Legal Question in Wills and Trusts in Pennsylvania
Unnamed Beneficiary of Bank Accounts
My mother in law is 90 years old and in a failing mental state. Over the long years of her marriage, though she never worked, she controlled all of the finances of her marriage. As her health has failed, my father in law and his two daughters are worried about what might become of all of the bank accounts that are only in her name and of which she is still very secretive. My F.I.L. cannot get control of the money and his daughters are worried about what tax implications or probate implicatios might exist if something were to happen to their mother.
What would be their legal options while my M.I.L. is still somewhat lucid?
1 Answer from Attorneys
Re: Unnamed Beneficiary of Bank Accounts
My first suggestion is to have you Mother-in-law sign a Power of Attorney, that is if she is willing and capable of understanding what she is signing. The Power of Attorney is drafted by an attorney and gives the person your MIL appoints as her Agent the authority to speak with the bank on her behalf and manage her funds. A Power of Attorney can give the Agent the power to do everything your MIL can do. The Power of Attorney should be Durable meaning if your MIL becomes Incapacitated, unable to make deceisions for herself, the person named as the Agent continues to act on her behalf. The Power of Attorney eliminates the need for a Guardian being appointed should she become incapacitated. I would suggest that she have a Power of Attorney for financial purposes to handle things such as her bank accounts, as well as, a Medical Power of Attorney so that the Agent can make medical decisions for her, enter her into necessary facilities and review medical records if necessary. The Power of Attorney expires when you MIL dies or if she revokes it.
IF your MIL dies with the bank accounts in her sole name, and if she does not have a Will, she is said to have died Intestate (without a Will) Under Pennsylvania Law, when a person dies intestate and they are survived by a spouse and children who are also children of the spouse, the first $30,000 of her assets goes to the spouse and the rest is divided 1/2 to spouse and 1/2 to childresn.
Therefore it is also important for her to have a Will if she wants everything to go to her spouse. The Inheritance Tax Rate for assets passing at death to a spouse is 0%, while assets passing to children is 4.5%.
There is a lot of information that can probably be better discussed over the phone so please feel free to give me a call. I offer free consultations. After I speak with you, if you wish for me to draft some documents or do some work for you, I will quote you a fee up front.
I look forward to hearing from you.
Hillary N. Snyder, Esq.
412.731.0865
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
