What do you mean I can't find out about my husband's accident injuries? Why can't we move my mother to the nice nursing-home down the street? The Health Insurance Portability and Accountability Act or HIPAA caused two of my clients to live through these very situations.
A husband and wife were involved in a terrible automobile accident. The husband was seriously injured. His wife wanted to make certain that the needed medical attention was given to her husband. The wife could not get any medical information from her doctor. Even though she was the wife, the new HIPAA law and regulations prevents her from receiving medical information without specific written authorization!
In another case, an elderly widow lady became incapacitated. Her two children wanted to place her in a nursing home so that she would receive adequate care. Even though they had a living will and health-care power of attorney for their mother, they were required to go to court and be appointed her guardians so that they could place their mother in the health care facility.
What is the HIPAA Law all about?
The HIPAA Law in a Nutshell
HIPAA took effect on April 14, 2003.
This legislation applies to virtually every physician, nurse, pharmacist, dentist, and health care provider in the nation. It impacts everyone's access to health care information.
What does this privacy act mean? The regulations stress that health care providers must limit health information to those who are intended to receive it. This means health care information cannot be released to any unauthorized person. This may mean you may not be able to receive medical records for your spouse or parent.
HIPAA Violation Penalties
The penalties for health care providers are staggering. For each disclosure violation, there is a $100 fine. If the violation is knowing, there are criminal penalties of a $50,000 fine and up to one year in prison. If information is provided or obtained under false pretenses, there is $100,000 fine and up to five years in prison. If the wrongful sale, transfer or use of the information was for commercial advantage, there is a $250,000 fine and up to 10 years in prison.
How does this affect you? To ensure an easy transition, you must have the appropriate medical release language to comply with HIPAA in three of your estate planning documents.
Documents to Update
The documents which need to be updated are:
Your Living Will and Health Care Power of Attorney
Your Living Trust
Your Durable Power of Attorney
What if I do nothing?
You may be forced to sign the doctor's or hospitals forms in a stressful emergency situation. These documents may not reflect your choices and may contain confusing legal and/or medical terminology. Or you may be unable to sign anything and may repeat one of the above scenarios.
If your documents were created before 2003 and have not been amended since, have your attorney review them for HIPAA compliant language. Are you missing some or all of these documents? Make an appointment today!
Visit http://www.stevenallen.com for tips and tools on Wealth Preservation. You can also subscribe to his monthly newsletter Secrets To Wealth Preservation. Steven W. Allen has been an Estate Planning attorney for over 30 years. He is a member of the Arizona Bar Association, National Lawyers Association, National Academy of Elder Law Attorneys and National Speakers Association. He is the author of four books including the most recent You Can’t Take It With You...So How Will You Leave It Behind?. Go to http://www.EstatePlanningDr.com for your 3 free chapters.
Article Source: http://EzineArticles.com/?expert=Steven_W._Allen
Thursday, July 12, 2007
Types of Estate Planning Documents
You may have heard some of the terms, Last Will and Testament, Living Will, Power of Attorney, but are not exactly sure what they are or whether you need them. From an Estate Planning perspective, these documents are essential to ensure that your assets are distributed properly and your legal interests are protected.
A Last Will and Testament is a document that sets forth the distribution of your assets at the time of your passing. A common misnomer that people have about Wills is that you have to divulge all of your bank accounts and financial information to the Attorney who is drafting the Will. This is simply not true. Usually, the Testator (the person with the Will) just sets forth the names of the heirs and how much of his/her estate each heir will receive, i.e. 50% to my son, Joe, and 50% to my daughter, Jill. Typically, only special assets are specifically named in the Will, i.e. my 5 carat diamond ring to my friend, Lucy, or my home in Palm Springs to my friend, Jack.
After that, a simple Will requires only a few other things. You must name an Executor of your Will. The Executor is the person who will handle the Estate affairs after your passing. He/She will open an Estate, determine all of the your assets and liabilities, and make distribution of those assets as per the guidelines set forth in your Will. You will also have to name a Trustee if you plan on leaving any assets to a minor. There are a few other minor legal requirements that your local attorney can assist you with in drafting your Last Will and Testament.
