rwoc: What a difference does a will make?

Montgomery County, PA

P.O. Box 311, Norristown, PA 19404-0311
Courthouse Hours: 8:30a.m. to 4:15p.m.
Phone: 610-278-3000
Website: www.montcopa.org

WHAT DIFFERENCE DOES A WILL MAKE?
WHAT IS A WILL?
A Will is a writing signed at the end by a person at least eighteen (18) years of age and of sound mind wherein that person directs the distribution of property at death. The Will may also appoint guardians of the estates of minors who receive property under the Will.
SHOULD EVERYONE HAVE A WILL?
Yes. Generally, for young married persons - to dispose of their property and to appoint proper persons as the guardians of the persons and estates of their minor children; for the middle-aged - to provide a plan of distribution for their dependents by benefiting those with the greatest need and conserving their property for their spouse and/or children; and, for the elderly - to make distributions which benefit spouse, children, grandchild and charities.
WHAT OCCURS WHEN THERE IS NO WILL?
Pennsylvania law applies to the appointment of personal representative and the distribution of property by designating the heirs and their share of the decedent's estate. Guardians of the person and the property of minors must be appointed by the Orphans' Court.
WHEN IS A WILL EFFECTIVE?
A Will is effective at the death of the testator. It may be revoked at any time prior to death by a Will or Codicil later in date or by destruction of the Will itself by the testator. The Will which the Register may allow to Probate is the last Will signed by the testator.
DOES THE LAW REQUIRE THE SIGNATURE OF THE TESTATOR TO BE WITNESSED AT THE TIME OF SIGNING?
No. The law does not require eyewitnesses (subscribing witnesses) to the signature of the testator in order for the Will to be valid. However, it is the custom to have two (2) subscribing witnesses present since at the time of probate, two (2) witnesses, subscribing or non-subscribing, must appear and identify under oath the signature of the decedent on the Will. Wills can be made self-proven if proper acknowledgements and affidavits are signed by the testator and witnesses at the time of execution. Self-proving Wills eliminate the need for the witnesses appearing at the Register's office.
WHEN SHOULD A WILL BE CHANGED?
The disposition of one's property is necessarily determined by many personal factors including family and personal relationships and interests in charities. A Will should be changed when those relationships, including divorce and death, change. Changes to a Will may be made either by a completely revised Will or by a Codicil conforming to the requirements for a valid Will.
WHAT PROPERTY PASSES BY WILLS?
Property owned solely in the name of the decedent passes by Will. Property owned by the entireties (husband and wife), jointly or in the trust does not pass by Will. Advice as to what specific property does or does not pass by Will and what property is or is not subject to Pennsylvania Inheritance Taxes should be obtained from your attorney.
IS THERE ANY TIME LIMITATION ON THE VALIDITY OF A WILL?
No. A Will does not 'expire' or become invalid because of the passage of time. It becomes operative when a person dies. A person may make many Wills in their lifetime. The last Will of the person before death is the valid one.
ARE LIFE INSURANCE PROCEEDS SUBJECT TO PENNSYLVANIA INHERITANCE TAX?
No. Life insurance proceeds are exempt from the Pennsylvania Inheritance Tax provided that the decedent died after December 13, 1982.
ARE TRANSFERS MADE PRIOR TO THE DECEDENT'S DEATH
SUBJECT TO PENNSYLVANIA INHERITANCE TAX?
It depends. Transfers made within one year of the death of the decedent, if made without valuable and adequate consideration in money or monies worth at the time of the transfer, is taxable to the extent that the transfer exceeds $3,000.00 per transferee during any calendar year. Property that was transferred with the decedent retaining a life interest in same is also taxable.
WHAT ARE THE SPOUSAL TAX RATES?
The rate of tax for transfers to a surviving spouse is dependent on the statute in effect as of the decedent's date of death. The applicable rates and effective dates are:
 
Dates of Death Rate
Prior to July 1, 1994 6%
July 1, 1994 through December 31, 1994 3%
January 1, 1995 and after 0%
DOES PENNSYLVANIA RECOGNIZE CONVENIENCE ACCOUNT?
No. Pennsylvania does not recognize convenience accounts. If an individual adds a name to an account and should the person added to the account pre-decease, the surviving person whose name remains on the account would be required to pay Pennsylvania Inheritance Tax on a portion of the account.
QUESTIONS:
Questions concerning any of the material contained on this page may be directed to the Montgomery County Register of Wills Office at (610) 278-3400. 
The Montgomery County Register of Wills Office is located on the Second Floor, of the Courthouse in downtown Norristown.
Office hours are Monday through Friday, 8:30 a.m. to 4:15 p.m.
 
