Estate Planning FAQs

Estate planning is organizing your financial affairs to ensure your assets are distributed according to your wishes after death or incapacitation. A well-crafted estate plan typically includes:

• A will to specify how your assets should be distributed.
• A trust (if applicable) to manage assets efficiently.
• Power of attorney (POA) for financial and medical decisions.
• An advance healthcare directive to outline medical preferences.
• Beneficiary designations for retirement accounts and life insurance.

Estate planning helps minimize taxes, avoid probate, and protect beneficiaries.

An executor is responsible for managing your estate after you pass away. When selecting an executor, consider:

• Trustworthiness – They will handle financial and legal matters.
• Financial knowledge – Ability to manage money and file taxes.
• Availability – Willing and able to dedicate time to estate administration.
• Legal familiarity – A basic understanding of probate and estate law helps.

Many choose a spouse, adult child, trusted friend, or professional executor (like an attorney or financial advisor).

Probate is the court-supervised process of distributing a deceased person’s assets. It involves:

• Validating the will (if one exists).
• Appointing an executor or administrator.
• Paying debts, taxes, and estate expenses.
• Distributing remaining assets to beneficiaries.

Not all estates require probate—assets with named beneficiaries, joint ownership, or trusts may bypass probate entirely.

Yes! Pennsylvania allows pet owners to include provisions for pet care in their estate plans. Options include:

• Pet Trusts – Legally binding, with funds set aside for care.
• Will Provisions – Naming a caretaker and providing financial support.
• Verbal Agreements – Informal but not legally enforceable.

A Pet Trust is the best option for ensuring long-term care.

A will is a legal document outlining asset distribution after death, while a trust holds assets and distributes them according to specific instructions.

Key differences:

• A will goes through probate, while a trust allows assets to pass outside probate.
• A trust helps avoid estate taxes, protect minor beneficiaries, and maintain privacy.

Even if you have a trust, you still need a will to cover any assets not included in the trust and designate guardians for minor children.

Yes, you can draft your own will in Pennsylvania, but to be legally valid, it must:

• Be in writing.
• Be signed by the testator (you).
• Be witnessed by two competent adults.

However, DIY wills can lead to errors, disputes, or probate delays. For complex estates, it’s best to consult an estate planning attorney.

To reduce estate taxes in Pennsylvania, consider:

• Gifting assets – You can gift up to $18,000 per year (2024 limit) tax-free.
• Setting up a trust – Certain trusts can lower taxable assets.
• Charitable donations – Reducing the taxable estate through donations.
• Life insurance planning – Keeping proceeds out of the taxable estate.

Pennsylvania does not have an estate tax, but it does impose an inheritance tax ranging from 0% to 15% based on the recipient’s relationship to the deceased.

Yes, estate plans can be modified anytime if you are mentally competent. You should update your estate plan when:

• You get married, divorced, or remarried.
• You have children or grandchildren.
• Your financial situation changes significantly.
• You move to another state (laws may differ).
• Your wishes for asset distribution change.

Changes are typically made through a codicil (for wills) or trust amendments.

The cost of an estate plan varies based on complexity and whether you hire an attorney. Estimated costs in Pennsylvania:

• Basic will: $250 – $1,000
• Comprehensive estate plan (will, POA, healthcare directive): $1,000 – $3,500
• Revocable living trust: $2,000 – $5,000

While DIY options are available, professional estate planning reduces legal risks and ensures accuracy.

Yes, having a will is essential to ensure your assets are distributed according to your wishes. Without a will, Pennsylvania’s intestate succession laws determine how your estate is divided, which may not align with your preferences. A will also allows you to designate a guardian for minor children and an executor to manage your estate.

Pennsylvania law dictates how your assets are distributed if you die without a will (intestate). Typically, assets go to your spouse and children, but if you have neither, they may go to other relatives such as parents or siblings. The state may take ownership of your assets if no relatives can be found. This process can be lengthy, costly, and may not reflect your wishes.

Your estate includes all assets you own at the time of death, including:

• Real estate (homes, land, rental properties)
• Bank accounts
• Investments (stocks, bonds, retirement accounts)
• Personal property (cars, jewelry, furniture)
• Business interests
• Life insurance proceeds (if payable to your estate)

Certain assets, such as life insurance benefits and retirement accounts with named beneficiaries, may bypass probate and go directly to the designated beneficiaries.

Yes, estate planning is not just for the wealthy. A solid estate plan ensures your wishes are honored, protects your family from unnecessary legal battles, and may help minimize taxes and probate costs. It can also include medical directives and powers of attorney, ensuring decisions are made in your best interest if you become incapacitated.

Yes, a will is still necessary even if you have a revocable living trust. A pour-over will ensure that any assets not transferred into the trust before your death are placed in the trust and distributed according to your wishes. A will also covers guardianship decisions for minor children, which a trust cannot do.

A comprehensive estate plan should include:

• A will
• A trust (if necessary)
• A durable power of attorney (for financial decisions)
• A healthcare power of attorney (for medical decisions)
• An advance healthcare directive (living will)
• Beneficiary designations on retirement accounts and life insurance
• Provisions for minimizing estate taxes (if applicable)

A revocable living trust is a legal entity that holds your assets while you’re alive and distributes them after your death according to your instructions. Since it can be modified or revoked, it offers flexibility. The key advantage is that assets in a trust avoid probate, allowing for faster and more private distribution to beneficiaries.

A power of attorney (POA) is a legal document granting someone else the authority to make financial or medical decisions if you cannot do so. A durable POA remains in effect even if you become incapacitated.

An advanced healthcare directive, also known as a living will, outlines your preferences for medical treatment if you cannot communicate your wishes. It may include instructions about life support, resuscitation, and end-of-life care.