Wealth Preservation, Trusts and Estates

Avoiding Trustee Mistakes - David M. Frees III

How To Avoid The Most Common Mistakes Trustees Make

Failing To Communicate Properly

by: Pennsylvania Attorney David M. Frees III

You have heard that communication is vital in marriage and communication is important with your children but communication is also critical in trust administration.

As a trustee to avoid unnecesary hostility from family and beneficiaries communicate with them. It is not only important to keep the beneficiaries informed it may also limit your liability and limit the ability to be sued.

Read this article about the mistake many trustees make of failing to communicate properly and how you can take advantage of of keeping the beneficiaries informed.

See all ten of our articles on How To Avoid The Most Common Mistakes Trustees Make:

Avoiding Trustee Mistakes No. 1:  Trustees Failing To Understand The Trust Language

Avoiding Trustee Mistakes No. 2: Trustees In Trouble  Making Early Distributions

Avoiding Trustee Mistakes No. 3: Trustees Failing To Follow The Prudent Investor Rule

Avoiding Trustee Mistakes No. 4: Trustees Failing To Follow The Uniform Trust Act

Avoiding Trustee Mistakes No. 5: Trustees Failing to Follow The Principle And Income Act

Avoiding Trustee Mistakes No. 6: Trustees Failing to Communicate Properly

Avoiding Trustee Mistakes No. 7:  Failing to Properly Reform, Amend, or Terminate

Avoiding Trustee Mistakes No. 8: Failing to File Tax Returns Or To Seek Professional Assistance

Avoiding Trustee Mistakes No. 9: Failing To Understand The Role Of Multiple Trustees

Avoiding Trustee Mistakes No. 10: Trustees Failing To Do The Job

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Avoiding Trustee Mistakes - David M. Frees III

How To Avoid The Most Common Mistakes Trustees Make

Failing To Follow The Principle And Income Act

by: Pennsylvania Attorney David M. Frees III

As a Pennsylvania trustee what investment strategy should you follow?

Is a “unitrust” right for you?

A mistake that many Pennsylvania trustees make is not understanding the rules governing trusts such as the Principle and Income Act.

The Principle and Income Act, the Uniform Trust Act, the Prudent Investor Rule, and many other regulations are rules that must be followed by a trustee.

As a trustee if you fail to understand, comply, utilize these rules and regulations you are setting yourself up for headaches, personal liability, and lawsuits.

Learn about the laws that govern trusts and the tools you can utilize as a trustee to administer the trust.

See all ten of our articles on How To Avoid The Most Common Mistakes Trustees Make:

Avoiding Trustee Mistakes No. 1:  Trustees Failing To Understand The Trust Language

Avoiding Trustee Mistakes No. 2: Trustees In Trouble  Making Early Distributions

Avoiding Trustee Mistakes No. 3: Trustees Failing To Follow The Prudent Investor Rule

Avoiding Trustee Mistakes No. 4: Trustees Failing To Follow The Uniform Trust Act

Avoiding Trustee Mistakes No. 5: Trustees Failing to Follow The Principle And Income Act

Avoiding Trustee Mistakes No. 6: Trustees Failing to Communicate Properly

Avoiding Trustee Mistakes No. 7:  Failing to Properly Reform, Amend, or Terminate

Avoiding Trustee Mistakes No. 8: Failing to File Tax Returns Or To Seek Professional Assistance

Avoiding Trustee Mistakes No. 9: Failing To Understand The Role Of Multiple Trustees

Avoiding Trustee Mistakes No. 10: Trustees Failing To Do The Job

Call David Frees for trustee consultation to avoid liability as trustee of a Pennsylvania trust.

Offices are located in Malvern, Phoenixville, and West Chester serving the Main Line, Exton, Chester County and surrounding counties.

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Avoiding Trustee Mistakes - David M. Frees III

How To Avoid The Most Common Mistakes Trustees Make

Failing To Follow The Uniform Trust Act

by: Pennsylvania Attorney David M. Frees III

The Pennsylvania Uniform Trust Act has mandatory  requirements for the trusts creation, termination, modification among others. It is important to follow all of the rules and regulations as a trustee so you do not set yourself up to be held personally liable or to get sued.

