• West Chester Pa Probate Lawyers •

• John B Whalen Jr Esq •

Home • Blog • Page 2

Blog

West Chester Pa Estate Planning

west-chester-pa-estate-planning-lawyer

Pa Estate Planning

An attorney who specializes in Pa Estate Planning can help you create a complete plan (including Pa Last Wills, Pa Powers of Attorney, and Pa Living Wills, etc.) to protect your spouse and children if you become unable to manage your financial affairs. Pa Estate Planning allows you to make decisions now so your wishes can be carried out if you die or become incapacitated.

Pa Powers of Attorney

When you execute a legal document called a power of attorney, you are authorizing another individual to make certain decisions on your behalf. The person who signs the document is called the principal and the person who is authorized to make decisions is known as the agent or attorney-in-fact.

A limited power of attorney restricts the permissible activities of the agent to a specific period of time. For instance, if you are in the military and are being deployed overseas for six months, you can set up a limited power of attorney with an individual you trust. That person may be granted access to your bank account so they can pay your mortgage or other monthly expenses while you are away from home.

A durable power of attorney, unlike other forms of this type of legal document, does not expire if the principal becomes incapacitated. The agent may continue to make financial and medical decisions as indicated in the original document.

Pa Living Wills

Living wills are also referred to as an advance directive or a health care directive. It is a legal document that communicates your desire in the treatment of serious medical problems in the event that you are unable to speak for yourself. They do not go into effect unless you are incapacitated and unable to express yourself. Having a living will can relieve your close relatives from the burden of having to make the decision about whether to remove you from life support.

Pa Trusts

Trusts are legal documents that allow you to control how your assets will be allocated or managed. You are considered the grantor and the person that manages and distributes assets in the trust is known as the trustee. Individuals who receive money or other assets are the beneficiaries.

Property placed in a trust, unlike wills, is not subject to probate. You can also create a revocable trust which can be canceled or revoked at any time while you are alive. Trusts can be set up for a child’s education or to reduce estate taxes.

Pa Last Wills

A Will is an important document to execute in order to avoid disputes about how your assets will be divided when you die. The executor who administers the distribution of assets from your estate will allocate your possessions as you specified. You should periodically review your Will to make sure it is still relevant and accurate. Life changing events, such as the birth of a child or a marriage, may require amendments to the original document.

If you die without a will, you are said to die intestate. In such a case, the state will handle your estate and your assets may not get to the people, institutions or charitable causes that you wanted.

Planning Ahead is Important

For the average person, all of these documents can seem confusing and a bit overwhelming. Estate planning attorney John B. Whalen, Jr. can help you decide which documents you need and how best to plan ahead so that your wishes are carried out.

West Chester Pa Estate Taxation

west-chester-pa-estate-taxation-lawyers

Pa Estate Taxation

When an individual acts in a fiduciary capacity such as a Pa Executor of a Pa Last Will or a Pa Trustee of the financial assets of another person or entity, they have the responsibility of keeping accurate financial records.

Those records should show how money was spent, invested or distributed while under the fiduciary’s care and control. Proper accounting can bring to light the mismanagement or bad investment of funds should an issue arise with an interested party.

Interests Served

There can be a number of interested parties who may want to examine the financial records and approved fiduciary accountings. They are entitled to receive copies of all the materials such as profit and loss statements, expense reports and tax returns. You may request documentation if you are:

  • a beneficiary of an estate or trust
  • a principal of an agent acting on your behalf
  • a minor whose care is being administered through a third party fiduciary agent
  • the court who must evaluate financial matters in relation to a trust or estate

Approved Fiduciary Accountings

Certain procedures must be followed when reports are prepared to explain how the assets in an estate or trust were managed. Approved fiduciary accountings require the separation of principal and interest. You can not commingle funds that are considered principal with those that are considered income.

  • Principal = original investment + capital gains – capital losses – expenses – distributions
  • Income = money generated from the investment or use of principal

The main reason for keeping principal and income in separate accounts is that the beneficiaries of income in a trust or estate may be different than the beneficiaries of the principal in the same estate or trust.

