Pennsylvania/Florida Snowbird Issues for Elder Law and Estates Business
If you tried to reach me or my daughter and paralegal, Alisa, last Friday we took some time to attend the Pennsylvania Association of Elder Law Attorneys (PAELA) Winter Conference at Bedford Springs, Bedford, Pennsylvania. While I attended the many programs updating the rules and laws, Alisa had an opportunity to socialize with the group and meet new friends.
PAELA, to which I belong and have belonged for many years now, has been an invaluable resource for elder law issues impacting our clients and this year’s two-day conference conducted by them was no exception. On Friday and Saturday I attended programs on “Snowbird” (Pennsylvania/Florida) planning, assisting clients through grief, current federal and Pennsylvania nursing home regulations, succession planning for attorneys including transitioning to different types of practice, unusual Medicaid planning issues, and guardianship practice under the newly effective Pennsylvania rules.
It occurred to me afterward that readers might not have the opportunity to take a glimpse into the type of work we handle or the issues confronted and it could make sense to address some of the major ones one by one. The first was the commonly encountered issue of how Pennsylvania residents retiring to Florida might decide whether to consult with a Florida attorney. The short answer provided by our speaker is “at minimum a person moving to Florida must have their estate documents reviewed by a Florida attorney.” While the “Will vs. Living Trust” issue is common, one point many do not recognize, for instance, is that Florida powers of attorney are different. “Super Powers” must be specifically described, for instance, in order to be effective. The longer answer to questions on Florida review might be what to do if this planning has not been considered
initially. Also, there is the ever-present question whether and when a Pennsylvania resident actually transitions to becoming a Florida resident and what is the practical effect on taxes and creditor protection when and if that happens.
Howard Krooks, Esq., our speaker, with more than thirty years’ elder law experience in Florida and offices with Cozen O’Connor in Florida, Pennsylvania and New York is highly qualified on the topic of Florida-Pennsylvania law and is a really personable co-elder law attorney as well. I met him years back at another PAELA/Bedford Springs conference. One subject that always comes up is the Florida “homestead exemption,” a protection not provided in Pennsylvania. Under the Homestead Exemption “every person who has legal or equitable title to real property in the State of Florida and who resides thereon and in good faith makes it his or her permanent home is eligible to receive a homestead exemption of up to $50,000. The first $25,000 applies to all property taxes. The additional $25,000 applies to any assessed value over $50,000 and only to non-school taxes.” There are additional provisions regarding persons 65 and older, disabled veterans, and others. One critical point is that the applicant needs to have been dwelling in the property for which the exemption is being claimed on January 1 of the year requested. Proof must be provided. Rental can destroy the claim of residency. Possibly even more important is the protection from creditors that may be claimed. With some exceptions creditors cannot force a sale of the property to satisfy judgments. Exceptions include property taxes, mortgage on that property and a few others. The property can be titled in the name of a revocable living trust and still claim the homestead exemption provided other conditions are met. This was only relatively recently decided.
On Medicaid planning, generally speaking it is much easier to obtain Medicaid for nursing home services in Florida than it is in Pennsylvania. Several
planning strategies available in Florida are not similarly available in Pennsylvania.
When considering Florida vs. Pennsylvania another issue can come to the fore and I have seen it in my own practice. Some clients move to Florida and then, because family remains in Pennsylvania or in another state up north and the disabled senior needs their family help and support he/she returns, the rules need to be reconsidered. Is it possible, for instance, to return up north and maintain the homestead exemption for the Florida property? Probably not but this and other issues make it helpful for answers that we also belong to other national organizations with attorney contacts throughout the country – the National Academy of Elder Law Attorneys (NAELA) and the National Elder Law Foundation.
About the Author Janet Colliton
Esquire, Colliton Law Associates, P.C. Janet Colliton has practiced law for over 38 years, 37 of them in Chester County, Pennsylvania, a suburb of Philadelphia. Her practice, Colliton Law Associates, PC, is limited to elder law, Medicaid, including advice, applications and appeals, and other benefits planning including Veterans benefits, life care and special needs planning, guardianships, retirement, and estate planning and administration.