Wealth Preservation, Trusts and Estates

Many families have developed significant wealth in closely held small businesses. Historically, it has been difficult to transfer these small businesses because of the relatively low gift tax exemption available to the person or persons making the gift. For 2011 and 2012 the unified gift and death tax exemption is $5 million per person. Therefore, a husband and wife can transfer up to $10 million without paying gift tax.

Assuming you have a personal comfort level, now is an advantageous tax climate to consider transferring a part or all of the closely held family business. Such a transfer will serve to lock in the use of some or all of your $5,000,000 exemption regardless of whether or not this exemption amount is reduced at a later date. Additionally, your family will benefit from getting the future appreciation of the business interest out of your estate.

You will have to review the capital gains tax issues related to such a transfer with your tax advisors. You will also have to explore the options of gift recipients. For example, should you make the gift of business to individual children or into trusts for the benefit of the children. The trusts could serve to provide heightened creditor, divorce, and asset protection as well as the opportunity to use the Generation Skipping Transfer Tax Exemption.

The 2011 and 2012 tax laws provide unprecedented flexibility when considering lifetime planning. Please take the time to sit down with your advisors to determine if there are planning opportunities available to you that could ultimately provide significant family tax relief.

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Has Marcellus shale changed the issues faced by your family?

Do you want or need better sources of neutral information on the
issues you now face?

Families with mountain property, vacation homes, and hunting camps
located in regions rich in marcellus shale gas deposits are now faced
many difficult decisions ranging from:

* How will the drilling and fracking effect use of the land?

* Restoration of the family land and related water issues

* How to own the land and pass on the land or gas revenues, and
many related issues

* The use of trusts and other tools to minimize expenses and
taxes

Penn State has been developing information resources for
Pennsylvania residents, government, and the gas industry.

For more information on Marcellus shale resource through Penn
State, click here.

The actual Penn State Site and Source for Marcellus shale information.

For information about free well water testing click here.

For More Estate Planning Options Related to Marcellus Shale,
call 610-933-8069 and mention Marcellus Shale offer code 2011
for a free estate planning consultation with one of  our estate
planning or business section lawyers.

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Many spouses express fear and grave concerns that they would not
know what to do if a spouse or loved one dies.  They are terrified
when you don’t have a will, trust, or estate plan and a list of
people and instructions to guide them.

And, if you are the primary bread winner and/or have responsibility
for handling finances or investments, then this fear and concern can
be even more profound.

And you, like many clients are justifiably so busy with work, paying
tuition, mortgages, and in some cases the demands of running a
business, professional practice, or corporation that you just can’t
find the time to get to a will, trust, or estate planning.

But, deep down you know that getting this done is a reasonable
request by a spouse.

And, you certainly want to protect yourself, and your minor or adult children.
If you have just been waiting for a way to make this happen that is easy,
methodical and turn key then your wait is over. And the price is a fixed
fee.

Find our more about our risk free, simple, easy, and refreshingly effective
estate planning by clicking one or more of our programs:

Enhanced Estate Planning (TM) (for basic family needs) which
also can include our Elder Law Solutions for those facing nursing
home care.

Business Class Estate Planning(TM) (for those with businesses,
professionalpractices or more complex planning needs), and

Our premier First Class Estate Planning (TM) (for families
planning to pass on substantial wealth, complicated business or
real estate interest or for those with major philanthropic goals).

You can also schedule a risk free appointment for any one of these programs
or to find out which is right for you.

Simply call 610-933-8069 or contact David Frees at dfrees@utbf.com
and ask for your free materials and a no risk appointment with David Frees or
Douglas Kaune and mention the New Year’s Resolution Offer.

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Are you are a business owner or professional, a real estate investor or
entrepreneur who has been putting off your estate planning because
it’s too time consuming, costly, or complicated?

Have you been promising a spouse, children or other loved ones that
you’re going to “get around to” this but just never do?

Has it been more than five years since your last business and estate
planning?

Do you believe that the changes to the federal estate tax law will now
automatically protect your family and spouse?

If you answered yes to any one of these questions, then you’re probably
ready to hear about moving up from coach to a Business or First Class
Estate Plan(TM).

