Category Archives: Estate Law

Will I be liable back property tax if I am her POA?

Q: My friend wants to make me power of attorney. She wants to give me all her belongings when she passes away for taking care of her now. She owes $6,000.00 back property tax that she says she cannot pay, I just want to know if I will be liable for that? (Swissvale, PA)

A:  As an Agent for a Principal under a Power of Attorney, you would have no personal liability unless you acted beyond your scope of authority. You cannot sign a will for her as her Agent. She needs to sign the Will. If you inherit the house through the will, you would be liable for the property taxes. I have seen taxing bodies sue heirs of real estate under a will, even when they do not take title by deed. If you inherit other money from her, you may be able to pay the taxes. You should get an idea of what her estate would consist of and what her estate expenses will be and review it with a lawyer.

How long after probate does Medicaid have to recover money?

Q; Mom in Nursing home with Medicaid for 7 months. Dad paid cash for her. Mom died in May 20l6. Dad died July 20l6 with $70,000 in his bank account and the house. We never received a bill from Medicaid. We are in probate, but no response from Medicaid. The attorney said they lost the bill. We don’t want to be involved in Medicaid Fraud.

A: You need to ask your attorney what the status of the Medicaid claim is. Generally, once an estate is opened, the estate has an obligation to notify the state’s Medicaid program of an estate being opened, in which county it has been opened, the docket number and the contact person for the estate. Once this is done, Medicaid is considered to have been put on notice of the estate and to promptly file their claim. If the estate was legally advertised, in theory, all claimants have on year from the first date of advertising to file a claim. Even so, a Medicaid claim normally must be satisfied.

How can I have my 93-year-old mother declared incompetent?

Q: My sister and I have had joint POA since 2013, but not immediate. We have never exercised any POA. I have been taking care of her, although she is in an “independent living” place. I do her finances, her shopping…she should not be alone any more, as her health and mental condition are both deteriorating. She cannot live with me. My sister and her husband are willing to have her move in with them in another state, until a nursing home or hospice is the only option. She does not want to go, but at this point it cannot be her choice anymore. Ten years of my life are gone. (West Mifflin, PA)

A: This is a difficult situation. If your mother is deemed to be incompetent to manage her own affairs, you can file to be appointed her guardian. Until then, she can make her own decisions. You really need to sit down with a lawyer who handles guardian work and share all the facts.

During probate, can I get my belongings from decedent’s home?

Q: My aunt died without a will and left a property behind in Pennsylvania. She has only one living daughter in Florida. She hired a probate attorney who set up a trust to deal with the process because she is too busy to deal with it herself. There are many things in the house that are mine that my aunt had let me keep there for storage. I try to enter the home to retrieve them, but the trustee tells me I am not allowed on the premise. Is there a way I can be allowed inside? I am afraid that my valuable belongings will be inventoried along with my aunt’s things. (Pittsburgh, PA)

A: A Trustee or Executor, has legal authority over real and personal property of a deceased person. They have a duty to preserve it and keep it in tact until it can be inventoried and accounted for and properly disbursed pursuant to the trust agreement or will. If you cannot work this out with the Trustee or Executor, you will have to hire a lawyer to file a petition in the Orphan’s Court in the county which has jurisdiction. This is likely to be where your aunt resided and died. If this property is indisputably yours, you should have no problem. If there is a question and you have no clear proof such as receipts or records, it may be difficult.

Am I entitled to my Deceased fathers estate step mother dies?

Q: My natural father divorced my mother when I was 10 years old. I have 2 siblings. He remarried a woman with two children and didn’t father any of his own with her. He gained custody of me but due to the physical abuse by my father and stepmother, I became a ward of the state until I was 16. My father had a sizable estate when he passed away, which I believe could be millions of dollars. This stepmother controls all assets and when my father was alive prevented any type of relationship or financial assistance to any of his children. When she passes away are we entitled to sue the estate? She lives in Florida now. (Finleyville, PA)

A: I assume your father did not leave anything to you when he passed? If so I am not sure why his wife would. However, you never know. There is no law that says you are entitled to any inheritance from either your father or your step mother. Both have the free will to exclude you from their estate or inheriting in any way from them. There is too little information here to provide an answer. When you learn she passes, you may want to talk with the attorney of her estate or trust to determine if by chance there you are an heir. If you are an heir of her estate, or their trust, you will be contacted. However, it wouldn’t hurt to be proactive and call the attorney handling her estate.

Can executor disconnect power without notice?

