Estate Planning is for everyone: Conti Law explains the basics
Conti Law is a premier Estate Planning law firm in Western Pennsylvania. Estate Planning simply means creating a plan for your future — and the future of your loved ones.
The process may seem complicated at first. The lawyer’s job is to provide clear explanations so that clients can easily understand their choices.
Here is Conti Law’s quick guide to the basics of Estate Planning. Its team is ready to guide you through the process, with a personal touch matched by professional expertise.
Conti Law is headquartered in Oakdale at 7880 Steubenville Pike. Its other office opened this year in Waynesburg at 3157 Mt. Morris Road. Visit the website at contilawpgh.com or call 724-784-0239 to learn more.
What is the purpose of a power of attorney?
A power of attorney helps you plan ahead in the event of your incapacity and ensures that someone you trust can step in to manage your affairs legally if you are unable to act for yourself.
No one can automatically act on your behalf, even a spouse, without having an executed power of attorney. It is important to have both a Financial and Medical Power of Attorney in place so that all your needs can be met in the event that you cannot make decisions on your own.
You do not need to name the same person, or agent, to act for you financially and medically. Some people may be better at handling certain types of decisions. You should give careful consideration to who you name as your agent and the powers given to them. Additionally, you should name a successor in the event your original agent is unable to act.
Keep in mind, powers of attorney stop working upon your passing, thereby transferring the management of your estate settlement to the named executor in your will.
What happens if I die without a will?
Dying without a will is known as dying intestate. State laws determine how your property is divided, usually prioritizing spouses, children, and other close relatives. Each state has differing laws.
In Pennsylvania, if you die without a will, you will not have the opportunity to appoint an executor — the person who will manage the settlement of your estate after your death. Rather, the court will appoint someone to administer your estate.
This process can be lengthy, expensive, and emotionally stressful for your family. Plus, the distribution might not reflect your personal wishes.
If you prefer having control over your estate and the distribution of your assets, you must create a will. A will allows you to decide who inherits your assets and when they inherit, and it allows you to appoint an executor to manage the settlement process.
Who should I name as executor of my will?
An executor manages your estate after death. This person handles everything from gathering assets to paying debts to distributing property. Deciding on an executor can be challenging, therefore you should select someone who is trustworthy and responsible, organized and detail oriented, and able to communicate effectively with your family and professionals.
It is always a good idea to name an alternative Executor in case your first choice is unable to serve. Many people name a spouse, adult child, or close friend. In complex cases, some hire a professional fiduciary or attorney.
What is the difference between a will and a trust?
Wills and trusts are legal instruments used in estate planning, but they serve different purposes and function differently.
A will is a document that outlines how a person wants their assets to be distributed after their death. However, it is only effective upon death and must go through the state probate process. Probate is the court-supervised process of validating a will, paying debts, and distributing assets. It can be time-consuming and costly depending on the complexity of the estate and quality of the estate plan.
A trust is a legal arrangement where assets are transferred from an individual to the trust during their lifetime. If funded properly, a trust avoids probate after death. Trusts are formed during your lifetime and can be revocable or irrevocable. There are many factors to consider when deciding the right path in estate planning.
What is estate administration, and what are my duties if I’m in charge?
Estate administration is the process of managing and settling someone’s estate after they die.
If you’re named as an executor (or administrator), your duties may include locating the will and filing it with the probate court, inventorying assets, notifying beneficiaries, paying debts and taxes, and distributing assets according to the will and/or Pennsylvania intestacy law. This can be a big responsibility, and many people hire an estate administration attorney to guide them through the process.
If you’ve created a valid trust during your lifetime, you have named a successor trustee who will settle your trust estate upon your passing.
The successor trustee’s role is similar to that of the executor, where their job is to marshal your assets, contact the various companies involved, sell real estate, pay expenses and taxes due and distribute the assets to your named beneficiaries. The trust settlement process can be much timelier and cost effective than that of probate.
Who should have an estate plan?
Everyone should have an estate plan.
Estate planning isn’t just for the elderly or the wealthy — it’s for anyone who wants to make life easier for their loved ones and are at least 18 years old. If you own a home, have a retirement account, or care who raises your children if you’re gone, you need an estate plan. Taking the time to plan now can spare your family stress, conflict, and legal headaches later.
Parents of minor children should have estate plans to assign a guardian for their children if they become incapacitated or die before their children reach 18 years old. Without an estate plan, the courts will make decisions about your children’s care. Trusts can also be set up to provide for minor children and manage their inheritance in the event you are of the mindset that 18 years old is too young to inherit your estate outright.
A well-crafted estate plan can help avoid family disputes, maximize tax incentives, minimize court costs, and prevent assets from going to unintended beneficiaries.
How often should I update my estate plan?
An outdated estate plan can be just as problematic as not having a plan at all. Estate plans should be reviewed at minimum when you experience major life changes.
Marriage or divorce, birth or death of a child, death of beneficiary, disability of a beneficiary, disinheritance, significant changes in assets, or moving to another state are examples of times your estate plan should be updated.
Conti Law: 7880 Steubenville Pike, Oakdale, 724-784-0239, contilawpgh.com
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