Estate Administration

Wills and Trusts

Too many baby boomers skip taking the time needed to plan for old age. Each month we all get another 30 days older and 30 days further from creating essential estate plans. By 2030, all of the current "baby boom" generation will be over 65--and it is estimated that less than half will have sufficient estate documents in place.

Never getting old, and never becoming a long-term resident in a nursing home, is one way some baby boomers are approaching the problem. The mindset is that of an ostrich--and procrastinated thinking (that they will get to "it" tomorrow) so that no planning gets done. The families of these baby boomers often find themselves needing to file formal petitions in Orphan's Court seeking guardianship when a power of attorney would served your needs better (and be a fraction of the cost!).

Failing to plan can be financially damaging and causes financial insecurity. Planning for living a long life, living with injury and living with incompetency often stirs up uncomfortable feelings. There are considerable legal and tax implications for you and your family, your livelihood, your estate and your intended beneficiaries. Failing to plan can be financially devastating and cause irrevocable financial insecurity.

Plan to age gracefully instead. Consider your physical, emotional and spiritual health and needs, and what it will take for you to feel content when you are 93 years old. Working on physical adaptations to your home can be part of your plan, just like including natural light, gardening, and finding comfortable living space to live a balanced and healthy long life. We offer check lists to help you consider possible future needs and plan ahead! (Contact Carole Hendrick at carole@attorneyhendrick.com)

Planning ahead includes planning for your own incapacity as well as planning on what your family will do when it is your time to go. Your Will is your last say about anything and everything regarding what to do with your property and other things about you. It is your legal declaration of your wishes regarding the disposition of your belongings to be performed after your death. It often includes a statement about your wishes regarding the disposition of your body in the event you were able to donate organs or donate your body to science. It is a private document until it gets filed with your County Register of Wills Office for "probate." Upon acceptance into the "probate," or the legal administration of your estate, your Will becomes a public document. A Trust is an alternative to a Will--and assets in a Trust avoid probate. A Trust is a very useful tool for planning when you have a prior marriage and/or children from a prior marriage [more on Trusts later].

Your Will is an important legal document, regardless of the value of your estate. If you die without a Will, your property will be distributed in accordance with Pennsylvania’s Intestate Laws. The administration required to distribute your property will be through a court appointed estate administrator–which may or may not be a member of your family or someone you know. If you have no relatives (or your relatives cannot be found) the State will get your property. Dying without a Will can, and most likely will, lead to the distribution of your property in ways you never intended, be more costly in terms of fees and costs and create added emotional strain to your survivors.

Keep in mind that not all assets can be transferred through your Will--which can be very important for your estate plan. Property that is titled as “tenancy by the entireties” or “joint tenancy with right of survivorship” is an asset that is owned by more than one owner and cannot be transferred through a Will. The property will automatically become the property of the surviving owner. Additionally, bank accounts, securities (stocks and bonds), life insurance policies or retirement accounts with a named beneficiary will pass to the named beneficiary and not through your Will. Educate yourself about your assets and remain engaged in knowing about your financial health--with or without a Power of Attorney.

Planning ahead can change lives. At minimum, WRITE YOURSELF A LETTER AND WRITE YOUR WISHES DOWN. Writing out your wishes can be extremely helpful and get you started. At minimum you will have created something in writing that may help your family one day and you completed your first step in this important process! The next step will be to contact Carole Hendrick at 610-761-6992 to make a legally enforceable Last Will and Testament or Trust.

Contact an attorney today to assist you in preparing your important estate documents.

Schedule an appointment with Carole Hendrick to discuss your Estate Documents (your Last Will and Testament, Financial Power of Attorney and Medical Power of Attorney/Advanced Directive). about the connection between health insurance, long term nursing care and estate and medicaid planning.

