Intestate - Die without a Will

It is so important that you make a Will.  But, the question often arises what happens if you die without a Will?  If there is no Will at death, the intestate laws of the state apply. 

A question was posed regarding the death of a spouse leaving a wife and 5 children without benefit of a Will.  For real estate, if the property was owned jointly with the wife, the property will go by joint ownership to the wife.  The other assets would go as follows:  The first 30,000 would go to the spouse and the remaining would be split 50% to the wife and 50% equally distributed to the 5 children.  Note, this would include any real estate that was owned in the husband's name alone.  If any child is under the age of 18 their share will be held for them and given out right to them at the age of 18 years of age.

Would this be the result you would like to see for your estate?  Many would say no!  Save your estate by making a Will today.  Contact us at http://www.ythlaw.com/

Estate Planning Mistakes - Number Seventeen

There are a number of triggering events that should have you making a Will or updating a current Will. One such event is marriage. Do not fail to amend your Will after you get married.

If you marry after making a Will (with no mention of a current or future spouse) and do not change it before you die, then your surviving spouse will receive the share of the estate to which a spouse would be entitled if you died without making a Will. This may or may not meet with your intent. It is always better to make your own plan then having the State's plan imposed upon you.

Contact us at http://www.ythlaw.com/for expert estate planning advice.

Intestate Means To Die Without a Will

Death is not a topic we like to talk about. So, we come up with interesting ways to refer to death , "kick the bucket". Does that make it less real? But it is real and it is inevitable. So before your last days, you want to get your affairs in order.

If you fail to plan, you leave the decisions to others including those you do not know.

Contact us at http://www.ythlaw.com/ for expert legal advise.

Estate Planning Moment in the Poconos

Over the Fourth of July Weekend, we spent sometime in the Poconos so our daughter could enjoy the indoor waterpark. Later during the weekend, while my husband played golf, I was lounging on the pristine shores of Lake Harmony and my daughter was taking in the water sports. I soon struck up a conversation with another vacationer and before long the conversation turned to estate planning. Ok, I just can't help myself...I love estate planning.

The question pertained to providing for your children, upon your death, when you are estranged from your husband. You need to understand that without a will, the intestate laws would distribute over 1/2 of your estate to your spouse. Even with a will, the spouse can not be disinherited. The spouse is entitled to an elective share unless there are circumstances to justify otherwise, but that would have to be proven and remember, this is after you have passed.

So, I was able to provide my fellow vacationer with some food for thought. She said that she looked forward to purchasing my book, Stop! What are you waiting for? Your Step-by-Step Guide to Estate Planning so she could be prepared for her meeting with an estate planning attorney in her state. Feel free to contact us at http://www.ythlaw.com/

Jimi Hendrix - Never Wrote Will

Music legend Jimi Hendrix died at age 27 in 1970 without a will. Since he did not plan for the distribution of his estate, the State contolled the distribution of his assets. Based upon the State laws, Jimi Hendrix's entire estate went to his father. Though he had a brother who he was reportedly close to, his brother received nothing.

His father did leave a Will when he died. His father's estate (including his inheritance from Jimi) still did not go to any relatives of Jimi. His father had remarried and his estate was left to his new family.

None of us are promised tomorrow. It is better to be prepared than not prepared. Share your comments here or contact us at www.ythlaw.com

Is This Your Child?

I was walking this morning and thinking about how important it is to plan these days. Can you imagine that after your death, someone claims to be your child? This is a person that no one in your family knew existed. This happens more than you might think. Anna Nicole Smith's attorney had stated that some of the provisions in Anna Nicole Smith's will was to address this concern. Both men and women need to address clearly who they intend to be the beneficiaries under their will.

As I have pointed out before, you do not have to provide for your children in your will. However, those who may claim to be your children, though they were not named in the will, can allege that it was an oversight. If you just state that you provide for your "children" without defining, then they claim rights under that broad designation. If you die without a will, the intestate laws provide for distributions to children.

So, is this your child may be a question that has to be answered after your death. Your planning can at least make clear your intention regarding inheritance rights.

Feel free to leave a message or contact us www.ythlaw.com

How can I avoid Federal Estate Tax?

Question:
My husband died unexpectantly and without a will. The estate is worth in excess of 3.5 million dollars. My husband had children from a prior marriage and we had children together. Can I avoid Federal Estate taxes? How can I best provide for all of his children?

Answer:
Yes, you can avoid federal inheritance tax because of the unlimited marital deduction applied to estate assets that pass from your deceased husband to you. However, since your husband died without a will, there was no planning in place to take advantage of his lifetime exclusion amount or his credit against potential future taxes. Further, there will be taxes on the monies which go directly to the children.

WHY, you might ask? When someone dies without a will, the state determines who inherits what assets. In your case, Pennsylvania provides that ½ of the estate would pass to you and the other ½ would pass equally to all of his children. However, this only applies to probate assets – assets that were titled in your husband’s name only. The intestate (to die without a will) laws do not apply to jointly held property and assets providing for designated beneficiaries.
Assuming that most of the estate was held jointly or provided you as the designated beneficiary, the following estate planning strategies are available to provide for the children while minimizing the Federal estate tax:
Gifting: $13000 can be given annually to each child tax free. Such funds could be placed in a trust for the benefit of the children.
529 College Saving Plans: $6,000 (representing 5 years of annual gifts of $13000) is permitted for each child.
Family Limited Partnership: is another gifting vehicle.
Irrevocable Life Insurance Trust: takes life insurance proceeds out of your estate.

Have your questions answered by entering a comment or submitting an inquiry through http://www.ythlaw.com/.

Probate - Duties of Administrator/Executor

Many times the person appointed as an administrator or named as the executor under the will knows very little about the duties of that position. I advise my clients to tell the person they appoint as executor. It should not come as a surprise to anyone. I then let them know what that person's responsibilities would be so that such information can be shared with their executor.

The main duties of an administrator (one who is appointed during probate if there is no will) or executor (person named under the will) are to:
(a) ascertain the assets subject to probate (not all assets are subject to probate, such as assets owned jointly, assets in a trust, assets transfered by beneficiary designation;
(b) gather and provide an inventory of the assets;
(c) open up an estate account (checking account) to place assets and receive other assets due the estate, including interest, dividends, and other income;
(d) determine the beneficiaries - who is going to get what and how much under the Will (if there is no Will, the state’s "interstate succession laws" apply);
(e) determine or obtain appraisal of the estate’s assets;
(f) give legal notice to potential creditors (generally done via legal advertisement - determine state or local requirements for notifying creditors);
(g) investigate the validity of claims against the estate;
(h) pay funeral bills, outstanding debts, and valid claims;
(i) pay the expenses of administrating the estate;
(k) handle various paperwork, such as discontinuing utilities, memberships and charge cards, and notifying Social Security and others of the death;
(l) file and pay inheritance tax;
(m) distribute the remaining property in accordance with the instructions provided in the Will or under intestate law; and
(n) close probate.

In some states, you may be required to hire an attorney to handle probate. In other states, you proceed without counsel. Call our office if you have a probate issue and we can help you meet the requirements.

The THIRD of the TEN reasons to have a will

THIRD, it is important to have a will is to avoid interference by the state. Without a will, you are subject to the state's plan for your assets. Something we all want to avoid and can avoid with a will. Who is in the best position to determine which family members will get your property when you die, the state or YOU? Without a doubt, you know what is best for YOU!! A simple act by you today puts you in charge of your life and your property when you die.