Wealth Preservation, Trusts and Estates

I know that the title to this article: “Resources for Building and Protecting Your Estate and Your Estate Plan” is both long (imagine that, a long winded lawyer) and apparently silly.

How do I know that it sounded silly?

This is a suggestion for a resource sent to me by one of my sons when he read the draft of the title-

“Get a battle team then when hordes of marauding lawyers attempt to raid your party you can fight them with karate and such techniques.”

Well Josh, true enough. But I really do have some great resources for the readers that don’t maintain “battle teams.” but who want to avoid financial fraud and marauding hoards of lawyers.

I have always maintained, that an estate plan that focuses only on what happens to your assets when you die is, while important, a boring estate plan and one not likely to be of much help to you and your family while you’re alive.

For that reason, many of the resources and ideas we provide are designed not only to help you with your will and trust, but also to help you to build, protect and to maintain your assets and your lifestyle.

In that vein, I recently came across a new government blog site that seems to have some great information for consumers.

In this installment, I have selected a few resources for you related to avoiding financial fraud.

Just click the links below for more on each topic related to protecting yourself from financial fraud:

Notices and information about types of fraud

Protecting yourself from identity fraud

Protecting Yourself from tax fraud and other types of fraud

How to report fraud

Keep an eye out for more installments of resources to build and protect your assets and your estate plan right now.

David M Frees III is an attorney with law offices in Phoenixville, Malvern, and West Chester Pennsylvania serving the communities of the Main Line as well as the West Chester, Exton, Downingtown and surrounding areas.

Frees is a partner of and Chairs the Trust, Estate, and Wealth Preservation Section of Unruh, Turner, Burke and Frees – Telephone and in person consultations are available by calling 610-933-8069.

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By: David M. Frees III Pennsylvania Trust and Estate Lawyer

Is A Bank Ever The Best Trustee?

There are many reasons to set up a trust (either during life or under your will). Some people set up a trust to protect a young child from having access to money at a young age. Others use a trust to protect and to provide for a child with special needs.

Many trusts are established to provide income and assets to a surviving spouse and then to pass on the assets to family members such as children and grandchildren.

Some of our clients set up GRATs and or nursing home trusts to move assets to the next generation, or to protect them from being lost to a nursing home.

And, with each situation where a trust is the best solution another equally important question arises: Who should be the trustee of this trust?

There are many possible trustees to choose from. For example, you can select the following a trusts of your Pennsylvania trust:

you
a friend
a family member
a professional adviser
a bank or trust company

However, depending on the purpose of the trust, you may need to limit cases where you name yourself or family members as trustees since a trust is often taxable or reachable by creditors in a lawsuit, when a family member, spouse, or parent is the trustee. In fact, there is a specific section of the IRC (Internal Revenue Code) (Section 672) that will cause such trusts to be included in a beneficiary’s estate and then taxed.

So, it may be that you want to avoid family members or at least make them a co-trustee. Also, family members are often unaware of all of the new rules which apply to trusts under the UTA (Uniform Trust Act) and the Prudent Investor Rule. Family members also often fail to file income tax returns for the trust or to keep the trust records properly. Accordingly, family members might actually end up exposed to liabilities and law suits that they never anticipated.

But, if you want to avoid using a family member as trustee, what are the alternatives?

Friends, Advisers, and Banks.

And, while many families have family members and friends that will undertake the risks of being a trustee, and who will seek the right advice to make sure that they follow the new legal compliance requirements of trustees, it may be that a bank or trust company offers a viable alternative and may be the best choice.

Banks are well insured, are highly regulated, have procedures and specific policies, and they regularly file the returns and keep the records accurately.

I know that almost everyone has heard about a beneficiary that did not like their bank trustee, but banks can be the best choice and that can be especially true when a family member or friend is appointed as a co trustee or a trust protector and can fire and hire bank trustees to ensure that the bank is charging appropriate fees, getting good investment returns and is looking out after the beneficiary.

Of course, there are advantages and disadvantages to each approach. But make sure that you discuss trustee selection with your lawyer and accountant because the wrong choice of trustee can mean that the trust will not work to accomplish your tax and planning goals.

For more on trust protectors and trustee alternatives click here and watch for upcoming posts.

