Wealth Preservation, Trusts and Estates

A recent Pennsylvania Supreme Court case raised the issue of whether or not an agent under a power of attorney can change the beneficiaries of the principal’s retirement plans. Be sure that your power of attorney is accurate under the new ruling.

By: David M Frees III, Esquire
Since the recent Supreme Court ruling in Slomski, you might want to check your power of attorney with your will, trust, or estate planning lawyer to make sure that it still accurately reflects your intentions. Click here to read the Slomski case on our web site www.PaEstatePlanners.com.

First, you have to ask yourself whether or not someone should have that power. And, while your initial answer may be no, there may also be reasons why an agent should have that power. For example, if your spouse is the beneficiary of your IRA and retirement plans, it might seem like you would not want that to be changed. But, what if you became incapacitated and your spouse became very ill. He or she might want to change the beneficiary from himself or herself, to one or more of your children.

And, what if you were incapacitated and one child became very wealthy, while another, due to sever illness was unable to work. Might you want your spouse, as an agent under your POA, to be able to change the beneficiaries.

There is no right or wrong answer.

But, what we do know, is that thanks to the Supreme Court’s ruling in the Shlomski case, your power or attorney may no longer do what you wanted.

If we drafted your power of attorney, please feel free to call for an telephone consult to see if you need or want to revise it.

If our firm did not draft your power of attorney, please contact your counsel, or, schedule an appointment to review your estate plan.

There is no charge for the initial consultation, and if we are doing a will, trust, or other documents for you, we will update your power of attorney for no additional charge.

To get an appointment or phone consultation with one of our lawyers, please call and mention this code DavidFrees2010. Call Donna, Denise, or Beth for an appointment or for a pjone consultation about this important issue. 610-933-8069

David M Frees III is the Chairman of the Trust, Estates, and Wealth Preservation Section of
Unruh, Turner, Burke and Frees

He can be reached at dfrees@utbf.com or at 610-933-8069.

The firm maintains law offices in Malvern, Phoenixville and West Chester. These offices are convenient to Devon, Exton, Chester Springs, Downingtown and many surrounding communities.

The Qualified Domestic Trust (QDOT) is an imortant estate planning option for married couples composed of at least one non U.S. citizen. The United States federal estate tax laws are very different as they relate to a surviving spouse who is not a U.S. citizen compared to a citizen spouse. In particular the surving non-citizen spouse in not given an unlimited marital deduction for assets passing from his or her spouse at death. Therefore, some portion of the assets left to the surviving non citizen spouse could be subjected to a federal estate tax at rates in excess of 40%. The QDOT is one estate planning tool used to defer the estate tax owed by the non-citizen surviving spouse. The QDOT can be created under a last will and testament, a revocable living trust or as a stand alone trust. Transfers made at death to a QDOT for the benefit of a non-citizen spouse will qualify for the marital deduction and will not be taxed at that time. The creation of the trust mechanism is not sufficient and must be coupled with prudent lifetime planning and asset titling. Read here for additional information on the international estate planning issues generally.
To add to the complexity of this issue, the overall U.S. federal estate tax system is unsettled. As we have discussed on numerous occasions on this site, the federal estate tax was technically repealed on January 1 2010 but there is extensive discussion of the estate tax being reinstituted by Congress retroactively to January 1, 2010. We will continue to address other estate planning concerns of non-U.S. citizens and U.S. citizens alike in later Blog entries.
Please feel free to contact us any time at 610-933-8069 or dkaune@utbf.com to discuss your particular circumstances to determine the appropriate planning options for you.
Wills * Trusts * Elder Law * Probate * Asset Protection * Power of Attorney * Estate Planning
Malvern, Phoenixville, West Chester Offices Chester County Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Law Practice Locations.

By: Lawyer: David M. Frees III Malvern * West Chester * Phoenixville

Tax Deductions and Required Minimum Distributions for 2009 and 2010 - Estate Planning Means Good Tax Planning

If you took advantage of the one year exception last year, you may not have taken a required minimum distribution from your IRA or 401(k). However, as our friend Doug MacGray reminds us in his news letter MacGray Matters, that the RMD is back.

Doug also notes that Haiti earthquake donations made this month can still be taken on your 2009 tax return.

First, the issue of required minimum distributions.

THE RMD is back: If you hold money in a traditional IRA, and you are older than 70 ½, then beginning this year (2010), you must once again withdraw your annual Required Minimum Distribution. Of course, when you make these withdraws, you are subject to tax (on traditional and not Roth IRAs).

The I.R.S. suspended the RMD rule in 2009 due to the large loses many taxpayers experienced. That was great for last year, but the RMD is back.

As your tax preparer will remind you, the RMD is determined by your age and the market value of your IRA. So if you’re 70 1/2 or above, contact your investment advisers soon to plan for this withdraw and the tax issue that will result in on your 2010 return.

Tax deductions still available for 2009:

Just as a reminder, President Obama recently signed into law an act which allows taxpayers to claim a charitable deduction for tax year 2009 for cash donations made for the relief of victims in areas affected by the January 12, 2010 earthquake in Haiti. These contributions must be made before March 1. Ask your adviser for more specifics about the eligible recipients.

Thanks to our friend Doug MacGray
Principal, Senior Vice President Financial Planning
300 Conshohocken State Road, Suite 670 | W. Conshohocken, PA 19428 | (610) 783-4265 (direct)

Hope that you had a great snow weekend and here’s to a safe return to work.
Be well.

David M. Frees III, Esquire
For an estate planning consultation or for advice concerning an estate or trust, call 610-933-8069. Mention OFFER DMFREES2010 for your free consultation.

Unruh, Turner, Burke and Frees maintains offices in Malvern, Phoenixville, and West Chester serving Devon, Berwyn, Exton, and the Western Main Line

dfrees@utbf.com

By David Frees, Esq. Trusts * Estates * Asset Protection and Estate Planning

It is that time of year when the IRS publishes warnings about tax fraud to try to keep the tax payers honest. And, it is also that time of year, when faced with increasing tax liabilities, many tax payers update their estate and asset protection planning and look for opportunities for tax savings as well as the opportunity to shelter assets from frivolous lawsuits.

However, as many of the articles below will confirm, there are unscrupulous “salesmen” who tempt tax payers with tax devices and “asset protective” investments that are just too good to be true.

So, how do you know of that proposed tax advantaged investment is a scam, borderline or flat out illegal?

Here are a series of articles that give you some of the warning signs of a dangerous sales pitch. The danger signs include, but are not limited to: tax investments that radically change your return ( a red flag to the IRS as well), investments where you are prohibited from getting a second opinion by a non disclosure agreement, returns or results that are simply too good to be true, and many more.

In any case, be sure that you really know the law, get good advice, and do your due diligence before investing in any type of investment promising tax results that are too good to be true.

Warning Signs of Bad Tax Investments from the New York Times

The Eight Warning Signs of Tax Fraud in Your Asset Protection

When Off Shore Planning and Asset Protection May Be Tax Fraud

David Frees and
Unruh, Turner, Burke and Frees
Maintain law offices in Phoenixville, Malvern and West Chester Pennsylvania where their
Trust, Estate and Wealth Preservation Section serves clients seeking legal and strategic
advice about wills, trusts, estate planning, asset protection, and elder law planning.

You can reach David Frees at 610-933-8069. Mention code DFrees2010 for a complimentary
phone or in person consultation