Pennsylvania sales tax
A trustee of a living trust is generally entitled to a fee for services performed similar to those performed by an executor, although the level of compensation is not set by law. pennsylvania sales tax 1040 tax form. An executor may hire an attorney to assist in the administration of a probate estate. Similarly, a trustee may hire an attorney to assist in the administration of a living trust following the death of the grantor. If the terms of the living trust do not require the preparation of an inventory or the preparation of accounts, as typically they do not, the attorney fees will generally be lower for services to the trustee because time related to probate filings will not be incurred. pennsylvania sales tax Estimate-tax-return. However, the cost of attorney advice and services with regard to income tax and estate tax issues is likely to be equivalent whether provided to the executor of a will or to a trustee. Speed of transfer. A trustee could begin making distributions of assets to beneficiaries moments after the death of the grantor. pennsylvania sales tax Federal tax. An executor cannot make distributions until he or she is appointed by the court after the will is admitted to probate, but this appointment generally occurs within days after death and, once appointed, the executor is legally empowered to distribute all the probate assets to the beneficiaries. However, it is not necessarily prudent for either a trustee or an executor to immediately distribute assets. Distribution of assets to beneficiaries is usually delayed in probate because the executor is personally liable for claims of creditors left unpaid by the estate because assets have been distributed to beneficiaries. The executor is also personally liable for unpaid federal and Ohio estate taxes. The trustee of a living trust can also be held personally liable for unpaid estate taxes and, in some circumstances, unpaid creditors. Avoidance of multiple probate proceedings. Finally, if homes or other real property are owned in a number of different states, use of a living trust may be especially useful to avoid separate probate proceedings in two or more states. What are the disadvantages of a living trust compared to probate?Lifetime effort. The implementation of a living trust is likely to be more time consuming and far more tedious than would be the case with only a will. The single most common defect in the implementation of a living trust, where the goal is to avoid probate, is the failure to transfer ownership and title of assets into the name of the trustee. Simply creating the document will not work . the assets must be re-registered, re-titled or otherwise validly transferred to the trustee of the living trust. Further, an individual needs to remain vigilant that all assets acquired after creation of the living trust are placed into the living trust. Otherwise, those assets may pass through probate. Lifetime Costs. While a living trust may have cost advantages relative to probate following death, a will generally has cost advantages relative to a living trust during an individual. s lifetime. The costs associated with creating a living trust are generally more than those for creating a will. Also, the need for a will is not eliminated as it is often necessary to dispose of assets at death that may not have been transferred to the living trust during the grantor. s lifetime.
Pennsylvania sales tax
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