Search Results

You might think that since your business is small, it won’t be an attractive target for scammers. Sadly, the opposite is true. Small businesses are actually  targeted more frequently than larger companies, often because they lack the resources (both money and people) that bigger operations can invest in fraud prevention and detection measures. Here are 5 common scams you need to be aware of, along with some actionable tips to keep your business safe.   1. The Phony Invoice Scam (AKA "We Sent You the Stuff, Now Pay!")   This is a classic, but it still fools plenty of business owners. You receive an invoice for goods or services you never ordered. It might be for office supplies, website services, or even directory listings. The invoice often looks official and might even threaten late fees.  Invoice fraud is a growing concern for small business owners. According to a 2024  study  by the Association of Certified Fraud Examiners (ACFE), businesses lose about 5% of their revenue to fraud each year. There are a variety of these invoice scams:   Fake Invoice Scam: Scammers send fake invoices that look real. If a company is swamped with invoices, the person handling payments might not check each one thoroughly. If there's poor communication between the work done and the invoicing process, there might be no way to verify if the invoicer actually performed the work. The business pays the invoice without realizing it's fake. Supplier Impersonation Scam: Scammers pretend to be a known supplier and send an invoice for payment. They might even hack into the supplier's email account to make the request seem genuine. Business Email Compromise (BEC): Hackers gain access to a business email account and use it to send fake payment instructions. They may instruct clients to redirect their payments to a different bank account belonging to the scammer. Overpayment Scam: A scammer sends a check for more than the amount owed and then asks for the difference to be refunded. The original check later bounces, leaving the business out of pocket. Sometimes, the scammer sends an invoice for a real service but tweaks it so the client ends up paying more. This might involve charging for services not provided or slightly inflating the costs. The Duplicate Invoice Scam:  The scammer has done some work for the client but tries to get paid twice for the same job. For example, they might "accidentally" send the same invoice twice, hoping the client will pay both times.   Defense Strategy:   Implement a strict invoice approval process:  Train your team to only pay invoices with a corresponding purchase order and verification from the person who ordered the goods/services. Double-check everything:  Before paying any invoice, confirm that you actually received the goods or services and that they were ordered. Don't be pressured:  If something feels off, investigate. Don't rush to pay just because of a threat.   2.  Phishing Scams   A phishing scam is an electronic message sent to you via email, text, or messaging app that’s “fishing” for information. It will ask you to do something, like login to an account or call someone who will then ask you for sensitive information. Once you’ve taken the bait, the bad actor on the other end will use that to defraud you. They can use your legitimate login credentials to access your real account or take the personal info you provided by phone to steal your identity, for example. Defense Strategy:  Learn how to identify phishing scams: the email has a generic greeting, the email says your account is on hold because of a billing problem, the email invites you to click on a link to update your payment details. View the sender's real email address: double-click or tap the sender's name to view the real email address. (In Gmail, hover over the sender's name, which means to move your mouse over the text but don't click.) Make sure it matches the expected email address and has a legitimate domain after the @ symbol in the email address. Flag external emails:   By recognizing quickly which emails are from non-internal senders, you can better spot potential phishing attempts. Take advantage of anti-phishing protection offered by your email service provider. Verify the request by reaching out through known channels.   3.  The Fake Directory Listing Scam (AKA "Get Listed...For a Price!")   You receive a phone call or email from someone claiming to be with Google, Yelp, or some other directory service. They insist you need to update or "verify" your listing, and they offer to do it for you… for a fee.  These services are often free or have very low-cost options. The scammer convinces you that you need their "premium" service to avoid being delisted or appearing lower in search results.   Defense Strategy:   Verify the source:  Before providing any information or paying anything, contact the directory service directly through their official website or phone number. Don't rely on the information provided by the caller or emailer. Know your listings:  Familiarize yourself with the official policies of the directory services you use. Resist the hard sell:  Legitimate directory services don't typically use high-pressure sales tactics. Do your own updates:  Most directory services allow you to update your listing yourself for free.   4. The Tech Support Scam (AKA "Your Computer Has a Virus…Pay Us to Fix It!")   You receive an unsolicited call from someone claiming to be with Microsoft, Apple, or another tech company. They say your computer is infected with a virus and offer to "fix" it remotely… for a fee.  They often use fear tactics and technical jargon to confuse you. Once they gain access to your computer, they can install malware, steal sensitive information, or demand exorbitant fees. Defense Strategy: Never give unsolicited access:  Legitimate tech companies will never call you out of the blue and ask for remote access to your computer. Hang up!:  Immediately end the call. Contact your IT support:  If you're concerned about a virus, contact your regular IT support provider or a reputable computer repair service. Run a virus scan:  Use a reputable antivirus program to scan your computer for malware.   5. Domain Registry and Renewal   Unless you register your business’ website and email domain name (e.g., yourbusinessname.com ) privately, scammers can get your domain and contact details easily. One of the most common scams that results from this is getting emails from senders who claim that your domain, website, or email account is up for renewal, and that if you don’t pay up immediately, you’ll lose it. Defense Strategy: Opt for private domain registration (even if it costs a few dollars more), or choose a domain registrar that includes private domain registration for free. Keep good records of where you purchased your domain, web hosting, and email services, including service providers and terms of service (e.g., expiration dates). Set up automatic renewals and payments with your domain, website, and email hosting services.   Protecting Your Business is an Ongoing Process Staying vigilant and educating your employees are crucial to protecting your small business from scams . In addition to the actions you can take to protect your small business from scams like these, take time to build processes and procedures for training your employees. The better you and your staff are at spotting fakes and scams, the better you will be able to safeguard your company against loss.

