Recently, the Superior Court of Pennsylvania upheld a Philadelphia County Court of Common Pleas judge’s decision not to enforce an arbitration agreement in a nursing home contract that was signed by a resident’s wife without his knowledge. Despite that decision, numerous courts in Pennsylvania and around the country have enforced compulsory arbitration clauses, which are often unknowingly signed by consumers, the elderly and others, which force people to give up their right to a jury trial.
Most people are overwhelmed by the idea of probating an estate in Pennsylvania, if they even understand the process at all. For good reason, no two estates are alike and not all will even require the formal probate process. For those that do, probate can become time-consuming and expensive, depending on the total value of the estate and other factors related to debt and assets. So it’s easy to feel overwhelmed if you’re facing the probate process.
Because there are so many ways that your wealth and assets can be passed on to your surviving family members and other heirs, it is easy to ruin even carefully thought-out estate plans. Your last will and testament may not be the final word on how assets are distributed to others, although many people mistakenly believe this is the case. Beneficiary designations on financial products, for instance, can override your will, and many common estate planning pitfalls may cause heartache and infighting among family members. Protect yourself by getting to know the major “land mines” that can potentially blow up your estate plan. Continue reading “Avoid the Pitfalls that can Derail Your Estate Plan”
Few people feel fully prepared when they are named a Personal Representative (an Executor, or Executrix) in a loved one’s will. They are often worried about knowing how to probate an estate, what to do, and when to do it. And about making mistakes.
These worries are common, and completely understandable. Legal processes are daunting to most people to begin with, and figuring out how to probate an estate while grieving the loss of a loved one is even more so. On top of that, Personal Representatives can be held personally financially responsible when they make a mistake that results in a loss for the estate, making it sometimes an even more stressful experience.
Many people don’t want to think about their end-of-life affairs, but if they don’t plan carefully, they may leave their families out in the cold—or with a dilemma on how to handle their estate. Hiring the right estate planning attorney can help you decide how to transfer your assets while minimizing complications and simplifying or eliminating the payment of death taxes for your loved ones and surviving family members. A well designed estate plan benefits everyone, not just “the wealthy.” Meeting with an attorney and establishing an estate plan makes the process easier, especially if you anticipate health issues or you have a lot of valuable possessions and assets.
To successfully map out your estate plan, you should find an experienced estate planning attorney who can educate you on all the options, while also helping you avoid legal pitfalls. We’ll briefly outline some different estate planning options below so you can familiarize yourself with avenues you may want to consider. Continue reading “Estate Planning: What You Need to Know”
Nightmare #1: You’re happily remarried and have established a fine life with your new spouse, then die unexpectedly and your life insurance policy pays out—to your ex-wife.
Nightmare #2: Your grandchild develops a debilitating illness and now has to rely on disability payments and Medicaid to supply his needs. Upon your death, one of your life insurance policies is paid to him—and he loses all government assistance.
Nightmare #3: Most of your assets are in a sizeable IRA, which you are counting on to support your spouse should you pass away. Upon your death, the IRA is paid out to your estate and is not only divided up among all the residuary beneficiaries in your will, but must also be paid out—and taxed—within five years of your death instead of providing for your spouse for the rest of her life.