Another PA Inheritance Tax Exemption Engrafted?

On January 23, 2013, the Central Pennsylvania Business Journal reported in an article entitled Pa. House committee passes bill to end 'death tax', that the Finance Committee of the Pennsylvania House approved a bill Tuesday for further consideration by the full House that would eliminate Pennsylvania inheritance tax on family-owned businesses.

Cumberland County Republican Rep. Stephen Bloom introduced the measure, which also came up last legislative session.

"The death tax hits businesses during a time when they are most economically vulnerable, crippling our next generation of job creators," Bloom said in a statement. "This is an unnecessary loss to our economy and to the businesses that create 65 percent of Pennsylvania jobs."

House Bill 48 has 70 co-sponsors in the House and is backed by the National Federation of Independent Business in Pennsylvania, the Pennsylvania Retailers' Association and the Americans for Prosperity-Pennsylvania, among others. * * *

In a prior article by Alex Nixon, entitled Proposal would exempt family businesses from Pennsylvania inheritance tax (01/16/13), the reasons for the proposed changes were discussed from the sponsors' and beneficiaries' viewpoints.

The state‘s inheritance tax can leave heirs scrambling to cover a tax bill. And many end up selling the business or taking out costly loans.

“If something were to happen suddenly to my father, there would have been tens of thousands of dollars of estate taxes owed,” said Dave Cranston Jr., president of Cranston Material Handling Equipment Corp. in Robinson. “None of us have that (money) sitting around waiting.”

Cranston owns 80 percent of the business founded by his grandfather in 1957, and his father is alive and well.

But a bill before Harrisburg lawmakers could end the worry for other family-owned companies across the state.* * *

Such relief is proposed in a fashion generally paralleling that which took effect on July 1, 2012, to exempt family farms from such taxation.  See: PA EE&F Law Blog, Family Farms Exempted from PA Inheritance Tax (07/03/12).

Reporter Melissa Daniels, of the Pennsylvania Independent, had interviewed me earlier this year as she prepared her article entitled Family owned businesses could see ‘death tax’ exemption (01/02/13).

Some Pennsylvania lawmakers say the state’s inheritance tax is inherently unfair.
While those lawmakers succeeded in eliminating the tax for family owned farms last year, this session marks round two, with family owned businesses possibly getting a break.

State Rep. Steve Bloom, R-Cumberland, will soon introduce legislation to eliminate the inheritance tax on business assets, including real estate, for children, siblings or other relatives of a decedent.

He led similar legislation last year that exempts family owned farms from paying the tax.

Bloom’s proposal chips away at the tax, rather than eliminating it altogether. But whether another exemption happens will depend on whether lawmakers can stand losing state revenue. * * *

She quoted my concerns about additional changes to Pennsylvania's Inheritance Tax law motivated by one constituency without regard to the effect upon other taxpayers.  I believe that reforms should consider the entire scope of the tax, particularly in view of the transitional and uncertain nature of the federal estate, gift, and generation-skipping tax systems.

But creating parsed-out exemptions in tax codes can create an extra layer of confusion, despite the intent, said Neil Hendershot, a Harrisburg-area attorney who specializes in estate planning.

The inheritance tax is convoluted on its face, he said, with different rates for different situations, and various reporting requirements that may or may not apply to all situations.

“It bears a review but doing it on an ad hoc basis is going to make it more and more complicated,” Hendershot said.

Hendershot said he would prefer to see the law streamlined for all asset classes, or perhaps revamped with advice from a panel of experts. Issues surround the tax, such as privacy concerns on making asset values public information, that could be part of the discussion, he said.

Pennsylvania's Inheritance Tax Laws derive from roots planted in 1826.  Pennsylvania was the first state to apply an inheritance tax, and has done so continuously since.  

Like a tree long-grown and mature, Pennsylvania's Inheritance Tax laws and administrative system may require pruning -- but not just the one low-hanging branch on one side which bothers some nearby.  It is time to examine the living purpose of, and the shadow cast by, that tree in its entirety, thoughtfully and skillfully.  

The Legislature, instead, should constitute a qualified study group to do just that, with the interests of all Pennsylvanians in mind.

Health Laws Impact LGBT Folks

Impact of Health Law on LGBT Individuals and Families is the title and subject of a 1½ hour continuing legal education program to be held on Friday, October 12, 2012, as sponsored by the Allegheny County Bar Association, through its Health Law Section, in partnership with its LGBT Rights Committee, which was created in March, 2012.  Highmark underwrites the program.

A panel of experts representing perspectives from across the industry will present an assessment of the new federal healthcare reform law, FMLA [Family and Medical Leave Act], Advance Directives and Health Care Decision Making, and Hospital Visitation and Consent to Treatment for Minors and will discuss the impact of these laws on the LGBT community.

Much of this information will also apply to other non-traditional families.

This program will serve healthcare providers and their attorneys who need to be aware of the unique characteristics and challenges of LGBT individuals and families, as well as other nontraditional families, in the healthcare setting.

LGBT (lesbian, gay, bisexual, and transgender) folks, or individuals in "non-traditional" families, have drawn greater attention during the past twenty years.  In the healthcare delivery and decision-making settings, their personal expectations and interpersonal relationships often become ignored or overridden by application of statutes that grant "default" rights to others, defined by bloodline or traditional legal relationships.  

Awareness, forethought, and implementation are recommended for LGBT folks, their families, and their attorneys to overcome such hurdles.  Absent attention, planning, and documentation, an unwanted, unnecessary crisis might result.

On June 19, 2012, the federal Health and Human Services Department, through its LGBT Issues Coordinating Committee, issued its 2012 Report, entitled "Improving LGBT Health" (PDF form).  Its introduction repeated a national philosophy:

It’s at the heart of the American dream: the belief that if you work hard, if you're responsible in your community, if you take care of your family, then that’s how you should be judged.  Not by what you look like, not by how you worship, not by where you come from, and not by whom you love. 

This belief means ensuring that LGBT Americans have the same protections and opportunities as their neighbors, colleagues, and family members.  And over the last three years, this Administration has undertaken a broad agenda to do just that.”

That report highlighted two concerns, which should be addressed under Pennsylvania law at the ACBA's program:

Of critical importance for LGBT advocates is the CMS position on medical decision-making, allowing LGBT couples greater flexibility to make care decisions for their loved ones.

