By: Shriya Chowdavarapu, Summer Intern 2023, 2024

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1. Fearing the Expense. Many people fear the expense of an estate plan. However, when the cost is broken down, a well drafted estate plan can last for many years. An investment of $1,000 for a plan that should last 10-12 years or more, costs less than $100 per year to have the peace of mind that an estate plan brings. Looking at it from this angle, an estate plan can be very affordable.

2. Not Knowing Where or How to Start. It can be very scary to start the process of estate planning, especially if you do not know where to begin. However, that is what estate planning lawyers are here for! A good estate planning attorney will guide you through each step of the process. Find a lawyer that you trust, or that a friend or family member recommends, and give them a call. Most lawyers are happy to chat with you and you can determine if you think they’d be a good fit for you.

3. Being Uncomfortable Talking about Death. Talking about death can be very uncomfortable, or even scary. However, death is inevitable. You’d be surprised how many clients say they feel like a weight has been lifted when leaving our office. It is better to talk about the uncomfortable stuff and get your affairs in order before something irreversible occurs. A good estate plan is less about you, and much more about taking care of those you love, and providing them with some guidance at a time they will need it most.

4. Lack of Knowledge. Many people are unaware of what happens to their assets when they are no longer here. Having an estate plan gives security and reassurance that your property and treasured belongings will go to the right people or charities that you choose. It also ensures that the right people are in the positions to make sure your wishes are carried out. A good estate planning lawyer can help walk you through this process.

5. Delaying. It is not uncommon for us to get caught up with our everyday obligations. While those are incredibly important, so is making sure your family is taken care of in case something unexpected happens. This is especially important if you are a parent of a minor child. A proper estate plan will allow you to name a legal guardian for minor children. If you are a parent, this fact alone should drive you to make an estate plan to ensure your children’s future care.

6. Passing the Baton. Some people believe that once they pass away, their friends and family can deal with the legal hassle of coordinating everything. However, without an estate plan it is not only exponentially difficult for your loved ones to deal with your estate, but it can also be very expensive. Doing nothing saves you time and money now, but it almost always comes at a much greater cost to those you leave behind.
 
7. Believing it Does Not Apply to Them. You don’t have to be a millionaire to need an estate plan. Estate plans are for everyone as it helps keep everything in order. No matter if have one bank account, $10, or fifty investment properties. An estate plan is for EVERYTHING you own. There is also more to an estate plan than just writing up a will. Other key documents will allow someone to assist you with your finances if you become unwell, make medical treatment decisions on your behalf, or even step in to care for your children for a short term, should you be unable to care for them for any reason. Some additional benefits of a proper estate plan are minimizing taxes, protecting family assets from a child or grandchild’s divorce or illness, providing for beneficiaries with special needs who are receiving benefits, and gifting to charities.

8.Too Much Effort. It actually takes less effort to create an estate plan than you would think. A simple phone call to a lawyer is the first and main step. After that, most of the heavy lifting is in the hands of your lawyer whose main goal is to make estate planning as easy and smooth of a process for you as possible.

9. Facing Uncomfortable Situations. The great thing about an estate plan is that they are so easily customizable. Therefore, your belongings only need to go to the people that you want them to go to. Lawyers work with complicated family dynamics all the time. While it may be difficult for you to talk about, knowing the backstory can be vital to protect a family member from addiction, preserve benefits for a loved one with special needs, or protect family wealth from divorce. A lawyer will be there with you through every step of the process helping you with any family dynamic you might have.
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10. Fearing Permanence about Decisions. Many think that once they complete their estate plan, that they can’t change their mind. This is simply not true! An estate plan is completely customizable and you can change it at any point of your life, as long as you are competent to do so. In fact, many of our clients update their will every few years based on changing circumstances or a shift in family dynamics. You are always able to add, change, or remove anything from your estate plan, at any time.
 
 
About Shriya:
I am a senior at Owen J. Roberts High School. After high school, I plan on attending a four year university where I will study political science. Following that, I hope to attend a law school and obtain my law degree. The past two summers, I have had the incredible opportunity to intern at The Charleston Firm where I have gotten hands on experience and knowledge about being an attorney. My experience with this firm will be one I will cherish for it has fueled my interest in becoming a lawyer further.

