Wealth Preservation, Trusts and Estates

It’s that time of year when our college aged children go back to college and we may not see them again until Thanksgiving.  But, they might need our help inn between, and without a power of attorney that might mean trouble.  We tend to think that powers of attorney are for the elderly.  And, it’s true that a well drafted and customized power of attorney can help us to manage a parent or grandparent’s affairs, and to make health care decisions, to get medical records and to generally get done what needs to get done.

But, when a college student needs help we are often powerless to help – even as parents.  Once your child turns 18, you need a HIPPA authorization to talk with their doctor or to get copies of their medical records.  Want to see their grades?  Well, you’d better be on good terms with that college aged student because without their permission, or  a power of attorney you’re not getting a copy from the school. And no, just because you pay the tuition doesn’t override the school’s privacy policy.

Have a student that needs you to do banking while they are away at school?  Again, you might need a power of attorney.

So, if you need a HIPPA authorization or a power of attorney to cover your ability to help or to be directly involved if there is a medical or other emergency what is a parent to do?

First, your son or daughter is now an adult.  Talk to them like one.  Explain that in the event they have a medical emergency or need you to help with finances, then you’ll need a HIPPA authorization and a medical power of attorney and possible a financial power of attorney.  They should also know, that such documents can be revoked at any time, so they remain in charge of their own affairs. You should also agree in advance how and why such documents would be used.

Will this be expensive?  Probably not. Most banks and brokerage firms offer their own limited powers of attorney for individual accounts and these are free.  Many law firms offer a free consultation for family members of their clients or for new clients and many also offer discounted fees for college students or family members of their clients.  Make sure that the discounted fees will include a durable or limited power of attorney, a medical power of attorney, and a living will (if desired) and a HIPPA authorization.  With these documents, you’ll have the ability to get grades, deal with financial emergencies or ordinary transactions, and with medical issues including emergencies.

Without them, you might be shut out of certain information and decision making pending an expensive guardianship proceeding in court just to get certain powers and information that would be automatic with the above estate planning.

Finally, it’s not too early for a young adult to start thinking about a basic will.  This summer I had a number of young clients come to see me after their parents’ appointments to do wills before they went back to school.  Mention it for your college aged student to consider. By: Attorney David M Frees III

For information our Family Consultation Plans(TM) and Family Estate Planning Clinics(TM) call David M. Frees III at 610-933-8069 or email David at dfrees@utbf.com or his assistant Donna at dbrownback@utbf.com

Getting One From Your Kids Might Not Be A Bad idea Either

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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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No Will? That’s Called Intestacy.
But Don’t Worry.
The State Of Pennsylvania Has Done One For You.
How Do You Think That Will Work?

If you have a will and it’s more than a few years old, you may have to have it reviewed because of the volatile situation with the estate tax. However, if you have never done a will it may be time. Most people don’t realize, that when they fail to create and to properly execute a will, that the state of Pennsylvania will do one for you.

The failure to have a properly executed and legal will at the time of death makes you INTESTATE under Pennsylvania law. And, if you die intestate, the state automatically answers the following questions:

1) Who gets your estate – it may not be who you think.

2) When kids get the assets. Answer: 18. That doesn’t sound good does it?

3) Who takes care of the kids – a court appointed guardian chosen by the judge (think legal fees too); and

4) Who manages the kids money – again, a court appointed guardian but only until age 18;

5) Who gets to be the administrator (the executor under a will) – and there are classes of people who may not be qualified and who might fight about who gets to do it (again, think legal fees and administrator fees).

If you’d rather be in control of these and many other issues, thn completing and executing a valid will and/or will and trust is essential.

That process can be easy and inexpensive when compared to the high costs that often result from intestacy.

For a limited time, Unruh, Turner, Burke and Frees are offering a free will review or, if you have never had a valid will or trust, a free will consultation. And while there would be fees for completing an estate plan (including a will, power -of – attorney and medical power as well as a living will) there is no charge for the review or consult and there is no obligation on your part while this offer lasts.

To claim a free will review or a free will consult call 610-933-8069 and mention offer code: DaveFreesWillReview. Donna, Beth, or Denise will be happy to schedule you. (more…)

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When Do I Show My Estate Planning Documents To My Family?
By: David M. Frees III

The question of when, or even whether or not, to show adult or mature children your will or estate planning documents has no easy answer.

The best answer is that it depends.

In this, and a series of brief up coming posts, we’ll explore that question and the pros and cons of each option. In my experience (over 25 years of drafting estate planning documents for families and advising families at all levels of affluence), the answer varies depending on your personal circumstances and the particular documents. My answer, for example about when and how to share a broad durable power of attorney may be different than my answer about sharing and discussing a living will and medical power of attorney.

We will examine when to share the will, when to give an agent a copy of a medical or durable power of attorney, and when to share trusts and other documents.

