Advertising for Estate

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Probate is the process of handling an individual’s estate after they pass away. If the individual had a will, it should name an executor. An executor is the person designated to be responsible for the administration of a person’s estate. If the individual did not have a will, their next of kin can apply to be appointed as administrator of that individual’s estate. Part of the probate process is advertisement of the estate. The purpose of advertisement is to put any interested parties on notice of the death of the decedent.

Two types of advertisement are needed. First, notice should be published in the local law reporter for the county where probate is initiated. Second, notice should be published in a newspaper of general circulation within the county. Proper advertisement protects the executor or administrator in terms of their fiduciary responsibility to properly carry out the estate. After one year from date of advertisement, creditors can no longer make a claim against the estate and the executor or administrator can feel confident in making any distributions of the estate after that point.  By April M. Townsend

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Estate planning tips for blended families

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Careful estate planning may help people prevent inheritance disputes between their new spouses and their children from prior marriages upon their passing.

It is fairly common for people in Pennsylvania to remarry after a divorce, and often, one or both spouses may have children from a previous relationship. While these blended families offer people new opportunities to love and live, they can pose some challenging estate planning and inheritance issues. Therefore, having a carefully thought out estate plan that takes into account their new spouses’ needs, as well as those of their children’s, may help people prevent family disputes following their deaths.

Review beneficiary designations

The way people list their beneficiaries on retirement accounts, life insurance policies and other such accounts will affect how these benefits are disbursed upon their deaths. For example, it is common for people to update their beneficiary designations to their new spouses upon getting remarried. However, if they name only their new spouses, then they are able to specify their own new beneficiaries. This means that the original policy holders’ children may be bypassed altogether.

As such, people should make their intentions clear when designating their beneficiaries. They may name who the accounts should pass to after their spouses’ deaths or indicate specific percentages that each of their beneficiaries should receive.

Designate specific property separately

People often have family heirlooms or cherished personal property that they intend to pass on to certain children. Without a carefully designed plan, however, AARP points out that their new spouses may be entitled to claim up to half of the assets in people’s wills. Thus, it may be helpful if people leave a separate list of this property, sometimes referred to as a personal property memorandum. This list should describe each item to be gifted in detail and provide specific instructions as to who should receive each item upon their passing.

Consider inheritance timing

For couples who have not previously been married, inheritance timing is somewhat easy. People often leave their assets to their spouses, and their estates are passed on to their children after their spouses pass away. When it comes to second or subsequent marriages, however, withholding distributions of their children’s inheritances until after the death of their new spouses may create hostility and impatience. Therefore, people may consider establishing trusts or outright transfers that occur at the time of their deaths in order to accommodate the needs of both their surviving spouses and their children.

Working with an attorney

In the ideal situation, people in Pennsylvania could rely on their spouses and their children to work out inheritances to all their benefit after they pass away. However, even in long-term second marriages, new spouses and children from prior marriages may have drastically different ideas of what they are entitled to. As such, it will benefit people who have remarried or who are planning to get remarried to seek legal guidance. An attorney can explain their rights, including establishing wills and trusts, and help them set up a plan that provides for the needs of both their current spouses and their children from prior marriages.

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Estate planning tips for blended families

,

Careful estate planning may help people prevent inheritance disputes between their new spouses and their children from prior marriages upon their passing.

It is fairly common for people in Pennsylvania to remarry after a divorce, and often, one or both spouses may have children from a previous relationship. While these blended families offer people new opportunities to love and live, they can pose some challenging estate planning and inheritance issues. Therefore, having a carefully thought out estate plan that takes into account their new spouses’ needs, as well as those of their children’s, may help people prevent family disputes following their deaths.

Review beneficiary designations

The way people list their beneficiaries on retirement accounts, life insurance policies and other such accounts will affect how these benefits are disbursed upon their deaths. For example, it is common for people to update their beneficiary designations to their new spouses upon getting remarried. However, if they name only their new spouses, then they are able to specify their own new beneficiaries. This means that the original policy holders’ children may be bypassed altogether.

As such, people should make their intentions clear when designating their beneficiaries. They may name who the accounts should pass to after their spouses’ deaths or indicate specific percentages that each of their beneficiaries should receive.

Designate specific property separately

People often have family heirlooms or cherished personal property that they intend to pass on to certain children. Without a carefully designed plan, however, AARP points out that their new spouses may be entitled to claim up to half of the assets in people’s wills. Thus, it may be helpful if people leave a separate list of this property, sometimes referred to as a personal property memorandum. This list should describe each item to be gifted in detail and provide specific instructions as to who should receive each item upon their passing.

Consider inheritance timing

For couples who have not previously been married, inheritance timing is somewhat easy. People often leave their assets to their spouses, and their estates are passed on to their children after their spouses pass away. When it comes to second or subsequent marriages, however, withholding distributions of their children’s inheritances until after the death of their new spouses may create hostility and impatience. Therefore, people may consider establishing trusts or outright transfers that occur at the time of their deaths in order to accommodate the needs of both their surviving spouses and their children.

