Wealth Preservation, Trusts and Estates

By: David M. Frees III dfrees@utbf.com
Unruh, Turner, Burke and Frees
Chairman: Trust, Estate and Wealth Preservation Section
With Offices in Phoenixville, Malvern, and West Chester Pennsylvania
610-933-8069
Senator Edward Kennedy’s will was recently probated in the probate court in Massachusetts.  The document itself is very short.  He had previously placed many of his assets into a variety of trusts and blind trusts (because of his public service and the possibility of conflicts of interest) where another party managed those assets.

However, all of his assets were not previously added to these trusts or the probate of his will would not have been necessary.  Because he still had assets in his own name, the will was offered for probate.  This gives us an opportunity to review some of his estate planning strategies such as who he selected as executor and trustee and many others such as the types of trusts used.

For example, Kennedy was married for a second time and his wife was a lawyer.  However, he named a non family member and his son Edward Kennedy Jr as a substitute.  More on this later.

We also know, that he created a revocable living trust in 2006 and that the assets remaining in his estate are to be added to that trust and distributed by the trustee of that trust.  In many states, this type of trust arrangement offers a number of advantages – including a heightened level of privacy.  While such trusts are not widely used in Pennsylvania (because they do not offer all of the benefits that they do in other states that have expensive probate fees or difficult probate systems) they can be beneficial in many circumstances.

Because the will was probated, we also know that he appointed his friend Paul G. Kirk, Jr. as executor and as trustee.  He named his son as a substitute and not his second wife.  It also appears that he may not have made provisions for his wife’s children (his step-children).

If you are in a similar situation and want more information on the role of the executor and the most common mistakes they make and how to avoid them, please click here to get our free report:  The Ten Most Common Mistakes Pennsylvania Executors Make and How To Avoid Them.

Also, for a report giving more details about the types of strategies and techniques used by the Kennedy family and many other wealthy and moderately wealth families to pass on and to protect assets.  Please click here to request my report: Enhanced Estate Planning.

The use of trusts often make estate challenges more difficult and expensive.  Furthermore, wills will often contain a special clause called an interrorum clause or “no contest clause.” This clause discourages will challenges by revoking the gift to anyone who challenges the validity of the will and/or in some cases trusts or other ways of passing wealth.  While this clause does not appear in the Senator’s will, a similar clause may be in the trusts.

As a practical matter, Senator Kennedy’s will is a self proving will.  In Pennsylvania we have a similar law that allows you to make your will admissible to probate without having the witnesses appear in court.  However, you must verify that in addition to being signed at the end of the will, that the document also contains a special notary “affidavit” signed by the person making the will as well as the witnesses who must also sign in the presence of the person making the will, one another, and the notary.

As for the size of his estate, that will not be known until the executor files an inventory which is required by Massachusetts law.  Even then, the picture of Kennedy’s wealth will be incomplete as presumably, many of his assets were already in trust.  We also know, that because he was a US Senator, that many assets were held and managed in blind trusts created during his lifetime.

As more details of the Kennedy estate plan and planning strategies become available we will report them to you.

David M. Frees III

Chairman, Unruh, Turner, Burke and Frees

Trust, Estate, and Wealth Preservation Section

610-933-8069

dfrees@utbf.com

Well, for one thing, they will all be meeting in Calgary, Alberta Canada this week at the Engage Today Conference.

Dave Frees, who represents many successful executives, business men and women, community leaders and  wealthy families and who teaches at seminars throughout the country says “I am always looking for any knowledge, information, tools and resources that give my clients and my customers an edge in their business and personal lives and that includes training and teaching in the areas of trust and estate planning as well as other areas that might be beneficial to them”

And when he was recently asked to attend this gathering of successful business and spiritual leaders, Frees felt “I had to go. I represent people from all walks of life but we all also have a duty not only to do the best that we can for our clients, customers and our community but we have to help those in need.”

