Estate Lawyer Lackawanna County, PA
A Lackawanna County, PA estate lawyer understands that clients want to do all the can to ensure that every exemption available to them is used when preparing their estate plan. After all, you want your assets to go to your beneficiaries, not to the government. One beneficial tool that can help is the annual gift tax exemption. These exemptions can be used for gifts to family, friends, and even charities and are especially popular around the holiday season. The following is a brief overview of gift tax exemptions. For more detailed information about your situation, contact Hoegen & Associates, P.C. to find out how we can help.
How Important Are Exemptions to Estate Planning?
When a person dies, an inventory of all of their assets is conducted, along with the valuation of these assets. One reason this is done is to determine if there are any federal or state taxes that may be owed. If there are no exemptions, then there is a high likelihood that the tax burdens owed by the estate could have a significant impact on its final value, cutting into how much the decedent’s beneficiaries will receive. Unfortunately, there have been many situations where estates high net-worth estates are wiped out because of poor estate planning.
Using annual gift tax exemptions can help mitigate this expensive issue and could even result in a larger inheritance for beneficiaries. In some cases, working with a skilled Lackawanna County estate lawyer may even reduce the final tax debt completely using the gift tax exemption planning, along with other estate planning options.
Utilizing the Annual Gift Tax Exemption
To reduce their federal tax obligations upon death, taxpayers may transfer up to $12.06 million in their lifetime. This is the figure for 2022. In 2023, that lifetime amount increases to $12.92 million. This exemption doubles for married couples.
There is a per-person limit each year that can be given away. This year (2022), that amount of tax-free gift-giving is set at $16,000. In 2023, that figure will increase to $17,000. Again, the amount of the exemption is doubled for married couples.
Once you have reached the lifetime limit on the gift tax exemption, your estate will not be allowed any additional tax benefits, however, working with an attorney and planning out how these gifts are given should provide the most benefits to your estate.
Contact an Estate Lawyer for More Information
If you would like to find out how the gift tax exemption could help alleviate the tax burden on your estate, call Hoegen & Associates, P.C. to schedule a free consultation with a skilled Lackawanna County estate lawyer. There are many other types of estate planning tools that may also be available for your situation. Our lawyers can evaluate your estate and offer legal advice on the types of options that would be most beneficial for your situation and provide the most financial protection for your family’s future.
How Estate Administrators Take Inventory Of An Estate After Someone Passes
Estate administrators carry a significant role when someone passes away, and one of the most critical tasks is to take inventory of the deceased’s estate. This process is essential for ensuring that all assets are accounted for and distributed according to the will or state laws. An accurate inventory not only helps in managing the estate but also provides transparency for beneficiaries and creditors. In this article, we will explore how estate administrators go about this important responsibility.
Identifying And Locating Assets
The first step for estate administrators is to identify and locate all the assets owned by the deceased. This can range from tangible assets like real estate, vehicles, and personal belongings to financial accounts such as bank accounts, investments, and retirement funds. Administrators may also need to account for any digital assets, such as cryptocurrency or online accounts. This initial phase can be time-consuming, as it often requires sorting through paperwork, checking financial statements, and even contacting institutions to confirm asset details. Working closely with a Lackawanna County, PA estate lawyer can help streamline this process by ensuring all assets are identified in a timely manner.
Evaluating And Valuing The Estate
The next step is to determine the value of the assets once they are located. Some assets, like real estate or vehicles, will require a formal appraisal, while others, such as cash in a bank account, can be easily valued based on current balances. For personal belongings, the administrator must decide whether these items hold any significant financial value, as well as if they should be sold or distributed to beneficiaries. Accurate valuation is crucial for determining the estate’s total worth, which will impact how debts are paid and how assets are divided among heirs.
Paying Debts And Expenses
Before distributing the estate, it’s necessary to handle outstanding debts and expenses. This includes paying off any loans, credit card balances, or taxes that the deceased may have owed. The administrator is responsible for notifying creditors and settling these debts using the estate’s assets. Our Lackawanna County estate lawyer will share that it’s important to keep detailed records of all transactions during this phase, as beneficiaries and other interested parties may later request an accounting of the estate’s management.
Distributing The Remaining Assets
Once debts and expenses are settled, the administrator can distribute the remaining assets to the beneficiaries as outlined in the will or according to state law if there is no will. This often involves transferring titles to real estate, closing accounts, and distributing funds to multiple heirs. The administrator ensures that this is done in an orderly fashion, with all beneficiaries receiving their rightful share.
Closing The Estate
The final step in the process is closing the estate, which involves filing a final accounting with the probate court and obtaining a release from liability. Once this is done, the administrator’s duties are complete, and the estate is officially settled. By this point, all assets should have been properly managed, debts cleared, and beneficiaries notified.
Legal Support For Finalizing The Estate
Estate administration can be a complex task, but with the right approach and attention to detail, it can be carried out efficiently. For those tasked with this responsibility, having the right legal support is essential. Our team at Hoegen & Associates, P.C. has been providing guidance on each step of the process since 1971. If you’re facing estate administration, we recommend contacting a Lackawanna County estate lawyer to assist you in managing the process smoothly. Our team is ready to help you reach an effective resolution.
