Blog & Resources

From our “Ask a Question” mailbag: I have served as the Executor for my mother’s Delaware County estate for over a year and wish to close the estate, but my brother claims that I have embezzled money from the estate. This is ridiculous, but how can I close the estate while he makes these claims?

It is unfortunate that your brother is making these claims, but there is a forum available to you that will allow you to bring the estate to a close.

From our “Ask a Question” mailbox: My father wants to transfer a rental property he owns in Delaware County into my name. If he does, will this gift avoid Pennsylvania Inheritance Tax?

As a Delaware County resident, at your father’s death, all assets he leaves you at death (except life insurance) will be subject to the Pennsylvania Inheritance Tax at the 4.5% children’s rate.

From our “Ask a Question” form: I am a New Jersey resident serving as the Personal Representative of my mother’s Burlington County, New Jersey Estate. I hired a Burlington County attorney to probate the estate and help me administer the estate, but I cannot get her to return my calls. What can I do?

As the Personal Representative, the Probate Attorney works for you. You hire the Probate Attorney, and you can fire the Probate Attorney.

Since more than 1 in 5 Gloucester County households include residents over age 65, Long Term Care should be a serious consideration in your personal financial plan.

My mother, who lives in Camden County, New Jersey, is having serious health problems. She wants me to be able to use her general power of attorney, but it requires 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 Camden 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 stating that the person is incapacitated. Without the letter, the power of attorney is useless.

I am a resident of Camden County, New Jersey and want to modify my Will. My two children are older and I want to name them as co-executors. Is naming my children as co-executors a good idea?

Naming your children as co-executors (or “personal representatives”) of your Will can be a fine idea, or a terrible idea, depending on your children. You need to be honest with yourself about how well your children’s personalities work (or do not work) together.

I have signed a General Power of Attorney giving my daughter the power to act for me, but I don’t want her to have it yet. I only want her to have it when (and if) I become unable to care for myself. Should I keep it in my safe deposit box? We both live in Delaware County, so she is close by.

The problem with putting your General Power of Attorney in your safe deposit box is, if you become incapacitated, your daughter will likely be unable to get into the box. If you have died, there is a process to open the box… but it is much more complex if you are alive, but incapacitated.

I am the executor of my mother’s estate in Lehigh County, Pennsylvania. I have sold the real estate, liquidated all the assets and am ready to distribute, but my sister will not give me a release of liability. What can I do?

You are right to be concerned. Prior to making distributions from the estate, you should insist on getting a release of liability. This is typically done informally by using what is broadly referred to as a Family Settlement Agreement.

My Mother transferred her Lehigh County home to me two years ago. She recently died. I am going to sell the house soon, but do I have to pay Pennsylvania Inheritance Tax?

Not in your case. The Pennsylvania Inheritance Tax of 4.5% applies to transfers to children at death and includes all gifts made within one year of the date of death. If the house was transferred properly into your name 2 years ago, it will not be subject to the Pennsylvania Inheritance Tax.

My father wants to transfer a rental property he owns in Chester County into my name. If he does, will this gift avoid Pennsylvania Inheritance Tax?

As a Chester County resident, at your father’s death, all assets he leaves you at death (except life insurance) will be subject to the Pennsylvania Inheritance Tax at the 4.5% children’s rate. That includes all gifts made within one year of the date of his death. So, if he transfers the rental property into your name and lives for at least one more year, at his death you will avoid Pennsylvania Inheritance Tax payment.