Family Legal Center, LLC Family Legal Center, LLC2024-03-08T15:53:49Zhttps://www.familylegalcenter.com/feed/atom/WordPress/wp-content/uploads/sites/1403578/2019/12/cropped-fav-icon-32x32.pngOn Behalf of Family Legal Center, LLChttps://www.familylegalcenter.com/?p=509342024-02-24T21:01:59Z2024-02-24T21:01:59ZWhen probate is required in Pennsylvania
In Pennsylvania, probate is required if a person dies without naming beneficiaries for all their assets. The process doesn’t include jointly held assets or those with a right of survivorship. Instead, those assets go directly to the joint account owner.
Assets that require probate
Assets that must go through probate include real estate titled in the decedent's name alone and personal property like vehicles, jewelry and art. The executor is responsible for finding these assets and assessing the value.
Handling debts
The executor is also tasked with settling the decedent's outstanding debts. This involves notifying creditors of the decedent's passing, typically through a published notice in a local newspaper. The creditors then have a limited time to make a payment claim. Pennsylvania law dictates the order in which debts are to be paid if the estate doesn’t have sufficient funds to cover all liabilities.
Duties of the executor
The executor has to handle the legal proceedings, find beneficiaries, locate assets, manage all assets, pay debts and pass along assets to heirs. If there’s no estate plan, everything must be handled according to the intestate laws in Pennsylvania. The executor must act in the estate's best interest, exercising care and diligence in their duties and may need to provide the court with updates and final accounting before the estate can be closed.
Seeking legal guidance may help make this process progress more smoothly, so that the executor doesn’t make mistakes that could prolong probate or increase the estate’s expenses.]]>On Behalf of Family Legal Center, LLChttps://www.familylegalcenter.com/?p=509322024-01-09T14:46:31Z2024-01-09T14:46:31ZA successor trustee takes over
Frequently, people establish trusts long before they die and serve as the first trustee. They also name someone as their successor trustee to take over their responsibilities when they die or become incapacitated.
A successor trustee might be an individual or even multiple people chosen specifically by the testator. Other times, the successor trustee might be a professional fiduciary. That party has a duty to the trust and its beneficiaries. They should follow the instructions provided by the trustor to manage and distribute trust resources.
The assets used to fund a trust typically bypass the probate process, although there are exceptions to this rule. Sometimes, assets must pass through probate before they fund a trust, as would be the case if someone drafted a pour-over will. Ideally, the trustor left clear instructions about the distribution of assets and what should happen to any remaining resources when their selected beneficiaries die. Trust administration should largely follow a Pennsylvania trustor's instructions.
Families can take legal action if necessary
Sometimes people create trusts specifically because they do not want their families fighting over their resources when they die. Trusts are generally more difficult to challenge in probate court, but it is still possible to do so in some cases.
More frequently, family members need to take action against a trustee who violates trust instructions, breaches their fiduciary duty or fails to act in a timely manner. Removing and replacing a trustee can sometimes help preserve the assets in a trust. If a trustee embezzled or diminished the value of the trust through incompetent management, beneficiaries may sometimes have reason to take legal action against that trustee to recoup those losses.
Oftentimes, trust administration is an ongoing process that may last for years, possibly well after the final resolution of probate proceedings for someone's estate. Learning about what to expect during trust administration can help families uphold someone's legacy and protect the resources the grantor wanted them to inherit.]]>On Behalf of Family Legal Center, LLChttps://www.familylegalcenter.com/?p=509222023-11-29T01:48:49Z2023-11-29T01:48:49ZThere are 3 types of special needs trusts to consider
Special needs trusts can be endlessly customized to fit a beneficiary’s unique needs, but they come in three basic forms:
Self-settled or “first-party” special needs trusts: These are typically used when a beneficiary comes into a large amount of money on their own, often through a personal injury settlement. Typically, these trusts must have a “payback” provision where any assets that remain in the trust after the beneficiary’s death must be used to reimburse the government for Medicaid or other benefits that they received during their lifetime.
