William J. Benz, Attorney at LawBucks County Probate Attorney | Serving the Philadelphia area2024-03-15T15:17:27Zhttps://www.benzlaw.com/feed/atom/WordPressOn Behalf of William J. Benz, Attorney at Lawhttps://www.benzlaw.com/?p=470162024-03-15T15:17:27Z2024-03-15T15:17:27ZAccounts with monetary value
Digital assets that have monetary value, such as cryptocurrencies, require careful handling. The executor should treat them in the same manner as other financial assets. These accounts may also have tax implications and require management during the probate process.
Social media or other accounts
The estate executor should review the terms of service for social media and online accounts. These legal conditions may have specific provisions regarding access and transferability after death. Some providers also offer tools or options that can assist with management.
For example, loved ones or executors who can provide a death certificate and proof of relationship can have some control over a Facebook account after a person's death. They can choose to memorialize or permanently delete it.
Memorialization locks down the account so that no one can log in or make changes to it. This option also removes the profile from public spaces, but it allows friends to still view the profile and make posts on the timeline.
Deleting the account removes all aspects of the account, including pictures, posts and videos. It is a permanent action.
To make the probate process easier, the executor should have an inventory of all digital assets and their associated login information and passwords. This will help to account for all assets, allow for access and assist with management during the probate process.]]>On Behalf of William J. Benz, Attorney at Lawhttps://www.benzlaw.com/?p=470152024-02-28T01:27:46Z2024-02-29T01:26:53ZSaving money and time
Probate can cost a lot of money because of court fees and other expenses. It also takes a long time, sometimes months or even years. During this time, beneficiaries cannot get their new items that previously belonged to the person who died.
Reducing privacy concerns
Probate is usually not private at all. Anyone can see what is going on with the dead individual's assets in court records. This might be embarrassing or uncomfortable for the family. Avoiding probate can keep things more private and therefore, more calm and respectful.
Dodging family issues
Sometimes, probate can cause fights in families. People might disagree about who gets what amount of money or items or if the will is fair. This can make the whole process even longer and more expensive. It can also make things stressful for everyone involved.
Keeping control
In some cases when probate happens, the court gets to decide who gets what. This might not be what the person who died wanted. By taking steps to avoid probate, an individual can make sure their personal items go to people they care about right away after their death.
By planning ahead and using methods like trusts or joint ownership, people can make sure their assets do not face the annoyance and hassle of probate. Taking proactive steps to avoid probate can ultimately lead to a smoother and more efficient transfer of assets to the intended beneficiaries.]]>On Behalf of William J. Benz, Attorney at Lawhttps://www.benzlaw.com/?p=470132024-02-10T20:14:12Z2024-02-14T20:09:57ZAdministrative duties
Despite potential logistical hurdles, it is possible to serve as an executor from across the country. Careful planning and organization help.
Many administrative tasks include communicating with beneficiaries, gathering documentation and managing assets. They can occur remotely through mail, email or phone calls. Executors can also enlist the help of Pennsylvania professionals, such as accountants or real estate agents, to help with specific aspects.
Legal requirements
While physical presence in Pennsylvania is not required, executors must file necessary paperwork with the appropriate court, notify beneficiaries and creditors and distribute assets according to the decedent's will or state law. Executors should familiarize themselves with Pennsylvania's probate process.
Communication and transparency
Effective communication is necessary for executors managing an estate from a distance. Keeping beneficiaries in the loop about the estate's progress is important. So is answering their questions promptly and providing regular updates. Doing these things can help alleviate concerns and maintain transparency. Executors should also keep detailed records of all transactions and decisions they make on behalf of the estate.
Executors should be ready to address logistical challenges to fulfill their duties effectively.]]>On Behalf of William J. Benz, Attorney at Lawhttps://www.benzlaw.com/?p=470122024-01-31T00:27:19Z2024-02-01T00:25:46ZLeverage insurance options
Investing in long-term care insurance is a wise move to protect your assets. This specialized insurance can cover costs associated with nursing homes, assisted living or in-home care. By securing this type of insurance early, you ensure financial support when you need it the most, reducing the burden on your assets.
Explore government assistance programs
Look into government assistance programs that may help cover long-term care expenses. Medicaid, for instance, provides support for individuals with limited financial resources. Understanding the eligibility criteria and incorporating these programs into your long-term care plan can significantly alleviate financial strain. Pennsylvania law states that your income must be below or at 300% of the current federal benefit rate to qualify for medical assistance for long-term care.
