Estate Planning in Pennsylvania

While the prospect of planning your estate may feel uncomfortable, it’s an important process to undertake. Estate planning isn’t just for the rich and famous—anyone with personal property can plan what happens to it after he or she dies. It’s especially important to consider estate planning when you have minor children or other dependents that rely on your care and provision.

What is estate planning?

Estate planning is the process of determining where your assets will go after you’ve passed. It can also include provisions for the care you’d like to receive should you become incapacitated. It answers questions like “Who will receive the inheritance?” “What will be included in that inheritance?” and “How will the inheritance be received?” You can appoint an executor or executrix, a legal guardian for any children under the age of 18, and a medical Power of Attorney (POA) to operate on your behalf. While estate planning is not required, it’s a good idea to make plans so that your loved ones are cared for and your estate isn’t eaten up by court fees or inheritance taxes.

Terms to Know

Assets: property or items owned by an individual or entity, including land, houses, cars, jewelry, furniture, bank accounts, investments, intellectual property, and more

Beneficiary: the person or entity set to receive money or other assets from a trust or will

Estate: the total of someone’s assets and property, along with any debts or obligations

Executor/Executrix: the person charged with administering the estate of a deceased person

Residuary estate: any assets that remain after debts and taxes have been paid and specified gifts have been distributed

Intestate: dying without a will

Next-of-kin: someone’s closest living relative; may include a spouse, child, or other close blood relative

Probate: the process of filing a loved one’s will with the Court, gathering assets, paying liabilities, filing taxes, and closing out the estate

Revocable: something that is able to be changed after it’s been established, like in the case of a Revocable Living Trust

Irrevocable: something that is unable to be changed after it’s been established, like in the case of an Irrevocable Living Trust

Wills

A will is a document that provides instructions for what happens with an individual’s estate after their death. Most people are familiar with the idea of leaving something behind in their will (bequeathing something), but wills are for more than just distributing property. A will can also designate things like:

Who will administrate your estate (your executor)
A guardian for any minor children you may have
The continued management of certain property
Protection from divorces and creditors
Provisions for friends and relatives not included under Pennsylvania’s Intestacy laws
Provisions for charities

Leaving a will behind can help your loved ones after you pass. Probate can be an expensive and complicated process for your loved ones, especially when they are grieving. By having a will and an estate plan in place, you can help to simplify the probate process and make things easier for your beneficiaries.

Once you have drafted a will and are ready to execute it, you will need to sign the will in front of witnesses. Although it is not required, having your will notarized can help during probate. You can make amendments (codicils) to your will after executing it, but you will likely have to sign and notarize it again to keep it consistent with the rest of your will. Amendments can sometimes add complications later on, so a revocable will may be better than an irrevocable one.

It’s important to note that not all parts of your estate will be dictated by your will. Some account titles, real property, or designations on things like IRAs and life insurance policies control their own distribution.

Intestacy—What happens if I die without a will?

If you die without leaving a will behind, your estate will be handled by Pennsylvania’s intestacy laws. In most cases, the majority of your estate will be given to your spouse. If you are not married or do not have children, it will typically pass to the next-of-kin. Below is a flowchart of Pennsylvania’s intestacy order.

This is a graphic of the Pennsylvania rules of intestacy in the form of a flowchart. If you are married and your entire estate is worth less than $30k, it will go to your spouse. If you have children and it's worth more than $30k, it will divide between to the children and the spouse. If you are not married and have children, your estate will go to your children. If you do not have children, it will go to your next-of-kin (parents, then brothers or sisters, nieces or nephews, then half-brothers or half-sisters and their children, then grandparents, then aunts or uncles and their children). If you have no next-of-kin, it will go to the state.

Important items to note:

Pennsylvania no longer recognizes Common Law Marriage.
Even if you do not have any assets now, if you were to get in an accident and recover any money, someone will need to distribute it.
You decide in a will who will be in charge of your estate—the State does not decide this.
If you die without a will, your spouse does not necessarily get your whole estate.
Any jointly held property will go to the other party.
An unmarried partner is not entitled to any of your estate under the rules of Intestacy.

The attorneys at Cornerstone Law Firm have experience in estate planning, drafting wills, setting up POAs, and more. Call us today for help with your estate!

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Trusts

A trust is another estate planning tool that can help with managing your assets and providing for your loved ones after you pass away. Trusts are far more flexible in what they allow and they are not subject to the probate process.

When you establish a trust, you will appoint what’s known as a trustee. A trustee can either be an individual (like a family member or a professional advisor) or an entity (like a bank or trust company). The trustee will be responsible for managing the assets placed in the trust, investing them, and making distributions to the beneficiaries. The trustee is bound by the terms of the trust and must comply with any applicable laws or regulations. The trustee can also be a beneficiary of the trust he or she is managing.

Trusts can be either revocable or irrevocable, and you can set them up so that you maintain control over the assets until the time of your death. Trusts set up while you are still alive are typically living trusts or inter vivos trusts. A living trust will also go into effect if you become incapacitated and are unable to make medical or financial decisions on your own.

