Delaney & Fritz, P.C.Delaney & Fritz, P.C.2026-05-05T13:10:17Zhttps://www.delaneyfritz.com/feed/atom/WordPress/wp-content/uploads/sites/1600054/2020/04/cropped-favicon-32x32.pngOn Behalf of Delaney & Fritz, P.C.<![CDATA[When should I update my will?]]>https://www.delaneyfritz.com/?p=469162023-08-03T12:38:21Z2023-08-09T12:37:10Zwill to be valid in Pennsylvania, the following generally must be true:
Testator (creator of will) was at least 18 years old at the time of will creation.
Testator was of sound mind and not under duress at the time of will creation.
Testator declared will was theirs and signed it in front of two witnesses.
While a will does not expire, it will likely become outdated over time. That is why updating your will can be just as important as creating it in the first place. Failing to update your will on a regular basis, the information in the will may no longer be accurate when you pass away.
When should I update my will?
Experts suggest updating your will every three to five years or when a significant life event occurs. Some reasons to update your will may include the following:
Birth of a child.
Divorce (prior to filing is ideal, if possible).
Your child gets married.
Beneficiary develops substance abuse issues or debt problems.
Death of a beneficiary.
Death of an executor.
New laws that may impact your estate plan.
Purchasing a new home or other property.
Major financial change (e.g., winning a million dollars).
Change in relationship with beneficiary.
If you need to update your will, you or an estate planning attorney can draft a codicil, which you will have to sign in front of witnesses. If more major changes are needed, you can legally revoke your original will and replace it with a new one.
Many people make the mistake of creating a will and failing to update it regularly.]]>On Behalf of Delaney & Fritz, P.C.<![CDATA[Why parents need to draft a will]]>https://www.delaneyfritz.com/?p=469152023-07-11T23:35:05Z2023-07-10T23:15:44ZEveryone needs a will, especially parents
Everyone should have a will to express how they want their property to be distributed after their death, and to make their wishes legally enforceable. But your will isn't just about you and what you want. When you have a will, you make the estate administration process a lot easier and faster for your loved ones. Even if you don't have a lot of property to pass on, you will spare your loved ones a lot of headaches if you make certain decisions in advance.
For parents of young children, this is especially important. In your will, you can name a guardian for your children, and you can specify how you want your assets to be distributed to them.
If, by some awful chance, both you and the other parent should die in an accident, and you have not created a will, the court must decide these issues for you. It will decide who will serve as a guardian for your children and will distribute your assets to your next of kin according to a one-size-fits-all formula under state law.
All of this takes time. While the court is working through the details, your children may become wards of the state, perhaps living with foster parents. You may have left behind property that can make their lives easier, but the court will also have to figure out how to distribute that property and must appoint someone to be in charge of it.
The results can be very different from what you wanted, and can be very hard on your kids.
These are just some of the reasons why estate planning is essential, especially for parents.]]>On Behalf of Delaney & Fritz, P.C.<![CDATA[The importance of updating a will for Pennsylvania adults]]>https://www.delaneyfritz.com/?p=469132023-06-05T21:29:00Z2023-06-20T21:28:35ZMost people will need to update their will multiple times during their lifetime
Life brings about a lot of expected and unexpected changes, both good and bad. The people you were once close with when your will was first created may no longer be in your life for a multitude of reasons. For example, if you get divorced and enter into a new relationship and pass away without updating your will, your ex-spouse could end up with assets that you would have wanted your new partner to get.
Because of these situations, experts say it is important to review your will at least once every three to five years and make changes as necessary.
You should also make sure to update your will when a major event occurs. Some of these major events may include: the death of a spouse or child, the birth of a child, divorce, getting remarried, purchasing a home, or moving out of state.
Do I need to create a new will each time?
If you are making major changes to your will, it may be best to start from scratch and create a new will. Once your new will goes into effect, it will automatically override your old one. However, it is best to destroy the old will and include a clause in your new will indicating that it overrides any previous wills.