Utilize trusts for asset protection
Creating trusts can be an effective strategy to safeguard your assets. Revocable living trusts, in particular, allow you to retain control over your assets during your lifetime while facilitating a seamless transfer to beneficiaries upon your passing. This approach ensures that the court will distribute your assets according to your wishes.
Implement advanced health care directives
Establishing advanced health care directives, such as a durable power of attorney for health care and a living will, empowers trusted individuals to make decisions on your behalf in case you are unable to do so. By clearly outlining your preferences for medical care, you maintain control over potential health-related expenditures and prevent unnecessary financial strain.
Regularly review and update your plan
Life is dynamic, and so should be your long-term care plan. Regularly review and update your financial strategies, taking into account changes in your health, family structure or financial status. This proactive approach ensures that your plan remains relevant and effective throughout the various stages of your life.
Responsible people take steps to secure their assets during long-term care. In this way, you can safeguard your assets and enjoy peace of mind as you navigate the complexities of aging.]]>On Behalf of William J. Benz, Attorney at Lawhttps://www.benzlaw.com/?p=470112024-01-16T20:47:57Z2024-01-17T20:47:50ZDebt priority
After creditor notification, the estate's executor must prioritize the payment of debts. In the case of credit card debt, the executor must evaluate the available assets and allocate funds accordingly. Pennsylvania law outlines a specific order for debts, with certain debts taking precedence over others. The order of priority generally is as follows: reasonable funeral expenses, costs of estate administration, taxes, secured debts and unsecured debts, including credit cards.
Sale of assets and debt settlement
In situations where the estate lacks sufficient liquid assets to cover outstanding debts, the executor may need to sell assets to generate the necessary funds. The proceeds can help settle the debts, including credit card balances. The average credit card balance in Pennsylvania is $5,840.
Depending on how many assets and debts the estate has, there may not be enough to pay all debts, especially lower-priority unsecured debts. A pro rata distribution may occur in which creditors receive a percentage of their claim.
Distribution
Once settlement occurs for all outstanding debts, including credit card debt, the remaining assets go to the heirs of the deceased. Pennsylvania law specifies the order and manner in which distribution should occur.
Understanding these steps is necessary for individuals in the estate administration process to navigate it successfully and fulfill their responsibilities under Pennsylvania law.]]>On Behalf of William J. Benz, Attorney at Lawhttps://www.benzlaw.com/?p=470102024-01-04T05:01:04Z2024-01-04T05:01:04ZEstablishing joint ownership
Establishing joint ownership of assets allows the property to bypass probate. When two people own real estate or another asset together, it automatically passes to the surviving owner when the other owner dies.
Naming beneficiaries
Designating beneficiaries on life insurance policies, retirement accounts and payable-on-death bank accounts allows for the swift transfer of assets to the intended recipients. This step minimizes the need for probate.
Creating a trust
Establishing a revocable living trust lets you transfer assets to its ownership during your lifetime. The trust documents name beneficiaries for the property it holds. When you die, the trust administrator can distribute these assets to the intended person outside of probate.
Making gifts during your life
Transferring assets to heirs through lifetime gifts can minimize the probate process. However, you must consider gift tax implications and adhere to relevant regulations.
Using small estate procedures
In Pennsylvania, some estates qualify for simplified probate procedures, known as small estate procedures. Your estate must have a total value of less than $50,000 to be eligible for the small estate process. Consider structuring your financial plan to keep estate assets below this threshold.
Employing these strategies can potentially keep your estate out of probate, saving your loved ones time and money when they settle your final affairs.]]>On Behalf of William J. Benz, Attorney at Lawhttps://www.benzlaw.com/?p=470092023-12-21T20:01:23Z2023-12-21T20:01:23Z1. Gather information and documents
Initiate the process by collecting all relevant information and documents related to the will. This collection includes the current and previous versions of the will, any communications or notes pertaining to the changes and a list of individuals involved in the modification.
2. Identify signs of coercion
Examine the circumstances surrounding the will change for signs of undue influence. Look for sudden and unexplained alterations, especially if they favor specific individuals over others. Pay attention to the timing of the changes, any unusual requests or if your deceased parent was in poor mental or physical health at the time of the modification.
3. Communicate with other family members
Engage in open and honest communication with other family members who may share the same concerns. Discussing suspicions collectively can provide a broader perspective on the situation and help determine if others have observed similar signs of coercion.
4. Invite a mediator
Explore the possibility of mediation or facilitated family discussions to address concerns and attempt to find a resolution amicably. A neutral third party can assist in facilitating communication and fostering a collaborative environment.
5. Consider counseling or therapy
Emotional challenges often accompany disputes over wills. Encourage family members to seek counseling or therapy to cope with the stress and navigate their emotions constructively.
