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Estate Planning and Probate: What You Need to Know to Plan for the Future
Less than half of Americans report that they have a will in place, and that means that more than half could end up with no say in how their estates are handled after their death. While it’s not the most glamorous of conversation topics, understanding how estate planning and probate work is critical to protecting your assets and ensuring they are distributed according to your wishes.
The Importance of Understanding the Estate Planning and Probate Processes
Estate planning is something that many people believe is reserved for the elderly or those who are facing the probability of death, such as if someone has been diagnosed with a terminal illness. Some people also believe that estate plans and wills are only necessary if you’re rich or have a lot of assets. But the truth is that estate planning is important for everyone.
Estate planning is a way for you to ensure that your wishes are known and executed after your death, but it also provides peace of mind while you’re still living. Knowing that your decisions are already made and everything is handled legally leaves you free to spend your later years enjoying time with your loved ones and making memories instead of worrying about what might happen to them after you’re gone.
What’s Involved in Estate Planning?
While creating a will is one of the most important parts of estate planning, it’s certainly not the only consideration. Estate planning is a complex topic, and there are a variety of tools and strategies you can use to handle your estate. Below is a short list that covers the basics of estate planning.
- Creating a will: A last will and testament is the document that outlines how you wish your assets to be distributed. It will also name the executor of your estate and any beneficiaries.
- Naming beneficiaries: If you don’t have a will, your estate will be subject to the inheritancy laws of Pennsylvania. In general, your estate will be divided between a surviving spouse and any children, but this varies depending on your family structure. In a will, you can name whomever you wish to be your beneficiaries.
- Appointing an executor: The executor of the state is the person who is responsible for ensuring that your estate is settled and any remaining assets are distributed according to your wishes.
- Considering trusts: Trusts can help keep certain assets out of probate, which can help beneficiaries access them faster after your death.
- Planning for tax implications: Inheritance taxes in Pennsylvania can be significant, but there may be some ways to lessen the tax burden with proper estate planning.
- Establishing power of attorney and a health care directive: Estate planning isn’t just about what happens after you die. A comprehensive estate plan also includes a power of attorney and an advance health care directive that ensure your wishes are known if you’re incapacitated and unable to make decisions for yourself for any reason.
What Is Probate?
Probate is the process that most estates will need to go through in Pennsylvania. This process requires the executor to file the will in the county where the person died and file a request in probate court. Once probate has been granted, a notice must be published in at least two local papers. This ensures anyone with a vested interest in the estate is aware of what’s going on.
The executor will account for all of the estate’s assets and settle the estate by paying any creditors or other expenses before distributing what’s left according to the will. If the person died without a will, the remaining assets will be distributed according to the Pennsylvania inheritancy laws. While it depends on whether you’re married, whether you have children, and what living family you have, these laws generally disburse the assets to your surviving spouse or any children.
Working With the Estate Planning Attorneys at the Peak Legal Group
One of the benefits of estate planning is that it can be tailored to each person, taking into consideration their finances, who they want to leave their estate to, and what’s important to them. And to get the most out of estate planning, it’s important to work with an experienced estate planning attorney who can inform you of your options and advise you on which tools and strategies are the right options for your situation.
At Peak Legal Group, LTD, we know that thinking about those you will be leaving behind is difficult, but our goal is to help you create an estate plan that aligns with your needs and goals and provides you with peace of mind. If you’re not sure what to include in an estate plan or if your estate may qualify for a simplified probate process, contact our office to speak with a member of our team at 610-989-7064. We’re here to help you get a complete understanding of estate planning and probate, including how it relates to your specific circumstances.