Working with an attorney

In the ideal situation, people in Pennsylvania could rely on their spouses and their children to work out inheritances to all their benefit after they pass away. However, even in long-term second marriages, new spouses and children from prior marriages may have drastically different ideas of what they are entitled to. As such, it will benefit people who have remarried or who are planning to get remarried to seek legal guidance. An attorney can explain their rights, including establishing wills and trusts, and help them set up a plan that provides for the needs of both their current spouses and their children from prior marriages.

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Frequently asked questions about pet trusts

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Pet owners who anticipate their pets outliving them should know the essential facts about pet trusts to be able to decide what is right for their situations.

Estate planning in Pennsylvania involves a lot of different considerations, including drafting a will, selecting an estate administrator, planning for the probate process and setting up any trusts. One kind of trust that people often overlook is a pet trust. A pet trust is a great way for pet owners to ensure that their animal companions will receive the optimal level of care necessary for them to have happy lives after their owners’ deaths. Knowing the answers to some common questions about pet trusts can help pet owners to decide if a pet trust is right for their estate plans.

What exactly is a pet trust?

A pet trust is a legal arrangement to ensure that a pet will receive the proper care and maintenance it needs after its owner passes away. While typically used for animals with longer lifespans such as parrots and horses, a pet trust can be set up for any animal and will last for the duration of the animal’s lifetime. When it is set up, a designated caregiver is set up as a “trustee” who will be given a set amount of funds that is determined by the grantor of the trust, based on what the pet’s needs are anticipated to be. This may be done in whatever manner the grantor specifies in the trust, but it is usually done as a disbursing of funds at regular intervals.

How is a pet trust different from putting a pet in a will?

There are limitations to what can be put in a will, and when someone inherits money from a will, he or she is not necessarily going to be monitored as far as what he or she spends the money on. A pet trust instills in the trustee a legal obligation to utilize the designated funds exclusively for the care of the specified pet. A pet owner can also specify the expected standard of care for the pet to receive for the remainder of its life. Another benefit to a pet trust is the option to designate a remainder beneficiary. In the event that the pet passes on before all of the funds of the pet trust are exhausted, this beneficiary will receive anything that is left over in the trust.

The decision as to whether or not to go with a pet trust can be a complex matter. There are many details to be worked out, especially if there are multiple pets involved. It may be prudent for someone who is considering this option to discuss the matter with an attorney in the local area who practices estate planning law.

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Wills for Heroes

Wills for Heroes is a program in conjunction with the Pennsylvania Bar Association that provides free wills, living wills, and powers of attorney to first responders and their families. Appointments are required along with proof of military or public service. There is also a limit on the size of the estate to utilize this service. Appointments can be made online at the Pennsylvania Bar Association website. Each appointment slot is one hour. Each participant will have their final, notarized documents to take home with them by the conclusion of their appointment. If a spouse or significant other is also participating, their appointment will be immediately following that of the first responder. The program is made possible through the time of volunteers including attorneys, reviewers and witnesses.

Lehigh County has a “Wills for Heroes” event coming up on Saturday, August 18 2018. The event is being held at the Barrister Club. Their address is 1114 W Walnut Street, Allentown, PA 18102. Appointments begin at 11 a.m. For more information and events at other locations throughout the state, you can visit www.pabar.org/wfh/. Other upcoming dates include September 8, 2018 for York County and September 12, 2018 for Philadelphia. Our firm is also able to assist with estate planning documents at a reasonable cost including trusts, wills, living wills and powers of attorney. Please contact our office if you would like additional information or to set up an appointment.

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Spousal Elective Share

It is possible for a spouse intentionally left out of the other spouse’s will to still receive a share of the estate in the event of death. Pennsylvania law provides for an “elective share” pursuant to 20 Pa. C.S. 2203(a). This law provides that if a person is still married at the time of their death with no divorce pending, the surviving spouse can elect to receive 1/3 of that person’s estate. There are items that are excluded from the estate in instances where an elective share will be applied. 2203(b) states the following exceptions: (1) any conveyance made with the express consent or joinder of the surviving spouse; (2) the proceeds of insurance, including accidental death benefits, on the life of the decedent; (3) interests under any broad-based nondiscriminatory pension, profit sharing, stock bonus, deferred compensation, disability, death benefit or other such plan established by an employer for benefit of its employees and their beneficiaries; (4) property passing by the decedent’s exercise or non-exercise of any power of appointment given by someone other than the decedent.

