Tag Archives: ESTATE LAW

Who has legal rights to the home?

Q: If there are three siblings and one sibling is deceased, and she was married. Dad had a house but died and left no will. Does the one deceased sibling’s husband have any rights to the house along with the remaining siblings? The husband also has Alzheimer’s and in a nursing home. (Plum Borough, PA)

A: I will assume that the sibling died prior to the passing of your father, your father owned the home and as you said, he had no will when he died, and your mother predeceased him, or they were divorced prior to his passing. If this is correct, his home will pass under the intestate laws (no will) of PA. Under your facts, his 3 children, and the child or children of a deceased child (if any) will inherit his estate property, which will include the house, in equal shares. If the deceased child (your sibling) had a child or children, that child or children will inherit the share of their deceased parent (your sibling) which would be one-quarter.

Can my parent’s signed letter be considered a will upon their death?

Q: My mother is in the advanced stages of Alzheimer’s. My father has power of attorney over her. They are 85 years old. My sister and I do not live in PA. He doesn’t want to do a will. He sent me a letter in the mail which listed of all his assets and properties that are all paid off. He added in the letter that he wants me to be the executor, I get 3/4 of their estate and my sister gets a 1/4. He is afraid that everything they worked hard for will be given away (he has a lot). He insisted that I sell everything and not give it away. But he won’t get a will. Any advice will be appreciated. If I had some facts like how long it would go through probate? Meanwhile properties sit not maintained. How much will go to the state. If you don’t have a will do you pay more in death taxes or probate court? Thank you! (Alexandria, VA)

A: You need to tell him that his worst fears could be recognized by not having a will done by an experienced attorney which is in full compliance of the law. A bad will can cost his estate and heirs more money in the long run. In PA, a handwritten will, called a “holographic will” signed by the testator and witnessed by two persons who sign as witnesses, is admissible. A handwritten document signed at the end by the testator even if not witnessed by two persons is also admissible. However, in these cases, where the will is not “self-proving” through the notarization process, the witnesses themselves must come to court or their affidavits be obtained, The later instance (not witnessed) will involve a hearing in which the witnesses must be able to testify that the signature is in fact the testator’s signature and the directives in the will are in fact his testamentary wishes. It is a difficult standard to prove and the result would be that the will is inadmissible. If your father wants to give your more of the estate than the intestate laws (no will) provides, he should do a will through an attorney. If he refuses, have him write a document titled “Will”. He will need to write out to whom his property will pass and choose an Executor. Have him sign at the end, then have two witnesses sign beneath him. Make sure these witnesses are disinterested and will be available in the future to come to court or sign affidavits if needed.

Can I be evicted from heir’s property if I am an heir and have paid the taxes for 14 years?

Q: My 83 and 91-year-old aunts are trying to sell the land. Neither one has ever paid taxes on this property nor have they lived here since the 50’s. I inherited the mobile home on the property after caring for my 76-year-old dad who died in 07 I moved to care for him after my mother died in 04 when I became an heir. I am 66 years old, never delinquent on taxes for property or my inherited mortgage for this land. I paid taxes, my mother paid them before, my grandmother paid them since the ’50’s. I am a veteran and a retired CPS worker and suffer from PTSD and anxiety. Can my aunts evict me just because they are older heirs? On my retirement income I can’t afford to move, and my mobile home is bricked in. Thank you for any advice that you can give me. (Lucerne Mines, PA)

A: There is not enough information for me to answer this. I suggest you gather the deeds, wills and any other documents you can and see a lawyer. It will likely come down to who at this time owns the property. If your aunts are the only heirs, they own it and I don’t understand why you had been paying property tax on it. If you are an heir along with your aunts, you have options. In that case, the three of you will need to reach an agreement. If they want their money, you may be forced to buy them out. If they don’t want their money out of the land, perhaps they will agree to execute a new deed which has your share pass to their heirs after their death and give you a life estate to live on the property. If they are agreeable to letting you live there, and do not want money, you have some options.

I am the borrower on a vehicle loan but not the owner

Q: I am the borrower of a $21,000 Jeep loan. My ex-boyfriend passed away and he is the owner-he is on the title. Where does this leave me and how can I get paid back??  Am I able to trade in his vehicle if his mother or wife sign off on it? (Pittsburgh, PA)

A: If he is on the certificate of title to the Jeep, and you are on the bank loan, the Jeep is owned by his estate and will pass to the heirs in his will, or if no will, to his intestate heirs. It is not a good situation to be contractually bound to pay for something that you do not own. I would need to know what the facts were that led this arrangement-his bad credit and he was the principle driver? If you were the one paying for this for his benefit, hopefully the mother and wife will be agreeable and sign it over to you. If not, and they want to liquidate the vehicle, you may be able to file a claim against his estate if one is filed. I suggest a consultation with an attorney with whom you can share all the missing facts and documents.

Can IRA value be estimated on the PA-REV-1500 or need to be exact?