So if you are a trustee read this brief article on the Pennsylvania Uniform Trust Act to avoid personal liability and lawsuits.

See all ten of our articles on How To Avoid The Most Common Mistakes Trustees Make:

Avoiding Trustee Mistakes No. 1:  Trustees Failing To Understand The Trust Language

Avoiding Trustee Mistakes No. 2: Trustees In Trouble  Making Early Distributions

Avoiding Trustee Mistakes No. 3: Trustees Failing To Follow The Prudent Investor Rule

Avoiding Trustee Mistakes No. 4: Trustees Failing To Follow The Uniform Trust Act

Avoiding Trustee Mistakes No. 5: Trustees Failing to Follow The Principle And Income Act

Avoiding Trustee Mistakes No. 6: Trustees Failing to Communicate Properly

Avoiding Trustee Mistakes No. 7:  Failing to Properly Reform, Amend, or Terminate

Avoiding Trustee Mistakes No. 8: Failing to File Tax Returns Or To Seek Professional Assistance

Avoiding Trustee Mistakes No. 9: Failing To Understand The Role Of Multiple Trustees

Avoiding Trustee Mistakes No. 10: Trustees Failing To Do The Job

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Avoiding Trustee Mistakes - David M. Frees III

How To Avoid The Most Common Mistakes Trustees Make

Failing To Follow The Prudent Investor Rule

by: Pennsylvania Attorney David M. Frees III

Are you a trustee of a Pennsylvania trust?

Do you want to avoid personal liability and lawsuits?

If you answered yes to either of these questions you will want to read the series of brief articles for Pennsylvania trustees on the Most common Mistakes that Pennsylvania Trustees Make And How To Avoid Them.

Too many trustees have been sued for failing to properly administer or invest trust assets under Pennsylvania law such as failing to follow the Prudent Investor Rule.

Read this article about what the Prudent Investor Rule is and how to follow its rules and regulations so you can avoid the headache, money, and time a lawsuit can bring.

See all ten of our articles on How To Avoid The Most Common Mistakes Trustees Make:

Avoiding Trustee Mistakes No. 1:  Trustees Failing To Understand The Trust Language

Avoiding Trustee Mistakes No. 2: Trustees In Trouble  Making Early Distributions

Avoiding Trustee Mistakes No. 3: Trustees Failing To Follow The Prudent Investor Rule

Avoiding Trustee Mistakes No. 4: Trustees Failing To Follow The Uniform Trust Act

Avoiding Trustee Mistakes No. 5: Trustees Failing to Follow The Principle And Income Act

Avoiding Trustee Mistakes No. 6: Trustees Failing to Communicate Properly

Avoiding Trustee Mistakes No. 7:  Failing to Properly Reform, Amend, or Terminate

Avoiding Trustee Mistakes No. 8: Failing to File Tax Returns Or To Seek Professional Assistance

Avoiding Trustee Mistakes No. 9: Failing To Understand The Role Of Multiple Trustees

Avoiding Trustee Mistakes No. 10: Trustees Failing To Do The Job

Call David Frees for trustee consultation to avoid laibility as a trustee of a Pennsylvania trust.

Offices are located in Malvern, Phoenixville, and West Chester serving the Main Line, Exton, Chester County and surrounding counties.

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Avoiding Trustee Mistakes - David M. Frees III

How To Avoid The Most Common Mistakes Trustees Make

Making Trust Distributions Too Soon

by:  Pennsylvania Attorney David M. Frees III

Throughout history, trustees have been sued for failing to properly
administer or to invest trust assets under Pennsylvania law.

And, to make matters worse, (or  much better depending on your perspective)
Pennsylvania has  recently become more highly regulated from a trustee’s standpoint
thanks to the Uniform Trust Act and The Prudent Investor Rule as well as the
Pennsylvania Principal and Income Act.

Bottom line?  More things for trustees to do and more opportunity for error and for
lawsuits and personal liability.

