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In most jurisdictions, there are local rules that assist in the administration of litigation, which may differ from one county to another, In Allegheny County, which is the County for Pittsburgh Pennsylvania and the surrounding area, Local Rule 200 allows Corporations, partnerships, LLCs, and unincorporated associations to be represented by “an officer or by a partner” in the following actions: A civil action brought in or appealed to this Court in which the relief sought is monetary damages which do not exceed the jurisdictional limit for an action before an MDJ. An appeal from a judgment entered in an MDJ Court in an action for the recovery of the possession of real property. (See Local Rule 200, Anna has the Local Rules in her office.) If an appeal, is brought before an Arbitration panel, the case may be heard, subject to certain limitations relating to entities, such as corporations or Limited liability companies. Despite the 2017 case of Nicholson Builder, LLC v. Jablonski , 163 A. 3d 1048 (Pa. Super. Ct. 2017), indicating that LLCs were required to be represented by attorneys in all circumstances, Local Rule 200 because of the 2021 Supreme Court case rendering the Nicholson holding ineffective. See Bisher v. Lehigh Valley Health Network, Inc. et. al , 265 A.3d 383 (Pa. 2021). See also, the Honorable Patrick Connelly’s opinion in AHRCO-III Rivers Manor v. Chante Holmes , LT 21-170 (June 28, 2022,) where Judge Connelly wrote: Our High Court held that the unauthorized practice of law (on behalf of an estate) did not raise questions of the trial court’s jurisdiction, but that the trial court, in its discretion, could allow the parties to cure deficient pleadings. Bisher v. Lehigh Valley Health Network, Inc. et. al , 265 A.3d 383, 405-407 (Pa. 2021). The ruling thus departed from a prior understanding that filings on behalf of a corporate entity represented “pro se” by an officer or employee were void ab initio and did deprive the trial court of jurisdiction. See e.g. Nicholson 163 A. 3d 1048, 1057. AHRCO-III Rivers Manor, v. Holmes , pp. 4, 5. Local R. 200 nevertheless requires the corporation/partnership/LLC to be represented by an Officer or Partner. Accordingly, if a nonofficer, nonowner, non-partner property manager or maintenance person appears at an arbitration on behalf of the entity is NOT an attorney, that person could not present evidence, but the arbitration can go forward. Can the panel hear the case? Yes. However, the Landlord may be precluded from presenting evidence, but the case can proceed. The tenant may present evidence.

It is important to remember that all marriages end at some point, either by divorce or the death of a spouse. So, planning a marriage and the ownership of assets moving forward can determine rights and duties for conducting the marriage and the estate after death. These laws can differ widely from state to state, and the state where a marriage begins may not be the state in which that marriage ends. A prenuptial agreement is a couple’s opportunity to decide what will happen should a marriage end, either by divorce or death, and relying on the consent of the persons as opposed to relying on state law. Prenuptual Agreements A prenuptial agreement is a contract between two soon-to-be-married individuals in which they agree upon the rules; especially with respect to their property. The agreement can set rules that apply during the marriage and following the termination of the marriage. with respect to the disposition of property. Creating a successful prenuptial agreement can only be achieved when all parties understand the process and engage in good faith; trusting in open-mindedness with a commitment to resolving issues without hurt feelings and resentment. Prenuptial agreements traditionally have been seen as symbols of mistrust and control. The historical negativity has rested in the provincial idea that people only married once and did not generally have children from various marriages. Yet the times have changed, and people may have more than one marriage, children from various marriages and are now marrying later in life, when assets have been accumulated prior to the marriage that is subject to such an agreement. Despite how uncomfortable conversations, prenuptial can serve several important purposes, including: Keeping family wealth, however defined, within the family that generated it. The protecting assets for many generations. Establishing formalized rules, governing the disposition of wealth upon the dissolution of a marriage (either by divorce or the death of a spouse). Providing a forum to discuss finances in an open and productive way. Creating a philosophy and plan regarding wealth. Laying framework of estate planning and understanding integration of families that previously did not have the same interests or point of view. Who should consider a prenuptial agreement? Any couple can create a prenuptial agreement. However, such prenuptial agreements should be considered particularly when: One person (or one person’s family) has significantly more assets or debts than the other. One person or one person’s family owns a family business. One person or one person’s family has special assets (such as artwork, antiques or jewelry, among others) that they desire to remain with that family. One or both persons have children from a prior marriage and desire to leave property to those children or grandchildren, only. When one or both people are professionals with special education, credentials or licenses who desire their enhanced earnings and potential earnings to remain with them. Prenuptual Agreements: Main Issues Support Issues While married, spouses must financially support one another and their children by providing the necessities of life. Spouses can agree as to how they will manage their finances and which spouse will pay which household expenses. Should the spouses divorce, a prenuptial agreement may require one spouse to provide financial support to the other. Spousal support, sometimes called maintenance or alimony, is a payment from one divorcing spouse to the other, usually for a term of years following the dissolution of a marriage by divorce. The amount of support, term of support, and any increases in support during such term are all separate nuances to consider. Parents must also consider providing for their minor children. Agreements with respect to child support, especially upon termination of a marriage, are generally not permitted in a prenuptial agreement. It is possible, however, for spouses to agree upon financial arrangements that can be used for children, such as maintaining a certain amount of life insurance coverage, allocating certain private education costs, and requiring the creation of trusts. Property Absent a prenuptial agreement, state law defines how assets are divided upon divorce. There are two general systems for dividing property upon divorce: common law systems and community property systems. The nuances of each state’s law can mean that even states using the same general system (community property or common law) may classify property differently. It is critical before entering into any agreement to consult an experienced attorney licensed