For small business owners, the hiring process already comes with its fair share of headaches. But now there’s a new – and much more serious – threat to be aware of: fake job applicants using AI-powered deception to infiltrate your business.   As CNBC recently reported , individuals – sometimes linked to foreign governments – are using deepfake videos and AI-generated resumes to pose as ideal candidates, particularly for remote roles. Once hired, their true goal may be to access customer data, steal trade secrets, or compromise internal systems. It sounds like a scene from a spy movie, but it’s happening across the country. The research firm Gartner predicts  that by 2028 up to 1 in 4 job candidates could be AI-generated fakes. Why Small Businesses Are Being Targeted Larger corporations often have layers of security and vetting systems in place. On the other hand, smaller businesses, particularly startups and lean operations, often lack the in-house recruiting teams or advanced screening tools that larger companies rely on. Without those resources, fake applicants can more easily slip through the cracks, especially during remote hiring where deepfakes and digitally manipulated materials are harder to catch. Once inside, these impostors can quickly become an insider data security threat , putting customer information and proprietary systems at serious risk.   These fake applicants may present well-crafted resumes and polished video interviews. But in many cases, they’re not who they claim to be. Some are using AI tools to mimic human voices and facial movements, or deepfake technology to pass off pre-recorded answers as live conversations.   Real-World Impact In recent cases, fake hires have gained access to sensitive databases, financial systems, and even client files. Some companies do not discover the deception until weeks or months later after damage has already been done.   These risks are especially high for businesses that: Collect customer data (e.g., in e-commerce, healthcare, legal, or financial services) Develop proprietary software or IP Allow remote access to internal systems Use contractors or freelance workers based on virtual interviews   How to Protect Your Business Here are a few steps you can take now to help prevent hiring a fake candidate:   1. Verify identity independently. Don’t rely solely on resumes, virtual communication, or even video interviews. Request official identification and use third-party identity verification platforms when onboarding.   2. Watch for red flags. Be cautious of candidates who insist on avoiding live interviews, have overly polished materials, or show inconsistencies between their voice, video, and resume timeline.   3. Conduct thorough background checks.  Use reputable services that go beyond basic employment verification. Consider checking IP addresses, LinkedIn profiles, and professional licenses.   4. Limit access during onboarding.  Don’t give new hires full access to internal systems on day one. Use role-based access controls and gradually increase permissions after trust is established.   5. Update your employment agreements.  Make sure your hiring contracts and NDAs include provisions addressing data protection, misrepresentation, and termination for cause.   If you're growing your team or shifting to more remote hiring, it’s time to tighten your onboarding process and review your legal safeguards. Our firm regularly helps businesses create secure hiring workflows, draft protective employment agreements, and respond to cybersecurity breaches and internal fraud.   The risks are evolving, but so are the tools to fight them. If you're unsure whether your business is protected, we’re here to help .   Need a hiring policy review or help tightening your onboarding contracts? Reach out to our team of experienced business attorneys to schedule a consultation .

The news coming out of the US Department of Education about defaulted student loans heading to collection as of May 5th, 2025 is definitely concerning.  Some estimates place the number of borrowers in default at 10 million!  If you’re one of the millions who have not made a student loan payment in years and are not currently in a repayment plan, it’s time to prepare, not panic. We're here to break down what this means and, more importantly, what you can do right now to prepare and potentially mitigate the damage.   What's Happening? A Quick Recap Essentially, the Department of Education is ending the pause on collections for federal student loans. This means that if you have not made a payment on your federal student loan or are not in an approved deferment program,  Beginning on May 5th, the Office of Federal Student Aid (FSA)  will send all borrowers in default an email communication making them aware of these developments and urging them to contact the  Default Resolution Group  to make a monthly payment, enroll in an income-driven repayment plan, or sign up for loan rehabilitation.  Be on the lookout for that email – do not ignore it.  Check your spam or junk mail folders to make sure you do not miss it.    That being said, this situation is sure to attract scammers. Be careful not to share personal information and protect yourself from scams . Be on the lookout for information from FSA about repayment or requests for updated details to recertify your payment plan, such as proof of income or your family size, which must be updated annually to stay enrolled in an IDR plan.   What’s at Stake? The government (or its contracted collection agencies) will soon start the process of actively pursuing repayment for non-responsive borrowers. This can include collection lawsuits, wage garnishment, tax refund offsets, and Social Security benefit reduction.  Defaulting on your student loans can wreck your credit rating and cause problems for your ability to qualify for loans in the future or the best interest rates.  Both student borrowers AND parents who co-signed or otherwise guaranteed these loans need to pay attention.   Are Your Student Loans Federal or Private Loans? The first step is to determine whether you have federal student loans, private loans or both.  You have more options available to deal with federal student loans than private loans.  You can usually find your federal student loan information by logging into your Federal Student Aid account on studentaid.gov . Private student loans are not listed on studentaid.gov  because they are not issued or managed by the federal government.   I Have Student Loans – What do I Do and What Are My Options? Here's a breakdown of action steps and potential solutions: Know Your Loan Servicer Loan servicers are assigned by the government to handle federal student loan billing, repayment options, relief options, loan consolidation, and other services on behalf of borrowers, at no cost. If you’re not sure who your servicer is, visit the Federal Student Aid  website or call the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243 Log In to your FSA Account to Verify Details and Update Your Contact Information Borrowers should log into their FSA account to ensure their loans are listed and accurate. They should confirm their contact information is up to date. Additionally, it’s a good time to ensure documents, like proof of income for those in income-driven repayment plans, are uploaded on your servicer’s website. Check Your Eligibility for Other Cancellation Programs The ED has several programs in place for loan forgiveness, cancellation or discharge , such as Public Service Loan Forgiveness  (PSLF) for those employed by the government or not-for-profit organizations, teacher loan forgiveness, closed school discharge, disability discharge, borrower defense, and others. It’s important to note that PSLF has had significant program updates, and you may qualify now even if you didn’t previously. Rehabilitation This is often the most recommended first step. Rehabilitation  involves making nine "reasonable and affordable" monthly payments within a ten-month period. Once you complete the rehabilitation program, your loan(s) will be considered non-defaulted, and you can explore income-driven repayment plans (more on those later). Importantly, successful loan rehabilitation removes the default from your credit report! This is HUGE for rebuilding your credit score in Pennsylvania. Consolidation If you have federal student loans, you may be eligible to consolidate (combine) your loans into a new Direct Consolidation Loan. You may want to consolidate your loans if you have multiple loans and want to simplify repayment or make your loans eligible for certain loan repayment, relief, or forgiveness options. You may also want to consolidate defaulted loans to get out of default.  Keep in mind that while consolidation can get you out of default, the default will  remain on your credit report.  Here’s a chart comparing rehabilitation vs. consolidation . Income-Driven Repayment Plans (IDR) These plans, like SAVE (Saving on a Valuable Education), Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Income-Contingent Repayment (ICR), base your monthly payments on your income and family size. For some borrowers, the monthly payment could be as low as $0. After a certain number of years (usually 20 or 25), the remaining balance is forgiven. Crucially, being on an IDR plan can shield you from aggressive collection actions in Pennsylvania. Discharge In certain situations, you may be eligible for a discharge of your student loans. This can include borrower defense to repayment (if your school misled you), total and permanent disability discharge, or closed school discharge. These are complex, and you likely need a qualified attorney to assist you.   Don't Face This Alone! The upcoming resumption of student loan collections can feel daunting, but remember, you have options. By taking proactive steps now, you can protect your financial well-being and chart a path toward a more secure future. Don't hesitate to reach out for help – it's what we're here for!

