Pittsburgh Elder Law Blog

When Pennsylvania residents die without wills identifying their beneficiaries and the division of their assets, their property is going to pass through intestate succession to their heirs according to state law. What this means is that if people fail to make wills and pass away, state law will determine how their assets will be distributed. It is important to note that the way state law distributes the wealth may not be the way the decedent would want it distributed.

The order in which heirs inherit when there is no estate plan or will is known as intestate succession. This is basically a list of people who have the right to inherit and in what order. Close relatives take precedence over distant ones. Typically, a surviving spouse almost always gets half the decedent's estate. If there are no living children or grandchildren, the spouse might even get the whole estate. If all are living, children and spouses typically share the estate. Living grandchildren get a deceased parent's share proportionately, but otherwise may not be entitled to anything.

Estate planning - many people in Pennsylvania may be hesitant to begin the process because they either think that it is too complicated or that they don't need an estate plan. But, are the people who are thinking like this really believe the myths about estate planning?

A recent news article detailed some of the most common myths about estate planning. For starters, there is the myth that all a person needs is a will. While having a will in place is definitely the bedrock of any sound, comprehensive estate plan, there may be assets that are not directly tied to the directions in a will, such as joint bank accounts, retirement accounts and life insurance policies. These assets will almost always be distributed outside of the directions contained in a will. Joint bank accounts pass to the surviving joint owners while retirement accounts and life insurance policies pay based on beneficiary designation. 

Once estate plans have been prepared by Pennsylvania residents, they usually feel pretty good about completing this important task. They have crafted plans for what will happen to their assets. They have powers of attorney in place, so that a trusted individual can make important medical and financial decisions if they are unable to do so. They have prepared living wills for end-of-life decisions. But, what good is estate planning if no one knows about it? What do parents need to inform their adult children of when it comes to their estate plans?

Many people wait until their senior years to craft estate plans. While previous posts here have pointed out that people of all ages could benefit from estate planning, many people still wait. By the time that many people do estate planning, their children are adults. It is likely that those adult children will be the primary beneficiaries, personal representatives and agents under the estate plans.

"Plan for the worst, hope for the best" is a common saying that many Pennsylvania residents likely know. In essence, the saying means that while we can always hope that the best outcome for any given situation will occur, it is prudent to plan in such a way that accounts for a different result. When it comes to estate planning, the saying can be particularly applicable.

Most people in Pennsylvania probably view estate planning as setting up an arrangement for the benefit of family members and close friends -- having a plan for assets after death can make their lives easier and provide crucial direction on the person's wishes. But, assets that will be part of an estate need to be handled in such a way that they can best benefit the planner during life as well, and no other situation needs more advance planning than long-term care.