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

P.S. If you would like to create a trust now or under your will, please call

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As fewer and fewer young Americans choose to enter into marriage, the issues of estate planning become more complicated. Since married couples in Pennsylvania benefit from a zero tax rate on inheritances, and on protections for the surviving spouse under the state intestate law, that do not exist for unmarried couples, making sure that you have done your planning is more important than ever.

For more information on estate planning for unmarried couple click here.

David M. Frees III
David Frees is a local lawyer practicing in the areas of trust, estate, estate planning and asset protection law. He has law offices in Malvern, Phoenixville, and West Chester. His firm is Unruh, Turner, Burke and Frees.

To update your estate plan, will, trust or living will please call 610-933-8069 for a consultation by phone or in person with David Frees. Pennsylvania residents can qualify for a free consultation and a reduced fee by mentioning this code: UTBF2010.

Communities Served: Malvern, Phoenixville, Downingtown, Exton, Collegeville, Devon, Berwyn, Ardmore, Wayne, Chester Springs, Edgemont, Willistown Township, Paoli, and many surrounding areas.

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Are you wondering:

Should I update my estate plan, will or trust?

Do I need a new power of attorney?

I have over 3.5 million dollars how does the affect me?

I have under 1.0 million dollars. What now?

To Roth or not to Roth?

What is happening to the estate tax?

What if I leave the old formula will in place is my spouse disinherited?

If you need more information on any or all of these click here to read this great review of the current situation by CBS.

Here is the WSJ Smart Money Article. Click here to read more.

David M. Frees III
Attorney David Frees is available at 610-933-8069

For an appointment to update your estate planning, or for consultation regarding
duties as an executor or trustee, please call Donna, Denise, or Beth at 610-933-8069.

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Attorney David Frees Presents Financial, Legal, and Lifestyle News and Tips

One of the best ways to safeguard the inheritance that you leave to the next generation, is through trusts. However, teaching children and grandchildren to be financially savvy is the true key to growing and maintaining family wealth across the generations. Here is a great and mature web site filled with up to date financial news and daily videos that I use to stay informed and as a teaching tool and resource for the kids.

For great financial news and resources visit www.Bloomberg.com.

David M. Frees III
Attorney David Frees has attained the highest AVVO rating of 10.0
dfrees@utbf.com
610-933-8069

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This is the time of year when we make resolutions and think about a new start. In that spirit, here are a few ideas for our clients, friends and advisers, that are worth considering for this weekend and for making your life a little better this year and beyond.

Now these are more related to making your life a little better than just focused on legal issues but we hope that you’ll enjoy and use them.

Here are just a few things that you can do, starting right now, to improve your business and/or your life. Some are quite simple and others take a little more effort. But all of these little ideas have a proven ability to make life better.

First, some big picture strategic ideas. Then, some very practical ideas for the new year.

Happiness and luck favor the prepared and open mind as well as a body in motion.

1. Even before you have finished all of your resolutions, start to take action right away even if only to set deadlines to do things. Action yields results and is the single most important factor in separating success from failure.

Happiness is a decision but can be affected by small things. According to the experts:

2. Get enough sleep, exercise (which makes sleep better) and make your bed- which your mother always told you to do. Apparently, this little thing shows your mind that you’re making positive changes.

3. Do you often feel overwhelmed? Again, some time management experts and many psychologists say: Make a list of three things and three things only that you WILL accomplish each day and write them down in the morning. Just three things. make them the most important and then construct your day so that you do them. Often, we have massive lists that just keep growing. That doesn’t make your life any easier so break off a manageable piece. Get three things done.

4. Don’t just simplify your TO DO list- simplify your life as well. It is amazing how each little bit of simplification makes life better. Have you ever had so much stuff that when you needed something, you couldn’t find what you needed? Was the stuff worth having? If you want to learn more about the process of simplification read a little of this blog each day. http://www.zenhabits.com

Good with the strategic stuff?

Try these on for practical life enhancing things:

5. Register your name, and any children or grandchildrens’ names as a domain name. For example, I bought my daughter www.JamieFrees.com so that she can also own Jamie@JamieFrees.com. To get the same discount deal that I do you can click here to register names as domain names.

And remember, that if the name is already taken, you can add a hyphen (www.Jamie-Frees.com) or add the middle initial. If you want more information you can also read my blog article on reserving children’s domain names by clicking here.