Third-party special needs trusts: These are established and funded by someone other than the beneficiary with special needs. Typically, these are created by the beneficiary’s parents, grandparents and other family members. Unlike a first-party trust, no payback provision is required, so the funds that remain can then be disbursed to other family members or even charities.
Pooled special needs trusts: In these arrangements, assets from several people with special needs are pooled together for investment purposes, although each beneficiary has a separate account. These are generally managed by nonprofit organizations and can be a huge benefit if the assets available to a beneficiary are fairly limited.
Special needs trusts are powerful tools when it comes to looking after a loved one with disabilities. They can allow them to lead more comfortable, happier lives without putting needed government benefits out of reach. Learning more about this option can help you see if it fits your family’s needs.]]>On Behalf of Family Legal Center, LLChttps://www.familylegalcenter.com/?p=509192023-11-10T01:47:55Z2023-11-10T01:47:55ZThe need to go to probate court
Even if someone has minimal property in their name, there will likely be some degree of probate oversight required after they die. It will be necessary to present any testamentary documents, like a will, to the probate courts, along with an inventory of their assets. The probate process often takes a year or longer to complete when people have significant assets and personal obligations.
What happens during probate?
After the beginning of probate proceedings, there are many steps that the personal representative of the estate must take. They will need to send notice to creditors who might have a claim against the estate. They will also typically need to publish notice so that unknown creditors can make a claim in probate court.
The personal representative will need to secure and sometimes relocate estate assets. They must use estate property to settle financial obligations, including the end-of-life care costs and personal debts. There could also potentially be taxes to pay. Although Pennsylvania does not collect an estate tax, it does levy an inheritance tax. If people leave resources for extended family members or friends, there may be taxes due on the property that they inherit.
The estate itself could be responsible for income taxes if the personal representative must sell assets. There will also be federal estate taxes that people have to pay if their estate is worth more than $12,920,000. Financial obligations, including creditor claims and taxes, typically take precedence over the inheritance rights of family members.
It is quite common for people to wait many months to receive their inheritance after a loved one dies. Occasionally, families end up embroiled in conflict because someone questions the validity of a will or the conduct of the person handling estate administration. Those who know what to expect after a loved one dies may have an easier time setting realistic expectations, seeking necessary legal guidance and remaining patient throughout the probate process.]]>On Behalf of Family Legal Center, LLChttps://www.familylegalcenter.com/?p=509172023-10-10T13:25:04Z2023-10-10T13:25:04ZCommunicating with the probate court
One of the first steps someone will have to take during estate administration is to notify the courts of the passing and to submit paperwork to begin the probate process. A personal representative will need to put together an inventory of assets and financial obligations and will need to locate testamentary paperwork to submit to the courts. They will then need to communicate with the courts as necessary given the size of the estate and the amount of probate court oversight required during its administration.
Maintaining and converting assets
Often, the personal representative of an estate will have to locate and secure the property of the decedent. They may need to change the locks at a home, put valuables into a safety deposit box or otherwise assume control over an individual's most valuable property. They will then have an obligation to maintain those resources during the estate administration process. They may have to do work around a home to keep it safe and habitable. They may need to make decisions about invested resources. They may even need to convert assets from one form to another, often by conducting an estate sale as instructed by the testator.
Fulfilling financial obligations
One of the biggest liabilities for the representative of an estate is that they could be responsible for taxes and debts that they don't pay as they should. They will have an obligation to notify creditors and then handle claims made in probate court. Sometimes, they may need to liquidate all of the estate's resources to pay off existing debts and will have very little to distribute to beneficiaries.
Distributing assets according to the will, if applicable
Testators usually provide clear instructions about who should inherit which assets from their estates. The representative of the estate has a responsibility to comply both with the testator's instructions and Pennsylvania state law when distributing the remaining assets in the estate after fulfilling someone's financial responsibilities.
Oftentimes, people who have never gone through probate before require guidance to manage the process without mistakes. Knowing the general responsibilities one must fulfill as a representative can make it easier for people to avoid potentially costly errors during estate administration.]]>On Behalf of Family Legal Center, LLChttps://www.familylegalcenter.com/?p=509142023-08-27T17:22:24Z2023-08-27T17:22:24Zsubject to probate requirements. Even those who have planned carefully often cannot ensure that their estates will completely bypass probate court.