If you are making smaller changes (e.g., adding a beneficiary), a codicil or an addendum to your existing will is generally enough.
Updating a will is just as important as creating it. Make sure that you update you estate plan regularly so that your current wishes are reflected.]]>On Behalf of Delaney & Fritz, P.C.<![CDATA[Differences between a closing company and a real estate attorney]]>https://www.delaneyfritz.com/?p=469122023-04-28T15:13:56Z2023-05-23T14:57:30Zreal estate attorney differs from a closing company that specializes in titles and escrow. It’s a good question. Many people conflate the two, thereby leading them to believe that they don’t need an attorney on their side because they have the closing company. But the two are quite different.
Key differences between a closing company and a real estate attorney
To make sure you’re protecting your interests as much as you can, you should understand the differences between a closing company and a real estate attorney. That way you can surround yourself with the support and expertise that you think you need on your side.
Here are some of the key differences between a closing company and a real estate attorney:
An attorney protects you from risk: A closing company doesn’t represent you. Therefore, they’re not interested in advocating for what’s best for you. Instead, they just want to close the deal. A real estate attorney, on the other hand, puts your interests at the forefront. Therefore, your attorney can help you address disputes over material terms of the purchase agreements and resolve any title deficiencies that may exist, all with an eye on getting you the best outcome possible.
An attorney can negotiate on your behalf: A closing company won’t engage in negotiations. A real estate attorney will. This means that by having a legal ally in your corner, you can ensure that you’re pushing for the best outcome possible.
A closing company won’t help resolve title problems: As you approach closing on your real estate deal, you might find that there are title issues that threaten the finalization of the transaction. Since a closing company won’t hash these problems out for you, you may find yourself rushing for legal representation to salvage the deal. By having one of these legal professionals in place early on in the process, though, you can head off any unexpected title issues.
A real estate attorney can answer your questions: A closing company might be able to answer your general questions about the process, but they’re not going to be able to give you any sort of guidance. This can leave you with uncertainty about how to progress through the transaction process in a way that protects your best interests. You may need a real estate attorney to give you the guidance that you need to comfortably and confidently reach a positive result in your case.
Prepare yourself for a successful real estate transaction
When you engage in a real estate transaction, you should hope for the best but prepare for the worst. This means that you should expect unanticipated issues to come up that threaten your interests.
Fortunately, you might be able to head off those issues by educating yourself about the transaction process and surrounding yourself with the help that you need.]]>On Behalf of Delaney & Fritz, P.C.<![CDATA[What you need to know about trustee breach of the fiduciary duty]]>https://www.delaneyfritz.com/?p=469112023-04-07T13:53:29Z2023-04-19T13:49:37ZSigns that the fiduciary duty has been breached
A trustee has a fiduciary duty. This means that they’re required to put the interests of the trust and its beneficiaries first. All decisions that are made should support those interests. If they don’t, then the fiduciary duty may have been breached.
But breaching the fiduciary duty can involve much more than just some bad investment decisions. Here are some signs that the fiduciary duty has been breached in your situation:
Inadequate accounting: Trustees are required to keep a detailed accounting of trust transactions. This includes monitoring disbursements and investments, that way you, other beneficiaries, and the court know how trust assets are being managed. If the trustee’s accounting is lackluster, providing you with more questions than answers, then you’ve got a red flag that the fiduciary duty is being breached and you should ask more questions.
Lack of documentation: You should be able to request to see documentation pertaining to the trust’s management. If the trustee drags their feet or otherwise provides you with incomplete information, then that may be a sign that they’re trying to hide something.
Funds go missing without proper justification: If money is being misappropriated from a trust, then the trustee is probably going to try to justify it in one way or another. But those explanations might not be viable. Make sure you’re listening closely and fully understand what the trustee is saying. That way you can investigate the matter more fully to better determine what’s going on.
Favoritism: The trustee should treat all beneficiaries in accordance with the terms of the trust. But if the trustee appears to show favoritism towards one beneficiary, then the fiduciary duty may be breached as it pertains to you. Make sure you review the terms of the trust so that you better understand how assets are to be distributed.
