Wealth Preservation, Trusts and Estates

If you are a Pennsylvania resident, there are many different taxes and tax systems that have to be considered in creating any truly effective plan. In addition to the federal estate taxes, you should also consider the effect of gift taxes, state and federal income taxes, the Pennsylvania Inheritance Tax, and in many cases, the generation skipping tax.

Why? These taxes often make one planning technique just the thing for one client and a terrible mistake for another. Consideration of these taxes is usually time very well spent. For more see my article here.

David M. Frees III, Esquire

Follow David Frees on Twitter

Share and Enjoy

The length of the probate process in Pennsylvania (PA) or other states varies greatly from estate to estate. The determining factors include the assets involved in the estate, the experience of the Executor/Administrator and counsel and the ease in dealing with the beneficiaries. Contrary to common belief, the process is rarely impacted by the actual probate court requirements which can be accomplished timely if the other factors are favorable. Some of the most common causes for a delay in the estate administration process are:
1. Beneficiaries and family members who are not getting along with each other or with the Executor. The psychological and family related issues are sometimes the most difficult to respolve.
2. Hard to value assets such as closely held business interests or vacant land.
3. Assets which are difficult to sell such as real estate or business assets.
4. Complex estate tax and inheritance tax considerations.
You can review some of the probate requirements at the Chester County Register of Wills Website.
Let us know if you have any questions about the probate process, inheritance or estate taxes or other improtant estate administration issues.

Douglas L. Kaune
dkaune@utbf.com
610-933-8069

Share and Enjoy

We have just posted the answers to some of your recent questions. Please enjoy this brief video and the answers to your questions. Just click below:

What is a pour over will? Click Here.
What is a Holographic or Handwritten Will and why avoid them? Click Here.
Who should be the executor of my will in Pennsylvania? Click Here.

David M. Frees III, Esquire
610-933-8069

Please remember to ask any questions and we will be happy to answer them. Just leave a comment below or for more privacy email me at dfrees@utbf.com. Remember, when you email a question we may answer it publicly.

Unruh, Turner, Burke and Frees and David Frees has offices for their Wills, Estates, Trust and Estate Planning and Asset Protection lawyers in Phoenixville, West Chester, and Malvern located conveniently in Chester County Pennsylvania also serving clients in the Philadelphia region. Click Here For Directions.

Share and Enjoy

Our best laid plans can go awry. And, as they say in the armed forces, “No plan survives contact with the enemy.” Indeed, many financial plans have been rendered obsolete or non functional by recent events.

As we have observed before, many wills and estate plans in Pennsylvania fail because families fail to structure their assets and beneficiary designations to match the plan. A will or trust says one thing but the assets are jointly titled or otherwise pass outside of the plan. In other cases, a plan fails because the unimaginable happens.

Does this mean that you shouldn’t plan for retirement, college tuition, weddings, tax savings, and to pass on your assets? To the contrary. Plans are like goals.

If we fail to set goals we have no basis to act or to judge the progress we are making. Just yesterday I met a 24 year old man who set a goal to create a million dollar a year company by the time he was 21. He missed his goal by 18 days. But, he said that he would never have achieved it without setting that goal. It motivated him and it allowed him to see how he was doing and to adapt.

Establishing a plan means that we might fail to achieve the end result. The plan may need to be revised and we may need to adapt. But we are almost always better off having gone through the planning process.

And, in times of trouble, we need information to help us to adapt the plan. So, below are a few links that might be useful in revising the plan and in adapting to our new circumstances.

And because many people hear only the bad news, take a moment to consider the good news. Gas prices, while rising slowly have been quite low. Many families are saving at rates not seen for decades. We are still giving to charity and are vacationing in our own country rather than spending dollars overseas.

There is little purpose in subjecting ourselves to constant bad news. For many people, that means that they become so absorbed in the bad and what is beyond their control, that they fail to act on matters still within their control.

We can still have a say in government. So watch how the government spends the money and tell them what you think with your letters and your vote. The spending can be viewed by clicking here. or by visiting http://www.recovery.gov/

Want to calculate how much you now need to retire? Want to make a gift to charity and need to know if you can? There are a number of great financial and personal calculators here. Just click www.paesateplanners.com for links to several tax and personal financial calculators. Then start doing what you can. Work on what you can control rather than worrying about the matters outside of your control. You will feel better.

