This firm concentrates in estate administration in decedents’ estates. We are often called on to represent the executor or trustee in the process of administering a decedent’s estate. Services in this area include preparation of inheritance tax returns, appearing with the Executor at the Register of Wills, administering the estate or trust, paying bills and gathering assets, and distributing assets to beneficiaries.
What is Probate?
Probate is the process by which the person named as executor of a decedent’s Will submits the original Will (along with a death certificate and petition) to the Register of Wills for his appointment as executor of the decedent’s estate. If the will has been duly proved (witnessed and notarized) and there is no contest with respect to the validity of the will (see “Will Contest” below), the Register of Wills will issue Letters Testamentary to the named executor.
What is Intestacy?
Intestacy is death without a will. Intestacy can also occur when a decedent has not fully disposed of his or her assets by a Will or other beneficiary designation. In these instances, the decedent’s property will not pass under a will and instead will pass under Pennsylvania’s Intestate Succession Act. The person appointed by the Register of Wills to handle the estate of an intestate decedent will receive Letters of Administration and is referred to as the administrator. The Orphans’ Court has jurisdiction over all matters of intestate succession.
How Long Will the Administration Take?
This is one of the most commonly asked questions. The length of the administration depends upon the involvement and cooperation of the client and the complexity of assets. If information is exchanged in a timely and accurate manner, the administration process is much more efficient. Given these factors, the average estate or trust administration can take nine months to one year to complete. Some estates take less.
Pennsylvania Inheritance Tax:
The Pennsylvania inheritance tax return and payment of tax are due nine (9) months from the date of death. A small discount may be taken if a prepayment is made within three (3) months of the date of death. Pennsylvania inheritance tax is payable on all assets except for life insurance. Currently the inheritance tax rates are as follows: 0% to surviving spouse; 4.5% to lineal heirs (children, grandchildren and parents); 12% to siblings; 15% to non-relatives; 0% to qualified charities.
Pennsylvania Estate Tax:
Pennsylvania estate tax is in addition to the inheritance tax and applies only when there is a federal estate. The Pennsylvania estate tax is equal to the difference between the federal credit for state death taxes and inheritance tax actually paid. Payment of the estate tax is due within nine months of the date of death.
Income Taxes:
The executor/administrator or trustee is responsible for filing the decedent’s current year income tax return for the year preceding death and decedent’s final income tax returns for the period of January 1 of the year the decedent died to the date of death. The executor/administrator or trustee is also responsible for filing the fiduciary income tax returns for the estate and/or trust for each year the estate and/or trust is active.
Will Contests:
Who can contest a decedent’s will? Any aggrieved party, the surviving spouse who would have received a larger share under another will, a trustee whose trust estate is prejudiced; the decedent’s intestate heirs; beneficiaries under a prior will; persons who would take in the default of the exercise of a power of appointment; mortgage of an heir; the Commonwealth as a statutory heir if it is questionable whether decedent had close relatives. What are grounds for a will contest? Lack of testamentary capacity, undue influence, fraud, forgery, mistake in the identity of document executed by decedent; testamentary intent; and, improper execution.