Co-mingling funds: Trust assets should be held separate from the trustee’s own accounts. If the two are mixed, then there’s a good possibility that the trustee is trying to siphon money out of the trust for their own personal use.
Have you been subjected to a breach of fiduciary duty?
If you think that you have, then now is the time to talk to an attorney who understands this area of the law. By doing so, you can create a legal strategy to bring the mismanagement to a stop so that you protect your financial interests. You might also be able to recoup any money that you’ve lost out on.
But these are oftentimes complex matters. That’s why now is the time to start assessing your case to determine your next course of action.]]>On Behalf of Delaney & Fritz, P.C.<![CDATA[Understanding a real estate purchase agreement]]>https://www.delaneyfritz.com/?p=469102023-03-20T15:57:42Z2023-03-22T15:55:02ZThe sales process
Real estate transactions typically start with a buyer making an offer to the seller to purchase the property for a certain price.
The seller then has the option to accept or reject the offer or propose their own counteroffer.
After any negotiations are complete and an agreement is made, both parties will sign a real estate purchase agreement.
The real estate purchase agreement is a contract between the buyer and seller of the real estate. It spells out in detail how the sale of the property will occur.
The purpose of the agreement
This document is important because it provides instructions on what is to be done in certain situations. Many real estate transactions encounter unexpected occurrences or hindrances, and your purchase agreement can state what happens if these occur.
Like any other contract, your real estate purchase agreement is a binding legal document, so it is vital that you adhere to the terms. If you find that you are going to be unable to fulfill one of your obligations under the contract, you should contact an attorney immediately.
The real estate purchase agreement contains much more information than simply the agreed-upon price for the sale.
Basic party and property information
In addition to the price, details about the property, the buyer’s and seller’s contact information, property tax information and title insurance requirements are also included.
Financing
Most real estate sales are contingent on the buyer securing financing. That is, unless the buyer is paying the entire sales price in cash, they must obtain a mortgage to purchase the property.
The real estate purchase agreement usually contains terms about what happens if the buyer is unable to obtain the financing or secures it, but it later falls through.
The parties can agree to cancel the sale or extend any deadlines to see if the buyer can get financing elsewhere.
Warranties and inspections
Other common components of a real estate purchase agreement are warranty and inspection clauses.
The sale usually depends on certain inspections being performed and the real estate passing the inspections for the sale to go through. The seller can also put warranties in regarding the condition of the property.
These are just a few examples of what type of information is generally included in a real estate purchase agreement.
Helping you through the process
You will sign more documentation on your closing date, which is the date the real estate officially becomes yours and you receive the keys to the property.
Having a solid real estate purchasing agreement can prevent problems or complications in the transaction. Having legal assistance through the process is worthwhile.]]>On Behalf of Delaney & Fritz, P.C.<![CDATA[How can trusts benefit your estate and your loved ones?]]>https://www.delaneyfritz.com/?p=469062023-02-15T18:43:54Z2023-02-21T18:42:45ZWhat trust options are available to you?
There are a lot of trusts out there that you can use as a vehicle to transfer your wealth. Let’s look at some of them here so that you have a better understanding of your options:
Incentive trust: This is a trust that you can use to motivate your loved ones to act in a certain way. Here, the assets in the trust, or at least the bulk of them, aren’t released to a named beneficiary until a triggering condition is met, such as graduating college, taking a financial literacy course, getting married, or even holding a job for a certain period of time.
Spendthrift trust: With this type of trust, you limit your named beneficiary’s ability to use the money that you’ve placed in the trust by having the assets paid out in small increments rather than all at once. This protects the assets from being squandered away. This type of trust also disallows your beneficiary’s creditors from reaching the assets that are in the trust.
Charitable trust: This type of trust allows you to support a cause that you believe in by providing funds to it over time. You can also see significant tax benefits from using one of these trusts.
Discretionary trust: Here, you leave the distribution of trust assets in the hands of the trustee whom you’ve named to oversee the trust. It’s up to them, then, to determine when assets should be paid out to your beneficiary.
