Wealth Preservation, Trusts and Estates

I have recently encountered several estates where the shear number of accounts really caused problems for the heirs as they struggled to locate the accounts, discovered escheated accounts, paid an accountant to figure out the tax consequences and more.

And, through the years I have also seen many clients suffer lifetime negative consequences of having just too many bank accounts and investment accounts ranging from extra fees paid to lost accounts to greater tax complexity than needed.

The New York Times also recently addressed this issue and if you want to read more about the problems of too many bank and investment accounts including:
lost accounts
higher management and account fees
unintended estate consequences
unexpected inheritance tax allocations and more
increased likelihood of estate disputes between heirs

Just click here to read David M. Frees and The New York Times on Why You Can Have Too Many Accounts For Your Own Good.

David M. Frees III
Call 610-933-8069 for an appointment to solve the problem of too many accounts in your estate plan.
Make sure that your will or trust works with all of your accounts.

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If I named my child as a POD (pay on death) or FBO (for benefit of) beneficiary of a bank or stock account and that child is now in financial trouble, can I lose the accounts?

The short answer is “No.”

POD designations on an account do not make that account the property of your child now and his or her bankruptcy or a lawsuit will not subject your accounts to claims by his or her creditors.

However, there are three more things that you need to know about POD (pay on death) and FBO (for benefit of) designations and accounts to be sure that your accounts are safe and that your child will also be protected.

Click here for more essential information on POD and FBO accounts for your children and how to protect your accounts for yourself and for your heirs.

David M. Frees III, Esquire

Have questions about your estate planning and how your POD or beneficiary designations work with your estate planning documents?

Need to update your will, power of attorney, medical powers, or living wills and to coordinate them with your bank and stock accounts.

Mention this blog post to receive a free consultation with David Frees or one of the trust and estate attorneys. Call Donna or Denise for more information at 610-933-8069 or email dfrees@utbf.com

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If you are a Pennsylvania resident, your estate is subject to many death taxes including the Pennsylvania Inheritance and Estate Tax as well as the Federal Estate Tax. If you have been watching the news, you know that one of those tax systems – the federal estate tax is due to expire quite soon.

Why?

Congress has yet to act on the pending repeal of the federal estate tax. But, the pressures on our tax system are so great that most commentators feel that they must keep the tax in place. If Congress allows the tax to temporarily lapse, it appears that they might then re-enact it retroactively to the start of 2010.

In addition to being confusing to taxpayers, and raising a difficult constitutional issue, this makes rational estate tax planning almost impossible.

In any case, the question of repeal or repair of the federal estate tax (also known to its detractors as the “death tax”), will almost certainly be the next political hot potato after health care reform is resolved.

Have you made up your mind yet? We try to present many different views on this issue and we welcome your comments. We also encourage you to contact your Congressional representative and Senator to demand action on this vital issue.

Here is an article from the Heritage Foundation on 7 reasons to repeal rather than reform the federal estate tax.

Please leave your comments below.

David M. Frees III
Chairman: Trust, Estate and wealth Preservation Section
Unruh, Turner, Burke and Frees

Offices in: Phoenixville, Malvern and West Chester

wills trusts estates powers of attorney and living wills
estate planning

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More and more consumers are using Google, local search, and internet tools to help them to find the right lawyer to help with wills, trusts, estate plans and related matters.

But, there are many reasons why searching for “the best” trust lawyer, estate attorney, or probate lawyer could actually get you the wrong information and might actually yield just the opposite of what you’re looking for. For example, many consumer’s do not know that lawyers are not even permitted to advertise that they are “the best” in any given area.

Additionally, there are no recognized specialties in wills, trusts, estates or other practice areas in Pennsylvania. So if you cannot find a Pennsylvania lawyer who “specializes in estate law” or is “an expert in estate law,” then how do you find the right lawyer for your needs?

