ESTATE PLANNING IN PENNSYLVANIA
WHY YOU NEED A WILL IN PENNSYLVANIA:
There are many reasons why preparing your will is a good idea if you are a resident of Pennsylvania. If you are a resident of Pennsylvania and married with children, a will is an important document to have to ensure your family is protected. Without a will in Pennsylvania, the intestacy laws of Pennsylvania will control how your probate assets are disbursed upon your death. An important distinction should be noted between Probate and Non-Probate assets.
Non-Probate Assets:
1. A Life Insurance policy that names a beneficiary other than the decedent or the estate.
2. 401K
3. Real Estate held as joint tenants with rights of survivorship and tenants by the entireties.
4. Roth and Traditional IRAs
5. Payable on Death Accounts
6. Joint Checking Accounts
7. Brokerage accounts that list someone other than the decedent as the beneficiary.
Probate Assets:
1. Real property titled in the decedent’s name or held as a tenant in common.
2. Personal property such as jewelry, artwork, furniture, and automobiles.
3. Ownership interests in partnerships, corporations, and limited liability companies.
4. A life insurance policy or brokerage account that lists either the decedent or the estate as the beneficiary.
The intestacy laws of Pennsylvania control how your assets are distributed in the event you pass without a will. A person passing with a spouse and children will have their probate estate distributed with their surviving spouse receiving $30,000 plus one half of the remaining balance of the estate. The surviving children also receive one half of the remaining estate. If the decedent passed with children from another marriage, the surviving spouse would no longer receive the first $30,000 but would still receive one half of the estate. In the event a person passes without a spouse or children, their estate will go to their parents. For more information on the Intestacy Laws of Pennsylvania see 20 Pa C.S.A. § 2101.
DISCLAIMER:
This article is designed and intended to provide general information only. Nothing written in this article is intended to be used as legal advice or to create an attorney client relationship.