David M. Frees III

Follow David Frees on Twitter for estate, tax, financial, and asset protection planning information
for you and your loved ones.

Unruh, Turner, Burke and Frees offers legal services in a variety of fields and has offices in West Chester Pennsylvania, Phoenixville Pennsylvania, and Malvern Pennsylvania. The firm services clients the greater Philadelphia area including Chester County, Montgomery County, and Delaware County.

Share and Enjoy

Probate is the court oversight of the estate administration process after a person passes away. Only certain assets are considered probate in nature. Probate assets typically are those owned by the decedent in the decedent’s individual name without a beneficiary designated. The Executor, where there is a will, or Administrator, where there is no will, is appointed by the Register of Wills Office in the county where the decedent last resided. He or she then must follow the probate procedures to properly complete the estate administration. The Chester County Register of Wills can be visited by clicking here.

Douglas L. Kaune or dkaune@utbf.com

Share and Enjoy

Many of our clients have expressed an interest in the Federal Stimulus Package. Now that it has become law, we have a link for you to visit and read the text (over 1,000 pages of it). You can also leave feedback and comment. Beware, that this stuff can put you to sleep so we strongly advise against visiting the site prior to operating a vehicle or heavy machinery. In fact, the more we think about this, visits should be limited to evenings and perhaps periods of insomnia.

To see the Stimulus Bill click here.

Thanks to one of the advisers for our clients that send us this riveting information, Douglas R. MacGray, J.D., C.F.P. ® (610) 783-4265.

David M. Frees III

Do you know that very few wills actually work the way that the
person wanted due to the failure to coordinate assets and insurance with the will?
Want to avoid having your plan fail? Want the will and trust to work as you intended?

Then follow David M Frees III on Twitter for his regular hints, pointers and
updates that save his clients time, taxes, and money. Click Here.

Not into Twitter or technology? Need updates or information?
Call 610-933-8069.

Share and Enjoy

Many  clients ask us about how to plan and to save for college as part of their estate planning, asset protection planning, and tax planning. In our Enhanced Estate Planning Process (TM), we focus on the many ways that families can protect assets for the things that are important. And, lifestyle, family values, and educating the next generation rank high on the list. And, when you plan properly, you can protect assets from your creditors and for your children and grandchildren. You can also get these assets out of your estate for tax purposes, and you can make sure that they get used for educational purposes and not for unrelated reasons.

Because the economy has robbed many people of the assets that they were going to use, many grandparents are also looking for ways to help children and grandchildren with these extraordinary expenses.

Obviously, the sooner you plan the better. But, it is never too late.

There are several types of 529 plans, UTMA accounts, individual trusts, and other tools including outright gifts that can be used. However, a comprehensive plan should be thought out before you start with the trouble and expense of any particular technique. And, there are many pros and cons to 529 plans. Finally, you need to understand how these plans invest and work.

I recently discovered a great resource to use in calculating and planning for college. Many site are set up to sell consumers a product or service. This site is just jammed with resources, calculators, and information. Just click here to visit the FINRA college resource center.

We also post articles on these and related topics at Pennsylvania Estate Planning.

I also wanted to remind you of a new service that we are offering for our clients and prospective clients.
If you would like our regular “HOT TIP” that you can use each week to save tax dollars, avoid probate, make your will actually work (most do not), or protect your assets, then follow David M Frees III, Esq on Twitter. Just click here.

Thank you for your comments and questions below.

David M. Frees III Esquire

Call 610-933-8069 for more information, an
appointment, or to receive our free report
The Ten Most Common Mistakes Executors Make and How To Avoid Them.

Share and Enjoy

Concerned that a child or grandchild might lose an inheritance to divorce or a lawsuit? There are techniques that can be used to protect lifetime trusts and transfers and transfers under your will.

Often referred to as Beneficiary Controlled Trusts, or testamentary asset protection trusts, these vehicles can give an heir control over assets without ownership of the assets. In this way, they can often be protected from taxation, from lawsuits, and from divorces. Learn more in this video or call 610-933-8069 or email dfrees@utbf.com and ask for David Frees’ article on protecting your heirs from lawsuits and divorce.

