Wealth Preservation, Trusts and Estates

If you are confused about why Congress allowed the federal estate tax to lapse and then failed to enact a new law – leaving Americans in an estate planning limbo, then you are not alone. Most political commentators, trust and estate lawyer, and even the past federal reserve chairman Paul Volcker have weighed in on this issue by condemning congressional inaction.

Bur Volcker recently said what many Americans have been thinking – that this situation is “crazy.” For more on Volcker’s remarks on Congress and the federal estate tax, click here.

So what is a confused citizen to do? Well first, read a few articles on the federal estate tax so that you are more familiar with this crazy situation. Then, you’ll probably want to review your existing plan with your lawyer to make sure that it works now -when there is no tax, as well as next year when the tax returns with a vengeance.

Being an informed consumer of legal, tax, and estate planning advice is more important than ever.

David M Frees III
Chairman: Trust, Estates, and Wealth Preservation Section
Unruh, Turner, Burke and Frees
Malvern, Phoenixville, and West Chester Pennsylvania

610-933-8069

If you are a Pennsylvania resident and want to update your estate planning, protect your heirs, or deal with the uncertainty of the federal estate tax please call 610-933-8069 and mention code FREES2010 for a complimentary phone or in person consultation.

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By: David Frees
Wills, Trusts, Estate and Asset Protection Planning

Generally, the rule is that when you create a trust, and keep the right to receive assets from that trust, the trust can be reached in a lawsuit against you and will be taxed in your estate.

In recent years, several states, including Delaware, Nevada and Alaska have passed statutes purporting to allow you do get both tax and creditor protection without having to move assets off shore.

And, while these trusts have a number of restrictions, and downsides, the IRS has now issues a PLR – private letter ruling on these important issues related to an Alaska trust.

For more information on the IRS and asset protection trusts, prepared by David Frees click here.

For an appointment ranging from a simple will review and update to the more complex issues of trusts and estate planning, call David Frees’ office at 610-933-8069.

Mention this code (DavidFrees2010) if you are a Pennsylvania resident and receive a free initial consultation by phone or in person. Call 610-933-8069.

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

These offices service West Chester, Chester Springs, Exton, Phoenixville, Spring City, Collegeville, Downingtown, Malvern, Devon, Berwyn, and many surrounding communities.

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By David Frees Law Office: Phoenixville, Malvern and West Chester

You think retroactive taxation for estate tax purposes is a problem?

Well, according to Russia, we have bigger problems…. click here to read more about estate planning and the pending fall of the United States governmentt.

If you need more information about planning your estate or acting as a trustee or executor, we have many free resources. Appointments are also available with David Frees by contacting Beth MacNulty, Donna Brownback, or Denise Fox at 610-933-8069.

Attorney David Frees can also be reached by email at dfrees@utbf.com

Mention this blog to get a free report at the time of your appointment or to request that a free report on executors or estate planning be sent to you. You can also request these reports on line at www.PaEstatePlanners.com

David Frees has attained AVVO’s highest possible lawyer rating.

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By: Pennsylvania Trust and Estate Attorney – David M. Frees III

Many wills and trusts are drafted to leave the maximum amount that can pass tax free to children or other heirs and the balance to the spouse. However, thanks to the failure of Congress to act, the estate tax has lapsed effective January 1, 2010.

This type of planning is especially common with our wealthy clients and also very common in cases where clients are in second marriages with children from prior marriages.

However, you should be sure to check your estate planning documents given this unexpected change. If the formula results in either too much going into trust, or in disinheriting a spouse, this will create undesirable results, and may result in numerous will challenges.

Click here to see the Wall Street Journal review of this important estate tax issue for married couples.

David M. Frees III - Trust, Estate and Asset Protection Planning Lawyer*
610-933-8069

* Note, that in Pennsylvania, there are no professional designations for lawyers. The use of the expression trust lawyer or related topics merely indicates that the lawyer or attorney focuses his or her practice primarily in those areas of law. As a consumer, it is important to ascertain the level of experience that the particular attorney has in any area of law including trust and estate planning, asset protection, and probate law, and estate and trust administration.

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Click here to read a recent New York Times Opinion piece on the mess in the federal estate tax situation.

David M. Frees III Chairs the Trust, Estate and Wealth Preservation Section of Unruh, Turner, Burke and Frees

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

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David M. Frees III It’s that time of year. New Years Eve approaches and it is time to make decisions, set new goals, and to make your new year’s resolutions. And, this year, more than ever, estate planning, updating your will, trust, and power of attorney should top the list.

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.

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I just posted a quick review of some of my analysis of this problem, as well as the articles by Forbes, The Wall Street Journal, and the Washington Post. Just click here for links to all of this material on the lapse 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

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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.

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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.

David M. Frees III

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Are You Remarried or Contemplating Remarriage With Children From A Prior Marriage? The Prenuptial and Postnuptial agreements can be the solution to a tricky problem.
By: David M. Frees III
Tiger Woods situation has put the prenuptial agreement back in the news. Following Tiger’s admission of his “transgressions,” many news sources have reported that Tiger and the current Mrs. Woods are renegotiating their prenuptial agreement.

So what does Tiger Wood’s dilemma have to do with prenuptial agreements in Pennsylvania and the use of such agreements in estate planning?

Well, first and foremost, the story reminds me that such premarital agreements are valid and enforceable under Pennsylvania law. And, while the current renegotiation of the pre-nup by Tiger Woods and his wife revolves around divorce, it is important to remember, that prenuptial agreements are a powerful tool for avoiding disputes when you are in or considering are second or third marriage and/or have children from multiple marriages. In short, prenuptial agreements need not focus just on divorce, but can also set forth the parties’ agreements on estate planning so that expensive and destructive family disputes can be avoided.

Many married people want to leave their assets outright to one another but also want to ensure that the children of a prior marriage get some benefit from the estate when the surviving spouse passes. However, if you own all of your assets jointly with your husband or wife, they will transfer automatically to him or her. Likewise, if you have a simple will, and your spouse receives everything, he or she is free to dispose of those assets in any way they desire. And, they can refuse to give any of those assets to your children at death.

So, what are you going to do? If you are remarried or planning to remarry and have children or heirs that you want to protect in addition to your current spouse, then careful planning using a prenuptual agreement or post nup for estate planning purposes and not just to cover the divorce is a major benefit.

The parties agree on a plan in advance. Then, by using the rules of the pre-nip or post-nup and some insurance and/or other trust arrangements you can protect your new spouse and the heirs you want to benefit after the spouse passes.

Prenuptial agreements are not just for divorce. They are also a valuable state planning tool.

Stay tuned for more on prenuptial and postnuptial agreements in estate planning.

David M. Frees III, Esquire is an estate planning, probate, and trust lawyer in Pennsylvania.
The firm’s offices are located in Malvern, Phoenixville, and West Chester

Are you remarried or contemplating remarriage with children or others heirs that you would like too protect? If you need a consultation about a prenuptial or post-nup agreemnt please call Donna Brownback or Denise Fox at 610-933-8069 for an appointment with David M. Frees III. Mention this article to receive additional articles and information on estate planning strategies and tactics for remarriage.

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