Avoid Probate in Pennsylvania
Probate is the legal process that is used to administer the estates of descendants in Pennsylvania. A decedent’s estate includes all of the property they owned at the time of their passing. In Pennsylvania, estates that are valued at $50,000 or more must go through probate, which is often a lengthy process that comes with extra costs and delays. Understanding the intricacies of probate can help you more effectively plan your estate to preserve your assets for their intended beneficiaries.
What Assets Go Through Probate?
In Pennsylvania, all assets owned solely in the decedent’s name pass through probate. This could include real estate, bank accounts, investments, and/or personal property. These assets are devised to specific heirs in a decedent’s will or pass to their intestate heirs (if the decedent passed away without a valid will).
How to Avoid Probate in Pennsylvania
Luckily, there are various estate planning strategies that allow individuals to ensure their assets will avoid probate in Pennsylvania. Common strategies in PA include:
Revocable Living Trusts:
A revocable living trust is created and managed by its creator during their lifetime. After their passing, the designated trustee will manage the assets of the trust and distribute them according to the Terms of Trust.
Joint Ownership:
Assets that are owned jointly with rights of survivorship pass directly to the surviving owner after the passing of the other. This strategy is often utilized by married couples with assets such as real estate, bank accounts, and vehicles.
Payable-on-Death Designations:
In Pennsylvania, you can add a “payable-on-death”, or POD, designation to your bank accounts. This can be used for checking accounts, savings accounts, and certificates of deposit. With a POD designation in place, the funds from these accounts are payable directly to designated beneficiaries upon the account owner’s passing.
Advantages of Avoiding Probate in Pennsylvania
There are many advantages when you can avoid probate in Pennsylvania, the biggest of which is streamlined asset distribution. Probate is a lengthy, costly process that delays distribution of assets for several months or years. By utilizing the strategies above, the probate process can be bypassed and beneficiaries can receive their inheritance in a timely manner. Not going through probate will also help to preserve the estate’s value for intended beneficiaries and save on the various costs associated with probate: court costs, attorney’s fees, and inheritance tax.
Going through the probate process can be overwhelming, but with proactive planning, it is possible to avoid probate in Pennsylvania. It is highly advisable to consult with an experienced estate planning attorney to ensure all legal requirements are met while accomplishing your goals. Taking the time to plan your estate now can provide peace of mind for you and your loved ones, knowing they won’t have to deal with the complexities of probate during an already difficult time. The team at Antanavage Farbiarz is here to help. Our experienced estate planning attorneys take pride in crafting comprehensive estate plans that meet each family’s unique set of goals and needs, including helping them avoid probate in Pennsylvania.
Call our office at (610) 562-2000 to schedule a consultation, or click here. Allow us to guide you through the process of securing your legacy – our family is here for your family.
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