Our team of Pennsylvania real estate attorneys get asked about real estate transactions all  the time. And one question that pops up frequently, especially with the rise of fix-and-flippers and wholesalers, is this: "Is the assignment of a real estate agreement of sale a taxable event in Pennsylvania?" The short answer? It depends. And "depends" in the legal world usually means "it's complicated."  Let's break down the Pennsylvania Realty Transfer Tax (RTT) and how it applies to assignment scenarios. What is the Pennsylvania Realty Transfer Tax (RTT)? The RTT is a tax levied on the transfer of most sales of real estate in Pennsylvania. RTT ranges from 2%-5% of the total consideration of a property, with 1% submitted to the State, and the remainder going to the Municipality and School District for the property. The purpose of the tax is to generate revenue for the Commonwealth and its local governments. The tax is customarily split evenly between the seller and the buyer, but the parties may agree on other arrangements. Some transfers are exempt from the tax, such as conveyances between certain family members.  The full list of exempt transfers can be found here .   The General Rule: Transfer of Beneficial Ownership = Taxable Event The key to understanding whether an assignment triggers RTT is to consider whether the assignment results in a transfer of beneficial ownership of the property. Pennsylvania law generally treats a transfer of equitable title, including beneficial ownership, as equivalent to a legal transfer for RTT purposes. So, what does "beneficial ownership" mean? Think of it as having the rights and privileges associated with owning the property, even if you don't hold the deed just yet. This includes things like: The right to purchase the property under an agreement of sale The right to possession The right to profits from the property The right to direct future sale How Does This Apply to Assignments? The Scenarios and the Taxman Here's where it gets nuanced. Let's consider a few scenarios: Scenario 1: Straight Assignment for Profit.  Joe enters into an agreement of sale with Sally for $100,000. Before closing, Joe finds William (Assignee) who is willing to pay Joe $110,000 for the right to purchase  the property. Joe assigns the agreement of sale to William (the Assignee) for $10,000 (Joe’s assignment fee). William then closes on the property.  This is the “classic” real estate flipper’s transaction Likely Taxable.  This scenario is very likely to be subject to RTT.   The deed from Sally to William results in two transfer taxes: The first is on the $100,000 consideration for which Joe and Sally are liable, and another on the $125,000 consideration where Joe and William are liable. Scenario 2: Assignment to a Closely Held Entity (e.g., LLC). Changing Ownership from Individual to Company. Karen owns real estate. Rachel wants to purchase Karen’s real estate for use in a business venture. Rachel enters into agreement of sale with Karen to purchase the property for $300,000.00.  Rachel intends to take title in her own name. Rachel purchases the property with no mortgage. At settlement, through a PA title company Rachel pays Karen the $300,000.00 and Karen deeds the property over to Rachel.  After operating the business for a short time period an attorney advises Rachel to change the ownership of the property to her company Rachel, LLC.  in order to shield Rachel from any personal liability.  Rachel’s attorney files the deed with a Pennsylvania title company in order to record the documents. Likely Taxable. The result is transfer tax not only on the original purchase of $300,000.00 from Karen, which is split between buyer and seller.  But Rachel will also be faced with transfer tax on the transfer of ownership to her company, Rachel LLC.  The deed on the 2nd conveyance would be subject to transfer tax based on the Common Level Ratio multiplied by the Tax Assessment multiplied by the applicable transfer tax amount in that particular municipality. Scenario 3: Assignment of Agreement to Newly Formed LLC. Tom, a new real estate investor, enters into an agreement to purchase property in Pennsylvania. Prior to closing, Tom’s CPA advises him that he should take ownership of the property in a LLC.  Tom asks his attorney to form a special purpose entity (SPE) and assigns the agreement of sale to the SPE. At the closing, the seller conveys the property by deed to Tom’s SPE.  Potentially Taxable, but with Exemptions.  This is not an unusual situation.  This is a grey area. While technically a transfer, Pennsylvania offers exemptions for certain transfers to closely held entities, provided specific conditions are met . RTT will not apply to the assignment of an agreement of sale to Tom’s SPE so long as the following requirements are met: the initial agreement of sale expressly states that Tom was acting on behalf of a yet-to-be-formed SPE the initial agreement of sale expressly states that Tom has “no intent to obtain legal or equitable title to the real estate” the financing for the property must be in the name of the SPE the SPE must purchase the property at closing either with funds obtained from financing or with its own assets the assignment of the agreement of sale must result in a “repudiation” of Tom’s duties to the seller, and a “novation” on the part of the SPE to Tom’s duties. Important Considerations & Takeaways: Legal Advice in Advance is Important.  As you can see, the application of the RTT to assignments can be complex. Before engaging in any assignment, especially if you're looking to profit, consult with one of Fiffik Law Group’s real estate attorneys . They can help you analyze your specific situation, advise you on how to structure the transaction to minimize RTT and protect your interests throughout the transaction. Documentation is Key:  Regardless of the scenario, properly documenting the assignment transaction is crucial. This includes a clear assignment agreement, evidence of consideration (or lack thereof), and a clear explanation of the reasons for the assignment. Err on the Side of Caution:  It's generally better to err on the side of caution and seek professional guidance. The penalties for non-compliance with the RTT can be significant.

There’s a trend happening with small businesses: more adult children returning to work in their parents’ companies.  Gusto, the payroll company, recently crunched the numbers and found that since 2018, the share of small businesses where an adult child of the owner works has doubled . Maybe it’s the allure of a more secure environment, the desire to be closer to family, or the result of a cooling economy. Whatever the reason, more and more adult children are finding themselves working alongside Mom and Dad at the family business.  So, what does this trend mean for you, the small business owner? My answer, in short, is: it's time to seriously consider succession planning.   Now, I know what you might be thinking: " Succession planning ? Isn't that for the big corporations?" And while those giants certainly have their own complexities, succession planning is arguably even more crucial  for small, family-owned businesses. Why? Because when your business is intertwined with your family, the stakes are even higher.   Why Succession Planning Matters (Especially When Family is Involved):   Preserves Your Legacy You've poured your blood, sweat, and tears into building your business. Succession planning ensures that your hard work doesn't vanish when you decide to retire, move on, or, unfortunately, pass away. It allows you to shape the future of your company and see your vision carried on. Smooth Transition = Minimal Disruption Imagine trying to hand over the reins of your company without a plan in place. Chaos, confusion, and potential legal battles are likely. A well-crafted succession plan minimizes disruption to your employees, customers, and suppliers, ensuring a smooth and seamless transition. Avoids Family Conflict Let's be honest, family dynamics can be...complicated. Bringing family into the business, especially without a clear understanding of roles and responsibilities, can exacerbate existing tensions. Succession planning provides a framework for addressing these issues proactively and preventing future disputes. This is where legal counsel becomes invaluable. We can help mediate and facilitate discussions that might otherwise be difficult. Tax Optimization Let's talk about the elephant in the room: taxes. A properly structured succession plan can minimize estate taxes and other tax liabilities, allowing you to transfer your business to the next generation in the most tax-efficient manner possible. Pennsylvania has specific inheritance tax laws that need to be considered. Identifies and Develops Future Leaders Succession planning isn't just about choosing a successor; it's about developing the skills and knowledge they need to succeed. By identifying potential leaders early on, you can provide them with the training, mentorship, and experience necessary to take the helm. This is particularly important when the successor is a family member. Just because they share your DNA doesn't mean they automatically possess the skills to run the business. Don't Go It Alone Succession planning is a complex process that requires careful consideration and experienced guidance. Our small business attorneys at Fiffik Law Group can help you navigate the legal complexities and create a plan that meets your works for your family and business. Your family is the most important thing in your life – you want to pass your business on to them to continue your legacy.  Schedule a meeting with our attorneys today and let’s get the ball rolling.

