Wealth Preservation, Trusts and Estates

Picking an executor is a critical part of any sophisticated or even simple and effective estate plan. Having the wrong executor or someone that does not fully understand your wishes can wreak havoc on your estate’s administration and more importantly on the execution of your wishes. In fact, other than the decision to create and execute an estate plan; executor selection may be one of the most important estate planning decisions you will make. Consider the Pennsylvania case below.

In a recent 2011 Pennsylvania case a co-executor removed decedent’s safe and financial records two days before the death and failed to return or disclose this to the beneficiaries or list the items on the inheritance tax return. The Orphans Court removed and surcharged the co- executor for attorney fees and costs of the estate. Jonik Est. (O.C. Div. Phila.), 1 Fiduc. Rep. 3d 296.

Would your executor do this to you?

Do you have the right executor?

How do you pick the right person or institution to do this job?

Click here to read more about how to select the right executor for your estate plan.

Being an executor is a tough job. The executor must find your legal and financial documents, gather your assets, pay off all your debts, keep the beneficiaries informed, make financial decisions, and implement your wishes as if you were there.

Many times we see executors who are overwhelmed by the amount of work required by law to be an executor in Pennsylvania.  For that reason, it is important to pick someone who can handle it and even more importantly can get the job done the way you would want your estate administered.

Furthermore we often see even dedicated executors make the same simple but dangerous mistakes. To educate yourself and or your executors click below to get a free copy of our resource for executors.

The Ten Most Common Mistakes Executors Make… and how to avoid them

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For Executors and Maybe Trustees

Losing a loved one is hard. But if you’re an executor or trustee hopefully this step-by-step guide to Estate Administration will ease the burden of knowing the business of what to do when a close family member or friend dies.

Whether or not your loved one has a will or trust their estate may be still have to go through the probate process in Pennsylvania.

Each estate administration varies in complexity and you may have more to do than these basic steps but this is a great starting point to get you familiar with what needs to happen after the death of a loved one.

1.      The Will- Find the Will, any living trusts, any amendments to the will or trust, and any previous wills.  It may be necessary to ask a sick or dying loved one where the Will is so that you do not have to find it when they are gone. If there is no will the state “intestate law,” will govern who acts as the administrator, and who inherits.

2.      Contact an Attorney- Call an estate planning and estate administration attorney to help you navigate through the process.  Even if there is No probate required there are many rules about what gets paid and what still gets taxed. You may have many meetings with the attorney so make sure you are comfortable with the attorney and their location. www.avvo.com is a great website where you can search for local, competent, and highly knowledgeable lawyers.

3.      Gather Documents And Information- When you meet with the lawyer bring the Will and any amendments to it or previous wills. Also bring income tax returns (from the past few years if possible), bank account statements, retirement accounts, and any bills due. Also make a list of your loved ones valuables like real estate, CD’s, bank and investment accounts and insurance and annuities.

4.      The Probate Process- Your attorney will determine what assets must be probated. Things like jointly held assets, assets in a trust, IRA’s, annuities or life insurance and the beneficiaries named do not go through probate and are automatically distributed.

*Make sure the attorney tells you an estimate of the Pennsylvania inheritance tax and federal estate tax that may be due even on non-probate assets.

5.      Executor Duties- The executor is named in the Will. The executor will need to go with the attorney to the Register of Wills office, one is located in every county, and the original will and death certificate must be presented and any county fees must be paid depending on the size of the estate and other considerations. The executor has many duties and some have deadlines so make sure you get legal guidance to make sure the job is getting done.

6.      Advertising the Estate- The estate must be advertised for several weeks in two local newspapers. The reason this must be done is so that any creditor is notified and can make a claim on the estate. Also notices are sent out to all possible beneficiaries of the estate.

7.      Inheritance Tax Discount- The estate should consider paying the Pennsylvania inheritance tax or at least an estimate within three months to get a 5% discount. The full amount of the Pennsylvania Inheritance tax and the federal estate tax (if you owe this) is due within 9 months of your loved ones death. It is not always desirable to pay this so make sure to review this issue with your adviser to avoid paying tax on funds you may never receive.

8.      Estate Distribution- The executor with the attorney’s help will divide the assets and pay bills due on the estate. This must be done before you can distribute and close the estate. At the end of the estate you should protect yourself from liability by getting a court order OR a family settlement agreement.

* Family Settlement Agreements (FSA’s) cannot be drafted by anyone but a lawyer. However, this is one of the only ways to avoid personal liability other than through the probate court.

This is simply a beginner step-by step guide to Estate Administration, the process that follows after a person passes. There are many more detailed steps.

For more information click here to read our entire report  The Ten Most Common Mistakes Executors Make…and How To Avoid Them.

This may seem like a lot for someone, the executor, to do while trying to cope with the loss of family or a loved one and often times it can be very overwhelming. If you have been named an executor find out exactly what that entails to make sure you have the time and energy to follow the required steps involved.