Similarly, it is important that LGBT patients and their families are more recognized in health care service delivery environments and approaches, including the development of a culturally competent service standard to be followed by healthcare professionals and organizations. * * *

The presenters at the ACBA program will be:

• Robert Wolf, Esq. (Advance Directives, POLST, Healthcare Decision Making) Tener, Van Kirk, Wolf & Moore, PC; 
• Elisabeth J. Poggi, Esq. (Advance Directives, POLST, Healthcare Decision Making) Buchanan Ingersoll & Rooney PC; 
• Sheryl Kashuba, Esq. (Hospital Visitation and Consent to Treatment for Minors) UPMC Health Plan; 
• Vikram Mangalmurti, Esq. (Accountable Care Act) VP Highmark Office of Healthcare Reform; and
• Mark Phillis, Esq. (Family and Medical Leave Act) Littler Mendelson, PC

The program will be held on Friday, October 12, 2012, in the ACBA Conference Center Auditorium, 920 City-County Bldg., 414 Grant Street, Pittsburgh PA, with registration and lunch from 11:30 AM – 12:00 Noon, followed by the presentations until 1:30 PM.

For ACBA members, the cost is $25, and for others, $60.  Registrations can be made online through the ACBA.

Family Farms Exempted from PA Inheritance Tax

On July 2, 2012, Governor Tom Corbett signed legislation that, effective after June 30, 2012, exempts working farms and some related agricultural commodities from Pennsylvania Inheritance Tax.  

The Governor's Press Release was posted by PR Newswire under the title Pennsylvania Governor Tom Corbett Ends Burden for Farmers by Eliminating Inheritance Tax (07/01/12):

Pennsylvania farmers can now pass their farms on to their heirs without worrying they will have to pay steep "death taxes" to keep them in the family.

"The death tax has forced too many families to sell their legacy, their land and their way of life," said Governor Corbett. "This tax has put too many farms out of business because it was too expensive for farmers to pass them down to their children. This will happen no more. We intend to save our farms."

Previously when a landowner died, heirs to their farm property had to pay an inheritance tax of 4.5 percent if they were adult children and 12 percent if they were siblings of the deceased.

"The inheritance tax has been a burden on farm families for decades," said Agriculture Secretary George Greig. "By eliminating this tax, Governor Corbett solidified his commitment to Pennsylvania farm families, and to keeping farmers farming for generations. This law provides farmers the opportunity to save thousands of dollars in inheritance tax, allowing them to reinvest in their agricultural operations." * * *

There was some confusion whether the bill was signed into law on June 30th, when first announced, or later as a part of the budget bill signed by the Governor on July 2nd.  A Press Release by the Governor's Office issued on July 3, 2012, confirms that the relevant bill was signed on July 2nd.  However, the provisions related to this new exemption "shall apply to the estates of decedents dying after June 30, 2012."

The tax relief originally was introduced in the House as House Bill 1864, PN 2401, by Representative Stephen Bloom, of Cumberland County, PA, as sponsored by many other representatives.  That bill provided, simply:

Section 2111.  Transfers Not Subject to Tax.‑‑* * *

(s)  A transfer of an agricultural commodity, agricultural conservation easement, agricultural reserve, agricultural use property or a forest reserve, as those terms are defined in section 2122(a), to lineal descendants or siblings is exempt from inheritance tax.

The objectives of HB 1864 were supported by the Pennsylvania Farm Bureau, which provided testimony on October 17, 2011 to the PA House Finance Committee in support of Inheritance Tax reduction or elimination, including the proposed exemptions provided in HB 1864.  See: Testimony (PDF, 6 pages).

That Bill's objectives became incorporated into the omnibus budget bill, HB 761, PN 3894.  

This lineage was described by the House Republican Caucus in a posted article, Inheritance Tax Relief Measure Heads to Governor’s Desk (06/30/12):

A measure to end the financial burden of Pennsylvania’s inheritance tax on surviving farm family members has become part of the 2012-13 state budget package, which was sent to the governor tonight, said Rep. Stephen Bloom (R-Cumberland).

Bloom’s original bill, House Bill 1864, would exempt transfers of agricultural assets from the Pennsylvania inheritance tax when the receiving heir is a sibling or child of the deceased farmer. The exemption was incorporated into the omnibus Pennsylvania Tax Code bill (House Bill 761) by the Senate this week and passed finally by the House today.

“This measure will prevent the state from continuing to penalize farm families in Pennsylvania during a time when they are most economically vulnerable,” said Bloom. “By eliminating the death tax on transfers of ag assets, we can help farm families keep farming successfully in future generations.”

In addition, Bloom’s initiative would extend the new inheritance tax exemption to farm commodities, such as livestock and crops. It would also exempt from the death tax forest reserves that are passed along from a parent to a child or the parent’s brother or sister.

“This measure is a huge win for Pennsylvania farm families,” said Bloom. “Too many family farms have been divided up and sold when a loved one dies, because surviving family members are unable to pay the burdensome inheritance tax on their farm property.”

The House originally approved Bloom’s measure in December, on a 190-1 bipartisan vote. Companion legislation introduced by Sen. Dominic Pileggi (R-Chester/Delaware) was also amended into the Pennsylvania Tax Code, which was sent to the governor as part of the 2012-13 budget package tonight. * * *

Section 23 of HB 761, PN 3894, which became Act No. 85 of 2012, effective as of June 30, 2012, now provides, in part:

Section 2111 of the act is amended by adding subsections to read:

Section 2111.  Transfers Not Subject to Tax.‑‑* * *

(s)  A transfer of real estate devoted to the business of agriculture between members of the same family, provided that after the transfer the real estate continues to be devoted to the business of agriculture for a period of seven years beyond the transferor's date of death and the real estate derives a yearly gross income of at least two thousand dollars ($2,000), provided that:

(1)  Any tract of land under this article which is no longer devoted to the business of agriculture within seven years beyond the transferor's date of death shall be subject to inheritance tax due the Commonwealth under section 2107, in the amount that would have been paid or payable on the basis of valuation authorized under section 2121 for nonexempt transfers of property, plus interest thereon accruing as of the transferor's date of death, at the rate established in section 2143.

(2)  Any tax imposed under section 2107 shall be a lien in favor of the Commonwealth upon the property no longer being devoted to agricultural use, collectible in the manner provided for by law for the collection of delinquent real estate taxes, as well as the personal obligation of the owner of the property at the time of the change of use.

