Wealth Preservation, Trusts and Estates

One of the Irrevocable Trusts we prepare for clients who enter into

Nursing Home Asset Protection planning is referred to as the Medicaid Intentionally Defective Grantor Trust (MIDGT).  One of the tax features of the MIDGT is that the person, usually an elderly parent, who transfers assets to the irrevocable trust will continue to be responsible for paying the income tax due on the trust earnings even though he or she has severed all other ties to the assets.  One of the significant benefits of the parent, in this scenario, retaining the responsibility to pay the income tax is that he or she will be able to offset the income earned by the trust using possible long term care costs.

Below is a brief review of the Medical Care Costs that you or a loved one might incur and which might be used to offset income or gain.

It is important to maximize all income tax deductions available to you or a loved one.  Medical expenses are deductible only to the extent they exceed 7.5% of a taxpayer’s adjusted gross income (AGI). You can only use medical expenses that are not reimbursed through insurance or other means.  It is infrequently the case that the common medical expenses can be used as deductions because either the costs are covered by insurance or they do not rise to the necessary percentage of gross income.

That being said, the entire cost of a long-term care facility, including meals and lodging, can be a deductible medical expense. The care cost is fully deductible if the principal reason for entrance into the facility is the provision of medical care.  The retained ability to take such a large deduction could result in significant income tax savings.

A person living in an assisted-care facility can only deduct a portion of the cost of the payment to the care facility.  The IRS does not view the entire payment as a medical care cost considering the taxpayer is only being “assisted” and is not receiving complete care.

You can also take medical deductions if you are spending significant dollars to upgrade your home in order to remain at your residence comfortably.  Equipment and home modifications to accommodate the handicapped (no age limit) that do not increase the market value of the home are deductible as a medical expense.  Examples of such deductible improvements include additions of handicap accessible bathrooms or hospital beds.

So you can see, the income tax savings could be significant if the care recipient is claiming the income and offsetting it with care costs.  This would potentially let the trust assets to grow income tax free for years.

As a side note, these medical deductions can even be taken at the estate level after a person’s death.  When a person dies owing medical expenses, and those expenses are paid by the estate within one year, a medical expense deduction can be taken on the decedent’s final income tax return (Form 1040) or on the federal estate tax return (Form 706).

For a more detailed review of the Medicaid Intentionally Defective Grantor Trust click here.

For additional information on Elder Law Planning and the use of Elder Law, asset protection planning please contact Douglas L. Kaune at 610 933 8069 to schedule a client conference to determine if the Firm can be of assistance. For a review of Doug’s bio page click here.

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If Your Spouse Dies in 2011 or 2012
You May Think That There
Is No Estate Tax Return Due

You Might Right And You Might
Be Surprised To Know You Should
Still File

Most people now know, that if they die during the calendar
year 2011 or 2012 that there is a five million dollar exemption
from federal estate taxes.

And, it would be logical to therefore assume, that if you lose a spouse
during 2011 or 2012, and if your spouse’s assets are less than
five million dollars, that you would not need to file a return.

In fact, that’s true.  You don’t have to file.

But, because of something called federal estate tax
PORTABILITY, you will certainly want to.

If you fail to file, then you do not “inherit” your deceased
spouse’s remaining credit amount.

Perhaps an example will help to make this strange idea
of portability a bit clearer.

If spouse A passes away and has three million dollars worth
of assets that pass directly to surviving spouse B who has
his/her own assets of one million dollars and they
also have 2 million of joint assets, the surviving spouse
ends up with assets totaling six million dollars.

However, if the surviving spouse fails to file a federal
estate tax return at the death of the first spouse, she only
has her own five million dollar exemption.

That amount will not cover the six million dollar estate
that she will have at her death.  One million dollas will
be taxable.

To avoid this result, all the surviving spouse has to do
is file the federal estate tax return at the death of the first
spouse.

