In a long-term care crisis?
In a long-term care crisis?
Probate is the legal process of proving a will and then identifying, categorizing, and distributing a person’s assets after they die, even if they do not have a will. However, wills are adopted to ensure your assets land in the hands of those you choose, because dying intestate means the probate court will apply a formula to decide who receives them.
Some assets do not go through probate, such as real estate you own in joint tenancy, bank accounts with pay-on-death designations, assets in trusts, and life insurance policies with beneficiaries named in the document. Don’t worry if it sounds confusing. Our skilled estate planning attorneys could help make sense of the process for you and your family. Speak with a Warrendale probate lawyer today.
Estates are administered by The Register of Wills, which is part of the Court of Common Pleas in this state. The executor named in the will, or one appointed by the court if the decedent dies intestate, has assigned duties. Generally, a legal notice is posted in the Pittsburgh Post-Gazette, alerting creditors to submit claims against the estate. Executors’ other actions include:
Executors in Warrendale can work with probate attorneys to file and pay the Pennsylvania Inheritance Tax, the Federal Estate Tax, and the decedent’s personal and estate’s final state and federal income taxes.
The Pennsylvania Inheritance Tax rate varies depending on the relationship beneficiaries share with the decedent. Spouses are not taxed, but children will pay a four and a half percent tax on inherited assets. The decedent’s siblings will pay a 12 percent tax, and friends or distant relatives will pay a 15 percent state tax.
Although The Federal Inheritance Tax affects estates valued at $12.92 million for individuals and $25.84 million for married couples, the amount changes from year to year. Our lawyers in Warrendale could assess your situation and tailor our services to your probate needs.
Without a valid will, the courts will rely on the Commonwealth’s laws to distribute a decedent’s assets to family members. If you die and are married but have no children, your spouse inherits the estate. If you have children but are not married, the children inherit the estate to split among them.
If you leave a spouse and children with that spouse, your spouse inherits the first $30,000, and the remainder is split between your spouse and children. If the children are yours from a previous relationship, your spouse receives half the estate, and your children split the other half. Other formulas also apply to other relatives.
If you enter a partnership or limited liability company as a member and your business does not make provisions for the death of an owner, your heirs will inherit it under intestacy laws. This means your business partners may end up with an unsuitable partner in your place.
Suppose you and your spouse were on the verge of a bitter divorce, and now that spouse is an owner in your business, even if they are incompetent and the other owners are angry with you. Our Warrendale probate attorneys could help you avoid unintended consequences of equipping you with estate planning tools.
Probate allows for your assets to be distributed and a will to be validated. Following the terms of this process allows you to get your assets into the hands of the beloved friends and family members you choose. If you don’t adopt a will and die intestate, your assets will still go through probate, with the court determining what your heirs receive.
Some assets are exempt from probate and can be distributed more quickly outside of it, such as those in trusts. There are deadlines to meet and taxes and creditors to pay, also. To better understand the process and what to expect in your case, reach out to a Warrendale probate lawyer today.
