Estate Planning in Pittsburgh
- The foundation of estate planning for most people is a last will and testament. The vast majority of people can properly dispose of their estate through a will. The key factor to consider with regard to a will is tax consequences.
The two main purposes of estate planning--and, by extension, a last will and testament--are to ensure that a person's assets are conveyed to intended individuals upon her death and to avoid or minimize tax liability. You particularly need to pay attention to federal estate tax consequences.
Most people can convey all of their property through a will without any or only minimal tax consequences. The amount of an estate's assets that is excluded from federal estate taxation changes from time to time. For example, in 2003 the exclusionary amount was $1 million; by 2009, that amount climbed to $3.5 million. It is important to pay attention to the exempted amount in the future in order to avoid unnecessary tax liability. You can obtain this information from the Internal Revenue Service website at irs.gov.
Occasionally the Allegheny County (Pittsburgh) Bar Association as well as local attorneys who practice probate and estate planning law offer seminars for local residents. These sessions provide basic information about estate planning and crafting an appropriate will. Information about these educational services can be accessed from time to time at the bar association's website at acba.org. - If the value of your estate is too large to pass to your heirs without undesired tax consequences, your focus should turn to a family trust. When you establish a family trust, your heirs (your spouse, children or grandchildren in the case of a family trust) become the beneficiaries of your assets when you die without the need for your estate to be probated or for the payment of estate-related taxes. In Pittsburgh estate planning, a considerable number of people do rely on a family trust as the vehicle to convey property from generation to generation in order to avoid reduction of these assets through taxes.
You should consider hiring a Pittsburgh attorney to assist you in establishing a family trust for a number of reasons. First, an experienced local probate or estate planning lawyer will understand what specific resources are available to you in the community to serve the interests of your family trust once created. These resources include accountants, potential institutional trustees, and investment and financial planning services. Second, a local attorney understands the nuances of the Allegheny court system, which is essential in regard to probate matters. - A valuable tool for overall estate planning in Pittsburgh is the use of the gifting process. If you have assets that will be higher than the exemption amount permitted under the Internal Revenue Code, you can reduce the value of your estate by conveying gifts in your lifetime.
Pursuant to the Internal Revenue Code, you can convey to a specific individual a gift valued up to $16,000 each year with no tax liability. For example, if you have three children, you can convey a total of $48,000 annually without any tax consequences. Additionally, if you are married and have three children, you can undertake what is known as a split gift; in other words, you can convey a total of $96,000 to your children each year with no tax consequences. - Estate planning practices are consistent in all communities across the United States. All states have adopted the Uniform Probate Code or similar versions of this statutory scheme. You can obtain a listing of Pittsburgh attorneys that practice estate law through the Allegheny County Bar Association; the bar association cannot, however, recommend a particular lawyer. The organization can be accessed through its website at acba.org
