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/

Domestic Violence and Separation- When Your home is not your safest place.

During the COVID-19 pandemic, millions of people have been forced to stay at home for months. Cases of child abuse and domestic violence are on the rise, as are separation and divorce. Those dealing with these issues face unique challenges and may not know where to turn to find help. Although some courts are operating on a limited basis, if you are a victim of domestic abuse you can still seek a Protection from Abuse order. If you are considering divorce, a lawyer can advise you of the next steps to take to get the process started.

Filing for a Protection from Abuse Order

If you are being abused by a spouse, partner or family member, getting a PFA can help put a stop to the violence and even save your life. Although the Protection from Abuse Act is Pennsylvania law, the process for obtaining a PFA varies from county to county. A local family law attorney can help you file a petition for a temporary PFA and act as your advocate at the subsequent hearing, which is usually held within 10 business days of the filing of the petition.

This proceeding may be held via teleconference during the COVID-19 pandemic, which can make it even more difficult to communicate your reasons for requesting a final PFA. It is also important to keep in mind that the defendant will most likely be present at the hearing, which can be rattling to some victims of domestic violence. Your lawyer can prepare you for the hearing and speak on your behalf when it is time to go to court.

What Can a PFA Order Accomplish?

If you are concerned for your safety and the safety of your children, a PFA can address these issues in several different ways. Some of the requests you can present to the judge in a PFA petition include:

• Ordering the abuser to stop abusing, harassing, threatening, or stalking you and your children
• Making the abuser leave the home (even if it is owned by both parties or both parties are on the lease)
• Requesting temporary custody of your children
• Forbidding the abuser from contacting you, your children or other family members
• Asking the abuser to relinquish firearms or other weapons
• Asking the judge to order “any other appropriate relief” such as the return of important documents, pets, or other personal property

The judge will consider your requests and may grant them in the final order.

Dealing with Divorce and Child Custody Issues

Even if you are not facing physical abuse, emotional abuse can take a serious toll on your mental health and overall wellness. Although it may seem like an inconvenient time to file for divorce, if your relationship has broken down to an irrevocable point, speaking with an attorney can empower you to take action. Leaving a toxic relationship is life-changing for victims of physical and emotional abuse. A divorce lawyer can advise you of your rights and provide the support you need during these difficult times. If you’re dealing with issues surrounding child support or custody, your attorney can also fight to ensure your children’s interests are protected.

If you’re having trouble at home and need legal help, our compassionate family law team at Carosella & Associates is here for you during the COVID-19 pandemic.

If you or someone you know needs help, call the National Domestic Violence Hotline at 1-800-799-7233 or (TTY) at 1-800-787-3224 .

This blog was originally posted https://carosella.com/domestic-violence-and-separation-when-your-home-is-not-your-safest-place/

Estate Planning Mistakes that can Cost You Dearly

Proper estate planning can protect your assets and make things easier for your loved ones. There are several vital elements of estate planning that can accomplish these goals, but all too often people avoid planning until it’s too late. An estate planning lawyer can help you avoid these mistakes so your legacy is preserved according to your wishes.

Failing to Create a Will

Believe it or not, more than half of American adults do not have a will or estate plan. This may be changing due to the coronavirus pandemic, as people are realizing that it is more important than ever to create or update your will and other estate planning documents. Dying without a will means that your entire estate will have to go through probate, which can be a lengthy, costly process. Typically, a will must be executed in the probate court, but having everything laid out makes the process much more straightforward. If there is no will, the court will appoint a personal representative to oversee the distribution of your estate, payment of debts, the filing of inheritance tax returns, and other responsibilities. Without a will, the property will be distributed according to Pennsylvania intestate succession laws.

The court may even have to name a guardian for minor children, which can have a serious emotional impact on them at an already difficult time. Having a wills and trusts lawyer help you create a valid will helps cut down on family conflict and ensures your assets are distributed as specified. If you’re concerned about the cost of hiring an attorney to help you with your estate plan, keep in mind that the price your family may pay after you are gone could be much higher.

Forgetting to Update Beneficiaries

Updating beneficiaries on your life insurance policies, bank accounts, investment accounts, and retirement accounts such as IRAs and 401(k)s can also save your family time and headaches. These items typically do not have to pass through probate, but if a beneficiary has passed away or you failed to name one, things can get messy. For bank and brokerage accounts you can sign Paid on Death (POD) forms and Transfer on Death (TOD) forms, which allows them to avoid probate and be automatically transferred to the person, trust, or charity you specify on the form.

Not Protecting Assets with a Living Trust

Also known as a revocable trust, a living trust is usually exempt from probate. A revocable trust is created while you are still alive, and you can change or cancel the provisions at any time. Most assets can be put in a revocable trust, including valuable possessions, real estate, bank accounts, and investments. Upon your death, assets in a revocable trust are transferred to your designated beneficiaries. Having a qualified estate planning attorney help you create a revocable trust is essential to ensure it is done properly.

Whether you need to update or create an estate plan, our team at Carosella & Associates can help you find creative solutions to ensure your assets are preserved, your family’s interests are protected and your legacy lives on. Learn more about our estate planning services here.

