Legal Insights: Estate Planning
Estate Planning Documents Every Pennsylvania Adult Needs
The estate planning documents Pennsylvania adults need address two different legal problems. The first is what happens after death: who inherits property and who administers the estate. The second is what happens during life if a person becomes unable to manage finances or make medical decisions. Both issues require planning. Without the right documents, family members may have no authority to act without court involvement.
Pennsylvania law provides several straightforward tools to address these situations. A complete estate plan usually includes a will, a durable financial power of attorney, and a health care power of attorney or advance directive. In some cases, a revocable living trust may also be appropriate. Each document serves a different purpose and works together with the others.
The Will: The Foundation of Estate Planning Documents in Pennsylvania
A last will and testament directs how assets in your estate are distributed after death. The will names an executor who administers the estate, identifies beneficiaries, and often designates a guardian for minor children. Without a valid will, Pennsylvania intestacy law determines who inherits property, which may not reflect what the individual intended.
A will does not avoid probate. Assets passing under a will go through the probate process with the Register of Wills in the county where the decedent lived. Probate involves procedural filings, notice requirements, and administration of the estate by the executor. For a discussion of timing and procedure, see our guide on how long probate takes in Pennsylvania.
The Durable Financial Power of Attorney
A durable financial power of attorney authorizes an agent to manage financial affairs if the principal becomes incapacitated. This authority can include paying bills, managing investments, handling real estate transactions, interacting with banks, and dealing with tax matters. The term durable means the authority continues even if the principal becomes incapacitated.
Pennsylvania powers of attorney must comply with statutory requirements contained in the Probate, Estates and Fiduciaries Code. Documents that do not meet those requirements may be rejected by financial institutions. Without a valid power of attorney, family members may need to petition the Orphans’ Court for guardianship to manage finances.
Health Care Power of Attorney and Living Will
A health care power of attorney appoints an agent to make medical decisions if a person cannot communicate or make decisions independently. The agent can consult with physicians, review treatment options, and authorize or decline medical procedures based on the patient’s wishes.
Pennsylvania also recognizes living wills or advance directives, which record specific end-of-life treatment preferences. While a living will provides written instructions, a health care power of attorney appoints a person who can interpret medical information and make decisions as circumstances change. Most comprehensive estate planning documents in Pennsylvania include both.
A will addresses what happens after death. Powers of attorney address what happens if you are alive but unable to act. A complete estate plan prepares for both situations.
Call 412-351-4422 or schedule a consultation to discuss your estate planning documents.
When a Revocable Living Trust May Be Appropriate
A revocable living trust allows a person to transfer assets into a trust while maintaining control during life. The individual typically serves as trustee and beneficiary while competent. A successor trustee manages the assets if incapacity occurs or after death. Property owned by the trust can pass to beneficiaries without probate.
Revocable trusts do not reduce Pennsylvania inheritance tax because the creator retains control during life. The trust’s primary benefits are privacy, administrative efficiency, and continuity of management. Even when a trust is used, families must still consider Pennsylvania inheritance tax when assets transfer after death.
Trusts are particularly useful when individuals own real estate in multiple states, wish to avoid multiple probate proceedings, or want greater privacy in asset distribution. However, the trust must be properly funded. Assets not transferred into the trust during life may still pass through probate.
When a Simple Will-Based Plan Is Enough
For many Pennsylvania residents, a will combined with a financial power of attorney and a health care power of attorney provides a practical and effective plan. Individuals with a primary residence, retirement accounts with named beneficiaries, and straightforward family structures often do not require a revocable trust.
The appropriate estate planning documents depend on the individual’s assets, family structure, and planning objectives. A plan designed around those facts provides far greater protection than generic documents prepared without legal guidance.
Common Questions
What estate planning documents does every Pennsylvania adult need?
Most adults should have a will, a durable financial power of attorney, and a health care power of attorney or advance directive. These documents address both death and incapacity.
Does a revocable trust avoid Pennsylvania inheritance tax?
No. Because the trust creator retains control during life, assets in a revocable trust remain subject to Pennsylvania inheritance tax at death.
How often should estate planning documents be reviewed?
Estate planning documents should be reviewed after major life events such as marriage, divorce, birth of a child, relocation, or significant financial changes.
Estate planning documents work best when they are coordinated with how assets are actually owned and titled.
Contact Lebovitz & Lebovitz to review or prepare your estate planning documents.