Planning to Sell Your Deceased Parent's Home: Here's What The Law Suggests

Selling a parent’s home after they pass on can be an overwhelming and emotional process. It can be especially challenging if there is a family conflict or you are unfamiliar with the legal issues that can arise when settling an estate. Estate planning law firms often work collaboratively with real estate attorneys to develop creative, practical solutions that can help you understand the law and resolve issues to get your parent’s property sold.

Does a Home Have to Go Through Probate?

In most cases, yes. Unless your parent put their home in a living trust, the home is part of the estate and must go through the probate process before it can be transferred or sold to anyone.  Although selling a house while in probate is possible, the process is complicated. The probate court will monitor the process to ensure it is transparent and you are authorized to sell the home. If you are the executor or administrator of the estate, you are required to monitor and approve the sale of the home as well. Your probate attorney can advise you of all your rights and responsibilities as the executor of an estate.

Confirm Ownership

Before you do anything else, find out if your parent is the sole owner of the property. If the home is jointly owned with a spouse or anyone else “with the right of survivorship,” they automatically become the sole owner of the home. These situations can be particularly tricky when an ex-spouse is still on the deed of a home. Experienced divorce attorneys usually advise clients to separate all property and update their estate plan after a major life change, but sometimes these things can fall through the cracks and cause serious problems when someone passes away unexpectedly.

Keep it Current

The transfer of property can take time, so it is important to continue to pay the mortgage, property taxes, and insurance while sorting out the estate. It’s also a good idea to keep utilities such as gas, electric and water on and to check on the property periodically to make sure it is in good shape. Whether you plan on selling the home or not, you will most likely need to get it appraised, so you want to ensure it is properly maintained.

Get an Appraisal

An appraisal is a professional valuation of what a home is worth. It is often required when an estate goes through probate and is used for tax purposes and to ensure all beneficiaries know the value of the property.  An appraisal is usually required in any real estate transaction, so it is a must if you plan on selling the home. Once all of these matters are settled, a real estate attorney can assist you with the process of transferring the property and putting it up for sale.

Do you need assistance with settling an estate or selling a parent’s home? Our full-service law firm in West Chester can help you understand the process and walk you through it every step of the way.

This blog was originally posted at https://carosella.com/planning-to-sell-your-deceased-parents-home-heres-what-the-law-suggests/

Do You Have Minor Heirs in Your Estate? Here's What You Need to Do

In the age of COVID-19, ensuring that your children are protected in the event of your passing is more important than ever. Although many people believe that naming a guardian in their will is sufficient, there are other estate planning tools that can help to ensure your minor children’s inheritance is properly managed. An experienced trusts attorney can help you understand your options and assist you with creating an estate plan that clearly outlines your wishes and protects your children’s interests.

Leaving Assets to Minor Heirs

Parents who are married typically leave all their assets to their spouse, but what happens if you are a single parent or you and your spouse pass away at the same time? When creating a will and estate plan, it is critical to consider different scenarios that may affect your minor children. Although minors can be beneficiaries, legally they cannot own property until they turn 18. In addition to naming a guardian for them, you need to ensure that any assets you want them to receive are properly managed until they are adults. There are several ways to do this. Your estate planning lawyer can assess your specific situation and recommend the options that provide the most benefit.

Why You Should Provide for Asset Management for Minor Heirs

If you do not name someone to manage assets for your minor children, the probate court will appoint a guardian of the estate to oversee them until minor heirs come of age. This means that if you die you have no control over who will manage your children’s assets. The person who is appointed by the court may not be a good fit or could mismanage assets. An attorney can explain the probate process to you so you have a better understanding of what is involved and why naming someone to manage your children’s assets ahead of time is advisable.

Asset Management Options for Minors

There are several ways to arrange for someone to manage your minor child’s inheritance. Some of the most common include:

Naming a property guardian in your will. If you appoint someone to be a property guardian in your will, when your will is validated in probate the court will appoint that person as your child’s estate guardian.

Naming a custodian under the Pennsylvania Uniform Transfers to Minors Act. The PAUTMA enables you to select a custodian to manage assets you leave to your children up to the age of 21. You may do this in your will, living trust, or when naming a beneficiary on a life insurance policy. It is vital to make sure this done correctly, so it is best to have an attorney assist you.

Setting up trusts. Creating a family trust for all your children or individual trusts for each child can help to ensure your wishes are carried out according to your specific instructions. Any trustee you name is required to act in your children’s best interests, whether it involves their education, health, living expenses or any other issues. It is important to keep in mind that a trustee has more responsibilities than a custodian, such as filing annual tax returns for the trust.

Do you need assistance with estate planning? The team at Carosella & Associates can help you create a plan that protects your children’s financial future.

This blog was originally posted at https://carosella.com/do-you-have-minor-heirs-in-your-estate-heres-what-you-need-to-do/

Here's How Bankruptcy Can Affect Child Support

Issues surrounding child support and divorce can be contentious, but when bankruptcy is involved things can become even more complicated. Regardless of the circumstances, it is always a good idea to consult a seasoned attorney to figure out your options if you are facing issues surrounding bankruptcy and child support. The best bankruptcy lawyers will take the time to answer your questions and help you understand your rights and responsibilities.

Bankruptcy and Child Support

Debts are divided into two general categories when you file for bankruptcy. Dischargeable debt can be eliminated, while non-dischargeable debt cannot. Some examples of dischargeable debt include medical bills, credit card debt, car loans and mortgage payments. Child support and alimony arrears are considered non-dischargeable debt in both Chapter 7 and Chapter 13 bankruptcy. Child support is also considered a “priority debt,” which means that repayment often takes precedence over other non-dischargeable debt like income tax debt.

Chapter 7 vs. Chapter 13: How Each Type of Bankruptcy May Affect Child Support Payments

When you file for bankruptcy, an automatic stay is usually placed on any collection actions against you. However, if you file for Chapter 7, your post-filing income is not considered part of the bankruptcy estate. This means that a stay will not halt collection of child support payments. If you fall behind on your support obligations, a creditor (whether it is your child’s guardian or the state) can sue you to collect them.

Filing for Chapter 13 also triggers an automatic stay, but your post-filing earnings are considered part of the bankruptcy estate. This means that before someone can sue you for child support, they would have to file a motion to lift the stay. However, once it is lifted you can be sued. To ensure you keep the benefit of the stay, making timely, full payments according to your repayment plan is critical.

Regardless of whether you are the person who receives or pays child support, a good family law attorney should know how bankruptcy may affect payments and can advise you on the most effective course of action to reach a fair resolution.

Do Bankruptcy and Child Support Affect Custody?

Although filing bankruptcy or getting behind on child support payments does not affect your right to see your children, finances can play a part in the amount of time each parent spends with their children. When making decisions about custody arrangements, the court’s main concern is always the best interest of the child. If your financial situation renders you unable to provide for your children’s basic needs such as food, clothing and housing, a family court judge may give primary custody to the parent or guardian who can adequately provide these things.

If you have an existing custody agreement, simply filing for bankruptcy cannot alter this arrangement. If you or your child’s other parent wishes to modify a custody or child support agreement, you must file a petition with the court that made the initial determination.

Find a Law Firm that Can Handle all Aspects of Your Case

To ensure your rights are protected, it is important to find a full-service law firm in West Chester that handles bankruptcy cases and issues surrounding child support, alimony, custody and other family law matters. If you are filing for business bankruptcy, having an experienced business lawyer on your team is also a must.

This blog was originally posted at https://carosella.com/heres-how-bankruptcy-can-affect-child-support/