to practice law in the state in which the agreement will be governed. The division of assets when a marriage ends (either by divorce or at death) is another important part of a prenuptial agreement. Generally, in community property states, assets acquired after marriage are owned by each spouse equally (no matter who has title). It operates with the notions of a partnership. Assets acquired before the marriage may be characterized as separate property or some type of mixed property. In common law states, marital assets are generally divided equitably (equitable distribution). In essence, the court dissolving the marriage decides what constitutes a fair division of the property. Assets considered marital property are typically subject to division, while assets considered separate property are generally not subject to division. A prenuptial agreement can change the rules of state law with respect to the division of property. The agreement can, for example, define which assets (or classes of assets) are separate property not subject to division; limit what property may be allocated to a spouse; include a sliding scale, with more property being allocated to a spouse in a longer marriage; or provide some other division unique to the couple and their assets. When a marriage ends because of death of a spouse, then other property rights are considered. Almost every state forbids a decedent from completely disinheriting a spouse. How the amount payable to a surviving spouse is calculated and what property is included in the calculation can vary significantly by state. Also, the concepts of marital and separate property may not apply when a spouse dies, as many states calculate the surviving spouse’s required share based on the value of all property owned at death. Note that leaving a trust for a surviving spouse may not satisfy the minimum required amount, possibly allowing the surviving spouse to make an election between accepting the trust or taking the minimum statutory amount outright. Also, a surviving spouse’s rights can be waived in a prenuptial agreement. If one spouse has assets such as an interest in a business, an inherited home, family heirlooms, wealth acquired before marriage, etc. and desires to bequeath those assets to someone other than the other spouse, or if a spouse’s will leaves assets in trust for the surviving spouse, it is essential that a prenuptial agreement waiving spousal rights at death be executed. Other Considerations When a marriage ends there can be conflict, whether in a divorce or the deceased spouse’s children and the surviving spouse. Evidence can bring the prenuptial agreement into court with one side seeking to enforce it and the other side seeking to have it invalidated. There are some general steps that you can take to make your agreement more likely to be enforced, such as: Failure to fully disclose assets when preparing a prenuptial agreement may jeopardize the agreement’s validity. Waivers of rights are generally not valid if they are not made with full knowledge of what is being waived. Failure to fully disclose assets and expectancies, including their value, can invalidate the agreement. Each person entering into a prenuptial agreement should be represented by a separate attorney. Failure to be adequately represented is often a factor cited when someone seeks to invalidate a prenuptial agreement. Further, the rules of attorney ethics would prevent the same attorney from representing both parties. A court is more likely to uphold a prenuptial agreement when the parties have had “adequate” time to review the terms of the agreement with an attorney. What constitutes “adequate” is determined by the court reviewing the prenuptial agreement and the facts and circumstances of its execution. The closer to the wedding an agreement is executed, the more likely a challenge will succeed. Legal Representation Each party will need assistance when discussing and preparing an effective prenuptial agreement. Of course, attorneys skilled in domestic relations law will be necessary. Also, the parties and their families may require the assistance of accountants and valuation experts to prepare adequate financial disclosures. Finally, the parties may desire to review their financial status with a financial advisor to determine if the financial arrangement each makes for the other will be adequate, presently and in the future.

Life Expectancy Changes Over the last few decades, life expectancy has increased dramatically around the globe. The average person born in 1960, the earliest year the United Nations began keeping global data, could expect to live to 52.5 years of age . In 2018, the average was 72. In 2024, it is nearly 80 years old. In the UK, where records have been kept longer, this trend is even greater. In 1841, a baby girl was expected to live to just 42 years of age , a boy to 40. In 2016, a baby girl could expect to reach 83 ; a boy, 79. This dramatic change has caused a further need to appreciate where families are different. Think of the fact that a child may be old enough for Social Security, while the parents are still alive, and they too are receiving Social Security. The younger recipient may have children and grandchildren that they need to plan for, in addition to their elderly parent. This demographic is experiencing a rise due to later childbirth and an aging population, compounded by the recent pandemic’s impact on long-term care facilities. Sandwich Generation Understanding the demographics and trends is required for an increasing number of the sandwich generation. The sandwich generation, a term for individuals responsible for the care of their children and aging parents which causes them to face unique challenges. Estate planning is now more than ever, a multi-level management process, which includes a constant review of documents including the basic documents of as the Will and Testament, the Durable Power of Attorney, and the Medical Directives; sometimes referred to as the Living Will. Further analysis includes the interdependence of these documents as it relates to the executors and agents, who when drafted were appropriate may no longer be the right ones at some later date. Significant societal trends influence the increasing numbers of the sandwich generation. Understanding these trends is essential for tailored estate planning strategies. Estate planning is crucial for the sandwich generation. It provides a structured approach to managing the complexities of caring for children and elderly parents. This planning can offer peace of mind and a clear path forward in challenging circumstances. Legal Documents and Decision-Making Powers Estate planning for the sandwich generation should include preparing legal documents that empower decision-making for aging parents and minor children. Powers of attorney and healthcare directives are examples of such documents. If the documents already exist, then the documents should be periodically reviewed; particularly when members of the Sandwich Generation paradigm unexpectantly pass away or become otherwise incapable of performing their duties. The dynamic nature of the sandwich generation’s responsibilities necessitates regular reviews and updates of their estate plans. This ensures