If you want to know more about how to really find the lawyer or attorney with just the right credentials who practices in the areas of trusts, wills, estate law, and related topics, then see this short report that I just prepared for Pennsylvania residents looking for a lawyer.

Finding The Right Lawyer or Attorney and Not Just “The Best”

Please leave any additional questions or comments below.

Thank you.
David M. Frees III, Esquire.

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Sometimes, our lawyers are consulted by a person who wants to leave a spouse, child, or grandchild out of his or her will. That decision might be for a variety of reasons, ranging from the fact that the person being omitted from distributions is very well off and doesn’t need the inheritance to the bad behavior of a relative, or to a breakdown of a personal or family relationship.

Whatever the reason, there are a few facts and laws that you should consider whenever you are omitting a person who might normally be considered the natural object of your bounty” and therefore a person likely to inherit under your will.

First, Pennsylvania law does not permit you to completely disinherit a spouse. Of course, a valid and binding prenuptial agreement might alter this rule. But, if you do not have a prenuptial agreement, and you do disinherit a souse, he of she is permitted to “elect against” your estate and to claim a sizable portion of your probate estate (and often some non probate assets). However, this is a complicated matter under the law and you should consult legal counsel if you are contemplating a claim or disinheriting a spouse.

Unlike a spouse, children, and grandchildren have no statutory right to inherit. However, direct lineal descendant’s often have an expectation of inheritance (rightly or wrongly) and it is important to take measures to be clear in your plan documents and related documents (such as beneficiary designations) to avoid litigation following your death.

These measures can include a carefully worded clause to verify that the exclusion is intentional and not just by mistake, proving for a smaller gift which is eliminated if the recipient challenges the will, and clarifying whether gifts are intended to include step children and their descendants, or just your naturally born issue.

Finally, extra care and precautions should be taken to insure that the will can withstand common challenges. Verifying testamentary capacity, the lack of duress, and the careful execution of the documents in exact accordance with state law will all be important.

For more information on making sure that your will, trust, and estate planning documents are well drafted and can withstand a challenge following your death, watch these videos on making your will bullet proof by David M. Frees III.

Bullet Proof Your Will Parts One – Five

Click here for more information about David M. Frees III, Esquire
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David M. Frees III Esquire
610-933-8069
dfrees@utbf.com

David has been rated a 9.7 Superb by the lawyer rating service AVVO.
David Frees Chairs the Trust, Estate, and Wealth Preservation Section
of Unruh, Turner, Burke and Frees.

He has offices located in Phoenixville, Malverm and West Chester Pennsylvania.
These offices serve clients through out the state of Pennsylvania including
Chester County, Montgomery County, Buck, Berks, and Lancaster Counties.

For an appointment with David Frees please call 610-933-8069 for Donna or Denise.
Mention this blog post when making your appointment.

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Most people don’t think of the process of estate planning as having any benefit for themselves. Do you?

For most of us, the process of estate planning is something that we endure for the benefit of our family, friends, and/or a favorite charity.

You want your legacy to go where you want it to go. And, to a greater or lesser extent you might also want it to be used in a particular way or for a particular purpose. And, to that end you fill out papers, visit a lawyer, and sign the documents prepared for you.

You might also be motivated by a desire to make sure that the least amount possible is expended on lawyers, accountants, taxes and probate fees. These are all good and noble goals. But they don’t focus on you. They are focused on someone else.

However, there are some very good reasons that you might consider estate planning and the related concept of asset protection planning as a gift to yourself as well as a spouse or loved one.

You see, when you do an effective estate plan, it is important to do a review of all of your assets and liabilities. You must get a good picture of how much you have, what the estate is made of, what the assets are worth, and to determine how liquid or illiquid they may be.

It is also important to determine how they are owned. For example, do you own real estate outright or jointly with others? Or, do you own it in a protective entity such as a Limited Partnership or asset protective trust? The answers to those questions matter in estate planning, but they also matter in asset protection planning for yourself.