Now this type of return can be expensive – as hiring
lawyers almost always is.  They are complicated, they are
time intensive, they require obtaining extensive amounts
of information about assets and their valuation, but
by filing the return she inherits the five million dollar
exemption of the first spouse and this alone might save
their children or heirs hundreds of thousands or even
millions of dollars of federal estate tax at the death of the
second spouse.

Complicated.  Yes.  Oversimplified here?  Yes.

But the basic theory is simple.  If a spouse passes away in
2011 or 2012 be sure to seek advice from a knowledgeable
a lawyer who keeps current in these matters about the need
to file a federal estate tax return.

For more information on this important topic read FORBES
on the federal estate tax and portability.

by:  David M. Frees III, JD
610.933.8069

dfrees@utbf.com

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Is Being An Executor or Trustee More Dangerous Than You Think?
Yes! Even your own kids might sue you.

By: David M. Frees III JD

In many cases it might be. But, if you own your own business
you might want to pay particular attention to this case.

If you’re a business owner who wants the trustees of a trust to
keep the stock of your legacy then it’s very important to protect them
from liability so that they don’t feel compelled to sell it to
shield themselves from law suits like this one.

However, the exact rules and circumstances should be carefully
reviewed and discussed as part of your estate planning.

A review of the case is useful:

In a recent Pennsylvania case involving executor liability for investments
the Superior Court ruled in Estate of Warden, which can be found at
2010 PA Super 121 (July 9, 2010), the Pennsylvania Superior
court found in favor of trustees who failed to sell a business
predominantly because of specific language in the will to protect them.

The facts are interesting.

Under his will, Mr. Warden established a testamentary trust that was
funded with 110,000 shares of stock in his company, Superior Tube
Company, with a value of $1.5 million at the time of Mr. Warden’s
death in 1951. Superior Tube became SGI.

The trust terms provided that the trustees were not liable for any
actions taken in good faith. Does your will have this clause?

Should it?

Read on and then chat with your lawyer.

Mr. Warden expressed a preference for long-term investment performance
with respect to trust investments, and restricted the sale of the company
unless all trustees consented to the sale at a certain price. And, the trust
continued to hold the stock of the company through mergers and other
stock exchanges and name changes.

In 1987, Mr. Warden’s grandson successfully petitioned the court to be
appointed as successor trustee of the trust, to serve along with
Wachovia Bank, N.A.

No beneficiaries objected to the appointment.

Mr. Warden’s great-grandchildren, who held a 12.5% interest in the
trust income, thereafter filed objections to the trustees’ accountings
and sought to surcharge their father and Wachovia Bank as co-trustees.

The other beneficiaries, apparently satisfied with the investments,
did not file objections.

At the time the beneficiaries filed the suit, the value of the SGI stock
had increased from $1.5 million at Mr. Warden’s death to at least
$189 million.

The beneficiaries filed the suit after attending a family meeting where
they learned of an SGI operating loss of $66 million sustained from
2000 through 2003 that would result in a major reduction in their
dividend payments.

Following a 13-day trial, (imagine the legal fees on this one) the
trial court overruled the objections. They essentially ruled in favor
of the trustees. The beneficiaries appealed- more legal fees.

On appeal, the Pennsylvania Superior Court affirmed the trial court on
the grounds that:

(1) the higher standard of care for a corporate fiduciary does
not apply where the trust instrument explicitly mandates a different
standard of care such as the good faith standard;

(2) because Mr. Warden indicated a good faith standard in the trust
instrument, the trustees only breach their duty if they do not act in
good faith, which means if they intentionally acted with a
dishonest state of mind;

(3) the allegations that Wachovia failed to follow its policies, attend
SGI board meetings, review financial statements, or meet with the
co-trustee did not rise to the level of intentionally
dishonest behavior;

(4) because the trust terms required the consent of all co-trustees to the
sale of SGI stock, and did not provide a mechanism for breaking a tie
between Wachovia and the co-trustee, Wachovia
did not have a duty to compel the co-trustee to sell the SGI stock;

