Estate Planning
Estate planning involves creating a comprehensive plan to manage and distribute your assets during your lifetime and after your death. Our experienced attorneys help clients develop personalized estate plans, including wills, trusts, and powers of attorney, to ensure their wishes are carried out and their loved ones are protected.
SECURE Act 2.0
The SECURE Act 2.0, formally known as the Securing a Strong Retirement Act, is a piece of legislation that aims to build on the original Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019. The purpose of this legislation is to provide additional opportunities for Americans to save for retirement and to make retirement plans more accessible and flexible.
- The SECURE Act 2.0 alters the age for mandatory minimum distributions from retirement accounts, introduces new tax incentives, and simplifies various administrative processes.
- For individuals, the changes may require a reassessment of estate planning strategies, particularly if retirement assets or SME's are a significant portion of the Estate.
- The Act introduces new variables that ought to be integrated into financial models for investors in small- to medium-sized enterprises (SMEs), potentially impacting asset valuation and overall business appeal.
Do I Actually Need a Trust?
The suitability of a trust for Pennsylvania residents requires a comprehensive evaluation of individual circumstances and estate planning goals. If your goal is tax planning and probate avoidance, a Will is likely more appropriate unless you are likely to be subject to the federal estate tax.
- Trusts do not automatically exempt an estate from probate in Pennsylvania. While trusts can help assets within the trust avoid probate, any assets outside the trust may still be subject to the probate process. A comprehensive estate plan should consider all assets and integrate various tools to achieve the desired outcome.
- Trusts offer benefits but also have drawbacks. Trusts provide advantages such as privacy, control, and potentially avoiding multi-state probate for real estate. However, they require meticulous planning, ongoing administrative duties, and upfront costs. The suitability of a trust depends on individual circumstances and estate planning goals.
- Pennsylvania's inheritance tax applies to all property, regardless of the transfer method. Whether assets are passed through a will, trust, or other means, they are subject to Pennsylvania's inheritance tax. The tax rates vary based on the beneficiary's relationship to the decedent. Trusts do not inherently provide protection from inheritance tax liabilities.