that the plans stay relevant and effective in meeting the family’s changing needs. Effective estate planning for the sandwich generation is critical in managing special factors that are not traditionally part of Estate Planning considerations. Key Strategies Prioritizing and Reprioritizing Estate planning for the sandwich generation starts with effectively managing daily tasks. Identifying urgent versus non-urgent tasks can help balance the care of children and elderly parents. Self-Care as a Crucial Aspect of Estate Planning Self-care is vital to avoid caregiver burnout. Individuals in the sandwich generation need to maintain their well-being to provide the best care for their loved ones. Understanding Legal Rights and Workplace Benefits Knowing workplace rights, such as those provided by the Family Medical Leave Act (FMLA) , is an integral part of estate planning for the sandwich generation. This knowledge can help caregivers maintain job security, while caring for their families. Communication and Support Networks Open communication within the family. Maximizing access to support networks and forums for managing the expectations and responsibilities for the sandwich generation. Financial Planning and Management A crucial aspect of estate planning for the sandwich generation is evaluating financial resources. Gaming a comprehensive understanding of the financial capabilities of aging parents and exploring public assistance or family contributions when needed. Discussions with Aging Parents and Family Members Conversations about care preferences and financial abilities with aging parents and family members are essential. Preparing for the Future including the long-term considerations, like home renovations for elderly care, professional services and retirement savings, are essential in estate planning for the sandwich generation. Insurance policies and emergency funds are critical to protecting the family’s future.

What Is a Gift Tax? A gift tax is a federal tax imposed by the Internal Revenue Service (IRS) on individual taxpayers who transfer property to someone else without receiving anything of substantial value in return. Gifts can take various forms, including cash, real estate, and other forms of property. However, the IRS limits how much you can transfer to someone as a gift. In order to prevent people from avoiding paying income taxes, the federal government created the federal gift tax. This tax prevents undue hardship and obliges donors and recipients to honor IRS tax liability. Any amount over this threshold must be reported and applied toward a lifetime gift tax exemption. Once you exceed this limit, the gift tax becomes payable. The gift tax can be imposed even if you never intended the transfer to be a gift. How a Gift Tax Works Since a gift may be anything of value that is transferred from one individual to another. Accordingly, the transfer may occur "either directly or indirectly, where full consideration, valued in money or worth) is not received in return." Special Considerations Gift tax is a federal tax levied on a taxpayer who gives money or property to someone else. A gift is understood as anything of substantial value, such as cash and real estate, for which the donor doesn't get anything substantial in return. The IRS sets limits on how much taxpayers can gift to others annually and over their lifetime without incurring the gift tax. All gifts must be reported regardless of whether they trigger the gift tax. Gift Splitting and Gifts Given in Trust Gift splitting and gifts given in trust are two strategies to avoid incurring the gift tax. Property is considered a gift if it has value and is transferred to another individual without any significant form of compensation. The IRS sets limits to how much people can gift annually and during their lifetime. I person can give up to $17,000 to most individuals in 2023 and $18,000 in 2024 without being taxed. There is no limit on the number of individuals you can gift in this manner in a given year. So if you have 10 children, you can gift as much as $18,000 per child in 2024 for a total of $180,000, without needing to pay a gift tax for the year (unless you surpass the lifetime limit). The lifetime limit is $13.61 million for 2024. If you are a married couple, filing jointly, you can transfer up to $34,000 per individual in 2023, or $36,000 in 2024.5 You are taxed if you go over your annual exclusion limit and that amount counts toward your lifetime limit. As a donor, you are responsible for reporting any gifts you make by filling out Form 709: United States Gift (and Generation-Skipping Transfer) Tax Return even if the gift falls under the annual limit. This form must be attached to your annual tax return by the tax filing deadline of the year after the gift was made, which is typically April 15 Gift tax rates are based on the size of the taxable gift and can range between 18% and 40%.7 In cases where the value is not immediately evident, such as art or stocks, you must use the fair market value (FMV) of the asset to assess your tax liability. Special Exclusion: Non-Gift An individual can gift an unlimited amount tax-free if your spouse is a U.S. citizen. If the spouse is not a U.S. citizen, then tax-free gifts are limited to an annually adjusted value— $175,000 in 2023 and $185,000 in 2024. Some things are not gifts at all. These are: Educational expenses for someone else Medical expenses for someone else Gifts and donations to political organizations There are strategies for avoiding or minimizing the gift tax. The key ways to avoid this tax below. Gift Splitting One of the great benefits of being married is that it allows a doubling of gifts. Remember, the annual exclusion applies to the amount of gift that an individual can give someone else. This means that even if they file a joint tax return, spouses can each give $17,000 in 2023 and $18,000 in 2024 to the same recipient. This effectively doubles the allowable tax-free gift to an individual from a married couple. This strategy is known as gift splitting and enables wealthy couples to give substantial annual gifts to children, grandchildren, and others. This gift can be in addition to, say, tuition paid directly to a grandchild’s school or college, which is exempted outright from the gift tax. Trusts The gift tax exclusion usually doesn’t apply to money distributed by gift in trust conveyances. But donors can give gifts in excess of the annual exclusion without paying taxes by establishing a special type of trust to receive and distribute the funds. There is a special version of a trust, referred to Crummey trust is the usual arrangement. This allows the beneficiary to withdraw the assets within a limited time period such as 90 days or six months. This gives the beneficiary what the IRS calls a present interest in the trust and this sort of distribution can qualify as a nontaxable gift. Of course, the recipient can only take out a sum equal to the gift given to the trust. An individual can gift more than the annual exclusion without reducing your lifetime gift tax exemption under certain 529 college savings plans. In these cases, you report this single large gift as being spread over five years on your tax return and file the form each year.

