• Bryn Mawr Pa Probate •

• John B Whalen Jr Esq •

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Suburban Life Magazine March 2023

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Bryn Mawr Pa Estate Planning Attorneys Guide

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Bryn Mawr Pa Estate Planning Attorneys Guide – Intro

This Bryn Mawr Pa Estate Planning Guide is the best gift you can give your loved ones is to have your Pa Estate Planning complete.

Unfortunately, to a great extent, misinformation about critical terms such as Pa Inheritance Tax, Federal Estate Tax, Pa Probate, avoiding probate, simple will, and Pa Living Trust, tends to lead to misunderstandings of Pa Estate Planning.

These misunderstandings, in turn, tend to lead to mistakes in Pa Estate Planning.

These mistakes, again, in turn, tend to lead to unintended results after one’s death.

In an effort to eliminate such misinformation, misunderstandings, and mistakes, this article will hopefully serve as a review – in very simple terms – of the basic, core issues of estate planning and its basic documents.

Bryn Mawr Pa Estate Planning Attorneys Guide – The Documents

There are four primary Pa Estate Planning documents that tend to form the foundation of most good estate plans. These documents are a

  • Pa Power of Attorney,
  • Pa Advance Directive for Health Care (a Pa Living Will),
  • Pa Last Will, and (at, times)
  • Pa Trust

Although each document has a different purpose, each document designates someone who is responsible for carrying out the wishes set forth in the document.

I refer to these people – those in charge – as “The Bosses.

Bryn Mawr Pa Estate Planning Attorneys Guide – The Bosses

Each document has a boss who is in charge of carrying out the terms of that particular document. Under Pennsylvania law, the proper terms for the bosses are:

  • Pa Agent (under a Pa Power of Attorney),
  • Pa Surrogate (under a Pa Living Will),
  • Pa Executor (under a Pa Last Will),
  • Pa Trustee (under a Pa Trust).

Although a technical knowledge of these terms can be useful, it is not the point of this article. The focus is to illustrate that an Agent, a Surrogate, an Executor, and a Trustee are just the bosses of that respective document.

Bryn Mawr Pa Estate Planning Attorneys Guide – The Powers

Each boss has powers, and these powers can be summarized very simply.

  • Pa Agent (under a Power of Attorney) can help manage all of your affairs
  • Pa Surrogate (under a Pa Living Will) can ensure your end of life decisions.
  • Pa Executor (under a Pa Last Will) can administer your Pa Estate
  • Pa Trustee (under a Pa Trust) can monitor and manage your Pa Trust.

Again, and although a technical knowledge of the parameters of these various powers can be useful, it is not the point of this article. The focus is to illustrate that a Pa Agent, a Pa Surrogate, a Pa Executor, and a Pa Trustee can generally possess broad powers to act for you under that respective document.

Bryn Mawr Pa Estate Planning Attorneys Guide – The Traits

Although all four of the documents require bosses that possess certain traits or characteristics in order for that document to be as effective as possible, I have experienced that two traits should be inherent in all of the bosses of all four of the documents

  • Ability
  • Willingness.

Although the bosses of each of the documents should also possess additional traits for that particular document to be effective (all of which shall be addressed later), unless your boss is able and willing to act on your behalf, your desires and wishes may not be followed.

Bryn Mawr Pa Estate Planning Attorneys Guide – The Documents

There are four primary documents that tend to form the foundation of most good estate plans. A succinct review of each, and the misunderstandings of each, follows.

Bryn Mawr Pa Powers of Attorney Lawyers

A Pa Power of Attorney can grant your boss (Pa Agent) the ability to control all of your affairs. It is a very powerful document; it can permit your Pa Agent the broadest of powers to do anything which you could have done (i.e., give all your money away), but yet, inherent in these broad powers, is the reality that your Pa Agent may actually do anything which you could have done (i.e., give all your money away).

A Pa Power of Attorney can be durable (effective after you are incapacitated), current (effective now), or springing (effective upon the happening of a future event (i.e., the decision by your treating physician that you can no longer act for yourself).

A common misconception is that a Pa Power of Attorney eliminates your ability to act for yourself. Quite to the contrary, and until you are deemed incapacitated, a Pa Power of Attorney should properly be viewed as a shared authority – you still retain all of the powers and decision making ability that you possessed before you executed the Pa Power of Attorney.

With respect to additional traits that your boss should possess (in addition to being able and willing), I have found that your boss (Agent) should also be:

  • Levelheaded
  • Familiar with your affairs.