In today's digital age, our lives are increasingly intertwined with online platforms, digital devices, and virtual assets. From social media accounts and email addresses to cryptocurrency holdings, airline miles and digital photo libraries, our digital footprint grows larger with each passing day. Yet, many individuals overlook the importance of including these digital assets in their estate planning.

As technology continues to advance rapidly, it's essential to understand the implications of digital assets on estate planning and the steps you can take to ensure a smooth transition of your online presence and digital property to your loved ones after you're gone.

Defining Digital Assets

Even if you’ve never invested a cent in cryptocurrency, you still have digital assets which need to be accounted for in any complete estate plan. Digital assets encompass a wide range of online accounts, files, and content that hold financial, sentimental, or personal value. Some common types of digital assets include:

Social Media Accounts: Facebook, Twitter, Instagram, LinkedIn, etc.
Email and Online Communication Accounts: Gmail, Yahoo Mail, etc.
Financial and Cryptocurrency Accounts: Bank accounts, investment accounts, cryptocurrency wallets, NFTs, etc.
Digital Media: Photos, videos, music, e-books, etc.
Domain Names and Websites: Personal blogs, online businesses, etc.
Online Subscription Services: Streaming services, cloud storage, etc.

The Importance of Including Digital Assets in Estate Planning

Failing to account for digital assets in your estate plan can lead to complications and frustrations for your loved ones. Without clear instructions, they may struggle to access or manage your online accounts, or worse, valuable digital assets could be lost forever. Privacy concerns are another motivating factor in ensuring that intangible digital assets are accounted for in your estate plan. Here are some reasons why addressing digital assets in your estate plan is crucial:

Preserving Memories and Legacies: Digital assets often hold sentimental value, such as family photos or personal writings. Including them in your estate plan ensures that these memories are preserved and passed down to future generations.

Protecting Financial Interests: Many digital assets have monetary value, such as cryptocurrency holdings, rewards points and cash back programs, or online businesses. Proper estate planning can help protect these assets and ensure they are distributed according to your wishes.

Managing Online Presence: Without instructions, your social media accounts and other online profiles may remain active indefinitely or be subject to unauthorized access. Estate planning allows you to specify how you want your digital presence managed after your passing.

Privacy: Now is the time to designate the person who should be able to access your digital content after your passing, and to direct that person to preserve or delete such content per your wishes. In certain cases, you may want to ensure your image is not altered or misused, making it important to address post-death use of digital images in your estate plan.

Steps for Including Digital Assets in Your Estate Plan

Take Inventory: Start by creating a comprehensive list of all your digital assets, including login credentials, account numbers, and any relevant instructions for accessing or managing them.

Designate a Digital Executor: Choose a trusted individual who will be responsible for managing your digital assets after your passing. This person should be familiar with technology and capable of carrying out your wishes. Certain companies even allow you set up passkey access for fiduciaries in the event of your passing. We recommend using those in addition to the other methods outlined here.

Update Your Will and Trust: Ensure that your will or trust explicitly addresses your digital assets and includes instructions for their distribution. Be specific about who should inherit each asset and how they should be accessed.

Consider Legal Implications: Terms of service agreements, the Electronic Communications Privacy Act and the Revised Uniform Fiduciary Access to Digital Assets Act may bar certain actions without a properly drafted estate plan vesting authority in a designated individual. It is important to consult with legal and financial advisors to ensure that your estate plan complies with relevant laws and regulations.

Review Regularly: As your digital assets and online presence evolve, periodically review and update your estate plan to reflect any changes or new acquisitions.

In the digital age, estate planning must extend beyond physical possessions to encompass our online lives and digital legacies. By taking proactive steps to include digital assets in your estate plan, you can ensure that your loved ones are equipped to handle your online affairs and preserve your digital legacy according to your wishes. Don't wait until it's too late—start planning for your digital afterlife today.

Divorce marks the end of one chapter and the beginning of another- a time of transition, reflection, and newfound independence. Amidst the emotional and logistical challenges of divorce, it's crucial for individuals to revisit their estate plans to ensure that their wishes are updated and their assets are protected in light of their changed circumstances. In this article, we'll explore the importance of estate planning after divorce, key considerations for updating estate plans, and strategies for safeguarding assets and securing the future.
 
