| David M. Frees, III |
Phone: 610-933-8069 120 Gay St, Phoenixville, PA 19460 |
Douglas L. Kaune |
Frees has received AVVO's highest ranking of 10.0 Superb
Unruh, Turner, Burke and Frees has law offices in Phoenixville, Malvern, and West Chester.
The firm serves clients throughout the Philadelphia region including Exton, Chester Springs, Collegeville,
Phoenixville, and the Main Line
Frees has received AVVO's highest ranking of 10.0 Superb
This brief article will examine why 2010 estate planning resolutions and will updates are more important than ever, and how to make sure that this is one resolution you’ll actually keep.
First, the many laws related to estate planning and estate and inheritance taxes change regularly. For example, Medicaid – nursing home laws, estate and gift tax rules, and power of attorney laws have all changed recently for Pennsylvania residents.
However, this year there was also a major change, when Congress allowed, at the last minute, for the federal estate tax law to lapse. But, don’t take that too happily because it comes roaring back in just 12 months and that version may be worse than ever. And, to make matters worse, if your assets (including life insurance) exceed 1 million dollars, your estate planning documents might not even work properly.
So for the full story on who should revise their estate plan and why, as well as notes on how to keep this resolution, click here.
David M. Frees III on Temporary Repeal of the Federal Estate Tax
Please leave questions and comments below.
David M Frees is a lawyer in Phoenixville, Malvern, and West Chester. These offices serve many communities on the Main Line of Pennsylvania and beyond. Looking for a lawyer to do a will, trust, estate plan, power of attorney, or related work in Collegeville, Exton, Paoli, Malvern, Devon, Berwyn, Daylesford, Wayne, Ardmore, Chester Springs, and the surrounding region?
Unruh, Turner, Burke and Frees and David Frees can be reached at 610-933-8069
Frees has received AVVO's highest ranking of 10.0 Superb
On Friday, December 12th 2009 Chester County Attorney David M Frees was a faculty memeber at the Philadelphia Convention Center to present his well attended program: Estate Planning For Families With Young Children.
Frees, who spoke for the PBI (Pennsylvania Bar Institute) was asked to return to the event faculty for his second year of presenting on this topic. Frees, who Chairs the Unruh, Turner, Burke and Frees Trust, estate and Wealth Preservation section, taught lawyers from around the state about the most important topics for lawyers representing families with young children and how to best serve their clients.
Frees’ topics included many of the best practices in estate planning including: how to help families to select guardians, 2) the advantages and disadvantages of trusts vs uniform transfers to minors accounts, 3) who should be the trustee?, 4) At what ages should distributions be made and how should you instruct the trustees when you’re no longer available?, as well as how to use 529 plans for Pennsylvania residents and, 5) should parents consider a sprinkle trust where there is an age gap between the children and until they graduate from college?
Other topics included planning to protect children and grandchildren from divorce and lawsuits.
Many of the lawyers in attendance have returned to see David on this topic for more than one or two sessions knowing that they will get the latest thinking and a real overview of the pros and cons of many different estate planning options to share with their clients.
If you need to update a will, trust, or estate plan, or if you are the parent or grandparent of young children and want your plan to truly reflect your thinking and wishes, please call Donna or Denise in the office of David M. Frees III at 610-933-8069. Mention this press release to receive a free copy of David M. Frees’ recent report: The Ten Most Common Mistakes Executors Make and How To Avoid Them.
Rarely do our blog postings and articles come under the category of urgent. But, if you have an estate in excess of $1 million dollars (including life insurance), then you might need to review this immediately.
Why?
The failure of Congress to act on the issue of the end of the federal estate tax has caused an estate planning debacle for Americans that is both complicated and involves risk in either taking a wait and see or an early action strategy.
In other words, since the tax appears headed for an automatic disappearance at 12:00 on December 31st, but might be reenacted after the Congressional holiday break, there is no perfectly clear choice of action.
Thanks to Congress, any decision you make could end up being a problem. However, you need to consider your options before the end of the year and in 2010. And many people need to consider wills that use disclaimers or QTIP (Qualified Terminable Interest Property) trusts rather than outright gifts to spouses or the traditional federal estate tax formula trusts.
Why? Many wills which are drafted to deal with federal estate tax issues have formula clauses that might no longer make sense but may work again if congress reenacts the estate tax after January 1, 2010. Planners simply did not believe that the tax would ever really disappear and clients could not tolerate plans that tried to deal with every possible eventuality because of the complexity involved.
