Wealth Preservation, Trusts and Estates

Are you a Pennsylvania resident? Do you know whether or not your will controls or the beneficiary designation for your life insurance, annuities, and other non probate assets controls who gets those assets?

I recently ran across this great little article on the important question of which controls – The will or the named beneficiary designation?

This particlular article is based on UTAH law but the question (and the answer) is pretty much the same under Pennsylvania law. In almost every case, the beneficiary designation on life isnurance, retirment plans, and bank and stock accounts will control. So if you have changed your will, it is also essential to make sure that your beenficiary designations are coordinated with your estate planning.

One of the most common estate planning mistakes is the failure to coordinate what the will says with how the assets are actually owned and with the beneficiary designations.

The take away? Make sure that your estate planning attorney helps you to coordinate the beneficiary designations with your documents. Make sure to ask if your tax payment clause under your will is appropriate given the way you hold and dispose of non probate assets through such beneficiary selection.

David M. Frees III Esquire
David M. Frees Chairs the Trust, Estate and Wealth Preservation Section of
Unruh, Turner, Burke and Frees
He has offices located conveniently in Malvern, Phoenixville, and West Chester Pennsylvania

The firm serves clients doing wills, trusts, estate and asset planning in Chester County, Montgomery County, and Bucks and Philadelphia County.

David Frees has been selected as “the Best” Trust and Estate Lawyer on the Main Line according to Main Line Today Magazine.

610-933-8069
dfrees@utbf.com

Share and Enjoy

This article was posted
by Douglas L. Kaune, Esquire
Estate Planning, Estate Administration, Wills,
Trusts, Elder Law,
Unruh, Turner, Burke & Frees
Phoenixville, Malvern, West Chester
Pennsylvania Attorney
dkaune@utbf.com PH: 610-933-8069

I have had a recent addition to the family, my son, James Douglas Kaune.  Welcome to our lives James!! Taking my own advice, my wife and I immediately updated our estate planning documents including wills, powers of attorney and trusts.  We also modified our beneficiary designation forms in IRA’s, 401k’s and life insurance to name the testamentary trust for my son if something happens to my wife and me.  We want to make sure James is well taken care of and that the correct trustee is apppointed to oversee his inheritance. This will help to make sure these assets are protected from poor spending habits, future creditors and possible divorce (A long time from now I hope!)  Take a look at this article for some advice when determining what type of trust, what trust provisions and what trustee would be best suited to take care of the assets you leave for your children. We are looking forward to long healthy lives with James, but want to make sure that we take all the necessary steps to make sure he is well cared for under all circumstances.

Douglas L. Kaune, Esquire
Serving, Chester, Montgomery, Delaware
Bucks and Philadelphia Counties

Share and Enjoy

Off shore accounts have been getting a pretty bad rap in the news media with the leaders of both America and Great Britain making multiple appearances to clearly establish that tax havens are just for the big corporations and illegal players seeking to evade taxes and engage in unlawful activities.

The attached article examines the possibility that there might be numerous legitimate and strategic reasons for American’s to hold assets in foreign jurisdictions and that so long as they comply with American tax law there is nothing illegal or immoral about such planning.

As you know, we try to bring you a variety of thoughtful pieces on issues involving asset protection planning and tax and estate planning. And, while the article entitled Off Shore Accounts a Necessity has a clear bias in favor of such planning, it is a great summary of the many reasons that ordinary and affluent Americans have and will continue to establish off shore banking relationships.

In these jurisdictions, the laws are such that even if a spurious lawsuit succeeds against you or your business, the process of collecting the judgment against the foreign held assets is so onerous that a plaintiff might decide not to appeal or to stop pursuing them.

For more information, about asset protection planning, and how affluent American’s legally use off shore accounts and trusts, click here.

David M. Frees III
dfrees@utbf.com
Practicing in the areas of trusts, estates, and asset protection and estate planning.

Share and Enjoy

If you have accumulated any wealth during your lifetime, and you have the desire to pass all or part of that legacy on to your heirs, you have probably been reading quite a bit lately about the unique planning opportunities that exist today.

And, it is true, that there are some conditions in the market place that have created unique and almost unparalleled opportunities to pass wealth to the next generation.

Historically low interest rates, real estate values, and temporary impairment in the value of otherwise strong family businesses mean that you can use a variety of techniques to pass stock, land, income producing assets, and interests in real estate to your heirs at a fraction of the long term value of those assets.

These conditions are not likely to continue, and there is a move afoot in Washington to eliminate some of these valid planning tools.