And, if you are incapacitated, without a power of attorney, you do not get to select who manages your assets. You might want to make that selection so that when you come out of a coma, the assets are still there and that they have been well managed.

When you do these reviews you will also spot your financial vulnerabilities. You find out if you’re on track to retire when and where and in the manner you desire or if you need to make adjustments.

You will also discover your litigation vulnerabilities. Can you be sued and subjected to harassment by an unjustified lawsuit or are your assets properly insured and protected? what is the right level of protection for you and how much does security cost? Is insurance enough or should you set up trusts, businesses entities or even more complicated protection planning? The answer is different for each person based on the risks that you face and the level of your own risk aversion.

If you have helped a child or children to buy a house or start a business have you protected them from losing that asset in a divorce or a lawsuit? And if you haven’t, could such a divorce or lawsuit affect your own plans? That is, if a child lost all that they had made and what you had given them would they now be a financial burden on you that might change those elaborate retirement plans that you have?

The estate planning process, when done correctly, can be a massive benefit directly to you during your lifetime. It can protect assets and lifestyle for you and your family.

Finally, when planning is done properly, your spouse, partner, or family members will know that it has been done, will know how to react if something happens and will have a sense of security not fear. That security results in a feeling of calm that is worth the time spent. That is a gift worth giving to yourself and your most loved one. If you think I am wrong just ask your spouse. “Honey, do you want me to do estate planning and to put everything in order so that it’s protected? Or, Should I just leave things the way they are?”

By: David M. Frees III, Esquire
610-933-8069

For more information on How to do Enhanced Estate Planning and asset protection planning, How To Hire The Best Trust and Estate Attorney for Your Particular Needs, and/or my report on The Ten Most Common Mistake Pennsylvania Executors Make and How To Avoid Them, or just click here for more resources from Dave Frees.

David M. Frees III, Esquire
Offices in West Chester, Malvern and Phoenixville
Unruh, Turner, Burke and Frees serves clients through out Pennsylvania
including Chester County and Montgomery County,and the communities of Wayne, Devon,
Berwyn, Exton, West Chester, and many others.
610-933-8069

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This is an alternative view on federal estate tax changes but be aware, not entirely accurate on the facts.

David M. Frees III
610-933-8069

Unruh, Turner, Burke and Frees have convenient offices
throughout the Philadelphia area and serve clients in
Chester County, Montgomery County, Lancaster and Berks Counties,
Bucks and Delaware County.

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With the cost of 4 year college educations continuing to soar

and, to out pace inflation, many of us are wondering how to save for our children. There are a variety of tools ranging from multiple 529 plans to UTMA accounts, to trusts, and outright savings in the parent’s own names.

But, if you want to know how the President of the United States of America is saving for his daughters, then the public disclosure of his gift tax returns and the Wall Street Journal have the answer. This is a great article on the advantages of front loading a 529 plan which can be done by parents and/or grandparents or other relatives without filing a gift tax return. And, now is a good time to consider such gifts as the market is so low that the gift might be able to grow substantially before it is needed.

Now how to get the money to put into the plan? That is another question.

Enjoy. Leave a question or comment below.

David M. Frees III, Esquire
David Frees’ AVVO Rating is a Superb 9.5
Unruh, Turner, Burke and Frees
610-933-8069
dfrees@utbf.com
David assistants Donna, Denise, Tra and Whitney can be reached to set up a telephone or in person appointment with David.

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This article is a quick read and very informative on the issue of how and why to work with your advisers to make sure that your estate planning works.

BY: David M Frees III, Esquire
dfrees@utbf.com
610-933-8069
Offices conveniently located in Chester County, Malvern, Phoenixville and West Chester

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The Wall Street Journal has an excellent article on the virtues and reasons for a GRAT right now. If you have been considering a GRAT (Grantor Retained Annuity Trust) there has probably never been a better time. Want to know more? Read on…

David M. Frees III, Esquire
610-933-8069
dfrees@utbf.com
www.paestateplanners.com

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