Wealth Preservation, Trusts and Estates

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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Post By Douglas L. Kaune, Esquire Email: dkaune@utbf.com Phone: 610-933-8069

One of the most frequently neglected parts of the estate planning process is the proper use of beneficiary designations on life insurance, IRA’s, 401k’s, annuities and other similar assets. Failure to properly prepare and update a beneficiary designation can significantly change the disposition of assets someone intends to be carried out by his or her last will and testament.
I recently represented the Executor of a Chester County PA estate. I have changed the facts, but have maintained the essence of the issues for our discussion. The decedent was survived by a 18 year old son. One month before the decedent died, he signed a will designating a trust for his 18 year old son as the sole beneficiary of his estate believing that this was all of the “estate planning” he needed.
Unfortunately, five years before his death, the decedent submitted a beneficiary designation for his $600,000 life insurance policy naming his then 77 year old mother as a primary beneficiary. I have been told that the expectation was that the decedent’s mother would “watch over” the money for her grandson. The decedent’s mother predeceased him and was not available to collect the insurance proceeds. The contingent beneficiary, the decedent’s brother, is now in line to collect the proceeds from the policy. He has informed the family that he is having financial difficulties and has no intention of sharing the insurance proceeds with the decedent’s son or anyone else for that matter. WOW! This has sent shock waves through the family and significantly diminished the security of the decedent’s son. Although likely contrary to the decedent’s true intention and morally questionable, the decedent’s brother is legally entitled to keep the $600,000 in insurance proceeds and the surviving son does not get one cent.
This case is a flashing neon sign for everyone to check their own beneficiary designation forms and make sure that they are properly integrated into the estate planning process. The decedent should have created a new beneficiary designation form naming the son’s trust under the will as the beneficiary. This would have allowed the trustee to claim the proceeds and then manage the assets for the son until a later date. A will is not always enough!!

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There is currently a bill before the House Ways and Means Committee that would radically increase the federal estate (also known as the “Death Tax”).

Are you trying to pass on assets, investments, family land or farms, or a family business? If you are, then things might be about to get a lot rougher. Many middle class and affluent families have real estate and businesses that have a high value but are very illiquid.

Many of these families consider themselves to be blessed, they don’t consider themselves to be rich and in fact, live very simple lifestyles.

These families often pay a high amount of taxes during their lives but hope to pass on assets without a higher estate tax. However, the increase from $2 million dollars to $3.5 million dollars might not be enough to help these families because of a few provisions in bills like this that take away long standing tax payer rights and techniques (such as minority and marketability discounts for family limited partnerships) and impose potentially much higher taxes on many families.

For more, click here to read my commentary and the news release on this new pending bill.

I will continue to keep you posted on changes in the tax law that might have an effect on your planning.

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

David Frees’ AVVO rating is SUPERB!
For more updates follow David M. Frees on Twitter or on Facebook.

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How meeting software and calendar coordinating web sites make your life a little better, your relationships stronger, and your estate and asset planning more effective.

Have you found that the pace of your life or your business is so hectic that even getting together with family, friends, and for business is getting harder and harder? And when we fail to get together life is less rich. We have fewer opportunities to do business, build trust, and teach the next generation what they need to know to survive and to thrive.

The experts keep telling us how lucky we are that we can communicated electronically, and by computer and that these tools allow us to communicate more conveniently and more often. True, an email to or from a child, grandchild, business partner, prospect, or old friend is better than not connecting at all. But, great family relationships and great businesses are founded on that good old fashioned get together were we can see one another, talk, and when appropriate, give a hug (this has been outlawed in many states).

As for the electronic communications, even finding a time when everyone is available for a conference call, a group web meeting, or a webinar can also be daunting.

Well I’ve recently done some research to help you to make that process a little easier. If you don’t use an electronic or web based calendar then I encourage you to do this the old fashioned way. Pick up the phone and call a loved one, friend, or family member that you have been missing. Have a chat, set up a time to meet and do it.

But if you or the people that you might want to meet with use electronic calendars on Mac or PCs, then you’ll want to read more in the article I just published. This lists a number of simple free and easy to use websites that allow you to find that perfect date when everyone can be there. So, whether you want to coordinate a family reunion, anniversary party, poker night, conference call, staff meeting, or sales call just click here to read more about meeting and calendar coordinating web sites.

Want to know more about family communications skills? Learn about the skills that great communicators use to influence and communicate with their children and grandchildren. David Frees has been called the Grand Master of family communications skills by Steven Forbes, Editor-In-Chief of Forbes Magazine. Click here for the book. or visit Amazon.com to get the book.

David M Frees III, Esquire
David Frees is a Pennsylvania attorney whose practice focuses on inheritance and estate tax planning, asset protection planning, and representing estates and executors throughout Pennsylvania and with offices in Malvern, West Chester, and Phoenixville

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Yes. Believe it or not the current economic down turn presents some serious estate and asset protection planning advantages.  Now I never encourage clients to give away or to give up control over assets that they might need.  But, once your core assets reach a point where you feel secure in maintaining your lifestyle, the excess may be available for outright gifts, gifts in trust, gifts to UTMA accounts, or to fund 529 plans.

And many stocks values are quite depressed now.  So, they can be transferred with little or no tax consequences.  Then, when the rebound, the growth will benefit your heirs and will not be taxed in your estate.  Likewise, real estate such as shore or vacation home can be transferred at historically low values and trusts such as QPRT’s and GRATS will use historically low interest rates.

For more information David Frees can be reached at 610-933-8069.

His email is dfrees@utbf.com

Appointments and telephone conferences can be set by contacting Donna, Tara, Denise or Whitney at 610-933-8069.

Please feel free to comment below.

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