Pet trust: If you’re worried that your beloved pet will outlive you, then you may want to set up a pet trust. This trust sets money aside to ensure that your pet is adequately cared for even after you’re gone.
Special needs trust: This type of trust is used to support a loved one who has special medical needs. It provides them with financial support without affecting their ability to receive assistance from government programs.
Generation-skipping trust: With this type of trust, you pass assets directly to your grandchildren, thereby skipping over your own children. This trust carries tax benefits that may be desirable in your situation.
Do you need additional guidance?
If reading through these trust types has generated more questions, you may need to turn to a legal professional for guidance. By doing so, you can learn more about what the estate planning process entails and how it can be beneficial for you and your family.
Once you’re informed yourself, you can make the educated decisions that you think are best for you and your estate. That way, you can rest easy knowing that you’ve created the holistic estate plan that you need on your side.]]>On Behalf of Delaney & Fritz, P.C.<![CDATA[When do you need to revisit and modify your estate plan?]]>https://www.delaneyfritz.com/?p=469052023-01-16T14:08:50Z2023-01-19T14:07:17Zestate planning is a process that should be ongoing, meaning that you should revisit your estate plan from time to time to ensure that it still meets your needs. If you don’t, your estate’s assets could end up falling into the hands of people whom you never intended to inherit in the first place. It could also leave your family fighting over important assets, which can suck up a lot of time and money while ruining familial relationships.
So, when do you need to update your estate plan?
Most major life events should spur you to take another look at your estate plan. This includes the following events:
Marriage
Divorce
Birth
Death
Changed relationship
The acquisition of new assets
Moving to a different state
A change in the law that affects estate planning
These are just some events that you’ll want to pay particularly close attention to when they occur. Keep in mind, too, that these changes can pertain to you, your beneficiaries or even your named executor or trustee.
An example of why changes matter
Life events can have significant ramifications for your estate plan. For example, if you remarry and create a blended family, you might want to revise your estate planning documents. This is because you may want to provide resources to your new spouse and their children, but you also want to make sure that you protect your children from another relationship.
If you don’t, you could end up in a situation where your spouse inherits a significant portion, or maybe even all, of your estate without an obligation to pass those assets down to your own children.
Revisions to provide clarity
When you pass away and asset distribution comes into question, some focus is going to be given to your intent. By regularly revisiting your estate plan and revising it as needed, you can make clear how you intended your assets to be distributed. This can help prevent a lot of infighting and ensure a smooth transition of assets when the time comes.
Talking about modifications with your loved ones
Although it’s not required, it’s usually a good idea to talk about estate planning modifications with your loved ones. This will ensure that no one is taken aback when the time comes to distribute your assets, and it can help lead to other productive conversations with your loved ones about the estate planning process. Having these conversations can also reduce the risk of someone claiming that you lacked the mental capacity necessary to create legally binding estate planning documents.
Do you need more guidance?
There’s a lot to take into account when you engage in the estate planning process. While it may seem overwhelming at times, you need to be diligent every step of the way if you want to protect your interests, your assets and your loved ones.
That’s where the assistance of a legal professional may prove valuable. An experienced estate planning attorney can advise you of your options and when it may be necessary to create a new estate planning document or modify existing vehicles. They can also educate you on certain strategies that may better protect your assets and your loved ones.
If you think that you could benefit from that kind of representation, please consider reaching out to a legal team that you are confident will appropriately guide you throughout the process.]]>On Behalf of Delaney & Fritz, P.C.<![CDATA[Financial tasks after your spouse dies]]>https://www.delaneyfritz.com/?p=469022023-01-05T22:02:54Z2023-01-05T22:02:54ZPreparation can start now
Estate planning should address the administration and financial duties that the surviving spouse typically performs. It is a good idea to address many of these financial decisions and tasks now. Simplify your finances by consolidating your accounts and eliminating unnecessary accounts. Both spouses should be fully engaged and knowledgeable about their finances to handle matters in case their spouse dies.