What’s a trustee to do?

Well, we have researched some of the most common trustee mistakes and will, in this and related articles review 10
of the most common mistakes and how to avoid them.

For example, many trustees distribute assets too early, only to find that they owe bills, taxes, or other charges and
that the recipients of those funds have spent them, making the trustee potentially personally liable .

So, if you’re the trustee of a trust for a minor or even another adult read on to limit the chances of personal liability.

See all ten of our articles on How To Avoid The Most Common Mistakes Trustees Make:

Avoiding Trustee Mistakes No. 1:  Trustees Failing To Understand The Trust Language

Avoiding Trustee Mistakes No. 2: Trustees In Trouble  Making Early Distributions

Avoiding Trustee Mistakes No. 3: Trustees Failing To Follow The Prudent Investor Rule

Avoiding Trustee Mistakes No. 4: Trustees Failing To Follow The Uniform Trust Act

Avoiding Trustee Mistakes No. 5: Trustees Failing to Follow The Principle And Income Act

Avoiding Trustee Mistakes No. 6: Trustees Failing to Communicate Properly

Avoiding Trustee Mistakes No. 7:  Failing to Properly Reform, Amend, or Terminate

Avoiding Trustee Mistakes No. 8: Failing to File Tax Returns Or To Seek Professional Assistance

Avoiding Trustee Mistakes No. 9: Failing To Understand The Role Of Multiple Trustees

Avoiding Trustee Mistakes No. 10: Trustees Failing To Do The Job

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Avoiding Trustee Mistakes - David M. Frees III

If you are a trustee of a Pennsylvania trust and you want to avoid personal liability and lawsuits by the beneficiaries, then you’ll want to read David Frees’ latest post on avoiding trustee mistakes and liability. It will take less than three minutes and might save you emotional pain and lost time, money,
and energy.

This article should be of interest to trustees of living or revocable trusts as well as irrevocable trusts of all types including GRATs, CRUTs,
and irrevocable life insurance trusts.

This is the first in a series of brief articles for Pennsylvania trustees on the most common mistakes that trustees make and how to avoid them.

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

See all ten of our articles on How To Avoid The Most Common Mistakes Trustees Make:

Avoiding Trustee Mistakes No. 1:  Trustees Failing To Understand The Trust Language

Avoiding Trustee Mistakes No. 2: Trustees In Trouble  Making Early Distributions

Avoiding Trustee Mistakes No. 3: Trustees Failing To Follow The Prudent Investor Rule

Avoiding Trustee Mistakes No. 4: Trustees Failing To Follow The Uniform Trust Act

Avoiding Trustee Mistakes No. 5: Trustees Failing to Follow The Principle And Income Act

Avoiding Trustee Mistakes No. 6: Trustees Failing to Communicate Properly

Avoiding Trustee Mistakes No. 7:  Failing to Properly Reform, Amend, or Terminate

Avoiding Trustee Mistakes No. 8: Failing to File Tax Returns Or To Seek Professional Assistance

Avoiding Trustee Mistakes No. 9: Failing To Understand The Role Of Multiple Trustees

Avoiding Trustee Mistakes No. 10: Trustees Failing To Do The Job

Call David Frees for a trustee consultation to avoid liability as trustee of a Pennsylvania trust.

Offices in Malvern, Phoenixville, and West Chester serving
the Main Line, Exton, Chester County and surrounding counties.

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How Do Our Clients and Friends Get The Most Out of The End of Summer?

Getting The Most Out of The Remaining Days of Great Weather
Great Summer and Fall Actives For Our Friends and Clients

By: David Frees

We want our clients and friends to get the most out of life and out of the remaining days of summer and those first warm days of fall.

We do have some suggestions, but we’d love you to share your own ways for getting more fun out of the changing seasons. So, we hope that you’ll share one or more by commenting below.

Now we know that your time is valuable, but we have a great gift for the reader who leaves the best suggestion – as selected by a vote of the whole staff of Unruh, Turner, Burke and Frees Trust and Estate Section.

But enough about the gifts we have for you.  What are the suggestions we have for the end of the summer?