(5) the trustees were authorized by the trust terms to hold assets even
if they did not generate returns;

(6) a trust investment may fluctuate in value in a short-term time
period over the administration of a trust, but a short-term decline in
value is not a loss where the overall long-term performance of the
stock shows an increase in value;

(7) here, the asset increased from $1.5 million to $189 million, and
the beneficiaries’ focus on the alleged $300 million loss in value between
the 1990s and 2003 was inappropriate;

(8) the beneficiaries’ claims were barred by laches (a legal concept
designed to give people a fair time within which to bring their claims or to
be barred) because their grandmother never objected to the trustees’
actions, no other beneficiaries objected to the administration prior to 2004,
the beneficiaries did not demand an accounting until four years after
succeeding to their grandmother’s interest in the trust, and they were
aware of the high concentration of SGI stock 13 years before becoming
beneficiaries and four years after becoming beneficiaries before requesting
an accounting; therefore, the beneficiaries had an affirmative duty to inquire
and bring their claims sooner.

The bottom line?

If you Own a closely held business it might be sold upon your death.
But, if you want it to be held in a trust you’d better consider some
specific provisions to give the trustees guidance and to protect them
if they follow your rules.

For more information about estate planning, succession planning,
and exit planning for the owners of closely held and family owned
businesses, call or email me at 610-933-8069 or at dfrees@utbf.com

Thanks also to the firm of McGuire Woods Fiduciary Advisory Services and Steve
Leimberg for calling this case to our attention and for their savvy analysis.

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When a person dies without a will, (intestate), his or her property will go through a court supervised intestate process.

That process is a set of inflexible rules created by state law that dictates how the deceased person’s property and assets are distributed.  Only a will, or a non probate beneficiary designation (a combination of the two is usually best) will prevent these state rules from applying to your assets.

Want to avoid the intestate process?  Make sure to execute a will and make sure to coordinate your will with your non probate property such as IRAs and life insurance payable under a beneficiary designation.

Here’s a brief video from Bloomberg on why it’s important to have a will. You can skip the ads.

If you have a will click here to read Is It A “Probate Asset” Or Not”? to find out more about which of your assets go through probate.

The Pennsylvania Intestate Process

If there is no will the intestate process begins with the Orphan’s Court appointing a personal representative to pay creditors, to receive legal claims, and manage the estates expenses. Estate expenses range from the decedents (person who has died) unpaid bills, loans, administrative fees, costs, and payments to the administrator for their service.

After the court appoints the administrator and the expenses are paid the intestate law will identify heirs for distribution of assets. Here is a summary of Pennsylvania intestacy statutes, which dictates to the court and the estate as to the heirs of a given estate when there is no will:

State	Priority Under Intestate Laws	When there are Children of Different Generations (grandchildren)
PA	1. Spouse and no children or parents – everything to spouse. 2.Spouse and parent (no children) — everything to spouse. * 3. Spouse and children — spouse takes 1/2 the estate. If the children are also the spouse’s, the spouse also takes $30,000. If they are not, spouse only takes 1/2. Children divide the remainder equally as long as they are in the same generation. 4. Children and no spouse — the children take all. Shares are divided equally among the children in the same generation. 5. Parents, no children or spouse — parents share equally. 6. No spouse, children, or parents –brothers, sisters, or their children take all. Shares are divided equally as long as those eligible are in the same generation. See 20 Pa. Con. Stat. Ann. §§ 2101, et. seq. (2002).	The estate is divided into as many shares as there are living members of the nearest generation of children to the victim, including deceased children in the same generation who left behind children. Each surviving heir in the nearest generation to the victim receives one share and the share of each deceased person in the same generation is divided among his or her descendants in the same manner. See 20 Pa. Con. Stat. Ann. §§ 2101, et. seq. (2002).

• Pennsylvania intestate statute was amended on October 3, 2003. See 2003 PA Legis. Serv. 26 (West).

