Creating an estate plan involves discussing how your assets will be distributed to what heirs after death. Other topics include inheritance, estate, and other taxes, how to save time, effort, and money for heirs, how to safeguard assets, and how to create a smooth transition to your heirs. A crucial first step involves understanding what exactly will happen to your assets when you die. Then, using tools such as wills, deed transfers, and/or various types of trusts (testamentary, minor’s, revocable, irrevocable, etc.) — a plan is created to serve those goals. Estate planning also involves plans for incapacity and end of life wishes. Vehicles for this process include powers of attorney, advanced directives, living wills, and healthcare powers of attorney. A typical estate plan often includes a combination of these documents.
Estate Probate
Estate probate is the process whereby assets are transferred from you into the hands of your heirs after you die. Pennsylvania intestacy statutes control what happens when a person dies without a will. Whether or not a will is present, there is actually no requirement to use an attorney to probate a simple estate. Many people, however, find it helpful and comforting to have an experienced lawyer walk them through the process, which can feel complex or at times even overwhelming. Using an attorney can help streamline the process, protect heirs from personal liability, and reduce associated stress.
Inheritance Tax
Pennsylvania is one of a handful of states that collects inheritance tax. You may need to prepare and file an inheritance tax return whether or not a probate estate has been raised. Familiarity with deadlines, specifics of the return, what counts as an asset or deduction, etc., allows you to process a return efficiently and appropriately. Many people prefer to allow an attorney to handle details you may have neither the time nor inclination to learn in time to process a timely return.