Millions of individuals with disabilities and their families depend on a wide variety of public benefits for income, health care and food and housing assistance. Eligibility for these public benefits (SSI, SNAP, Medicaid) require meeting a means/resource test that restricts eligibility to individuals with less than $2,000 in liquid resources, such as checking and savings accounts and some retirement funds. To remain eligible for these public benefits, here are four things you need to know. These tips apply to disabled individuals whether they are minors or over 18 years old. 1. Putting a Child’s Government Benefits at Risk If an SSI beneficiary receives a lump-sum through a gift, inheritance or otherwise, this may make them ineligible for continued benefits because of having too many resources (that is over $2,000). Putting their name on your bank account or deed could also be considered a gift, even if you intend it for convenience or otherwise. Many of these benefits require monthly qualification, meaning if your child receives a gift, it must be reported and potentially could disrupt their right to continue receiving benefits. If you think refusing the gift will avoid disqualification, think again. A disabled individual may lose benefits even if they simply refuse the gift or inheritance . One option is to simply allow the child to go off the government benefits. If the gift or inheritance is worth a large amount, it may be to their advantage to simply forego the benefits to which they are otherwise entitled. When off of these benefits, there likely are not any restrictions on how the funds can be used. Therefore, the beneficiary may be able to use these funds to pay for housing, food, clothing, medical care and other basic needs. 2. Spend Down Another option is for the beneficiary to “spend down” the gift or inheritance in the month that it is received. If the child is not over the resource limit because they spent down the gift or inheritance, they can retain the government benefits, including medical coverage. Many benefit programs allow a beneficiary to own a certain amount or types of resources that are exempt from the eligibility rules. These might include a home, one vehicle or a burial policy up to a certain amount. Properly spending down the gift or inheritance does not simply mean wasting the money. Instead, the funds should be used to improve the individual’s quality of life. For example, improvements made to the home or an accessible van may improve their quality of life. Debt may be paid off, or medical expenses prepaid. Assistive devices such as canes, electronic wheelchairs or medical devices may also help. Any portion of the inheritance that is not spent down in the same month when it is received will be treated as a countable resource in the next month. 3. Open an ABLE Account The Pennsylvania ABLE Savings Program (PA ABLE) is a state-offered program that gives individuals with qualifying disabilities a tax-advantaged way to save or invest without impacting their government benefits. The Act limits eligibility to individuals with disabilities with an age of onset of disability before turning 26 years of age. All federal benefits are protected, including Medicaid and, with some limitations, Supplemental Security Income (SSI) benefits, as are many Pennsylvania benefits. An ABLE account may be set up and funded with up to $17,000 in a year (the maximum amount increases over time). As savings earn interest or returns over time, neither federal nor Pennsylvania income tax is owed; and when a withdrawal including that growth is taken, no income tax is owed as long as the withdrawal is used to pay for Qualified Disability Expenses. These expenses include: Education (tuition, books, supplies, etc.) Transportation Employment support (training, moving expenses, expenses related to obtaining and maintaining employment) Health prevention and wellness Assistive technology and personal support Miscellaneous expenses (legal fees, financial management fees, funeral and burial expenses) Housing – to avoid any negative impact to your SSI be sure to spend any money you withdraw for housing expenses in the same month you make the withdrawal In addition to the spending restrictions, another drawback of ABLE accounts is that any amount over $100,000 in the ABLE Account is counted as a resource towards SSI benefit eligibility, and if you exceed the SSI non-ABLE resource limit (currently $2,000), your SSI benefits will be suspended. As a result, for large gifts or inheritances, ABLE accounts are not appropriate. 4. Establish a Special Needs Trust Another potential option to help a disabled child retain their benefits while still giving them a gift or inheritance is to establish a special needs trust (“SNT”)(sometimes called a “supplemental” needs trust). This type of trust is specifically designed for disabled beneficiaries. A SNT should be seriously considered for a disabled child whenever that individual may receive 1) an inheritance; 2) an injury settlement; 3) a Social Security award for back benefits; 4) an education fund; and 5) a potential or actual interest in real estate. The benefits of a SNT include: Preservation of valuable government benefits; Financial security for the disabled child; Protection from creditors or financial predators; and Management of assets and expenditures. Here are some examples of expenses that an SNT might cover: Medical and dental expenses not covered elsewhere Equipment like wheelchairs or specially equipped vans A car Transportation services (Uber, Lyft, bus pass, etc.) Therapy or rehabilitation services Home furnishings Travel, which can include the cost of a companion\ Recreation and entertainment (summer camp, movies, social events, sports equipment) Electronic equipment, appliances, and computers Insurance Burial expenses Contact a Special Needs Attorney for Assistance The rules governing government benefits and children with special needs trusts are very complicated. Fiffik Law Group has experienced estate planning lawyers who are familiar with planning for SSI or Medicaid can help explain the possible options. Contact us here or call us at 412-391-1014 to schedule an appointment

A question that can catch any job seeker flat-footed: "Do you have a disability or any condition that would prevent you from performing the duties of the job?”  What do you say? Refusing to answer is at best a bad look and at worst an admission that you have a disability.  What can you do in this situation? Can the interviewer even ask this question?   What is a Disability Under the Law?   The Americans with Disabilities Act (ADA) definition of disabilities: A physical or mental impairment that substantially limits major life activities or bodily functions. A record of impairment, even if it isn’t classified as a medical disability. Someone who doesn’t have a medical disability, but is regarded as having a disability. The ADA makes it unlawful to discriminate against someone based on his or her association with a person with a disability. For example, the ADA also outlaws discrimination against those with a disability in government services, public accommodations, private employers, labor organizations, and labor-management committees.   The Americans with Disabilities Act does not provide a definitive list of medical conditions that are automatically considered ADA disabilities. However, you can find a list oft he most common physical and mental impairments typically covered and NOT covered under the ADA here .      The Law is On Your Side (Mostly)   Federal and Pennsylvania laws are in place to protect you from discrimination based on disability . The big players are: The Americans with Disabilities Act (ADA): This landmark federal law prohibits discrimination against qualified individuals with disabilities in employment. The Pennsylvania Human Relations Act (PHRA): Similar to the ADA, the PHRA protects individuals in Pennsylvania from discrimination based on disability, among other protected characteristics. These laws generally prohibit employers from making inquiries about your disability before  a job offer is made. This means employers may not require you to do a medical exam, and they may not ask an applicant if they have a disability. If you have a disability that is obvious, then the employer may not ask about the nature or severity of your disability.  They want the focus to be on your qualifications and ability to perform the job, not on your medical history or perceived limitations.   What Can They Ask? Questions Focusing on the Job, Not You   Instead of directly asking about a disability, employers can ask about your ability to perform specific job functions. Here are some examples: Acceptable:  "Are you able to lift 50 pounds?" or "Can you stand for extended periods of time?" (If these are essential functions of the job) Unacceptable:  "Do you have any back problems that would prevent you from lifting 50 pounds?" (This veers into disability inquiry) See the difference? They are asking about your capabilities  related to the job, not about your disability itself. If you have an obvious disability or you told them about a disability, the employer can also ask if you require any reasonable accommodations to perform the job.   