An estate plan can take some of the probate-related pressure off of loved ones while they are grieving. How can an estate plan benefit those left behind when someone dies by assisting with probate matters?
The documents can provide clear guidance
Someone tasked with the administration of a loved one's estate will very likely worry about accurately upholding their wishes. There will be less concern about mismanaging assets or distributing them improperly when a testator has taken the time to earmark specific assets for individuals by name in writing. The decision to allocate specific assets to particular beneficiaries can also guide any liquidation that may need to occur to pay off creditors and fulfill tax obligations by allowing the person managing the estate to sell assets not intended for specific beneficiaries first.
Written instructions can reduce the risk of conflict
Probate proceedings often trigger damaging disputes among family members who expect to inherit certain property. One family member with a sense of entitlement could drag everyone through probate court by demanding more than their fair share of the estate. People may join together to challenge the decisions of the representative of the estate or to try to remove them from their position.
When families recognize an estate plan as a reflection of someone's last wishes, they may be less likely to fight with one another or to challenge the estate planning paperwork in probate court. Even if they try to challenge the estate plan, they are less likely to succeed when someone took the time to create a thorough estate plan.
From identifying assets to pay off someone's financial responsibilities to distributing their most cherished possessions among their closest family members, the steps involved in estate administration can lead to conflict and sometimes emotional turmoil. Those who engage in careful estate planning measures can help to reduce the stress and conflict often involved in Pennsylvania probate proceedings accordingly.
]]>On Behalf of Family Legal Center, LLChttps://www.familylegalcenter.com/?p=509122023-08-12T02:39:08Z2023-08-12T02:39:08ZNot all estates pass through probate court
People can create very thorough estate plans that leave little question about who should receive specific property from their estates. Provided that there are chosen beneficiaries for every asset solely in a decedent's name, their estate may not need to go through probate court at all. However, estates can still end up in probate court if someone challenges either the estate plan or the actions taken by the personal representative administering the estate.
Probate involves resolving responsibilities
The person tasked with estate administration accepts a lot of responsibility when they take on that role. They may have to attend court, communicate with creditors and distribute assets. They may also have some personal financial responsibility if they mismanage estate resources. Tax obligations and creditor claims take priority over beneficiary rights during estate administration, and those that inappropriately distribute assets without settling responsibilities first may end up personally accountable for those unpaid taxes and debts.
Probate can take more than a year
Beneficiaries sometimes expect to gain access to and control over inherited property as soon as someone dies. However, estate administration takes months to complete and may require more than a year if formal oversight from the probate courts is necessary. Between the timeline for notifying creditors and allowing them to make claims in court and the need to file income tax returns to pay taxes on the sale of assets at an estate sale, there can be numerous steps that occur well after someone's death. Often, the final distribution of assets will not take place until after someone settles all of the decedent's financial responsibilities.
It is important for a person tasked with estate administration to take the appropriate steps in a timely manner, and it is also necessary for beneficiaries to be patient and reasonable in their expectations. Learning more about what typically occurs during Pennsylvania probate proceedings can help people reduce anxiety and conflict related to estate administration when a loved one dies.]]>On Behalf of Family Legal Center, LLChttps://www.familylegalcenter.com/?p=509102023-07-10T11:11:05Z2023-07-10T11:11:05Zcontest or challenge an estate plan in probate court. They may believe that there are issues with the documents that undermine their legality or validity. These are the most common reasons for those who expect to inherit from an estate to challenge someone's wishes in probate court.
Concerns about fraud or undue influence
Sometimes, what family members worry about is the possibility that someone else may have unfairly influenced or even intentionally altered the estate planning documents. Claims of undue influence often arise when a testator decides to disinherit family members or significantly reduce individuals' inheritances for the benefit of a single person. Especially when that primary beneficiary played some kind of caregiving role, everyone else may suspect that they leveraged their authority and access to the testator for nefarious purposes.
