Blog & Resources

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.

I live in Philadelphia County, and my Will names my two children as co-executors. I thought this was a natural thing to do, but my children have not been getting along recently, what are my options?

Naming your children as co-executors when they do not get along is a bad idea. Co-executors have to work well together and cooperate. Children who are having a dispute can make what is a small family dispute into a family feud that lasts generations.

I am a resident of Atlantic County, New Jersey. If I have recently formed a Revocable Living Trust and moved all my New Jersey assets into the trust, do I still need a Will?

If the goal in forming your Revocable Living Trust was to avoid probate, then you must either transfer all your assets that would otherwise be Probate Assets into the trust during your lifetime or have them pour into the Revocable Trust at your death. That is often done by using a Payable on Death Account or naming the Trust as Beneficiary.

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 stating that the person is incapacitated. Without the letter, the power of attorney is useless.

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 Lehigh County, PA.

The problem with putting your General Power of Attorney in your safe deposit box is that 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.

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 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 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.

I am a resident of Camden County, New Jersey. If I have recently formed a Revocable Living Trust and moved all my New Jersey assets into the trust, do I still need a Will?

If the goal in forming your Revocable Living Trust was to avoid probate, then you must either transfer all your assets that would otherwise be Probate Assets into the Revocable Trust during your lifetime, or have them pour into the Revocable Trust at your death. That is often done by using a Payable on Death Account or naming the Trust as Beneficiary.

Years ago I gave my friend a General Durable Power of Attorney. Now I am married, living in Philadelphia and want to give Power of Attorney to my spouse. My former friend will not give me the old Power of Attorney. Can I revoke or void the Power of Attorney if he still has the original?

Yes, you can void a Power of Attorney at any time as long as you have the requisite mental capacity. Your situation will be a little more complex, as you have given the original document to your former Agent. I have not seen that Power of Attorney, but it may have a paragraph that states that banks and others need not confirm with you that the document is still in power.

My father, an Atlantic County, New Jersey resident, is planning to leave me an inheritance in his Will. I have substantial creditor problems. If my father dies, can I disclaim my inheritance so it passes to my children?

In New Jersey, a disclaimer is an heir’s legal refusal to accept a gift or a bequest. In other words, you can’t force someone to accept a gift. If a Will names someone an heir or if a life insurance policy names a beneficiary, that heir or beneficiary cannot be “forced” to accept the gift. If the heir or beneficiary legally and properly refuses the gift, it is called a “disclaimer.”

At Klenk Law we are often asked to incorporate our client’s religious principles into their estate plan. Recently we have noticed a significant increase of inquiries regarding Sharia Compliant Wills, which is an excellent topic for discussion.