Wealth Preservation, Trusts and Estates

By: David M. Frees III, Esquire Unruh, Turner, Burke and Frees with Law Offices For Your Convenience in Phoenixville, Malvern and West Chester

It is an honor to have been named as an executor of an estate, or as a trustee of a trust. The person who created the will or trust obviously had a great deal of faith and confidence in you as a person, and in your ability to get things done, quickly, efficiently, cost effectively, and to keep the peace among often competing interests at a difficult time in their lives.

But most trustees and executors are surprised to discover that those jobs are difficult, time consuming, and carry a great deal of exposure to personal liability. Now I do not mean, that be agreeing to be an executor or trustee, that you automatically become liable for the debts of the deceased. You do not.

However, there are many ways in which executors and trustees are exposed to liability for their actions and you simply must understand them before agreeing to undertake the job. Once you get started, it might be too late.

Please view this short video before being sworn in as an executor, or before agreeing to act as a trustee.

Click here for our report for Pennsylvania executors: The Ten Most Common Mistakes That Executors Make and How To Avoid Them.

For a private consultation with David Frees, in any of our conveniently located law offices, please call
610-933-8069.

For access to our free executor and trustee information and a courtesy discount on any fee arrangement, be sure to mention that you read this blog post when you call.

David M. Frees III, Esquire has a 9.8 AVVO rating of superb. Click here to read more about David M. Frees III on AVVO.

Share and Enjoy

Interested in more information about Social Security and Medicare benefits? The maze of social security benefits, survivor benefits, Social Security Disability benefits, and prescription drug benefits has become ever more complicated in recent years. So, at the request of many of our clients we will be bringing you a multi part series on government benefits with links and resources on:

Qualifying for Social Security Benefits
Information on Drug Benefits
Estimating Social Security Disability Benefits
Estimating Retirement Benefits
Estimating Survivor’s Social Security Benefits
Requesting a Social Security Statement
Applying for Retirement, surviving Spouse and Disability Benefits and more

In this first installment we help to answer the question: What Social Security
Benefits Can I Qualify for?

For more information click: What Social Security Benefits Do I qualify For?
This information is provided through BEST (Benefit Eligibility Screening Tool)

Getting information on the government’s various prescription drug plans can be daunting. Here is a place to get started.

Can I get Help with Medicare Prescription Drug Costs?

For more information on surviving spouse’ and survivor Social Security benefits, Social Security benefits estimators, disability benefits and more please register for the RSS feed (to the right) to get notice when articles are published here, or book mark the site and check in regularly.

David M. Frees III
Unruh, Turner, Burke and Frees
Law Offices in Malvern, Phoenixville, and West Chester
David Frees is highly rated by Lawyers and clients on AVVO

Call 610-933-8069 for wills, trusts, estate planning, asset protection planning, and elder law
assistance from David Frees or one of the lawyers in his department.

Mention this article to receive a free consultation, and free reports on topics of your choice.

Share and Enjoy

Are you a Pennsylvania resident?
Do you have, or are you interested in a domestic asset protection trust?
Are you unsure whether or not these self created trusts will be included in your estate for tax purposes?
If so, then you’ll be interested in the IRS’s new Private Letter Ruling.

The general rule, in most states,(including Pennsylvania’s trust law) is that you cannot create a trust (a self-created trust) and then claim that your creditors cannot reach it.

And, the IRS generally takes the position, that when you create a trust, it remains in your estate for estate tax purposes if you retain the right to continue to use the trust assets, your creditors’ can reach them under state law, or you retain the right to benefit from or to control the assets.

And, for that reason, the residents of Pennsylvania tha are interested in creditor protection have started creating trusts under the laws of Delaware and/or Alaska, Nevada or other states that permit these asset protection trusts.

However, there has always been some question about whether these new trusts (now permitted in 12 states including Delaware, Alaska, Utah and Nevada) are effective for asset protection and whether or not the Service would claim that they were to be taxed at death since they do often allow for the grantor or settlor (the creator of the trust) to get distributions from the trust under certain circumstances.

However, in a recent PLR (Private Letter Ruling 200944002) the IRS confirmed that an Alaska self created trust will not be included in the creator’s estate for estate tax purposes. However, the ruling is limited on it’s face to an Alaska resident using an Alaska trust. And, the PLR seems to also turn on the fact that under the particulars of that state law, the creditors could not reach the assets. However, in some states that have asset protection trusts, there are provisions that allow creditors to reach assets under certain circumstances that might still cause their inclusion in your estate.

So, if you have or intent to create a trust under one of the 12 states laws that now permit such asset protection trusts, you now, for the first time, have something from the IRS to help you to evaluate the effectiveness, the pros and cons of these trusts.

Now under IRC (Internal Revenue Code) section 6110(k)(3) Private Letter Rulings cannot be cited or used as precedent. And, these rulings are specific to the facts, the type of trust, the trustees, and many other factors. However, this one does expressly hold that the trust is not includable in the estate.