To simplify, a surviving spouse cannot receive any portion of something that they already agreed to give away by way of previously consenting to it. As it relates to subsections (2), (3) and (4), accounts that have a beneficiary designation will pass to the named beneficiary. Additionally, the surviving spouse waives the right to seek other items they may have been entitled to if they choose to exercise the elective share. The surviving spouse must reduce to writing their intent to exercise the elective share and timely file with the court. Either spouse may waive their right to exercise the elective share before or during the marriage or even after death of their spouse. This waiver could be included in a pre-nuptial or post-nuptial agreement, for example. It is wise to consult with an attorney to see if choosing the elective share is the best outcome if you are left out of a spouse’s will.

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Starting Probate

After a family member’s death, the first step should be to determine if they had a last will and testament. If so, you will want to locate the original will and make sure it has been properly signed and witnessed. The named executor will need to go to the Register of Wills with the original will, photo identification, and some method of payment to open the estate. If the named executor does not want to act they can sign a renunciation which would allow someone else to take on the role. The Register of Wills will give the executor a short certificate of letters testamentary. This document authorizes the executor to handle the decedent’s estate. If a loved one has passed away without a will, the Pennsylvania laws on intestacy will govern how their estate is handled. The closest kin can apply to the Register of Wills to be designated as the administrator of the estate. They will also be granted a short certificate as proof of their authority to handle the estate.

The executor or administrator has the responsibility for identifying and managing all the assets and debts as well as identifying beneficiaries and their contact information. Notice should be provided to all possible beneficiaries. Notice should also be provided to all possible debtors by publishing notice in the local law reporter as well as a local newspaper of general circulation. The executor or administrator should notify social security, employer(s), banks, insurance companies, retirement plans, etc. regarding the death of the decedent. Ideally within three months of the date of death, the executor or administrator should pay estimated taxes on the estate to get a discount. Taxes for the estate will depend on the size of the estate. A federal estate identification number should be obtained. The executor or administrator also needs to make sure the final individual tax return for the decedent is prepared and filed in addition to the inheritance tax return.

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Irrevocable Trusts

A trust is a mechanism wherein assets are set aside for certain beneficiaries and managed by a trustee subject to the terms of the document. Irrevocable trusts cannot subsequently be modified or terminated. Irrevocable trusts can help protect assets for parties who may need long-term care. Elderly persons needing long-term care often try to utilize Medicaid to assist with the expenses. Medicaid is a need-based health care program so there are limits on the amount of income and assets a party can have when seeking eligibility. An individual should plan ahead to make sure any countable assets and income are structured so as not to affect any future applications for Medicaid. Medicaid can look back five years from the date of an application so it is important to do any relevant estate planning well in advance.

An irrevocable trust must be established prior to the five-year look-back period to avoid any penalty. Additionally, the beneficiaries of the trust cannot be the party needing care or their spouse. The children can be named as beneficiaries with the hope that they would utilize the assets to assist their parents as needed. This does come with some risk as the trust cannot specifically limit the children in this manner so the children would need to be trustworthy. It can also be problematic if the party is subsequently released from care and now needs to support themselves again. You should consult with an experienced estate planning attorney regarding the best options for your circumstances.

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Wills for Heroes

Wills for Heroes is a program in conjunction with the Pennsylvania Bar Association that provides free wills, living wills, and powers of attorney to first responders and their spouses/significant others. Proof of military or public service affiliation is required. Appointments are required and can be made on the Pennsylvania Bar Association website. Each appointment is for one hour. At the conclusion of the appointment, each participant will have their final, notarized documents to take home with them. If a spouse or significant other is also participating, their appointment will be immediately following that of the first responder. The program is made possible through the time of volunteers including attorneys, reviewers and witnesses.

Montgomery County has a “Wills for Heroes” event coming up on Saturday, December 9, 2017.

The event is being held at Arcadia University. Their address is 450 S. Easton Road, Glenside, PA 19038. For more information and events at other locations throughout the state, you can visit www.pabar.org/wfh/. Our firm is also able to assist with estate planning documents at a reasonable cost including trusts, wills, living wills and powers of attorney. Please contact our office if you would like additional information or to set up an appointment.

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Accounting for an Estate

An accounting is one of the final steps in administering an estate. It is the final reconciliation of all assets in the estate, all expenses of the estate, and any interim distributions. A formal accounting is filed with the court. An informal accounting may be done as well and is presented to the beneficiaries as a summary of the administration of the estate. Pennsylvania and New Jersey accept the national standard form for filing of accounting. The accounting should list all the items that were received into the estate. This may be separated into categories such as real estate, cash accounts, personal property, bonds, mutual funds, etc.

The accounting will indicate if there have been any gains, losses or other disposition of property received into the estate since the estate was opened through the time of the accounting. Any distributions of the estate would be listed such as personal debts of the decedent paid from the estate, funeral expenses, administration expenses and legal fees, where applicable. Finally, the accounting will state the balance of the estate after disbursements. This is the amount available for distribution to the beneficiaries presuming the accounting is accepted. It is important for the executor or administrator to keep detailed records while handling the estate to make sure the final accounting can be accurately prepared.

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