Appointing a real estate executor is often considered an honor. However, if the asset does not match the invoice or required distribution, the position can be a headache. Experienced elder law or real estate lawyers can help you with the right advice. However, there are some things you need to know.
• Promitted and non-certified assets are considered separately. It’s important to know what your role as an executor includes. The executor’s job is to put together the assets that pass in the will and the bills or debts to be paid, then, according to the executor’s instructions, pay the debt, including taxes and probate costs, and give the remaining funds to the beneficiaries. Is to distribute. ..
• The executor has authority over the probate assets that pass in the will. But many assets do not go through the will. These include the revenue of life insurance policies for which individual beneficiaries are nominated. A joint tenant with a right to life, or in the case of a married couple, a jointly owned property if the entire tenant passes directly through it. Taxable funds — IRAs, 401s, etc. often pass outside the beneficiary’s will. However, Pennsylvania’s inheritance tax still has to be paid, with some exceptions, even if the property does not pass the will. For example, life insurance is not subject to inheritance tax. Property received from a deceased spouse is subject to a 0% inheritance tax. If the executor states that the inheritance tax on non-certified assets will be paid from the residual property, the executor must pay the tax on those assets from the certified property. (Otherwise, you will have to pay directly from the beneficiary.)
“If there is concern that real estate cannot even pay creditors, there are priorities established by state law. For example, credit card debt is not a top priority. Survivors will make a final VISA or MasterCard claim. Funeral claims may be ignored or delayed while you are seriously concerned about. “
• The beneficiary will inherit after the invoice has been paid. It may seem obvious, but when processing the passing assets, the executor first uses those assets to invoice the real estate and the valid remaining invoices of the decedent. You have to pay. This includes inheritance tax. (Only a few properties are subject to federal estate tax.) Therefore, you and the rest of the beneficiaries may not receive everything you expected. If Uncle George’s property is only $ 50,000 after paying an invoice that includes a funeral invoice, final medical bills, taxes, etc., he will not receive the full $ 75,000 expected. This is because the beneficiaries are paid from their net worth. However, there is another consideration. If you are also an executor, you are entitled to a fee unless your will stipulates otherwise. Your lawyer can discuss with you what is considered a reasonable fee, considering both the size of the property and the amount of work associated with it.
•First of all. If there is concern that real estate cannot even pay creditors, there are priorities set by state law. For example, credit card debt is not a top priority. Funeral invoices and the like can be ignored or delayed when the survivor is seriously concerned about the final VISA or MasterCard invoice. Credit card debt is an unsecured debt at the bottom of the list of priorities indicated by Pennsylvania and most other state laws. Some bills are more important than others. Knowing your priorities can be very helpful, especially if you have cash flow issues.
You must preferentially pay administrative fees such as attorney’s fees, executor fees, funeral homes, nursing homes, and uninsured medical fees incurred within 6 months of death. All of these costs can be deducted when the inheritance tax is taken into account. You will need to verify this information if your medical expenses are covered by health insurance or if your nursing home claim is covered by Medicare or Medicaid. If Medicaid pays, there may be priority claims that should not be ignored under estate recovery. The most important of these costs are those paid by Medicaid within six months of transit, which can repay all costs paid under the Real Estate Recovery Program. Talk to your elder’s lawyer for more information, if necessary.
• If you have paid the priority fee, you can repay it yourself. The executor may first pay administrative, other priority, or funeral expenses from his or her own funds. If you do this, you will need to record this and repay yourself after the real estate account is opened. The same applies to expenses paid from a joint account with the decedent.
Janet Colliton, Esq. A certified elder lawyer. Her work Colliton Elder Law Associates, PC, is in the offices of Elderly Law, Life Care, Special Needs, Real Estate Planning and Real Estate Management, and 790 East Market St., Suite 250, West Chester, PA 19382, 610-436. Limited to guardians. -6674, colliton @ collitonlaw.com. She is a member of the National Academy of Elderly Lawyers and, along with Jeffrey Jones of CSA, is a co-founder of Life Transition Services, LLC, a service for families in need of care. Watch “A Plan Ahead” on Wednesday at 4 pm on radio station WCHE 1520 with Janet Colliton, Colliton Elder Law Associates, and Ron Ehman, Next Home Signature.
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