Blog & Resources

My father, a Gloucester 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.”

With the New Year comes a new law. The Pennsylvania Legislature has announced Act 95, which aims to provide greater protection for those granting a power of attorney.

I am a resident of Burlington 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.

Some people believe they can disinherit their spouse simply by cutting them out of their Will. Those people should think again. In Pennsylvania, as in many states including New Jersey and Florida, a widowed spouse has the right to take under the deceased’s Will, or if they deem that as insufficient, an elective spousal share estate determined by law.

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

As a Montgomery 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.

My father, a Camden 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.

My mother transferred her Montgomery 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 two years ago, it will not be subject to the Pennsylvania Inheritance Tax.

I am a New Jersey resident. Now that I have married my partner, I would like to give her a General Durable Power of Attorney, but am concerned about surrendering so much power over my assets. I have heard stories about spouses abusing Powers of Attorney. How can I protect myself?

A general, durable power of attorney is a key part of any estate plan. A Will covers what happens to your assets if you have died, but the durable power of attorney is meant to cover the time when you are alive yet unable to handle your own financial affairs. The problem that exists, and of which you speak, is that if you give your Agent the power of attorney document, they have the power to withdraw from your bank accounts, sell real estate and gather your tax information.

A Statute of Limitations serves as a cut-off date. The date is context specific and begins tolling on the date your claim originated. For instance, if you sign a contract, the date the party fails to perform is the start date for tolling period. Once the statutorily provided time has elapsed, the statute of limitations has “run”. After the period has run, except in unusual cases, a Court in Pennsylvania will not hear the merits of your case.

Often the most sensitive question when estate planning – where and how do you want your remains disposed? I realize this appears morbid, but it is a necessary consideration. In New Jersey, the State has established default rules when a Will is silent on the issue, or if the testator fails to designate a specific person with authority over the decision. Similar to intestacy, these rules are utilitarian in nature. As with any one-size fits all rule, there will likely be family conflict and litigation.