Probate & Estate Administration
After death, a deceased individual’s personal representative, sometimes called an executor or executrix, is faced with the task of probating the estate, collecting the assets, paying debts and taxes and distributing the estate property. This can be an overwhelming task, but the experienced attorneys and staff at Stuckert and Yates are ready to assist in ensuring that your wishes are carried out in a timely and efficient manner.
Our firm will assist in probating the will, filing the appropriate paperwork with the Register of Wills, preparing an inventory, preparing a Pennsylvania Inheritance tax return and a Federal Estate tax return, if necessary, and finally, preparing an accounting. Throughout this process we will provide guidance and support to an executor or administrator in successfully administering and closing the estate.
What is Probate?
Probate refers to the process through the Pennsylvania courts that is used to validate a will, administer payment to creditors and manage distribution of the estate assets. Probate can be an intricate process that includes collecting assets, compiling an inventory and appraising assets, paying and collecting debts, filing and paying estate taxes, and distributing remaining assets to beneficiaries.
Pennsylvania Inheritance Tax.
The Pennsylvania inheritance tax applies to assets owned by someone at the time of his or her death.
In general, Pennsylvania inheritance taxes are due on the estates of individuals who are domiciled in Pennsylvania at the time of their death. In addition, Pennsylvania inheritance taxes are also due with respect to non-resident decedents who own real estate within Pennsylvania at the time of their death. The inheritance tax return is due within nine months of the date of death. The tax rates vary from 0 percent to 15 percent depending on the relationship of the beneficiary to the decedent. To learn more about the Pennsylvania inheritance tax, please contact our attorneys.
Our attorneys will work with you personally to help you find sound strategies to limit the impact of Pennsylvania inheritance and estate taxes. We have the skill and experience to handle your most complex estate planning and administration needs.
Federal Estate Tax & Portability.
Very large estates may be subject to Federal estate taxes. For calendar year 2022, the Federal estate tax is imposed at a top rate of forty percent (40%) on transfers in excess of the $12.06 million exemption amount. Through proper planning and a feature known as “portability”, a married couple may have available to them an exemption from Federal estate taxes of two times that amount, or approximately $24.12 million. Under the The Tax Cuts and Jobs Act of 2017, these exemptions are scheduled to sunset and return to lower levels as adjusted for inflation for tax years beginning January 1, 2026. The assets that comprise a Federal taxable estate are numerous and include, for example, real estate, securities, cash, tangible personal property, retirement assets, life insurance, many trust accounts/assets, business interests and prior taxable gifts. The Federal estate tax return is due within 9 months of the date of death, and where a married couple wishes to take advantage of the double exemption amount, it is necessary to timely file a Federal estate tax return upon the death of the first spouse to die even if no Federal estate taxes are due at that time.
The rules regarding portability and the filing of a Federal estate tax return are complex and time-consuming. We invite you to contact our attorneys to learn more about this topic.
For additional information regarding probate and estate administration, please contact us or call us at 215.968.4700 to schedule a consultation.
Jessica L. VanderKam, Esquire