To us, that is planning that respects that you’re a busy person with many
people relying on you.  That you demand a high ROI from whatever you
are spending time doing,and that you need services that are efficient, with
limited or no risk and that will work to carry out your goals with a high
level of accuracy and at a reasonable price.

Well, you just don’t get that with a coach class ticket or a simple will.

My partner Douglas Kaune and I have developed a plan to help busy
business people just like you. To find out what we can do for you, and
to upgrade your estate planning from “coach” to our Business Class Estate
Plan or our First Class Business Plans(TM) call 610-933-8069.

Mention: Business Class Estate Planning to claim your no cost
and no risk consultation and flat fee pricing.

If you’d like to read a bit more about our
estate planning programs, click here

David Frees is a Pennsylvania lawyer with offices in Malvern,
West Chester and Phoenixvillle Pennsylvania.  His practice is
limited to trusts, estates, wills and probate and related matters
such as elder law and asset protection for your heirs.

He is a Super Lawyer and has been recipient of Main Line Today
Magazine’s Top Lawyer honor for multiple years.  He is the
developer of Business Class Estate Planning and First Class
Estate Planning (TM) which are both designed for families and
individuals who expect high return on their investment of time
and money and who want to pass on family wealth and
values.

He can be reached at dfrees@utbf.com or by calling 610-933-8069.

Mention Business Class or First Class Estate Planning for your no
obligation and no cost consultation.

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Do End Of Year Gifts To Children and Grandchildren Still Make Sense?
By: David M. Frees III

In the last few days of 2010 Congress passed, and the president signed, a new bill governing federal estate and gift taxes.

Since we are so close to the end of a calendar year, many people are calling and asking whether or not to make their traditional end of year gifts.

General Thoughts On Gifting and Gifting Before The End of 2010

In general, you should not make gifts that will negatively impair your personal lifestyle. This is especially true when you are retired and on a fixed income.

However, many clients find that they are fortunate enough to be building estate value even though they are comfortable in their retirement. In these cases, or even in cases of smaller estates, where you want to preserve assets and protect them from the nursing home spending, gifts may be a valuable end of year planning strategy.

This article deals predominantly with gifts where you have sufficient funds to avoid medicaid and nursing home issue. If you desire to protect
your assets from nursing home costs, click here.

For those who want to continue making gifts to family members, there is some very good news in the new estate tax law.

Here is a quick review of the new federal estate tax law and rates.

Strategies For End of Year Gifting and Gifts in 2011:

Since the federal estate tax rate will be the same for the next 2 years, and since five million dollars will be covered and tax free at death (or even during lifetime) for those same two years (before we fall back again to only $1 million dollars) large gifts do not need to be made before the end of 2010 unless very large gifts are being made to grandchildren.

Annual gift tax exclusion gifts (currently $13,000.00) per person can be made before December 31st and again after January first (for 2011) without using any of your lifetime or death exemption. Note that this amount might adjust again in the future.

These annual gifts can be made to children and grandchildren and can be made to the spouses of your children and grandchildren as well. If you are married, both you and your spouse can make these gifts and effectively double the amount that can be given without filing a gift tax return or paying any tax.

In addition, greater amounts can be paid directly to a school or for medical purposes in certain circumstances as well.

In short, make gifts of up to the $13,000.00 per person annual gift tax exclusion amount before the end of the year. In 2011 gifts in excess of this amount will either be taxed (at the historically low rate of 35% for the next two years)

Since the effectiveness of gifts can vary widely from person to person, and because there are better and worse ways to make gifts depending on your personal circumstances ask your lawyer and/or tax adviser to consider your personal facts and circumstances when advising you on the use of gifts, paying up insurance policies, or the use of trusts, annuities, and other gifting strategies.

David M Frees III
Unruh, Turner, Burke and Frees
Offices serving Malvern, Phoenixville, Devon, Wayne, West Chester,
Chester Springs and many surrounding communities.

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Do End Of Year Gifts To Children and Grandchildren Still Make Sense?
By: David M. Frees III

In the last few days of 2010 Congress passed, and the president signed, a
new bill governing federal estate and gift taxes.

Since we are so close to the end of a calendar year, many people are
calling and asking whether or not to make their traditional end of year
gifts.

General Thoughts On Gifting and Gifting Before The End of 2010

In general, you should not make gifts that will negatively impair your
personal lifestyle. This is especially true when you are retired and on a
fixed income.