(3)  Every owner of real estate exempt under this subsection shall certify to the department on an annual basis that the land qualifies for this exemption and shall notify the department within thirty days of any transaction or occurrence causing the real estate to fail to qualify for the exemption. Each year the department shall inform all owners of their obligation to provide an annual certification under this subclause. This certification and notification shall be completed in the form and manner as provided by the department.

(s.1)  A transfer of an agricultural commodity, agricultural conservation easement, agricultural reserve, agricultural use property or a forest reserve, as those terms are defined in section 2122(a), to lineal descendants or siblings is exempt from inheritance tax. [Emphasis added.]

Act 85 includes some new definitions relevant to the exemptions:

Section 2102.  Definitions.‑‑The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

* * *

"Business of agriculture."  The term shall include the leasing to members of the same family or the leasing to a corporation or association owned by members of the same family of property which is directly and principally used for agricultural purposes. The business of agriculture shall not be deemed to include:

(1)  recreational activities such as, but not limited to, hunting, fishing, camping, skiing, show competition or racing;

(2)  the raising, breeding or training of game animals or game birds, fish, cats, dogs or pets or animals intended for use in sporting or recreational activities;

(3)  fur farming;

(4)  stockyard and slaughterhouse operations; or

(5)  manufacturing or processing operations of any kind.

* * *

"Members of the same family."  Any individual, such individual's brothers and sisters, the brothers and sisters of such individual's parents and grandparents, the ancestors and lineal descendents of any of the foregoing, a spouse of any of the foregoing and the estate of any of the foregoing. Individuals related by the half blood or legal adoption shall be treated as if they were related by the whole blood.

The effective date of the act is stated as follows in Section 30 (7) of the Act:  "The amendment or addition of sections 2102 and 2111(s) and (s.1) of the act shall apply to the estates of decedents dying after June 30, 2012."

Note: Thanks to Kathleen B. Murren, Esq., Professor, Legal Studies Chair, Legal Studies Department, Harrisburg Area Community College, for providing an initial inquiry to me, which led to my blog posting.

Top Ten Reasons to Join "Wills for Heroes"

I write this blog entry on a Saturday morning at the Widener University School of Law (Harrisburg Campus) during a "Wills for Heroes" session, which offers free wills and other estate planning documents to first responders and their spouses or domestic partners.

Document preparation is accomplished by volunteer lawyers using custom-designed legal drafting software.  Client execution of documents occurs before volunteer notaries and law student witnesses.  Conduct of the entire process is guided by experienced staff.

This session is co-sponsored by the Dauphin County Bar Association and the Pennsylvania Bar Association, Young Lawyer's Division, and is supported by some benefactor organizations.  See: Brochure, Wills for Heroes Pennsylvania (PDF, 2 pages).

I followed this program for many years, but only became involved personally in 2011. See: PA Bar Promotes "Wills for Heroes" Further (07/18/11); "Wills for Heroes" Workshops Multiply in PA & DE (08/03/10); PBA's Young Lawyers Sponsor "Wills for Heroes" (05/06/09); and Firefighters, First Responders, and Free Wills (05/15/08).

This is the second such event that I attended at WLS-Harrisburg.  I participated in a similar, but much larger and longer session held here on a Saturday in mid-November, 2011.  I served as an "expert" on demand, discussing specific concerns or offering document solutions.  

Those five pro bono hours were shared with experienced local lawyers, enthusiastic second- and third-year law students, and efficient notaries -- all volunteers.  Our activities were organized by PBA staff.  Each participant was devoted to producing a set of individualized last wills, durable powers of attorney, and health care directives to worthy non-paying clients -- first responders and their life mates.

The first responder clientele had qualified for such pro bono legal services as firefighters, police officers, paramedics, corrections personnel, or probation officers, employed by or volunteering through a federal, state, or local government, or their related agencies and public service associations.  

Most first responders brought a spouse.  Some even brought their young children, who played with toys in a special area.  

The first responders had attended an orientation session or had received an explanation package previously.  The objectives, benefits, and limitations of the program were explained.  

An estate planning questionnaire was distributed for their completion in advance of their scheduled interview at the session.  Most had completed that questionnaire; but some arrived sheepishly in hopes of completing a blank one during their interview with a lawyer.  Either way was okay.

The process proceeded past sign-in, into a personal, confidential interview with a lawyer seated with a portable computer at a "station".  The lawyer then entered data from the questionnaire -- supplemented by responses during the interview -- into document assembly software specifically designed for the WFH program.  Special concerns could be addressed, within limits.  

Next, document drafts were printed, reviewed by the lawyer and clients, and revised if necessary.  Final documents, together with a representation letter (as to limited engagement and then termination of that professional relationship) and a post-execution instruction letter, were produced on laser printers.

The clients carried their document packages to a square table that appeared to host a bridge game looking for a fourth player.  The notary and two witnesses proceeded through the signing formalities with the clients.

An hour or so after signing in, the clients left with free, personalized, dependable estate and personal planning documents resulting from their intentional planning with professional implementation.

The benefits to the first providers are unquestionable and valuable.  But what are the benefits to the other participants -- the volunteer legal services providers?  

In keeping with a tradition of making Top Ten lists, I offer the top ten reasons to volunteer at a Wills for Heroes session in your area: 

#10: You can join hundreds of lawyers in many states who have participated in this program since 2001.

#9: You can eat free food -- donuts and coffee for breakfast, or soft pretzels, pizza, and soda for lunch -- depending upon your shift.

#8:  For lawyers, you can meet yourself years ago as a law student, or, for law students, you can meet yourself years from now as a lawyer, and then interact with your doppelgänger.

#7:  You can get your name/face in a newsletter or newspaper, or perhaps even on television -- but only if you sign the media consent form -- since such sessions often become local news.

#6:  You can brush up on estate planning law during the one-hour participants' orientation session offered before clients arrive.

#5:  You can learn about document assembly software, which is checklist-oriented and data-entry based, but which transfers a set of documents into standard word processing software.

#4:  You can hone your people skills in a safe and supervised environment.

#3:  For lawyers, you can obtain pro bono service credit and recognition.

#2:  You can meet some special, dedicated people --  the first responders -- as short-term clients.

and the best reason to volunteer at a Wills for Heroes session in your area -- particularly one sponsored by the Pennsylvania Bar Association -- is . . .

#1:  You can help first responders, who already work daily to help all of us.

