Will & Estate Administration
Wills & Estate Administration Lawyer
It is important to have a Will. A Will sets forth where your assets should go upon your death and who you wish to serve as your executor/executrix. In a Will, you can set up a trust for, in most instances, minor beneficiaries. If you die without a Will, the state basically writes a Will for you and the courts will select the executor/executrix for your estate. Your assets will be passed to what are known as your intestate heirs. In some cases, this may not be your desire, wishing to distribute your assets to others and in different shares. This is why a Will is necessary. In Pennsylvania, if you die without a Will, assets in your name alone will be distributed as follows:
If decedent was survived by his/her spouse and had no surviving parents or children at the time of death, the spouse receives the entire estate.
If the decedent is survived by his/her spouse and one or both parents, the surviving spouse is entitled to the first $30,000 of the estate plus ½ of the remaining estate.
If the decedent is survived by his/her spouse and has children, all of whom are also the surviving spouse’s children, the surviving spouse receives the first $30,000 of the estate, plus ½ of the remaining balance. However, if the decedent was survived by his/her spouse and at least one of the decedent’s surviving children were not also the surviving spouse’s child, the surviving spouse is limited to ½ of the estate.
If the decedent is not survived by his/her spouse, the decedent’s entire estate goes to his/her children. If no children survive the decedent, the decedent’s parents share equally.
Intestate succession also provides for distribution to brothers, sisters, nieces and nephews, grandparents, uncles and aunts, depending upon who survives the decedent.
Once the testator (decedent) passes away, the executor/executrix will contact an attorney to aid in the administration of the estate. We are happy to provide this service for you. The administration of the estate consists of having the named executor/executrix sworn in by the Register of Wills and, following the rules that are established by the state for the administration of estates, leading to final distribution of assets.
The process includes preparation and filing of a state inheritance tax return, an inventory of assets, payment of all valid debts of the estate and distribution of the remaining assets according to the provisions set forth in the Will.
Inheritance taxes in the State of Pennsylvania vary based upon the relationship of the beneficiary to the decedent. For instance, a surviving spouse will pay no estate inheritance taxes but surviving children pay 4.5% inheritance taxes. A 5% reduction in the amount of the inheritance taxes is offered if payment is made within 3 months of the date of death.
Durable Power of Attorney
In those situations where a loved one is concerned about the ability to manage their own affairs, a Durable Power of Attorney is necessary.A Durable Power of Attorney will name the agent who will be charged with handling the affairs of the principal (maker of the Power of Attorney) as per the instructions set forth in the Power of Attorney. These are referred to as Durable Powers of Attorney because if they are properly prepared and executed, they will survive any mental incompetency on the part of the principal.
It is extremely important to act quickly to have a Power of Attorney prepared when the proposed principal is competent. If the principal becomes incompetent, it is then too late to prepare a Power of Attorney or give an agent permission to act on their behalf.
Once an incompetency occurs and there is no Power of Attorney, then a costly and lengthy proceeding called a Guardianship proceeding is necessary in order to protect the assets of the incompetent. Once we begin to age, it is extremely important to consult with us for purposes of preparation of a Durable Power of Attorney
Living Will
A Living Will is a document that sets forth the principal’s desires concerning what medical options to undertake when a doctor determines there is no chance of survival and they are declared braindead. The principal will name an agent in the document instructing the agent to carry out his/her wishes.
Our firm prepares Wills, Powers of Attorney and Living Wills. We will take all the time necessary to fully explain any of these matters.