However, many clients find that they are fortunate enough to be building
estate value even though they are comfortable in their retirement. In these
cases, or even in cases of smaller estates, where you want to preserve assets
and protect them from the nursing home spending, gifts may be a valuable
end of year planning strategy.

This article deals predominantly with gifts where you have sufficient funds
to avoid medicaid and nursing home issue. If you desire to protect
your assets from nursing home costs, click here.

For those who want to continue making gifts to family members, there is
some very good news in the new estate tax law.

Here is a quick review of the new federal estate tax law and rates.

Strategies For End of Year Gifting and Gifts in 2011:

Since the federal estate tax rate will be the same for the next 2 years, and
since five million dollars will be covered and tax free at death (or even during
lifetime) for those same two years (before we fall back again to only $1 million
dollars) large gifts do not need to be made before the end of 2010 unless very
large gifts are being made to grandchildren.

Annual gift tax exclusion gifts (currently $13,000.00) per person can be made
before December 31st and again after January first (for 2011) without using
any of your lifetime or death exemption. Note that this amount might adjust
again in the future.

These annual gifts can be made to children and grandchildren and can be made
to the spouses of your children and grandchildren as well. If you are married,
both you and your spouse can make these gifts and effectively double the amount
that can be given without filing a gift tax return or paying any tax.

In addition, greater amounts can be paid directly to a school or for medical
purposes in certain circumstances as well.

In short, make gifts of up to the $13,000.00 per person annual gift tax
exclusion amount before the end of the year. In 2011 gifts in excess of this
amount will either be taxed (at the historically low rate of 35% for the next
two years)

Since the effectiveness of gifts can vary widely from person to person, and
because there are better and worse ways to make gifts depending on your
personal circumstances ask your lawyer and/or tax adviser to consider your
personal facts and circumstances when advising you on the use of gifts,
paying up insurance policies, or the use of trusts, annuities, and other gifting
strategies.

David M Frees III
Unruh, Turner, Burke and Frees
Offices serving Malvern, Phoenixville, Devon, Wayne, West Chester,
Chester Springs and many surrounding communities.

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End Of Year Gift Tax Planning Just Got Harder
By:  David M. Frees III

Were you planning to make gifts at the end of this year knowing, that since Congress has failed to act, the federal estate tax returns with a vengeance at 12:01 on January 1, 2011?  Are you one of the families who are tired of waiting for clarification and are willing to pay a thirty five percent tax for gifts before the end of the year?

Well, while tax payers and planners alike have been complaining about the unjustness of uncertainty in the law and financial writers and taxpayers have been begging for clarification, Congress has been failing to provide any real guidance.

And now, to make matters worse, the Baccus bill, while suffering a temporary  defeat just a few days ago, has raised the specter that Congress has suddenly awakened to the idea that many wealthy families are planning gifts at the end of the year and are willing to pay gift taxes at a rate of 35% to avoid higher tax rates in the future.

While the bill was defeated on  a procedural basis, many are now worried that Congress is even considering a bill that would be effective retroactively to December 2, 2010 and would foil the end of year planning that has resulted from Congresses repeated failures to act.

If you’d like to know more about the status of this bill here is a great blog on the Baccus Bill and the federal estate tax by Forbes.

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

610-933-8069

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I work with many clients to assist them with the estate planning and elder law issues relating to the mineral rights they own in certain real property throughout Pennsylvania and other states. The focus on the mineral rights ownership interest has increased exponentially as the Pennsylvania (PA) Marcellus Shale discoveries have broadened. Many people also refer to this as the “Pennsylvania Gold Rush.”

Tremendous wealth can result from the ownership of the mineral rights in a property containing large natural gas reserves. The wealth will only be realized after the mineral rights owner signs a lease with a natural gas company or with the government. The negotiation and structure of this oil and natural gas lease is the key to protecting the property owner and will help to insure a successful and lucrative transaction. Landowners should have legal representation during this negotiation and lease structuring period. Your future relationship with the natural gas company or government entity will be shaped in these beginning stages and many of your potential problems can be averted by having legal counsel. There are also hurdles to be considered and overcome that relate to the Pennsylvania Department Of Environmental Protection (PA DEP). Read the Marcellus Shale Page at the PA DEP website by clicking here.