Today we start with your question about when to share a will with family members.

In the case of wills, many clients never share the particulars of the will. They realize, that this document may change trough time and that who gets what assets may also change. Since no one really needs to see the document before your death, it may be enough to make sure that the family knows how to get your original will if you pass away. If you have only one or two children, and they are both appointed as co-executors, sharing that fact with them may also be prudent.

My clients who do not share the specifics of their wills, or copies of the documents, usually have a memo, or a binder. This documents contains copis of the necessary documents (in case of emergency) as well as instructions, locations or originals, passwords, and related information such as who the accountants, lawyers, insurance and financial advisers are and how to contact them.

More on these issues to come.

David M. Frees III is a lawyer with over 24 years of advising clients in the areas of trusts, estates, estate planning, and related legal matters. He has law offices in Malvern, Phoenixville, and West Chester and serves clients throughout Pennsylvania including Exton, Devon, Wayne, Chester Springs, Ardmore, Berwyn and many surrounding communities.

For a complimentary consultation call 610-933-8069 and mention PAESTATEPLANNERS as the code for your free consult.

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We prepare special needs trusts for beneficiaries to help insure the recipient of inherited or gifted assets can continue to qualify for government or private benefits. Clients who are creating these

trusts often struggle to decide who they should appoint as trustee of the trust. We want to make sure that we select the correct person or entity because the trustee will make investment and distribution decisions that will impact the special needs beneficiary and remainder beneficiaries alike.

We can never be sure about how a trustee will do their job for years or decades to come. As a result, many clients choose to have a Trust Protector appointed. The Trust Protector oversees the actions of the trustee to make sure the trustee is doing a good job. Read the attached article to review some of the issues concerning the appointment of a special needs trust trustee and how the appointment of a Trust Protector can help insure a successful special needs trust.

By: Douglas L. Kaune, Esquire Partner with the law firm of Unruh, Turner, Burke & Frees, P.C.
Having offices in Phoenixville, West Chester & Malvern. Serving Chester, Delaware, Montgomery Bucks, Berks and Philadelphia Counties and the surrounding towns and municipalities. Please contact Doug with your estate planning and elder law questions and to schedule a consultation to review your particular case. PH (610) 933-8069 or dkaune@utbf.com.

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Federal Estate Tax Reform and Certainty Is Needed
by: David M. Frees III, Esquire

Congress failed, at the end of the year to enact any estate tax reform. As a result, the tax was eliminated for a one year period. This might seem like a blessing, but currently, many people’s documents no longer function as they were intended to work. To add insult to injury, in just a few more months it is scheduled to return with a vengeance.

On January 1, 2011, absent congressional action, the tax will return and American tax payers will only be able to shelter one million dollars. A couple could, with careful planning, shelter up to two million dollars but that would require the use of trusts prepared during the lifetime of each spouse. And, as if that is not bad enough, the tax rate is going up to a maximum rate of 55%.

However, since this tax includes retirement accounts, the value of a house and business, and life insurance proceeds, the one million dollars may not go as far as it might otherwise.

We need and deserve clarity on this issue.

Yet, just a few weeks ago, negotiations between Republicans and Democrats broke down and Estate Tax reform disappeared from the legislative agenda.

This is not a political or partisan column. And, for my money, both parties have failed to deal effectively with this issue. I simply believe that Congress owes certainty and clarity to the American people. Right now, careful and rational estate and tax planning for families with substantial assets is almost impossible.

Clarity is essential and now requires congressional action.

Here is video of a recent statement on the Senate floor.

David M. Frees, III
is an attorney focusing his practice in the areas of trusts, estates, probate, and estate and asset protection planning. His firm, Unruh, Turner, Burke and Frees also offers elder law planning for families facing nursing home care and the related issues.

The firm maintains law offices that serve many local communities including Devon, Wayne, Malvern, Phoenixville and West Chester.

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David M. Frees III, Esquire on The Ten Year GRAT

The Houses Passes A New 10 Year GRAT Requirement

On June 15th, the US House passed H.R. 5486 (a “jobs bill”) that contained a requirement that GRATS (Grantor Retained Annuity Trusts) be for a term of at least 10 years.

As readers know, we have been promoting and using GRATs for many clients as a way or moving large increases in wealth without triggering significant gift taxes.

GRATs are often used by clients with rapidly rising stock values, real estate, or other assets with a high probability of significant growth.

The government now views this technique as being just too good for the tax payer and is attempting to restrict it’s use to raise additional revenue.

The main purpose of H.R. 5486 is not, of course, to modify the GRAT rules. It is instead intended to create small business tax relief.

