Wealth Preservation, Trusts and Estates

David M. Frees III Law Offices in Phoenixville, Malvern, and West Chester

Today, the hose passed a bill extending the federal estate tax into next year and beyond. The bill passed 220 to 200 with all support coming from the democratic side of the house. This bill keeps the tax rate at 45% and exempts 3.5 million dollars. A married couple can still protect 7 million dollars of assets and life insurance, but it will still take some careful estate planning.

This is just a quick update. The Senate will now have to take up the issue and is likely to change the bill before the end of the year. We will keep you posted.

David M. Frees III

If you estate plan is more than two years old, it may be desirable to change or update the plan.
For an appointment to review or update your plan please call Donna Brownback or Denise Fox at 610-933-8069 or email dfrees@utbf.com and mention this article to receive a discount on your planning.

Unruh, Turner, Burke and Frees maintains offices servicing the entire Philadelphia region, including the Main Line, Ardmore, Bryn Mawr, Berwyn, Paoli, Chester Spring, and the surrounding areas. The firm has a number of probate, estate planning, and trust lawyers.

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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

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Are you a Pennsylvania resident? Do you know whether or not your will controls or the beneficiary designation for your life insurance, annuities, and other non probate assets controls who gets those assets?

I recently ran across this great little article on the important question of which controls – The will or the named beneficiary designation?

This particlular article is based on UTAH law but the question (and the answer) is pretty much the same under Pennsylvania law. In almost every case, the beneficiary designation on life isnurance, retirment plans, and bank and stock accounts will control. So if you have changed your will, it is also essential to make sure that your beenficiary designations are coordinated with your estate planning.

One of the most common estate planning mistakes is the failure to coordinate what the will says with how the assets are actually owned and with the beneficiary designations.

The take away? Make sure that your estate planning attorney helps you to coordinate the beneficiary designations with your documents. Make sure to ask if your tax payment clause under your will is appropriate given the way you hold and dispose of non probate assets through such beneficiary selection.

David M. Frees III Esquire
David M. Frees Chairs the Trust, Estate and Wealth Preservation Section of
Unruh, Turner, Burke and Frees
He has offices located conveniently in Malvern, Phoenixville, and West Chester Pennsylvania

The firm serves clients doing wills, trusts, estate and asset planning in Chester County, Montgomery County, and Bucks and Philadelphia County.

David Frees has been selected as “the Best” Trust and Estate Lawyer on the Main Line according to Main Line Today Magazine.

610-933-8069
dfrees@utbf.com

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Off shore accounts have been getting a pretty bad rap in the news media with the leaders of both America and Great Britain making multiple appearances to clearly establish that tax havens are just for the big corporations and illegal players seeking to evade taxes and engage in unlawful activities.

The attached article examines the possibility that there might be numerous legitimate and strategic reasons for American’s to hold assets in foreign jurisdictions and that so long as they comply with American tax law there is nothing illegal or immoral about such planning.

As you know, we try to bring you a variety of thoughtful pieces on issues involving asset protection planning and tax and estate planning. And, while the article entitled Off Shore Accounts a Necessity has a clear bias in favor of such planning, it is a great summary of the many reasons that ordinary and affluent Americans have and will continue to establish off shore banking relationships.

In these jurisdictions, the laws are such that even if a spurious lawsuit succeeds against you or your business, the process of collecting the judgment against the foreign held assets is so onerous that a plaintiff might decide not to appeal or to stop pursuing them.

For more information, about asset protection planning, and how affluent American’s legally use off shore accounts and trusts, click here.

David M. Frees III
dfrees@utbf.com
Practicing in the areas of trusts, estates, and asset protection and estate planning.

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If you have accumulated any wealth during your lifetime, and you have the desire to pass all or part of that legacy on to your heirs, you have probably been reading quite a bit lately about the unique planning opportunities that exist today.

And, it is true, that there are some conditions in the market place that have created unique and almost unparalleled opportunities to pass wealth to the next generation.

Historically low interest rates, real estate values, and temporary impairment in the value of otherwise strong family businesses mean that you can use a variety of techniques to pass stock, land, income producing assets, and interests in real estate to your heirs at a fraction of the long term value of those assets.

These conditions are not likely to continue, and there is a move afoot in Washington to eliminate some of these valid planning tools.

So planning now may be important. But, many people rush into these techniques without careful consideration of a number of important factors.

First and foremost, most of these techniques involve some aspect of irrevocability. It is therefore essential to review your current and long term cash flow needs to ensure that the gifting techniques will not impair your own security and lifestyle.

Care must also be taken to make sure that the technique or techniques used are the best match possible under all of the assumptions and current conditions. For example, should a GRAT be used? What happens if the trust is a grantor trust and you remain liable for the taxes? How does that impact your retirement cash flow?