Each spouse must be aware of their partner’s wishes for their estate. Wills and other estate documents should contain this information.
The priority tasks
Spouses are usually the estate administrator or representative for their spouse’s estate. Their tasks can be divided into urgent and less time-sensitive categories after a spouse dies.
First, obtain 5 to 10 original death certificates. Financial institutions and other entities must review this document before they can do anything concerning the estate. Other important documents include bank and brokerage statements and veteran’s discharge documents. Tax returns may help find previously undisclosed accounts.
Certain entities need quick notification of your spouse’s death. These include financial institutions, the Internal Revenue Service, the Department of Motor Vehicles, the Social Security Administration and the spouse’s employer. Cancel accounts for services in your spouse’s name if you do not use the product or service.
A court may need to appoint you as the estate’s representative. As a fiduciary, you will have the duty to ensure that all of the estate’s assets are distributed.
Other duties include collecting any funds owed to your spouse and obtaining a tax ID for the estate from the IRS. Your estate plan may need to be reviewed and updated because your deceased spouse may have played a role in your estate, such as being executor and heir.
Less-urgent tasks
Social Security may be an important source of income after retirement. A spouse may be entitled to a higher benefit from their deceased spouse, but they will stop receiving their monthly benefit check. Other potential Social Security benefits may include a widower’s benefit or benefits for a disabled child.
Surviving spouses are probably beneficiaries of their deceased spouses’ IRA. These may be rolled into their existing IRA, kept as a separate inherited IRA or disclaimed so it can go to other family members.
A final tax return and an estate tax return must be filed. Spouses with a child living with them may be able to file their return for the next two years at a lower rate as a qualifying surviving spouse.
Finally, review your finances. Income and expenses may be lower. Consider your future expenses and your entire portfolio. Keep expenses low, and your investments diversified. Attorneys can assist you with developing an estate plan that meets your needs. They may also help you administer estates and deal with these issues.]]>On Behalf of Delaney & Fritz, P.C.<![CDATA[Plan for your inheritance]]>https://www.delaneyfritz.com/?p=469032022-12-19T18:35:59Z2022-12-28T18:33:55ZHave a plan
The way heirs deal with their inheritances depends on their size, the beneficiaries’ financial situation and the heirs’ experience managing investments. But it is important for heirs and beneficiaries to review their financial situation now and develop a plan.
Pay off all of your debt, especially college and high-interest loans and credit card bills, after receiving an inheritance. Next, establish an emergency fund to cover three to six months of expenses.
Retirement
Saving for retirement can be done in many ways. You cannot directly investment money into a 401(k), 403(b) or other employer-sponsored retirement plan. But you can you use your inheritance to pay living expenses while increasing the money you contribute from your paychecks into your retirement accounts.
Brokerage accounts
IRAs and 401(k)s are prudent methods for saving for retirement. But there is a 10% penalty plus tax liability if you withdraw money from these and other retirement accounts before you are 59½.
Opening a brokerage account and investing the money on your own is recommended if you have an intermediate or short-term goal for your money. Open an account and then purchase stocks, bonds, mutual funds and exchange-traded funds.
Investing in index funds is an option if you are just beginning to invest. These are investment vehicles that are inexpensive, relatively hassle-free and track the S&P 500, Dow Jones Industrial Average or other market indexes.
Real estate
Using all or part of your inheritance to purchase real estate may be a sound investment. Home values have risen over the last few years and real estate may be seen as a way to fight inflation. Median home sale prices have grown by almost 1,400%, not adjusted for inflation, over the last 50 years according to the Federal Reserve Bank of St. Louis.
Current homeowners, however, should consider using their inheritance to pay off their existing mortgage. This converts that money into home equity and that money does not have to be paid to the bank or mortgage lender when the house is sold. Also, eliminating mortgage payments frees up substantial money each month for other investments.
Attorneys can help individuals draft wills and create trusts that also affect inheritances. Lawyers can also assist with estate administration.]]>