Steps for an Executor to Take When Settling an Estate

Being the executor or personal representative of an estate can be daunting. Although it is good to have a probate attorney assist you with the process, it is important to have a general idea of what the process of settling an estate entails. Taking it step-by-step can help you get organized and prepare you for the tasks that lie ahead.

Secure Property and Gather Documentation

The first thing you should do as the executor of an estate is to make sure all property and assets are secure. Promptly collecting documentation can help to ensure that you have what you need to open the estate. The executor of an estate should gather:

• Will
• Receipts or bills for funeral expenses
• Bills for medical expenses
• Tax returns
• Bank account statements
• Investment account statements and documentation
• Life insurance policies and beneficiary information
• Outstanding bills, credit card statements, and invoices
• Death certificates – You will need multiple certified copies of the death certificate to provide proof of death and to have certain assets released.
• Deeds –If your loved one owned multiple investment properties, you may want to contact their real estate lawyer if you need any additional information or documentation
• Appraisals of real estate, jewelry, artwork, or other valuable items

It is also vital to find the names and contact information for everyone who is named as a beneficiary in a will.

Determine Which Assets Can Skip Probate

Assets in a living trust, proceeds from life insurance policies, property owned in joint tenancy, and retirement accounts with named beneficiaries usually do not have to pass through probate. An estate law attorney can go over all assets with you and determine which are exempt from probate. A lawyer can also advise you on what to do if there are any problems with beneficiary designations.

File the Will and Open Probate

You must file the will with the Register of Wills in the country where your loved one lived at the time of their death.  You will also need an original of the death certificate. You must fill out an Estate Information Sheet, Petition for Probate and other required forms. Letters Testamentary will be granted, which give the executor authority to act on behalf of the estate. In Pennsylvania, probate is conducted in the Orphans Court.

Settling the Estate

Once the estate is opened, you must:

• Collect and inventory all assets
• Put estate notices in local newspapers
• Notify beneficiaries and any other relevant parties and file certification of these notices with the court
• Have certain assets appraised, if necessary
• Sell estate assets if applicable
• Pay creditors
• File a Pennsylvania inheritance tax return – if inheritance taxes are paid within 3 months of opening the estate, you receive a discount of 5%. The final inheritance tax return must be filed within nine months from the date of death.
• Distribute assets to beneficiaries
• Prepare a final accounting of the estate administration
• Discharge the estate

This is by no means a comprehensive guide to the responsibilities and tasks you perform as an executor. Our wills and trusts attorneys can guide you through the process and help solve any legal issues that may arise.

This blog was originally posted https://carosella.com/steps-for-an-executor-to-take-when-settling-an-estate/

Understanding the Responsibilities of an Executor of a Will

An executor of a will has many responsibilities. Identifying and securing the assets owned by the estate, probating the will, paying creditors, and distributing assets to beneficiaries are just some of the tasks that are necessary. As an executor or personal representative, you are also required to put the interests of the estates’ beneficiaries first, which means that you should notify them promptly.

Probate

Many wills in Pennsylvania must go through probate. This process includes validation of the will, distribution of assets to beneficiaries, payment of debts, filing tax returns, and settling the estate. If someone dies without a will, the court appoints a personal representative to handle these tasks. Assets such as life insurance, jointly held property, and retirement accounts that have designated beneficiaries do not have to go through probate.

As an executor or personal representative, you must send a written notice to beneficiaries within three months of filing the will in probate court (Orphans Court in PA). An executor must also publish a notice of probate in local newspapers according to court rules and notify creditors. Probate can take as little as a few months or much longer if issues arise. After all debts are paid, tax returns are filed, and a final accounting of the estate is completed, assets can be distributed. An attorney can explain the probate process and handle all of the legal aspects of settling the estate.

Protecting the Estate’s Assets

In addition to putting beneficiaries’ interests first, you also have an obligation to safeguard the estate’s assets, keep proper financial records, treat all beneficiaries fairly, and keep the estate’s assets separate from your own. Notifying beneficiaries as soon as possible can help you build trust. Being proactive, impartial and taking the role of executor seriously demonstrates that you are committed to settling the estate in an ethical manner.