Family members may also suspect fraud, such as forged signatures or altered documents. Such allegations could trigger a review of the paperwork and might result in the courts reverting to earlier versions or applying intestate succession laws to the estate.
Questions about testamentary capacity
To draft a valid and enforceable will, an individual needs to be a legal adult and of sound mind. Those with conditions like dementia may lack the legal capacity to create binding documents according to state law. Those with proof that someone had a disabling medical condition may be able to challenge a state planning paperwork generated after someone's development of that condition.
Violations of probate law
Sometimes, family members know that the documents reflect someone's wishes but they believe that those wishes violate state law. For example, individuals typically cannot choose to disinherit a spouse, as spouses have certain property rights under the law. When the terms included in an estate plan clearly violate Pennsylvania probate statutes, those disappointed with the decisions of a testator could ask the courts to intervene based on those inappropriate or illegal terms.
It can be difficult to reconcile one's dissatisfaction with an estate plan with the desire to respect a loved one's wishes. Learning more about why others pursue will contests might help someone feel more confident about taking similar action on their own behalf in the event that legal action is warranted.]]>On Behalf of Family Legal Center, LLChttps://www.familylegalcenter.com/?p=509072023-06-17T00:21:47Z2023-06-17T00:21:47ZThe basics of probate
Probate refers to the court-supervised process of administering an individual's estate after their death occurs. When a person passes away, their assets, debts and legal matters need to be addressed and resolved. Probate helps to ensure that these matters are properly handled, allowing for the smooth transfer of assets to rightful beneficiaries and the settlement of outstanding financial obligations.
The duration of the probate process can vary significantly depending on numerous factors, such as:
The complexity of the estate
The presence of disputes or challenges
The efficiency of the legal proceedings
While it is challenging to provide an exact timeframe, probate typically takes several months to a year to conclude. In some complex cases, probate can extend beyond a year. It's important to note that local laws and court schedules can also influence the length of probate.
The probate process
The probate process begins with filing a petition in the appropriate court to request the court's approval to initiate probate proceedings. The court reviews the petition and, if deemed valid, appoints or approves an executor or personal representative to oversee estate administration.
The executor is responsible for inventorying the deceased person's assets and obtaining professional appraisals when necessary. Additionally, the executor must file the deceased person's final income tax returns and settle any estate tax obligations, if applicable.
Once an executor is appointed, they must notify all known creditors and interested parties about the probate proceedings. This step allows creditors to come forward with any outstanding claims against the estate. It also helps ensure that beneficiaries and interested parties are aware of the ongoing probate process.
Once all debts, taxes and expenses have been settled, the remaining assets can be distributed to the beneficiaries named in the will or determined by state law if there is no will.
While the duration of probate can be unpredictable, understanding the basic steps and potential challenges – in addition to seeking legal guidance – can help individuals navigate the process more effectively.]]>On Behalf of Family Legal Center, LLChttps://www.familylegalcenter.com/?p=509052023-05-15T16:13:56Z2023-05-15T16:13:56ZThey can contest the will
In circumstances where people believe that the estate planning documents are invalid, they can potentially contest the will in probate court. When people suspect fraud or undue influence, that could be a reason to challenge a will. So could a belief that someone had already lost their testamentary capacity when they drafted documents or made updates later in life. Finally, terms in a will that violate state law could be grounds to contest testamentary documents in probate court.
They can challenge the executor
In a scenario where someone believes that the estate plan itself is an accurate reflection of a testator's wishes but the administration process seems to deviate from those plans, family members and beneficiaries could ask the courts to reprimand or even remove the executor of the estate.
Someone who has violated state law, breached their fiduciary duty to beneficiaries or acted in violation of the estate plan could face challenges in probate court. Judges could either remove someone from their role and replace them with someone else or instruct them to cease acting in a certain manner. Probate court proceedings can also prevent a large and questionable transfer, like the sale of a business or real property during estate administration.
Seeking legal guidance and taking thoughtful steps forward can help someone speak up effectively if they don't believe that a particular distribution of assets approach aligns with someone's actual wishes after their death.]]>