Estate Planning Tips for New Lehigh Valley Residents: Securing Your Future in a New Home

Relocating to a new area is an exciting, yet challenging experience, especially when it involves a move to a picturesque region like Pennsylvania’s Lehigh Valley. Nestled between the bustling cities of Philadelphia and New York, the Lehigh Valley offers a blend of vibrant communities, historical charm, and modern amenities. However, amid the excitement of settling into a new home, one crucial aspect that often gets overlooked is estate planning.

Whether you are moving to Bethlehem, Allentown, Easton, or one of the charming smaller towns in the region, understanding how your move impacts your estate plan is vital. Here is a comprehensive guide to ensure your estate is well-protected as you establish your new roots in the Lehigh Valley.

Review and Update Your Will

When you relocate, it is essential to review your will to ensure it complies with Pennsylvania state laws.  Each state has different legal requirements, so a will that was valid in your previous state of residence may need revisions. Pennsylvania has specific rules regarding the signing, witnessing, and execution of wills, and an outdated will might not carry the same weight here. An example of a necessary update could include bequesting your home. If your existing will contains your old address, it may be that you do not give away your home as intended.

Consider State Inheritance and Estate Taxes

Pennsylvania is one of the few states that imposes an inheritance tax. The rate varies based on the relationship of the beneficiary to the deceased. For instance, transfers to children or grandchildren are taxed at 4.5%, while transfers to siblings are taxed at 12%. Understanding these tax implications is crucial for effective estate planning, as it may affect how you structure your assets and beneficiary designations.

Update Beneficiary Designations

As you review your estate plan, do not forget to update the beneficiary designations on your retirement accounts, life insurance policies, and other financial assets. This step ensures that your assets are distributed according to your wishes, especially if your family circumstances have changed due to the move.

Establish or Update a Trust

A trust can be a valuable tool in estate planning, especially if you have significant assets or specific wishes regarding how your estate should be managed. If you already have a trust, you may need to update it to reflect Pennsylvania laws. For new residents, establishing a trust in the state can help avoid probate, minimize taxes, and provide for loved ones in a controlled manner.

Review Your Power of Attorney and Healthcare Directives

Moving to a new state is an excellent time to review your power of attorney (POA) and healthcare directives. These documents grant trusted individuals the authority to make financial or medical

decisions on your behalf if you become incapacitated. Pennsylvania has its own forms and requirements, so ensure that your documents are valid and enforceable under state law.

Real Estate Considerations

If you have purchased a home in the Lehigh Valley, it is important to consider how this new property fits into your estate plan. Whether you own multiple properties, or this is your primary residence, ensuring that your real estate is properly titled and included in your estate planning documents is crucial.

Seek Local Legal Guidance

Navigating the complexities of estate planning in a new state can be daunting. It is wise to seek the advice of a local estate planning attorney who understands Pennsylvania’s laws and can guide you through the process. They can help you ensure that your estate plan is comprehensive, legally sound, and aligned with your new circumstances.

Conclusion

Relocating to the Lehigh Valley offers many opportunities for a fresh start, but it also requires careful consideration of your estate planning needs. By taking the time to update your estate plan, you can protect your assets, provide for your loved ones, and enjoy peace of mind in your new home. Whether you’re a lifelong Pennsylvanian or new to the Keystone State, ensuring that your estate plan reflects your current situation is a critical step toward a secure future.

About the Author

Bill Hutcheson works with clients to ensure that their wishes are carried out after their passing. His experience includes drafting wills, powers of attorney, and living wills. Bill is keen on preparing a comprehensive estate plan that is custom-tailored for each client’s own unique situation, which he achieves through various non-probate planning tools. He often draws upon his experience and knowledge as an investment professional prior to his legal career to understand the non-probate instruments his clients readily have at their disposal in preparing a comprehensive estate plan. In addition to Bill’s guidance in estate planning, he also has significant experience in administering estates upon the decedent’s passing. Bill steers Executors and Administrators through the labyrinth of state and local statutes related to the administration process. Regularly, Bill ensures the estate’s assets are properly distributed, debts are paid, and taxes are filed. Bill and his team focus heavily on the timeliness of proper filings required by an estate’s Executors, Administrators, and Trustees, as well as ensuring they meet all of their fiduciary duties and standards. Lastly, when disputes arise amongst an estate’s stakeholders, Bill defends and/or pursues the rights of his respective clients’ positions related to the estate in question.