Frequently Asked Questions
How do you charge for your services?
We typically charge for our time using our current hourly rates. However, under limited circumstances we will provide a fixed fee quote for specifically delineated services. We also reserve the right to pass on certain "hard" costs incurred in providing our services to you.
Do we need to travel to your office in Bala Cynwyd to meet with you?
Meetings are generally held at our office in Bala Cynwyd, Pennsylvania. However, we are more than willing to accommodate your preference to meet elsewhere, whether at your home or at an office that is more accessible to you. When necessary, we have access to meeting space at offices in Center City Philadelphia, King of Prussia, Radnor, West Conshohocken, Bucks County and other locations in the Greater Philadelphia area, and, for our New Jersey clients, we have access to meeting space in Princeton, Mount Laurel, Mullica Hill and other locations in New Jersey. Typically, if we need to travel more than 30 minutes each way for a meeting, we will charge for our travel time.
What are the components of a basic estate plan?
Will, Revocable Trust, General Power of Attorney, and Health Care Advance Directives (Living Will).
What other basic documents do you regularly prepare in the estate planning process?
Family Limited Partnerships and Limited Liability Companies as well as a variety of trust documents, including: "Crummey Power" Trusts; Life Insurance Trusts; Dynasty Trusts; Asset Protection Trusts; Grantor Trusts; Non-Grantor Trusts; Minor's and Grandchildren's Trusts (utilizing the annual exclusion from the Federal gift and generation-skipping transfer tax); Qualified Personal Residence Trusts; Grantor Retained Annuity Trusts; Charitable Lead Trusts; Charitable Remainder Trusts; and Private Foundations.
How should estate planning clients prepare for the first meeting?
Complete the appropriate estate planning questionnaire on our "EPQs" page and provide it to us before the meeting if possible. Develop a general idea of who will be the beneficiaries of your estate plan (individuals and/or charities) and who you would like to have serve in the key fiduciary roles of Executor, Trustee, Agent (under General Power of Attorney and Living Will), and Guardian (if you have children under the age of 18). Note that you should have contingency plans for successors in these roles and may want to consider naming a corporate fiduciary (or giving an individual you trust the power to choose a corporate fiduciary as one of the contingencies).
How should estate administration clients prepare for the first meeting?
Unless we have maintained the original operative documents in our fireproof will vault, you should attempt to provide us with copies (or originals) of the operative documents (i.e., Will/Trusts) before the meeting. You should also be prepared to give us an overview of the asset base of the estate, and, if possible, copies (or originals) of the most recent account statements and filed income tax returns for the decedent. To probate the Will it will be necessary to bring to the courthouse (Register of Wills in PA, Surrogate's office in NJ) the original Will and a death certificate. Also, the Executor should have a check available to pay preliminary probate fees. For PA probates, if we are able to meet in center city Philadelphia, it may be possible to handle the probate process in a private office setting rather than at the Register of Wills.
What are the responsibilities of an Executor and a Trustee?
An Executor is responsible for administering your estate upon your death. That includes marshalling your assets, attending to any of your unfinished business including income tax reporting, paying your debts and any expenses incurred by your estate, overseeing the preparation of any inheritance or estate tax returns and estate income tax returns that may be required, and distributing assets to beneficiaries named under your Will. A Trustee is responsible for administering the terms of your trust, including investing assets, making required and discretionary distributions to trust beneficiaries, responding to inquiries of trust beneficiaries, maintaining records of the trust administration activities, and overseeing the proper income tax reporting for the trust.
How long does the Estate Administration process take and what are the basic steps?
A typical estate administration takes at least a year. If any assets are titled to the name of the decedent, the first step is to probate the Will and appoint the Executor named in the Will, or if there is no Will, or if there is no named Executor able to serve, an Administrator will be appointed. The Executor and Administrator are both referred to generically as a "Personal Representative". Other steps typically including the following:
1. Providing notices of administration to beneficiaries
2. In PA - legal advertising for the appointment of Personal Representative.
3. Retitling assets in name of estate.
4. Claiming benefits under life insurance policies, IRAs, Qualified Retirement Plans, and Annuities.
5. In PA - Within 3 months of death - considering pre-paying the PA inheritance tax to secure 5% discount.
6. Preparing state/federal inheritance & estate tax returns. Due date is 9 month anniversary of date of death, with the opportunity for a 6 month extension. In NJ, the inheritance tax return is due at the 8 month anniversary of death.
7. Selling real estate and other assets that will not be retained by the beneficiaries.
8. With respect to IRAs/Qualified Retirement Accounts:
a. For decedents who were 70.5 or older, ensuring that the final minimum distribution is taken by beneficiaries by December 31 of year of death.
b. Ensuring that the necessary first required minimum distribution is taken by beneficiaries by December 31 of year after decedent's death, or, under the 5 year rule, when applicable.
c. Plan for identifying beneficiary with "measuring life" by September 30 of year after year of decedent's death and evaluate "conduit trust" election by then where appropriate.
9. Evaluating whether disclaimers are appropriate, and if so, implementing them, within 9 months of the date of death.
10. Filing final income tax return for decedent, and income tax return(s) for Estate.
11. Distributing assets to beneficiaries and securing their approval of the administration of the estate by the Personal Representatives, usually by a Family Settlement Agreement, but, when necessary, by filing an accounting with the Orphans' Court in PA or the Surrogate's Court in NJ.
1. Providing notices of administration to beneficiaries
2. In PA - legal advertising for the appointment of Personal Representative.
3. Retitling assets in name of estate.
4. Claiming benefits under life insurance policies, IRAs, Qualified Retirement Plans, and Annuities.
5. In PA - Within 3 months of death - considering pre-paying the PA inheritance tax to secure 5% discount.
6. Preparing state/federal inheritance & estate tax returns. Due date is 9 month anniversary of date of death, with the opportunity for a 6 month extension. In NJ, the inheritance tax return is due at the 8 month anniversary of death.
7. Selling real estate and other assets that will not be retained by the beneficiaries.
8. With respect to IRAs/Qualified Retirement Accounts:
a. For decedents who were 70.5 or older, ensuring that the final minimum distribution is taken by beneficiaries by December 31 of year of death.
b. Ensuring that the necessary first required minimum distribution is taken by beneficiaries by December 31 of year after decedent's death, or, under the 5 year rule, when applicable.
c. Plan for identifying beneficiary with "measuring life" by September 30 of year after year of decedent's death and evaluate "conduit trust" election by then where appropriate.
9. Evaluating whether disclaimers are appropriate, and if so, implementing them, within 9 months of the date of death.
10. Filing final income tax return for decedent, and income tax return(s) for Estate.
11. Distributing assets to beneficiaries and securing their approval of the administration of the estate by the Personal Representatives, usually by a Family Settlement Agreement, but, when necessary, by filing an accounting with the Orphans' Court in PA or the Surrogate's Court in NJ.