Bryn Mawr Pa Estate Litigation Lawyers
Most estates, especially when there is a proper will in place, are easily settled. Yet there are times when other factors complicate the issue, creating a situation that requires more careful consideration. For example, a family business, an estate that is in bankruptcy or an estate that holds significant amounts of real estate may become complicated quite quickly. This is where estate litigation comes into play.
When an estate or a will is contested and the case has to go to court, the right Pennsylvania estate litigation attorney is required to ensure an individual’s best interests are protected. John B. Whalen, Jr. Esq. is a Pennsylvania estate litigation attorney who is ready to fight for the interests of his clients in complex estate cases.
Most estates, especially when there is a proper will in place, are easily settled. Yet there are times when other factors complicate the issue, creating a situation that requires more careful consideration. For example, a family business, an estate that is in bankruptcy or an estate that holds significant amounts of real estate may become complicated quite quickly. This is where estate litigation comes into play.
When an individual acts in a fiduciary capacity such as an executor of a will or a trustee of the financial assets of another person or entity, they have the responsibility of keeping accurate financial records. Those records should show how money was spent, invested or distributed while under the fiduciary’s care and control. Proper accounting can bring to light the mismanagement or bad investment of funds should an issue arise with an interested party.
Model Court Accountings
Certain procedures must be followed when reports are prepared to explain how the assets in an estate or trust were managed. Approved fiduciary accountings require the separation of principal and interest. You can not commingle funds that are considered principal with those that are considered income.
- Principal = original investment + capital gains – capital losses – expenses – distributions
- Income = money generated from the investment or use of principal
The main reason for keeping principal and income in separate accounts is that the beneficiaries of income in a trust or estate may be different than the beneficiaries of the principal in the same estate or trust.
Fiduciary Tax Returns – Form 1041
A trust or an estate is considered a separate legal entity from an individual who may be a beneficiary of that trust or estate. Therefore, it is incumbent upon the fiduciary administering the estate or trust to file a federal tax return under certain conditions.
The IRS requires a trust to file a tax return if it has any taxable income or has gross income of at least $600, regardless of whether it is taxable or not. Estates must file Form 1041 if they have gross income of $600 or more. A fiduciary must also file a return if any of the beneficiaries of the estate or trust is a non-resident alien.
Form 1041 is similar to the 1040 return used by individuals. The form is designed so estates and trusts can report income, deductions, gains, losses and any other pertinent financial information. Before funds or assets can be distributed, any tax liabilities of the estate or trust must be satisfied.
Closing Out a Fiduciary Relationship
Once all of the assets of an estate or trust have been distributed or otherwise settled, it is customary that the fiduciary is released from further responsibility. That may be done by signing a release form through the court or an agreement with the beneficiaries of the estate or trust.
Dealing with estate taxation can be complex. Estate taxation attorney John B. Whalen, Jr., provides guidance to his clients when dealing with these complicated issues.
Aggressive, Knowledgeable Representation
When estates become complex, the case sometimes has to go to court to be resolved. When that happens, Attorney John Whalen provides aggressive representation backed by a firm knowledge of estate law. With potential disputes involving everything from clauses in a will or trust to claims from a third-party transaction with the deceased individual, the number of complexities that can come up in these cases is extensive, and those who are in the midst of a case will want an experienced attorney on their sides.
Attorney John Whalen understands the complexities of Pennsylvania’s estate law, and is ready to help individuals understand their rights as they settle an estate. From creating the initial will or trust to ensuring that as much of the estate as possible is protected, he offers the benefit of a deep knowledge of estate law and the experience of many years in the legal field with a focus on estate planning. Find out more with a free consultation to discuss your situation.
Control Litigation Costs
In an estate case, litigation costs can skyrocket out of control quite quickly. Having proper representation helps prevent that from happening. Attorney Whalen will help keep costs in check while protecting the rights of those left behind in an estate case. All alternatives are explored to ensure that the most cost-effective solution is chosen when a question is addressed.
Personal Attention
Attorney John B. Whalen, Jr., Esq., understands both the emotional and financial implications of an estate litigation case. That is why he maintains a close connection with his clients, to ensure that he understands the goals and desires of each family served. If you are facing a complex estate battle, make sure your interests and rights are protected with the help of Attorney John Whalen.