Married couples with estates large enough to warrant concern for the assessment of federal estate taxes should fu

lly understand the unlimited marital deduction. Planning for the estate tax can include creating a Trust so that each spouse’s estate stays under the estate tax exemption threshold. The estate tax exemption has been the source of great political debate and was increased in 2017 to $10M for an individual ($20 M per married couple) for estates established after 2017. In 2023, the exemption increases to $12,920,000.00 (over $25 M per married couple).

IMPORTANT NOTE: The current federal estate tax exemption is scheduled to sunset on December 31, 2024. The tax exemption will be reduced to $5M per individual ($10 M per couple). Adjusted for inflation, the exemption is expected to be reduced to $7 M per individual ($14 M per couple) unless Congress acts to modify the current tax law. Contact Carole Hendrick immediately for more information.

POWER OF ATTORNEY FOR HEALTH CARE AND ADVANCED DIRECTIVE:

A Durable Power of Attorney for Health Care allows you to state who will make health care treatment decisions for you in the event you are unable to communicate your wishes. It is a flexible document that allows you to appoint someone you know and trust to obtain medical records and make medical care decisions for you in the event you are unable to communicate.

An Advanced Directive (a.k.a. Living Will) allows you to state what, if any, life prolonging treatment you desire if you become terminally ill or permanently unconscious. The Advanced Directive provides express instructions regarding the type of medical treatment you desire should you be in a terminal condition (a condition that will lead to death in a short period of time) or a state of permanent unconsciousness (being unconscious or in a coma with no hope of waking up). Based upon the current state of medical technology, you can choose to receive or not to receive:

cardiac pulmonary resuscitation
mechanical respiration
tube feeding or any other artificial or invasive form of nutrition or hydration
blood or blood products
surgery or invasive diagnostic tests
kidney dialysis
antibiotics

You can also express your wishes regarding donating organs and/or your body to science in your Advanced Directive.

Durable Power of Attorney

A Durable Power of Attorney allows you to designate an individual you know and trust to arrange for and manage your finances when you become incapable or incapacitated. Creating a Durable Power of Attorney provides an important written instrument where you, the principal, confers authority to your agent to perform acts on your behalf. A Durable Power of Attorney can avoid expensive and time-consuming court proceedings, not to mention the potential for someone you do not want managing your finances, to be assigned as your agent. The authority given to your agent is very broad and it must be witnessed and notarized to be enforceable. Agents are held accountable under Pennsylvania Law and the Power of Attorney can be revoked at any time. A durable power of attorney is a very useful but easily exploitable tool. It is critical that you select someone you thoroughly trust.

The Power of Attorney will not expire until it is revoked. It is a good idea, however, to review and update the Power regularly since some institutions are less likely to take a document that is several years old.

Estate Administration

Were you appointed the Executor or Executrix of an estate? I can help! The process of "probating the will" (meaning prove the will exists and is authentic) and administering the estate requires you to follow strict timelines, pay legitimate claims, pay taxes and file the Pennsylvania Inheritance Tax return for the decedent. The role of the executor is to do everything they can to honor the wishes outlined in the will and protect the value of the estate for all the beneficiaries. I can assist with the administration such as: court filings regarding probate and inheritance tax; identifying a safeguarding- assets and obtaining asset values for the estate; paying all legitimate liabilities; selling assets as necessary; final distribution of the estate to the beneficiaries. Pennsylvania assesses an inheritance tax which requires the preparation and filing of an inheritance tax return.

No Will? I can help! The process administering the estate will begin with obtaining death certificates and contacting other heirs (or at least obtaining their names and addresses so they can be served with a petition to administer the estate). Once we have the petition signed and verified we will be prepared to be appointed the Estate Administrator.

I work with the Executor/trix and Estate Administrators to provide as much or as little legal assistance with the estate administration as is feaseble and desired.

Personal representative should contact Attorney Carole Hendrick with specific questions.

Attorney Carole Hendrick can assure that all legal requirements involved in settling your affairs and
transferring property are met.

To contact Attorney Carole Hendrick, call 610-489-0295 or contact us.