Phone : (412) 366-6334

Wealth Transfer

On this page, you will find some different issues that can arise with transferring your wealth to whomever you choose.

1. Wills

The first and foremost most important aspect of wealth transfer planning is having a well written and up-to-date will. A will primarily does 3 things: it identifies someone’s beneficiaries, explains how to distribute this person’s property and estate, and it names an executor to the will. A broad scoped, poorly written, or out-dated will may cause issues for your loved ones. Please consult an attorney for more information about wills. If you need to find an attorney, or can’t afford an attorney, B&B Benefits offers a service that will connect you with local attorneys for a very reasonable cost. 

2. Probate

Probate is the legal process in which a recently deceased person’s wealth is transferred. Probate can be a very unpleasant process and can be very stressful to beneficiaries. Also, attorneys’ fees for probate can range anywhere from 3%-8%1 . Even more attorney fees can be accumulated by beneficiaries if disputes are brought up against the estate or will.

It is next to impossible to avoid probate altogether. It is crucial that an up-to-date well-written will is in place to expedite the probate process.

B&B Benefits offer solutions that can help your beneficiaries shield money from probate and be able to get on with their lives quicker and easier.

1 http://wills.about.com/od/howtoavoidprobate/tp/probatefees.htm

3. Estate Taxes & Inheritance Taxes

An estate tax is a tax that is levied against someone’s estate regardless of who the beneficiary is (few exceptions). An inheritance tax is a tax that is levied against the beneficiary and can change depending on the relationship the beneficiary has with the deceased.

These types of taxes can be levied at both the state and federal level. The federal government requires estate tax forms to filed if the combined gross assets (including property) and prior taxable gifts exceed $5.34 million in 2014.

Most of my clients don’t have to worry about the federal estate tax, but may need to look into the Pennsylvania Inheritance Tax. If you live in WV or OH, you don’t have a state inheritance or estate tax. The PA State Inheritance tax rate is shown in the table to the right.

At B&B Benefits, we formulate strategies to avoid these taxes as much as possible.

 
Relative
Tax Rate
 
 
Spouse & Charitable Organizations
0%
 
 
Children & Grandchildren, Parents & Grandparents
4.5%
 
 
Siblings
12%
 
 
All
15%
 

 

For more information, please contact Ian Bennett at (412) 901-7484 or click below to request a consultation.