• This is a general summary only.  It does not include distributions when none of the relatives set forth in these charts is alive.  This is not a substitute for state law, and to the extent state law varies with this chart, state law controls. For more information, an attorney familiar with state statutes and case law should be consulted.

If no heirs can be identified the estate and its property and assets will be given to the state.

If there are heirs the administrator will distribute the assets to the heirs according to Pennsylvania’s probate laws.

If you do not have a will and die the probate court will distribute your estate according to intestate law. And, Pennsylvania’s intestate law may vary significantly from your actual wishes.  This is especially true if you have children from a prior marriage, want your spouse to have all of the assets, want to include other people or charities.

Why?  No close friends are factored in and family to whom you are not close to may inherit the most.  No charities are included and your spouse may not even get to receive or use your assets.

In the end, administering an estate without a will may not do what you want, it may not select the administrator that you desire, and it may be considerably more expensive than probating an estate with a will.

Questions about having a simple will, trusts for children and grandchildren, special needs trusts?

Please email me at dfrees@utbf.com

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Is It Time To Get A Will or To Update Your Existing Will, Trust or Estate Planning Documents?

By: David M. Frees III JD

Has it been a few years since you last updated your will trust, or power-of- attorney?

Are you unsure that your IRA and 401k beneficiary designations still work with your will and trust?

Has an executor, guardian or trustee changed?

Need to make a change in the document?

Have you radically increased or decreased your life insurance coverage, retired or recently inherited money?

Tired of guessing how much it should cost and where to go?

We have recently developed a quick quiz to let you know if you’re ok, if it’s time to update or upgrade, or if your situation is urgent.

After you take the quiz, this article will also tell you:

What you need to do,

How much it will cost, and

How and where  to get it done.

The advice ranging from using Legal Zoom, to hiring a local general practice firm, to getting the right level of legal experienc for your particular situation is spefically responsive to your ciustom score and your particular needs.

Whether you have

Children or grandchildren,
A family or other business,
Commercial real estate,
A home or vacation home

This valuable quiz and estate planning assessment tool will help you to answer your most pressing estate planning questions.

Interested?  Just click here or click below:

Dave!  I’m interested in getting a will or updating a will or estate planning documents and I’d like more information about my estate planning situation.

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As many of you know, the present Federal Estate Tax Law allows for a surviving spouse to carry forward the Federal Estate Tax Exemption available to his or her deceased spouse at his or her death.  To garner the benefits of this “Portability” provision, the Internal Revenue Service (also referred to as “IRS”) does not require a surviving spouse to establish a credit shelter trust like those utilized in many estate plans in years past.

Now that you know that the Portability provision exists, we can tell you the mechanics of making the proper election.  The IRS Notice 2011-82 issued on September 29, 2011 explains that the executor of the first decedent spouse’s estate must timely file a Form 706 “on which the executor computes the deceased spousal unused exclusion amount ["DSUEA"] and makes a portability election.”

The Internal Revenue Service makes it clear through its statement that “most (if not all) married decedents dying after December 31, 2010, will want to make the portability election.”  Although the surviving spouse or other executor of the surviving spouse’s estate might have to do a bit more work to prepare and file the federal estate tax return, the benefits for the future generation could be significant.  It is calculated that the additional $5,000,000 of federal estate tax exemption resulting from the portability election could result in a federal estate tax savings of $1,750,000.

Again, we believe it is important for virtually all surviving spouse’s to file for the Portability of their deceased spouse’s estate tax exemption.  While a surviving spouse’s estate value might be under the present $5,000,000 exemption per person, one of the following could happen:

1)  The surviving spouse’s estate value could rise significantly and ultimately exceed his or her exemption at his or her death.

2)  The Federal Estate Tax Exemption could be reduced below the surviving spouse’s estate value.

3)  There could be a rise in the estate value and a decrease in the exemption amount.