Bryn Mawr Pa Living Wills Lawyers

A Pa Advance Directive for Health Care can grant your boss (Pa Surrogate) the ability to execute your end of life decisions and decide whether life-sustaining measures should be used. The common misconception of this document is when it will become operative.

There are two triggers that must occur before your Surrogate is even given the option of acting: the first is that you must be unable to communicate your own decisions, and the second is that you must have been diagnosed with a terminal condition or as being permanently unconscious.With respect to additional traits that your boss should possess (in addition to being able and willing), I have found that your boss (Surrogate) should also be:

  • Stoic
  • Strong.

Bryn Mawr Pa Last Wills Lawyers

A Pa Last Will can grant your boss (Pa Executor) the ability to administer your Estate.

The most common misconception that surrounds a Pa Will is the process called Pa Probate and the seemingly universal theme that it should be avoided at all costs.

Again, and virtually to the contrary, the word probate is merely the Latin infinitive verb that means to prove, and, although some states do have onerous probate procedures (where the avoidance of probate may be a prudent strategy), Pennsylvania is not one of those states. In fact, probating a Will in Pennsylvania is very simple.

Also very important is the fact that a Will only disposes of the assets (1) that you own in your individual name alone and (2) that possess no beneficiary designations (i.e., no tags). Consequently, items owned jointly with another are controlled by property law (not Will law) and will pass to the joint owner(s) at your death, and items that have beneficiary designations will be controlled by contract law (not Will law) and pass to the designated beneficiaries at your death. With respect to additional traits that your boss should possess (in addition to being able and willing), I have found that your boss (Executor) should also be:

  • Honest
  • Diplomatic. 

Bryn Mawr Pa Trusts Lawyers

A Pa Trust can grant your boss (Pa Trustee) the ability to monitor and manage your Pa Trust. The types of Trusts can be viewed simply as being either (1) revocable (which are created during your life and which become irrevocable upon your death), (2) irrevocable (which are created during your life and become irrevocable upon their creation), and (3) and testamentary (which are created under your Will and which become irrevocable upon your death

Vital is the fact that they can be extremely useful for individuals with Special Needs (i.e., autism, addictions, minors, etc). With respect to additional traits that your boss should possess (in addition to being able and willing), I have found that your boss (Trustee) should also be

  • Attentive
  • Decisive.

Bryn Mawr Pa Estate Planning Attorneys Guide – The Taxes

Another area of misconception in the Pa Estate Planning area involve the taxes that are imposed on the value of your assets on the date of your death.

Basically, two death taxes can be imposed on Pennsylvania residents: the

  • Federal Estate Tax, and
  • Pa Pennsylvania Inheritance Tax.

Unlike the income tax, which is very descriptive in its title – as it is imposed upon your income – the phrases “Federal Estate Tax” and “Pa Inheritance Tax” are misnomers in that may tend to belie the actual fact that these are taxes imposed by virtue of your death.

Federal Estate Tax

The Federal Estate Tax begins at a wealth threshold.

If you possess less than the wealth threshold at your death, the federal estate tax will not be applicable. If it is applicable, the tax is imposed on a percentage scale according to the amount of wealth (i.e., potentially 47% of the value of your assets above the current $1,500,000. 00 wealth threshold). This threshold has been, is, and is scheduled to continue to increase. In 2005, the threshold is $1,500,000. 00; in 2006, 2007, and 2008, the threshold is $2,000,000. 00; in 2009, the threshold is $3,500,000.00; in 2010, the Federal Estate Tax is scheduled to be eliminated; but in 2011, the Federal Estate Tax is scheduled to return with a threshold of $1,000,000.00.

PA Inheritance Tax

The Pennsylvania Inheritance Tax has no wealth threshold and starts immediately. It is imposed on a percentage based on the relationship of the beneficiary

  1. 00.00% = Spouses and Charities are taxed at a 00.00% tax rate, 
  2. 04.50% = Lineal descendants are taxed at a 4.50%,
  3. 12.00% = Siblings brothers and sisters
  4. 15.00% = Collaterals (everyone else).

Bryn Mawr Pa Estate Planning Attorneys Guide – The Pointers

In conclusion, there are four basic pointers for all who are faced with estate planning.

  1. Title your assets with the utmost care (i.e., joint ownership, beneficiary designations, etc.)
  2. With respect to transferring your assets (i.e., re-titling, gifting, etc) during your lifetime, get advice before you do so (before the bombs go off).
  3. Always have your estate planning documents up-to-date because laws, taxes, and people change.
  4. Most importantly – pick your bosses very carefully.