6. Check your credit report for identity theft, or any other
misinformation or errors that could harm your financial status and
options. You are entitled to one free check a year at
www.annualcreditreport.com.

7. While you’re at it, make photocopies of your wills and trusts, deeds, car registration,
credit cards, passport, drivers license, social security card, birth certificate, and other
important papers and keep these in a safe deposit box, off site, or at least in a fireproof
box rated for at least two hours.

8. Back up your computer, your other hardware, and your life. Most people don’t take the time to do this, and regret it later. But, there are a few things to do that can save you hours of time and millions of dollars of lost ideas, work, and effort.

First, copy your entire computer hard drive onto an external drive and do that today or tomorrow.

Consider using Mozy to do an external and regularly scheduled back up of your computer. And, for Mac owners – like me- start using Time Machine or SuperDuper.

Make sure that you also back up your family photos on an external hard drive, and consider using a service like Snapfish.com or Shutterfly.com

9. Want to start buying and eating healthier foods. Here’s a free e-book from the government on how to eat healthy:

http://www.health.gov/dietaryguidelines/dga2005/document/pdf/DGA2005.pdf

10. Is one of your resolutions to do more recreational travel? Consider automatically getting last minute low cast fares delivered right to your email account. This is especially good if if you’re retired and have flexibility. If you’re a client, you probably live in the service area of the Philadelphia International Airport – a US Airways hub. If so, you can sign up for US Airway’s E-Saver, and/or Southwest’s Ding, or any other airline program that offers last-minute travel options so you can take quick weekend getaways whenever you feel like it. Fares on these programs can be as low as $40 round trip.

11. Make an appointment to get a full physical checkup from your physician and a good dental examination with ex-rays from your dentist. Also schedule an eye exam with an ophthalmologist.

12. If you have a young family member that has decided to become a millionaire on their own, you can help them to find out exactly how much they want to be worth and why. To analyze how much they need to save and then how to invest try this tool recommended by author Neil Strauss, the author of Emergency-This Book Can Save Your Life. http://partners.leadfusion.com/tools/kiplinger/savings01/tool.fcs

13. Make the start of the new year a time to review your estate plan and wills. For issues to consider in reviewing your will and estate plan click here.

14. Enter to win a great book for yourself or a child or grandchild. Leave a comment below with more suggestions for the new year. Or, enter to win a green reusable coffee cup by leaving a suggestion for how we can be even more environmentally friendly at the firm this year.

OK. That’s plenty for now.

Have other ideas, and resolutions that you want to share?

Leave a comment below and be entered to win a prize.

I have a great book for the winner who has the best and most practical life advice, resolution, strategy or tactic. Share one now and then get going. Enjoy 2010 starting with right now.

David M. Frees III, Esquire
David Frees has achieved AVVO’s highest possible lawyer rating.

610-933-8069
dfrees@utbf.com

P.S. Win a copy of Good To Great, or The Richest Man in Babylon. Lease a suggestion or comment below.

P.P.S. I cannot resist posting a photo of the Frees kids having a night out with Mom and Dad.

Enjopy your family this year and post a comment below.

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We would like to take this opportunity to say “Happy New Year and Thank You” from the entire firm and from the Trust, Estate and Wealth Preservation Section of Unruh, Turner, Burke and Frees.

We know that in this area of the state of Pennsylvania, you have many choices for your trust, estate planning, and probate lawyers as well as for your elder law needs.

For that reason, we both thank you and want to let you know that we have once again, in preparation for the new year, spent time, resources, and money in making changes that we think will enhance your experience as a client of the firm.

First, in addition to our two Estate Section partners, David M. Frees III and Douglas L. Kaune.

Jennifer adds more depth of tax practice (especially tax issues facing trusts and estates) and will also be helping us to focus on the unique issues facing women in their estate planning.

We have added two blogs designed to bring you more and timely news and information on estate planning, asset protection planning, and information and news for executors and trustees. In addition, we are currently working on a new web site and blog oriented just for families in need of elder law and nursing home advice and information. Be sure to read and watch www.UTBF.com/trust-estate and www.PaEstatePlanners.com for the latest news and information affecting you, your business, investments, and your family.

We have also invested in new software that we believe will take us to the next level in preparing and updating your tax returns, estate and trust accountings, and the family settlement agreements that we often use to avoid much of the probate process.