Graphic reproduced from the Lawyers and Settlements Blog

Update:  06/12/12:

I noticed that the Wills for Heroes website linked to this post in its "News" section.  I'm pleased to be a part of their promotion of this worthwhile Program.

PA Bar Promotes "Wills for Heroes" Further

In an emailed member newsletter received July 18, 2011, the Pennsylvania Bar Association continues its support and promotion of a "Wills for Heroes" program, as pioneered in 2007-08 by the American Bar Association, through a specialized statewide program in the Commonwealth conducted by the PBA's Young Lawyers Division:

Invitation to Volunteer for PBA YLD-supported 'Wills for Heroes' Programs
The PBA Young Lawyers Division is a proud co-sponsor of the "Wills for Heroes" program in Pennsylvania. Through the support of volunteer lawyers and paralegals, the program provides free wills and other estate planning documents for police, firefighters and emergency medical personnel who risk their lives every day for the safety of their fellow citizens.
Consider becoming a "Wills for Heroes" volunteer. Click here for more information, including a list of upcoming summer and fall events across the state. Click here for additional details for lawyer volunteers.

I've noted the development of such programs in Pennsylvania over the years. See: "Wills for Heroes" Workshops Multiply in PA & DE (08/03/10); PBA's Young Lawyers Sponsor "Wills for Heroes" (05/06/09); and Firefighters, First Responders, and Free Wills (05/15/08). The Program appears healthy and expansive.

Pennsylvania's program is conducted in conjunction with the Wills for Heroes Foundation. It is operated on a county basis through local bar associations. Click here for a list of county coordinators. For more information, you may send an email message to the PBA's Young Lawyers Division, the Pennsylvania program Director Dan McKenna, or the Pennsylvania program Co-Chair/Director Lisa Shearman.

PBA members can sign up online here to join a thriving movement with worthy objectives.

Tax Relief Enacted

As announced in a host of media publications today, December 17, 2010, we have a new federal tax act, representing a political compromise and a temporary Congressional consensus -- but not a long-term solution -- on crucial pending income, estate/gift/generation-skipping, and social security tax issues (among other subjects).

For example, on "Estate of Confusion" (a Forbes Blog) in its posting today entitled "House Passes The Middle Class Tax Relief Act of 2010, H.R. 4853", Hani Sarjii highlighted the compromise, and concluded that "the reform of the estate tax is only temporary."

On December 16, 2010, the United States House of Representatives passed H.R. 4853, the Middle Class Tax Relief Act of 2010. The vote was 277 in favor and 148 against.  The bill will now go to President Obama’s desk to be signed into law.

H.R. 4853 is a compromise between President Obama and Republicans. It will extend the Bush Tax cuts and provide temporary estate tax reform: an estate tax rate of 35% and a $5 million exemption for individuals, for two years.

H.R. 4853 is going to change estate planning.  * * * Also, H.R. 4853 will not end estate tax uncertainty. * * *

C-SPAN reports that "The President is set to sign in to law the Middle Class Tax Relief Act of 2010 (H.R. 4853) later this afternoon [3:50 p.m]."  See also: Bloomberg News, House Passes Tax-Cut Extension, Sends Bill to Obama  (12/17/2010, with video).

My intention now is not to summarize the law, but to list a few resources online for a reader to explore and research initially.

Professor Paul L. Caron lists excellent links -- including a shorter summary (PDF, 3 pages) and a longer summary (PDF, 12 pages) -- regarding the new federal tax law in his posting President Obama Signs Tax Package Into Law (12/17/10) on the Tax Prof Blog.  [Update:  See also: More on the Obama-GOP Tax Bill (12/19/2010).]

For a running reference on the political developments leading to the new law, see: Thompson Reuters Tax Watch and its Archive covering the period November and December, 2010.  See also: Blog posting entitled Are We Having Fun Yet? (12/13/2010), by William (Bill) D. Pargaman, Esq., of Austin, TX, who prepared a tentative summary of the pending legislation as of December 9, 2010.

Descriptions about the underlying bill and its amendments are set forth by The Library of Congress (Thomas).  See also: Open Congress, which lists news articles and blog postings related to it, and which also sets forth the text of the House-approved bill.

The U.S. Senate's Committee on Finance posted links on a webpage entitled S.A.4753: The Reid-McConnell Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, as follows:

• Summary of The Reid-McConnell Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 [PDF, 485 KB, 12 pages] (12/10/10).

• JCT Estimated Budgetary Effects of the Reid-McConnell Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 [PDF, 28.8 KB, 9 pages] (12/10/10).

• Legislative Text of The Reid-McConnell Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 [PDF, 137.6 KB, 74 pages] (12/13/10).
  

BNA also provides a link to that last item above -- the final text of H.R. 4853, as amended numerous times -- being the "Senate Amendment to the House Amendment to the Senate Amendment."

Update: 2010-12-20:

In an article entitled CCH First to Offer Comprehensive Coverage of 2010 Tax Relief Legislation (12/20/2010), posted by the Centre County Times (State College, PA), a link leads to a Special Report -- CCH Tax Briefing, dated December 17, 2010, entitled President Signs Two-Year Extension Of Bush-Era Tax Cuts, Payroll Tax Relief, Estate Tax Compromise (PDF, 11 pages):

Congress has approved and the President quickly signed a mulibillion dollar tax cut package, the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act) (H.R. 4853). The new law follows through on the framework agreed to December 6 by President Obama and GOP leaders in Congress. The 2010 Tax Relief Act extends the Bush-era individual and capital gains/dividend tax cuts for all taxpayers for two years. The bill also provides for an AMT “patch,” a one-year payroll tax cut, 100 percent bonus depreciation through 2011 and 50 percent bonus depreciation for 2012, a top federal estate tax rate of 35 percent with a $5 million exclusion, and more. * * *

This is an excellent resource, which was posted publicly (and quickly!) for professionals and the public.  I commend CCH for doing so.  It should be a timely and trustworthy summary.

Blogger as "Best Lawyer" and "Super Lawyer"

Neil E. Hendershot Again Listed as a “Best Lawyer in America”® and as a “SuperLawyer”®

Neil E. Hendershot, Esq. was selected by his peers for inclusion in the 2011 edition of The Best Lawyers in America in the specialty of Trusts and Estates.  The letter sent to him by Steven Naifeh, Editor-in-Chief of Best Lawyers (styled as “The World’s Premier Guide”) stated: “Indeed, special congratulations are in order as you are one of a distinguished group of attorneys who have now been listed in Best Lawyers® for ten years or longer.” 