For example, many wills carve out a portion of the estate to go into a generation skipping trust. That is, a trust that goes to children or grandchildren at some point, or is for their use. However, if there is no generation skipping transfer what happens to those funds?
There are also complications for state death tax planning caused by the elimination of the tax. Not only did Americans generally, and their tax advisers believe that this was unlikely, but so did the states. In Pennsylvania, this is less of a problem than in other states, but there are still consequences to consider when using trusts (either created during lifetime, or under wills).
No one really thought that the federal government would ever let this happen, especially, in light of the federal deficit, but it appears to be a real possibility if not the most likely scenario. And, we are not the only ones who think that this failure of Congress created a big mess. See Forbes article on the estate tax mess. So how do you get the information that you need?
Call your estate planning attorney at least for a conference call. And, if your will or trust, has federal estate tax planning provisions, then be sure to review it promptly.
Our Telephone Strategy Telephone Seminars:
For our clients who are reading this, or for you if you want to become a client of the firm, we know it is the holiday season, but we are scheduling telephone seminars on some of these issues in light of the last few days. There will be two different calls. The first is for those who have estates of under 3.5 million dollars. The second will be for those with estates of 3.5 million or above. These calls will brief you on your options and what needs attention right away, and what can wait and you can enjoy them from your home or office just by calling in to the number we provide you.
Our Limited Emergency Update Plan Option:
Also, for our clients, or prospective clients, who want to act now to protect your estate but worry that you might be revising them again, we are currently offering you our Emergency Estate Plan Update (TM) which includes the opportunity to revise and update your plans right now, and pre-arranged small additional fee if revisions are required if Congress acts next year.
So, you can get the coverage and updates you need now without worrying about being recharged the full price for another round of revisions. Preference for these Update Plan appointments is given to existing clients and their are a limited number of such appointments available in December and January.
How To Get Information:
There are three ways to get more information on these calls, or our Emergency Estate Update Plan: 1) leave a comment below, 2) call 610-933-8069, or 3)email dbrownback@utbf.com and put “telephone seminar” in the subject line. We will let you know when the schedule is set. For an Update Plan appointment, simply call Donna, Denise or Beth at 610-933-8069.
Please Get Us You Updated email Information:
We will also be sending client emails on these important issue so make sure that you call the office and give Donna, Denise, or Beth your current email address. You can give them your email address by phone at 610-933-8069 or by email at dfox@utbf.com.
Enjoy your holidays.
David M. Frees III, Esquire HIGHEST AVVO RATED
Douglas L. Kaune, Esquire HIGHLY AVVO RATED
And the entire team at the Unruh, Turner, Burke and Frees
Trust, Estate and Wealth Preservation Section
610-933-8069
P.S. The Emergency Update Plan appointments are limited so please book yours today if you are worried about this confusion or if you feel that your plan is out of date. The plan’s prices start at $600.00 and go up from there depending on your plan and it’s complexity. There is no charge for the additional appointment. And, at the end of the appointment you are quoted a flat fee and a fee to be paid only if another round of revisions is required. We hope that this helps you. Update Plan appointments can be made by calling 610-933-8069.
There is a lot happening in the normally calm, cool, and collected world of the estate tax, and estate planning. The Wall Street Journal Article on the latest failure of Congress to act on Federal Estate Tax issues actually called the situation “frenzied” and not without reason.
While we, as your advisers, are keeping our usual cool and focused demeanor, there are reasons to be cautious and to keep an eye on this situation if you have total assets (husband, wife or single person) of over one million dollars including your life insurance.
We are bringing you news and analysis as soon as it breaks and we have a chance to crunch the numbers, read the bills, and think about the unthinkable (or previously believed to be unthinkable) a year without the federal estate tax.
That’s right, Congress has fumbled the ball and an extension of the bill seems almost impossible at this point. But, many members are threatening to reenact the law after the holiday break and to have it apply retroactively to January 1, 2009.
There are a few unexpected consequences of the federal estate tax going away and this Wall Street Journal Article has a good quick review and a couple of important alerts.
Stay tuned for more news and information as it becomes available.
David M Frees III
610-933-8069
David Frees focuses his practice in the following areas of law: estate planning, estate administration, asset protection planning and wills, trusts, and related topics.
Frees is a Phoenixville lawyer, Malvern Lawyer, and West Chester Lawyer, with offices throughout Chester County, Pennsylvania.