Power of Attorney

A Power of Attorney (POA) is another important estate planning document that can help in a variety of situations. While it does not turn your appointed agent into an actual attorney, it does grant them several permissions to appear on your behalf. A POA also grants your agent the ability to make decisions regarding your property and possessions.

Unlike other elements of estate planning, a POA is not something that goes into effect after you’ve passed. A POA is only valid while you are still living.

POAs can be helpful in lots of different cases, including:

Care of elderly people
Care of incapacitated or infirm people
Care of people with special needs
Financial access for spouses
Financial access for parents of college students
Appointing a business successor
Account access for dependents and children
Appointing an agent for guardianship
And more

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Estate Planning for Blended Families

Having a blended family can be a beautiful thing, but it can also be complicated depending on the different relationships involved. Blended families often include second marriages, stepchildren, half-siblings, or extended family members living in the same home. While the basic tenets of estate planning will look the same for blended families, there can be more to consider as there tends to be more people involved.

If you have been divorced and choose to remarry, it’s important to update your will and any other estate planning documents to reflect those changes. While the ideal scenario involves all beneficiaries receiving their inheritance in an equitable manner, reality is often more complicated than that. To ensure that your children, stepchildren, and any other relatives are all taken care of, and that your former spouse does not take advantage of outdated documents, take time to review your estate plan.

Probate, which is a complicated process for even the best of scenarios, can become even more taxing for blended families. If your will is no longer valid at the time of your death, or if you haven’t written one, your family may end up disputing assets in court for years to come. You can help your family avoid future distress by setting up trusts, writing a will, and updating other necessary documents. You may also want to consider appointing a professional fiduciary to handle trusts, or other financial decisions, as they may be able to distribute your assets more easily than a family member.

Estate Planning for Pets

Dogs, cats, and other pets can be great sources of comfort. Sometimes they even feel like they’re part of the family. The law, however, does not recognize them as such. In Pennsylvania, pets are considered a type of property. You cannot bequeath assets to your pet after you pass away because property cannot own other property. You can, however, form a plan to provide for your pet.

Pennsylvania allows residents to set up trusts specifically for the care of pets. In this trust, you will need to appoint a trusted individual or organization to take custody of your pet. You can also allocate resources for the care of that pet. This may mean including money for pet food, veterinary bills, and other costs incurred through pet ownership. Setting up a trust will legally obligate the appointed caregiver to follow your instructions for care, and it will hold that caregiver accountable for any money in the trust. It can also allow you to write a plan for care in the event that you become incapacitated.

While trusts are a good option for some, not everyone needs to go that route. If you trust the caregiver enough to provide for your pet and use your money responsibly, you can make an informal agreement. You can also name the caregiver in your will and suggest any gifted assets be used for the pet’s care. If you don’t personally know anyone who would be willing to care for your pet, there are services that provide care for pets upon owners’ deaths.

You have options in deciding how your pet will receive care. If you are interested in setting up a pet trust, or including a provision in your will, call the attorneys at Cornerstone Law Firm. We can inform you of your options and help you execute the necessary documentation to have your wishes carried out.

Estate Planning FAQs

Q: What information do I need to plan my estate?

A: You will likely need as many details as you can get to ensure your estate plan is as comprehensive as possible. This includes information about:

your finances
your retirement benefits
your debts
your valuable personal property
jointly owned property
relevant documents (marriage certificates, divorce decrees, pre-existing wills or trusts, property deeds, and more)

Q: Is estate planning tax deductible?

A: Generally, no. There are, however, some exceptions that may qualify you for certain tax deductions.

Q: How often should I update my estate plan?

A: You should review your estate plan every 3 to 5 years to see if it needs to be updated. You should also update it after any major events like marriages, divorces, births, deaths, or receiving an inheritance from someone.

Q: Are wills public record?

A: Wills can become public record after they have been filed with the Court. This will only take place once you have passed away. Some information may be redacted to protect both you and your beneficiaries. Trusts do not become public record.

Q: Do I need a lawyer to make a will?

A: Technically no, you do not need a lawyer to make a will. Estate planning can, however, be quite complex depending on the size of your estate, the relationships between your beneficiaries, and a number of other factors. Hiring an experienced estate planning attorney can help simplify the estate planning process for you now and the probate process for your loved ones later. Lawyers can help to ensure that:

your will and any trusts meet legal requirements
you have covered all of the areas you would like to cover (naming beneficiaries, providing for charities or pets, etc.)
your inheritance taxes are minimized
your assets are distributed according to your final wishes

Estate planning is an important process. Don’t let legal jargon and complicated documents overwhelm you. Contact the estate planning attorneys at Cornerstone Law Firm for help!

Call us today! 610-926-7875

Estate Planning in Pennsylvania

What is estate planning?

Terms to Know

Wills

Intestacy—What happens if I die without a will?

Important items to note:

The attorneys at Cornerstone Law Firm have experience in estate planning, drafting wills, setting up POAs, and more. Call us today for help with your estate!

Trusts

Power of Attorney

Estate Planning for Blended Families

Estate Planning for Pets

Estate Planning FAQs

Estate planning is an important process. Don’t let legal jargon and complicated documents overwhelm you. Contact the estate planning attorneys at Cornerstone Law Firm for help!

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