Understanding the Importance of Estate Planning After Divorce
 
Divorce has significant implications for estate planning, as it fundamentally alters the distribution of assets, beneficiary designations, and decision‑making authority. Failing to update estate plans after divorce can lead to unintended consequences, such as ex‑spouses inheriting assets, outdated healthcare directives, or disputes over asset distribution.
 
Key Considerations for Updating Estate Plans After Divorce
 
Reviewing and Updating Beneficiary Designations: Divorce will inevitably impact certain beneficiary designations, such as those on retirement accounts, life insurance policies, and payable‑on‑death accounts. It's essential for individuals to review and update beneficiary designations to ensure that assets are distributed according to their current wishes and not inadvertently passed to an ex‑spouse.
 
Updating Wills and Trusts: Divorce may necessitate changes to wills, trusts, and other estate planning documents to reflect new beneficiaries, asset distributions, and fiduciary appointments. Individuals should review their estate planning documents with an experienced attorney to ensure that they accurately reflect their post‑divorce intentions and goals.
 
Providing for Minor Children: For individuals with minor children, divorce may impact financial and custody arrangements in the event of their incapacity or death. Estate planning allows parents to specify their wishes regarding care and upbringing in their absence, as well as provide a vehicle to financially benefit the children while bypassing the ex‑spouse.
 
Protecting Assets and Minimizing Taxes: Divorce often results in a division of assets and liabilities between spouses. Estate planning provides an opportunity to protect assets, minimize taxes, and ensure that individuals retain control over their financial affairs in accordance with their post‑divorce goals and priorities.
 
Strategies for Safeguarding Assets and Securing the Future
 
Establishing Trusts: Trusts offer a versatile tool for protecting assets, providing for loved ones, and preserving control over the distribution of assets. Individuals may consider establishing trusts to safeguard assets for children, minimize taxes, and ensure that assets are managed and distributed according to their wishes.

Updating Powers of Attorney and Living Will Directives: Divorce may impact decision‑making authority in the event of incapacity. Updating powers of attorney and living will directives allows individuals to designate trusted individuals to make financial and medical decisions on their behalf, ensuring that their wishes are respected and their affairs are managed appropriately.
 
Seeking Professional Guidance: Estate planning after divorce can be complex, requiring careful consideration of legal, financial, and emotional factors. Working with experienced estate planning attorneys and advisors who understand the nuances of post‑divorce planning can provide individuals with peace of mind and confidence in their estate plans.
 
Divorce is a time of transition and renewal - a chance to redefine one's priorities, protect assets, and plan for the future. By updating estate plans after divorce, individuals can ensure that their wishes are reflected, their assets are protected, and their loved ones are provided for in accordance with their current circumstances and goals.
 
If you're navigating estate planning after divorce or have questions about updating your estate plan, our team of experienced attorneys is here to help. Contact us today to schedule a consultation and take the first step toward securing your future and protecting your loved ones.

​Faye C. Cautin, Esq.
The Charleston Firm, LLC
​ April 2024
 
 

As an attorney specializing in business law, I've had the privilege of working closely with small business owners, guiding them through the intricacies of succession planning. In today's rapidly evolving business landscape, preparing for the future is not just a prudent decision—it's a strategic imperative. In this article, I'll share insights and strategies to help small business owners navigate the process of business succession planning with confidence.

Understanding the Importance of Business Succession Planning:

Business succession planning involves creating a roadmap for the future transfer of ownership and management of a business. For small business owners, this process is particularly critical, as it ensures the continuity of operations, protects the interests of stakeholders, and preserves the legacy they've worked so hard to build.

Key Considerations for Small Business Owners:

Start Early: Succession planning is not a task to be undertaken hastily. Small business owners should begin the process well in advance, allowing ample time to identify and groom potential successors, address any legal or financial complexities, and develop a comprehensive succession plan.

Identify Objectives: Before embarking on the succession planning journey, it's essential to clearly define your objectives and priorities. Whether you're focused on preserving family legacy, maximizing value for stakeholders, or ensuring a smooth transition of leadership (or all of the above), articulating your goals will guide the planning process.

