The Difference Between a Living Will and a Health Care Power of Attorney

Many people assume that when they pass away, their spouse or children will automatically inherit everything. Unfortunately, thats not always the case. Without a proper estate plan, the state decides who gets whatand their decision may not align with your wishes.If you dont have a will or trust in place, your family could face unnecessary legal battles, unexpected distributions, and even financial loss. Lets break down what happens when you dont have an estate plan and how you can protect your loved ones today.Who Inherits If You Die Without a Will?In Pennsylvania, when someone passes away without a will, their estate is distributed according to intestacy laws. That means the government has a default plan for who gets your assets. Heres how it works: If youre married with children: Your spouse does not automatically inherit everything. Instead, your assets could be split between your spouse and your children, even if they are minors. If youre married without children: Your spouse will inherit some of your assets, but your parents could also get a portion of your estate. If you have children but no spouse: Your children will inherit your estate, but if theyre under 18, the court will decide who manages the assets on their behalf. If youre unmarried and childless: Your assets will go to your closest legal relativessuch as parents, siblings, or even distant relativesbased on state law. If you have no legal heirs: Your entire estate may go to the state, meaning the government could take everything youve worked so hard for.Why Intestacy Laws Can Create Family Conflicts Unexpected distributions: You may have intended for your spouse to inherit everything, but under Pennsylvania law, your children or even your parents could end up receiving a share. Court intervention: If your heirs disagree about how assets should be divided, they may have to go to probate courtleading to family disputes and costly legal fees. Delays and frustration: Without a will or trust, your loved ones will likely have to go through the probate process, which can take months (or even years) before assets are distributed.How to Protect Your Family & Legacy Create a legally binding will or trust  This ensures that your assets go exactly where you want them to. Name guardians for minor children  Without a designated guardian, the court decides who raises your children. Establish power of attorney documents  This allows someone you trust to make financial and medical decisions if you become incapacitated. Keep your estate plan updated  Life changes such as marriage, divorce, new children, or new assets should prompt an estate plan review.Dont Leave Your Legacy to ChanceWhat happens if you die without a will? Without an estate plan, youre giving the government control over your assets and your familys future. With the right planning, you can avoid unnecessary legal battles, protect your loved ones, and ensure your wishes are honored. Schedule a free consultation with our estate planning attorneys today and take control of your legacy https://book.entrustedlegacy.law/#/introcall

Protect Your LegacyA revocable living trust is a powerful tool in estate planning, allowing you to manage your assets during your lifetime and seamlessly transfer them to your beneficiaries when the time comes. However, creating a trust is only the first stepfunding it ensures it works as intended.At Entrusted Legacy Law, we understand that the process can feel overwhelming. But dont worry this guide will simplify the often-misunderstood steps of funding your trust, so you can effectively protect both your assets and your loved ones future.What Does Funding a Trust Actually Mean?Funding a trust might sound like a financial transaction, but its more about transferring ownership or titling your assets in the name of the trust.This ensures the trust, rather than you personally, legally owns your property and accounts.What Can and Cant Be Included?Can be included: Real estate, financial accounts, personal property (e.g., jewelry, artwork, collectibles), business interests, and other tangible or intangible assets.Cannot be included: Certain retirement accounts (such as IRAs or 401(k)s) are typically not retitled into your trust.Why It MattersBy funding your trust, you ensure your assets avoid probate, minimize delays, and are distributed exactly as you intendall while helping loved ones steer clear of the courts.Why Funding Your Trust Is Not OptionalFailing to fund your trust essentially renders it a hollow document. You might sign all the paperwork to establish your revocable living trust, but it wont serve its purpose unless your assets are transferred into it.Risks of Not Funding Your TrustProbate Concerns: Your assets may still go through probate, which can be time-consuming and costly.Family Conflicts: If your beneficiaries arent clearly named or your trust isnt properly funded, disputes among family members can arise.Unexpected Delays and Legal Fees: Your loved ones could be burdened with court proceedings and attorney costs. Real-life stories abound of families who discover, too late, that the trust wasnt fundedand thus offered no benefit. But with proper guidance, these pitfalls are entirely avoidable.Preparing for the Process: What Youll Need in HandBefore you begin funding your trust, gather all relevant paperwork and list out the assets youd like to include. Getting organized upfront can save you time, money, and headaches down the line.Documents and Asset ListsDeeds to any real estate properties.Bank and brokerage account statements.Titles for vehicles, boats, or other valuable items.An inventory of personal property, including art, jewelry, or collectibles.Business ownership