Frees who has served as Chairman of the Chester County Community Foundation as well as serving on many charitable boards, believes that the solutions to our world’s problems “come from individual people who think big and really search for the answers. They believe that they can make a difference in the world and in their own business and personal lives.”

“So, when I had an opportunity to spend time with some of our greatest business and spiritual leaders, I jumped at the chance.”

Frees, who Chairs the Trust, Estates, and Wealth Preservation section of Unruh, Turner, Burke and Frees is also well known as a speaker and author on topics related to family relationships, business, and ethical influence.

His recent books include The Language of Parenting (a Communications skills guide for families), Einstein’s Business (which includes David’s essay on wealth and abundance), The Ultimate Success Secret with Dan Kenedy and Mike Capuzzi, a book, cd, and DVD collection: Persuasion2Profit – Mastering The Communications and Persuasion Skills That Make The Difference in Your Business and Your Life, and a soon to be published book, What You Don’t Know About Pennsylvania Insurance Can Hurt You.

“I host many coaching weekends, conferences and speak to many conventions.” said Frees. “So, I will process the lessons I collect from the many brilliant minds at this conference and then work with my clients and students to apply what I have learned and what we have discovered that really works.”

“That is the thing about Dave Frees” said one of his coaching students and clients. “He is brilliant at taking ideas and helping us to put them to work.”

Dave Frees can be reached at 610-933-8069 or by email at dfrees@utbf.com

Sometimes, our lawyers are consulted by a person who wants to leave a spouse, child, or grandchild out of his or her will. That decision might be for a variety of reasons, ranging from the fact that the person being omitted from distributions is very well off and doesn’t need the inheritance to the bad behavior of a relative, or to a breakdown of a personal or family relationship.

Whatever the reason, there are a few facts and laws that you should consider whenever you are omitting a person who might normally be considered the natural object of your bounty” and therefore a person likely to inherit under your will.

First, Pennsylvania law does not permit you to completely disinherit a spouse. Of course, a valid and binding prenuptial agreement might alter this rule. But, if you do not have a prenuptial agreement, and you do disinherit a souse, he of she is permitted to “elect against” your estate and to claim a sizable portion of your probate estate (and often some non probate assets). However, this is a complicated matter under the law and you should consult legal counsel if you are contemplating a claim or disinheriting a spouse.

Unlike a spouse, children, and grandchildren have no statutory right to inherit. However, direct lineal descendant’s often have an expectation of inheritance (rightly or wrongly) and it is important to take measures to be clear in your plan documents and related documents (such as beneficiary designations) to avoid litigation following your death.

These measures can include a carefully worded clause to verify that the exclusion is intentional and not just by mistake, proving for a smaller gift which is eliminated if the recipient challenges the will, and clarifying whether gifts are intended to include step children and their descendants, or just your naturally born issue.

Finally, extra care and precautions should be taken to insure that the will can withstand common challenges. Verifying testamentary capacity, the lack of duress, and the careful execution of the documents in exact accordance with state law will all be important.

For more information on making sure that your will, trust, and estate planning documents are well drafted and can withstand a challenge following your death, watch these videos on making your will bullet proof by David M. Frees III.

Bullet Proof Your Will Parts One – Five

Click here for more information about David M. Frees III, Esquire
unruhturnerburkefrees_09-3

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

David has been rated a 9.7 Superb by the lawyer rating service AVVO.
David Frees Chairs the Trust, Estate, and Wealth Preservation Section
of Unruh, Turner, Burke and Frees.

He has offices located in Phoenixville, Malverm and West Chester Pennsylvania.
These offices serve clients through out the state of Pennsylvania including
Chester County, Montgomery County, Buck, Berks, and Lancaster Counties.

For an appointment with David Frees please call 610-933-8069 for Donna or Denise.
Mention this blog post when making your appointment.