PLAN YOUR LIVING WILL IN PA? In Pennsylvania, as in all states, you need a legally accepted reason (or "ground") to get a divorce. The grounds for divorce in Pennsylvania include both fault and no-fault reasons . Among the fault-based grounds, you may get a divorce if the judge finds that your spouse has committed adultery. (23 Pa. Cons. Stat. § 3301(a)(2) (2022).) Nearly two-thirds of marital unions result in divorce. If adultery has taken place in your marriage, there are several important things to know about how it’s going to impact your divorce. In Pennsylvania law, courts recognize adultery as a fault ground for divorce . When the cheating spouse is at fault because of his or her adulterous behavior, the penalty can be significant. When a divorce involves adultery, it can affect spousal support and alimony. The spouse who has committed adultery usually isn’t eligible for alimony in Pennsylvania. Many people think of alimony as given to the woman, but it is actually given to the earner with the lower income. In Pennsylvania, alimony isn’t automatically given to the person of lower income. The court considers a wide range of factors before deciding whether or not a person must pay alimony to their former spouse. The court examines these factors of both spouses, not just one side. These factors are: Misconduct during the marriage, Length of the marriage, Financial need, Assets and liabilities, Education, All sources of income, Earning potential, Potential inheritance, Health, Age. Alimony in Pennsylvania doesn’t last forever. When the person receiving alimony improves his or her financial situation, the court may end payments. Sometimes, the court may rule that alimony must be paid for a certain period of time. Pennsylvania courts have the right to modify or end alimony based on the changing financial circumstances of both parties. However, if one party has committed adultery and the other spouse has not, then more than the adulterous party may likely to have to pay alimony because adultery falls under misconduct. Adultery Affects Child Custody and Visitation If a spouse’s infidelity has negatively impacted the children, then this can affect child custody and visitation rights. Without proof that a spouse’s adultery has negatively impacted the children, the adultery usually doesn’t influence a court’s decision on child custody and visitation. Adultery Is Sometimes Not Considered Cause for Divorce Pennsylvania law likely won’t recognize it as the cause behind your divorce if by words or by subsequent conduct the court can find that then adultery is forgiven or waived. Also, there might be a situation in which the state won’t acknowledge adultery when the cause for divorce is when both spouses cheated. However, alimony can still be given to the spouse with a lower income if both of you committed adultery. Further, a spouse having an affair with another isn’t adultery if consented to by the other spouse it or you received a benefit from it. An example of receiving a benefit from your spouse’s affair with another is knowingly spending money that was obtained from prostitution. You Can’t Sue Someone for Adultery in Pennsylvania People who commit adultery in Pennsylvania can no longer be prosecuted for it. However, a spouse can still be considered at fault for a divorce because of their infidelity. The court may give the adulterer a smaller portion of the property as a result of their infidelity. However, when filing for divorce in Pennsylvania based on a spouse's adultery, the accuser needs to prove the adultery by "clear and convincing" evidence. (Crawford v. Crawford, 633 A.2d 155 (Pa. Super. Ct. 1993).) Circumstantial evidence (such as hotel receipts, phone records, emails, texts, and photos) may be enough to prove adultery. In other words, evidence does not need evidence of the actual sexual encounters, like video recordings. If your spouse has accused adultery in the divorce papers, there are a number of arguments you can make to try to convince the court that adultery isn't a legitimate ground for divorce even if acknowledged that the accused had sex outside of your marriage. To do this, you'd have to prove one of the following: The accuser spouse also committed adultery, The accuser spouse also engaged in sexual relations after your spouse learned of the adultery, The spouse exposed the other to "lewd company" that led to adultery, or if you engaged in prostitution, the other spouse either approved of it or accepted money resulting from it. (23 Pa. Cons. Stat. § 3307(b) (2022).) Special Considerations Under Pennsylvania law, judges may not consider consider adultery (as a form of marital misconduct) that happens after the spouses have permanently separated. (23 Pa. Cons. Stat. § 3701(b) (2022).) Although post-separation adultery, by itself, won't affect alimony decisions, Pennsylvania law prohibits an alimony award to a spouse who cohabits with "a person of the opposite sex." Despite the statute's wording, which refers to entering into cohabitation "subsequent to the divorce", Pennsylvania courts have found that this prohibition also applies when a spouse who's seeking alimony lives with a new partner before the divorce is final, as long as their relationship is marked by "financial, social, and sexual interdependence." (23 Pa. Cons. Stat. § 3706 (2022); Moran v. Moran, 839 A.2d 1091 (2003).) Pennsylvania is an equitable distribution state. This means judges will divide the couple's property in a way they believe is fair under the particular facts of each case. It's important to note that "equitable" doesn't necessarily mean an equal or “50-50” split. Pennsylvania law states that judges may not take marital misconduct into account when dividing the couple's marital property . Therefore, adultery won't play a role in a judge's decision about what would be fair when distributing the property. (23 Pa. Cons. Stat. § 3502(a) (2022).)

