Drafting a will and creating an estate plan is not something most people like to think about. However, regardless of your age or socioeconomic status, a solid estate plan can protect your interests and the legacy you leave behind. Seeking the counsel of estate planning attorneys can help to ensure your wishes are carried out, make things easier for your loved ones, and give you peace of mind.

Important Questions to Consider

Lawyers who specialize in wills recommend taking some time to consider your wishes for what will happen after you pass away and who you want to manage your affairs if something were to happen while you are still alive. You may want to ask yourself these important questions:

• Who do I want to decide on my behalf if I am incapacitated?
• What types of medical care and life-sustaining measures do I want if I become ill or injured?
• Who will I name as guardians for my minor children?
• How do I want my estate to be divided after my death?

Although it can be a difficult subject to breach, discussing these matters with your loved ones and an attorney can help you create an estate plan that works best for your family.

How an Estate Planning Lawyer Can Help

There are several essential elements that go into creating an estate plan. In addition to drafting a will, estate planning lawyers can help you create powers of attorney, trusts, and any other legal documents that might be useful in your specific circumstances. If you own a business, it is vital to think about business succession planning if you haven’t already. It often goes hand in hand with estate planning and can keep your business rolling along smoothly in the event of your retirement, illness, or passing.

Wills

Creating a will can help your loved ones avoid a lengthy probate process and ensure your wishes are carried out as you intended. You can name guardians for minor children, specify how your assets will be dispersed, and include details about how you’d like personal items to be distributed.  You can also name caretakers for your pets and include specifics about their care.

Trusts

Trusts are valuable estate planning tools that can also allow you to specify how to distribute assets, provide tax advantages, and help assets avoid probate so beneficiaries have access to them sooner. If you have children or other loved ones who need someone to manage money or assets for them, a trust ensures those funds and property are used according to your wishes.

Powers of Attorney

Durable powers of attorney help protect you in the event you become unable to make decisions for yourself. A power of attorney for health care allows you to name an agent to make medical decisions for you. This document outlines what kind of medical care you want and what you don’t want. You can also include an advance directive, which enables you to express your wishes for end-of-life care.

In a power of attorney for finances, you name an agent to handle your financial affairs should you become incapacitated. It can be as specific or as broad as you would like. Your agent can do things like pay bills, sell property, and manage assets on your behalf.

Thinking about what may happen after you are gone can be overwhelming. Estate planning lawyers guide you through the process and provide compassionate, practical advice that meets your needs. If you are looking for an estate planning law firm in eastern Pennsylvania, our team can help.

If you hold considerable amounts of debt, you may wonder whether your spouse or other family members will be responsible for paying it after you are gone. Even if you have a substantial estate and little debt, it is beneficial to understand how it may affect the assets you leave to your loved ones. An experienced estate planning attorney can help you address these issues and create an effective plan that protects your family’s financial interests.

How Debts are Paid After Someone Dies

When someone dies, both their assets and debts pass to their estate. This means that generally, the deceased person’s estate must take care of any unpaid debts. If there is not enough property or money, debts may go unpaid. In Pennsylvania, most assets must go through probate unless they are held in a trust. Accounts payable on death and funds from life insurance policies can also skip probate.

One of the first steps an executor or administrator must take is to notify creditors of the person’s death. The executor or personal representative must advertise the decedent’s death in two newspapers in the county where they resided for three weeks. Creditors have one year to submit their claims against the estate to receive payment for any unpaid debts. A lawyer can explain the probate process so the executor and beneficiaries understand how it works.

The executor or personal representative must pay inheritance taxes, medical bills, funeral expenses, court costs, and any other outstanding debts that may be left behind. If necessary, the executor may liquidate and sell assets to cover all debts of the deceased person. Once all debts are paid, any remaining assets will be distributed to beneficiaries according to the will or the laws of intestacy.

However, if the funds are distributed to beneficiaries and the estate does not have enough funds to cover other claims brought within the one-year period, the personal representative or executor can be held personally liable for paying these creditors.

What is an Insolvent Estate?

If an estate does not have enough assets to pay off debts, it is considered insolvent. In Pennsylvania, certain debts and expenses must be paid and prioritized in the following order:

1. The costs of estate administration, such as attorney fees, court costs, and the personal representative’s fees

2. The family exemption, which provides $3,500.00 for each family member who lived with the person at the time of their death

3. Funeral and burial costs, medical expenses, Medicaid costs, and any services performed by employees within the last six months

4. Cost of the grave marker

5. Rent for the deceased person’s home for the six months preceding their death and any claims by the Commonwealth of Pennsylvania

6. All other claims, such as medical bills and rent owed previous to the last six months of the person’s life

While some creditors of an insolvent estate may be paid, some may only receive a portion of what is owned or nothing at all.

Could I Be Held Personally Responsible for a Loved One’s Debt?

Generally, individuals are not required to pay the debts of someone who dies. However, there are rare exceptions to this rule, such as:

• You were a joint account owner with the deceased
• You were a co-signer on a loan
• In certain community property states, a spouse may be responsible for paying their deceased spouse’s debt that was acquired during the marriage.

Even if you were an authorized user on a credit card that belonged to the person who died, you are not responsible for paying their credit card debt. If creditors contact you about someone else’s debt, a family wills and trusts lawyer can advise you on whether you are legally obligated to repay it.

It is important to consider how your debts may affect the distribution of your estate when you pass away. The experienced estate attorneys at our law firm in West Chester can help you create a plan that keeps your loved one’s interests in mind.

 

A letter of instruction can help your loved ones tie up loose ends and give them peace of mind after your passing. Although it is an informal document, lawyers who specialize in wills often encourage clients to create one as part of their estate plan. A letter of instruction enables you to clarify your wishes and address matters that may not be in your will and gives you the freedom to offer personal messages to your family and friends.

What is in a Letter of Instruction?

Also known as a letter of intent, a letter of instruction may include everything from social media passwords to specifics about your wishes for funeral arrangements. It can also provide an easy-to-follow guide for the executor or personal representative in charge of settling your estate. Your estate planning attorneys can help you write up a letter of intent and ensure it covers everything you wish to address.

A comprehensive letter of instruction may include:

• A list of all your assets
• Information about where any tangible assets are located
• A list of bank, brokerage, investment, and retirement accounts
• Names and contact information for any financial professionals who handle your assets
• Usernames and passwords for accounts, social media, email, and websites or apps
• Specifics about how to disperse personal items like jewelry, family heirlooms, photos, etc.
• The location of financial and legal documents such as wills, trusts, insurance policies, bank statements, tax returns, birth certificates, and titles or deeds for real estate, and vehicles
• A list of beneficiaries and their contact information
• Locations of safe deposit boxes and keys
• Information about any debts, such as credit cards, loans, and mortgages, and contact information for debtors
• Details and contact information for all insurance policies, especially life insurance
• Instructions for the care of any pets
• Instructions for final arrangements
• Your preferred charities for donations if applicable
• Any personal messages you’d like to convey to loved ones

A Letter of Instruction Eases Your Loved Ones’ Burden

Having all of this information in one place can make it much more convenient and less stressful for your executor and loved ones. Discussing these matters can be challenging, and a letter of instruction enables them to know exactly what you would have wanted.

A letter of instruction can cut down on conflict, provide comfort, and give family and friends more time and energy to support each other after a loss. Make sure to review and update your letter of intent with your estate planning lawyers every so often to ensure the information in it is up to date.

Our experienced team of attorneys and legal professionals offer comprehensive estate planning services that protect your interests and the legacy you wish to leave behind.