So planning now may be important. But, many people rush into these techniques without careful consideration of a number of important factors.

First and foremost, most of these techniques involve some aspect of irrevocability. It is therefore essential to review your current and long term cash flow needs to ensure that the gifting techniques will not impair your own security and lifestyle.

Care must also be taken to make sure that the technique or techniques used are the best match possible under all of the assumptions and current conditions. For example, should a GRAT be used? What happens if the trust is a grantor trust and you remain liable for the taxes? How does that impact your retirement cash flow?

The short version is that the time for action may be now and the need for speed is present. But, these techniques require you to carefully analyze your current estate, your cash flow and lifestyle needs, the risks of the marketplace and the best technique or combination of techniques for you under all circumsatnces.

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

dfrees@utbf.com

His Avvo rating is “Superb” 9.5

For more information on estate planning, asset protection, protecting heirs
from divorce and litigation and related topics call Donna Brownback at 610-933-8069 for
an appointment or teleconference with David Frees

Share and Enjoy

This article was posted
by Douglas L. Kaune, Esquire
Estate Planning, Estate Administration,
Wills, Trusts, Elder Law
Unruh, Turner, Burke & Frees
Phoenixville, Malvern, West Chester
Pennsylvania Attorney
dkaune@utbf.com PH: 610-933-8069

If you are going through or have recently completed a divorce proceding, you should reassess your will, trusts, beneficiary designations, power of attorney, life insurance, medical power of attorney and living will. It is likely that all of these documents will need to be changed to insure that the proper beneficiaries, executors, trustees and guardians are named in the documents. For a more detailed list of the steps you should take to protect you, your estate and your beneficiaries after a divorce you can review this article.

Douglas L. Kaune, Esquire
Serving the counties of Chester, Montgomery, Delaware, Berks, Bucks and Philadelphia

Share and Enjoy

I was fortunate to be a speaker last week at the same conference as Donald Trump’s daughter, Ivanka. And, better yet, the topic of Ivanka’s speech had to do with how she was raised and why she works so hard despite her family’s wealth.

Now as most of you know, the passing of wealth between generations and the way in which we raise and prepare our children to receive wealth, however much or little, is a topic of concern to me and to my clients. It is a concern to me as a parent. It is of interest and concern to me as the past Chair of a community foundation that supports family philanthropy, and as a lawyer that advises clients on these issues, and it is of concern to me as a citizen of a great and wealthy country that must grapple with the issue of how our heirs and descendants will live in a complex world with a disparity of wealth and resources.

It is one which I write about frequently, and think about daily with clients and for myself.

So, I was delighted to be at this conference with my youngest son Alex and to find Ms. Trump to be a humble, hard working, and thoughtful woman who thinks about this topic. She is building her familiy legacy by extending the brand to new areas where she and her brother are responsible for the results and she days that her dad would fire her if she gave him cause.

She attributes, at least in part, her work ethic to the fact that her parents instilled in her a duty of self reliance. She said that she never ceased to be amazed by the younger generation of her wealthy peers who talked about flying in “their jets.” “Those jets belong to their parents not to those children,” observed Ivanka.

She is grounded, writes thank you notes, writes handwritten letters to people she respects and from whom she wants to learn. And, while she correctly observes that her name might get more recognition she encouraged others to simply try it. To be thankful, to write to others and to learn from those they respect. That’s good advice for any person, at any age, and at any level of wealth.

So, if the Trump family can achieve a third generation committed to work, to business, and to preserving the family legacy and at the same time being a great person, then I have high hopes for thoughtful clients on this issue.

If you have any questions about my visit and Ivanka Trump’s speech, just leave a comment below or email me at dfrees@utbf.com

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

Share and Enjoy

This article was posted
by Douglas L. Kaune, Esquire
Estate Planning, Estate Administration, Wills,
Trusts, Elder Law,
Unruh, Turner, Burke & Frees
Phoenixville, Malvern, West Chester
Pennsylvania Attorney
dkaune@utbf.com PH: 610-933-8069

The Key 2009 Pennsylvania Medicaid Numbers can be found by clicking this link. They include, Community Spouse Resource Allowance (CSRA), Monthly Maintenance Needs Allowance, Average monthly cost of nursing home care in PA, Estate Recovery, Home Equity Limit, Medicaid Transfers and Ineligibility for Gifts. These figures and requirements change annually. Review these important numbers and call to meet with an experienced Elder Law Attorney to discuss ways to legally protect assets from nursing home spending.

Douglas L. Kaune, Esquire

Share and Enjoy