How to Avoid Probating a Will

Probating wills is time-consuming and a public affair; however, there are steps you can take now to avoid these situations for your heirs at your time of death. Yes, there are times when the complexity of the financial situation for an individual requires one to execute a will to be properly vetted and probated. But that’s not always the case. 

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This can save untold stress – emotional and financial – on your loved ones while they grieve. Having to worry about sorting out assets and paying inheritance taxes, among other fees can be reduced. 

Of course, the quickest and most extreme way to avoid probating your estate is to sell or otherwise get rid of all property in your name. Without any assets, there is nothing to probate. But let’s be real. This isn’t really practical in most cases. You need cash to live on until you die. You can also use a revocable living trust that covers you now (while you’re presumably alive and well), if you should become mentally incapacitated, and finally after your death. This isn’t as easy as it sounds either. All your assets need to be transferred into the name of the trust fund. You would then name beneficiaries to own the trust upon your death.

Another possibility is to use joint ownership with rights of survivorship. Basically, you’re adding a joint owner to a bank account or retirement fund, and registering it transfer on death (TOD). There are limitations to how effective a joint ownership can be in your circumstances. For example, Pennsylvania law does not permit TOD for real estate or vehicles. 

You can also use beneficiary designations on common assets like life insurance or retirement funds. This is probably one of the easiest ways to avoid probate. When you sign up for the account, simply designate a beneficiary at the same time (make sure to revisit these designations from time to time to ensure they’re still accurate!). 

While there are multiple ways to reduce the impact of estate taxes, only a tax attorney can help determine the best options for you. With more than 35 years of experience helping families minimize taxes and fees associated with collecting inheritances, we can help! Contact our office at 724-216-5180 or use our online form for more information. 

What Happens to Will in Probate?

A photo of probate and estate admin law book

Carrying on with our theme of processing wills after the death of a loved one, I thought it may help if we walk through the process of what exactly happens when a will goes to probate. Probate is just a fancy word to describe the process by which a will is reviewed by the court and accepted as a valid public document. 

Register of Wills will receive the petition and all information submitted to ‘prove’ its validity by their personal representative (or executor). This basically means that the will an executor has in their possession is a true reflection of the deceased’s last wishes. 

A few things to note here: the executor must provide notice of the filing for probate to all heirs, beneficiaries and known creditors; all funeral expenses, debts and taxes may be paid from the estate; and while the will is in probate, many expenses may need to be paid out of pocket while waiting for finalization from the court. 

Finalization can take several months to a year (or years), depending on complexities of the estate assets, any objections from beneficiaries or creditors, or the intricacies of business transactions.

As you can imagine, there are a few downsides to this traditional process. Aside from costs and slow processing times, probates become public record and potentially create family fights since a great deal of the decedent’s information is made public. 

Did you know it is possible, and in some cases preferable, to avoid probate or minimize its affect? My office can help you set up systems and accounts so that your heirs and beneficiaries can still receive the same assets with minimal cost and time determents, in additional to remaining private business amongst those involved. 

Call our office at 724-216-5180 or email us at john@jacochranlaw.com to discuss options on how to arrange your final affairs so that they work the best for everyone involved. 

Naming a Third-Party Administrator

a photo of will document
Sometimes closing out the legal affairs of a deceased loved one
isn’t as easy as following a clear last will and testament...

Over the last several blogs, we’ve been talking about the many ways that a will can be administered after the death of a loved ones.

We’ve talked about the responsibilities of a named executor and how to relinquish the role of executor if the named is unwilling or unable to do so. These are the most common forms of executing a will. In rare instances, there is a third option: an independent third-party assumes the roles and responsibilities of executor to administer the will. 

An independent administrator also can be named if the deceased did not have a will and there is not a clear next of kin to assume the role of administrator. And unfortunately, although you may rarely hear about this with ‘real’ families, the death of a patriarch or matriarch can cause very public disagreements among beneficiaries on inheritances that potentially make for a great circus. 

In these situations, it may make sense financially to name an unbiased third party to serve as administrator. Battles over estates can rage on for years in courts and potentially cost family members and benefactors more than their inheritance in legal fees, even if they do ‘win.’ 

An independent administrator could be a trusted attorney or another official mediator. In these cases, the administrator will either follow the instructions of the deceased’s will if there is one or distribute the estate according to applicable intestacy statutes in the absence of a valid will.