Bryn Mawr Pa Probate Attorneys Guide

The Bryn Mawr Pa Probate Attorneys Guide is the core of this website. It consists of the best, most important articles on this website. Their focus is to provide the best and most complete information on a particular topic, rather than to sell products.

John B. Whalen, Jr., JD., LL.M., is an AV Peer Review Rated Preeminent 5.0 and Avvo Rated 10.0 Superb (obtaining over 95 client reviews and peer endorsements) premier and prestigious Attorney and Counselor at Law. He is featured on Avvo, Justia, Lawyers, LinkedIn, Martindale, Nolo, Quora, and Thumbtack. He is located at 696 Pont Reading Road, Ardmore, Pa, 19003. He serves all surrounding counties, on all 7 days, from 9:00 AM to 10:00 PM, and on evenings, weekends, and holidays. He provides free initial consults all seven days, provides home visits, and provides flat fee structures. He can be reached by email at [email protected], and by telephone at 1-610-999-2157. Mr. Whalen has achieved the AV Peer Review Rated Preeminent award from Martindale, AV Peer Judicial Preeminent award, the Avvo Rated Superb 10.00 award, the Avvo Rated Top Lawyer award, the Clients’ Choice Award, and the Top One Percent (1%) award. He is the recipient of the Legum Magister Post-Doctorate Degree (LL.M.) in Taxation (from the Villanova University School of Law), a recipient of the American Jurisprudence Award in Wills, Trusts, and Estates (from the Widener University School of Law), and a recipient of the ABA-BNA Law Award for Academic Excellence (from the Widener University School of Law).

What is a Bryn Mawr Pa Model Court Accounting?

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What is a Bryn Mawr Pa Model Court Accounting? – Intro

As I have explained in Bryn Mawr Pa Beneficiary Lawyers, I have represented thousands of beneficiaries during my decades as an Estate Attorney. I can provide the necessary advice to protect your rights in nearly any Pa Estate, Pa Trust, and/or Pa Power of Attorney planning matter. If you suspect that a Pa Will, a Pa Trust, and/or a Pa Power of Attorney does not reflect the wishes of the deceased, you have a right to challenge the proceedings in court.

What is a Bryn Mawr Pa Model Court Accounting? – Review

There are many factors that can affect the distribution of estate assets. In some cases, there may be a Pa Will that identifies you as a beneficiary; in other cases, there may not be a Pa Will at all. In still other cases, there may be a dispute involving the administration of the estate. For example, a beneficiary may disagree with how the executor or personal representative is distributing assets.

Estate administration can be a complex and lengthy process with many bumps in the road. If you suspect your rights as a beneficiary are being challenged, you should seek the advice of an experienced estate planning attorney immediately. I can explain your rights and all your available options. Contact our Ardmore, PA office today to schedule a free consultation with me.

What is a Bryn Mawr Pa Model Court Accounting? – Types

Every beneficiary and every fiduciary should understand Compelling Accountings and Defending Accountings. A court can require a fiduciary to provide a detailed report of the assets managed and justification for expenses incurred. This report is called an “Accounting”.

There are two forms of Accountings; Informal Accountings and Formal Accountings.

What is a Bryn Mawr Pa Model Court Accounting? – Informal Accountings

The fiduciary creates and submits an Informal Accounting only to the interested parties without court oversight. An Informal Accounting’s complexity will depend on what information the interested parties require. Some beneficiaries only want copies of bank statements while others require detailed breakdowns and reports.

What is a Bryn Mawr Pa Model Court Accounting? – Formal Accountings

The fiduciary submits a Formal Accounting to the court, as well as to all interested parties. The fiduciary files Formal Accountings in specific, detailed formats. It takes a great deal of time to learn these formats. To save time, judges want all Accounting in the same format. A Formal Account will require a filing fee and at least one court appearance.

What is a Bryn Mawr Pa Model Court Accounting? – Format

You are not allowed to use Excel Spreadsheets, Quicken, Quickbooks, or other similar financial programs. The only acceptable format is a Model Court Account.

What is a Bryn Mawr Pa Model Court Accounting? – When To Compel

An interested party does not need a specific reason to compel a Formal Accounting. Obtaining a Formal Accounting is a right. But, Formal Accountings are expensive so shouldn’t be sought lightly.