IRS funding for the enforcement and collection of delinquent taxes was a significant part of the Inflation Reduction Act enacted in 2022. Included in the legislation was an appropriation of more than $45 billion that will be used to improve and expand IRS enforcement efforts, that is targeted specifically toward large corporations, large partnerships, and wealthy individuals. IRS audit rates are not expected to increase for those earning less than $400,000 a year. Notwithstanding consideration of the income level, essential valuations should allow taxpayers to strategically plan for the future since gift and estate planning strategies help individuals maximize their long-term financial success. Part of this initiative, an increase in the enforcement of gift and estate tax returns. Gift and estate taxpayers can expect an increase in the IRS scrutiny with the additional funding allocated to enforcement efforts since during the past 10 years under 1% of total gift tax returns and approximately 10% of estate tax returns have been audited. This renewed focus will likely heighten valuation exposure since in many circumstances, valuations are required for gift and estate purposes, and a qualified valuator can leverage gifts through the application of various discounts. For example, the value of a gift is determined at fair market value as of the date of the gift. For estate purposes, a fair market value is determined as of the date of the decedent’s death, or in some scenarios, an alternate date six months after the date of death. In some situations, such as with the business owned by the decedent, valuations are critically important and may require the engaging a qualified appraiser sine a failure to complete a proper valuation may lead to potential tax issues and exposure to IRS penalties. As the IRS increases enforcement surrounding gift and estate filings, taxpayers should work closely with valuation professionals to ensure proper navigation of these complexities. For gift purposes, the annual exclusion and lifetime exemption are two planning strategies taxpayers should familiarize themselves with. In addition, individuals can avoid filing a gift tax return if the gift is less than the annual exclusion amount set by the IRS. For larger estates considerations, taxpayers are not required to pay gift taxes if their total lifetime gifts does not exceed the lifetime exemption limit.

The Court of Common Pleas of Allegheny County , which includes Pittsburgh Pennsylvania and the surrounding area, now requires mandatory mediation for most civil cases. This additional level of legal procedure is an attempt to settle civil cases; that are particularly complex and expensive to litigate. This mandatory requirement is a leading move toward alternative dispute resolution, which had been adopted and successful in federal courts that include the area of Allegheny County. With this new rule, parties must now factor mediation into litigation strategy. This mandatory procedure may be adopted by other counties over the next few years once they weigh in the success level in Allegheny County. It is always available by agreement of the plaintiffs and defendants in other counties, right now. Under Local Rule 212.7 , parties must participate in a formal mediation process at least 45 days prior to the commencement of the assigned trial term. Parties may be excused from mediation only upon motion for “good cause” presented to the Judge in charge of calendar control or by agreement of all parties. Within 7 days of completing or waiving mediation, the plaintiff must file a certification with the Court that the claims were or are expected to be settled, or that the parties waived mediation. Further, upon motion, the same Judge may impose sanctions on parties or counsel for “failure to comply with this rule in good faith.” Areas that are exempt from this mandatory mediation requirement are arbitration appeals, asbestos cases, or landlord-tenant cases. Naturally, timing is a key factor in making mediation more productive. It may be an incredibly useful tool since the economics of litigation and matters of judicial economy are factors to be considered. One should consider placing the mediation deadline after the close of discovery and filing of pre-trial statements, the new rule is designed to give litigants flexibility to choose the best time to mediate. However, some cases may benefit further by having earlier mediation to avoid significant discovery costs. On the other hand, cases that are more complex, such as those needing the exchange of expert reports, may require time and procedural adjustments before the parties would be ready to mediate.

