Blog & Resources

At the end of October, the IRS announced the 2016 estate and gift tax lifetime exemption and annual gift tax exclusion. These amounts are tied to inflation, which has been minimal due to a number of factors—especially the lack of a federal interest rate hike during the first three quarters of 2015.

The estate and gift tax lifetime exemption rose from $5.43 million in 2015 to $5.45 million in 2016. This means married couples can pass on $10.9 million free from federal estate tax. The annual gift exclusion did not increase, and will remain at $14,000 for 2016.

From our “Ask a Question” mailbag: My friend died and his executor is allowing his hosting account to lapse. Could he have set aside funds to maintain his website?

It is possible to set up a trust to maintain the cost of a website. This needs to be carefully done to provide checks and balances to make sure the trustee carries out your intent. I find a trusted Protector an excellent and inexpensive tool. If a person has a website that he wishes to continue after death, it is important to make sure access data is easily available to the executor.

From our “Ask a Question” mailbag: My mother died a resident of Philadelphia, Pennsylvania survived by three sons. She had no will. One of my brothers has signed the renunciation giving me the right to serve as the Administrator. My other brother is homeless and I don’t know where he is, so what can I do?

The Register of Wills may issue Letters of Administration to give authority to someone to act as the Administrator of an estate if the person died without a will. The statue spells out who has a right to serve, and if the person dies without a spouse then each child has the right to serve. Most often, the children will agree on one person to serve and the other children will complete renunciations in favor of that person.

From our “Ask a Question” mailbag: After reading the information on your site, I believe my brother used undue influence to get my father to change his will. If I decide to challenge the will, where will the trial be held? How long will the process take?

Will contests are heard by the judges in the Montgomery County Orphans’ Court. The Montgomery County Orphans’ Court is located in Norristown. In many cases, will contest challenges settle before a trial. If the case settles, the parties could agree to terms in a matter of weeks, months or it could be on the courthouse steps minutes before trial.

From our “Ask a Question” mailbag: My Mom’s will says that all estate money is divided equally between her children. The Personal Representative said she would be writing us equal checks. It has been 9 months and I have not received a check. How do I get her to hold up her end of the will terms?

New Jersey gives the Personal Representative a great deal of unsupervised power to handle the estate. If you feel that this power is being abused, you have the right to force her to appear in court and explain herself. You can hire an attorney experienced in Surrogate’s Court litigation who can file for you a Petition forcing the Personal Representative to file a Schedule of Distribution, which is her road-map plan of how she will distribute the estate’s assets.

From our “Ask a Question” mailbag: My neighbor said that she was going to leave me money in her will. But, at my neighbor’s death, a friend of hers filed a will with the Chester County Register of Wills that gave everything to the friend. I think the will is a forgery. Is there a statute of limitations period for me to challenge the will?

Yes. If you had acted before the will was filed, you could have had your Chester Probate Attorney file a caveat with the Chester County Register of Wills. This would have prevented the friend from obtaining Letters Testamentary until you had the chance to review the Will and decide if you were going to contest it.

From our “Ask a Question” mailbag: My mother has Alzheimer’s, and my uncle has been handling her money for several years as her power of attorney. My sister and I are not given any information about how he is handling her money. Recently, he took his family on a long cruise that I know he could never afford on his own money. My sister and I feel he must have used our mother’s money to pay for his vacation. What can we do?

Your mother’s Power of Attorney names your uncle as her “Agent.” As Agent, he has a fiduciary duty to use those powers to care for your mother. In Pennsylvania, the Agent is given broad powers and very little oversight, but an interested person being able to easily get a court order for the Agent to account for every penny counter balances this flexibility.

From our “Ask a Question” mailbag: I filed my father’s will with the Surrogate and was named the Personal Representative, but am having second thoughts. My family is litigious. Can I be sued and found personally liable?

By accepting the position of Personal Representative you became a fiduciary with a duty to the beneficiaries. If your family is litigious, you are right to be concerned. All the beneficiaries have the right to petition the Surrogates Court and ask the court to surcharge you should they feel any action you took reduced their inheritance. This could be a sale of land at too low a price, a fee you paid to a creditor, or even your salary.

From our “Ask a Question” mailbag: My son does not get along with his stepfather and wants to move to another state to live with relatives. He won’t turn 18 for another year. How do I manage medical decisions for him if he is in another state?

For non-emergency medical care, there is likely no problem as you can communicate with his local doctor and give authorization for examinations or minor care. Work with his doctor and give their office the authorization that they request.

From our “Ask a Question” mailbag: My friend created a website with valuable information. He died unexpectedly and it seems that his executor is allowing his hosting account to lapse. Could the executor access this information and sell it for the estate?

The ownership of the website, the data thereon, and the ability of the Executor to gather and use or sell that date will depend on the agreement your friend signed with the host. The Executor has the power to ask questions about the site and gather information about the site. This can be a slow and laborious process if your friend did not leave information about accessing the account.