When Can They Ask About a Disability? The Post-Offer Stage   After a conditional  job offer has been made, things change a bit. An employer can then ask disability-related questions and even require a medical examination, as long as these inquiries are job-related and consistent with business necessity. This means: They must ask the same questions of all employees in the same job category. The medical information must be kept confidential and separate from your general personnel file. They can't withdraw the offer based on your disability unless it can be proven that you can't perform the essential functions of the job, even with reasonable accommodation. However, your employer may not ask you about your family medical history (whether your relatives have medical conditions) or other questions related to genetic information during this medical exam.   Reasonable Accommodation: Your Right to a Fair Shot   This is where the "reasonable accommodation" piece comes in. If you have a disability that affects your ability to perform a job function, you have the right to request a reasonable accommodation. This could be anything from a modified workstation to a flexible schedule. The employer is required to engage in an interactive process with you to determine if a reasonable accommodation can be made without causing undue hardship to the business.   What to Do if You're Asked an Illegal Question   If an interviewer asks you a direct question about your disability before a job offer, you have a few options: 1. Refocus on Your Qualifications:  You can steer the conversation back to your abilities and how they relate to the job requirements. For example, if asked if you have a medical condition, you could say, "I am fully capable of performing all the essential functions of the job and am confident in my ability to meet the demands of this role." 2. Answer a Question with a Question:  You can ask how your answers will impact their decision on whether to offer you the position.  You can also ask about the company’s policy on protecting your private health information; with whom will your answers be shared. 3. Politely Decline to Answer:  You can simply say that you're not comfortable answering that question as it relates to your health information. 4. Consider if you want to disclose:  Ultimately, whether you disclose your disability on a job application is a personal choice. Legally, you’re not obligated to disclose a disability. Some disabilities may be non-apparent or minimally impact job duties. In such instances, disclosure could arguably introduce unintended bias, running counter to your goal of being objectively evaluated as a candidate for a job.   Important Considerations:   Honesty is Important:  If you're asked about your ability to perform a specific job function, be honest. Misrepresenting your abilities can lead to problems down the road. Document Everything:  Keep records of any questions you're asked and any responses you provide. Make notes about the interview as soon as possible after its completed while your memory is fresh.  This could be helpful if you believe you've been discriminated against. Seek Legal Advice:  If you believe you've been subjected to illegal disability-related inquiries or discrimination, consult with one of the Fiffik Law Group employment attorneys.   The Bottom Line   Navigating the job search process with a disability can be challenging. Knowing your rights is the first step. Employers in Pennsylvania, and across the country, are legally obligated to focus on your qualifications and abilities, not on perceived limitations related to your disability. Don't be afraid to stand up for your rights and seek legal counsel from Fiffik Law Group if you believe you've been treated unfairly.

In our increasingly digital world, it's a valid question, and the answer is a resounding YES, with a few key considerations! The days of physically signing every document with a pen are going away fast. Today, we're e-signing contracts , tax forms, loan applications, and so much more, all from the comfort of our laptops or smartphones. But before you ditch the ink forever, let's break down the legal landscape of electronic signatures in Pennsylvania.   The Law of the Land: UETA in Pennsylvania   The bedrock of electronic signature legality in PA is the Uniform Electronic Transactions Act (UETA) , specifically Title 73 P.S. Section 2260.101 et seq. Pennsylvania adopted UETA, which essentially says that:   A signature can't be denied legal effect solely because it's in electronic form. This is the big takeaway! An e-signature is just as valid as a handwritten one under most circumstances. An electronic record can't be denied legal effect or enforceability solely because it's in electronic form.  This extends the validity to the entire document, not just the signature.   On the federal level, we have the Electronic Signatures in Global and National Commerce Act (E-SIGN Act) . This act complements UETA and ensures that electronic signatures are recognized and valid across state lines. Think of it as the federal backup in case of any gaps in state law.   If you’ve ever tried to print, sign, scan and email a document, you know how difficult and cumbersome that can be, especially if you’re away from your home or office. You can often wave goodbye to those days - efficiency wins!   What Constitutes Signed, Sealed, Delivered…Electronically?   UETA defines an "electronic signature" as an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.  In simpler terms, it means anything you use to indicate your agreement online. This could include:   Typing your name:  Like typing your name at the end of an email agreeing to terms. Clicking a button:  Think "I Agree" or "Submit" on a website. Using a digital signature platform:  Services like DocuSign or Adobe Sign that provide a more secure and verifiable signature process. PIN Numbers and Passwords:  In certain contexts, using a PIN or password can act as an electronic signature.   Key Requirements for a Valid E-Signature   While electronic signatures are generally valid, there are a few crucial boxes you need to tick to ensure they hold up in court:   Intent to Sign:  The most important factor! You must intend to sign the electronic record. This means you consciously and deliberately agreed to the terms of the document. Attribution: The electronic signature must be logically linked to you. This often involves using methods that reliably identify you as the signatory, such as using a secure digital signature platform. Consent: You must consent to using electronic signatures. This doesn't necessarily mean you need to sign a separate document agreeing to use electronic signatures, but it implies that you were aware and willing to participate in an electronic transaction. Record Retention:  The system used to create the electronic signature should be capable of retaining the record in a way that accurately reflects the agreement. Document Integrity:   A document will not be accepted if there is evidence that it was altered after signing. This is crucial in establishing the legal status of any document, whether it is signed by hand or electronically. Remember that once the document signing has taken place, the document should not be changed in any way.    Are There Exceptions? Certain Documents Where Ink Still Reigns Supreme   While electronic signatures are widely accepted, there are some exceptions where a traditional ink signature is still required. These typically involve documents governed by specific laws or those with significant legal consequences. Examples include:   Wills and Trusts:  In Pennsylvania, wills and trusts generally need to be signed in old fashioned blue ink. Documents Requiring Notarization with Specific Language:  While remote online notarization is now legal in PA, the specific requirements for notarization may preclude electronic signatures in certain situations. Court Orders :  Courts often require ink signatures on official orders.   Best Practices for Using E-Signatures in Pennsylvania   To ensure the validity and enforceability of your electronic signatures, follow these best practices:   Use Reputable Platforms:  Employ well-established digital signature platforms like DocuSign or Adobe Sign, which offer robust security features and audit trails. Obtain Clear Consent:  Ensure that all parties involved explicitly agree to use electronic signatures. Maintain a Clear Audit Trail:  Choose a system that provides a comprehensive audit trail documenting the signature process, including the time, date, IP address, and other relevant information. Keep Records Securely:  Store electronic records securely and in a format that can be readily accessed and authenticated.   The Bottom Line: Embrace the Digital Age, But Proceed with Caution   Electronic signatures are a powerful tool for streamlining transactions and increasing efficiency in Pennsylvania. However, it’s crucial to understand the legal requirements and best practices to ensure your electronic signatures are valid and enforceable. When in doubt, always consult with an attorney  to discuss your specific situation and ensure you’re complying with all applicable laws and regulations.

