Pennsylvania residents who are looking to create an estate plan should include their digital assets as well. These assets could be anything from a Facebook account to the password to get into a computer or flash drive. As with physical items, an individual will want to create a list of digital assets that need to be accounted for. Ideally, an individual will include the username and password of his or her primary email account.
Pennsylvania residents and others who haven't updated their estate plans recently may find that they don't necessarily meet their needs anymore. For instance, a plan may be missing key documents such as an advanced medical directive and a financial power of attorney. That should be accompanied by a will in almost all cases. Failing to review an estate plan may result in outdated beneficiary designations.
Pennsylvania residents who are creating an estate plan might want to use a living trust to keep the estate plan more private and avoid probate. A living trust can be a powerful tool in an estate plan, but there are some common mistakes that can mean beneficiaries are unable to take advantage of its benefits.
Pennsylvania residents should be aware of how the Tax Cuts and Jobs Act will affect their estate plans. The legislation allows individuals a short-term opportunity to reallocate a substantial amount of money without being assessed federal estate, generation-skipping transfer or gift taxes.
In December 2017, Congress passed a highly-debated and widely-discussed tax bill. Among many other sweeping changes, there could be effects on estate planning for people in Pennsylvania and throughout the country. The bill contains a few provisions in that regard.
Pennsylvania parents may plan on leaving money to their adult children. However, many of them may not choose to talk to their children about their inheritance. Having this conversation may enlighten a beneficiary as to where to look for the money that is being left behind and how to make the best use of it from a tax perspective.
When Pennsylvanians get married, they likely do so without considering the fact that their marriages might later end in divorce. Unfortunately, many couples do eventually divorce. Research has demonstrated that there are several common reasons that cause couples to end their marriages.