Fiduciary Tax Returns – Form 1041

A trust or an estate is considered a separate legal entity from an individual who may be a beneficiary of that trust or estate. Therefore, it is incumbent upon the fiduciary administering the estate or trust to file a federal tax return under certain conditions.

The IRS requires a trust to file a tax return if it has any taxable income or has gross income of at least $600, regardless of whether it is taxable or not. Estates must file Form 1041 if they have gross income of $600 or more. A fiduciary must also file a return if any of the beneficiaries of the estate or trust is a non-resident alien.

Form 1041 is similar to the 1040 return used by individuals. The form is designed so estates and trusts can report income, deductions, gains, losses and any other pertinent financial information. Before funds or assets can be distributed, any tax liabilities of the estate or trust must be satisfied.

Closing Out a Fiduciary Relationship

Once all of the assets of an estate or trust have been distributed or otherwise settled, it is customary that the fiduciary is released from further responsibility. That may be done by signing a release form through the court or an agreement with the beneficiaries of the estate or trust.

Dealing with estate taxation can be complex. Estate taxation attorney John B. Whalen, Jr., provides guidance to his clients when dealing with these complicated issues.

John B. Whalen, Jr., JD., LL.M., is an AV Peer Review Rated Preeminent5.0 and Avvo Rated 10.0 Superb (obtaining over 95 client reviews and peer endorsements) premier and prestigious Attorney and Counselor at Law.

He is featured on Martindale.com, Nolo.com, Avvo.com, Lawyers.com, Justia.com, and Linkedin Premium.

He serves all surrounding counties, on all 7 days, from 9:00 AM to 10:00 PM, and on evenings, weekends, and holidays.

He provides free initial consultations all seven days, provides home visits, a provides flat fee client structures.

He is located at 1199 Heyward Road, Wayne, PA, 19087, and can be reached by email at jw60297@me.com, and by telephone at 1-610-407-0220.

He has amassed over 60 prestigious and premier professional awards and over 5000 client reviews and endorsements.

He concentrates his three decade career in the legal areas of Pa Probate, Pa Estate Planning (including Pa Last Wills, Pa Powers of Attorney, Pa Living Wills), Pa Estate Administration, Pa Estate Taxation, Pa Estate Litigation, Pa Beneficiary Representation, and Pa Guardianships. 

West Chester Pa Trusts

west-chester-pa-trust-lawyers

Pa Trusts

A living trust allows you to place assets under the care of a trustee who then distributes them to your beneficiaries in accordance with your wishes. A living trust, in contrast with a testamentary trust, comes into existence while you are still alive. Pennsylvania’s trust law is based on the Pennsylvania Uniform Trust Act.

Pa Trust Parties

Three parties are required to create a living trust: The settlor, or trustor, is the party who creates the trust, sets its terms and deposits assets into it. The trustee is the person that administers the trust in accordance with the terms you, as the settlor, have set. You may appoint yourself as the trustee. Beneficiaries are the persons or organizations you appoint to receive the trust assets. A trust may include other parties as well; for example, you may name either a successor trustee or a trust protector whose sole function is to hire and fire trustees.

Pa Trust Creation

A living trust is created when you draft and sign a Declaration of Trust. The Declaration of Trust identifies the parties to the trust, specifies whether it is revocable or irrevocable, and tells the trustee how to distribute trust assets. The Declaration of Trust may give the trustee specific instructions on how to distribute the trust’s assets or allow the trustee broad discretionary authority. For example, the trustee may be permitted to invest the trust assets and distribute only capital gains to the beneficiaries. If the trust is revocable, as most are, you may modify or terminate it at any time. Pennsylvania, unlike many other states, allows you to modify or terminate a living trust, even an irrevocable one, if you can secure the unanimous consent of the beneficiaries.

Pa Probate

The assets of a Pa Living Trust are not subject to the Pennsylvania Probate process. The Pa Trustee may immediately distribute trust assets to beneficiaries to the extent expressed in the trust document grants him the authority to do so. Assets may be distributed without seeking approval from the estate executor or probate court.

West Chester Pa Guardianships

west-chester-pa-guardianships-lawyers

Guardianship is a legal situation granted by the court to appoint an individual to assist and protect the legal rights of someone who is physically or mentally unable to care for his or her own needs.