Common reasons to seek a Formal Accounting include if you believe the Pa Executor, Pa Agent or a Pa Trustee has committed Theft, Misappropriation of Property, Co-Mingled Assets or has Abused Power. Suspicion that these acts took place is not enough, you must provide the judge evidence.

If an interested party believes that an Executor, Agent or Trustee has stolen property, misappropriated property, co-mingled assets or abused power, it is wise to hire an Estate Litigation Attorney to force the fiduciary to file a Formal Account. In this process, the Estate Litigation Lawyer can obtain an order allowing discovery. This allows the lawyer to depose the fiduciary, subpoena evidence, obtain records and interview witnesses.

If the fiduciary will rectify the harm, the judge will hold a hearing where the Estate Planning Lawyer will present the evidence gathered. If after hearing all the evidence the judge finds the fiduciary was wrong, the judge can order the asset returned and surcharge the fiduciary for expenses and order the fiduciary’s removal.

What is a Bryn Mawr Pa Model Court Accounting? – Conclusion

There are many times when an Accounting should be provided. There are many situations where an Accounting should be compelled. I will review those times and situations in further posts.

Bryn Mawr Pa Probate Attorneys Guide

The Bryn Mawr Pa Probate Attorneys Guide is the core of this website. It consists of the best, most important articles on this website. Their focus is to provide the best and most complete information on a particular topic, rather than to sell products.

John B. Whalen, Jr., JD., LL.M., is an AV Peer Review Rated Preeminent 5.0 and Avvo Rated 10.0 Superb (obtaining over 95 client reviews and peer endorsements) premier and prestigious Attorney and Counselor at Law. He is located at 696 Pont Reading Road Ardmore Pa 19003. He serves all surrounding counties, on all 7 days, from 9:00 AM to 10:00 PM, and on evenings, weekends, and holidays. He provides free initial consults all seven days, provides home visits, and provides flat fee structures. He can be reached by email at [email protected], and by telephone at 1-610-999-2157. He has amassed over 60 prestigious and premier professional awards and over 5000 client reviews and endorsements. Mr. Whalen has achieved the AV Peer Review Rated Preeminent award from Martindale, AV Peer Judicial Preeminent award, the Avvo Rated Superb 10.00 award, the Avvo Rated Top Lawyer award, the Clients’ Choice Award, and the Top One Percent (1%) award. He is the recipient of the Legum Magister Post-Doctorate Degree (LL.M.) in Taxation (from the Villanova University School of Law), a recipient of the American Jurisprudence Award in Wills, Trusts, and Estates (from the Widener University School of Law), and a recipient of the ABA-BNA Law Award for Academic Excellence (from the Widener University School of Law).

Bryn Mawr Pa Trusts Lawyers

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Bryn Mawr Pa Trusts Lawyers

A living trust allows you to place assets under the care of a trustee who then distributes them to your beneficiaries in accordance with your wishes. A living trust, in contrast with a testamentary trust, comes into existence while you are still alive. Pennsylvania’s trust law is based on the Pennsylvania Uniform Trust Act.

Pa Trust Parties

Three parties are required to create a living trust: The settlor, or trustor, is the party who creates the trust, sets its terms and deposits assets into it. The trustee is the person that administers the trust in accordance with the terms you, as the settlor, have set. You may appoint yourself as the trustee. Beneficiaries are the persons or organizations you appoint to receive the trust assets. A trust may include other parties as well; for example, you may name either a successor trustee or a trust protector whose sole function is to hire and fire trustees.

Pa Trust Creation

A living trust is created when you draft and sign a Declaration of Trust. The Declaration of Trust identifies the parties to the trust, specifies whether it is revocable or irrevocable, and tells the trustee how to distribute trust assets. The Declaration of Trust may give the trustee specific instructions on how to distribute the trust’s assets or allow the trustee broad discretionary authority. For example, the trustee may be permitted to invest the trust assets and distribute only capital gains to the beneficiaries. If the trust is revocable, as most are, you may modify or terminate it at any time. Pennsylvania, unlike many other states, allows you to modify or terminate a living trust, even an irrevocable one, if you can secure the unanimous consent of the beneficiaries.

Pa Probate

The assets of a Pa Living Trust are not subject to the Pennsylvania Probate process. The Pa Trustee may immediately distribute trust assets to beneficiaries to the extent expressed in the trust document grants him the authority to do so. Assets may be distributed without seeking approval from the estate executor or probate court.