When to Start Estate Planning?

Estate planning is often misunderstood as a process reserved for the wealthy, the elderly, or those facing imminent health crises. In reality, estate planning is an important legal and financial step that every adult in Pennsylvania should consider, regardless of age, health, or net worth. 

Failing to create a comprehensive estate plan can leave your loved ones without guidance, expose your assets to unnecessary probate costs and taxes, and even result in the court making decisions on your behalf.

So, when should you start estate planning in Pennsylvania? The legally sound and prudent answer is as soon as you reach adulthood, and then revisit and revise your plan periodically throughout life’s milestones. A dedicated estate planning attorney in Pennsylvania can guide and help you take clear steps to protect your legacy.

The Purpose of Estate Planning

Estate planning refers to the process of organizing your legal and financial affairs so that your wishes are honored upon death or incapacity. It goes beyond simply writing a will. It encompasses wills, trusts, powers of attorney (financial and medical), advance healthcare directives, guardianship designations, beneficiary designations, and asset protection strategies. 

In Pennsylvania, if you die intestate (without a valid will), your assets will be distributed according to the state’s intestacy laws under 20 Pa.C.S. §§ 2101–2110. This statutory scheme often conflicts with personal intentions, particularly for unmarried partners, blended families, or those with minor children or special needs dependents.

When Should You Begin Estate Planning?

At Age 18: The Legal Threshold

The moment you turn 18 in Pennsylvania, you’re considered a legal adult. From a legal standpoint, this means your parents can no longer make financial or medical decisions for you without your express authorization.

Estate planning actions to consider:

• Healthcare Power of Attorney and Advance Directive: Allows someone to make medical decisions for you if you’re incapacitated.
• Financial Power of Attorney: Appoints someone to manage your finances if you’re unable to.

Even young adults without significant assets should create these documents, especially those attending college, joining the military, or traveling abroad.

When You Accumulate Assets or Open Financial Accounts

If you begin working, open investment accounts, or acquire any real or personal property, you now have an estate. At this point, you should create a basic will and consider beneficiary designations for:

• Bank accounts
• Life insurance
• Retirement accounts (e.g., 401(k), IRA)

Pennsylvania recognizes transfer-on-death (TOD) and payable-on-death (POD) designations for financial accounts, which can help your assets pass outside of probate.

Upon Marriage or Entering a Long-Term Relationship

Marriage or cohabitation is a major life event that affects inheritance rights, responsibilities, and estate tax considerations. Pennsylvania law gives surviving spouses significant rights, even without a will. But unmarried partners are entitled to nothing unless named in estate documents.

Key considerations include:

• Updating your will to reflect your spouse/partner
• Adding your spouse as a beneficiary on insurance and retirement accounts
• Considering joint ownership with right of survivorship
• Establishing a revocable living trust to avoid probate

When You Have Children

Estate planning becomes especially critical when children enter the picture. In Pennsylvania, failure to appoint a guardian in your will means the Orphans’ Court will decide who raises your children if you die.

Additional planning steps:

• Appoint a guardian for minor children
• Establish a trust to manage assets on behalf of children
• Use 529 education savings accounts
• Designate a trustee (who may be different from the guardian)
• Consider life insurance to provide financial security

Pennsylvania courts require that the best interests of the child guide guardianship decisions, so clear and legally documented wishes carry significant weight.

After Divorce or Legal Separation

A divorce automatically revokes provisions in your will that benefit your ex-spouse under Pennsylvania law 20 Pa.C.S. § 2507, but other documents like beneficiary designations must be updated manually.

Post-divorce steps:

• Draft a new will or trust
• Update powers of attorney
• Reassign beneficiaries on life insurance and retirement accounts
• Reassess any joint ownership of property

When You Acquire Significant Property or Start a Business

Whether you purchase a home, inherit real estate, or start a company, your estate plan must adapt. Pennsylvania probate law doesn’t differentiate between small and large estates in terms of process, so asset structuring becomes important.

Planning actions:

• Consider placing property into a revocable living trust
• Use business succession planning tools for LLCs or corporations
• Evaluate asset protection strategies, especially for high-risk professions
• Ensure proper titling of property (e.g., tenants by the entirety for married couples)

Pennsylvania offers certain creditor protections and inheritance tax exemptions depending on how the property is titled and who the heirs are.

When You Experience Health Changes

A new diagnosis or chronic condition underscores the need for immediate estate planning, especially around incapacity and long-term care.