In summary, and according to Douglas Blatmacher this ruling provides planners and their clients “who have been hesitant to make large gifts (for fear of future needs)” – “with a strategy that not only provides asset protection, but significant potential estate tax savings while at the same time the comfort of knowing that if the settlor requires some portion of the funds transferred a trustee can provide for them.”

More specifics on this to follow as we analyze this important development.

David M. Frees III Asset Protection Attorney and Will Trust and Estate Lawyer
Asset Protection and Self-Settled Trusts
Trusts, Estates, Asset Protection and Wealth Preservation
Law Offices in Phoenixville, Malvern and West Chester

Our Will, Trusts, and Estates Planning Lawyers
serve clients in Chester County, Montgomery County
Philadelphia County and Delaware, Lancaster, and Berks and Bucks Counties

Share and Enjoy

Local Trust, Estate and Will Lawyer David M. Frees III recently appeared on the PBS interview program – Spotlight. As many of Frees’ business and estate planning clients already know, in addition to being a respected Pennsylvania attorney practicing in the areas of trusts, estates, and wills, David Frees is also know outside of the practice of law as an expert in the field of family and inter-generational communications skills.

His recent interview included discussions and techniques from two of his books, The Language of Parenting: Building Great Family Relationships at All Ages and his essay on business communications skills – The Language of Abundance in Elite Books’ Einsteins Business. The techniques and strategies reviewed in these interviews included discussions of both family and business communications secrets.

To View Part One of the David Frees Interview (6 Minuets) on Family and Business Communications Skills here.

Frees was quoted as saying: “Those two skills are not as different as they might at first appear. There really is quite an overlap between my practice of law and my study, speaking, and writing on the topics of business and family communications skills.”

Frees added “Most of my clients really value the knowledge and experience that I bring to the estate planning process. I know how families communicate and I can bring this knowledge to their wills and trusts and attempt to avoid disputes.”

Because many of Frees’ clients are also business and family business owners, his knowledge of marketing, business, and family communications skills are also valuable to his clients.

“Quite a few of my clients have worked with me to grow and to pass on their businesses. Many families and business people just work with me to develop their estate plans and estate planning documents, but many others also value my business and marketing background and my skills as a business problem solver.” “I am always happy when I can help clients in multiple ways to not only pass on their businesses but to help them to solve lifetime problems.”

In fact, Frees’ firm, Unruh, Turner, Burke and Frees and David now represent the second and even the third generation of some families and some family businesses.

“That is really quite a nice compliment.” According to Frees, “When more than one generation of a family or family business continues to use our firm, we feel that we have done a good job for them. But, we are always looking for ways to further enhance our value to the client.”

David M. Frees III is a partner of Unruh, Turner, Burke and Frees and can be reached at
610-933-8069.

Frees provided the following additional resources for our readers:

Estate Planning Resources and Reports
Reports For Executors
General and News Updates on Wills, Trusts, Estates, Asset Protection, and Elder Law

These an many other resources are also available from Amazon and many resources can be read on the Amazon Kindle.

Share and Enjoy

Are you considering making end of year estate planning gifts to children, grandchildren or great grandchildren?

Curious about how much you can give without paying gift tax? This brief video tells you how much you can give without paying taxes.

Want to avoid the mistakes that people make that can actually cost your heirs money?

Need to know whether or not you need to file a gift tax return? Click here to get your answer to the question “How much Can I Give Without Filing A Gift Tax Return?”

I just published an article on The Five Most Common Mistakes that People Make with End of Year Estate Planning Gifts, and How to Avoid Them. Be sure to read this article and the two additional artciles on gifting that will be published in the next few weeks.

Make sure that your gifts work, that they count, and that you maximize them without making some of the horrible mistakes that can cost your heirs dearly. Read: End of Year Gift Tax Mistakes and How To Avoid them.

David M. Frees III
Offices: West Chester, Phoenixville, Malvern
Serving Chester County, Montgomery County and
All of the Counties in the Greater Philadelphia Area

For appointments call: 610-933-8069
dfrees@utbf.com
Please leave your questions and comments below.
Thank you for being a reader of our legal blogs and
publications.

Share and Enjoy

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.

Share and Enjoy

By: David M. Frees III – Trusts, Wills, Estates and Estate Planning

Every long term financial and estate plan deserves your patience and your attention. But, you deserve long term results, greater security and growth of your wealth and the legacy you plan to leave.

We post ideas and information to help here and on our site focused on estte planning, wills, trusts, and estate administration for executors PaEstatePlanners.com.

Click here for more information on when and how quickly to reenter the stock market in turbulent times. This post includes a link to a great article by Bernstein Journal on just this topic.

Steal this six page article right now and talk to your advisers to make sure that you’re taking only the risks that you want to take.

Remember to book mark this page, and to leave your comments, questions, and ideas below by clicking on comments.