When a person inherits from an estate, they receive a one-time windfall. While it can be beneficial, it comes with certain concerns relating to what you do, once you have received the inheritance. Consider the following: Failing to Invest the Cash for the Long-Term When you inherit, there is a good chance that you will inherit cash. There is a tendency to take that cash and keep it in the form of cash. However, the objective in most instances should be to get that cash invested to avoid the depreciating value of the relative inflation. When you invest funds in an alternative way, there may be a better opportunity, when leaving it in cash creates an opportunity cost. Lastly, the investment of the funds makes it less likely that you will spend the funds capriciously. Refrain from Purchasing an Asset You Can't Afford or Maintain One of the biggest mistakes heirs make with large sums of cash is buying an asset they can't maintain for the long term, such as an expensive home or a luxury item that one would not purchase normally. Remember, this is a windfall. The purchase is one thing. However, there are further costs of maintenance and the payments when you take the inheritance and use it as a down payment and then take on additional costs of financing. Holding On to an Inherited Property You Can't Afford Since not all inheritance comes in cash there may be a reason beyond an economic goal that makes one not want to otherwise liquidate it, even though liquidating it may be the right thing to do. An inheritance can be tricky, Often, heirs have an emotional attachment to an asset they can't afford to maintain. Consider the inheritance of the family home, which rests in the history of the heir, yet the home may require updating and maintenance that is risky when holding on to the asset in the future. Failing to Diversify - Putting All Your Money in One Place In general, putting all your money in one place, like a single stock or piece of real property, may be a bad idea. Make sure it is diversified even if you are considering real estate. Speak to Your Lawyer or Find a Financial Advisor If you've inherited money or an asset of some kind, speaking with a lawyer or a financial advisor may help you optimize your inheritance, so you don't risk losing it all or ending up in a worse financial situation than you were before the inheritance. Gaining advice on matters that you do not really understand is necessary, since the goal should be to help build a diversified portfolio that may include real estate or other big purchases, requiring money is sufficient to hold onto these assets for years to come.

PLAN YOUR LIVING WILL IN PA? Creating a living will is an important step in ensuring that your healthcare preferences are respected in the event that you become unable to make decisions for yourself. By clearly stating your wishes in a legally binding document, you can help ease the burden on your loved ones during a difficult time. Don’t face the complex process of estate administration alone. From our office in Pittsburgh, Pennsylvania, our probate and estate administration attorneys proudly serve the surrounding areas of Greensburg, Washington, Waynesburg, Uniontown, and New Castle. For detailed guidance, reach out today, and schedule a meeting. Living wills, also known as advanced directives , are legal documents that allow for specifying healthcare preferences in the event that an individual become unable to make decisions for end-of-life situations. Living wills in PA are governed by the state’s Advance Directive for Health Care Act. This act defines the requirements for creating a valid living will and outlines the legal protections afforded to individuals who create them. Contact a living will lawyer at our law firm today for assistance in creating a valid living will. CREATING A LIVING WILL IN PENNSYLVANIA To sign a valid living will in PA, the individual must be at least 18 years old and of sound mind. It must also signed in the presence of two witnesses, who must also sign it. The witnesses cannot be your healthcare provider or someone who stands to inherit from an individual’s estate. A living will should clearly state healthcare preferences, including wishes regarding life-sustaining treatment. It is important to be as specific as possible, as this will help ensure that the relevant wishes are carried out, as intended. If preferences change, then one can update the document. This document may include preferences for: Resuscitation Mechanical ventilation Feeding tubes Dialysis Palliative care Organ donation WHEN DOES A LIVING WILL BECOME ACTIVE Living wills in Pennsylvania become active when the attending physician determines that an individual is unable to make decisions and an individual has entered end-stage medical condition, is permanently unconscious, or have a serious illness or injury that is likely to result in death. An end-stage medical condition is defined as an incurable and irreversible medical condition in an advanced state caused by injury, disease, or illness. This condition is such that, even with the application of medical treatment, the individual’s life expectancy is limited, and the dying process has begun. Examples are: End-stage cancer End-stage heart or lung disease Extremely advanced Alzheimer’s disease or other forms of dementia Final-stage kidney or liver disease Once again, it is important to note that a living will only become active when the attending physician determines that there is an end-stage medical condition, a permanently unconscious, or have a serious illness or injury that is likely to result in your death. Until that point, you will be able to make your own healthcare decisions, and your living will does not come into effect. LEGAL PROTECTIONS FOR LIVING WILLS IN PENNSYLVANIA Pennsylvania law provides several legal protections for individuals who create living wills. These include: Immunity from liability : Healthcare providers who act in good faith and in accordance with a valid living will are immune from liability for any resulting injury or death. Informed consent : Before providing any treatment, healthcare providers must obtain informed consent from the patient or their healthcare agent unless the patient is unable to provide consent and there is no living will in place. Dispute resolution : If there is a dispute regarding the interpretation or implementation of a living will, the case may be brought before a court for resolution. What is a Reportable Defect that Needs Disclosed Under Pennsylvania law, the Disclosure Statement makes it clear that a “defect” is a problem that would have a sizable impact on a home’s value or creates unreasonable risk . In other words, something like a missing section of baseboard wouldn’t be included, but a rotting roof would be. In most cases, it’s a situation of better safe than sorry. If on the fence about disclosing something, then one should definitely disclose, because it can protect you from future liability. It’s always safer and better to disclose than to not disclose. This duty includes the risk to the Seller’s agent. The following are the exact