Tag Archive for: will in dubois

The Importance of Estate Planning in Pennsylvania

/in , , , /by

Estate planning — and finding the right estate planning attorney for you — is essential to ensure your assets are distributed as you wish, while minimizing legal and tax complications and providing peace of mind for you and your family.  In Pennsylvania, state-specific laws on inheritance, probate, and taxes make a well-crafted estate plan particularly important.  This blog post highlights why estate planning matters for Pennsylvania residents and key steps to get started.

Why Estate Planning Matters

Control Over Your Legacy

Without a will, Pennsylvania’s intestacy laws dictate how your assets are distributed, which may not reflect your preferences.  For example, if you’re unmarried with no children, your estate could pass to distant relatives or the state.  A will allows you to name beneficiaries, ensuring your assets go to the people or causes you value.

Streamlining the Probate Process

In Pennsylvania, probate is managed by the county Register of Wills and can be time-consuming and costly without proper planning.  A clear estate plan, including a well-drafted will, can simplify the process, reducing delays and expenses for your heirs.

Navigating Pennsylvania Inheritance Tax

Pennsylvania levies an inheritance tax on most estates, with rates based on the beneficiary’s relationship to you:

  • 0% for spouses and charities
  • 4.5% for direct descendants and lineal heirs (children, grandchildren)
  • 12% for siblings
  • 15% for other heirs

Strategic estate planning, such as gifting during your lifetime or charitable bequests, can help reduce this tax burden, preserving more of your estate for your loved ones.

Protecting Your Family

Estate planning goes beyond finances – it is about caring for those you love.  In Pennsylvania, you can designate guardians for minor children or include provisions for dependents with special needs.  These steps ensure your family is supported according to your wishes.

Preparing for Incapacity

Estate planning also addresses potential incapacity.  Pennsylvania recognizes advance directives, such as:

These documents ensure your wishes are followed and ease the burden on your family during challenging times.

Key Considerations for Pennsylvania Residents

Understanding State Laws

Pennsylvania has specific estate planning rules.  For example, holographic (handwritten) wills are only valid if they meet strict criteria.  Consulting an attorneyat ZwickLaw ensures your plan complies with state law and is legally enforceable.

Keeping Your Plan Current

Life events – like marriage, divorce, or the birth of a child – likely require updates to your estate plan.  Pennsylvania law may automatically adjust certain provisions (e.g., revoking bequests to an ex-spouse post-divorce), but relying on these defaults can lead to unintended results. Regularly review your plan to keep it aligned with your goals.

Including Digital Assets

Your estate plan should account for digital assets like online accounts or cryptocurrencies. Pennsylvania’s Revised Uniform Fiduciary Access to Digital Assets Act allows you to grant fiduciaries access to these assets, but you must explicitly include them in your plan.

Supporting Charitable Causes

If giving back is important to you, Pennsylvania’s tax exemptions for charitable bequests can maximize your impact.  Including charitable gifts in your plan can support your favorite causes while reducing your estate’s tax liability.

Getting Started

Estate planning may feel overwhelming, but it’s a proactive way to secure your legacy.  Follow these steps to begin:

  1. List Your Assets: Include real estate, bank accounts, investments, and personal property.
  2. Set Your Goals: Decide who should inherit your assets, how to minimize taxes, and any special provisions for loved ones.
  3. Work with an Estate Planning Attorney: An attorney familiar with Pennsylvania law can help you create a tailored will and other essential documents.
  4. Communicate Your Wishes: Share your plans with your family to ensure clarity and avoid surprises.

Get Answers to All of Your Questions – Contact Zwick Law

Estate planning is an important, proactive measure to preserve your legacy and ensure your assets stay with and benefit your family after you are gone. When you are ready to create or update your estate plan, consulting with an estate planning and estate administration attorney is highly beneficial.  The trusted estate planning attorneys at ZwickLaw are available to help you determine the best ways to distribute your estate and protect your assets long into the future.

For questions relating to your estate planning needs, contact either C.J. Zwick or Matthew R. Zwick at (814) 371-6400.  At Zwick Law, we’re always here for you!

*The use of the Internet, Facebook and/or any other form of social media communication with the firm or any individual member of the firm does not establish an attorney-client relationship.  Time-sensitive information should be directed immediately to the office of Zwick Law at (814) 371-6400.