Regardless of which of those occurs, the extra $5,000,000 of exemption that could be carried forward from the decedent spouse would go a long way toward protecting some or all of the second deceased spouse’s estate from the 35% tax that now would apply.

While the preparation and filing of the Form 706 can be complex and time consuming it is likely well worth the effort when considering the potential tax savings.

IMPORTANT NOTE: For decedents dying on January 1-3, 2011, the deadline for filing a 706 is Monday, October 3, 2011. You may secure an automatic six-month extension by filing Form 4768 by the original due date for the 706.

Click on the link below to view or download a copy of this important Notice. http://www.irs.gov/newsroom/article/0,,id=246604,00.html

To read our article on the Federal Estate Tax’s Future click here

Will the Federal Estate Tax Law Be Modified in 2012? Obama Gives Us A snippet of Insight.

For assistance in preparing and filing a Form 706 and making the necessary Portability elections, please contact Douglas L. Kaune, Esquire at 610 933 8069 or dkaune@utbf.com.

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Do you want to be invited to any of our upcoming
executor, trustee, and/or estate planning social and
educational events?

Getting The Invite Is Easy

Here’s How

Each year David Frees and
Douglas Kaune sponsor
a series of events for the
readers of our articles and
for our clients to say thank you.

We appreciate your kindness
in selecting us as your attorneys and for allowing us
to represent your families’ estates and to help in
preparing estate plans to protect you and your heirs.

We also appreciate all of the referrals your friends,
co-workers, professional colleagues, and family members.

And, we know from your questions, that you and many of the
people that you refer need more information about certain
similar topics.

So we have a few up coming events based on your questions
and comments and we’d like to know more so that our winter
and spring events can be customized to your needs.

Upcoming Events:

How Do Estate Auctions Work? – Selling The Family Heirlooms
That Aren’t Really Heirlooms.

Many clients have asked about how
estate auctions really work.

And, over the years we have noticed,
that many families have collected
furniture, art, and other things which,
while holding great financial value,
are not always high in sentimental value.

So, when heirs and executors have distributed the antiques, art
and other personal effects, there are often vary valuable articles
to be sold or liquidated.  And, high end auction houses are
one way to maximize value to the heirs and to protect an executor
from liability.

For that reason, we have arranged, through our connections
at one of America’s oldest auction houses, to host a preview
party for our clients who are interested in how high end estate auctions
really work.

If you’re interested in this topic, in attending the event, or in more
information on estate auctions, please leave a comment below of
email me at dfrees@utbf.com and mention estate auctions in the
subject line. You can also call 610-933-8069 and asked to be
added to the invitation list for the auction event.

Once you’re on the list you’ll be sure to get an invitation.  If you
cannot attend we’ll also be sure to send you additional information
after the event.

Other Possible Events:

1) SeptemberFest – A beer tasting event at the home
of David and Robin Frees.

Last year’s wine tasting event was a huge hit with all who attended.

Every guest received a number of Napa Valley wines to try
and the Frees family hosted an awesome dinner of fish, steaks, and salads.

This year, the SeptemberFest Beer event was canceled due to
the Frees’ Jack Russells who tangled with a rabid
raccoon and the resulting 90 day “quarantine” at the Frees house.

But, next year we plan a September Beer
Event with a local brew master who will
lecture while you taste.

If you’re interested in this purely social
event – no legal lectures -then leave a
comment below, call Lisa at 610-933-8069
or email David at dfrees@utbf.com to
be added to the list.

Vote for Your Choice:

In addition to the two above, we’re also considering the following
events.  Call, email, or comment below to cast your vote and
to be added to the invitation list.

2) The Estate Tax Law and 2012 -What Happens Now That
Everything You Know About Estate Planning
Might Be Wrong?

This will be a wine and cheese or lunch and learn to
deal with the pending changes at the end of 2012.

3) Free 20 Minute Will Reviews

Hard to imagine lawyers giving away free advice but it’s
true for a limited time and for a limited number of clients.

Throughout the year we sponsor will
review days.