documentation and any intellectual property registrations.Work closely with your estate planning attorney or financial advisor to ensure you have complete records and to avoid overlooking any important assets.How to Fund a Revocable Living TrustStep One: Transferring Real Estate to Your TrustReal estate often comprises the largest portion of a persons estate, making it a logical starting point when funding your trust.The Deed Transfer ProcessDraft a New Deed: Collaborate with an attorney to create a new deed listing your trust as the property owner.Record the Deed: File the new deed at the appropriate county recorders office.Notify Lenders: If you have a mortgage, inform your lender to confirm that transferring the property to a trust is permissible under the loan terms.Once recorded, the property is officially owned by your trust and will bypass probate, ensuring smoother transitions for your beneficiaries.Financial Accounts: Moving Money Without Missing a BeatTransferring your financial accounts into the trust is vital to keeping them out of probate and maintaining continuity if something happens to you.Steps for Transferring Financial AccountsContact Your Institution: Let your bank or brokerage know you want to retitle the account(s) in the name of your trust.Provide Documentation: You may need to present trust documents or a certificate of trust to confirm the trusts existence and structure.Keep Good Records: Maintain a detailed record of which accounts have been transferred, including account numbers and transfer dates.Quick Tip: Certain accountsparticularly retirement accountsmay have specialized rules. Always check with your financial institution or an advisor before making any changes Naming Your Trust as the Owner of Personal PropertyDont forget high-value items like artwork, jewelry, collectibles, or even vehicles. While smaller personal items might not require formal title transfers, anything of significant value should be carefully documented.Personal Property MemorandumMany estate planners recommend using a personal property memorandum for smaller belongings. This allows you to list personal items and designate who should inherit themwithout requiring a formal amendment to your trust. Talk with your attorney about whether this approach is right for you.Business Ownership: Transferring Your Entrepreneurial LegacyIf youre a business owner, properly transferring ownership ensures your company and its assets are protected, even if you become incapacitated or pass away.Steps for Business TransfersUpdate Ownership or Stock Certificates to reflect the trust as the owner.Address Tax Implications: Although Entrusted Legacy Law does not offer tax planning, consult with a qualified tax professional to minimize potential tax consequences.Dont Forget IP: Intellectual property, trademarks, and patents often hold significant valuemake sure these are included.By moving your business interests into the trust, youre helping secure the companys continuity and protecting your beneficiaries from legal or financial turmoil down the road.Debunking Myths About Retirement Accounts and TrustsMany people assume they should move IRAs or 401(k)s directly into their trust. However, most retirement accounts cant simply be retitled in the name of the trust without potential drawbacks or penalties.Best Practices for Retirement AccountsKeep Accounts in Your Name: Typically, youll retain the account in your own name.Consider Beneficiary Designations: Name your trust as a secondary beneficiary (often behind a spouse or primary beneficiary).Consult a Tax Professional: A CPA or tax advisor can guide you on any required minimum distributions (RMDs) and potential tax implications.Reviewing, Refining, and Updating Your Trust Over TimeYour estate plan is a living document that should adapt to major life changesmarriage, divorce, the birth of children or grandchildren, moving states, or a significant shift in assets. Scheduling regular reviews with Entrusted Legacy Law helps ensure everything remains current.Annual Reviews: Keep track of any new assets or changes in personal status.Life Events: Promptly update the trust after significant milestones to avoid unintended consequences.The Trust Funding Checklist: Recap and Final StepsWeve covered a lot of ground. Heres a quick summary of the essential tasks:Transfer Real Estate: Deed properties into the trust.Retitle Financial Accounts: Move checking, savings, and investment accounts under the trusts name where appropriate.Include Personal Property: Use a personal property memorandum for valuable items like artwork or jewelry.Update Business Ownership: Transfer stock certificates or LLC membership interests.Check Retirement Accounts: Name the trust as a contingent beneficiary if that fits your strategy.Schedule Reviews: Regularly revisit your plan to address changes in life circumstances.If you need help with any part of this process, were just a call away!Final Thoughts: Secure Peace of Mind for You and Your Loved OnesFunding your revocable living trust is the key to ensuring that your assets are truly protected and that your wishes are honored. By proactively retitling property, updating accounts, and staying vigilant about ongoing changes, you create a solid foundation for your loved ones security and well-being.At Entrusted Legacy Law, our goal is to help you take that vital next stepwithout confusion or unnecessary stress. Well guide you through the trust-funding process, ensuring every detail aligns with your goals.Your Legacy, Your WayReady to protect your assets and preserve your familys legacy? Schedule your consultation today. Let us create a plan that gives you and your family peace of mind for years to come. To learn more call, us today at 412-282-3625.