Engage Stakeholders: Succession planning is a collaborative effort that involves various stakeholders, including family members, key employees, shareholders, and advisors. By fostering open communication and involving relevant parties in the decision-making process, small business owners can ensure alignment and mitigate potential conflicts.

Evaluate Options: There are various succession strategies available to small business owners, ranging from internal transitions to third-party sales or mergers. Each option carries its own set of advantages and challenges, and it's crucial to carefully evaluate and select the approach that best aligns with your goals and circumstances.

Seek Professional Guidance: Given the legal, financial, and emotional complexities involved, seeking guidance from experienced legal and financial advisors is paramount. An attorney specializing in business succession planning can provide invaluable expertise, helping small business owners navigate the process, address legal requirements, and safeguard their interests.

Business succession planning is not just about preparing for the inevitable—it's about laying the foundation for a thriving future for the business and the individual owners. By taking proactive steps to plan for succession, small business owners can ensure continuity, protect their legacy, and position their businesses for long-term success. As an attorney dedicated to serving the needs of small businesses, I'm committed to assisting entrepreneurs in navigating the complexities of succession planning and empowering them to achieve their vision for the future.

If you're a small business owner seeking guidance on succession planning or have any questions about the process, I invite you to reach out. Together, we can chart a course for the future and ensure the continued success of your business.

Faye C. Cautin, Esq.
The Charleston Firm, LLC
​ April 2024

 PA Inheritance Tax: The Basics
What do you do when a loved one dies in Pennsylvania? 

Most people are faced with this difficult issue at least once during their lifetime, but yet, very 
few people really know what to do.  Understandably, the topic is not exactly fodder for cocktail party discussion, like refinancing your home, or where to sign-up your son for the local little league. Because it isn’t widely discussed, most people are often surprised when they realize what is involved in the estate administration process.

So where do you turn, what are the steps, how long does it take, what is involved?  The short 
answer is that it varies greatly depending on the circumstances of each individual estate.  This article is meant to offer a general, brief overview of the Pennsylvania inheritance tax and is not to be considered legal advice in any way.  You should always seek the advice of a trusted attorney when administering or planning your own estate, as they will provide you with advice tailored to your unique situation.

Who must pay Pennsylvania Inheritance Tax?
Anyone who dies while a resident of Pennsylvania and owns anything of value, or anyone 
who dies owning real property in Pennsylvania.  

                • Deceased PA Resident
                • Deceased PA Real Property owner

What is Pennsylvania Inheritance Tax?
The Commonwealth of Pennsylvania exacts a tax on all items of value owned at the time of 
death.  These items are often collectively referred to as the decedent's "Estate."  Estate assets can include cash, stocks, bonds, real estate, business interests, cars, jewelry, antiques, etc. (Note: the list of taxable assets is exhaustive and there are several exceptions.)

How much is Pennsylvania Inheritance Tax?
The good news (and there really hasn’t been much): if a spouse is inheriting the decedent’s 
assets, there is currently no PA inheritance tax due.  As for everyone else inheriting, PA Inheritance tax is currently calculated at three separate rates: 4.5% for lineal descendants (grandparents, parents, children and grandchildren) 12% for siblings and 15% for everyone else from nieces and nephews to complete strangers. 

              • 0% for spouses
              • 4.5% for children and parents
              • 12% for siblings
              • 15% for everyone else

PA Inheritance Tax is NOT Estate Tax!
It is important to note that PA Inheritance tax should not be confused with federal estate tax, 
which is commonly referred to as simply “estate tax.”  Estate tax is a federal tax that is payable to the IRS depending upon the current government regulations and the value of a decedent’s estate. Unlike PA Inheritance tax, not everyone owes estate tax.

                                       PA Inheritance Tax  ≠  Federal Estate Tax

When is PA Inheritance Tax Due?
The PA inheritance tax return must be filed and taxes paid in full within nine (9) months of 
the decedent’s death.  (Extensions may be granted in certain circumstances.)  In the event that the tax is late, the Commonwealth will charge penalties and interest.