Not sure if your will, trust, or power
of attorney
are still good?

Has a long time passed since
your last update?

You might be fine or you might need an update.  These short
appointments are free.  Call 610-933-8069 to get on the list.

Have another Suggested Event?

There are 3  ways to let us know and to
get on the guest list for any event suggested
and that we decide to host:

1) Leave a comment below,

2) Call 610-933-8069 and ask for Lisa
or

3) E mail David Frees at dfrees@utbf.com with any
question or event suggestions.

We’ll make sure to add you to
the invitation list for any and all of our
events that you want to suggest and/or attend.

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Are You The Executor of A Pennsylvania Will or Estate?

Want To Avoid The Pitfalls of Probate and The Personal
Liability When Executors Get Sued?

This new article and video reveals some of the best ways
for executors to:

Avoid Getting Sued and Being Personally Liable to Estate Beneficiaries

How Executors Get Paid Without Family Problems or Court Intervention

Get Information and Resources To Reduce Costs and Avoid Trouble

Click here for access to several brief videos for estate executors

For more information or our report: The Ten Most Common Mistakes
Executors Make and How To Avoid Them click here or call toll free
to 1-888-573-7407 and ask for Lisa or Tammy.  They
will make sure that you get a hard copy of the report.

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Want Your Estate Plan To Really Work ?
Most Plans Don’t.

If You Have A Clear Desire To Leave
A Legacy and To Protect Your Heirs
You Need Your Estate Plan or Will To Be Clear,
Loud, and Effective.

If You Want Yours To Actually Work, Then Here
Are The Must Know Strategies and Steps To Ensuring
That Your Plan is Clear and Really Works…

Really?
Most Wills and Estate
Plans Don’t Work?

True.

Most people, even many
wealthy people, don’t even
have a will.  And, of those
who do a will, most will fail
to carry out their wishes.

Why?

Because they fail to take the few additional steps
and the couple of extra steps that really make the
difference.

These steps to success aren’t a secret.

But they are unknown to many people and in many
cases, to their lawyers.

So if wills and estate plans don’t work, why bother?

It’s not that wills don’t work. They can and do.

It’s just that most people (even many affluent people)
don’t take the time, or spend the tiny bit more money
to make them work properly.

They just need a few strategies and a
few extra hours of time to make the plan  work
many times better, to save more money, and to
create much more effective protection.

And, to make matters worse, many people, and/or
their advisers often ignore the important step of
getting clear about what they want, who gets what,
when they get it, how they can use it, and how these
assets can be protected.

Finally, even if they take these steps, they often fail
to coordinate how they hold their wealth and assets with
what the lawyers and advisers have done in the estate
planning documents.

This article presents a brief review of some of the essential
strategies, and the specific steps designed to protect your
heirs from losing their inheritance to taxes, divorce,
frivolous litigation, fees and estate expenses.

Take just a few more minutes to read this article and
I can guarantee that you’ll be a much better consumer
of estate planning services, and that you’re estate plan,
will or trust will be many times more effective.

Let’s get started.

Do you have a business, stock ownership, a second home
or other assets that you want to leave to others or to a charity
as a legacy of your time and effort throughout your life?

Do you have a son in law or daughter in law that
has values that differ from your own?

Have you ever worried that a son or daughter might
get divorced and lose an inheritance to an ex spouse?

Do you care how and when your heirs and beneficiaries
get the assets?

How they are protected from lawsuits,
taxes, divorce and creditors?

Even if you think that you don’t care because your gone
when your kids inherit these assets, do you have any desire
to protect assets and wealth for grandchildren, charity or others?

So, if your definition of a successful estate plan is one that
protects your heirs from losing their inheritance, from taxation,
from will contests, legal expenses, and from other risks, then
you’ll want an estate plan that really works.

So what are they key strategies and steps to a successful will,
trust or estate plan?

Strategy #1  Get Clarity First -
About Your Assets and Your Wishes

This will save you time, money and, when coupled with
the right estate planning documents and your voice, will
send clarity to all involved.  It’s the opposite of mumbling.