Your medical history is intensely personal. You certainly wouldn't want it plastered on the company bulletin board. Disclosing sensitive medical information can lead to discrimination, stigma, and just plain discomfort. Nobody wants their boss knowing about their migraines, fertility treatments, or mental health struggles unless they choose to share that information. If you have a disability that causes issues with your work, you might be wondering whether your employer required to keep your medical information private. The short answer is generally, yes, but like with most legal issues, there are nuances and exceptions. Let's break it down. The Foundation: HIPAA Doesn't Always Apply (Unfortunately) Many people automatically think of HIPAA (the Health Insurance Portability and Accountability Act) when discussing medical privacy. The HIPAA Privacy Rule defines what constitutes individually identifiable health information and how it should be protected from unauthorized uses and disclosures.  While HIPAA is a powerful law, it primarily protects your medical information held by healthcare providers and health insurance companies. Your employer usually isn't covered under HIPAA in its role as an employer unless it’s directly involved in providing your healthcare (e.g., a company clinic).  For example, a new employee’s health information disclosed to an HR department is not protected by HIPAA.  So, What Does Protect Me? Key Pennsylvania Protections: Even without HIPAA, Pennsylvania and federal laws provide significant protections for your medical information held by your employer. Here are the main players: The Americans with Disabilities Act (ADA) The ADA, a federal law, is a HUGE protector when it comes to medical information. Here's how: Pre-employment:  Before you're hired, your employer generally  can't ask you about your medical history or require a medical examination. They can only ask if you can perform the essential functions of the job with or without reasonable accommodation. During employment:  Once you're hired, the ADA limits when an employer can ask for medical information or require a medical examination. This is usually allowed only if it's job-related and consistent with business necessity. Think: An employer noticing performance problems might ask for a medical exam to determine if it's related to a medical condition. Requiring a fitness-for-duty exam after an employee takes leave due to a medical condition. Confidentiality:  The ADA mandates that any medical information obtained by your employer (whether through an exam, voluntary disclosure, or otherwise) must be kept confidential, separate from your personnel file, and only accessed by people who have a legitimate need to know. This usually includes HR personnel, supervisors involved in accommodation decisions, and potentially medical staff. Pennsylvania Workers' Compensation Act:  If you're injured at work and file a workers' compensation claim , your employer (or, more accurately, their insurance carrier) will have access to medical information related to that injury. However, this information should still be kept confidential and used only for purposes related to the claim. The Genetic Information Nondiscrimination Act (GINA):   GINA protects you from discrimination based on genetic information. This means your employer can't request, require, or use your genetic information (or your family's genetic information) for employment decisions. General Privacy Principles:  Beyond specific laws, Pennsylvania courts generally recognize a right to privacy, which could extend to medical information, depending on the circumstances. However, this is a less clear-cut area of the law and highly fact-dependent. Common Scenarios and Best Practices Let's look at some common situations: Sharing Medical Information for Accommodations If you need a reasonable accommodation under the ADA (like a special chair, protection from environmental conditions in the workplace, modified work schedule), you will likely need to provide some medical documentation to support your request. Remember, your employer only needs enough information to understand your limitations and determine appropriate accommodations. They don't  need your entire life story. Returning from Medical Leave As mentioned earlier, your employer can require a fitness-for-duty exam before you return to work after medical leave. This is to ensure you can safely perform your job duties. Drug Testing Many employers in Pennsylvania conduct drug testing . While technically providing a medical sample, these tests are typically treated differently than traditional medical information and are subject to their own set of regulations. Authorizations Your employer can share your medical information if you sign an authorization allowing them to do so.  If presented with such a form, read it completely and do not sign it unless you understand it.  You can also limit the time period during which it is effective and also limit the persons with whom your employer is authorized to share your information. What to Do If You Suspect a Privacy Breach If you believe your employer has improperly disclosed your medical information or is using it in a discriminatory way, here's what you should do: 1. Set Expectations Early If you’re sharing medical information with your employer, before doing so, ask about its policies on protecting your privacy and sharing information.  Ask who will have access to your information and under what circumstances it might be shared. 2. Take Steps to Protect Your Information Your information is only private if you’ve kept it private.  If you share information with co-workers, your claim to privacy is weakened.  Don’t send it to your employer via email or other unsecured means of communication.  If you want your information to be private, then you have to treat it as private as well.  When conveying your information, tell the sender in the message that you deem the information to be confidential and that it not be shared with anyone without your express prior authorization. 3. Document Everything Keep a detailed record of any disclosure incident, including dates, times, what was said, and who was involved. 4. Internal Complaint Consider filing an internal complaint with HR, if you feel comfortable doing so. 5. Legal Consultation Contact one of Fiffik Law Group’s employment attorneys to discuss your rights and options. We can help you determine if your employer violated the ADA or other relevant laws. 6. File a Charge You may also be able to file a charge with the Equal Employment Opportunity Commission (EEOC) or the Pennsylvania Human Relations Commission (PHRC). Key Takeaways: While HIPAA doesn't typically apply to employers, other laws like the ADA provide significant protections for your medical information. Your employer can only ask for medical information if it's job-related and consistent with business necessity. Any medical information your employer collects must be kept confidential. If you suspect a privacy breach, document everything and seek legal advice. Have questions about your employer's medical privacy practices? Give our office a call. We're here to help protect your rights!