This blog was originally posted https://carosella.com/estate-planning-mistakes-that-can-cost-you-dearly/

Why Estate Planning is Important for Everyone in the Time of COVID-19

From stay-at-home orders to social distancing, the COVID-19 pandemic has had a serious impact on everyone’s lives. These uncertain times have moved many people to think about their mortality and the legacy they want to leave behind. If you need to create or update your estate plan, an attorney who handles wills, trusts, and other vital documents can help you prepare for the future and put your mind at ease.

Why Do I Need An Estate Plan?

Even if you do not have a particularly large estate, planning for what may come is vital. An estate plan involves so much more than just a will. Without powers of attorney or an advance directive (living will), if you should become incapacitated, health care and financial decisions may be left up to someone you do not trust or even know. These documents help to ensure your health, well-being and finances are protected if you cannot speak for yourself. In addition, having a will and other estate planning measures in place at the time of your death can help your family save time, money, and avoid additional emotional upheaval during an already challenging period.

Update or Create Your Estate Plan

Whether you already have an estate plan and need to update it, or you need to create a new one, it is especially important not to put it off during these unpredictable times. There are several documents that are crucial elements of any estate plan, including:

Last Will and Testament – A will enables you to specify how you would like your assets to be distributed after your death. You may also name guardians for minor children and appoint an executor who will handle the distribution of your assets. Without a will, the distribution of your assets will be handled by the probate court, which can be an expensive, time-consuming process fraught with conflict. If you know how you want your estate to be distributed to your beneficiaries, making a will can ensure it happens according to your wishes.

Durable Power of Attorney for Health Care – This document enables you to designate someone you trust to make health care decisions for you should you become incapacitated. Having a lawyer help you create this document can ensure that proper requirements and language are used so your agent has the legal authority to carry out your wishes.

Living Will (Advance Directive) – Life-sustaining medical decisions can be excruciating for loved ones to make, especially if they are unaware of what you would have wanted. A living will allows you to state your wishes and name a surrogate decision-maker regarding the refusal or approval of certain life-sustaining treatments if you incapable of making those decisions for yourself.

Power of Attorney for Finances – Naming someone to take care of your financial affairs when you are unable to do so can protect your assets, property and your family. A power of attorney for finances gives your agent the ability to pay bills, make deposits, write checks, sell or buy assets, and file tax returns on your behalf.

The experienced team at Carosella & Associates is dedicated to serving clients’ legal needs during these unpredictable times. We can help you create a comprehensive, personalized estate plan that meets your needs and safeguards your future.

This blog was originally posted https://carosella.com/why-estate-planning-is-important-for-everyone-in-the-time-of-covid-19/

Planning To File Bankruptcy and Divorce At The Same Time?

Financial strain combined with the decision to divorce can wreak havoc on your emotions and cause serious stress. If you are considering filing for bankruptcy and divorce, it is important to do some planning and speak to an attorney before you begin either process. There are many different factors to take into consideration, including your amounts of debt and property and which type of bankruptcy you’re interested in filing. A bankruptcy lawyer can assess your situation and advise you of the most cost-effective and practical options. 

Filing Jointly Before Divorce

Even though you and your spouse plan on getting divorced, filing bankruptcy together can be much more expedient and efficient thSubmitan attempting to do it after you’ve filed for divorce. Chapter 7 Bankruptcy will discharge the qualifying debt of both parties, which enables you to avoid dealing with issues surrounding debt and property division during your divorce. Filing bankruptcy jointly also costs less than it would if you filed individually. If you hire a bankruptcy attorney to handle it, you will most likely pay less in legal fees as well.

It is important to seek the counsel of an experienced lawyer who is well-versed in the bankruptcy laws of your jurisdiction. Certain states allow married couples to double exemption amounts if they file jointly, but it is critical to have someone who knows the law determine whether a joint filing will protect all property you own with your spouse.  Make sure to tell your bankruptcy attorney that you plan on filing for divorce so they can avoid any potential conflicts of interest.

Filing Separately

In some cases, it is best to wait until your divorce is final to file bankruptcy. If your income is significantly less after divorce, it may be a good idea to hold off so you qualify for bankruptcy. However, if one spouse needs bankruptcy protection right away, they may need to file individually before or during the divorce. Using a law firm with a team that includes both bankruptcy and divorce attorneys can be extremely helpful, as they often collaborate and advise each other in these types of cases.

Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is designed to discharge all qualifying unsecured debt such as medical bills and credit card debt. It can be completed in a matter of months, so it is usually the best choice for divorcing couples who want to file for bankruptcy together.

Chapter 13 Bankruptcy

If you file for Chapter 13 Bankruptcy, you are required to pay back all or some of your debts through a set repayment plan over three to five years. Chapter 13 will not be closed until the repayment plan is complete, so if you want to make a clean break with your spouse as soon as you can, filing a joint Chapter 13 Bankruptcy is not an ideal solution.

Some Debts Cannot be Discharged in Bankruptcy

There are certain types of debt that are ineligible for bankruptcy, including:

• Child support
• Alimony
• Attorney fees for child custody or support cases
• Student loans
• Court fines
• Student loans
• Monies owed to government agencies

It can get even more complex if you are planning on filing a business bankruptcy. In this case, having a business attorney who is familiar with the bankruptcy process can help to insure your interests and rights are protected.

Are you thinking of filing for bankruptcy or divorce? Our seasoned attorneys at Carosella & Associates can help. Contact us to schedule a consultation.

This blog was originally posted https://carosella.com/planning-to-file-bankruptcy-and-divorce-at-the-same-time/