Wills & Estate Settlement

When a person dies, it is often necessary to follow formal procedures in settling the estate.The process is called estate Administration. Both state and federal law establish certain requirements which must be followed.

What is Estate Administration?
Administration includes procedures and requirements relating to collecting of assets, satisfying of obligations such as debts, expenses and tax preparation, and filing and distribution of property to heirs and beneficiaries.

What Should Be Done First?
If someone close to you has died, make sure that their home is secure and nothing is lost or destroyed. Please note that it is illegal in Pennsylvania to enter a safe deposit box (other than that of a husband and wife) without notifying the Pennsylvania Department of Revenue or its authorized representative so that the contents of the box can be inventoried. Shortly after the funeral, an attorney should be contacted by the survivors to discuss the estate.

The attorney will also provide advice,determine whether administration will be required and explain what procedures will be involved. If there is a will the person named as executor should protect the will and give it to the attorney at the first meeting.

When Is Formal Estate Administration Required?
In almost every case en a person dies having personal property or real estate,an estate must be administered. An estate is administered by a personal representative. If there is a will, the personal representative named in the will is called the "executor." If there is no will, that person is referred to as the "administrator," who is chosen by the Register of Wills. The personal representative works with an attorney in complying with necessary legal requirements.

What Does A Personal Representative Do?
The personal representative is charged with the actual administration of an estate, and has the responsibility for performing all functions that are required. This includes the following the directions of the decedent( the deceased person) if there is a will, or following the requirements of the law if there is no will.

The representative also gathers information about the assets of the estate and the debts,notifies the beneficiaries under the will or the intestate heirs if there is no will,pays all debts and expenses as well as inheritance taxes, and distributes the assets to the beneficiaries of heirs.

Should I Have An Attorney Assist Me?
As a practical matter, it is very difficult for a non lawyer to correctly flow the required procedures in administrating an estate without the assistance of an attorney. The personal representative selects the attorney for the estate, often the same attorney who prepared the will.

What Happens During The Administration?
At the beginning, all assets of the estate,including personal possessions and real estate, are inventoried and sometimes physically gathered. All of The beneficiaries (if there is a will) or heirs (if there is no will) are located. They are told that they were named in the will and have a legal right to receive an inheritance. Funeral expenses, debts, state and federal taxes are paid, and necessary tax returns are filed.

Sometimes administration may involve the short-term management of a business or stock in a corporation. There could also be sale of real estate which was owned by the deceased.

At the conclusion of the administration period, a final accounting of all assets is presented for approval to the county court or, in appropriate situations, by family agreement. After approval, distribution of the balance of assets us accomplished.

What Fees Are Paid During Administration?
In addition to court costs fees- frequently based on a percentage of the gross value of the estate are paid to the attorney ad to the personal representative. These fees are paid out of the assets of the estate. Fee arrangements should be discussed during the first visit to the attorney who will be involved in the administration of the estate.

If you have further questions contact us at Munley, Munley & Cartwright.