Planning steps:

• Update or create living wills and medical directives
• Reevaluate powers of attorney
• Consult on Medicaid planning to preserve assets (consider irrevocable trusts)
• Plan for nursing home costs using available Pennsylvania waiver programs

Waiting until incapacity sets in may render you legally unable to execute valid documents.

As You Near Retirement

For individuals approaching retirement, estate planning shifts toward asset preservation, legacy planning, and tax mitigation. Pennsylvania is one of a few states that still imposes an inheritance tax, which varies by heir class:

• 0% for spouses and minor children
• 4.5% for lineal descendants (children/grandchildren)
• 12% for siblings
• 15% for others

Strategic use of gifting, trusts, and charitable donations can help minimize tax exposure.

Planning actions:

• Create or update revocable and irrevocable trusts
• Consider Qualified Terminable Interest Property (QTIP) trusts for second marriages
• Review Roth conversions and required minimum distributions (RMDs)
• Review long-term care insurance

Key Estate Planning Documents in Pennsylvania

A legally sound estate plan in Pennsylvania typically includes:

• Last Will and Testament: Directs the distribution of assets and names guardians for minors. Must be signed and dated by the testator and need not be notarized (though self-proving affidavits are recommended).
• Revocable Living Trust: Avoids probate, maintains privacy, and allows flexible asset management.
• Financial Power of Attorney: Allows an agent to manage your finances if you become incapacitated. Pennsylvania law changed in 2015 (Act 95) to impose stricter formalities on execution and fiduciary duties.
• Healthcare Power of Attorney & Living Will: Covers medical decision-making and end-of-life care preferences.
• HIPAA Authorization: Grants access to your medical records to chosen individuals.
• Beneficiary Designations: Control the distribution of retirement plans, life insurance, and accounts with TOD/POD.
• Letter of Instruction: A nonbinding but useful document providing guidance on funeral preferences, digital accounts, and other personal matters.

The Cost of Waiting

Failing to plan or planning too late can result in:

• Court-appointed guardianship during incapacity
• Higher inheritance taxes
• Lengthy and costly probate proceedings
• Family disputes over intentions
• Loss of control over end-of-life care or child custody
• Inaccessibility of assets due to frozen accounts

In Pennsylvania, the average probate timeline can stretch nine to 18 months, depending on estate complexity. Attorney fees, court costs, and executor commissions can consume a significant portion of the estate, which are costs that proactive planning can reduce.

How Often Should You Update Your Estate Plan?

Your plan should evolve with your life. Revisit your estate planning documents:

• Every three to five years
• After major life events (marriage, divorce, birth, death, relocation)
• After substantial changes in finances, health, or business holdings
• If there are changes in the law

For Pennsylvania residents, even moving between counties may warrant a legal review, especially if local Orphans’ Courts or Registers of Wills have different procedural expectations.

How Our Pennsylvania Estate Planning Attorneys Can Help Protect Your Legacy

Strategic Review

At Morella Bencsics, our Pennsylvania estate planning lawyers are ready to provide you with strategic, personalized guidance at every step. We will begin by conducting a comprehensive review of your financial and personal circumstances. This includes evaluating real estate holdings, business interests, retirement accounts, and family dynamics. 

Document Preparation

We prepare legally sound estate planning instruments such as wills, revocable or irrevocable trusts, powers of attorney, and advance healthcare directives that reflect your wishes while complying with Pennsylvania law. Our team ensures your assets are properly titled, beneficiaries are correctly designated, and documents are regularly reviewed and updated as your life changes. 

Special Considerations

If you have minor children, we assist in appointing guardians and creating financial safeguards for their future. If you own a business, we structure succession plans to ensure a smooth transition. Throughout, we focus on protecting your privacy, limiting family conflict, and ensuring your legacy is carried out exactly as intended.

Tax Saving Strategies

In guiding clients through the estate planning process, our attorneys consider every important factor, whether you’re a single person or managing a complex family estate. We help structure plans that account for state and federal estate taxes, designate beneficiaries on life insurance policies and retirement accounts, and protect the family home and other assets.

Retirement and Health  

From retirement planning and health care directives to charitable giving strategies, we ensure your estate size and goals are addressed so your family members are cared for and your wishes are honored. At Morella Bencsics, we don’t just prepare documents, but provide peace of mind. 

Take control of your future today so your loved ones are secure tomorrow. To schedule your free consultation, call us at (412) 960-1656 or contact us online.