Best Probate Attorneys in Pittsburgh, PA

When going through the long-term care planning process, it may be a good idea to review insurance policies and the coverages each policy provides, such as:

Rather than making a child a joint owner of your bank accounts, it is better to have a child listed as your agent or power of attorney on the accounts so that your child can make deposits or write checks for you if you become disabled or incapacitated. There are several reasons why you may not want to list your child as a joint owner. First, if your child predeceases you and is a joint owner, you can end up paying Pennsylvania inheritance taxes on your own money. Second, if your child gets divorced, the joint account may be considered an asset to be divided in the property settlement. Third, if your child has a lot of debts, creditors may try to go after the money in joint accounts to pay bills. These are just a few reasons why it may not be a good idea to make a child a joint owner of your bank accounts. It can be helpful to consult with an elder law attorney to make sure bank accounts and other assets are appropriately titled as well as set up a durable power of attorney to enable your child to help you if you become disabled.

It is a good idea to review your will periodically with a lawyer to ensure that it still accurately reflects your wishes. It is especially important to review your will when circumstances change, for example, if a spouse or child dies, you divorce, win the lottery, or move out of state. It is also important to review your will when the law changes, such as, when the federal estate tax is adjusted.

While a regular mortgage requires you to make monthly payments to a lender, a reverse mortgage allows you to receive money from the lender based on the equity in your house. You generally do not have to pay back this money for as long as you live in your house. Instead, the loan is repaid when you die or sell your house, or your house is no longer your primary residence. Once the loan is repaid, any remaining equity is retained by you or your heirs. The proceeds from a reverse mortgage are generally tax-free and do not affect your eligibility for Medicare or Social Security, but may affect eligibility for other government benefits. A reverse mortgage is not income or credit-based, but you must be at least 62 years old, and meet other requirements to qualify. Lenders often charge a number of additional fees, including origination and service fees and closing costs, to provide you with a reverse mortgage, which is also subject to interest rates which will increase your total outstanding debt over time. However, a reverse mortgage allows you, not the bank, to own your house as long as you live there, and most reverse mortgages include a provision which prevents you from ever owing more than your house is worth. These are just some of the considerations involved in deciding if a reverse mortgage is right for you. More information on reverse mortgages is available for free through AARP, the Federal Trade Commission, or your local Housing and Urban Development Office.

There are several reasons why you may not want to make your child a joint owner of your house. First, if your child predeceases you and is a joint owner, you can end up paying Pennsylvania inheritance taxes on your own house. Second, if your child gets divorced, the house may be considered an asset to be divided in the property settlement. Third, if your child has a lot of debts, creditors may try to go after the money in joint accounts to pay bills. It is also possible that transfer of ownership of your house may affect your eligibility for Medicaid for a period of time if you need nursing home care within three years of the transfer. These are just a few reasons why it may not be a good idea to make a child joint owner of your house. It can be helpful to consult with an elder law attorney to make sure assets such as your house are appropriately titled for your particular family circumstances.