Obtaining financing is one of the biggest challenges facing business owners . Virtually every bank will require a personal guaranty before it agrees to approve a loan to your business. In the event that you default on the loan, lenders will always attempt to collect on a personal guaranty. Let’s look at what a personal guaranty is and some loopholes that might help a guarantor avoid personal liability. What is a personal guaranty? A guaranty is personal a promise to pay a business debt. The guarantor is the person making the promise. The guarantor is often the person who needs the loan, but the guarantor can also be someone other than borrower (often called a “third party”) that promises to make payment on behalf of another. What liabilities are you assuming when you sign a personal guaranty? When you sign a personal guaranty on behalf of a business, you agree to be personally responsible for repaying that debt from your personal assets if the business later fails to pay the loan. In the event of default, the lender will file suit against the business and the guarantor to collect the debt. If the bank cannot recover the balance of its loan from the assets of the business, it will sue the guarantor personally for the remaining balance. In other words, when you sign a personal guaranty in order for your business to receive a loan, you pledge your personal assets as collateral, including your home, the cash in your personal checking account, your savings and investments, and your future wages, which the bank can try to garnish. Must the lender sue the business before the guarantor? No. Most commercial guaranties do not require that the lender sue the borrower first. Most commercial guaranties provide that the guaranty is a guaranty of payment and not a guaranty of collection. As such, the lender has no obligation to attempt to collect from the borrower first. Often, the lender will file suit against the business and guarantor simultaneously. Limited Recourse Limited recourse loans are similar to full recourse loans but limit the amount the lender can recover from the guarantor to a specific dollar amount or percentage of the loan amount. Non-Recourse Under non-recourse loans, the guarantor is not generally responsible for losses the lender incurs, unless they commit certain bad acts; such as fraud, waste, damage or destruction, misapplication, misrepresentation, bankruptcy, or environmental contamination. These bad acts are generally known as non-recourse carveouts. If a borrower under a non-recourse loan is unable to make its monthly payments or pay off the loan at maturity, they can give the property back to the lender without the guarantor having to repay the loan and the lender’s losses so long as they have not violated one of the non-recourse carveouts. How do you limit your liability as a guarantor? Personal guarantees are a critical aspect of most business loans, so entrepreneurs and business owners should familiarize themselves with ways to limit their personal liability. This is especially true for guarantors who have a minority ownership interest in the business that is the borrower. Minority owners have little control over how the business spends its money and whether it pays the business loan. Get an agreement with the business concerning payment of the loan. For minority owners signing a guaranty, this important issue cannot be overlooked. Minority owners typically lack control over business decisions, including how revenues are spent and which debts are paid first. If you guaranty a business loan, its important to have a written agreement in place that requires the business to prioritize paying the loan that you guaranty ahead of all other expenses, including payments to owners. You will also want the business to sign an indemnity agreement entitling you to be paid back from the business for any amounts you are required to pay to a lender on a guaranty. Get a contribution agreement from co-guarantors. If there are multiple guarantors, its important to understand that you could be required to pay the entire debt off, not simply your ”share” of the debt. The guaranty means that the lender call collect the entire debt from any single guarantor without seeking contribution from other guarantors or the business. If you end up paying all or a substantial portion of the debt, you’ll want to seek contribution from your fellow owners. The law may entitle you to repayment, but contribution rules can be unclear and vary from state to state. Guarantors should also be mindful of the federal income tax implications of their contribution obligations, especially for the ability to allocate losses of a borrower that is a partnership or a limited liability company taxed as a partnership. Consider a limited guaranty It is not uncommon for some or all guarantors of a loan to guarantee only a part of the loan amount. Such guarantors are referred to as “partial guarantors” to distinguish them from “full guarantors,” whose guaranty liability is for the full amount of the loan. Here are three types of limited guaranty obligations. Limited Recourse Loans Limited recourse loans are similar to full recourse loans but limit the amount the lender can recover from the guarantor to a specific dollar amount or percentage of the loan amount. Non-Recourse Loans Under non-recourse loans, the guarantor is not generally responsible for losses the lender incurs, unless they commit certain bad acts; such as fraud, waste, damage or destruction, misapplication, misrepresentation, bankruptcy, or environmental contamination. These bad acts are generally known as non-recourse carveouts. If a borrower under a non-recourse loan is unable to make its monthly payments or pay off the loan at maturity, they can give the property back to the lender without the guarantor having to repay the loan and the lender’s losses so long as they have not violated one of the non-recourse carveouts. Guaranty of collection The Guarantor guarantees to the lender full collection of all monies payable by the borrowing business to the lender. However, this guaranty is limited and conditional in that it is a guaranty of collection only and the guarantor is obligated to make payments only after the lender has reduced its claims to judgment and execution on the judgment has been returned unsatisfied (by the business). An additional limitation would be that to the extent the loan is secured by any property of the Company, the Guarantor is not obligated to make payments unless there remains a balance outstanding under the loan after all such collateral has been liquidated and the net proceeds applied to the loan. Can a personal guaranty be revoked later? An otherwise valid and enforceable personal guarantee can be revoked later in several different ways. A guaranty, much like any other contract, can be revoked later if both the guarantor and the lender agree in writing. The guaranty can sunset after passage of a certain period of time or not be valid above a certain amount. Some debts owed by personal guarantors can also be discharged in bankruptcy. Many factors can affect the enforceability of personal guarantees. If you have any questions about the enforceability of a personal guaranty that you have signed, or if you are considering signing one to get financing approved, please consult with one of our experienced Pennsylvania business law attorneys who will assess your case and offer thoughtful legal guidance to support your decision.

Let’s talk about something incredibly painful and, unfortunately, far too common: a sibling blocking you from seeing your elderly parent. Maybe your sibling moved in with your parent to care for them. Sometimes a sibling moves the parent into their own house. However it happens, we’ve seen this scenario play out countless times, and we know how emotionally difficult it can be. You're worried, you're feeling helpless, and frankly, you might be furious. What Could Happen? In these situations, some people find out after a parent dies that a new will was drafted during the time when they were shut out of their parent’s life. The new will leaves everything to the person living with the elderly parent. That sibling may convince the parent not to tell their other children about the change in a will. You may find out that your parent has transferred some or all of their assets to the caregiving sibling – including real estate, investment accounts and cars. The truly sophisticated bad siblings have the beneficiary forms to accounts changed to cut everyone out but themselves. The parent may be told the other children never call, never visit and perhaps don’t even love the parent — all the while leaving out the fact that the other siblings are being prevented access. This may sound a bit unbelievable but it happens in many circumstances. The historical dynamics of families often continue as parents become elderly and more vulnerable. That means that heated rivalries may occur — and adult children who have freeloaded off their parents for years may latch onto them even more. The person controlling an elderly parent doesn’t have to be part of the family. In some cases, it can be a housekeeper, neighbor or a stranger. The motives are the same — to make the elderly parent believe that the controlling individual is the only one who cares enough to help. What Should You Do? While legal solutions can be complex and case-specific, there are definite steps you can take. Before we dive in, remember this: every situation is unique. If you’re facing this situation, you need to consult with a qualified attorney to discuss your specific circumstances. 