Estate Administration Lawyers in Bucks County
Resources
Practice Areas
Schedule a Case Evaluation Today
When someone you care about passes away, it can be tough to figure out what to do next. An experienced estate administration attorney in Bucks County at The Martin Law Firm P.C. is always there to help make things easier for you. The Martin Law Firm, P.C. assists loved ones, executors, and administrators with the legal issues that arise when someone passes away including opening an estate, gathering assets, and distributing the assets to the heirs. An estate administration attorney can help the surviving family members and provide the necessary legal representation to manage the estate properly.
When someone dies, their assets must be legally transferred or distributed to the people who have a legal right to receive them. The following are the three ways this can happen:
- Operation of Law – When someone dies and they own something with another person as joint tenant with a right of survivorship, it means that the surviving person automatically gets full ownership of the property when the other person passes away. This is often called “JTROS” or “Tenants by the Entireties” for married couples. So, if Henry and Ana are married and own their house as Tenants by the Entireties, when Henry dies, Ana will automatically own the whole house.
- Beneficiary Designations – When you have certain things like life insurance or retirement accounts, you can choose who gets them after you are gone by way of naming a beneficiary for that particular asset. So, if Henry has life insurance and names Ana as the beneficiary when he passes away, Ana will get the money straight from the insurance company. It is a way to make sure your assets pass to the right person without having to open an estate.
- Probate Assets – If someone dies and their assets do not pass by way of joint tenancy or through beneficiary designation, then the assets must pass through their estate. This is often referred to as the probate process or estate administration process. This means that the belongings of the deceased person must be sorted out and given to the right people either through intentions stated in a Last Will and Testament or through the Pennsylvania intestacy law if there is no Will. If the person who died had a will, the person they chose as the executor must start the probate process. If there is no will, a close family member who meets certain requirements must be appointed the administrator by the county Register of Wills. The Will describes who will receive the assets. When there is no Will, Pennsylvania law will determine who receives the assets based on the relationship of individuals to the deceased individual.
Personal Representative
The person in charge of handling the estate of a deceased individual is also known as the Personal Representative. A Personal Representative will be the executor if there is a Will or the administrator if there is no Will. Before the Personal Representative can legally administer the estate, they must get approved by the Register of Wills. The Register of Wills will give them official permission by giving them Letters Testamentary if they were named in the Will, or Letters of Administration if there was no Will.
Personal Representative Duties
In Pennsylvania, the Personal Representative (executor or administrator), must complete specific tasks and responsibilities as required by law. The following are some of the tasks they must carry out:
- Locating the assets of the deceased individual
- Protecting the assets
- Identifying debts or liabilities of the deceased individual and settling any estate claims
- Notifying the heirs and third party creditors or other interested parties
- Opening an estate bank account
- Selling real estate and other assets
- Preparing and filing an estate inventory
- Preparing a formal or informal accounting
- Distributing the assets to heirs
- Implementing tax savings strategies
Responsibilities of the Personal Representative
The Personal Representative has a big responsibility. Everything that the Personal Representative must do must be done competently and in compliance with the Will and Pennsylvania Law. This means they must be very careful and always do what is best for the beneficiaries or heirs. If the Personal Representative fails in his or her duties and responsibilities, they could face personal liability. This is why a Personal Representative should hire an estate administration lawyer to assist them.
Locating Assets
The person in charge of handling the stuff of a deceased person must find everything they owned. This can include things like money in the bank, houses, insurance policies, stocks, retirement savings, cars, and more. Sometimes, locating assets can be difficult. For example, the deceased individual may have a safe deposit box, and the Personal Representative may not be aware of its existence. The Personal Representative will often have to search through the decedent’s home, review old tax returns, mail, and important documents. The Personal Representative should also speak with the decedent’s accountant and financial advisor. There are other helpful suggestions and guidance that an estate administration lawyer in Bucks County from The Martin Law Firm, P.C. can do for the Personal Representative.
Protecting Assets
The Personal Representative has an obligation to protect the assets of the deceased individual. They must carefully consider whether to sell risky things like stocks, make sure the person’s car and house are locked up and have insurance, and put any fancy jewelry or valuables in a safe spot.
Debts And Liabilities
The Personal Representative must also make sure that any of the decedent’s outstanding debts and liabilities are satisfied prior to making a final distribution to the heirs. An estate administration attorney can help negotiate with creditors and ensure that no legal obligations remain. The attorney can also help the Personal Representative comply with Pennsylvania notice requirements to heirs and creditors.