Q: I was living with my mother-in-law when she passed. Her “best friend” who is the executor in the will, has turned off the power without notice and closed her bank accounts. She has not informed any of the creditors of her passing or close friends. The house that she resided in for 32 years has a reverse mortgage. However, I still reside there with her seven cats who I love dearly. I pay the water, sewer, garbage and gas bills. The gas bill was three months behind when she passed and am currently trying to bring current. Please advise thank you for your time, any information is very much appreciated. (Squirrel Hill, PA)

A: If this “best friend” has not been appointed Executor by the court, she has no authority to act on your mother-in-law’s behalf. Merely being named Executor in the will does not give her such authority. She needs to be appointed by the court. I would call the utility companies and inform them what happened, and that no executor has been appointed and you are living in this house. If you get nowhere, call the PA Public Utilities Commission. It regulates utility companies. They may have a remedy and complaint filing procedure.

If my husband dies does ex-wife get his life insurance?

Q: My husband had a pretty nasty divorce and his ex-wife has made comments to their adult children that “she has plans to sue me in the case that he dies”. Does she have this right and can she sue if we have a good will in place? (Jeanette, PA)

A: Once divorced she no longer has rights to inherit from him under the intestacy (no will). In his new will he can leave his property to whomever he wishes with no obligation to her. As a precaution, he may want to check his insurance policies, annuities, 401Ks and other non-probate property to make sure he has removed her as a beneficiary, and replaced her with someone else. This is not a difficult process. It usually involves calling the financial company and having them mail you a change of beneficiary form. The forms are often on-line. I would make an appointment with a local attorney for a will and other estate planning documents.

If a person is power of attorney of their grandfather, can they give themselves gifts?

Q: Co-worker has power of attorney over his grandfather’s finances. Since then he has spent over $400,000 on buying himself vehicles, a boat, property, and other personal items on himself. The grandfather is being kept in nursing home. We are wondering if he can legally use the money this way, while his grandfather is still alive. (Bethel Park, PA)

A: It does not sound right as there is a strong duty for the agent to only act in the best interests of the principal. However, if the POA document states in writing the Agent can make gifts to himself, then it may be permissible. However, even if the agent is authorized to make gifts to himself, he may be liquidating funds that might be needed in the future to maintain adequate health care. This would be a violation of his fiduciary duties. Such spending may also jeopardize the uncle’ eligibility to receive Medicaid funding if he ever needs it. Therefore, even if gifts to himself are permitted, he would not be acting in the interests of the principal by diminishing the principal’s liquid assets. If you want to get involved, you may want to call Adult Protective Services to assess the situation.

Do we need to open an estate?

Q: Our dad passed Mar 7 and mom on March 13. An insurance policy needs to be paid to my sister and I. Do we need a Small Estate? No real estate involved. Bank accounts have been closed. They were both in an assisted living facility and most of their estate was spent on their care. The insurance company is insisting we need a Small Estate Affidavit. The insurance policy was issued by Dad’s employer in the amount of $2150. We do not want to probate the will for this small amount. What do we need to do and can we do it ourselves or do we need an attorney? Since our mother died so soon after our dad and we had no time to have the insurance paid to her, is this complicating the issue? Their will names my sister and I as co-executrices. (Pittsburgh, PA)

A: If there are living beneficiaries on the policy, the proceeds can be paid directly to the be beneficiaries without court or lawyer involvement. If the named beneficiaries are deceased, then the insurance company will only release the money to the estate. If the amount of the proceeds is under $11,000.00, section 3101 of the PA Probate, Estate and Fiduciary Code allows the insurance company to pay certain next of kin directly, without opening an estate. The insurance company may be from out of town and not know PA law. If you show them the statute, they may change their minds. If they still will not release the money, you can have an attorney file a small estates petition in Allegheny County as there are assets under 25k and no real estate. It may be a long shot, but some insurance companies have allowed me to obtain such proceeds with a document they have or which I craft if necessary, titled, Waiver of Probate and Release.

Does cash under the mattress get reported to probate court?

 

Q: Does cash under the mattress have to go to probate court when somebody dies? The death person gave this money to relatives to hold to prevent creditors of the estate from taking it when he dies. It is impossible for the creditor of the estate to know that this cash exists. A probate lawyer told the two adult children after examining all bank statements of the death person that it needs to be reported. The creditors think that this money was spend. The death person was living rent free in a house that legally belonged to relatives. (Uniontown, PA)

A: Yes, it must be reported. It is considered property of the “death person” in the form of cash and part of their estate. It must be reported on the estate Inventory and estate Inheritance Tax Return.