Wills – Why do I need a will?

A Will is a legal document that helps you put your affairs in order when you die. Every adult should have a Will to outline his or her intentions regarding home, finances and other assets and possessions upon death. Your Will should identify who will handle your estate, how your assets will be divided and who will serve as guardian for your minor children. If you die without a Will, your money and possessions will be distributed according to a formula fixed by law, which means that your spouse may have to share assets with other family members not of your choosing. It also could create lengthy delays in the final distribution of assets. Additional dying without a Will could result in your minor children being placed in the care of a court-appointed guardian rather than with people you would have chosen to care for them.

What if I change my mind about the contents of my Will ?

In Pennsylvania, a Will is not filed (or probated) until after a person dies. As a results, you can change or update your Will at any time throughout your life, as the circumstances require.

Why shouldn't I do my own estate planning?

Estate planning involves judgment and skills acquired only through professional training and experience. Standardized Wills and trusts, such those produced using kits or computer software may not be drafted to comply with Pennsylvania laws. A Will or trust that is not properly drafted could result in your estate being distributed in a manner contrary to your wishes. Your family also may incur unnecessary legal costs should the Will or trust be challenged.

Probate

What is Probate?

The probate or estate administration process is when someone dies owning assets in his or her name alone and an estate must be started by a personal representative to handle to decendent's assets and settle his or her affairs. The personal representative is called an "Executor" if appointed in the decendent's Will. If the decedent has not designated an Executor in a Will, the court appoints an "Administrator," which can be an individual or corporation such as a bank or trust company. The Executor or Administrator is the only person or entity legally authorized to deal with the assets of the estate and handle matter of estate administration.

Why is there a probate process?

Probate is a process required by state law. The probate process in Pennsylvania is an efficient way to protect beneficiaries and creditors and to assure proper distribution of estate assets. Assets held in a trust are governed by the terms of the trust rather than the decendent's Will and pass outside the probate process. But, even if assets are no subject to probate, they may still be subject to all of the same death taxes as probate assets.

What are the costs of probate?

In Pennsylvania, the costs of probate include filing fees for opening the estate, advertising the estate, filing an inventory of estate assets and other papers to complete the administration process. Legal fees are paid to the attorney handling the estate work, which may include preparation of various death and income tax returns. Obtaining appropriate legal advice about the administration of the estate can help contain costs and taxes. Your attorney will advise whether services will be based on an hourly fee, flat rate, or on a percentage of the estate assets and what would work best for you.

Is Probate a lengthy process?

In Pennsylvania, probate need not and normally does not take long in comparison to other states. Executors or Administrators are accorded broad powers to accomplish the administration of estates in a quick manner. They are empowered to handle most details without seeking court approval for each and every transaction, such as the liquidation of assets and the paying of debts and expenses.

Trusts

What is a trust?

A trust is a legal entity to which your assets (bank accounts, securities, house, etc.,) can be transferred for management by a Trustee. Trusts can be created while you are living to manage your assets while you are alive or to help your heirs manage their inheritance after your death. There are a number of types of trusts, each with its own set of benefits. As such, trusts can be complicated, so it is important that you contact a lawyer to make sure that you understand all of the issues about trusts.

What are the common myths about "living trusts?"

If you think you do not need a will – You may think that a "Living Trust" is not right for you, however you should still have a Will. If some of your property is left out of the trust, or if any portion of the trust is invalid, a Will can ensure your assets are transferred consistent with your wishes. Will your estate cover attorney's fees? Transferring assets under a "Living Trust" will require accumulating assets and distributing.