David M. Frees III
dfrees@utbf.com
Unruh, Turner, Burke and Frees
with offices in Malvern, Phoenixville, and West Chester
Serving Selected Clients In: Wayne, Malvern, Berwyn, Chester Springs, Exton
and many surrounding communities through out Pennsylvania

Share and Enjoy

This article By: David M. Frees III dfrees@utbf.com
Trusts, Estate and Wealth Preservation Section Chairman
Unruh, Turner, Burke and Frees 610-933-8069
With Offices in Phoenixville, Malvern and West Chester Pennsylvania

Many of our clients know that having an integrated financial and estate plan makes the difference when you want to both build assets for yourself and to protect assets for your heirs. And, many of our clients have financial advisers while others are self directing their investments. Either way, ultimately , you are responsible for your own financial health. For that reason, when we come across a great article, resource, web site or book, we call them to your attention.

For two great new web sites filled with financial information and a great resource for finding and reviewing the annual reports of companies that you own or are thinking about buying the stock just click here to see my recent article on new sources of financial and business data and information.

unruhturnerburkefrees_09-32

Want to know the ten most common mistakes that executors make and how to avoid them?

Call 610-933-8069 for a free report on How To Avoid Executor Mistakes or
for an estate planning conference with David M. Frees III.

Share and Enjoy

If you are over 70 1/2 and have an IRA you may have missed the change in the law that said that you don’t have to take required mandatory minimum distributions this year. well, if you have taken your RMDs for this year and want to put them back, then there is some good news for you.
Click this link to see my brief new article on an important legal change about IRAs and RMDs (required minimum distributions) that might make a big difference to you.

Remember, that as the end of the year rolls around, to check your IRA, 401(k), and life insurance beneficiary designations to make sure that they are still current and that they match your planning. You will thank us if you find your ex spouse or the wrong beneficary listed.

David M. Frees III, Esquire
Are you over 70 1/2? Do you have an IRA?
Enhanced Estate planning might be better but
not much more expensive than a simple will.

Discover how you can protect your legacy and your
heirs from law suits, divorce and, death taxes.
610-933-8069

For a Free report visit our blog at www.PaEstatePlanners.com

or click the images below.

Share and Enjoy

By: David M. Frees III dfrees@utbf.com
Unruh, Turner, Burke and Frees
Chairman: Trust, Estate and Wealth Preservation Section
With Offices in Phoenixville, Malvern, and West Chester Pennsylvania
610-933-8069
Senator Edward Kennedy’s will was recently probated in the probate court in Massachusetts.  The document itself is very short.  He had previously placed many of his assets into a variety of trusts and blind trusts (because of his public service and the possibility of conflicts of interest) where another party managed those assets.

However, all of his assets were not previously added to these trusts or the probate of his will would not have been necessary.  Because he still had assets in his own name, the will was offered for probate.  This gives us an opportunity to review some of his estate planning strategies such as who he selected as executor and trustee and many others such as the types of trusts used.

For example, Kennedy was married for a second time and his wife was a lawyer.  However, he named a non family member and his son Edward Kennedy Jr as a substitute.  More on this later.

We also know, that he created a revocable living trust in 2006 and that the assets remaining in his estate are to be added to that trust and distributed by the trustee of that trust.  In many states, this type of trust arrangement offers a number of advantages – including a heightened level of privacy.  While such trusts are not widely used in Pennsylvania (because they do not offer all of the benefits that they do in other states that have expensive probate fees or difficult probate systems) they can be beneficial in many circumstances.

Because the will was probated, we also know that he appointed his friend Paul G. Kirk, Jr. as executor and as trustee.  He named his son as a substitute and not his second wife.  It also appears that he may not have made provisions for his wife’s children (his step-children).

If you are in a similar situation and want more information on the role of the executor and the most common mistakes they make and how to avoid them, please click here to get our free report:  The Ten Most Common Mistakes Pennsylvania Executors Make and How To Avoid Them.

Also, for a report giving more details about the types of strategies and techniques used by the Kennedy family and many other wealthy and moderately wealth families to pass on and to protect assets.  Please click here to request my report: Enhanced Estate Planning.

The use of trusts often make estate challenges more difficult and expensive.  Furthermore, wills will often contain a special clause called an interrorum clause or “no contest clause.” This clause discourages will challenges by revoking the gift to anyone who challenges the validity of the will and/or in some cases trusts or other ways of passing wealth.  While this clause does not appear in the Senator’s will, a similar clause may be in the trusts.

As a practical matter, Senator Kennedy’s will is a self proving will.  In Pennsylvania we have a similar law that allows you to make your will admissible to probate without having the witnesses appear in court.  However, you must verify that in addition to being signed at the end of the will, that the document also contains a special notary “affidavit” signed by the person making the will as well as the witnesses who must also sign in the presence of the person making the will, one another, and the notary.

As for the size of his estate, that will not be known until the executor files an inventory which is required by Massachusetts law.  Even then, the picture of Kennedy’s wealth will be incomplete as presumably, many of his assets were already in trust.  We also know, that because he was a US Senator, that many assets were held and managed in blind trusts created during his lifetime.

As more details of the Kennedy estate plan and planning strategies become available we will report them to you.

David M. Frees III

Chairman, Unruh, Turner, Burke and Frees

Trust, Estate, and Wealth Preservation Section

610-933-8069

dfrees@utbf.com

Share and Enjoy