Q: Our father passed last June, and my brother is executor. My sister handled disbursing the IRA split 5 ways. The executor filled out the PA-REV 1500 inheritance tax form and put an estimate which was $260 under. Is that a red flag? Also does the executor need to have a separate bank account from which to pay the inheritance tax or can it be paid from his personal bank account? (Pittsburgh, PA)

A: The correct way to value assets on the PA inheritance tax return is to obtain the correct date of death value from the financial institution. When the PA Department of Revenue audits the return, it is possible that they will detect the difference and when they issue their Notice of Appraisement, they will require extra tax to be paid, if the asset is in fact undervalued. There is a bit of confusion as to what is going on here. Are there other estate assets? Is there a will and if so does it permit inheritance tax owed on non-probate assets to be paid from probate money? If this IRA is the only asset, inheritance tax can be paid by one heir, two heirs, or all heirs from their personal accounts. As long as it is paid, the DOR does not care by whom. I would pay for a consultation with an estate attorney to make sure you are doing this correctly and if it is determined that you are not, let the attorney handle this. You have potential income tax issues with any IRA. It may be beneficial to the heirs to pass the income tax on this IRA to the heirs to report on their individual income tax returns instead of accounting for income on the estate 1041 and paying the much higher tax rate.

Can we use inherited money as down payment to buy house from estate?

Q: My mom inherited a beach house in Avalon NJ with her 4 other siblings. She wants to keep the house, but they want to sell it. She doesn’t have the funds to buy out all 4 siblings, so to keep the house in the family I was looking to purchase the house, using her inheritance money that she would give to me from the house as a down payment. Can this work? (Murrysville, PA)

A: It would be up to the other 4 siblings to agree on a sales price that is fair to all. If you agree with that price, I do not see why this could not work if everyone wants it to. This happens from time to time during the administration of estates. One heir wants to buy the family home using their inheritance as part of the consideration. It can work.

Will I pay inheritance tax as a spouse?

Q: My husband, deceased Aug 2017, had some property in his name only, this property was purchased before we were married, and one piece was purchased after marriage, is this property taxed as inheritance tax for me (spouse). Is there anything taxable to me (spouse) as inheritance? I live in Allegheny County, in Pennsylvania. (Verona, PA)

A: If the property is in his name only and not in his name and yours, as husband and wife, it will pass to the heirs named in his will. If he has no will it will pass in accordance with the PA intestate succession statute. As applicable to spouses, the first 30K will pass to the spouse and the balance will be shared by the spouse (50%) and the children of both (50%). Spouses are subject to a PA inheritance tax rate of 0% and children, 4.5%. This means that if the house is worth 100K, 65K passes to the spouse but is taxed at 0% and the spouse will therefore pay no inheritance tax. 35K passes to the children and is taxed at a lineal rate of 4,5%. Permissible deductions may apply to further reduce tax liability. I suggest you meet with an attorney to prepare the inheritance tax return.

Should I put utilities in my name?

Q: I lived with elderly mother all my life. All the utilities were in her name, but I paid the bills. She died 2 years ago. I still live in the house and still pay the bills. Shortly after her death I told the alarm company that she died, and they said there was no need to change anything because I had continued to pay the bill. But now I’m wondering if I should try to change the name on the utilities and how. (Sharpsburg, PA)

A: As you can see, the utility provider mainly cares about being paid, not who is paying. I know of no such law that mandates you change the name on these accounts. Perhaps someone else does. I would however change the name on the accounts. It will establish a credit history with the providers attributable to you as a payee. As far as real estate taxes go, you need to update who is living in the house. This is to avoid wrongly benefiting from any senior citizen’s discounts if you are not a senior citizen. I would also inform the property insurer as to her death and request the account to be switched into your name. For all you know there is a clause in the policy that negates coverage if your mother died or moved.

What if probate can’t find heirs to accept timeshare?

Q: If probate names beneficiary after beneficiary to accept a timeshare and each and one disclaims the timeshare, how deeply into the decedent’s, “family tree” will the probate continue to search for some remote relative? (White Oak, PA)

A: The Executor or Administrator has the duty to use due diligence in finding heirs. This will involve paying for a genealogical search. If no heirs are found or heirs are found, and the remaining heirs disclaim. The attorney will have to close the estate. the timeshare will lapse and eventually escheat to the PA Department of Revenue Unclaimed Property Division. Should an heir later come forward, they can apply for the unclaimed property by filing out a form and producing required paperwork.

What will my mother at the age of 91 pay out for inheritance?

Q: My brother passed away with no will and my mother inherited his estate property, a $53,000 house property, and $88,000 from 401k. My question I need to know about how much she pays out on taxes and will this affect her Medicare in the future. She lives in assisted living section 8 which her rent will go up on this inheritance? (Bentleyville, PA)

A: As long as he had no children or spouse, his parents will be his intestate heirs.An inheritance tax bill will not magically come to you in the mail, unfortunately. You will need to file an inheritance tax return and pay inheritance tax. The law requires this to be filed within 9 months of the date of death. The law also provides a 5% discount if you pay an estimate of inheritance tax within 3 months of death. The applicable tax rate for your mother because she is a lineal heir is 4.5%. Deductions are permitted to be taken on the inheritance tax return for funeral expenses, filing fees, attorney and executor fees and reasonable expenses involving the sale of the home as well as other bills and debt. Depending on how this house and 401K are titled, you may need to open an estate. I would recommend gathering as many documents as you can for his assets, expenses and debts and sitting down with an estate attorney to discuss what you need to do.