The short version is that the time for action may be now and the need for speed is present. But, these techniques require you to carefully analyze your current estate, your cash flow and lifestyle needs, the risks of the marketplace and the best technique or combination of techniques for you under all circumsatnces.

David M Frees III is Chairman of the Trust, Estates and Wealth Preservation section of
Unruh, Turner, Burke and Frees

dfrees@utbf.com

His Avvo rating is “Superb” 9.5

For more information on estate planning, asset protection, protecting heirs
from divorce and litigation and related topics call Donna Brownback at 610-933-8069 for
an appointment or teleconference with David Frees

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This article was posted
by Douglas L. Kaune, Esquire
Estate Planning, Estate Administration,
Wills, Trusts, Elder Law
Unruh, Turner, Burke & Frees
Phoenixville, Malvern, West Chester
Pennsylvania Attorney
dkaune@utbf.com PH: 610-933-8069

If you are going through or have recently completed a divorce proceding, you should reassess your will, trusts, beneficiary designations, power of attorney, life insurance, medical power of attorney and living will. It is likely that all of these documents will need to be changed to insure that the proper beneficiaries, executors, trustees and guardians are named in the documents. For a more detailed list of the steps you should take to protect you, your estate and your beneficiaries after a divorce you can review this article.

Douglas L. Kaune, Esquire
Serving the counties of Chester, Montgomery, Delaware, Berks, Bucks and Philadelphia

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I was fortunate to be a speaker last week at the same conference as Donald Trump’s daughter, Ivanka. And, better yet, the topic of Ivanka’s speech had to do with how she was raised and why she works so hard despite her family’s wealth.

Now as most of you know, the passing of wealth between generations and the way in which we raise and prepare our children to receive wealth, however much or little, is a topic of concern to me and to my clients. It is a concern to me as a parent. It is of interest and concern to me as the past Chair of a community foundation that supports family philanthropy, and as a lawyer that advises clients on these issues, and it is of concern to me as a citizen of a great and wealthy country that must grapple with the issue of how our heirs and descendants will live in a complex world with a disparity of wealth and resources.

It is one which I write about frequently, and think about daily with clients and for myself.

So, I was delighted to be at this conference with my youngest son Alex and to find Ms. Trump to be a humble, hard working, and thoughtful woman who thinks about this topic. She is building her familiy legacy by extending the brand to new areas where she and her brother are responsible for the results and she days that her dad would fire her if she gave him cause.

She attributes, at least in part, her work ethic to the fact that her parents instilled in her a duty of self reliance. She said that she never ceased to be amazed by the younger generation of her wealthy peers who talked about flying in “their jets.” “Those jets belong to their parents not to those children,” observed Ivanka.

She is grounded, writes thank you notes, writes handwritten letters to people she respects and from whom she wants to learn. And, while she correctly observes that her name might get more recognition she encouraged others to simply try it. To be thankful, to write to others and to learn from those they respect. That’s good advice for any person, at any age, and at any level of wealth.

So, if the Trump family can achieve a third generation committed to work, to business, and to preserving the family legacy and at the same time being a great person, then I have high hopes for thoughtful clients on this issue.

If you have any questions about my visit and Ivanka Trump’s speech, just leave a comment below or email me at dfrees@utbf.com

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

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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 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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Completing your Enhanced Estate Plan(TM) our proprietary process (often consisting of a Will, Power of Attorney, Advanced Medical Directive and one or more Trusts), is often viewed as the end of the process.

But, smart clients and estate and asset protection planners know that there is still a bit more to do.

I can hear it now, “No! How can there be more to do? I just spent all of this time and energy, paid a lawyer money and now he tells me that there is more?”

Actually, the remaining process can and should be simple. And, a good lawyer can help you with forms, suggestions and checklists.

But, taking the extra time to organize the documents in one place (we do that for you and even provide a legal binder), to draft memos, alert your executor or trustee of certain facts, make sure that the beneficiary designations are right, and to carefully store and preserve your passwords and electronic data, can save your heirs and family time, fees, money and energy.

Indeed, properly drafted memos and instructions can also avoid family disputes and more problems.

Read my article and the related Wall Street Journal piece on proper estate planning and organization by clicking here.

For more information for executors and trustees, order our great report on the 10 Most Common Mistakes Pennsylvania Executors Make and How To Avoid Them or our series of materials on Enhanced Estate Planning.

David M. Frees III, Esquire
Estate Planning, Trust, and Asset Protection Lawyer
Offices in Chester County and serving the State of Pennsylvania
David M Frees III, Esquire
David’s AVVO rating is Superb! Click here for more information.
610-933-8069

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Firm Estate Planning Blog: http://www.utbf.com/trust-estate
Executor and Estate Planning Blog: http://paestateplanners.com/blog

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