David M. Frees III, Esquire
610-933-8069

To follow David on Twitter for the most up to date information on estate planning and asset protection planning for Pennsylvania residents click here.

Questions and Comments? Please feel free to leave a question or comment below.

Share and Enjoy

Have you ever heard of a GRAT or a “Walton GRAT”? The Grantor Retained Annuity Trust is a powerful estate planning and asset protection technique that allows wealthy families and modestly wealthy families to move a great deal of value without incurring gift taxes at the time of the transfer. The GRAT also allows you to move assets out of your estate but to get some of the assets returned to you. This ability to gift and to use assets is very rare in the estate planning world.

The GRAT can be quite complicated and you will need to consult counsel. However, in the current environment where stocks, real estate, and business values are at historic lows, and, where interest rates are also low the GRAT is a tool that can really help families to protect and preserve assets for the next generation. In this brief video David Frees explains how it can work.

David M. Frees III, Esquire
dfrees@utbf.com
610-933-8069

To follow David on Twitter for the most up to the minute news and
information on the best estate planning and asset protection techniques for Pennsylvania residents.
Just click here.

Share and Enjoy

Asset protection has been an overlooked part of most estate plans. However, as the costs and incidents of litigation have risen, and as awards have become larger, clients are increasingly interested in what options and information we offer to help them protect their assets – not just from taxation and will disputes – but also from lawsuits, and creditors.

Many clients are also surprised to find that some of the most effective tools of asset protection are very inexpensive and cost effective and include a simple review of your automobile and homeowner’s policies.

There are many weapons in the asset protection lawyer’s arsenal which include both revocable and irrevocable trusts, off shore planning, the creation of Limited Liability Companies and Limited Partnerships. However, one of the best places to start building an effective asset protection plan is with your own insurance policy.

For example did you know:

That many Pennsylvania drivers are either uninsured of have the minimum of $35,000.00 dollars of coverage. What if you were injured by one of these drivers? How would you recover?

That you can buy a liability umbrella policy that protects you from lawsuits involving your car or home for a few hundred dollars that can give you millions of dollars of coverage and at the same time get even better legal defense in such an accident?

While it is true that many affluent people and families have liability exposure due to the ownership of businesses and real estate, the single largest liability exposure is the automobile. And, to make matters worse, you probably do not have all of the coverages that you will want and need for maximum (and inexpensive) protection.

For a variety of reasons, many insurance agents fail to explore the costs and benefits of uninsured and under insured coverages, stacking, full and limited tort and liability umbrella policies.

And, you already spend quite a bit on insuring against loss. But, there are many uninsured drivers in Pennsylvania, and if you are stuck by an uninsured or under insured driver, you may not be able to recover anything for your injuries and that a coverage that you may not have maximized under your policy is the only place to go.

Do you know that often, for a few hundred dollars you can double, triple or quadruple your liability coverage and virtually insure a better legal defense by the insurance company if you are sued after being in an accident?

I have teamed up with Robb S. Frees, a licensed agent and insurance broker in Pennsylvania whose business focuses on personal line coverages – the very policies that protect you. And we have just finished a short new book entitled: What You Don’t Know About Buying Insurance Can Hurt You.

This book walks you through the maze of Pennsylvania insurance issues that you must understand to build the primary insurance foundation of an effective asset protection plan for yourself and for your family.

This book is not selling insurance or legal services. It is just a brief and useful guide to this important issue. Robb and I know that if we give you useful information that you can act on, that you can then feel confident consulting us when and if you need to.

This book will be published on or before June 30th. For a limited time and to a limited number of people, we are offering copies at no charge to get feedback for future editions. To pre-order a free copy call 1-610-933-8069 and ask for a copy of “David’s new insurance book.” We will be happy to send it out as soon as it is available.

We also welcome any comments or question below so that we can make future editions of the book even better.

David M. Frees III, Esquire
To follow David on Twitter for the most up to date information on the best information on Pennsylvania Estate Planning, Estate Administration, Wills, and Trusts click here.
610-933-8069

Share and Enjoy