WHAT YOU NEED TO KNOW ABOUT SETTING UP AN ESTATE

1. What is an Estate?
2. What is an executor/executrix?
3. What if there is no executor/executrix?
4. What exactly does and executor/administrator do?
5. I’m ready to write my will, whom should I appoint as executor?
6. I have been appoint executor/administrator of an estate, Do I need to hire an attorney?
7. Who takes care of planning and paying for the decedents funeral?
8. What is Probate and is it necessary?
9. Where should the estate be probated?

1) What is an estate?

An estate includes all of the property owned by your loved one at the time of death. The property is distributed in accordance with the terms of a will, and/or by the beneficiary designation of a particular asset.  When there is no will, property is distributed by the intestate laws of the state where the decedent was domiciled. 

2) What is an executor/executrix?

An executor/executrix is someone who handles the affairs of a deceased person.  When an individual dies owning real property or valuable personal property, it is necessary to appoint a personal representative to administer the estate.  If the deceased person in their will selects a personal representative, they are called an executor (male) or executrix (female). 

3) What if there is no executor/executrix?

Even if the decedent left no will, an estate will still have to be set up and a personal representative will have to be appointed by the court to oversee the estate. Usually a spouse or adult children of the decedent are selected for this task unless there is a successful challenge by other interested parties.  If a person dies without a will, they are said to have died intestate.

4) What exactly does an executor/administrator do?

It is the duty of the personal representative (executor or administrator) to initiate the probate proceeding, collect and inventory the decedent’s assets and debts, pay any creditors, distribute the balance to those who are entitled to it, and close the estate.  In addition, in Pennsylvania, the personal representative is also responsible for preparing and filing a Pennsylvania inheritance tax return, a federal estate tax return (if needed), decedent’s final lifetime income tax returns (federal and state) and preparing any other death tax returns needed for property located in other states.  The executor is entitled to compensation for time and expenses spent during the process.

5) I have been appointed executor/administrator of a will.  Do I need to hire an attorney?  And if so, how do I select one?

Regardless of the size of the estate, there are legal and tax matters that must be handled properly.  Attorneys who are familiar with estate work in Pennsylvania have procedures in place for ensuring the timely preparation and filing of the appropriate forms, documents, or other information.  Therefore, it is generally worth the cost and time saved to hire an attorney to handle many of these details for you.  Most importantly, choose an attorney with whom you feel comfortable.  Pachtman Law Office has been assisting people with probating estates since 1984.

6) Who takes care of planning and paying for the decedent’s funeral?

The necessary arrangements for the funeral and burial are usually the responsibility of the immediate family.  However, in the end, the executor receives the bill and pays the costs from the assets of the estate. 

7) What is probate and is it necessary?

Probate is the process by which a personal representative is appointed to handle the affairs of the deceased.  At the same time, the validity of the will and the competence of the testator are examined if any of the potential beneficiaries contest the will. 

Probate is not always necessary.  If all a person’s assets will pass automatically under the terms of joint ownership, then there is no need for probate.  For example, if the decedent was married, and his only assets of value when he died were jointly owned with his wife, there is probably no necessity for probate. 

8) Where should the estate be probated?

The estate should be probated where the decedent was domiciled, i.e., wherever he or she made their permanent home.  In the case of a “snow bird,” or someone else who splits time living in different states, it is important to determine which state has laws that are more favorable to you.  Then use that address for voting, income tax returns, drivers license, etc.  All of these constitute evidence of your intent to make that address your permanent home. 

Pachtman Law Office has been handling estate matters in Delaware County, Pennsylvania since 1984. Call Marc Pachtman, Esquire today to set up an appointment to discuss probating an estate or drafting a Will, a Living Will, or Durable Power of Attorney, or click here for more information. 610-859-3700