Before you choose an action, take the time to consider how different scenarios could play out. Speaking with someone who is an expert in estate law will help you make the most informed decisions. Call our office at 724-216-5180 or email us at john@jacochranlaw.com to learn about your legal options.

Estate Administration

During the loss of a loved one, serving as executor may not be something you feel you can do. Having an expert by your side to stand in can make a difficult time easier.

Administering the estate of someone who has died is not an easy process. Occasionally, there are more hurdles than usual for settling their estate. 

It’s common for problems to arise when there are multiple executors who do not get along or when a beneficiary does not agree with the actions of the named executor. More often, though, the named executor is not willing or able to serve in this role. In these cases, the best option is relinquish this responsibility. It’s important to remember that this has no bearing on the status of being a beneficiary of a will.

In the Commonwealth of Pennsylvania, it is not difficult for someone to renounce their role as executor and hand over accountability to another individual; it only requires the completion of a simple form. 

Before you choose an action, take the time to consider how different scenarios could play out. Speaking with someone who is an expert in estate law will set your mind at ease and help you make the most informed decisions. Call our office at 724-216-5180 or email us at john@jacochranlaw.com to learn about your legal options.

How to Serve as an Estate Executor

a photo of a last will and testament

A loved one dies and you’re the executor of their will. Now what? 

Unlike the scenes laid out in movies, rarely is everyone gathered at the attorney’s office at once for a reading of the will, complete with gasps and tears at surprise announcements. It makes for great drama on the screen, but as you can imagine, real life is rarely that… interesting.

Hopefully the person who named you in the will told you they were doing so. Some people are caught off guard. Let’s assume you knew you were being asked to be an executor.  

What does that even mean? 

As executor, you are responsible for settling all of the debts of the departed, distributing items per their wishes and dividing the remaining material wealth amongst named beneficiaries. 

Step one is determining if the will needs to be probated and then filing the will in the appropriate local probate court. While there is not a time limit on when you must do this, the longer you hold off, the greater the chance additional problems will arise and thus unnecessarily complicate the estate’s administration. This can get tricky and you should definitely have an attorney help you navigate this. 

You’re also responsible for finding assets owned by the departed and safekeeping them. If other people have property, you’ll need to collect it… one way or another. Yes, this is also another step where it’s important to have an attorney at your side.

Further, you will need to contact any places where the departed had bank accounts, credit card accounts, and various insurance policies. You will also need to contact pension plans, the Social Security Administration, and any other government or private organization that paid them benefits. Then you will need to contact anyone in debt to the departed and collect on those debts. You’ll also need to pay any taxes the estate owes to be able to fully settle the estate.

After distributing property and/or selling off anything the beneficiaries do not want, the proceeds must be distributed accordingly and only then can the estate be closed. 

Easy-peasy, right? You can probably tell we’ve barely scratched the surface of what serving as executor of the will of a loved one can entail. If you’ve recently learned you’ve been named as executor, or want to plan for your future duties, preparing now can help make the entire process go much more smoothly. Call our office at 724-216-5180 or email us at john@jacochranlaw.com to get started. 

Reporting Foreign Bank Accounts Isn’t a Choice

A photo of the US Tax Guide Book

Maybe you binge-watched too many seasons of Miami Vice. Maybe you have a friend at work who gave you poor advice. Maybe a less-than-scrupulous preparer suggested you forget to mention it in your returns. Or possibly you just weren’t sure if you had to file reports.

But, here you are. The owner of a foreign bank account that you have not reported to the Internal Revenue Service. Although previously certain accounts were exempt, with the adoption of the Fair and Accurate Credit Transactions Act (FACTA), every American with direct or indirect ownership or control over a foreign financial account must report those accounts to the U.S. Treasury Department. 

Coinciding with the April 15 tax return deadline, owners of foreign accounts must remit a Foreign Bank and Financial Accounts Report for the previous calendar year. 

If the IRS finds out about a foreign account that you have willfully not reported this becomes a very serious problem that could result in penalties in the hundreds of thousands of dollars and even prison time.

If you’re finding yourself in this situation and you’re ready to voluntarily disclose your accounts, there are a few legal options to get you on the right side of your past mistakes. While you’re still likely to experience financial pain, you need someone with experience on your side to help minimize the damage.

