What if 1 heir dies?

[Fl Cat7]

What is the name of your state?PA
Say a couple sets up a will together, they have 3 sons.
Son A has 1 child
Son B has 3 children
Son C has 2 children
The will is set up so the 3 sons split 1/2 of the estate and the other half is to be split between the grandchildren.
The wife dies, then son A dies.
What happens to son A's share if the will does not cover this?
I thought it would go to son A's child, but son B and C think it should go to them. Son A did have a will (in FL) and left everything to his son.
Thank you.

 

[divgradcurl]

I'm not exactly sure what you are talking about here -- you said wife died, then A died, I assume you are concerned with what happens when the original husband dies?

Anyway, Pennsylvania probate code has an anti-lapse statute, which basically means that if a named heir dies before taking his or her gift, the gift does not lapse, but is instead given to his or her heirs, if any. A's heirs are substituted for A in the will.

So, in your case, the where you have the 1/2 split between the 3 sons, son A's share will be given to his heirs -- basically A's heir "steps into" A's shoes.

See Penn Consolidated Statutes, title 20, Chapter 25, section 2514(9)

http://www.alignedpartners.com/Title_20_web_entry_page.htm

 

[Fl Cat7]

Thank You. Yes the husband/father is ill and hopefully this will not be a issue, but it looks like it might. During a family meeting son C made some comments to the effect that son A's share should go to him and son B not son A's child.
Do you know the $ amount estate tax kicks in? Are all items in a estate counted toward this figure?

 

[divgradcurl]

Are all items in a estate counted toward this figure?

Typically yes, but it depends on exactly what property we are talking about.

The federal estate tax exemption is currently around $1,000,000, which means that the first million of the total estate (before being paid out to any of the heirs, not a million per heir) is exempt from estate taxes.

However, Pennsylvania also taxes estates at the state level; the rates and such depend on who is getting the inheritance, and gets a bit complicated. You can find the information on rates and the like here: http://www.alignedpartners.com/Title 72/Title 72.htm

I am not that familiar with PA law, but it appears from a quick glance that PA exempts the first $3,000 of the estate (this is net, after already paying a bunch of stuff from the estate proceeds), then taxes the rest at 4.5% for stuff going to lineal descendants of the deceased, which A, B and C would be.

Depending on your exact situation and the size of the potential estate, it may be worthwhile (assuming all turns out okay) to head down to a local attorney familiar with estate planning, and figure out how best that the father's wishes can be met while reducing the tax burdens on the estate.

 

[Fl Cat7]

Thank You! The estate is probably at least $350,000 to as much as $750.000. There is a home, stocks, cash, CD's, a new car and personal property, probably life insurance also. I hope that A's son and his uncles will work together for everyone best interest. Unfortunatly I have seen how people can get when there is money involved. I have not spoken to my own father in over 15 years because of problems after my greatgrandmothers death. You have been quite helpful this whole situation is very hard on A's son and being so far (he lives in Florida) does not help. He has already flown up there twice in the last few months to spend time with his grandfather (he was more of a dad to him than his dad, Son A) and hopefully he won't leave us to soon. He has 2 new greatgrandsons yet to meet, one bearing his name is the 4th. But I want him to have the info now rather than later. Thank you again.