6. Keep a record of communications
Maintain a detailed record of all communications regarding the suspected coercion. Document conversations, actions taken and any agreements reached during family discussions or mediation.
If concerns persist and an amicable resolution proves elusive, exploring probate court may become necessary. At this stage, a judge can review the evidence and make decisions.]]>On Behalf of William J. Benz, Attorney at Lawhttps://www.benzlaw.com/?p=470082023-12-10T01:59:25Z2023-12-10T01:59:25Z1. Neglecting documentation
One mistake is the failure to get complete and accurate documentation. Executors must ensure that all relevant paperwork, including the deceased's will, financial statements and property deeds, is at hand.
Overlooking an important document can lead to delays, disputes and unnecessary stress for beneficiaries. With almost 1 out of 5 American adults stating that their mental health was worse in 2020 than in 2019, life events like a death in the family or a long period of probate can contribute to this feeling.
2. Ignoring debts and liabilities
Often, individuals underestimate the importance of addressing the deceased's debts and liabilities. Failing to settle outstanding financial obligations can lead to issues in giving out assets to beneficiaries. Executors should assess and settle any debts before moving forward with the distribution of the estate, preventing challenges down the road.
3. Disregarding timelines
Probate comes with its fair share of timelines and formalities. Missing important deadlines or neglecting important formalities can result in legal setbacks. Executors must stay informed about specific requirements, ensuring a smooth and timely administration of the estate.
4. Overlooking communication with beneficiaries
Communication plays a huge role in probate, yet many people underestimate its significance. Executors need to keep beneficiaries informed about the progress of the probate process, as well as address any concerns or questions as fast as possible. Failure to have open and easy communication can lead to confusion and resentment among beneficiaries.
With a proactive approach, individuals can navigate this time with peace of mind. Taking the time to sidestep these pitfalls will contribute to a faster and better resolution of the estate.]]>On Behalf of William J. Benz, Attorney at Lawhttps://www.benzlaw.com/?p=469722023-11-22T03:12:16Z2023-11-22T03:12:16Z1. Initiate a thorough inventory
Begin by creating a detailed inventory of the deceased's assets. This involves identifying both tangible and intangible possessions. Tangible assets may include real estate, vehicles and personal belongings. For example, the median value of an owner-occupied home in Pennsylvania is $197,300.
Meanwhile, intangible assets encompass bank accounts, investments and intellectual property. This comprehensive list serves as a foundational document for the subsequent stages of asset management.
2. Examine important documents
Delve into the deceased's paperwork to uncover documents such as wills, trusts and deeds. These documents are necessary for understanding the legal framework surrounding the distribution of assets. Additionally, look for financial statements, insurance policies and retirement account information.
3. Communicate with financial institutions
Contact the financial institutions where the deceased held accounts. Provide them with the necessary documentation, including a death certificate and letters of testamentary, to gain access to the accounts.
4. Address real estate holdings
For real estate assets, initiate the process of transferring ownership by filing the necessary documents with the appropriate county office. This typically involves filing a deed with the Recorder of Deeds.
5. Explore digital assets
Access online accounts, including email, social media and cloud storage, to safeguard or distribute digital possessions. Adhering to the terms of service of these platforms helps avoid legal complications.
6. Settle debts and taxes
Before distributing assets to beneficiaries, address outstanding debts and taxes. This includes paying off creditors and filing the deceased's final income tax return. Fulfilling these obligations ensures a transparent and legally compliant distribution process.
This structured approach not only facilitates a seamless administration process but also upholds the integrity of the estate distribution.]]>On Behalf of William J. Benz, Attorney at Lawhttps://www.benzlaw.com/?p=469712023-11-06T19:45:16Z2023-11-06T19:45:16ZSpouses and children take priority
In Pennsylvania, the surviving spouse of your loved one usually receives the most substantial part of the estate. The exact distribution depends on whether your loved one had children, and if those children are also the children of the surviving spouse. Without children, the spouse might inherit everything. With shared children, the spouse still secures the majority, but the children inherit a portion as well.
When there is no spouse
If no spouse survives, the estate typically passes to the children. Without children, the estate might go to the deceased's parents or siblings. State laws create a hierarchy of relatives who stand to inherit in such cases.
The role of the probate court
The probate court oversees the estate distribution and appoints an administrator, who usually is a family member, to manage the distribution process. This individual settles debts and allocates the remaining assets according to intestate laws.
If your loved one dies without a will in Pennsylvania, the intestate succession laws step in to dictate the estate's division. While dealing with such matters can be complicated, grasping the intestate succession principles can help you manage this challenging period more effectively.]]>