Once appointed, the guardian is legally bound to act in the individual’s best interests. Guardians can be given specific authorities, such as the authority to handle the financial and legal affairs of the individual, or they may be granted larger authority, depending on the needs of the individual.

Setting up a legal guardianship can sometimes get complex, especially if other family members are not in agreement as to who the guardian should be. That is why the assistance of a Pennsylvania guardianship attorney is so valuable. Attorney John Whalen has been serving the people of Pennsylvania for over 20 years, and brings compassion and knowledge to the guardianship process.

Complex Considerations

In a guardianship case, the interests of many parties need to be considered. First and foremost are the interests of the individual who needs guardianship. The guardian needs to be someone who will protect the interests and safety of the individual who needs help. When working on guardianship cases, Attorney Whalen ensures that everyone’s best interests, including the individual who needs help the most, are protected and considered.

Yet that’s just one aspect of a guardianship case. Sometimes the children or loved ones of the individual are not in agreement about who should be the guardian. In other cases, the individual who needs support may not be willing to accept it, and the case may need to go to court to prove that guardianship is required. Handling these cases requires skill and understanding, and that is exactly what Attorney Whalen offers.

Compassionate Legal Care

The guardianship process can be filled with emotions. Realizing that a loved one is no longer capable of caring for his or her self can be difficult to accept. That’s why you need an attorney who offers legal services with compassion. For the past two decades, Attorney John Whalen has built a reputation for providing compassionate legal care for his clients, putting their needs and interests first while navigating emotionally trying circumstances.

If you or someone you love needs the help of a legal guardian, Attorney John Whalen is ready to help. Schedule a free initial consultation to discuss your concerns and questions, and get started on the guardianship process.

John B. Whalen, Jr., JD., LL.M., is an AV Peer Review Rated Preeminent 5.0 and Avvo Rated 10.0 Superb (obtaining over 95 client reviews and peer endorsements) premier and prestigious Attorney and Counselor at Law. He is featured on Martindale.com, Nolo.com, Avvo.com, Lawyers.com, Justia.com, and Linkedin Premium.

West Chester Pa Probate Law

west-chester-pa-probate-lawyers

The Pa Probate process, itself, is a very simple process. However, it is merely the beginning of the Pa Estate Administration (also known as the Pa Estate Settlement) process, which involves settling a decedent’s affairs, and can (and does) involve many, many other steps, depending on many, many other things.

Pa Probate – Definition

In United States law and terminology, “probate” refers to proving that a will is valid.

In many U.S. states, a person would petition the court for probate, and then add the will that is to be considered to their petition.

Once probate is approved by the court, the petitioner officially becomes the Executor and then has full legal rights to be able to deal with the deceased individual’s estate.

Pa Probate – Misunderstandings

Although some states do have onerous Probate procedures (where “avoiding probate” may be a prudent strategy), Pennsylvania is not one of those states, In fact, Pennsylvania is very “Probate-Friendly.”

The most common misconception that surrounds a Pa Last Will is the process called “Probate” and the seemingly universal theme that it should be avoided at all costs.

Again, and virtually to the contrary, the word “Probate” is merely based on the Latin verb that means “to prove.” Nothing more!

West Chester Pa Last Wills

west-chester-pa-last-wills-lawyers

A Will can grant your boss (Executor) the ability to administer your Estate.

With respect to additional traits that your boss should possess (in addition to being able and willing), I have found that your boss (Surrogate) should also be stoic and stro

The most common misconception that surrounds a Will is the process called probate and the seemingly universal theme that it should be avoided at all costs.

Again, and virtually to the contrary, the word probate is merely the Latin infinitive verb that means to prove, and, although some states do have onerous probate procedures (where the avoidance of probate may be a prudent strategy), Pennsylvania is not one of those states.

In fact, probating a Will in Pennsylvania is very simple.

Also very important is the fact that a Will only disposes of the assets (1) that you own in your individual name alone and (2) that possess no beneficiary designations (i.e., no tags).

Consequently, items owned jointly with another are controlled by property law (not Will law) and will pass to the joint owner(s) at your death, and items that have beneficiary designations will be controlled by contract law (not Will law) and pass to the designated beneficiaries at your death.