The letter notes the nature of the selection:  “Because selection to Best Lawyers is based on an exhaustive and rigorous peer-review survey (comprising more than 3.1 million confidential evaluations by your fellow top attorneys) and because no fee or purchase is required to be listed, inclusion in Best Lawyers is rightly considered a singular honor.”

For the year 2010, as for each year since 2004, Neil is also listed as a Philadelphia Magazine Super Lawyer® – one of three listed in the Harrisburg, Pennsylvania area under the designation of Estate Planning & Probate.  Interestingly, a few Harrisburg area attorneys formerly named in that area were not renewed on the list for 2010, which testifies as to the currency of the designation.  The 2011 nomination process for Super Lawyers®, a Thomson Reuters business, is underway.  Selections will be announced to next year’s designees in late December, 2010.

According to its website, “Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high degree of peer recognition and professional achievement.  The selection process is multi-phased and includes independent research, peer nominations and peer evaluations.”  Publication of state-specific listings is accomplished through various Super Lawyers magazines published in all fifty states, such as that published by Philadelphia Magazine.  Locally, the listing is acknowledged annually by publication of the Central Pennsylvania Business Journal.

Video: Getting Started in Estate Planning

Forbes' video network online posted, on September 15, 2010, a short segment entitled Estate Planning:  How to Get Started, starring Deborah L. Jacobs, the author of the recently-published book Estate Planning Smarts.

Her advice during the interview impresses the need for personal planning, and urges that this not "be done at home" due to the pitfalls and pain that can result.  Pain avoidance is a real motivator, since "[a]bove all, estate planning is a way to take care of yourself and the people you love."

Her book's website notes that, "[r]egardless of your net worth, a good estate plan should accomplish these essential goals:

• Caring for yourself by authorizing people to handle your affairs if you no longer can because of illness or disability

• Specifying who gets what after you pass away

• Providing for children who are minors or who have special needs.

In my blog posting on September 29, 2010, I noted an article written by Deborah L. Jacobs entitled Do-It-Yourself Wills, a No-No.  I agreed with Deborah that "DYI" should not be an option in personal and estate planning.

However, thorough preparation -- in learning about this area of the law, in listing your personal goals and obstacles, and in summarizing your situation (your holdings & income, versus your debts & commitments) -- is very important.

Pairing a prepared client with a qualified professional should result in a good outcome.

Do-It-Yourself Wills, a No-No

On September 7, 2010, Forbes  published and posted an excellent article about "Do-It-Yourself" estate planning written by an experienced business and legal writer.

Her message:  "Why am I strenuously opposed to do-it-yourself wills? There are just so many things that can go wrong -- from the wording of the document, to the required formalities for how it must be signed and witnessed before it can be valid."

In researching her article, The Case Against Do-It-Yourself Wills, Deborah L. Jacobs made inquiries through the listserv of the American College of Trust & Estate Counsel (ACTEC), collecting, from experienced specialized lawyers, their "horror" stories of self-help estate planning gone bad.  She recites some accounts in her lengthy article.

I agree with her advice.  Don't write testamentary documents -- those taking effect (and becoming irrevocable) to direct property after your death -- by yourself, without at least a review by an experienced elder law attorney.

For many years while teaching Estate Planning & Administration or Elder Law at Widener Law School, Harrisburg Campus, I directed second- and third-year law students to draft a last will, a health care directive, or a durable power of attorney as part of a graded project.  I allowed, even encouraged, use of consumer-oriented estate planning software, but mandated that all documents "work" according to the expectation of the hypothetical client.

Such highly-educated law students, who took a course and who sought a good grade, often made mistakes that an experienced practitioner would not.  Sometimes they used a wrong "form" to accomplish an end or create a relationship.  Other mistakes ranged from misspellings, omission of crucial data, internal inconsistencies in directions, disregard of non-probate designations that would control, citations to incorrect law, incomplete statements of intention or flawed dispositions (some in long-term trusts), and lack of backup plans or successor appointments.

Now, if trained law students make such mistakes, why would a consumer without training do better?

Just as those students might learn from using a self-help legal program to produce a draft of a document for discussion, a consumer could become educated.

Those easily-printed documents could be flawed, however; so the output should be reviewed by someone knowledgeable in applicable law and legal procedure.

Using a DIY will is like "pulling your own tooth with a pair of pliers instead of going to the dentist." -- Timothy E. Kalamaros, Esq., South Bend, Indiana

"Wills for Heroes" Workshops Multiply in PA & DE

The Pennsylvania Bar Association presses forward on its successfully-sponsored "Wills for Heroes" program, promoted by its Young Lawyers Division.

The program is described by the PBA-YLD as follows:

“Wills for Heroes” provides police, fire and emergency medical personnel -- those on the frontlines for our personal safety -- the tools they need to prepare adequately for the future.

Programs are staffed by lawyer volunteers and are conveniently offered to first responders at meeting halls and police and fire stations.

The PBA and the Wills for Heroes Foundation are hosting upcoming events to provide free wills and powers of attorney to first responders -- police officers, firefighters, paramedics and other men and women who risk their lives every day to make sure our communities are safe.* * *

The PBA's Wills for Heroes program is also described in a flyer for volunteers (PDF) posted online.

In two blog posts over the past two years, I tracked such personal and estate planning services offered free to certain first responders in Pennsylvania, beginning at a county bar association level and then advancing into statewide PBA sponsorship. See: Firefighters, First Responders, and Free Wills (05/15/08) and PBA's Young Lawyers Sponsor "Wills for Heroes" (05/09/09). That organized effort now has strengthened and matured in Pennsylvania, which was the 21st state to endorse and implement the national Wills for Heroes program.

In September, 2009, that effort was cited nationally as a model and symbol of volunteerism. See: Pennsylvania Governor Ed Rendell and U.S. Transportation Secretary Ray LaHood honor the Wills for Heroes Foundation.

Pennsylvania Governor Ed Rendell's Press Release, entitled Governor Rendell Commends Volunteers on National Day of Service and Remembrance (09/11/09), as posted by Examiner.com, stated, "There is no better example of the spirit of volunteerism than the Wills for Heroes project that we are seeing in action today, and it is especially appropriate as we observe the anniversary of the terrible events of 9/11."