topics that the State Real Estate Commission includes in the seller's disclosure document: Seller's expertise in contracting, engineering, architecture or other areas related to the construction and conditions of the property and its improvements. When the property was last occupied by the seller. Zoning. Condominiums and planned communities/details. Home Owners” Associations (HOA) details. Roof and attic condition and considerations. Basements and crawl spaces. Termites/wood destroying insects, dry rot and pests. Structural items, Additions, remodeling and structural changes to the property. Water supply. Sewage systems or service. Plumbing system. Water heating. Heating. Air conditioning. Electrical system. Other equipment and appliances included in the sale. Land/soils. Flooding, drainage and boundaries. Hazardous substances. Miscellaneous threats to property. Mutual Duty to Inspect: Disclosures Are Not a Substitute for Inspections by the Seller or the Buyer The seller’s disclosure only contends with issues that the seller is aware of, or reasonably should be aware. A home with a leak, for example, can reasonably be expected to have a bad roof. So a seller needs to act reasonably to inspect the property being sold. As a result sellers are frequently advised to get a pre-inspection for their home so that they know beforehand what is likely to come up as an issue. Why not just wait for the inspection, considering the buyer will be less likely to back out at that point? A listing agent can advise the best path forward, but this way, sellers have a chance to fix the problem at their own pace, rather than having to pay premium contracting prices while under contract. Buyers should do their due diligence when buying a home, considering it’s one of the largest investments of their life. A seller’s disclosure is not a substitute for an inspection, and shouldn’t be treated as one. An inspection can often and typically will uncover problems the seller wasn’t aware. However, waiting for the inspection to reveal problems can lead to a hurried resolution and require the seller to drop the home’s price by more than they were hoping. Disclosure Helps the Seller Protect Themselves It’s not uncommon for homeowners to push back against their agent’s advice for disclosure. Naturally, the Seller should not want to jeopardize their home’s ability to sell especially if it’s in regard to an issue they’ve already solved. So the disclosure is ultimately there to protect the seller, as well. Some sellers are hesitant because they think it will harm the potential salability of their home. Yet, it may or it may at the suggested selling price. However, the risk of the cost of litigation needs to be considered in the balance. Even brand new homes have problems. You’re just protecting yourself by disclosing. Therefore, noting something in the disclosure is unlikely to dissuade serious buyers, because every single house they look at has existing issues. They may not even care at all. But by informing them, a Seller is actively protecting yourself from future litigation. Lying on the PA Disclosure Statement Many homeowners may be wondering what happens if they fail to disclose. Because the stakes are so high in real estate, litigation is fairly common for failing in the duty to disclose. Failing to disclose something important about the property, is very likely that the Seller will either need to settle (which means paying to fix the problem), or hire a lawyer. Misrepresentation and fraud are the two legal actions sought for failing to adequately disclose on a Seller’s Disclosure Statement. That misrepresentation can be either an omission which is failure to disclose, or, a commission which is trying to hide some material defect. Whether or not found to be at fault will depend on whether the new homeowner can prove the Seller reasonably knew there was an issue with the property. For example, if there was water damage to a wall and the Seller attempted to paint over it to hide it can be used as evidence against the Seller. A claim can also be made using information gathered from neighbors, insurance claims, and even utility bills. If the court agrees that the Seller is at fault, one can be held liable not only for the cost of repair, but for other damages the owner experienced as well. PA does not allow punitive damages for disclosure, which means that you won’t be asked to pay additional money as a way to “send a message” to other home sellers. Of course, the representations that are not truthful can give way to a separate action of Fraud, which may allow for punitive damages. In some of the more extreme cases, courts have allowed the reversal of a sale. PA does not require the seller, to pay the lawyer’s fees for the buyer if you lose, which helps to reduce frivolous claims. Under section 7311 of the law, a buyer has two years to bring legal action for a disclosure issue. Are Disclosures Still Required for Homes Selling As-Is or That Have Never Been Lived In? Many sellers opt to sell a home “as is” to reduce the amount of time it takes to close the deal. These sellers are still responsible for disclosure. After all, disclosure doesn’t require the seller to fix the problem - one just need to inform the buyer it exists, so that they can make an informed decision about how much your home is worth. The same goes for homes that the seller has never lived in: a disclosure is still required as part of the sale. Even if never living in the home, such as if the one inherited or if you’ve invested in it, there needs to be a property disclosure on file. Even if the answer to these questions is ‘I don’t know,’ it is still needed. Can the Inspector or Agent be Held Liable Instead of the Seller? Although it's their job to inspect the home for the sort of structural, electrical, and plumbing problems that would lead a buyer to sue, inspectors are rarely held liable for not uncovering something. Even in cases where it might be obvious that they didn’t do the due diligence, home buyers often sign a contract with inspectors that limits the buyer’s ability to sue later. Similarly, real estate agents cannot be held responsible unless they were informed of a major defect and chose to ignore it, or advised their client not to disclose it. Unfortunately home inspectors can and do miss things; sometimes from simple oversight, other times because problems are deep within the home’s structure and extremely difficult to observe. What Will Not be Covered in a Pennsylvania Disclosure Every state has a unique set of disclosure obligations. In PA, you are not required to disclose the presence of unsavory neighbors, deaths that took place in the home, crimes that occurred in the house, or paranormal activity. Disclosure also distinguishes between defects which is required, as opposed to normal wear and tear, which is not required. An appliance or feature nearing the end of its usable life isn’t considered a defect. If you’ve had your HVAC system for 17 years, one knows it’s probably going to need to be replaced soon. While this is useful information for the buyer and helps determine the