However, as mentioned, GRATs have proven to be a highly efficient technique for transferring wealth while minimizing gift taxes, provided that the grantor survives the GRAT term and the trust assets do not depreciate in value. And, taxpayers have become skilled at maximizing the benefit of this technique, by minimizing the term of the GRAT (thus reducing the risk of the grantor’s death during the GRAT term). Many clients use a term as short as two years.

Under the current bill, now also before the Senate, the minimum term would be ten years. This, of course increases the risk that the grantor might die during the term and the benefit to the family would be lost.

So, while the GRAT will remain a valuable planning tool. The days of the short term GRAT might be limited. If you find yourself moving toward a public offering, a land development plan or some other planning that might produce large value increases, be sure to consult your legal and tax advisers about all of your options in the face of this pending legislation and the appearance that it will pass both houses.

David Frees III, Esquire

David Frees writes on GRATs and other sophisticated estate planning techniques and actively helps affluent families and individuals in Pennsylvania to implement sophisticated estate and estate tax planning.

For more information on GRATs and related estate and asset protection planning call 610-933-8069. Law offices in Phoenixville, Malvern, and West Chester Pennsylvania.

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What Is A Trust Protector and Why You Might Need One ?
By: David M. Frees III Esq.
Unruh, Turner, Burke and Frees

There is a new sheriff in town and the sheriff’s name is the “Trust Protector.” By naming a trust protector, you can select a person, in advance, who can make hard decisions, change the terms of the trust (within certain preset limits and for certain purposes), and who can hire and fire trustees.

The job of the trust protector varies significantly depending on the nature and purpose of the trust. However, there are certain jobs that you may not want to assign to a trustee or a beneficiary and they can instead be assigned to a specific person named as the protector.

For example, it may not be desirable for a child (even an adult child) to be able to fire and replace trustees. However, if a trustee is not performing, it may be important for them to be discharged and replaced without the need and expense of court petitions. So what can you do? If you plan in advance, in steps the trust protector who can make these decisions.

In many cases, you can draft a trust to create the role of trust protector and then give that person the right to review financial transactions, to discharge and replace trustees, to resolve disputes, and more.
This can save money, protect your beneficiaries, limit court intervention, and make sure that the assets are not taxed again in a child’s estate because he or she had too much power over the trust. Trust protectors can also make sure that a corporate trustee’s fees are reasonable and their performance is effective.

For more information on trust protectors and specifically:

How, when and why to create a trust protector,
Who should act as a trust protector, (often lawyers, CPAs and other independent and trusted advisers)
The pros and cons of a trust protector, and
Why the trust protector is more important than ever in a changing tax environment,

please come back to this blog or sign up for our RSS feed to be automatically notified when we publish new articles on this topic.

And, for more information on trusts and trust planning please click here to order our Enhanced Estate Planning workbook.

David M. Frees III
Unruh, Turner, Burke and Frees has law offices of it’s Trust, Estate, and Wealth Preservation Section in Malvern, West Chester and Phoenixville, Pennsylvania.

These offices provide legal services to clients in the greater Philadelphia area including Wayne, Devon, Berwyn, Malvern, Phoenixville, Exton, and many other local communities.

For a complimentary consultation please call 610-933-8069 and mention PAESTAEPLANNERS for your free estate planning materials and resources.

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Gift Tax Returns Are Due Now!

Gift tax returns are due by April 15th of the year following the gift. You must file a return if you have made a gift of a hard to value asset such as real estate or an interest in a closely held business. You may also need to file a gift tax return if your total gifts to any one person of more than $13,000.00. However, you might not owe any taxes if you’re married and your spouse will “split” the gift but you still have to file a return.

So, if you’re just reading this, in April, you may only have a few days or hours left.

That’s the bad news. However, the good news is that like the individual income tax return, you can file an extension to file the gift tax return and can file up until April.

Click here to link to the IRS for all forms and instructions.

Click here to download the gift tax return form 709 from my website www.PaEstatePlanners.com.

Click here to download the extension form 8892 from my website www.PaEstatePlanners.com

Note: An extension to file does not mean that payment is not due.

I hope that this is helpful. If you need help filing a return for a trust, or for a gift tax return, please call Donna, Denise, or Beth at 610-933-8069 and mention code: David Frees or 2010TAXES for a appointment with one of our tax lawyers.

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Has it been a while since you last completed or updated your will or trust?

Are you a Pennsylvania resident and would you like to get a complimentary review of your existing will, trust, living will, power of attorney and medical power of attorney?

There is no cost for this service and you have no obligation to hire the firm to make any changes or updates.

At Unruh, Turner, Burke and Frees we are providing a Free Will And Trust Review for existing clients and for non clients who are area residents near our offices in Malvern, Phoenixville and West Chester.

If you are one of our clients simply call 610-933-8069 before March 30th 2010 to be scheduled for this complimentary service and mention this code: FREEWILLREVIEW. That is just something that we do for our clients.