GLOSSARY OF TERMS:
 
BENEFICIARY - A person named to receive property or other benefits
 
CODICIL A supplement or an addition to a Will. It may explain, modify, add to, subtract from, qualify, alter, restrain or revoke provisions in a Will. It must be executed with the same formalities as a Will.
 
DECEDENT A term used to identify a deceased person.
Elective Share  The surviving spouse's right to request to take a statutory share of the decedent's estate rather than under a Will or the intestate laws.
 
ESTATE The property owned by a person at death over which an executor or administrator is authorized to exercise control either by virtue of a Will or, in the absence of a Will, by the Probate Code.
 
EXECUTOR/EXECUTRIX  Person appointed by the testator (maker) to carry out the directions and requests in his/her Will.
 
INTESTATE Where there is no valid Will at death.
 
ISSUE  All of a person's lineal decedents of all generations (i.e., children, grandchildren, great-grandchildren).
 
JOINT TENANCY Property held in the names of two or more persons. The property passes to the surviving joint tenant on death of the other joint tenant or joint tenants.
 
LETTERS OF ADMINISTRATION  The order issued by the Register of Wills empowering a party to gather and distribute the assets of an estate when the decedent died without a Will or did not name an executor in a Will or where the executor dies, renounces his appointment or is not qualified.
 
LETTERS TESTAMENTARY The order issued by the Register of Wills to the executor named in the Will of the decedent to allow the executor to administer the estate.
 
LIFE ESTATE A right to use or occupy property for the life of the person named, which completely expires upon the death of the person named.
 
NEXT OF KIN  Those persons most nearly related to a decedent by blood (i.e. children, parents, brothers and sisters .etc.)
 
PERSONAL PROPERTY Any property which is not included in the definition of real property; tangible property such as: furniture, books, automobiles, jewelry and clothes; and , intangible property such as: money, stocks, bonds and/or bank accounts.
 
PER STRIPES This demotes the method of dividing a share of an estate where a class or group of beneficiaries take the share which their predeceased ancestor would have taken if he/she survived the testator. These members of the group take by their predeceased ancestor's right of representation. (For example, if person P dies leaving no spouse and is survived by two children A and B and the two children of his deceased child C that is, E and F - then A and B would each receive 1/3 of the estate and E and F would equally share C's 1/3, thereby each receiving 1/6.)
 
PROBATE This means "to prove" a Will. A Will is proved when it is submitted to the Register of Wills who determines the Will to be valid and issues a decree appointing a personal representative (executor) to administer the estate of the decedent.
 
REAL PROPERTY Land and things attached to land; buildings, fences, walls, trees, growing crops, etc.
 
SPOUSE ALLOWANCE The surviving spouse's right to request up to $2000 from the personal representative in addition to any provisions for his/her benefit contained in a Will or by intestate law.
 
TENANTS BY THE ENTIRETIES A form of joint ownership exclusively for husbands and wives. On the death of a spouse, the surviving spouse becomes the sole owner of the property.
 
TESTATOR/TESTATRIX A deceased person who leaves a Will disposing of property.
 
WITNESS A person who is over 18, not incompetent and who witnesses the testator's original signature to a Will and who, in the presence of the testator, signs the Will attesting his presence at the time the testator signed, or acknowledged signing, the Will. A person is not disqualified from being a witness because he or she is a beneficiary of the testator.
 
FUNCTION OF THE REGISTER OF WILLS
The Register of Wills is an elected official, one of whose functions is to determine whether a document offered for probate should be received as the last Will of the decedent. Where a Will does not name an executor, the Register determines who shall administer the estate of the deceased.
Wills are frequently challenged on the grounds of forgery, lack of mental capacity of the testator, or undue influence. The Register hears testimony with regard to any challenge and makes a decision accepting or rejecting the document offered.
Where there is no Will, the Register grants Letters of Administration, usually to the next of kin. Where there is a dispute among the heirs as to who would serve as Administrator, the Register will conduct a hearing and resolve the dispute.
 
A SPECIAL NOTE:
THIS INFORMATION HAS BEEN ISSUED TO INFORM AND NOT TO ADVISE. IT IS BASED ON PENNSYLVANIA LAW. THE STATEMENTS ARE GENERAL, AND INDIVIDUAL FACTS IN A GIVEN CASE MAY ALTER THEIR APPLICATION OR INVOLVE OTHER LAWS NOT REFERRED TO HERE.