Legal counsel will negotiate, among other legal concerns: 1. A lump sum “signing bonus,” 2. Amount and payment schedule of ongoing royalties, 3. Clauses to discourage the energy company from misusing or destroying the land (Read this article on point), 4. Receipt of free natural gas or oil products, 5. Payment to compensate for loss of property value as a result of mining/extraction.

Please contact me with any questions regarding the oil and gas lease preparation and negotiation process at either 610-933-8069 or at dkaune@utbf.com. Unruh, Turner, Burke & Frees, P.C. is a full service law firm serving clients in Chester, Montgomery, Delaware, Philadelphia, Berks and Bucks counties. The firm is capable of assisting you with all aspects of of the mineral rights leasing process for properties located throughout the State of Pennsylvania.

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We have had a lot of discussion here and with clients about the future of

the federal estate tax. We have not talked as much about the generation-skipping tax (GST) which was also repealed for 2010. This presents an opportunity for grandparents and great grandparents to pass wealth to future generations that was not previously available.

Generally, the GST is intended to prohibit people from transferring property to generations beyond the next in line without paying significant tax. The IRS does not want someone to be able to give all of their wealth to grandchildren or great grandchildren because they want to be able to tax as many generations as possible.

If transfers are made to grandchildren this year, there is no GST. However, a gift tax of 35% would still apply for transfers in excess of $1 million. If the law as presently written goes into effect, the gift tax will rise to 55% in 2011. The person making the gift to grandchildren or other skip recipient will not owe GST on the first $1.06 million, but will owe both gift tax and GST on the dollars over the $1.06 million.
The changing tax laws could make gifting in 2010 significantly more powerful than making like gifts in 2011. It is important for you to be ready to make gifts before the end of the year to take advantage of historically low gift tax and GST rates.
Take a look at this article to learn more about the GST Repeal.

For questions or to review important Estate Planning opportunities please contact Douglas Kaune, Esq.
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 and also serving clients in surrounding towns and communities such as Collegeville, Royersford, Pottstown, Paoli, Exton, Downingtown and Media.

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Avoiding The Federal Estate Tax – In 2010 and Beyond
What You Need To Know and Do In Your Estate Plan To Be Ready For 2011

The federal estate tax is currently not in effect.  However, it will return at rates and in amounts
that have not been seen for some time.  As of January 1, 2011 the IRS will be taxing all estates
of over 1 million dollars at rates of 42% to 55% depending on the size of the estate.

However, five billionaires have died since the federal estate tax was eliminated at 12:01 on January 1st 2010.
and as a result, their families will likely owe no tax as opposed to more than half of the estate value.
Since the federal estate tax ranges (when it is in effect) from a rate of 42% to 55% the federal government
has failed to collect billions in tax that it might otherwise have charged the billionaires’ estates.

The the deceased billionaires include, among others,  Mr Bell, the founder of Taco Bell, George Steinbrener, who
needs no introduction, and philanthropist and media billionaire Mr John Kluge.

Kluge, who was well known in media circles, was the oldest member of the Forbes 400 Richest List
and had a net worth estimated to be in excess of $7 million dollars.

For more information on the federal estate tax click here.  For more information on Mr. Kluge, see the
The New York Times which carried an article on Mr. Kluge as well as USA Today, The New York Daily News, and
CBS news.

So short of dying in 2010 what do you need to know and to do before the tax is imposed on your family?

First, stay informed.  When you register for any one of our reports, you’ll be added to a list of smart consumers and you’ll
receive updates through our articles on what Congress is doing about the federal estate taxes. You can also peruse our articles, blogs, videos and checklists
that we provide at www.utbf.com/trust-estate and www.PaEstatePlanners.com.

Next, understand that even if your wills are designed to save on Federal estate taxes, they may no longer work properly and you might need to do more planning
to be prepared for 2011.  Just get advice that applies to your situation.

Finally, be an informed consumer about the options and planning techniques often used by those with larger estates but which might also work for
families with more modest affluence who will be taxed after January 1, 2011. Click here for a selection of our reports for executors, trustees, and those doing estate planning.

David M. Frees III has been awarded the AVVO lawyer rating services highest rating of 10.0 – Superb.

dfrees@utbf.com

610-933-8069

Law Offices In Malvern, Phoenixville and West Chester

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