Wealth Preservation, Trusts and Estates

Remember to Review The Tax Allocation Clause In Your Will or Trust. by Douglas L. Kaune, Esquire. Most people do not realize that they can choose which beneficiaries will be responsible for paying the PA inheritance tax and federal estate tax on their taxable estate. Many wills are written automatically and sometimes incorrectly to say that the taxes are to be paid from the residue of the probate estate. Therefore, you could unexpectedly lay the entire tax burden on the shoulders of the people who are beneficiares under the will where there are beneficiaries of specific assets in the will, joint accounts or beneficiaries named on an IRA or 401K or stock account outside of the probate estate. The PA inheritance and federal estate taxes could be tens or hundreds of thousands of dollars so you should be careful to structure the tax clause, if desired, to make the beneficiaries of specific gifts or nonprobate assets responsible for paying the tax on what they receive. Review this article for a closer look at the tax clause issue and specific examples of where it might be important to adjust the clause to insure a fair allocation of the taxes in your estate.
Please feel free to contact us at any time at 610-933-8069 or dkaune@utbf.com to discuss your particular case to determine the appropriate tax clause in your estate planning documents.
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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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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