A Living Will is a document that sets forth your wishes as to certain types of medical treatment in the event that you suffer a permanent disability that renders you incapacitated with no hope of recovery. The instance that we are talking about here is the person in a coma or permanent vegetative state. In order for a Living Will to take effect in Pennsylvania, two physicians must certify that you have no real hope of recovery. At that point, your Surrogate (this person is named in the Living Will) will meet with your physician and advise him as to your wishes regarding treatment.
A Power of Attorney is another important document. I usually recommend the General Durable Power of Attorney. This document gives your Agent the ability to act on your behalf in almost any type of situation that you could think of. The Agent has the ability to sign checks, transfer real estate, make medical decisions and much more. As you can see, this document is VERY powerful, and as such, the authority bestowed with it should only be granted to an individual that you trust beyond reproach. This document becomes important in the instance where you can no longer act for yourself, or have difficulty doing so. However, you should be advised that this document takes effect immediately upon signing. Most of my clients are under the impression that this document only takes effect if they become incapacitated. That simply is not true. Again, at least in Pennsylvania, this document gives your Agent the ability to act on your behalf immediately.
Greg Artim is an Attorney based in Pittsburgh Pennsylvania. For more information on related legal issues, please visit his website at http://www.gregartim.com, or visit his Pennsylvania Lemon Law website at http://www.ihatethislemon.com
Article Source: http://EzineArticles.com/?expert=Greg_Artim
A Last Will and Testament is a document that sets forth the distribution of your assets at the time of your passing. A common misnomer that people have about Wills is that you have to divulge all of your bank accounts and financial information to the Attorney who is drafting the Will. This is simply not true. Usually, the Testator (the person with the Will) just sets forth the names of the heirs and how much of his/her estate each heir will receive, i.e. 50% to my son, Joe, and 50% to my daughter, Jill. Typically, only special assets are specifically named in the Will, i.e. my 5 carat diamond ring to my friend, Lucy, or my home in Palm Springs to my friend, Jack.
After that, a simple Will requires only a few other things. You must name an Executor of your Will. The Executor is the person who will handle the Estate affairs after your passing. He/She will open an Estate, determine all of the your assets and liabilities, and make distribution of those assets as per the guidelines set forth in your Will. You will also have to name a Trustee if you plan on leaving any assets to a minor. There are a few other minor legal requirements that your local attorney can assist you with in drafting your Last Will and Testament.
A Living Will is a document that sets forth your wishes as to certain types of medical treatment in the event that you suffer a permanent disability that renders you incapacitated with no hope of recovery. The instance that we are talking about here is the person in a coma or permanent vegetative state. In order for a Living Will to take effect in Pennsylvania, two physicians must certify that you have no real hope of recovery. At that point, your Surrogate (this person is named in the Living Will) will meet with your physician and advise him as to your wishes regarding treatment.
A Power of Attorney is another important document. I usually recommend the General Durable Power of Attorney. This document gives your Agent the ability to act on your behalf in almost any type of situation that you could think of. The Agent has the ability to sign checks, transfer real estate, make medical decisions and much more. As you can see, this document is VERY powerful, and as such, the authority bestowed with it should only be granted to an individual that you trust beyond reproach. This document becomes important in the instance where you can no longer act for yourself, or have difficulty doing so. However, you should be advised that this document takes effect immediately upon signing. Most of my clients are under the impression that this document only takes effect if they become incapacitated. That simply is not true. Again, at least in Pennsylvania, this document gives your Agent the ability to act on your behalf immediately.
Greg Artim is an Attorney based in Pittsburgh Pennsylvania. For more information on related legal issues, please visit his website at http://www.gregartim.com, or visit his Pennsylvania Lemon Law website at http://www.ihatethislemon.com
Article Source: http://EzineArticles.com/?expert=Greg_Artim
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