If you are not a current client, call today and if you are one of the first twenty-five to call, you can get one of the remaining twenty-five appointments scheduled for our two Will and Trust Review days in April and May. Just mention this code : NONCLIENTWILLREVIEW to get your free appointment.

Why would a law firm provide this service for free?

Well, that’s a fair question. In the Trust, Estate, and Wealth Preservation Section of Unruh, Turner, Burke and Frees, all we do is estate and trust planning, elder law, and we help executors and trustees who have had a loved one die.

And, we have local offices in Phoenixville, Malvern, and West Chester that serve many local communities. David Frees, Chairman of the Trust and Estate Section has been serving local communities for over 25 years and his partner Doulas L. Kaune,  and our team of paralegals have been collectivly serving our local clients and families for over thirty years.
Our reputation is built on doing a great job and being well know for doing this work.

Many clients are in fact surprised that they can get estate planning work done by a firm that focuses on that work for less than some trust mills or general practice firms.

And, frankly, we think that many of our clients and others will need updates due to so many changes in the law and in their personal circumstances. So, when we do a will or trust review for free, many existing clients and new clients hire us or pass the word to friends and family memebers.

If you don’t need any changes we’ll tell you and you can rest easy, knowing that your plan is still good.

But, if you need changes, we are available to help and we always quote a fixed flat fee, in advance of any work you tell us to do for you or a family member.

If you don’t like the fee, there is no obligation. But, we think that you will.

Still not sure if you need this complimentary review?

Here are the five questions that you need to think about:

1) Is your will or trust older than five years old?

2) Have your circumstances changed since you last updated your will or trust ?
Do you have new children or grandchildren?
Your heirs are now old enough that they don’t need their inheritance in trust?
Are your assets worth much more or much less than they were when you did your planning?

3) Do you need to change your guardians for children, executors, or trustees?

4) Do you still need federal estate tax planning or can your documents be simplified? In the alternative, since the estate tax is set to drop back to a one million dollar exemption do you now need federal estate tax planning or a flexible disclaimer will or trust that works either way?

5) Was your will or trust prepared by a non lawyer or by a trust mill that has since been investigated by the attorney general for using lawyers that never saw the clients? These wills and trusts often look great and cost a great deal ($1,500 – $5,000) but are often too complex and not customized to your situation. These trusts can actually cost your heirs money but can often be reviked and/or repaired easily and can be replaced with amended trusts that actually do what you want and need without the extra costs and complexity of the older trusts.

After you review these questions if you feel that you want to take advantage of our complimentary will and trust review, call 610-933-8069 to get your spot before there are all booked.
If you’re a client, mention Code: FreeWillReview and if you’re not yet a client mention code: NonClientwillreview

Donna Brownback, Denise Fox and Beth McNulty are all available at 610-933-8069 to help get you one of the spots.

We look forward to seeing you and to reviewing your plan.

P.S. What will you get? When you call for an appointment, if you get one, you will also be sent an Estate Planning Questionnaire. In addition, clients will also receive a free report that helps them to choose executors and trustees. It is important to complete the questionnaire (as much as you can) and to bring it with you to your appointment. This will help the lawyers to make sure that your documents are coordinated with your assets (a common flaw in many plans) and that you have the right type of trusts or other techniques given your level of exposure to estate and inheritance taxes.

P.P.S. Want to get a child or grandchild to do their own will, trust, or estate planning? Learn more about our GOLD Client Plan.

If you do ever hire the firm, or if you’re an existing client, you can upgrade at anytime to our gold plan for a small fee. Being a Gold client allows you to get an additional ten percent discount on your own planning, and you will receive two $250.00 gift certificates that you can give to friends or family members for their own planning. These can be used separately by two people or can be combined and used by one family member or friend even if that discounts their planning to zero. Please note, that Pennsylvania lawyers are ethically restricted when one client is paying for another client’s legal fees. There must be full disclosure both on the gift certificate and at the time of the appointment, and that must be agreeable to the party.

P.P.P.S. What kind of lawyer will I get for free? Again, the free part is the will or trust review. And, you’ll get the help of very experienced lawyers. If you need any work and hire the firm you’ll get the same experienced lawyers. And, because we believe that our gift to the communities and people in the towns where we work, and our commitment to our clients is good for you and for us, (some of you might need revised or updated or new planning and might hire us) you’ll get our most experienced lawyers who practice in the areas of trusts, estates, elder law, and asset protection. Your appointment will be with David M. Frees III, Esquire, (David Frees has AVVO’s highest rating, he is a Superlawyer and has been the Top Trust and Estate Lawyer in Main Line Today Magazine), Douglas L. Kaune Esquire, (Douglas has focuses his practice on trust and estate planning and he is Chairman of the Elderlaw Section of Unruh, Turner, Burke and Frees).

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