1) Get to the shore for one or more of the many fall festivals designed to keep the day trippers coming to the beach later in the season. In the alternative, there are many festivals around here.

2) Visit one of the farmer’s markets (Phoenixville and West Chester are two) before the winter and bake an apple pie, or an even easier fruit cobbler, or crumble (a pie without a crust but with great crumb toppings).  Be sure to whip some heavy cream with powdered sugar and vanilla. Pie and crumble recipes.

3) Take a class at a cool outdoor location like Terrain at Styers located on Route one near Brinton Lakes or get to a Phillies game. You can still get tickets at Stub Hub.

4) Eat brunch outside at Parc Bistro on Rittenhouse square.

5) Make great coffee or tea and read the paper outside on Sunday morning.

Dave Frees’ own hot weather coffee recipe: If it’s hot outside (it can be in September and October), make a pot of strong coffee and let it cool.  Pour it over ice, add some Hershey’s Special Dark Chocolate sauce and stir.  If you’re really being decadent, add sugar and top with real whipped cream.

6) Find a new restaurant with outdoor dining and eat there – soon. There are many in Chester, Bucks and Montgomery county.

7) Have a picnic in a park, or in your back yard.

Summer's End Doesn't End The Fun - Fall Fun Ideas

Set up a hammock or use the one you already have.

Ok!  Enough of ours.  How about a few of yours……  Leave a comment below and be entered to win a great end of summer prize.

Don’t want to use technology?  Call us with a suggestion and give us permission to publish it and you’re also entered to win. 610-933-8069.

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Are Your Pets in Your Estate Planning?

Are Your Pets – horses, cats or dogs included in your estate plan? If you have horses, cats, dogs or other pets with long life spans, it might be time to include those pets in your estate planning.  Pets in estate plans are often thought of as an estate planning activity of the rich and famous, but many Americans now purchase pet health insurance, pet vacations, pet day care and many other luxuries for their beloved animals.

So, it’s only rational to make provisions for your pets in the event of your death.

Estate planning for pets can range from the very simple to the very complex and from very inexpensive to more costly arrangements.

From simple to more complicated here are a few points to consider:

1) The Informal Memo Option -At the very least, consider putting together a memorandum to your executor and/or family members suggesting the disposition of your pets.  In this case, where no financial provision is being made for the pets and their care, it is often advisable to discuss the plans with the friends or relatives involved to ensure that they will, in fact, take on the responsibility. In any case, a memorandum that sets out instructions is still always a good idea.

Equine trusts in your estate plan

What something more complicated but more certain?

2) The Outright Gift Option – Consider a bequest to heirs or others who agree to care for one or more pets.  Remember, selection of such care takers is important where there is a flat and outright bequest sine there is no way of knowing how long the responsibility will last.  For that reason, and given the high cost of equestrian care, many horse and other pet owners prefer a gift to a trust where the trustee can ensure that care givers get what they need to Providence continuing care at the right level anticipated by your trust and in your memorandum of instructions.

3) The Trust Option – First, be aware that not all states permit a trust for pets and animals. Pennsylvania and thirty one other states have, however, adopted such a law.  Next, review the issues such as: identifying your pets (the ASPCA site even suggests DNA identification), identifying a caretaker and trustee.  A memorandum to the trustee and care takers with specifics about your pets needs, and your desires for care can be vital. Finally, determine how much will be needed and who gets the balance at the death of your pet or pets.

For more on these issues and equestrian issues watch for more articles.

Attorney David M. Frees III - Pets, Horses and Estate Planning and Trusts

By:  David Frees – Attorney

For more information on estate planning and trusts for horses, and pets, call at  no obligation for a consultation with David M Frees III.  David’s practice focuses on trusts, estates, and related pet and equine issues in estate planning. dfrees@utbf.com

610-933-8069

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Do You Need A Power of Attorney from Your College Student?

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

Attorney David M. Frees III - Protecting Yourself and Your Family- A Will Review

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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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.

Old Will May Be Better Than No Will - But if your will looks like this it may be time for an update

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.

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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