Thursday, January 7, 2016

Estate Planning for Cancer Patients NJ

Estate Planning for Cancer Patients


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Contact the Law Office of KENNETH A VERCAMMEN for Legal Representation Compiled by Kenneth Vercammen, Past Vice-Chair, ABA Elder Law Committee, GP SectionIf someone is suffering from cancer, it is recommended that a Power of Attorney be prepared by an attorney to permit a family member to help the Cancer patient by paying bills and handling finances. Generally, many attorneys will require: 1. a note from the Doctor indicating the person is competent to sign a Power of Attorney [and will if the will has not yet been prepared] 2. the client [Cancer victim, not a family member] to specifically advise the attorney they want to appoint the specific person to handle their financial affairs. [The attorney cannot rely on a family member saying what the client/ patient wants.]
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Prior to an individual being unable to manage his or her life as a result of a mental or physical disability, legal planning should be done. If a legally prepared Power of Attorney was signed, a trusted family member, friend, or professional can legally act on that person's affairs. If a Power of Attorney was not signed, we will only prepare a Power of Attorney for a "competent person".
A new service from our office is the availability of Home and Hospital visits. Timely advice and planning is important. Often people cannot travel to our office to sign Wills, Powers of Attorney, Living Wills and other legal documents. We can help by traveling to homes, hospitals, senior centers, retirement villages and nursing homes. For people under doctors care, we require a note from the doctor be obtained indicating the person is competent to sign these documents. That way the person's wishes are less likely to be contested in the future. The minimum fee for a hospital or home visit is $500 in Middlesex County.
If the Cancer patient is not competent, an attorney may be retained to file a formal complaint and other legal pleadings in the Superior Court to permit the trusted family member, friend, or professional to be able to handle financial affairs. This is called a Guardianship.
What is a Power of Attorney?
A Power of Attorney is a written document in which a competent adult individual (the "principal") appoints another competent adult individual (the "attorney-in-fact") to act on the principal's behalf. In general, an attorney-in-fact may perform any legal function or task which the principal has a legal right to do for him/herself. Therefore, the doctor often must determine if the Cancer patient is competent to sign a Power of Attorney. The term "durable" in reference to a Power of Attorney means that the power remains in force for the lifetime of the principal, even if he/she becomes mentally incapacitated. A principal may cancel a Power of Attorney at any time for any reason. Powers granted on a Power of Attorney document can be very broad or very narrow in accordance with the needs of the principal.
Why is Power of Attorney so important? Every adult has day-to-day affairs to manage, such as paying the bills. Many people are under the impression that, in the event of catastrophic illness or injury, a spouse or child can automatically act for them. Unfortunately, this is often wrong, even when joint ownership situations exist.
The lack of a properly prepared and executed Power of Attorney can cause extreme difficulties when an individual is stricken with severe illness or injuries rendering him/her unable to make decisions or manage financial and medical affairs. New Jersey has legal procedures, guardianships, or conservatorships, to provide for appointment of a Guardian. These require formal proceedings and are expensive, requiring lawyers to prepare and file the necessary papers and doctors to provide medical certifications or testimony regarding the mental incapacity of the subject of the action. The procedures also require the involvement of a temporary guardian to investigate, even intercede, in surrogate proceedings. This can be slow, costly, and very frustrating. With advanced preparation of the Power of Attorney, the inconvenience and expense of legal Guardianship proceedings can be avoided. This needs to be done while the principal is competent, alert, and aware of the consequences of his/her decision. Once a serious problem occurs, it is too late.
Powers of Attorney are generally given by one person to another so that if the grantor of the power becomes ill or incapacitated, the Power of Attorney will permit the holder of it to pay the grantor's bills and to handle the grantor's affairs during the inability of the grantor to do the same.
Without a legal Power of Attorney or court ordered guardianship, even a spouse does not have the legal authority to sign their spouse's signature. If a valid Power of Attorney is not legally prepared, signed and acknowledged in front of an attorney or notary, it is invalid. Without a Power of Attorney, a Guardianship Order and Judgment must be obtained from the Superior Court to permit complete legal decision making.
According to Disability Law, A Legal Primer published by the New Jersey State Bar Association, "A guardian is a person appointed by a court to make financial and personal decisions for a person proven to be a legally incompetent/ incapacitated person." p11
1. When is a guardian needed? A guardian is needed when an individual cannot manage his or her life as a result of a mental or physical disability or an alcohol or drug addiction. The person for whom a guardian is appointed is called a "ward". Disability Law at p11
Legislation (P.L. 1997, c 379) changed the designation of "mental incompetent" to "incapacitated person" in all laws, rules, regulations and documents. New Jersey Lawyer March 23, 1998
2. What rights does an incompetent/ incapacitated person lose? Unless a Court orders otherwise, a ward/ incompetent/ incapacitated person does not have the right to decide where to live, spend money, use property, appear in Court or undergo medical treatment without the approval of his or her guardian. An unmarried incompetent/ incapacitated person also loses the right to marry.
3. How does somebody become the guardian of another?
Guardians are appointed by Courts after the person in need of guardianship is proven incompetent. Guardianship actions can be brought under the general incompetency statute (N.J.S.A. 3B:12-25 et seq.) or under the statute dealing with people who receive services from the State Division of Developmental Disabilities. N.J.S.A.. 30:4-165.4 et seq. Guardians who are married to the incompetent/ incapacitated person or are parents of an unmarried incompetent/ incapacitated person can choose who will become the guardian after the guardians die and include a clause designating their successor in their Wills. Disability Laws p12. Under the general incompetency statute, a Complaint requesting Guardianship must be filed in the Superior Court, plus a detailed Affidavit by the person requesting to be Guardian detailing the assets of the incompetent/ incapacitated person plus reasons why the incompetent/ incapacitated person is no longer able to manage their affairs. Affidavits of two doctors are also needed. The Court will appoint a temporary attorney to interview the incompetent/ incapacitated person and prepare a report to the Court. The court costs and legal fees often exceeds $4,000.
4. Who can be a guardian?
Generally, a close relative or a person with a close relationship to the proposed incompetent/ incapacitated person who will act to protect the incompetent/ incapacitated person's best interests can be guardian. When a close friend or relative is not available, the Court may appoint the Public Guardian (for persons over 60) or an Attorney to serve as guardian.
5. What are the rights of the proposed incompetent/ incapacitated person prior to hearing?
The proposed incompetent/ incapacitated person is entitled to receive advance notice of the guardianship hearing, to be represented by a lawyer and to present a defense at the hearing.
6. Is court approval required to sell real estate if someone is declared incompetent/ incapacitated?
Yes. Your attorney can discuss transferring certain assets to qualify for Medicaid.

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