Should I have a Living Trust? A Living Trust is a legal entity which you can create to contain assets such as your home and bank accounts, so that you are no longer the owner of those assets, but rather the Trustee of the Trust which owns your assets.  While you still have complete control of your assets, the title to them has shifted from you as an individual into the Trust, which may or may not offer additional protection from creditors depending on the type of asset.  At your death, the assets in the Trust do not need to go through the public, quasi-judicial process of probate, but rather remain in the Trust with a new Trustee appointed as your successor.  Having a Living Trust can streamline the process of transitioning your assets after your death, as they can avoid probate and Executor fees, and your assets and net-worth

Will the Federal Estate Tax Affect Me? The Federal Estate Tax will affect you if your assets and investments total a certain amount when you pass away.  The tax, levied by the Federal Government, will be a percentage of the transfer of your estate at the time of your death. For 2017, the estate and gift tax exemption is $5.49 million per individual, up from $5.45 million in 2016 and should continue to inch up every year. That means an individual can leave $5.49 million to heirs and pay no federal estate or gift tax.  A married couple will be able to transfer about $11 million ($10.98 million) without paying any federal estate and gift taxes.  Using a relatively new tax planning tool called “portability,” a married couple can avoid expensive, complicated estate planning and still avoid paying any Federal Estate Tax.  A Portability election allows a decedent’s unused exclusion

What are the Tax Rates for the Pennsylvania Inheritance Tax? When assets are transferred to family or friends after a person dies, whether through a Will, intestacy laws, or from a retirement account, the Commonwealth of Pennsylvania levies a tax on that transfer based upon the relationship of the beneficiary to the decedent. The inheritance tax rates are as follows: ZERO PERCENT (0%): transfers to spouses, parents of children who pass away before turning 21, or charities. FOUR AND A HALF PERCENT (4.5%): transfers to lineal descendants such as grandparents, parents, children (including adopted and step-descendants). TWELVE PERCENT (12%): transfers to non-lineal descendants such as siblings (including adopted siblings and step-siblings). FIFTEEN PERCENT (15%): transfers to unrelated individuals. Proceeds of Life Insurance policies are exempt from Pennsylvania Inheritance tax. Inheritance taxes must be paid within 9 months of a decedent’s passing to avoid paying interest, and if paid within 90