We can help. The best time to deal with these situations is now. With decades of experience helping tax payers settle their debts with the IRS, we can help you navigate these tricky times. To review your options, call us at 724-216-0704 or email us at john@jacochranlaw.com.

Yes, You Need an Estate Plan

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Estate Planning

You don’t have to be part of the ultra-rich living in Beverly Hills to think about how to preserve your family’s wealth. Careful planning can ensure that your estate can be dispersed to your wishes after you’re gone, regardless of how much you own. It can also ensure that funds are not tied up in uncertainties over the administration of a probate or worse lost in taxation and other expenses.

Although it can be a difficult conversation to talk about plans for after your death, an estate plan will minimize confusion and stress for loved ones after a death. Your clear plan will provide a path for them with the least amount of delay for transfer of assets without involving costly court fees. Media coverage of high-profile court cases can give you a taste of what would lie in store for your estate without proper documentation.

Even a basic will would protect your wishes. While you’ll want to revisit these documents after important life changes (marriages, births, divorces, etc.), you should still periodically review them with a trusted attorney to ensure they are still accurate reflections of your wishes.

Most importantly, you should not wait to create these documents until you’re “old.” Without this becoming an Oprah rerun about every day being a gift, you don’t need me to tell you there are no guarantees on how long you’ll live.

We can help provide the peace of mind that comes with comprehensive estate planning. There are many different ways to preserve wealth and avoid as many federal and state taxes on the transfers as possible. To review your estate planning options, call us at 724-216-0704 or email us at john@jacochranlaw.com.

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Business Taxes

Business taxes. Are you prepared? The government shutdown is over just in time for tax season. Find that timing kind of convenient? Yeah. Me, too.

No matter how you feel about ‘building the wall’ chances are you aren’t interested in sending more tax dollars than necessary to the federal government from your business’s income. The pop-up booths in the aisles of big box stores are fine for people with basic W-2 incomes and simple deductions like interest paid on mortgages and student loans. But you’re not basic.

You have complex business situations that can create problems if you don’t know which forms to complete and how the rules change from year to year. As a business owner, you need someone with years of experience fighting for your every dollar. Someone who will be with you the entire year and who fully understands your special situations, and solves any discrepancies should they arise. Maybe you need to file an extension to get all those receipts in shoeboxes sorted out, or want advice on if you can write off any portion of that new vehicle you bought last year.

The best time to get started is before you’re contacted by the Internal Revenue Service. Already have an issue that needs resolving? That’s okay, we can help with that, too!

We’ll make sure you pay the minimum necessary to settle your financial obligations to the IRS. Schedule a personalized assessment of your tax health today. Call us at 724-216-5180 or email us at john@jacochranlaw.com.

New Year, New Look

Welcome to the New Year!

If you’re a returning visitor to our site, you may notice that things look a little different today. Like many each new year, I’ve had a ‘resolution’ to update the website and make it more useful to my clients. This year, I decided 2019 is time to take the upgrades off the ‘someday list’ and make it a real action today.

Even with our new look online, our commitment to offering our clients the best possible results remains unwavering. We still provide the same outstanding responsiveness and dedication to our clients (please see our Google reviews.)

Are you ready to make a commitment to your important resolutions?

Sometimes we need a little help from others to make progress towards our goals. For example, I couldn’t manage the upgrades to this site by myself due to time constraints, and a lack of proficiency in the field of web design. I had to call in experts. If you find yourself in need of assistance with tax, estate, or business law, you’ve come to the right place.

Maybe this is the year you resolve any outstanding tax situations. We can help! Together we’ll minimize your tax debts while complying with federal and state tax laws.

Perhaps you’re ready to create an estate, a will for your family, discuss business success plans, or administer a probate. Our office can help with everything from drafting basic documents to complex analyses on the best avenues for wealth preservation within a family.

We make achieving your goals easier by providing you the same legal services and expertise as the expensive downtown Pittsburgh firms but without the higher rates and lengthy drive. We’re located at 140 South Main Street in the heart of Greensburg, PA and offer cost-effective solutions to your situations.

Whatever your needs, the best way to receive proper guidance on a specific legal issue is to talk with a reputable attorney you can trust.

Let’s work on turning your someday resolutions into actions for today! Call us at 724-216-5180 or email us at john@jacochranlaw.com. We look forward to working with you.