Your will is one of the most important legal documents youll ever create. It reflects your wishes for how your assets should be distributed and who should handle your estate when youre no longer here. But life changes, and so should your will. Whether youve had a major life event, changed your mind, or simply realized your will is outdated, you may need to update it to ensure your intentions are honored.At Entrusted Legacy Law, were here to help Pennsylvania residents navigate this process without stress or confusion. In this guide, well explain when and how to change your will, what to avoid, and why working with a professional matter. Lets dive in.Life Changes. Your Will Should Too.Creating a will isnt a set-it-and-forget-it task. Life doesnt stand still, and neither should your estate plan. Have you recently gotten married? Had a new baby or grandchild? Maybe youve bought property, like a home in Harrisburg or farmland in Lancaster, or experienced the loss of a loved one named in your will.These are just a few reasons why you might need to revisit and update your will. Failing to make changes can lead to confusion, unintended consequences, or even family disputes. Keeping your will up-to-date ensures your legacy is protected and your wishes are crystal clear.Yes, You Can Change a Will Heres What to KnowThe short answer is yes, you can change a will in Pennsylvania. Whether youre making a small adjustment or a major overhaul, the law allows you to update your will at any time as long as you follow the proper legal process.Heres an example: If you remarried recently in Pittsburgh, you might want to include your new spouse in your will and ensure your updated wishes override the old ones. A clear, legally valid change protects your new family while avoiding confusion.What You Should Do When Updating Your Will1. Work With an Estate Planning AttorneyWhile it might be tempting to make changes on your own, DIY updates can create costly mistakes. A qualified estate planning attorney ensures your changes are legally valid and clearly documented. This prevents future disputes among your beneficiaries.2. Draft a New Will When its time for will updates, its often best to create a new will entirely. This helps eliminate confusion caused by multiple amendments.3. Communicate With Your FamilyUpdating your will can impact your loved ones, so its a good idea to keep them informed. For example, if you plan to leave the family home in Lancaster to one child, explaining your reasoning now can prevent hurt feelings or misunderstandings later.Pro Tip: Once you update your will, store it in a safe place where your executor can easily find it. Let your executor know where to access the most current version.Common Mistakes to Avoid When Changing a WillUpdating your will is straightforward when done correctly, but there are some pitfalls to watch out for:1. Dont Handwrite Changes on the Original DocumentAdding notes, crossing out sections, or handwriting changes on your will may seem like a quick fix, but in Pennsylvania, this wont hold up in court. Informal changes can render your will invalid.2. Dont Forget to Revoke Old Versions If you draft a new will, make sure to revoke any previous versions. Having multiple wills can confuse your executor and lead to disputes over which version is valid.3. Dont Skip the Witnesses In Pennsylvania, changes to your will must be signed and witnessed by at least two people. Without proper witnessing, your updates may not be legally recognized. At Entrusted Legacy Law, we provide two witnesses and notary for you at your Signing Ceremony.Avoiding these mistakes ensures your will is updated properly and reduces the risk of challenges later on.Can an Executor Change a Will? Understanding Their RoleOne of the most common questions we hear is, Can an executor change a will?. The short answer: No, they cant.An executors job is to carry out your wishes exactly as stated in your will. They cannot rewrite, alter, or ignore any part of it even if family members disagree with your decisions.For example, lets say you leave your vacation cabin in the Poconos to one child and not the others. Even if the other children object, the executor must follow your instructions. This is why keeping your will clear, updated, and legally sound is so important.By addressing concerns during your lifetime and updating your will as needed, you can reduce tension and ensure your executor has a smooth process to follow.A Simple Guide to Updating Your Will in PennsylvaniaChanging your will doesnt have to be complicated. Follow these steps to ensure your updates are legally valid:Review Your Current Will: Take a look at your existing will and make a list of the changes you want to make.Decide on a New Will: Draft a new will to avoid confusion.Work With an Estate Planning Attorney: A professional ensures your changes meet Pennsylvanias legal requirements.Revoke Old Versions: Destroy outdated copies of your will or mark them as revoked to prevent future conflicts.Store the Updated Will Safely: Keep the new version in a secure location and let your executor know where to find it.When Should You Update Your Will? Key Life EventsMajor life changes often signal its time to update your will. Here are some key events to watch for: Marriage, Divorce, or Remarriage: Include or remove a spouse as needed.Birth or Adoption of Children or Grandchildren: Update beneficiaries to reflect your growing family.Buying or Selling Significant Property: If youve bought a home in Pittsburgh or sold your Lancaster farmland, your will should reflect these changes.Death of a Spouse, Beneficiary, or Executor: Replace individuals named in your will if needed.Changes in Finances or Tax Laws: Big financial changes or tax law updates may impact your estate plan. We recommend reviewing your will every 3-5 years to ensure it still aligns with your wishes and life circumstances.Why Professional Guidance MattersChanging your will on your own might seem simple, but small mistakes can cause major issues for your loved ones. DIY changes can leave your will unclear, invalid, or open to challenges.At Entrusted Legacy Law, we work closely with families across Pennsylvania to ensure their wills are updated properly and reflect their true intentions. To make things even easier, we offer our clients a complimentary three-year review to discuss any updates or changes needed to keep their estate plans current and effective. Whether youre making a small update or starting fresh, we make the process clear, efficient, and stress-free.Take Control of Your Estate Plan TodayKeeping your will updated is one of the best ways to protect your legacy and provide peace of mind for your loved ones. Dont let life changes catch you off guard.Ready to update your will? Contact Entrusted Legacy Law today for trusted guidance and support. Lets make sure your wishes are clear, valid, and protectednow and for years to come.