With the new year upon us, let’s discuss what the estate planning landscape will look like for the coming year and beyond. Before I get too deep into the changes for the year and changes ahead, do you realize that ten years ago was 2012? The iPhone 4S was the hot product out there, and you could have purchased one Bitcoin for $6.74 (what a deal!). It doesn’t seem like a long time ago, but if it’s been more than 10 years since you’ve updated your estate plan, you are due for a review and possibly modifications. First, federal estate tax (coupled with the lifetime gift tax credit) exemption ..read more

2022 is on the horizon, and with that, some updates are in order on what we know so far. The caveat remains: Congress is unpredictable, especially this time of year. We may find out this month about some further changes in tax laws. We’ll keep an eye out and update you accordingly. Federal Estate & Gift Tax Exemption: If Congress does not act to change the federal estate and gift tax exemption, then in 2022, the exemption is $12.06 Million per person. 40% is the highest tax rate for estates. The law “sunsets” at the end of 2025 if Congress has not acted by then, in which case, the estate ..read more

The holidays are around the corner, and although we are all extremely busy, it’s actually a good time to at least think about estate planning as you are joining together with your family and loved ones. Take some time during the holidays to tune into this webinar to learn more about estate planning, and then make it a New Years resolution to put your plan in place. All you have to do is briefly register, and then you can watch the webinar at your convenience. I promise you’ll learn something new. In this, we cover foundational elements of estate planning, understanding your assets, legacy plan ..read more

99% of us (or more) have never had the pleasure to serve as an Executor. But you just found out you have been named as Executor of an estate, so what are your obligations? Understand Your Role: Your job as Executor is a legal one where you must follow the law carefully. In a case where an individual has left a Will, you must carry out that individual’s wishes. If they did not leave a Will, you would be called an “Administrator” and have to distribute the estate based on what the laws say. In Pennsylvania and in many other states, we call that the laws of intestacy, and it dictates where the e ..read more

There are many facets of an estate plan – it’s a pretty broad term, and way too many of us have the perception that we don’t have enough money to engage in estate planning. That couldn’t be further from the truth, and that mindset can put you and your family at great peril. Below are a few reasons why everyone, even those with smaller estates, need to engage in planning.  First, we all have a different financial picture, and each of us comes to the table with a unique set of circumstances. Some clients may have a large estate, with most of it in real estate. Other clients may have a hous ..read more

Across Pennsylvania, there are thousands of properties that have a ‘tangled title’ where the person living in the home does not actually own the home. It’s a pervasive problem, particularly in urban areas. The sooner it is identified and fixed, the better. When there is tangled title, mortgages can’t be refinanced. Repair grants, property tax rebates and other income-sensitive services will be denied. In the worst cases, homes are abandoned.  Consider this tangled title example: Jim and Sally, who had 4 children, bought a house in 1950 for $10,000. Jim passed away in 1985 and a ..read more

By Jeremy A. Wechsler, Esq. Estate Planning & Elder Law Attorney Does a loved one have an addiction that you need to consider when drafting your estate plan? There is a balancing act when trying to help a family member with an addiction by leaving them financially better off, but to restrict the use of those funds so that they don’t contribute to the addiction. First, here are some sobering statistics: National Survey on Drug Use and Health (NSDUH), 19.7 million American adults (12+) battled substance use disorder in 2017. According to Addictioncenter.com, 21 million Americans have a ..read more

Often times, the mention of life insurance can scare even the most rational folks away. But when it comes to estate planning (and elder planning), life insurance potentially has a significant role to play. The use of insurance will depend on the circumstances, but the idea of life insurance shouldn’t be discarded at first blush. A lot of folks I’ve spoken with over the years have the common misconception that the only purpose of life insurance is to take care of a catastrophic loss during our younger years, perhaps when we are raising a family. Sure, life insurance at this stage mak ..read more

It’s time for some spring cleaning, and on your list, make sure to add checking your financial accounts with beneficiary designations. They range from annuities, to IRA’s, 401(k)’s, life insurance policies and more. If you have accounts with beneficiaries designated, it is important that you understand the beneficiary designations will take precedence over a will, trust or other estate planning instrument. As a simple example, if you have four children, and you’ve written them all into your will, but only two of them are listed as beneficiaries of an annuity, then only those two will get the ..read more

Plan Now, Not Later: The COVID crisis has only exacerbated a recurring problem we see at the law firm–folks waiting until it’s too late to plan. I always emphasize the fact that you should be in control of your estate plan. It’s not ideal if your adult child is attempting to be the intermediary for your estate plan. In fact, there are ethical dilemmas that attorneys face regarding this very issue. In general, an attorney must make sure that the client’s wishes, not the child’s wishes, take precedence.  Furthermore, an attorney needs to ensure the client isn’t being unduly influenced or pu ..read more