The Importance of Medicaid Planning in Pennsylvania

/in /by

Understanding Medical Assistance in PA

In Pennsylvania, Medicaid is known as Medical Assistance (MA), a critical program that covers long-term care costs, such as nursing homes and assisted living, for eligible individuals.  With rising healthcare expenses, Medical Assistance can be a lifeline, but strict eligibility rules and the Pennsylvania Estate Recovery Program require careful planning to protect your assets.  Without a strategy, you risk depleting your savings to qualify, leaving little for your spouse or heirs.

Why Plan for Medical Assistance?

Pennsylvania’s Medical Assistance program has stringent income and asset limits.  For 2025, the asset limit for a single applicant is $2,000, excluding certain exempt assets like your primary home (up to $713,000 in equity).  Non-exempt assets, such as savings accounts, stocks, bonds, or secondary properties, must be spent down to meet this threshold unless protected through strategic planning.  This spend-down process can erode your financial legacy, forcing you to liquidate investments or deplete retirement funds that could have supported your spouse or been passed to your heirs.  For couples, the Community Spouse Resource Allowance (CSRA) allows the non-applicant spouse to retain up to $154,140 in assets (as of 2025), but careful planning is still needed to avoid impoverishing both spouses.

Pennsylvania’s Estate Recovery Program

The Pennsylvania Estate Recovery Program, mandated by federal law under Act 49 of 1994, seeks to recover Medical Assistance payments for long-term care services (e.g., nursing facilities, home and community-based services, and related hospital or prescription costs) provided to individuals aged 55 or older after August 15, 1994.  After the recipient’s death, the state can claim reimbursement from their probate estate—assets like homes, savings, or life insurance payable to the estate—if the estate exceeds $2,400.  This often involves selling the home, a significant asset for many, which can disrupt plans to pass it to heirs.  However, non-probate assets, such as jointly owned property with rights of survivorship or accounts with designated beneficiaries, are generally exempt from recovery in Pennsylvania, as the state operates a “probate-only” program.

Interrelation with Medical Assistance Planning

Medical Assistance planning is closely tied to the Estate Recovery Program, as it aims to protect your assets from both eligibility spend-down requirements and post-death recovery claims.  By proactively managing your estate, you can structure assets to meet Medical Assistance eligibility while minimizing the probate estate subject to recovery.  Strategies like transferring assets strategically or leveraging exemptions can reduce your countable resources and preserve wealth for your heirs.  Planning also ensures compliance with rules, such as the five-year look-back period, to avoid penalties that could delay care.  Effective planning safeguards your financial legacy and ensures access to necessary care without sacrificing your estate.

Key Strategies for Asset Protection

Effective tools include purchasing exempt assets, such as a vehicle, home repairs, or accessibility modifications, which are not counted toward Medical Assistance eligibility.  Strategic gifting to family members, when done within Pennsylvania’s five-year look-back period rules, can reduce countable assets, though improper gifts may incur penalties.  Converting non-exempt assets into income-producing vehicles, like Medicaid-compliant annuities, provides income for the community spouse while lowering countable resources.  Prepaying funeral expenses through an irrevocable funeral trust is another strategy, as these funds are exempt and reduce your asset total.  Additionally, establishing a life estate for the primary home allows the applicant to retain a residence while transferring future interest to heirs, which when done properly can potentially shield it from recovery.

The Role of Professional Guidance – Contact ZwickLaw

Navigating Pennsylvania’s Medical Assistance and Estate Recovery rules is complex, with pitfalls like improper transfers triggering penalties or recovery claims.  Consulting an attorney at ZwickLaw who is familiar with Pennsylvania’s regulations helps ensure compliance and maximizes asset protection.  Don’t wait for a health crisis to plan for Medical Assistance. By starting now, you can secure your financial future, access quality care, protect your assets from the Estate Recovery Program, and preserve your legacy for loved ones in Pennsylvania.

For questions relating to your Medical Assistance planning and asset protection, contact either C.J. Zwick or Matthew R. Zwick at (814) 371-6400.  At Zwick Law, we’re always here for you!