Law school students, such as those I teach at Widener University School of Law (Harrisburg Campus), and those at WLS (Delaware Campus) joined the movement in public workshops held Saturday, April 17, 2010. The Harrisburg (Dauphin County) event is the subject of an online photo gallery posted by the PBA.

WLS-Delaware students held their second "Wills for Heroes" event on July 10, 2010, when "nearly 60 clients turn out to receive pro bono legal services." See: Delaware Campus Hosted Another Successful Wills for Heroes Event (07/27/10).

The event saw volunteer attorneys prepare wills, advance health care directives, and financial powers of attorneys free of cost for Delaware firefighters, paramedics, police officers, corrections officers, probation officers, and their spouses or partners. * * *

The law school places such an emphasis on public service that it just made sense to bring the two together. Everyone quickly became committed to the idea of Widener being the vessel that makes this opportunity available to Delaware’s emergency service workers.”

Widener Law’s Delaware campus hopes to coordinate a Wills for Heroes document-preparation event once a semester. Subsequent events will move around to the First State’s three counties. Widener Law, the official Delaware affiliate of the Wills for Heroes program, ran its first event on April 17th. * * *

The effort in Pennsylvania still appears rooted in practitioners and their staff. In its August 2, 2010 electronic bulletin to members, the Pennsylvania Bar Association requested assistance for further workshops scheduled around the state:

At least 10 to 20 lawyers, three or four notaries (who aren't required to be lawyers) and several witnesses (anyone over the age of 18) are needed for each event.

Lawyer volunteers do not need to practice trust and estate law. A mini-course will be given the morning of the event to familiarize volunteers with what they need to know. Also, several lawyers well-versed in estate planning will be available during the day to answer any questions that may arise. * * *

New volunteers are asked to complete the online registration form

. * * *

That bulletin noted upcoming Wills for Heroes events in Pennsylvania:

Bucks County (Contact coordinators Lisa A. Shearman and Jennifer Murphy)

• Aug. 7: Trevose Fire Company, Trevose
• Aug. 28: Trevose Fire Company, Trevose
• Sept. 11: Public Safety Training Center, Doylestown

Lackawanna County (Contact coordinator Jason Morrison)

• Oct. 2: Scranton Police Department, Scranton
  

Montgomery County (Contact coordinator Shearman)

• Sept. 25: Montgomery Township Fire Department, Montgomeryville
  

York County (Contact coordinator Mac Brillhart)

• Sept. 18: York Township Emergency Service Personnel, York

According to the PBA's bulletin, "For more information about the Wills for Heroes program, send an e-mail to Dan McKenna or Lisa A. Shearman and visit the Wills for Heroes Foundation website and the PBA Young Lawyers Division website."

PA 2010 POA Reform Report Issued by JSGC

On March 23, 2010, after an 18-month study, the Pennsylvania Joint State Government Commission issued its report, dated March, 2010:

POWERS OF ATTORNEY:
PROPOSED AMENDMENTS to the
PROBATE, ESTATES and FIDUCIARIES CODE

REPORT of the ADVISORY COMMITTEE on DECEDENTS’ ESTATES LAWS.

This report was issued today in response to the requirements of House Resolution 484, Printers No. 2753 (introduced 10/26/07), "[d]irecting the Joint State Government Commission to study the Uniform Power of Attorney Act and Pennsylvania's current power of attorney statute to determine whether any amendments should be made to Pennsylvania's current statute."

That Resolution tasked the Joint State Government Commission, acting through its Advisory Committee on Decedents' Estates Laws, as follows:

RESOLVED, That the House of Representatives direct the Joint State Government Commission to have its Advisory Committee on Decedents' Estates Laws study the Uniform Power of Attorney Act and Pennsylvania's current power of attorney statute to determine whether any amendments should be made to Pennsylvania's current statute; and be it further

RESOLVED, That the Joint State Government Commission report its recommendations to the House of Representatives within 18 months of the adoption of this resolution.

The 2010 POA Report, with attachments, is 214 pages long, and includes proposed legislation to amend Chapter 56 of the Pennsylvania Probate, Estates & Fiduciaries Code [unofficial version posted online], which statutorily authorizes and regulates powers of attorney in the Commonwealth.

The Report proffers legislation that, if adopted into law, would significantly change those actions authorized to be conducted by an agent under a power of attorney in Pennsylvania and also expand the ability of the Orphans' Court Divisions to apply remedies for unauthorized conduct by an agent acting under a power of attorney.

The introduction of H.R. 484 was discussed in detail on this Blog upon its introduction by Representative Jesse White. See: PA EE&F Law Blog posting House Reps Propose Further POA Study (11/05/07), which focused on an article by Dennis B. Roddy, entitled "Lawmaker: Tighten rules on power of attorney" published on November 2, 2007, in the Pittsburgh Post-Gazette.

Prior Post-Gazette articles highlighted a need for consideration, in Pennsylvania, of the latest model of a Uniform Power of Attorney Act (2006) (UPAA), approved by the National Conference of Commissioners on Uniform State Laws, on July 13, 2006. See: PA EE&F Law Blog postings: "Powers of Attorney" Investigated in Series (09/04/07); and Final "Courting Trouble" Article on POA Abuse (09/05/07).

The additional issues requested by HR 484 to be addressed were those mentioned in my prior posting entitled "Super Powers" Under Examination (06/05/07). In that posting, I had reflected on an article which appeared on June 4, 2007, in Forbes Magazine entitled "Taming the Superpower", by Ashlea Ebeling.

The "General Observations" section of the 2010 POA Report stated the overall findings of the JSGC-ACDEL in contrasting PEF Code Chapter 56 to the UPAA:

• The Advisory Committee recognized that although the UPAA is better organized and more thorough and specific than Pennsylvania's current power of attorney statute, many of its best principles are already incorporated into 20 Pa.C.S. Chapter 56. The Advisory Committee acknowledged a general sense of satisfaction among practitioners regarding Pennsylvania's current power of attorney statute. Accordingly, it did not favor the wholesale adoption of the uniform act, instead opting to recommend discrete amendments to 20 Pa.C.S. Chapter 56 to address specific concerns or problems encountered by practitioners and others.

• The primary concern evidenced by the court system and commentators regarding durable powers of attorney is the potential for abuse by agents seeking to enrich themselves or benefit those close to them, such as through the altering of the principal's estate plan. Nevertheless, durable powers of attorney are very helpful tools for handling the principal's financial matters as well as for planning purposes; their inexpensive and private nature contrasts with the guardianship alternative. Therefore, the Advisory Committee reasoned that any statutory amendment to 20 Pa.C.S. Chapter 56 should preserve what is best about powers of attorney in Pennsylvania: their privacy, expediency and efficiency.

