Blog & Resources

From our “Ask a Question” mailbag: Last year, my mother died in Bucks County and named me as beneficiary of her life insurance. As my children were the contingent beneficiaries, I decided to disclaim the inheritance, so the insurance money passed to my children. I was recently in a car accident. If I am sued can they claim that life insurance money?

No one can force you to take an inheritance.

If you properly disclaimed your interest in the life insurance, then you never received it. If you never received it, then any future creditor that you may have cannot claim the asset.

From our “Ask a Question” mailbag: My father died a few months ago as a resident of Bucks County. I was named as executor in his Will. My siblings and I need our inheritance now to pay off some bills, but we are worried about my dad’s creditors coming forward and asking to be paid. Is there a statute of limitations for creditors to come forward? If I don’t wait, can I ever be personally responsible for the estate debts?

Your father’s death did not end his obligation to pay unpaid bills. By taking on the job of executor, you have the power and duty to marshal his assets and pay his outstanding bills. Compared to other states, Pennsylvania is creditor-friendly. If you have notice of a creditor, you are expected to address the claim.

From our “Ask a Question” mailbag: The lawyer serving as the executor for my aunt’s Philadelphia estate has sent me documents called an Informal Account and a Receipt, Release, Refunding and Indemnification Agreement. If I sign this, do I waive my rights to ask any questions?

As a beneficiary of your aunt’s estate, you have the right to have a probate attorney force the executor to file a Formal Account with the Philadelphia County Orphans’ Court. But, assembling a Formal Accounting will be a cost to the estate and may reduce your inheritance. Typically, when there are no disputes, the executor will instead assemble an Informal Accounting of the estate’s assets and expenses. This Informal Accounting is then submitted to the Beneficiaries for review.

From our “Ask a Question” mailbag: My father died in Montgomery County divorced from my mother and without a will. I have one sister who is younger than me. Am I responsible for his funeral bill?

Typically, when a person dies, the family will make arrangements with the funeral director to pay the bill themselves and then are reimbursed by the estate. Often, the funeral director will not take on the expense of the funeral without knowing they will be paid. Your question makes it sound as if you did not agree ahead of time to be responsible for the bill. If so, then you are not responsible to pay the bill, although I am sure your father’s funeral director would prefer that you pay that bill.

From our “Ask a Question” mailbag: My partner said that he was going to leave me money in his will. But, at his death, a distant cousin of his filed a will and obtained letters with the Montgomery County Register of Wills that gave everything to that cousin. 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 Montgomery Probate Attorney file a caveat with the Montgomery County Register of Wills. Doing this would have prevented the distant relative from obtaining Letters Testamentary until you had the chance to review the will. Also, this would have given you more time to decide if you were going to contest the will.

From our “Ask a Question” mailbag: My mother, who lives in Gloucester County, New Jersey, is having serious health problems. She wants me to be able to use her general power of attorney, but it says I need a doctor’s note saying that she is incapacitated. Is that normal?

Your mother has a “Leaping” Power of Attorney, which at one time was the normal document that Gloucester County estate planning lawyers would prepare. A Leaping Power of Attorney gives the “Agent” the power to act for the person if-and only if-that person has become incapacitated and the Agent can secure a letter from the person’s doctor certifying that face. Without the doctor’s letter, the power of attorney is useless.

From our “Ask a Question” mailbag: During the final months of my dad’s life, I moved him into my house and provided nearly around-the-clock care for him. My sister, who lives nearby, hardly ever showed up. Now that we have filed the will, the estate is divided up equally between my sister and I. She refuses to recognize that I should be repaid for the time and expense that went into those last few months. Can I make a claim for reimbursement?

You can always make a claim as a creditor of the estate and you will get a hearing on the matter. But, if there is nothing in writing from your father about hiring you as a caretaker or about reimbursing you for the time and expense, then the court will likely find that you are not a creditor.

From our “Ask a Question” mailbag: I formed a Revocable Living Trust to avoid New York probate and named my two sons as the co-successor trustees. It seemed a good idea at the time, but now they are not speaking to one another. Should I change the trust?

Many New Yorkers have formed Revocable Living Trusts to avoid the expensive New York probate process. For the trust to work properly, after your death, you need a successor trustee to step in to pay your final bills, taxes and to then distribute the trust assets to your heirs.

From our “Ask a Question” mailbag: I am a beneficiary in a will that has been through probate. Unfortunately, the executrix is very untrustworthy, and I feel that she has been spending all the money in the deceased’s accounts. Neither she, nor her attorney, have provided me with any accounting of any accounts. Is there any way that I could freeze the accounts before all the money is spent?

Executors in Pennsylvania are given a great deal of power to act on their own, without court supervision. This works well when the Executor is honest, as the estate can be managed less expensively. If the Executor is untrustworthy, though, this system can fail unless the beneficiaries enforce their interests.

From our “Ask a Question” mailbag: My husband died a resident of New Jersey and we owned a house together in Atlantic County which is in both of our names. He has two children from a prior marriage. Do his children get any ownership in the house?

The answer will depend on how you both owned the house together. You wrote that you owned your house “in both names,” which could mean you owned the house in any of three different ways.