Estate Planning
(This outline represents a summary of a presentation given by the law firm of Wick, Streiff,
Meyer, O'Boyle & Szeligo, P.C ., in October, 2002)
1. Elements of a Valid Will:
A. Writing;
B. Signed at the end;
C. Intent to transfer assets upon death;
D. Designation of personal representative.
2. Advantages of Having a Will:
A. Self determination of who inherits what assets;
B. Restrictions may be imposed including how assets may be used;
C. Designation of person who administers Estate.
3. Dying Intestate (Without a Will):
A. State law governs;
B. Order of priority of heirs is pre-determined by Intestate Law.
4. Role of Personal Representative in Administration of Estate.
5. Pros and Cons of Guardianships, Trusts and Living Trusts.
6. Federal and State Taxes on Estate Assets:
A. No taxes on assets bequeathed or otherwise passing to spouse;
B. Federal tax exemption on $675,000 (applicable in year 2000) and remainder taxed at a rate ranging from 37% to 55%;
C. Pennsylvania tax rate is 6% on assets bequeathed to children and grandchildren and 15% on other beneficiaries;
D. Gifts to charity are exempt from both federal and state tax.
7. Steps for Preparation of Will:
A. Calculate the value of assets, including life insurance, IRA and 401(K);
B. Determine whether assets owned by husband, wife or jointly by husband and wife;
C. Decide who will receive the assets;
D. Any special requests or provisions including gifts to a church or charity.
8. Power of Attorney.
9. Living Will or Advanced Medical Directive:
A. Specifies types of treatment that are acceptable or not acceptable in the event of unconsciousness, terminal illness or permanent vegetative state;
B. Designates a representative to make medical decisions.