This sounds simple and obvious. But, I have had 8,000 clients
over 25 years and I personally still see hundreds per year.
And more often than not, they come to me before they figure out.

As you can imagine, that’s not good for them and it’s hard for
us to create a plan that does exactly what they want when they
haven’t even figured it out.

And, if your married, this involves clarity and a uniformed vision
of two minds not just one. And, anyone married beyond the
honeymoon knows that agreement on all of the issues of estate
planning doesn’t always come easy.

So what’s the solution?

What are the specific steps you need to take?

First get a net worth statement together. Know what you have,
how you own those assets, and what they are worth.  With the
right kind of guide, this isn’t as hard as it sounds. And, it’s essential
information that any effective estate planning lawyer will need
to do the job for you.

And if you want a great estate planning tool, download my
Estate Planning Questionnaire or order my Definitive Guide to
Enhanced Estate Planning (for this guide, call 1-888-349-5016)

Second, married or single, start with your personal set of estate
planning goals.  Be clear about what you want.

How do you get clarity?  Ask yourself these questions.

What legacy do you want to leave?

Who gets what?

When do they get it?

Are there restrictions on the uses of such an inheritance?

Are you worried about divorce or lawsuits?

Do any heirs have special needs?

Do you have charitable intentions?

Are just children included or are there
direct gifts to grandchildren or others?

Do you have a charitable intent?

Who are the executors, trustees, guardians,
trust protectors, and other fiduciaries?

Are they the right people or institutions?

What do they have to do?

Now, if you’re married, you have to work with your
spouse to meld these two – often very different
sets of goals, aspirations, and if there are children
from multiple marriages, or a blended family, then
the issues are even more complicated as
both spouses will want to protect one another and their
children by this and/or prior marriages.

That brings us to the next and final step.

Strategy #2 Get the right attorney.

So how do you do that?

Start again by asking the right questions.

Most people want an attorney who is local and
convenient.  But, if all other factors aren’t met you
can often find an attorney who is right for you within
a thirty to forty five minute drive.

This extra investment of time should pay real dividends.

How?

Most lawyers don’t have extensive experience in estate
planning.  A general practice lawyer might be right for a
young couple just starting out.

But when you have a family
business, when you’re a n executive, a business owner,
or when you have extensive assets, vacation homes, or
hard to value assets, then more experience may be called for.

One of the best ways to find the right lawyer is to get a referral
from your own lawyer, accountant, or other friends or family
members with situation similar to your own.

In fact, most of our clients are referred to us by their lawyers,
affluent or wealthy friends, family members, or other advisers.

Of course, it’s great when someone who you trust
(or even more than one) gives you the same name and a glowing
legal recommendation.  That’s a great place to start.

Consider calling that lawyer for an appointment, but be sure
to ask if there is a consultation fee for the first appointment.
Many good lawyers offer low or no fee initial consultations.
But many good estate planning lawyers also charge.  It’s just good to
know in advance.

But, if you don’t get a clear referral, or, if you want to know
more about the lawyers in your area, then you can also use lawyer
rating services like www.Avvo.com or Main Line’s Top Trust and Estate
Lawyer Designation or SuperLawyer designation.
You can click those links to see a sample of my profiles at those sites
or to search for other lawyers with those ratings.

Finally, it might also be helpful, or reassuring to Google some
of the estate planning questions, and issues that are important to
you.

Does a law firm or lawyer in your area or community consistently
come up in the search results?

Do they offer great and informative information?

Do they represent other clients like you?

Do they have experience with special needs trusts (if you have a
child or grandchild with a disability or special need)?,

Are they experienced in the tools and techniques of wealth transfer,
such as gifting, GRATS (if you own rapidly appreciating assets),
Qualified Personal Residence Trusts
(if you have a vacation home or valuable primary residence),
ILITs (if you have or plan to buy life insurance)?

