Estate Administration

Estate administration is the legal process of managing and distributing the assets and addressing the liabilities of a deceased individual, “the Decedent”.

Estate Administration typically involves several key steps, including:

Appointment of Executor or Administrator: If the decedent left a valid will, they likely appointed an executor to oversee the administration of their estate. If no executor was appointed or if the appointed executor is unable or unwilling to serve, the court will appoint an administrator to fulfill this role.
Inventorying Assets: The executor or administrator is responsible for identifying and inventorying all assets owned by the decedent. This may include real estate, bank accounts, investments, personal property, business interests, and more.
Paying Debts and Taxes: Before distributing assets to beneficiaries, the estate administrator must use estate funds to settle any outstanding debts of the decedent, including funeral expenses, medical bills, and creditors' claims. Additionally, inheritance taxes, estate taxes and income taxes owed by the decedent or the estate must be paid.
Distributing Assets: Once all debts and taxes have been paid, and the Pennsylvania Inheritance Tax Return has been properly filed, the remaining assets can be distributed to beneficiaries according to the terms of the decedent's will or the laws of intestacy if there is no will.
Final Accounting and Closing of Estate: The executor or administrator may be required to prepare a final accounting of the estate's financial transactions and submit it to the probate court for approval. Once approved, the estate can be formally closed.

How We Can Help

Navigating the estate administration process can be complex and time-consuming, especially during a period of grief and emotional strain. Our experienced team of estate planning attorneys is here to provide you with the guidance and support you need.

We offer a range of services to assist executors and administrators, including:

Legal advice and guidance on estate administration procedures
Assistance with probate court filings and documentation
Resolution of estate-related disputes and challenges
Asset management and distribution strategies
Tax planning and optimization to minimize tax liabilities

With our expertise and personalized approach, we'll help you navigate the estate administration process efficiently and effectively, ensuring that the decedent's final wishes are honored and their legacy preserved.

Contact Us Today

If you're facing the task of estate administration, don't navigate it alone. Contact us at (215) 647-6800 today to schedule a consultation and learn how we can assist you in managing the estate with care, diligence, and respect for the decedent's wishes.

When is It Necessary to Probate an Estate?

In Pennsylvania determining whether probate is necessary depends on several factors, including the nature and value of the deceased individual's assets, how those assets are titled, and where the assets are located. Here are some general guidelines to help you assess whether probate is required:

Type of Assets: Assets held solely in the deceased individual's name typically require probate to transfer ownership to the heirs of the decedent. Common examples include real estate, bank accounts, investments, vehicles, and personal property. However, assets held jointly with rights of survivorship or assets with designated beneficiaries (e.g., life insurance policies, retirement accounts) may pass directly to the surviving joint owner or beneficiary outside of probate.
Presence of a Will: If the deceased individual left a valid will, the probate process typically involves validating the will and executing its provisions. However, even if there is no will (intestacy), probate may still be required to administer the estate and distribute assets according to Pennsylvania law.
Debts and Creditors: Probate may be necessary to address outstanding debts and creditors' claims against the deceased individual's estate. The probate process provides a mechanism for resolving these claims and ensuring that creditors are paid from estate assets before distribution to beneficiaries.
Real Estate Ownership: If the deceased individual owned real estate solely in their name or as a tenant in common, probate is generally required to transfer ownership to heirs or beneficiaries. Real estate is a common asset that often necessitates probate proceedings.

To determine whether probate is necessary in your specific situation, call the Law Offices of Carla Trongone to speak with an experienced probate attorney. We can evaluate the assets, debts, and other relevant factors involved in the estate and provide personalized guidance on the appropriate steps to take.

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Understanding Probate v Non-Probate Assets in Pennsylvania

Welcome to our guide on probate vs. non-probate assets, designed to provide clarity on the legal distinctions between these two categories and help you navigate estate planning and administration in Pennsylvania.

Probate Assets: Probate assets are those that must go through the probate process upon the death of the owner before they can be transferred to heirs or beneficiaries. In Pennsylvania, probate assets typically include:

Real Estate: Any real property owned solely by the deceased individual or held as a tenant in common may be subject to probate. This includes homes, land, and other real estate holdings.
Bank Accounts:Bank accounts held solely in the deceased individual's name without designated beneficiaries may be subject to probate. However, accounts with payable-on-death (POD) or transfer-on-death (TOD) designations pass directly to the named beneficiaries outside of probate.
Investments: Stocks, bonds, mutual funds, and other investment accounts held solely in the deceased individual's name may be subject to probate. However, accounts with beneficiary designations or held in trust typically bypass probate.
Personal Property: Personal belongings, vehicles, jewelry, and other tangible assets owned solely by the deceased individual may be subject to probate unless they are transferred outside of probate through mechanisms such as joint ownership or beneficiary designations.