Contact Us Today for a Free Consultation

*The use of the Internet, Facebook and/or any other form of social media communication with the firm or any individual member of the firm does not establish an attorney-client relationship.  Time-sensitive information should be directed immediately to the office of Zwick Law at (814) 371-6400.

Common Estate Planning Mistakes & How To Avoid The Pitfalls

/in , , , /by

Creating an Estate Plan

Creating an estate plan is the best way to pass property and other assets to your loved ones in a manner that suits you and your family. Unfortunately, most adults in the United States do not have a will, and those who do often make serious mistakes that render the will invalid or impractical. To ensure your final wishes are executed properly, spend time creating and updating an estate plan with an experienced attorney who can provide accurate and reliable legal advice. Attempting to create and implement such an important legal document without proper assistance increases your chances of making one of these common estate planning mistakes.

Review Your Estate Plan to Ensure It Is Up to Date

Most people who invest time and money to create a last will and testament and other estate planning instruments do not properly review their estate plan to ensure it is up to date and applicable to changed situations and circumstances. Major life events and changes in circumstances may be overlooked, creating problems for your loved ones after you are gone. Those who neglect to update their estate plans throughout their lifetimes often accidentally omit after-born children and/or grandchildren, name people who predecease them, and/or choose a personal representative they no longer trust. The mere passage of time is reason enough to review your estate planning documents to ensure they remain applicable and coincide with your current intentions.

Your Will Does Not Impact Non-Probate Assets, Such as Life Insurance Policies

Life insurance policies ordinarily designate a primary beneficiary or beneficiaries – the person or persons who will receive all or some of a specified sum of money after the policyholder passes away – and a secondary beneficiary – in the event that the primary designee(s) predeceases the policyholder. Typically, beneficiaries to these policies are spouses, children, siblings, and/or parents. A person who has recently gotten divorced or who is estranged from a relative may no longer wish for that person to receive any part of a life insurance policy. Instead of updating the beneficiary designations with the life insurance company, a policyholder sometimes names a recipient of the policy proceeds in their will. Life insurance companies are required to pay proceeds to the named beneficiary in the policy, even if the designation is contrary to the directives in one’s will. So, while you need to update and review your last will and testament, you also need to review all non-probate assets, such as life insurance policies, annuities, and retirement accounts, to ensure your beneficiary designations remain applicable and coincide with your current intentions.

Keep a Detailed List of Your Assets with Your Important Estate Planning Documents

Leaving assets to family members and loved ones is thoughtful, but if your loved ones do not know where these assets are located or how to find them, receiving an inheritance may turn into a nightmare. Without a detailed list of information on your accounts, real and personal property, and other assets, your personal representative and beneficiaries will have to conduct their own search. Searching for assets is very time-consuming and frustrating, and some assets may go undiscovered for years. Keep a detailed list of your assets with your important estate planning documents to ensure all your assets are passed on to your loved ones.

Name a Trustworthy and Reliable Personal Representative of Your Estate

The personal representative of your estate is responsible for paying your debts, filing your inheritance tax return, and distributing your assets to your named beneficiaries. Being named an executor or executrix is considered an honor, but it is also a serious position that can be unbelievably time-consuming. Naming a child or relative simply because they are oldest or perhaps the favorite is not always the best idea. If the person you name as the personal representative of your estate is disliked, not capable of doing the job, or not trusted by your beneficiaries and other loved ones, your family could seek to have them removed from the position. This is not only time-consuming and expensive, but it can also take its toll on your family for many years to come.

Get Answers to All of Your Questions – Contact Zwick Law

Estate planning is an important, proactive measure to preserve your legacy and ensure your assets stay with and benefit your family after you are gone. When you are ready to create or update your estate plan, consulting with an estate planning and estate administration attorney is highly beneficial. The trusted attorneys at Zwick Law are available to help you determine the best ways to distribute your estate and protect your assets long into the future.

For questions relating to your estate planning needs, contact either C.J. Zwick or Matthew R. Zwick at (814) 371-6400.  At Zwick Law, we’re always here for you!

*The use of the Internet, Facebook and/or any other form of social media communication with the firm or any individual member of the firm does not establish an attorney-client relationship.  Time-sensitive information should be directed immediately to the office of Zwick Law at (814) 371-6400.