home’s overall value, this is not regulated by disclosure laws. In other words, the disclosure statement is not a warranty. Detailed Explanation of the PA Disclosure Form PA Disclosure form Real Estate -- Residential PA Disclosure form for Real Estate Statute The main areas are as follows: Seller's expertise in contracting, engineering, architecture or other areas related to the construction and conditions of the property and its improvements. In most cases, the Seller would answer “no” to this section. The exception would be if you are actually an experienced architect, engineer, etc. When the property was last occupied by the seller. If the Seller is not currently occupying the property, that will require a disclosure of why not. This can mean the home has been empty, rented out, or if the property is an inheritance. Even if y the Seller has not lived in the home, the Seller still needs to fill out the form to the best of your knowledge and may mean further that there is an accessing of any existing repair/maintenance records. Condominiums and other homeowners associations. The Seller need to state whether your property is a condominium, cooperative or home owner association HOA and note the annual or monthly fee amount. Roof and attic. The Seller needs to note when the current roof was installed, whether or not documented, and whether or not there are any issues with leaking. Not surprisingly, this is important to buyers since roof problems can be expensive to fix or replace. Similarly any issues with downspouts and gutters need to be disclosed, as well. Basements and crawl spaces. When it comes to basements, the main concern is flooding and further, the issue of mold. The Seller needs to note whether there is a sump pump, whether there is any dampness, and whether you’ve ever done anything to control issues of flooding or dampness. Flooding and plumbing issues are among the most common disclosures. Termites/wood destroying insects, dry rot and pests. Termites cause $5 billion in damages every year to homes in the US. The Seller needs to note not only damages you’re aware of, but also note if you’ve had any pest treatments during the past five years. Structural items. Structural problems cover everything from a shifting foundation to wall deterioration. Past damage from a house fire or ice counts as a structural item. The Seller needs to note any external problems, like issues with driveways or patios. Additions, remodeling and structural changes to the property. Did you remodel or make an addition? It’s important to note that DIY updates that turn out to have been improperly done often turns up as issues in disclosure, and work done without permits can raise red flags. Water supply. Whether water is from a well, a community system or the public supply, Seller needs to note it. For non-public water, the Seller needs need to disclose the most recent testing results. Sewage systems. The property served by a sewage system; whether public, private or community, disclosure is required as to when it was installed or connected. Any tanks, cesspools, or sewage pumps on the property need to be noted. Plumbing system. If there have been any issues with plumbing including things like your hot water heater and bathroom fixtures. Water heating. The Seller needs to check off how your water is heated, whether that’s electric, natural gas, geothermal, etc., as well as record the number of water heaters and any existing problems. Heating. This section concerns the heating system - covering everything from fuel types such as electric, geothermal, wood, solar, etc. to system types as forced hot air, steam, radiant heat, and now solar. Also, disclosure is needed is whether you have any chimneys and the condition and whether they have been maintained. Air Conditioning. In this section, the Seller needs to note what type of systems exists -- whether central electric or central gas AC. Also, the Seller needs also to note which rooms of the property have no AC or heating. This section also covers water heating and cooling. Electrical system. Improper wiring or wiring not up to code are things that he Seller needs to note. Lawn sprinklers, smoke detectors, and security alarm systems also fall under this category, as well as all of the typical kitchen and washing appliances. You also need to note whether any appliances in the home are in need of repair or replacement. Other Equipment and Appliances. Every item that’s included with the property needs to be checked off. Items range from washers and dryers to pool covers and smoke detectors. Any issues or repairs with listed equipment also need to be noted. Land/Soils. If you know your home has something like expansive soil - which can create foundational issues for homes, even if it hasn’t yet - you’ll need to note it here. This section also concerns property rights, specifically when it comes to natural resources. If there’s ever been a transfer or lease of oil or timber on the property, for example, the Seller needs need to note it. Flooding, Drainage and Boundaries. If the Seller needs lives within a flood zone or wetland area, then this needs to be disclosed. The seller’s disclosure extends to other uses of property that would impact a homeowner’s experience. The Seller needs to note any boundary disputes such as your neighbor claiming that your fence is on their land, etc. If there’s a shared common area, like a driveway or a dock, you’ll need to both note the area as well as indicate any existing maintenance agreement you have with other homeowners. Presence of hazardous substances. This section pertains to hazardous substances like (but not limited to) lead paint, radon, and asbestos. If you’ve tested for these substances and the tests were negative, you’ll need to circle “yes.” If the home was built before 1978, both the seller and buyer need to sign a lead paint disclosure that says lead paint could have been used on the property. This is a federal law and true for every state. Miscellaneous threats to property. This is a catch all for everything else, and encompasses both liens and issues with the property’s title. In other words, if for some reason you’re not fully, legally entitled to sell the property, then the Seller needs need to note it. This section also requires you to note any material defects with the property that were not covered by the rest of the form. The legal test is whether or not the item can have a significant impact on the property’s worth, or presents an unreasonable risk to people living there. If the answer is “yes”, then disclose. The Seller’s Disclosure is a Normal and Expected Part of Selling a Home Home sellers shouldn’t worry about having to disclose. It’s a completely normal part of the home selling process, and buyers expect to encounter issues and are ready to deal with it. Better to disclose it because while disclosure protects the buyer, it also protects the seller. Ultimately, seller disclosure laws help reassure homebuyers that they understand what they’re buying into, while protecting sellers against unwarranted litigation. It is better to be honest that sorry.