412-209-3200
The passing of a loved one is never an easy time. Not only are you navigating the emotions from the loss, but as a family member or close friend, you may be the person responsible for administering their Estate.
When individuals or institutions think about estate administration, they often associate it with the Probate process. Specifically, financial institutions frequently advise individuals that a Short Certificate, a document obtained through Probate, is needed. However, this is not always the case. While Probate is the most common method for administering an Estate, Probate can sometimes be avoided. Factors such as the value of an estate or the title to assets can determine whether formal Probate is needed. However, once an Estate has been opened for Probate, there is no way to reverse this process. You must proceed with completing the entire Probate process, which can sometimes be lengthy and costly. Therefore, it is crucial to assess the nature of the Estate before moving forward with any administration method.
The Probate Process. The Probate process is initiated when a representative, either an Administrator or Executor, is appointed. This individual is then responsible for completing all statutory requirements related to the Estate’s administration, which includes managing and transferring all assets, settling any debts, and ensuring the proper distribution of the Estate’s property. However, at Anderson Law Firm, our Estate attorneys work closely with the Administrator or Executor of an Estate to alleviate these burdens by providing legal expertise and guidance throughout the entire process.
Small Estates. When an Estate is composed of simple assets totaling under $50,000, Probate may not be necessary. Instead, a Small Estate Petition can be filed, offering a simpler process for administering smaller Estates. By avoiding Probate, many of the statutory requirements that often create the lengthy, costly process of formal Probate administration are eliminated. Our Estate attorneys will work closely with the presumed Estate representative, family member, or close friend to prepare the Small Estate Petition, which consists of all assets and debts of the decedent. Once the Small Estate Petition is prepared and approved by the Court, it is then submitted to the institutions handling such assets and debts for proper distribution of the decedent’s assets.
Alternative Disposition Methods. In limited circumstances, certain assets can be distributed without proceeding with Probate or the Small Estate Petition. Our Estate attorneys can work with the decedent’s family members to determine whether any alternative methods of asset distribution are applicable and assist in receiving such funds.
Inheritance Tax Return. An inheritance tax return must be filed for any individual who passes away owning property in Pennsylvania. Even when full estate administration is not required, (i.e., the individual who passed away was not a resident of Pennsylvania or there were no Probate assets) an inheritance tax return must still be filed. Our Estate attorneys will conduct a thorough review of the Estate’s assets and debts to prepare the inheritance tax return, ensuring that all eligible deductions are applied to reduce the inheritance tax.
Who to Hire. Some people have the misconception that they must seek out the same lawyer who originally drafted the will. This is not true. The Executor or family members handling an estate can seek counsel from any Pennsylvania-licensed attorney of their choosing.
Why Hire Us? Our Estate attorneys at Anderson Law Firm are committed to administering estates in the most efficient and cost-effective manner. We will take the time to thoroughly discuss all available administration options for your situation to ensure you proceed with the appropriate method.
Frequently Asked Questions
Trust, estate, and tax laws are constantly changing. We counsel clients with up-to-date advice to properly plan their estates, protect the assets they build over a lifetime, and ensure their families are protected.
Call us now at 412-209-3200 or contact us to schedule a free, no-obligation conference to assess your needs.
What is the Estate Administration Cost Structure?
The cost for administering an estate is determined by the administration method. Our cost structure consists of either hourly rates, percentage-based rates, or simple flat fees.
What happens to my estate if I do not have a will?
- Without a will, the disposition of your estate is determined by the structure of your family.
- For example, if you are married and have no children, but your parents are still alive, your spouse will receive the first $30,000 of your estate. The remaining amount of your estate will be equally divided between your spouse and your parents.
- Another example would be if you were married with children, all of whom you shared with your current spouse. Your spouse would again be entitled to receive the first $30,000 of your estate. The remaining amount of your estate would now be equally divided amongst your spouse and your children.
- Although the laws of the state assume disposition based on relationship, this could create problematic outcomes. For example, if your estate fell under the first example, this may create problems for your elderly parents trying to apply for medical assistance. If your estate fell under the second example, this may create issues if your children are still minors, as minors are not able to directly inherit.
- This is why it is important to ensure you have proper estate plans in place, which our Estate Planning attorneys at Anderson Law Firm are able to assist you with.
What if my kids are minors or if my parents left money to my own kids?
With no Testamentary Trust in place, the Executor will be forced to go through trust proceedings to either set up a restricted account or a Trust that will hold the money for your children. By setting up a simple Testamentary Trust, these court proceedings could have been fully avoidable and the funds could have been accessible to benefit the children.
Do I have to pay the Inheritance Tax or “Death Tax” bill from the Department of Revenue?
Generally speaking, Yes. However, oftentimes there are write-offs or deductions which may be taken to minimize the tax consequences.
Pennsylvania is one of six states with an Inheritance Tax or death tax on inherited assets. Inheritance Tax Returns are necessary even if there is no probate estate. Inherited IRAs, Joint assets, and other assets with beneficiary listings are taxed in most circumstances! Generally, Life Insurance is the only asset for which there is no tax due payable to Pennsylvania.
Will a trust help me avoid probate?
Yes! Generally speaking the creation and funding of trusts are one of the best ways to avoid the court costs and time it takes to probate an estate.
When should I consider setting up a trust?
There are a number of situations in which a trust would be the best way to transfer wealth to your beneficiaries. If your loved one has special needs, issues with substance abuse or addiction, or is irresponsible with money, a trust is an excellent way to provide for your loved one while still ensuring that the funds are protected for your loved one’s benefit.
I want to leave my house to my children without going through probate. How can a trust help achieve this?
A revocable trust is an excellent way to transfer a house to a child without going through probate and without having to pay a realty transfer tax. The client can establish the revocable trust and transfer his or her residence into the trust prior to his or her death. By naming your child as a beneficiary of the revocable trust, your child will receive the house free of probate.
I have property in another state. Can a revocable trust help with probate in another state?
Yes! By placing property you hold in another state into your revocable trust, your loved ones will not need to open probate in the state in which the property is located.
I have a special-needs daughter who is over 65, and I want to leave her money in my will. Can I do that?
Yes! Our office can include provisions for a third party special needs trust in your estate planning documents to make sure that your daughter’s share is held in a special needs trust and she maintains her government benefits.