1. Call the Local Area Agency on Aging. If you cannot get in touch with your parent and are prevented from seeing them, it is a form of elder abuse. Someone who is exerting complete control over an elderly person is evidence of elder abuse . The AAA may assign an investigator to call your parent or visit the home to assess the situation. 2. Be on the Lookout for Financial Exploitation. The person who restricts access to an elderly person often does so with the intent of financially exploiting the victim. This means taking an elder’s money or other assets against their will or without their knowledge. Also deceiving, harassing, intimidating or using undue influence to get the elder to do something against their will or best interests. Look for these signs of exploitation: Deviation in long-held financial habits of your parent Changed Will Changed beneficiary forms Name of caregiver on parent’s accounts Numerous unpaid bills Checks made to cash Disparity between lifestyle and assets Personal belongings are missing 3. Take Reasonable Steps to Maintain Contact with Your Parent. Just because someone is getting in the way, try not to be easily rebuffed in your efforts to maintain contact with your parent. Call and text your parent. Call, text or email your sibling with requests to visit. Go to their home and ask to see your parent. Approach the conversation with empathy and a willingness to listen. Even if it feels like a lost cause, attempting open communication can demonstrate to a court that you've made a genuine effort to resolve the issue peacefully. If possible, suggest involving a neutral third party, like a pastor, family therapist or mutually trusted friend, to facilitate the conversation. If you know your parent’s schedule of activities outside the home, plan to be where your parent is going to be so you have contact with them. If you know your parents’ close friends or relatives, call them and ask if they’re also experiencing difficulties maintaining contact. A group effort to break through can be effective. 4. Document Everything. Keep a detailed log of important information. This includes: A list of your parent’s assets to the extent you know them. If you have access to their accounts online, you should take down important information like account numbers and balances. Often the sibling who is holding your parent hostage will work to access your parent’s accounts and possibly change or drain them. Copies of your communications (or attempts) with you parent or the caregiver who is getting in the way. Dates and times you tried to contact your parent or visit them. How you attempted contact (phone, text, email, in-person). The response you received (or lack thereof). Who you spoke with (if anyone) and what was said. Your overall feelings and concerns. 5. Review Existing Legal Documents. Does your parent have a Power of Attorney (POA), a Healthcare Directive (Living Will), or a Will? Who are the designated agents or executors? These documents dictate who has the legal authority to make decisions regarding your parent's finances, healthcare, and well-being. Having copies of these could be important when consulting with an attorney or seeking court intervention. Seek Legal Counsel and Potentially File a Petition with the Court If all else fails, it might be necessary to involve the courts. An experienced Pennsylvania elder law attorney can: Review the facts of the situation and make additional suggestions for action steps prior to resorting to the courts. Advise you on your legal options, including filing a petition for guardianship, seeking an accounting of funds if a POA is involved, or requesting visitation rights. Represent you in court and advocate for your parent's best interests. While going to court is often the last resort, it's sometimes the only way to ensure your parent's well-being and your right to visit them. A petition to the court could seek orders for access, guardianship, or even the removal of a problematic agent under a Power of Attorney. Key Takeaway This is a stressful situation, but you are not alone. Remember to document everything, attempt open communication, understand the legal landscape, and don't hesitate to seek professional legal advice from the experienced elder law attorneys at Fiffik Law Group. Protecting your parent's well-being is paramount, and sometimes that requires navigating complex legal issues.

Remember how great it was to pull this Community Chest card in Monopoly: You Inherit $100! Well receiving an inheritance can be a bit sticky when you're receiving Medicaid in Pennsylvania. Receiving an inheritance, a lump sum of money or property, can significantly impact your Medicaid eligibility. Let’s break down the complexities and see how to navigate this potential bump in the road. Medicaid in Pennsylvania: A Needs-Based Program First things first: Medicaid in Pennsylvania is designed to provide healthcare or skilled nursing care coverage to individuals who can't afford it otherwise. As such, it is a needs-based program – meaning if you have assets valued over a certain amount, you will not be eligible for Medicaid. A sudden influx of assets, like an inheritance, could put you over the limit of assets for purpose of Medicaid eligibility. The Asset Limit: The Critical Threshold Pennsylvania Medicaid has strict asset limits. While these limits can vary slightly depending on the specific Medicaid program you are enrolled in (e.g., Medical Assistance for individuals aged 65 or older, or those who are blind or disabled), the core principle remains: you can't have too much money in the bank. Generally, for an individual, this limit is relatively low, often a few thousand dollars. For married couples, the limit is higher, but still significant. 2025 Pennsylvania Medicaid Asset Limits What Happens When You Inherit? When you receive an inheritance, the cash, stocks, bonds, real estate, or other assets you inherit are considered available resources for Medicaid purposes. This means they count towards the asset limit. If your inheritance pushes you above that limit, you risk losing your Medicaid benefits. You’ll be ineligible until you spend down the inheritance below the applicable limit. Then you’ll have to go through the Medicaid application process all over again. That’s a hurdle that for some, especially those who are disabled or elderly with nobody to help, that can be insurmountable. Reporting the Inheritance is Required under the Law The absolute most important thing you can do when you receive an inheritance while on Medicaid is to report it immediately to your caseworker or the Department of Human Services (DHS). Failure to report it can be considered fraud and lead to serious penalties, including the repayment of benefits received while ineligible. If You're About to Inherit. What Are Your Options? Receiving an inheritance doesn't automatically mean you'll lose your Medicaid coverage at all or forever. You usually have a significant amount of time between the date that you are informed you are eligible for an inheritance and the date you actually receive the inheritance. There are strategies you can explore to protect your eligibility while still benefiting from the inheritance. You can use that time period to do some planning. Here are some common approaches: Disclaimer: Persons eligible for an inheritance can “disclaim” their right to receive the inheritance. This might seem like the easiest solution to your problem but it will not work. Medicaid rules require you to make your assets available if you can. If you refuse an asset, or even pass up an opportunity to obtain an asset, there may be a penalty. Spend Down: This involves legally spending the inheritance on allowable expenses within a reasonable timeframe. Allowable expenses might include paying down debt, making necessary home repairs (especially those that increase accessibility), purchasing a vehicle for transportation, or pre-paying funeral expenses. IMPORTANT: You need to document everything meticulously and ensure the spending is in line with Medicaid regulations. The timing of the spend down can also reduce or possibly eliminate any period of ineligibility for Medicaid benefits. Donating to charity is generally not a permissible spend-down. Work with Executor or Trustee: The person leaving you an inheritance may have included provisions in their Will or Trust that might include provisions protecting the inheritance for beneficiaries who received Medicaid benefits. It might be helpful to open a dialogue with the executor, trustee or the attorney administering the estate to see what options might be available in the decedent’s estate planning documents. PA ABLE Account: These accounts are for people with a qualifying disability that began before age 26. If eligible, you could pay the inheritance into an ABLE account and use it to pay for basic living expenses without jeopardizing eligibility for Medicaid and other government benefits. Special Needs Trust (SNT): If you are disabled, a Special Needs Trust (also known as a Supplemental Needs Trust) can be a valuable tool. This allows you to hold assets (including inheritance) without impacting your Medicaid eligibility. SNTs are complex and require careful drafting by an experienced attorney. Get Professional Help: Don't Go It Alone! Navigating Medicaid regulations is very complicated and the options available to you depend on a variety of factors. Every situation is unique, and the rules are constantly evolving. If you are receiving Medicaid in Pennsylvania and expect to receive an inheritance, seek legal counsel immediately. The experienced elder law attorneys at Fiffik Law Group can help you understand your options, develop a strategy to protect your Medicaid eligibility, and ensure you are compliant with all applicable laws and regulations. We can help you navigate this challenging situation and find the best solution for your specific needs.