How you create a Power of Attorney in Pennsylvania
Every state has its own unique requirements to create a POA and for it to be valid. It is important to consider both at the time when you create one and designate your person, named an agent.
Choose your Agent
Specify the scope (how much authority you want to give them)
Sign in the presence of a Notary Public, with two witnesses present.
Distribute copies of the POA to the Agent, Healthcare Providers, your bank, etc.
Your Power of Attorney is a critical piece of the big picture when it comes to protecting your legacy. Nobody knows what tomorrow brings, which is why having a POA is so important.
After all, if something happens to you, you probably would have preferences about where to live, who can care for you and more. Don't wait until it's too late-- consider establishing a Power of Attorney today.]]>On Behalf of Maureen L. Anderson Elder Law<![CDATA[How often should you revise your estate plan?]]>https://www.mlaelderlaw.com/?p=484782024-08-23T15:07:23Z2024-08-23T15:07:23Zrevise them, which can hurt them because what they include in their estate plan may not reflect a person's present circumstances.
Big changes
Have you had a recent change in your life? Perhaps a new spouse, child or grandchild. Sometimes, unfortunately, the death of a loved one. These changes prompt a review of your estate plan to ensure your documents match your circumstances and wishes.
Finances
Any significant financial changes should also prompt a review of your estate plan. Whether you receive an inheritance, have a considerable increase or decrease in income, or buy or sell an asset, these situations should result in having a conversation with your attorney about your estate plan and whether you need to make changes.
Laws
Probate and tax laws can change, and they often do. Attorneys stay up-to-date on these changes, so it is recommended that you work with a skilled estates and trusts attorney to help you review your estate plan for legal compliance.
Regularly revising your estate planning documents, even if there are no changes in your life, is a must that you should prioritize. By remaining proactive and making the changes needed when they happen, you can ensure you are protecting your legacy and beneficiaries.]]>On Behalf of Maureen L. Anderson Elder Law<![CDATA[Understanding the Medicaid lookback period]]>https://www.mlaelderlaw.com/?p=484762024-05-23T19:12:04Z2024-05-23T19:12:04ZNavigating the lookback period
Medicaid's lookback period is a timeframe during which all asset transfers by the applicant or their spouse are scrutinized. Here are key points to keep in mind:
The lookback period in Pennsylvania is 60 months, starting from the date of the Medicaid application.
Any asset transfers within this period are reviewed to ensure they're not attempts to meet asset limits by gifting or underselling property.
Violations of the lookback rule result in a penalty period of Medicaid ineligibility, as those assets could have been used to pay for care.
Transactions that could incur penalties
Several types of transactions may be flagged during the lookback period:
Monetary gifts, such as cash given to a grandchild for graduation
Transfer of real estate, like a house deeded to a relative
Sale of personal items, such as collectibles or vehicles, for less than fair market value
Payments for care services without a formal agreement
Even after passing the initial lookback period, beneficiaries must remain cautious. Any new assets acquired, for example through inheritance, must not be gifted away, as this could lead to disqualification from Medicaid benefits.
Proper Medicaid planning can help seniors qualify for the assistance they need without resorting to impoverishment. By understanding the rules and working within them, seniors can ensure they have access to necessary care:
Seeking professional advice
Medicaid planning is intricate, and the guidance of a knowledgeable attorney can be invaluable. If you're considering applying for Medicaid or are concerned about the lookback period, a Medicaid planning attorney can provide the expertise you need to make informed decisions about your assets and care. Contacting a Bucks County Medicaid planning lawyer can help secure your financial future while ensuring you receive the care you deserve.]]>On Behalf of Maureen L. Anderson Elder Law<![CDATA[Which trust is best for my legacy? Three options]]>https://www.mlaelderlaw.com/?p=484432024-02-22T19:19:56Z2024-02-22T19:19:56Z#1: The revocable living trust
A revocable living trust is a popular choice for many as it provides flexibility and control. The person who creates the trust, known as the settlor or grantor, can alter or revoke the trust during their lifetime.
This type of trust allows the settlor to make changes or dissolve the trust as needed. It can also help to avoid probate as the assets in the trust generally bypass the probate process. This can help facilitate a smoother transfer to beneficiaries.
Those putting together an estate plan often prefer the revocable living trust for its adaptability and the ease it brings to the estate settlement process.
#2: The irrevocable trust
Unlike a revocable trust, an irrevocable trust is fixed; once it is established, the creator cannot easily change or terminate it. Benefits that come with this rigidity can include:
Potential tax advantages: A settlor who transfers assets into the trust may reduce their estate tax burden.
Asset protection: This type of trust generally shields assets from creditors and legal judgments against the grantor.
Despite its inflexibility, an irrevocable trust offers significant protection and tax benefits, which can be advantageous for estate planning purposes.
#3: The testamentary trust
A settlor can create a testamentary trust, also known as a will trust, as part of a will. This type of trust comes into effect after the grantor's death. It allows the grantor to dictate terms for asset distribution after death and can safeguard assets for minors or beneficiaries who may not be financially responsible.
The testamentary trust serves as a tool for those who wish to maintain control over their estate's distribution after they have passed away.
Choosing the right trust depends on individual circumstances, goals, and the amount of control you wish to retain over the assets. An estate planning attorney can review your goals and help determine which trust aligns best with your estate planning objectives.]]>