The last minute attempts to extend the federal estate tax have failed. As a result, the impossible -no estate tax in 2010- now seems likely. According to the Wall Street Journal, Congress is considering a bill early in the new year, to apply the estate tax retroactively.
However, this current state of affairs leaves many Pennsylvania families without guidance on what to do with their estate planning, wills, and trusts, and with a profound sense of continued uncertainty. If you are concerned, that your will, trust, or other estate planning documents might no longer work as expected, then read on.
Frees has received AVVO
“At Unruh, Turner, Burke and Frees we are encouraging clients to do the most flexible will and trust planning but not to ignore this terrible situation created by Congress.” said David M. Frees, Chairman of the Trust, Estate, and Wealth Preservation Section of the firm.” Many people think that if the tax lapses as scheduled, that they can then gift the bulk of their assets without paying gift or estate tax. “That’s a mistake,” according to Frees and his partner Doug Kaune.
For starters, the estate tax may be applied retroactively. Secondly, there are still limits on what you can gift without paying a tax. Finally, there is a hidden and dirty little secret in the law that will take effect on January 1st.
According to Frees, “It may be, that Americans will lose the step up in basis that they have always gotten when they inherited property from an estate. For example, if Mom paid $5.00 per share but it was worth $20 per share at her death, your tax basis currently steps up to $20.00. If you sell the stock for $25 per share, you only pay capital gains tax on the $5 per share. Under the new system, you would pay capital gains tax on $20 per share.”
This means, that many more families and estates will pay capital gains taxes even if fewer pay estate taxes. “This is a backdoor tax on many American families with smaller estates who would otherwise never pay estate or capital gains taxes.”
If this sounds complex, it’s because it is. Don’t assume that there is nothing that you can do. Be proactive and update your estate planning now. While you mat have to adjust it later, you should have a plan that will work regardless of the tax law debacle.
“So, if you have a plan that is more than a few years old, if your estate (including life insurance) is over 1 million dollars, or you have a plan with federal estate tax planning trusts under your will you should consider reviewing your plan with counsel to build in more flexibility during these difficult times and until Congress eliminates some of these uncertainties.”
Unruh, Turner, Burke and Frees maintain law offices with lawyers practicing estate, trust, estate planning and probate law in Phoenixville, Malvern, and West Chester, Pennsylvania and serve all of Chester County, Montgomery County and Berks, Bucks, and Lancaster Counties.
Are you concerned that the failure of Congress to pass an extension of the federal estate tax law might mean that you have trusts, or wills that no longer work correctly?
David Frees, Doug Kaune and the lawyers of Unruh, Turner, Burke and Frees can be reached at 610-933-8069 or email Mr. Frees at dfrees@utbf.com. Mention this article to receive a discounted consultation or will review in light of these circumstances.
Please also leave your questions and comments below.
Forbes Magazine recently published an article listing eight reasons to update your will, trust, or estate plan despite the uncertainty of the federal estate tax. If you have been wondering, whether or not to wait until the dust settles on federal estate tax reform, then read this interesting piece.
And, if we do help you with your estate plan, and the law changes within a few weeks or even six months, then you will not pay for a second round of estate planning. We guarantee, that there will only be a small charge to re-execute your new wills.
So, if you need to revise, or update your wills because of a move, a death in the family, marriage, divorce, new children or grand children, or because of an inheritance, or other changes through time, then please call Mrs. Brownback, or Mrs. Fox at 610-933-8069 or email dfrees@utbf.com to make an appointment with me. If you mention this article, you will also receive a new CD we have produced on Enhanced Estate Planning to protect your children and grandchildren from divorce and lawsuits.
PA Estate Attorney: Qualified Disclaimers
David M. Frees III on 529 Plans
529 Plans come in many shapes, sizes, and colors. And, there is significant variation from state program to state program. If you would like to know the top five reasons to consider a 529 and get a great web based resource to help you to understand and to compare the different plans, then click here for my 529 Plan Article for Pennsylvania Residents.
The article reviews some of the estate planning, gift tax, income tax, and administrative issues involved with selecting a 529 plan.
Let us know your questions in the comments section.
David M. Frees III is a Pennsylvania probate, will, and trust attorney with offices located in West Chester, Malvern, and Phoenixville, Pennsylvania.
David Frees has an AVVO Rating of 9.8 and “Superb”
For a consultation to make sure that your estate planning documents are up to date, and coordinated with your 529 plans, call 610-933-8069. Mention this article to receive a valuable resource, our Enhanced Estate Planning CD.
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