Non-probate Assets: Non-Probate assets are those that pass directly to designated beneficiaries upon the death of the owner and do not require probate proceedings. In Pennsylvania, Non-Probate assets may include:

Jointly Owned Property:Property held jointly with rights of survivorship, such as joint bank accounts or real estate owned as joint tenants with rights of survivorship, passes directly to the surviving joint owner(s) outside of probate.
Beneficiary Designations: Assets with designated beneficiaries, such as life insurance policies, retirement accounts (e.g., IRAs, 401(k)s), and payable-on-death (POD) or transfer-on-death (TOD) accounts, bypass probate and transfer directly to the named beneficiaries.
Trust Assets:Assets held in a revocable or irrevocable trust typically pass outside of probate according to the terms of the trust agreement, avoiding the probate process altogether.
Certain Contracts and Agreements: Assets held in- certain types of contracts or agreements, such as annuities or certain types of joint tenancies, may pass directly to beneficiaries outside of probate.

How We Can Help

Navigating the complexities of probate and non-probate assets requires careful planning and consideration. Our experienced estate planning attorneys are here to assist you in developing a comprehensive estate plan tailored to your individual needs and goals.

Whether you're looking to minimize probate costs and delays, maximize asset protection, or ensure efficient asset distribution to your loved ones, we'll work closely with you to explore all available options and create a plan that meets your objectives.

Contact Us Today

If you have questions about probate vs. non-probate assets or need assistance with estate planning in Pennsylvania, don't hesitate to contact us. Schedule a consultation with our knowledgeable legal team to discuss your estate planning goals and explore how we can help you achieve peace of mind for the future. Call (215) 647-6800.

Executor Duties

An executor's main duty is to carry out the wishes and instructions outlined in a person's will after their death. This includes locating and managing all assets and liabilities, such as bank accounts, investments, and debts, and distributing them according to the deceased's wishes. The executor is responsible for filing necessary legal documents, paying any outstanding taxes or debts, and ensuring that the estate is settled in a fair and efficient manner. Additionally, the executor may also be responsible for handling any disputes or claims that may arise during the probate process.

Understanding Pennsylvania Inheritance Taxes

In Pennsylvania, the inheritance tax is a state tax imposed on the transfer of assets from a deceased individual's estate to their beneficiaries. Generally, this tax is imposed on both Probate and Non-Probate assets.

Who is Subject to the Inheritance Tax?

The Pennsylvania inheritance tax applies to transfers of property from a deceased individual's estate to beneficiaries.
Beneficiaries may include heirs named in the decedent's will, as well as individuals who inherit assets through intestate succession (i.e., when there is no valid will).

Tax Rates and Exemptions

Pennsylvania's inheritance tax rates vary depending on the relationship between the deceased individual and the beneficiary.

As of 2024, the tax rates generally are as follows:

0% for transfers to a surviving spouse
4.5% for transfers to children, grandchildren (lineal descendants)
12% for transfers to siblings
15% for transfers to other beneficiaries, including nieces, nephews, and unrelated individuals
*There are notable exceptions to these tax rate classes that can result in a substantially reduced tax rate. You should consult with an attorney to ensure the appropriate tax rate is applied to your situation.

Filing Requirements and Deadlines:

The executor or administrator of the deceased individual's estate is responsible for filing the Pennsylvania inheritance tax return
Any inheritance tax payment or pre-payment made within three months of the decedent’s death is given a 5% discount is provided to those paid taxes when the return is ultimately filed.
The inheritance tax return, Form REV-1500, must be filed with the Pennsylvania Department of Revenue within nine (9) months of the decedent's date of death. If the REV-1500 is filed later than nine (9) months, then the taxes due will begin to accumulate interest.

How We Can Help

Understanding and navigating Pennsylvania's inheritance tax laws can be complex, especially during a time of loss. Our experienced estate planning attorneys are here to provide guidance and support to executors, administrators, and beneficiaries throughout the inheritance tax process, including the preparation of the PA-1500 Inheritance Tax Return.

Contact Us Today

If you have questions about Pennsylvania inheritance tax or need assistance with estate planning and administration, don't hesitate to reach out. Schedule a consultation with our knowledgeable legal team to discuss your concerns and learn how we can help you navigate the complexities of inheritance tax law effectively and efficiently.

Call (215) 647-6800