However, it can feel daunting to navigate the process on your own, given the unique inheritance and estate tax laws from state to state.
For estate planning in Pennsylvania, working with an attorney is the best place to begin when making important decisions for you and your loved ones. Let’s explore more about estate planning, including what it is, who needs it, and tips for getting started.
What Is Estate Planning?
Estate planning lets you decide what will happen to your assets after you pass. Without one, the state can appoint a person to make decisions about your estate, including your property, high-value belongings, and sentimental items.
Estate planning also lets you choose who makes decisions on your behalf if you become disabled or incapacitated and are no longer able to do so. Naming a trusted person, like a family member or business associate, gives you peace of mind, knowing you’ll be in capable hands no matter what the future holds.
Who Needs Estate Planning?
Anyone can benefit from estate planning. If you have items you and your family care about — such as a home, savings, pets, or family heirlooms — you want to plan for what happens to those things when you can no longer manage them.
Estate planning can help Pennsylvania residents in the following circumstances:
- People with children or other dependents. You’ll need an estate plan to name guardians to ensure your family will be cared for.
- Home or property owners. Estate planning lets you decide who inherits your property and helps make it easier for them to take ownership.
- Business owners. You can plan for who will run your business or if it will be sold.
- Drama-avoiding families. With a tailored estate plan, you can bypass arguments with family members about who gets what.
If you have things you care about, estate planning is worth the time and effort. Even a basic plan ensures you’re covered if something unexpected happens.
6 Tips for Estate Planning in Pennsylvania
Estate planning is determined by your unique circumstances and future wishes. The following tips can help you start the process and make the best decisions for your needs.
1. Draft a Will
Estate planning is valuable for Pennsylvania residents. If you pass away without a will (the most basic of estate planning documents), Pennsylvania law can determine how your assets will be distributed to your heirs.
You can avoid this process by drafting a will. This legal document allows you to name beneficiaries, appoint guardians for minors, and choose an executor for your estate, who will be responsible for abiding by your wishes as determined in your will.
2. Name a Power of Attorney
A power of attorney (POA) document gives someone the ability to make financial and legal decisions for you if you cannot do so due to illness or incapacity. For example, they can sell your house or manage your bills.
3. Prepare an Advance Healthcare Directive
What kind of healthcare do you want in the future? An advanced healthcare directive is a variety of documents with instructions about the treatment and care you wish to receive. They include documents like a living will or a healthcare power of attorney.
4. Consider the Benefits of Trusts
A trust is designed to safeguard money and other assets for your heirs. You get to decide what goes into a trust, who gets what, and how it will be distributed.
The following are common types of trusts:
- Revocable living trusts. This trust offers the option to revise or end it at any point before you pass.
- Irrevocable trusts. Once you’ve created this trust, it cannot be changed or terminated. While an irrevocable trust protects against lawsuits, creditors, and taxes, it lacks the flexibility of a revocable trust.
5. Get to Know Pennsylvania Estate and Inheritance Tax Laws
Estate planning in Pennsylvania includes understanding the unique estate and inheritance tax laws. Taxation rates can differ based on the relationship of the heir to the decedent.
6. Work With a Trusted Team
Working with a reputable attorney who specializes in estate planning will ensure your needs are listened to and the documents are structured according to your wishes.
An attorney can help you determine the best course of action for your estate plan and regularly update it as needed. With the right team by your side, you can feel confident knowing your estate planning needs are covered.
The Estate Planning Professionals at Auld Brothers Law
Auld Brothers Law Group specializes in estate planning in Pennsylvania. We’re here to guide you through legal processes by helping you plan, manage, and preserve your estate for future generations.
Auld Brothers Law is committed to serving our clients and their families. We provide easy-to-understand information about your unique circumstances. Reach out to us today to get started with your estate plan.