Notice To Beneficiaries And Other Interested Parties
The Personal Representative must send notice to beneficiaries named in the Will, certain family members, creditors and other interested parties. Notice should also be given to the IRS, charities named in the Will, agents who may be acting through a power of attorney, the Pennsylvania Department Human Services, parties to litigation, etc. The Personal Representative must also file a certification with the appropriate Pennsylvania county Register of Wills office stating that the Personal Representative of the estate has properly complied with the notice requirements for beneficiaries.
Estate Bank Account
The Personal Representative will often need to open an estate bank account. An estate administration attorney can assist the Personal Representative with obtaining a Tax ID number from the IRS. Then, the Personal Representative can make arrangements with a local bank to start a checking account for the estate. The estate bank account can be used for transferring assets from the decedent’s bank accounts and other financial institutions. When it is time to pay bills or debts from the estate, the Personal Representative can use the funds in the estate bank account. The Personal Representative should keep a detailed account of all estate assets and expenses.
Selling Real Estate And Other Assets
The Personal Representative will decide which assets should be sold and which assets should be transferred or distributed directly to the heirs. An experienced Bucks County estate administration attorney can assist with that process and guide the Personal Representative through a real estate sale, closing an investment account, and handling a retirement account with beneficiaries.
Estate Inventory
In Pennsylvania, a Personal Representative must make a list of all the assets in the estate. This list is called an Inventory. The Inventory is a formal document that must be filed with the Register of Wills. An estate administration attorney should assist the Personal Representative with the Inventory to make sure it is accurate and complete and that it only contains the assets that are required to be listed on it.
Taxes
The Personal Representative must pay all death taxes and other taxes associated with the estate and the decedent. This includes paying any final federal and state income taxes the person owed, as well as any unpaid local taxes. There may also be transfer taxes, inheritance taxes, and Federal estate taxes to deal with. An estate administration attorney will typically handle the Pennsylvania Inheritance Tax and an accountant can assist with final income tax returns and fiduciary returns.
The Pennsylvania Inheritance Tax is based on the relationship between the person who passed away and the individuals who inherit the assets. If the assets pass to a surviving spouse, the tax rate is zero (0). If the assets pass to children or grandchildren, the tax rate is 4.5%. If the assets pass to siblings of the decedent, the tax rate is 15%. It is important to file the necessary tax return within nine months of the date of death, or penalties and interest may apply. If you make an estimated tax payment within three months of the date of death, you may get a discount. It is a good idea to get help from a Bucks County estate administration lawyer at The Martin Law Firm, P.C. to make sure everything is done correctly.
Asset Distribution And Closing The Estate
A family settlement agreement with an informal accounting is the easiest and most cost-effective way to distribute assets to the heirs and close the estate. This agreement is made between the Personal Representative and the heirs. The agreement will define the money, property, debts, and expenses that make up the estate. The final number is the total amount that will be shared among the beneficiaries. Once everyone agrees on the plan, the Personal Representative can distribute the assets and file a Status Report to close the estate. A family settlement agreement should be prepared by an estate administration attorney.
When a family settlement agreement is not possible, the Personal Representative will have to file a formal accounting with a statement of proposed distribution. The heirs can object to the accounting, and the matter would be litigated in court. This is time consuming, but it is sometimes unavoidable.
Private And Estate Administration Lawyers
If you need help with probate and estate matters, the estate administration attorneys in Bucks County, PA at The Martin Law Firm, P.C. can help. Our lawyers will help you out every step of the way, making sure you know what to do as the Personal Representative and keeping you safe from any personal liability. We work with estates in Pennsylvania including the counties of Bucks, Philadelphia, Montgomery, Delaware, and Chester. Feel free to give us a call at (215) 646-3980 to talk to an estate administration lawyer in Bucks County, PA.
Please call (215) 646-3980 to schedule an appointment.
Practice Areas
Our legal team provides individualized legal solutions for our clients by offering high quality legal counsel and representation in diverse areas of law. Our attorneys regularly represent clients throughout Southeast Pennsylvania, including Montgomery County, Bucks County, Chester County, Delaware County, and Philadelphia County.
Tell Us About Your Case
Please submit the form and an attorney will contact you shortly.
Please indicate how you would like to be contacted in the form.