Several other associates and partners of the firm, including Denise Werkley, Theo Claypoole, William Burke, Don Turner, John Fiorillo, and Stephen LaGoy will be working on matters with the Estate Section – especially when planning involves family limited partnerships, closely held businesses, and real estate or when there are matters involving litigation.

We would also like to welcome Beth MacNulty as our new client relations manager. Beth’s jobs will include helping you to get appointments that fit your schedule, confirm appointments, making sure that your estate planning documents have been received by you and are stored safely, and in assisting you in emergency appointments, and with your other needs as they arise.

Beth can be reached by calling 610-933-8069.

In addition, David Frees was recently honored by receiving AVVO’s highest lawyer rating of 10.0 or Suberb and presented again to the prestigious Pennsylvania Bar Institute Estate Institute on the topic of Estate Planning for Families with Young Children. David has also just finished, with his brother Robb Frees, a soon to be published book and report on What Consumers Need To Know about insurance law.

Douglas Kaune was admitted as a member of NAELA (National Association of Elder Law Attorneys) and Doug in addition to his work in the are of sophisticated estate planning is working on three new reports for consumers on the changing laws in the area of Elder Law and Nursing Home issues.

In conclusion, we thank you for your continue support ans we look for new ways to help you through this difficult time with the many changes and the uncertainty now that Congress has allowed the state tax to lapse but at the same time is threatening to restore it retroactively.

For estate planning questionnaires, estate planning appointments, appointments to update older estate plans, or for any of our free reports for executors please call 610-933-8069.

David M. Frees III, Esquire – Chairman: Trust, Estate and Wealth Preservation Section
Douglas L. Kaune, Esquire – Trust Estate and Wealth Preservation and Chairman: Elder Law Section

Donna Brownback – Paralgel
Denise Fox – Paralegal
Beth MacNulty – Client Relations Manager

The firm maintains offices in Malvern, West Chester, and Phoenixville

610-933-8069

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I just posted a quick review of some of my analysis of this problem, as well as the articles by Forbes, The Wall Street Journal, and the Washington Post. Just click here for links to all of this material on the lapse of the federal estate tax.

Please leave questions and comments below.

David M Frees is a lawyer in Phoenixville, Malvern, and West Chester. These offices serve many communities on the Main Line of Pennsylvania and beyond. Looking for a lawyer to do a will, trust, estate plan, power of attorney, or related work in Collegeville, Exton, Paoli, Malvern, Devon, Berwyn, Daylesford, Wayne, Ardmore, Chester Springs, and the surrounding region?

Unruh, Turner, Burke and Frees and David Frees can be reached at 610-933-8069

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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.

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by Douglas L. Kaune, Esquire
Estate Planning & Administration, Wills,
Trusts, Asset Protection, Elder Law
Unruh, Turner, Burke & Frees
Phoenixville, Malvern, West Chester PA
Pennsylvania Attorney
dkaune@utbf.com PH: 610-933-8069
 A special needs trust (SNT) (or special needs trust provision in a Will or in another trust) is an important planning option if you are considering a significant gift to a beneficiary who is considered ”disabled” or “incapacitated” and either has or is likely to qualify for government benefits such as social security disability (SSI) or Medicaid.   Generally, the SNT or Supplemental Needs Trust is intended to supplement the government benefits at the sole and absolute discretion of the named Trustee, but you can review this link for some more indepth discussion of the trust options.
The SNT frequently comes under attack by the government entity providing the benefit.  It may be argued that the SNT should be expended for the care of the beneficiary and the government benefits be suspended until the Trust fund is exhausted.   It is our job to make sure that your Special Needs Trust stands up to the scrutiny.  One planning tip is naming multiple income beneficiaries, not just the “disabled” or “incapacitated” beneficiary.  This allows us to argue that the trust is not just for the beneficiary receiving the SSI, Medicaid or other benefit, but is also for these additional income beneficiaries.  Therefore, a complete expenditure of trust assets would be considered to “injure” the income beneficiaries and increases the likelihood that the SNT remains intact to supplement the needs of the intended beneficiary for his or her lifetime.  This is just one of many strtegies we employ to increase the success of these trusts.   We will be reviewing others in the weeks to come.
Please call or email me for further discussion on this and other estate planning topics.
Douglas L. Kaune
dkaune@utbf.com
610-513-2288

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