Wealth Preservation, Trusts and Estates

The Grantor Retained Annuity Trust (GRAT) has

been an excellent and widely used federal estate tax savings tool.  However, President Obama took aim at the GRAT in his 2011 budget proposals.  Additionally, the House has included provisions targeting short-term and rolling GRAT planning tools in legislation that has passed at that level.  Although that particular House legislation has not made it through Senate, there is a significant amount of discussion and proposed legislation in the Senate that would require a GRAT to be for a term no less than 10 years.  This would not eliminate the GRAT as a planning tool, but would curb its use.   Read this recent Forbes article that outlines how the GRAT is used, how it is being attacked and how it will be used into the future.

Keep in mind that it is likely that the Federal Estate Tax will return in 2011 and we will need every resource available to help limit what could be a tax in excess of 45% for every dollar over $1,000,000 in an estate.  We encourage all clients and friends to keep their out for the final legislation of the federal estate tax system and to be ready to update estate plans accordingly.

Doug is a Partner with Unruh, Turner, Burke & Frees, P.C. which is a full service law firm with offices located in Malvern, Phoenixville and West Chester, PA. Doug can be reached at 610 933 8069 or at dkaune@utbf.com. The Law Practice serves Chester County, Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Pennsylvania (PA).

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If you have children between the ages of 18 and thirty, chances are that they don’t have a will.  And, there are many reasons why that might be a bad idea.  For example, many of our adult children have children of their own but have not done a will to name a guardian, executor and trustee to care for those children, or their finances. In addition, if you have left a child or your children assets outright (and not in trust) then that child’s will may control what happens to those assets rather than your own will.  For more information on when, why, and how to get your adult children to do a will, trust, or power of attorney, visit out new article on Estate Planning, Wills and Trusts for Children at http://www.PaEstatePlanners.com.

For more information on scheduling a family will clinic to update your own planning and to get your children to complete or update their planning call 610-933-8069 and mention the offer code:  FAMILY WILL REVIEW to qualify for a free review.

David Frees is Chairman of the Unruh, Turner, Burke and Frees Trust Estate and Wealth Preservation Section

David and the firm maintain law offices in Malvern, Phoenixville, and West Chester Pennsylvania which serve

the Main Line, and many surrounding communities such as Devon, Exton, West Chester, Ardmore and others.

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I know that the title to this article: “Resources for Building and Protecting Your Estate and Your Estate Plan” is both long (imagine that, a long winded lawyer) and apparently silly.

How do I know that it sounded silly?

This is a suggestion for a resource sent to me by one of my sons when he read the draft of the title-

“Get a battle team then when hordes of marauding lawyers attempt to raid your party you can fight them with karate and such techniques.”

Well Josh, true enough. But I really do have some great resources for the readers that don’t maintain “battle teams.” but who want to avoid financial fraud and marauding hoards of lawyers.

I have always maintained, that an estate plan that focuses only on what happens to your assets when you die is, while important, a boring estate plan and one not likely to be of much help to you and your family while you’re alive.

For that reason, many of the resources and ideas we provide are designed not only to help you with your will and trust, but also to help you to build, protect and to maintain your assets and your lifestyle.

In that vein, I recently came across a new government blog site that seems to have some great information for consumers.

In this installment, I have selected a few resources for you related to avoiding financial fraud.

Just click the links below for more on each topic related to protecting yourself from financial fraud:

Notices and information about types of fraud

Protecting yourself from identity fraud

Protecting Yourself from tax fraud and other types of fraud

How to report fraud

Keep an eye out for more installments of resources to build and protect your assets and your estate plan right now.

David M Frees III is an attorney with law offices in Phoenixville, Malvern, and West Chester Pennsylvania serving the communities of the Main Line as well as the West Chester, Exton, Downingtown and surrounding areas.

Frees is a partner of and Chairs the Trust, Estate, and Wealth Preservation Section of Unruh, Turner, Burke and Frees – Telephone and in person consultations are available by calling 610-933-8069.

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Local attorneys David M Frees III and Douglas L. Kaune, both of Unruh, Turner, Burke and Frees are proud to announce their sponsorship of Phoenixville’s first ever TEDx conference to be held this September at the Colonial Theater on Bridge Street in Phoenixville, Pennsylvania.

“I am a big fan of the TED Conference and the speakers at TED run the gamut in terms of topics, skills and ideas. So it’s very exciting to be a part of the great team of people and sponsors helping to bring the local version of TED to Phoenixvile.” said David Frees a local lawyer. “TEDx isn’t about law or legal issues but it’s a great event and fantastic for the Phoenixville area. And we try to support the Borough of Phoenixville and many of the projects that we believe improve the quality of life in town.”

For tickets and information click this image or the links below.

To get more informaion on TED and specifically, on the local TEDx programs to be held in Phoeniville click the links below:

TED CONFERENCE VIDEOS

TEDx in PHOENIXVILLE

For more information you can also call the Colonial Theater at 610-917-1228 or the law offices of Unruh, Turner, Burke and Frees at 610-933-8069. Our client relations manager, Beth McNulty will be happy to get you additional information about the conference.

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No Federal Estate Tax Answers forthcoming this Summer. By: Douglas L. Kaune, Esq.
Congress is entering its August recess and there has been no progress made on the topic of Estate

Tax Reform. Analysts are clearly thinking that the Estate Tax issue will not be addressed until the Fall or later. Interestingly, everyone, including members of Congress, attorneys and financial advisers, agrees that it is unfair to the American tax payer to be without a solid tax law upon which to base their estate planning. Despite this universal recognition, the lawmakers are not rushing to reach a resolution. This Investment News article is helpful in outlining the Congressional time line leading to the end of the year.

Contact Douglas L. Kaune at 610-933 8069 or dkaune@utbf.com to review your estate plan in light of the changing federal estate tax landscape.
Doug is a Partner with Unruh, Turner, Burke & Frees, P.C. which is a full service law firm with offices located in Malvern, Phoenixville and West Chester and also serving Philadelphia and other towns in Chester County, Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Pennsylvania (PA).

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Family Limited Partnerships, The IRS, and Your Estate Planning
By: David M. Frees III, Esq.

Many affluent families use family limited partnerships as part of their business succession planning, business continuity plans, and as a legitimate part of estate planning.

Limited partnerships allow a person or family own owns real estate, a family business, or even concentrated positions of publicly traded stock companies to accomplish a number of important things. By using a FLP (Family Limited Partnership) the family can divide the ownership of the company or assets from the management. So, a senior generation can continue to operate the business and mentor the next generation while allowing growth in the value of the company to occur in the children’s names.

The interests in FLPs are easy to divide and different family members can own different fractions of the total asset base or business.

The FLP can help to prevent a dissolution of the company upon the death of a senior family member and can provide for continuity of management.

And, when done properly, and when carefully documented, the FLP structure can result in a diminished value of the gift to children or grandchildren.

FLPs can be used in conjunction with both trusts created during your lifetime, or under a will and can also offer some significant asset protection.

The new York Times recently published a great overview of the pros (some of the benefits mentioned above), the cons (IRS scrutiny for one), and what to do to make sure that the FLP works as intended.

Click here to read this great NY TIMES article on Limited Partnerships and the IRS.

Unruh, Turner, Burke and Frees maintain law offices in Phoenixville, Malvern, and West Chester, Pennsylvania.

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