A law firm is an excellent source of knowledge. Try to find one that offers  consultations and  fixed or hourly fees to make sure you understand the legal and financial and liability ramifications of being an executor and or what all is entailed in an estate administration so you can prepare yourself and or family and loved ones so there is less time to struggle with these steps and more time to grieve for the loss of your family or loved one.

We hope this Estate Administration 101 Guide has helped you understand your role as executor or trustee and or understand what happens after a loved one dies.

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Although there there will likely be no federal estate tax in 2010, the beneficial “step-up” in capital gains tax basis on property owned by a decedent at death, is now limited to $1.3 million. The limited “step-up” may be allocated among the decedent’s assets by the Executor or Administrator unless otherwise directed in a decedent’s last will. As a result of the limited basis step-up, the heirs of a decedent dying in 2010 might owe capital gain taxes that they would not have previously owed. This process will be very challenging when having to sift through historical splits, mergers and dividend reinvestment. Read this article to learn more about the accounting nightmare that will result from these tax law changes. In reality, this may leave many heirs of estates that fall between $1.3 million through $3.5 million in 2010 paying more in capital gain taxes than would have been owed in estate taxes.

Please contact Douglas L. Kaune, Esq, at dkaune@utbf.com or 610 933 8069 to discuss your particular case and to determine how the federal estate tax laws of 2010 impact your planning.

Unruh, Turner, Burke & Frees, P.C. is a full service Pennsylvania (PA) law firm with offices in Phoenixville, Malvern and West Chester and serving surrounding areas such as Collegeville, Exton, Media, Norristown, Devon, Wayne, Royersford and Paoli.

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Pennsylvania, through its Inheritance Tax, is one of many states that applies a death tax upon the estates of its deceased residents and real property owners. I think it is interesting and important to know about the other state death tax systems. Check out this site for a review of how Pennsylvania and all other estates apply their inheritance tax systems. Keep in mind that real estate owned in a particular state is taxed in accordance with that state’s laws regardless of where the deceased owner resided at death. We frequently represent the estates of deceased Pennsylvania residents who own valuable real estate in other states such as New Jersey, Delaware and New York. Knowing the tax laws of other states can help us incorporate the proper estate planning not only for Pennsylvania inheritance tax concerns, but also other laws that might apply to our clients.

Please feel free to contact Douglas L. Kaune, Esq. any time at 610-933-8069 or dkaune@utbf.com to discuss your particular Estate issue to determine the appropriate planning for you and your family.
Wills * Trusts * Elder Law * Probate * Asset Protection * Power of Attorney * Estate Planning
Unruh, Turner, Burke & Frees, P.C. is a full service law firm with Malvern, Phoenixville, West Chester Offices serving Chester County, Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Pennsylvania (PA).

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IN RE: ALICE G. NOVOSIELSKI: PA Supreme Court Rules On Joint Account Case MARCH 25, 2010. The Supreme Court of Pennsylvania overturns the Superior Court on appeal. I think the Supreme Court got this one right. You can read the entire Novosielski Case here, but the general ruling is that accounts made joint by a decedent AFTER the signing of his or her Last Will and Testament will still transfer to the surviving joint account holder. The Superior Court’s earlier ruling that accounts made joint after a will was signed, and in contradiction of the terms of the will, could have been rendered invalid and the joint assets transferred according to the decedent’s will. The earlier ruling would have necessitated revisions of wills and close scrutiny of the timing of joint account creation. It also jeopardized the sanctity of the joint account contract between a financial institution and its customers. We, as PA Estate Planning and Probate Attorneys and PA Residents can breathe a sigh of relief.

Please feel free to contact Douglas L. Kaune, Esq. any time at 610-933-8069 or dkaune@utbf.com to discuss the preparation of wills, powers of attorney, trusts and living wills.

Wills * Trusts * Elder Law * Probate * Asset Protection * Power of Attorney * Estate Planning
Unruh, Turner, Burke & Frees, P.C. is a full service firm with Malvern, Phoenixville, West Chester Offices also serving Berwyn, Wayne, Newtown Square, Paoli, Exton, Downingtown, Devon, Chester County, Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Pennsylvania (PA).

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Executor and Attorney Fees and commisions For Estate Administrations and Probate in Pennsylvania (PA).  This is often a mysterious topic for many who find themselves involved in an estate administration as executor or beneficiary in PA.   There is not a perfect answer as to what the executor , attorney and probate fees will be in each case, but click here to see the statutory references to Pennsylvania estate administration fees, PA executor commisions, attorney fees and Johnson Estate Fee Guidelines.   Also check this guide by David M. Frees, III Esquire for some helpful information relating to the estate administration fee issues.   The fee structure might vary generally depending on the estate value and complexity.  It is a good practice to establish a flat fee or flat fee range based loosely on the PA estate fee guidelines, but modified by the other contributing factors in the particular estate administration case.  Please feel free to contact us any time at 610-933-8069 or dkaune@utbf.com to discuss your particular estate/probate case to determine the appropriate fee structure for an attorney or executor.
Wills * Trusts * Elder Law * Probate * Asset Protection * Power of Attorney * Estate Planning
Malvern, Phoenixville, West Chester Offices Chester County Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Law Practice Locations.