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

We continue to receive inquiries from clients in search of ways to protect the assets they leave to their children and beneficiaries from divorce, law suits and creditors. Although clients protection from tax liability is of continued importance, asset protection in estate planning has grown in significance. Clients recognize that 50% or more of the assets left through their wills and revocable living trusts can ultimately be lost by their beneficiaries. We have continued to develop strategies for increasing the protection of the inheritance left to adult beneficiaries from loss to a divorcing spouse, plaintiff or other creditor. Take a look at the recent guide that I published on AVVO regarding the benefits of the Beneficiary Controlled Trust as an asset protection tool. This guide will help further explain a great asset protection strategy to employ under wills and revocable living trusts for inheritances left to beneficiaries of ages and abilities.

Please call or email me for further discussion on this and other estate planning topics.
Douglas L. Kaune
dkaune@utbf.com
610-513-2288

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

It can be a very emotional and difficult time when a family member enters a nursing home. We want the best for our loved ones and expect that they will receive exceptional care. Unfortunaltely, there are occasions when residents are victims of nursing home abuse, elder care abuse or nursing home neglect. It is important to keep a watchful eye to make sure your family member is properly cared for in all nursing homes including those in Montgomery County, Chester County, Delaware County, Philadelphia County or others throughout Pennsylvania. Please also know that you might have a cause of action or claim as a result of the elder abuse. Review this article for some of the questions to ask and the signs that might be evidence of the negligent nursing care. Please call with any questions or concerns that might arise during the care process so that we can assist with any possible issues that arise.

Douglas L. Kaune, Esquire
610-933-8069

Regardless of where you are on your personal journey of building wealth and a legacy, you probably want to teach your children or grandchildren about how to successfully, and happily build, keep, share, and grow wealth.

Years ago I discovered a great resource to help with that task. It is a book by George S. Clason called “The Richest Man in Babylon.” It’s a short, easy to read book that teaches the basics and some profound secrets of money and wealth in a series of memorable short stories.

So many people I know have used this simple book as a starting point for teaching children and young adults preparing for the real world, the essentials of saving and building wealth.

For that reason, I recently purchased about twenty copies of the book for friends and clients. However, I went back and got a few more copies as a gift for those of you who read the blog.

As a way of saying than you for your valuable time, your comments and ideas, I’d like to offer the first ten readers who request one a softbound copy – on me. Whether you want it for yourself, for a child, or for a college senior who’s preparing for the next step of financial independence, just call my office or send me an email and I’ll mail you a copy at no charge as a thank you gift.

You can also get a copy from Amazon, if I run out and here’s the link for The Richest Man In Babylon.

Thanks again.

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

David Frees is the author of The Language of Parenting, one of the top books on family communication skills. Steve Forbes, Editor-In-Chief of Forbes magazine has called David a “grandmaster
of family communication.”

David is also Chairman of Unruh, Turner, Burke and Frees’ Trust, Estate, and Wealth Preservation Section
and is a regular contributor to numerous estate planning, and asset protection planning blogs, and publications with articles on Wills, Trusts, Powers of Attorney for specialized situations, Living wills, Asset Protection, Protecting Your Heirs From Divorce, Estate Tax Updates and Planning, Elder Law, Trusts, GRATS (Grantor Retained Annuity Trusts), and related topics.

You can reach David’s office for a telephone or personal consult at 610-933-8069.

Click here to get your free copy of this valuable executor resource for Pennsylvania executors.

If you are an executor, or, if you are trying to decide who to appoint as an Executor, make sure to order and read this important report for executors by David M. Frees III.

This report examines the most common mistakes executors make and how to avoid them.

If you want to do a great job as executor and avoid personal liability, or to pick just the right person, then this is an important resource that you have to read. Click here to get the 10 Most Common Mistakes Executors Make and How To Avoid Them.

Author: David M Frees III, Esquire
To order a copy by phone, call 610-933-8069

To view David Frees’ attorney Rating by AVVO of “Superb!” click here.

To visit our content filled web site for executors visist www.paestateplanners.com – it is filled with articles for Pennsylvania executors, trustees and for those planning their estate, wills, and trusts.