When a Will is Contested

A probated will is a matter of public record. Even when someone has a valid will at the time of their death, named beneficiaries, spouses, and children of the decedent can contest it. If you are facing this type of challenge as the executor or personal representative of an estate, it is vital to hire an experienced lawyer who is well-versed in family wills and trusts. Attempting to handle these issues on your own is stressful and may result in unnecessary, costly litigation that drags on for years.

Dealing with Other Conflicts

It is vital to be aware of possible conflicts of interest, whether they are real or perceived. If a beneficiary has concerns about this, an estate planning attorney can assess the circumstances and advise you on the best way to move forward. If someone alleges that you have unfairly or unethically benefitted from your role as executor, seek the counsel of your own attorney to protect your rights.

Whether you are interested in drafting a will or need assistance as the executor of an estate, our West Chester estate lawyers can help with any legal issues that may come your way.

This blog was originally posted https://carosella.com/understanding-the-responsibilities-of-an-executor-of-a-will/

Legal Considerations for Businesses During the Time of the Pandemic

Many businesses have faced hardship during the COVID-19 pandemic. As more and more restrictions are lifted, business owners may be unsure of how to stay afloat and protect themselves, their employees, and customers. Being proactive and seeking the counsel of a local business attorney can help you avoid serious problems down the road.

Adhere to State and Local Orders

Everyone needs to make a living, and COVID-19 has placed a serious financial burden on millions of small businesses. Regardless of whether you agree with regulations that have been put in place, it is vital to follow local and state rules for safely operating your business. Frustration about being unable to do business at all is understandable, but carrying business practices in defiance of these orders can put your business at risk and lead to even more difficulties.

Follow Social Distancing and Hygiene Practices

Wearing a mask, keeping a distance of six feet from others, and your washing hands frequently may not just slow the spread of COVID-19, but following proper safety protocols and keeping your facility clean and sanitized can also protect you from liability. As an employer, you have an obligation to provide a safe and healthy environment for your employees. This also applies to customers and others who enter your premises. Failure to maintain a safe environment not only puts others at risk, it can jeopardize your business and stain your reputation in the community.

Create a Plan and Enforce New Policies

Part of implementing coronavirus-related changes is creating a plan of action to help things run more smoothly, especially with the ever-changing rules and regulations that may be required. It is important to clearly inform your employees of new policies and procedures. In addition to holding meetings with your employees about these changes, it is critical to document them on paper. It is also a good time to review existing procedures and revise them as necessary. If you own a small business in Eastern Pennsylvania, consult with a business lawyer in West Chester to find out how the Families First Coronavirus Response (CARES) Act, FMLA, ADA, and OSHA regulations may apply in your specific industry.

Revisit Your Business Plan

Reviewing your overall business plan and other contracts is also essential during these uncertain times. COVID-19 has had a serious impact on the bottom line, so it is crucial to come up with innovative ideas and ways to mitigate profit loss and cut expenses. Proper business succession planning is also more important than ever. If you already have a plan in place, reviewing it with your lawyer and making any necessary changes can ensure that things keep running with minimal interruption should you or a partner become severely ill or pass away. If you do not have a business succession plan, now is the time to create one.

Review Commercial Insurance Coverage

In some cases, business interruption insurance may cover COVID-19 related losses, but making a successful claim may be an uphill battle. Reviewing your liability insurance policy is also critical, as it may provide coverage for claims that arise from COVID-19-related litigation. Insurance and contract lawyers are well-versed in the language that is often used in these types of policies, and can determine the scope of your coverage and any exclusions that may apply.

If you need assistance with business-related matters during the COVID-19 pandemic, our experienced team at Carosella & Associates can help.

This blog was originally posted https://carosella.com/legal-considerations-for-businesses-during-the-time-of-the-pandemic/