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By David Frees Law Office: Phoenixville, Malvern and West Chester

You think retroactive taxation for estate tax purposes is a problem?

Well, according to Russia, we have bigger problems…. click here to read more about estate planning and the pending fall of the United States governmentt.

If you need more information about planning your estate or acting as a trustee or executor, we have many free resources. Appointments are also available with David Frees by contacting Beth MacNulty, Donna Brownback, or Denise Fox at 610-933-8069.

Attorney David Frees can also be reached by email at dfrees@utbf.com

Mention this blog to get a free report at the time of your appointment or to request that a free report on executors or estate planning be sent to you. You can also request these reports on line at www.PaEstatePlanners.com

David Frees has attained AVVO’s highest possible lawyer rating.

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Do You have a growing wine collection?
Has your wine collection become a valuable asset of your estate?
Are you interested in collecting wines?
Do you want to pass on the value of the collection or the collection itself through a will or trust?
Do you mistakenly think that your homeowner’s coverage insures your collection?

If you answered yes to any of the above questions, then be sure to click here to read this brief new article on insuring, protecting and passing on a wine collection at any stage.

David M. Frees III

For an a no obligation and no cost consultation about completing or updating your estate plan to deal with any valuable collections or assets please mention this article when you call Ms. Brownback or Ms. Fox or email dfrees@utbf.com. Law office 610-933-8069

Offices are conveniently located in Phoenixville, Malvern and West Chester Pennsylvania

Thanks also to Doug MacGray for allowing us to publish a portion of his interview and newsletter. Doug can be reached through www.compass-ionadvisors.com

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Everyone wants to avoid probate.

The probate system is viewed as slow, expensive, and too public.

But sometimes, if you’re an executor, you really want and need the probate system and the orphan’s Court judge.

The truth is, that most of the estates where the executor hires us to do the administration, and to keep them out of trouble, we are also able to keep them out of the probate system and the probate court.

We often settle estates, where the beneficiaries are cooperative by using a family settlement agreement. This saves the family and the heirs time, and money and at the same time protects the executor from being sued later.

But, there are five times when the executor to be fully protected and to avoid liability needs AND WANTS the Probate Court.

When should you use the probate court? When does it actually make sense to go through the probate process for your own protection? Read this article on the Five Times When You Really Want To Probate A Will. Oh, by the way, for reasons that I cannot fully explain, there are some reports appearing at the top of the page. If you’re interested in when to avoid probate and when to actually use probate, just scroll down to the article. It is worth it.

David M. Frees III
610-933-8069

Call Donna or Denise for an appointment or Telephone consultation with David M. Frees III

www.PaEstatePlanners.com

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Who Will Initiate Probate: Probate is the court adjudicated process that an Executor or Administrator follows in the estate of someone who dies in Pennsylvania (PA). The Executor is a person or trust company named in a will. The Administrator is a person or trust company appointed by the Court where no will exists, Where there is a will that does not name an Executor or where the will names an Executor(s) who refuses or fails to act. Generally, the intestate beneficiaries or their appointees will have the first option to act as Administrator if one of the above circumstances were to arise.

What You Need To Start Probate: The basic requirements are the original will where one exists, original death certificate, Petition for Probate and Estate Information Sheet often prepared by the Attorney/Lawyer for the estate, check for probate fees paid to the Register of Wills, renunciations if necessary and witness affidavits if the will was not notarized.

Where Probate Takes Place: The Executor is appointed at the Register of Wills Office in the county in Pennsylvania where the decedent resided at death. Locally, one of the following courthouses would likely have jurisdiction: Chester County: West Chester, Montgomery County: Norristown, Delaware County: Media, Philadelphia County: Philadelphia, Bucks County: Doylestown, Berks County: Reading.

Once the Executor/Administrator Has Been Appointed: The remainder of the estate administration and probate requirements for PA will have to be followed. Among the requirements will be notice to the beneficiaries, periodic status reports to the court, gathering information for preparation and filing the PA inheritance tax return and federal estatate tax return (where necessary). Obviously each estate is different and the work necessary for completing the estate administration will vary from case to case. We will provide you with follow up postings about the probate process and ways to avoid potential problems and issues once you are appointed as the Executor/Administrator.

by Douglas L. Kaune, Esquire
Estate Planning & Administration, Wills, Trusts, Asset Protection, Elder Law
Unruh, Turner, Burke & Frees, P.C.
Phoenixville, Malvern, West Chester PA
Pennsylvania Attorney
dkaune@utbf.com PH: 610-933-8069

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