And, if this sounds too complex, don’t worry.

You may not need or want any of these particular tools.

But, what you do want is a lawyer
who knows all of the options.

Once you learn them, then it’s up to you to choose what
your estate plan looks like and how it works.

You want a lawyer that can discuss these options.

These are a few of the ways to make sure that you have clarity,
and get the right lawyer to help you and a spouse (if you’re married)
to devise a clear estate plan and the documents to carry it out.

Finally, you need to go the extra mile to make sure that your
plan is clear, that it works, and that it is designed to save your heirs
time and money, and if desired, that it also protects them
from lawsuits and divorce.

This means hiring a lawyer or law firm that will help you
to coordinate your assets and to structure your affairs to match
and to compliment the documents, tax clauses, wills and trusts
that make up your estate plan.

You’re also going to want a lawyer that can coach you on:

how to avoid will contests,

how to create estate planning memos

how to hold family meetings when explaining the plan,
the trusts, and the strategies is desirable.

There’s more to great estate planning than this, but if you follow these steps,
you’ll be well on your way to creating a successful, powerful, and
effective legacy and avoiding the will contests, taxes and litigation
that often results when families fail to plan.

Strategy #3 Take Action, Get It Done and Feel Better

Don't gamble with the future of your heirs - Get The Estate Plan Done

So stop saying “I’ll get to it tomorrow or
next year. ”

Get your planning done right and you’ll
make your spouse and heirs very happy.

You’ll check it off of the long to do list
and you’ll feel better – much better.

For more of our free reports, a free copy of our
Enhanced Estate Planning Questionnaire, or information about
Family Meetings call 1-888-349-5016.

David Frees Chairs The Trust, Estate and
Wealth Preservation Section of the firm.

He can be reached by email at dfrees@utbf.com
or by calling 1-888-349-5016.

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In the past month the estate tax has been back in the limelight.  As most of you know, in December of 2010 President Obama signed the Tax Relief Act of 2010. Prior to the ratification of the present law, the federal estate tax was repealed for the 2010 tax year.

For 2011 and 2012 we have the largest federal estate tax exemption at $5 million and the lowest federal estate tax rate of 35% in the last 50 years.

There has been rampant speculation as to what will happen when the present law is set to expire at the end of 2012.  Some say the estate tax will revert back to the 2001 exemption rate of $1 million and a tax rate of 55% others say this Act was the beginning of the end for the federal estate tax and still others believe the law will stand at the present exemption and tax rate.

Recently, President Obama addressed this very issue. On the final stop of President Obama’s three state Midwest bus tour in Alpha, Illinois someone asked about the future of the estate tax.  The President addressed her and many others’ concern over what will happen for 2013 and beyond.

The president explained that at the end of 2012 the estate tax does not have to go back to the 2001 rates and that there is a compromise being discussed that would put the estate tax exemption at $3.5 million per person for a potential total of $7 million per family. This mid level proposal would exempt a large segment of the population, but would still serve to tax the “wealthy.”  This statement by the President is by no means a definitive word on what will transpire at the end of 2012.  It is nice to get insight into his thoughts and to know that the topic is being discussed.

The final disposition of the Federal Estate Tax law will be important to you and the planning you have done under your will and/or trusts. Maintain your vigilance on this topic so you can ensure that your estate plan reflects the most current law and you get the most out of any changes that are made at the end of 2012.

As the war on the federal estate tax rages on let me know what you think?

Do you think President Obama’s compromise of an estate tax exemption of $3.5 million per person for a potential total of $7 million per family is fair?

Do you think the federal estate tax should be repealed for good or that the tax should apply to more people at higher rates?

To read the full transcript of President Obama’s answer to a question about the estate tax on the last stop of his bus tour in Illinois click here.

Click here to read our brief article U.S. Rep Ross Wants To Kill The Estate Tax

Stay tuned for updates on the future of the federal estate tax and what that means for you, your will and/or trusts.

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