• The Advisory Committee also reviewed several provisions of 20 Pa.C.S. Chapter 54 regarding health care powers of attorney since 20 Pa.C.S. § 5602(a)(8), (9) and (23) and § 5603(h) and (u.1) currently permit a principal to incorporate by reference in a power of attorney the power to (1) authorize the principal's admission to a facility and enter into agreements for the principal's care, (2) authorize medical and surgical procedures and (3) make an anatomical gift of all or part of the principal's body. The Advisory Committee observed that several amendments to 20 Pa.C.S. Chapters 54 and 56 were appropriate regarding health care decision-making. [Emphasis added]

The 2010 POA Report then summarized the proposed changes to the existing Chapter 56 regarding powers of attorney in Pennsylvania [Emphasis added]:

§ 5601. Subsection (b) is amended to provide that two witnesses are required when any power of attorney is executed, thereby changing current law, which provides that two witnesses are only required when the power of attorney is executed by mark or by another individual. The amendment makes the execution of a power of attorney under Chapter 56 consistent with the execution of a health care power of attorney under Chapter 54. However, an agent appointed under a Chapter 56 power of attorney may not be a witness. Notarization, where the specific circumstances permit, is good practice but is not required. Subsection (b) is also amended to specify that a power of attorney “shall be dated and signed by the principal,” thereby replacing “signed and dated by the principal.

Subsections (d) and (e) are amended to provide statutory language regarding the preservation of the estate plan of the principal, including the effect of intestacy if the principal does not have a will.

Subsection (e.3) is new and provides that an agent and a recipient of a gift or other financial benefit, during the principal's life or at the principal's death, arising from the action of the agent is liable as equity and justice may require to the extent that the court determines that the action of the agent was inconsistent with (1) prudent estate planning or financial management for the principal or (2) the known or probable intent of the principal with respect to the disposition of the principal's property. An agent who in good faith exercises reasonable caution and prudence shall not be personally liable.

§ 5601.2. The title of § 5601.2 and subsection (a) are amended to specify that, similar to the gift provisions, a principal may empower an agent to make changes to the principal's estate plan only in specific circumstances. A power to make a gift or make changes to the principal's estate plan may not be inferred from a grant of another power or from a general grant of authority to do anything that the principal could do, except to the extent that a principal expressly grants the agent the power to provide for personal and family maintenance.

Subsection (b) is amended to clarify that limited gifts authorized in compliance with this subsection do not require court approval.

Subsection (c) is amended to change the title from “unlimited gifts” to “other gifts specifically authorized and not requiring court approval” and to clarify that other gifts specifically authorized in compliance with this subsection do not require court approval. The amendments permit a principal to authorize an agent to make a gift, which is not a limited gift under subsection (b), only by specifically identifying the donee and the gifted property or cash amounts. In addition, subsection (c)(1) specifies that the phrase “any donee” or other language showing a similar intent is not permitted.

Subsection (c.1) is new and provides that an agent may act without court approval if the agent's action is otherwise authorized by the power of attorney (e.g., to make a beneficiary designation or create a joint account) and maintains and is consistent with the preservation of the principal's estate plan, including the effect of intestacy if the principal has no will. An action may not be taken if the interest of any beneficiary under the principal's existing estate plan, including an intestacy if the principal has no will, is prejudiced thereby.

Subsection (c.2) is new and provides that an agent may make gifts or change the principal's estate plan (such as by creating or changing rights of survivorship or a beneficiary designation; by creating an inter vivos trust or amending, revoking or terminating an existing trust; or by waiving the principal's right to be a beneficiary of a joint and survivor annuity) only if the power of attorney expressly grants the agent the authority and the court approves the agent's action, in the manner set forth in new subsection (g), after finding that the action is consistent with (1) prudent estate planning or financial management and (2) the known or probable intent of the principal with respect to the disposition of the principal's property. If an agent complies with the grant of authority for gifts, the agent does not need to follow the procedures under Chapter 55 (incapacitated persons) so as to implement estate planning changes. Conversely, if the agent does not so comply, a guardianship proceeding would need to occur.

Subsection (d)(1), in defining the nature of a limited gift, is amended to add that the agent may make a gift to each donee to a tuition savings account or prepaid tuition plan.

Subsection (e), concerning equity and justice with respect to gifts, is repealed and replaced by § 5601(e.3) to make the concept of equity and justice applicable to all actions of an agent under Chapter 56.

Subsection (g) is new and provides for procedures concerning court proceedings for subsection (c.2).

§ 5602. Subsection (a) is amended to repeal paragraph (8) (“To authorize my admission to a medical, nursing, residential or similar facility and to enter into agreements for my care”), paragraph (9) (“To authorize medical and surgical procedures”) and paragraph (23) (“To make an anatomical gift of all or part of my body”). The substance of these paragraphs is being moved to Chapter 54.

Subsection (a) is amended to broaden paragraph (17) to include annuity transactions.

Subsection (a) is amended to add new paragraphs (24) (“To operate a business or entity”) and (25) (“To provide for personal and family maintenance”).

Subsection (c) is amended to change the reference from “executed copy of the power of attorney” to “originally executed power of attorney.”

Subsection (d) is new and specifies that, except for the purpose of filing at the courthouse, a photocopy or electronically transmitted copy of an originally executed power of attorney has the same effect as the original.

§ 5603. Subsection (a)(2)(ii), regarding gift splitting, is amended to (1) clarify that an agent can make a gift of the principal's assets up to twice the amount of the annual exclusion if the principal's spouse indicates a willingness to “split” gifts and (2) add a provision that limited gifts to a “family unit” (which is a child and a child's descendants) can be equalized even if this means exceeding the available annual exclusions and thus using a portion of the principal's cumulative lifetime gift exemption or paying gift tax if there is an insufficient amount of such exemption remaining.

Subsections (d) (power to claim an elective share) and (e) (power to disclaim any interest in property) are amended to eliminate as unnecessary the references to adjudication, since 20 Pa.C.S. § 102 defines an incapacitated person as “a person determined to be an incapacitated person under the provisions of Chapter 55 (relating to incapacitated person).” The determination under Chapter 55 necessarily involves an adjudication.

