Wills and trusts are a vital part of estate planning. Although both can be used in planning an estate, they serve different purposes and may be challenging to understand. Seeking the counsel of experienced wills and trusts attorneys can help you and your family rest easy knowing that things will be taken care of in the event of your death.
Wills A last will and testament is a legal document that outlines your wishes as to how your assets will be distributed upon your death. Many wills include the following basic elements: • How your assets and property are to be distributed. • Details regarding your possessions. • Naming of beneficiaries—the people you want to benefit from your assets. • Naming of an executor—the person who will manage the distribution of your assets. • Appointing a guardian for your children. After a person dies, a will often goes through probate, the process by which the court transfers property from the deceased’s estate to his or her beneficiaries. The probate court supervises the process to ensure that property is distributed in accordance with the terms and conditions of the will. If you die without a will, probate court will appoint an administrator, determine your beneficiaries and distribute your estate according to Pennsylvania law. The court will also name a guardian if you have minor children. If you are in Pennsylvania, you can consult with Carosella& Associates to ensure that your wishes are carried out and help your family avoid the stress of having the courts make these critical decisions. Trusts A trust is a legal document in which one person or qualified entity, the trustee, holds property for the benefit of another, the beneficiary. The property in the trust can be any kind of real or personal property, including money, real estate, stocks, and other personal possessions. Living Trusts Living trusts are often used in place of a will to avoid probate. Most are revocable, which means that you can terminate the trust or add and remove assets whenever you want. An irrevocable trust cannot be changed or dissolved once it has been set up, and are often used for life insurance planning and setting aside education funds for children. An irrevocable living trust provides your estate with tax advantages and protects it from creditors. Both types of living trusts will allow your beneficiaries to avoid probate. Testamentary Trusts A testamentary trust is connected to your will and activated after your death. However, it will not allow your beneficiaries to avoid probate. Once the assets you have held for the trust go through probate, they are placed in the trust for your beneficiaries. While you are alive you can revoke or amend any testamentary trust included in your will. Many parents use testamentary trusts to help provide for their children, especially if they do not want the gifts left to the children to be given as a lump sum. People with sizable estates often use testamentary trusts to minimize estate taxes and help protect property from creditor claims. Our experienced lawyers in Delaware County and West Chester can help you design an estate plan that is right for you and your family. This post originally appeared at http://carosella.com/difference-between-a-will-and-a-trust/ #Estate Planning, #Wills and Trusts
0 Comments
Probate is the process used to ensure a person’s assets are passed on according to the terms of their last will and testament. Depending on the circumstances, settling an estate can be simple, or a very involved process. Having experienced estate planning lawyers guide you through the probate process can make a difficult time easier for you and your family.
What is Probate? The probate process in Pennsylvania ensures that the estate is distributed according to the decedent’s wishes, and that the executor meets the statutory requirements of settling an estate. The estate’s assets are collected, final debts are settled, any necessary taxes are paid, property is passed from the estate to their heirs or beneficiaries, and the estate is settled. The process can take anywhere from three months to a year or more, depending upon the complexity of the estate and if proper planning was in place prior to the passing of the decedent. Without proper administration, the estate is susceptible to errors, an increase in tax liability, court involvement and claims which can result in serious issues for beneficiaries. There are several steps that must be taken to complete probate. Consulting with a probate attorney to review the will and other pertinent documents can save you time and headaches down the road. The executor or representative of the estate must take the will and a certified copy of the death certificate to the Register of Wills in the county where the decedent lived. Your attorney can accompany you and help you complete the necessary forms. The Register will give you an oath of office as executor and documentation allowing you to act and make transactions for the deceased’s estate. A probate tax based on the estate’s value is payable at this time. Once the estate is opened, probate or trust administration can begin. All of the assets of the decedent are identified, located and collected by the executor. Creditors are put on notice, beneficiaries or individuals with an interest in the estate must receive notice, and certification of the notices must be filed with the Court. If Pennsylvania inheritance taxes are paid within three months of opening the estate, the estate receives a discount of five percent. The final inheritance tax return is due nine months from the date of death. When all outstanding matters have been resolved, a final accounting of the estate administration must be prepared. The remaining assets will be distributed in accordance with the will or trust or in accordance with the laws of Pennsylvania if there is no will. If there are any inconsistencies or disputes among beneficiaries or creditors, a formal accounting to the Court may be required. Being prepared before your death can help your loved ones avoid conflict and legal issues that may arise. Qualified estate planning and wills and trusts lawyers at Carosella can provide comprehensive services to help plan your estate and/or create appropriate trusts. Whether you are planning an estate or dealing with the death of a loved one, Carosella& Associates’ experienced attorneys practicing in Montgomery County, Delaware County and Chester County are here to help you through the process and make it as stress-free as possible. This post was originally published at http://carosella.com/understanding-probate-an-overview/ #Probate, #Probate Overview |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
May 2023
Categories
All
|