Fiduciary Defined

Sometimes people ask for a more clear definition of the term fiduciary, and we came upon this straightforward definition recently and thought we would share it with you.

A fiduciary is an individual, corporation or association holding assets for another party, often with the legal authority and duty to make decisions regarding financial matters on behalf of the other party.

It is usually best to consult your attorney or a trusted advisor if you feel you or your family could benefit by entering into a fiduciary relationship.

Could Your Family Benefit From a Fiduciary?

Over the past several years we have frequently been called-upon to serve in a fiduciary capacity for clients.

As you may know, a fiduciary is a legal or ethical relationship of trust between two or more parties; one party acts in a fiduciary capacity to the other one, who vests their confidence, good faith, reliance and trust to the fiduciary, whose aid, advice or protection is sought in some matter.

In such a relation, good conscience requires the fiduciary to act at all times for the sole benefit and interest of the one who trusts. A fiduciary duty is the highest standard of care at either equity or law.

Several of our earlier posts have referenced the challenges many families face when caring for aging parents or settling their estates. Should your family encounter stress or discomfort due to these or similar circumstances, it can be comforting to know that a trusted advisor such as your estate planning or elder law attorney can also serve in a fiduciary capacity.

Caregiver Series: Three More Critical Areas of Focus

As many of you are well aware, caregiving can be an emotional rollercoaster and there is often the inclination to forget one’s own needs.  

In one of our April posts we noted three areas in which caregivers should take care of themselves. Here are three additional and equally-important considerations for family caregivers:

1. Join a support group.
2. In addition to talking to your loved one's physician about the needs of your loved one, talk to your physician about your needs and what is going on with you.
3. Manage your stress, exercise, get respite and take time for you.

  

Son Liable for Nursing Home Bill Under Filial Responsibility Law

A Pennsylvania appeals court recently found a son liable for his mother's $93,000 nursing home bill under the state's filial responsibility law.

His mother entered a nursing home for rehabilitation following a car accident. She later left the nursing home and moved out of the country, leaving a large portion of her bills unpaid. She filed an application for Medicaid, which is still pending.

The nursing home sued the son, under the state's filial support law, which requires a child to provide support for an indigent parent. The trial court entered a verdict in favor of the nursing home, despite the son's appeal arguing the court improperly put the burden of proving his inability to support his mother on him, and that the court should have considered alternate forms of payment such as Medicaid.

However, the verdict stood, as the Superior Court stated the law does not require the court to consider other sources of income or to stay its determination pending the resolution of a Medicaid claim.

Read full article...

Impact of American Taxpayer's Relief Act (ATRA)... "Portability"

One of the most significant changes associated with The American Taxpayer's Relief Act (ATRA) is that the "portability" of the federal estate tax exemption between married couples has become permanent and inflation-adjustable. 

While this is generally good news for married people (in 2013, a married couple can pass on up to $10.5 million to their heirs free from federal estate taxes), there are potential complications in situations involving second or third marriages.

Surviving spouses might also be required to file certain IRS forms, or run the risk of losing the deceased spouse's exemption.

Three Important Areas of Focus for Caregivers

As we've noted in previous posts, caregiving can be an emotional rollercoaster and there is often the inclination to forget one’s own needs.  

Here are three important areas in which caregivers should take care of themselves:

1. Ask for and accept help, you cannot do it alone.  It can take a village.  There are many resources available.  Don’t wait until you are exhausted and overwhelmed. 
2. Information is power; Be proactive, see an elder law attorney, review and discuss finances with a financial advisor; research benefits such as Veteran’s benefits and explore options such as daycare and home assistance.
3. Consider your own needs, “put your oxygen mask on first.”

Elder Law 2013 - Many Changes!

The American Taxpayer’s Relief Act (ATRA) of 2013 has brought about an new tax paradigm in which planning must focus on capital gains, asset protection, state tax issues, income tax issues and Medicaid planning, all of which fall under the elder law umbrella.  

This will create new challenges for families as well as estate planning generalists that are not experts in the elder law component of estate planning.

We attended this year’s Heckerling Institute for Estate Planning conference in Florida because, more so than ever before, the estate planning and elder law landscape has changed, having been impacted by a number of factors, including the ATRA and a continually-aging U.S. population  in which nearly 10,000 Americans turn 65 every day!

We will share developing perspectives about elder law in our upcoming posts based on the above-listed changes.