Subsection (h) (power to authorize admission to medical facility and power to authorize medical procedures) is repealed, in light of Chapter 54.

Subsection (k)(4) (power to engage in stock, bond and other securities transactions) is amended to specify that the agent may also join in any consolidation, dissolution or liquidation, thereby making the provision more parallel to 20 Pa.C.S. § 7780.6(a)(13), concerning the illustrative powers of a trustee under the Pennsylvania Uniform Trust Act.

Subsection (p) (power to engage in insurance transactions) is amended to include annuity transactions. Paragraph (3) is amended to give an agent the authority to change a beneficiary designation but only as permitted under § 5601.2(c.1) and (c.2), which concerns actions that change an estate plan and that may or may not require court approval.

Subsection (q) (power to engage in retirement plan transactions) is amended to give an agent the authority to change a beneficiary designation but only as permitted under § 5601.2(c.1) and (c.2), which concerns actions that change an estate plan and that may or may not require court approval.

Subsection (u.1) (power to make anatomical gift) is repealed, in light of Chapter 54.

Subsection (u.2) is new and defines the power to operate a business or entity.

Subsection (u.3) is new and defines the power to provide for personal and family maintenance.

§ 5604. Subsection (c)(1) is amended to delete the word “adjudicated” (with respect to an incapacitated principal) in the first sentence and to delete the second sentence, which provides that the guardian has the same power to revoke or amend the power of attorney that the principal would have if the principal were not incapacitated.

Subsection (c)(3) is new and requires the court to determine whether, and the extent to which, the incapacitated person's durable power of attorney remains in effect and include that determination in its guardianship order.

Subsection (d.1) is new and specifies that except as otherwise provided in the power of attorney, an agent is not required to disclose receipts, disbursements or transactions conducted on behalf of the principal unless ordered by a court or requested by the principal, the principal's guardian, another fiduciary acting for the principal, a governmental agency having authority to protect the welfare of the principal, or (upon the death of the principal) the personal representative or successor in interest of the principal's estate.

§ 5610. A third sentence is added clarifying that the court may assess the costs of the accounting proceeding as it deems appropriate, including the costs of preparing and filing the account.

§ 5612. This new section authorizes the court to order an investigation, appoint a guardian ad litem, make a referral to an appropriate agency or take any other appropriate action regarding allegations of financial abuse or mismanagement against a principal by his or her agent under a power of attorney. Any such order is made upon petition by an appropriate party and a reasonable showing of the financial abuse or mismanagement. However, the court may consider information not only from the formal petition but from other sources (such as from a report by a social service agency or from other communications).

§ 5613. This new section provides that venue of any matter pertaining to the exercise of a power by an agent acting under a power of attorney is in the county where the principal is domiciled, a resident or residing in a long-term care facility. A court may decline to exercise jurisdiction if it determines that a court of another county or state is a more appropriate forum, in which case the court shall either dismiss the proceeding or stay the proceeding upon the condition that a proceeding be promptly commenced in another county or state. The court may impose other conditions as well. This new section provides the court with maximum flexibility regarding the relevant and important factors to be used in determining whether to exercise jurisdiction.

§ 5614. This new section supplements Chapter 56 with the common law and principles of equity.

The 2010 POA Report also contains the following proposed amendments to 20 Pa.C.S. Chapter 54 (health care):

§ 5422. The definition of “health care decision” is amended to include decisions regarding (1) an individual's admission to a facility or entering into agreements for the individual's care and (2) after the individual's death, making anatomical gifts, disposing of the remains or consenting to autopsies.

§ 5456. Subsection (a) is amended to specify that the health care agent's power includes the power to authorize admission to a facility or enter into agreements for the principal's care.

§ 5460. Subsection (a) is amended to repeal the last sentence, which provides that the guardian has the same power to revoke or amend the appointment of a health care agent that the principal would have if the principal were not incapacitated, but the guardian may not revoke or amend other instructions in an advance health directive absent judicial authorization. Subsection (a) is also amended to add statutory language providing that in its guardianship order and determination of a person's incapacity, the court shall determine the extent to which the health care agent's authority to act remains in effect.

I was privileged to be a member of the drafting committee (the "Subcommittee on Guardianships and Powers of Attorney"), chaired by John J. Lombard, Jr., Esq., Chair, which included: William R. Cooper, Esq.; Jay C. Glickman, Esq.; Neil E. Hendershot, Esq.; The Honorable Anne E. Lazarus; James F. Mannion, Esq.; John F. Meck, Esq.; Michael J. Mullaugh, Esq.; The Honorable Paula Francisco Ott; William Campbell Ries, Esq. and Robert B. Wolf, Esq. In addition, The Honorable Calvin S. Drayer, Jr. and The Honorable Stanley R. Ott were invited to participate in the subcommittee's review and discussion process.

Update: 03/26/10:

On Friday, March 26, 2010, the Pittsburgh Post-Gazette published an article by Dennis B. Roddy entitled Reforms aimed at power-of-attorney abuses: State commission proposes changes to curb cheating, which noted issuance of the 2010 POA Report and a legislator's intention to introduce legislation based upon its recommendations:

A Pennsylvania government study commission has proposed legal reforms to curtail power-of-attorney abuses that have cheated the elderly, the disabled and their heirs.

The 222-page report includes draft legislation and is the result of an 18-month study ordered by the state House after a 2007 series of articles in the Post-Gazette. The articles revealed gaps in the law that had allowed attorneys and family members to divert savings and pension benefits to their advantage.

"The majority of powers of attorney work very well, but when they don't work they cause tremendous problems," said Superior Court Judge Anne Lazarus, a member of the advisory committee on estate law that proposed the reforms to the Joint State Government Commission.

The study was ordered after the House passed a resolution by State Rep. Jesse White, D-Washington County, who said he was incensed by reports of POA abuses detailed in the newspaper during 2007.

"I will almost certainly be introducing some sort of legislation for comprehensive power of attorney reform," Mr. White said. Initially, Mr. White and several others had suggested the commission explore adopting a nationwide standard called the Uniform Power of Attorney Act.

The committee did a side-by-side comparison of Pennsylvania law with the proposed uniform act.

"We found that our structure was sound and that we addressed most issues already," said Neil Hendershot, a Harrisburg estate lawyer and expert on POA.

Instead, the committee opted for alterations of the current Pennsylvania law. * * *