Wealth Preservation, Trusts and Estates

IRA and 401(k) Distribution Rules For 2010 or How Do I Restart The Withdraws?

By:  Attorney David Frees with offices in Malvern, West Chester and Phoenixville, Pennsylvania

If you stopped taking mandatory IRA or 401(k) distributions last year you might be wondering if you can do the same this year.  The quick answer?  No.

Well then, the next question is: “If they only allowed me to skip distributions last year how do I start taking them again and are their any remaining effects from last years’s law change on how I calculate distributions?”

Again, for almost all tax payers, there is no change.  Your calculation method will be the same as before the 2009 one year change.  However, sinceyou skipped a year of withdraws, your calculation will be based on a larger number.  That’s it.  Fairly simple for a change.

However, there are two technical matters where you might need to pay special attention.

For more on how to calculate mandatory IRA distributions for 2010 see this brief article.

To update your estate planning for greater flexibility during these uncertain times, or for more information about the many options you have in using your IRA or 401(k) assets in your estate planning, call 610-933-8069 for an estate planning guide, or for an appointment.  Mention this code: 2010DavidFrees for a special discount and a frees cd of estate planning ideas to protect your heirs by David Frees.

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By: David Frees
Wills, Trusts, Estate and Asset Protection Planning

Generally, the rule is that when you create a trust, and keep the right to receive assets from that trust, the trust can be reached in a lawsuit against you and will be taxed in your estate.

In recent years, several states, including Delaware, Nevada and Alaska have passed statutes purporting to allow you do get both tax and creditor protection without having to move assets off shore.

And, while these trusts have a number of restrictions, and downsides, the IRS has now issues a PLR – private letter ruling on these important issues related to an Alaska trust.

For more information on the IRS and asset protection trusts, prepared by David Frees click here.

For an appointment ranging from a simple will review and update to the more complex issues of trusts and estate planning, call David Frees’ office at 610-933-8069.

Mention this code (DavidFrees2010) if you are a Pennsylvania resident and receive a free initial consultation by phone or in person. Call 610-933-8069.

David Frees and Unruh, Turner, Burke and Frees maintain law offices in Phoenixville, Malvern and West Chester.

These offices service West Chester, Chester Springs, Exton, Phoenixville, Spring City, Collegeville, Downingtown, Malvern, Devon, Berwyn, and many surrounding communities.

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By: Trust, Estate, and Probate Lawyer: David Frees *

Now that we are a few days into 2010 it has become clear that the rules about the federal estate tax and the gift tax are anything but clear.

And with so much confusion, especially about the gift tax, I thought that a few basics might help to avoid costly mistakes.

Myth #1. The gift tax was eliminated on January 1, 2010 just like the estate tax.
Fact: Only the federal estate tax was eliminated. The gift tax remains intact and any gifts made this year are subject to the gift tax rules.

Myth #2. The amount that you can gift each year without tax (the annual gift tax exclusion) goes up every year.
Fact: Last year the exclusion amount was $13,000.00. This year, because inflation was so low, the amount will remain the same.

Myth #3. If you exceed that annual amount, then you owe gift tax to the government.
Fact: True and false. In addition to the annual gift tax exclusion, each person has an additional $1 million dollar lifetime exemption. This doesn’t get renewed each year but can be taken in years when you exceed the $13,000.00 dollars per person. There are also exceptions for college education and some health care expenses. So, provided that you file a gift tax return, you will not actually have to pay gift taxes until you both use up your $1 million dollar lifetime exemption and you exceed the $13,000.00 per persona annual limit (which may, from time to time, adjust for inflation).

Myth #4 Gifts are taxable to the recipient.
Fact: The giver cannot deduct the gift for income tax purposes and the gift is not income taxable to the recipient. Any gift tax due is the obligation of the person making the gift.

In short, the gift tax remains alive and well in 2010 and beyond. Make sure that you get good advice about gifting this year as part of your overall estate planning strategies.

David Frees
Wills * Trusts * Estate Planning * Asset Protection Planning
Law Offices in Phoenixville, West Chester, and Malvern Pennsylvania

For an appointment with David Frees to update your estate plan drafted more than 2 years ago, or to correct a plan drafted even more recently and containing federal estate tax planning call 610-933-8069

Note: In Pennsylvania, there are no recognized specialties, or practice areas.
When an attorney is referred to as a trust and estate or will and probate lawyer, this merely indicates that he or she confines or limits his or her practice areas.

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By David Frees Law Office: Phoenixville, Malvern and West Chester

You think retroactive taxation for estate tax purposes is a problem?

Well, according to Russia, we have bigger problems…. click here to read more about estate planning and the pending fall of the United States governmentt.

If you need more information about planning your estate or acting as a trustee or executor, we have many free resources. Appointments are also available with David Frees by contacting Beth MacNulty, Donna Brownback, or Denise Fox at 610-933-8069.

Attorney David Frees can also be reached by email at dfrees@utbf.com

Mention this blog to get a free report at the time of your appointment or to request that a free report on executors or estate planning be sent to you. You can also request these reports on line at www.PaEstatePlanners.com

David Frees has attained AVVO’s highest possible lawyer rating.

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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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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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529 Plans For Pa Residents By: Attorney David M. Frees III

529 Plans come in many shapes, sizes, and colors. And, there is significant variation from state program to state program. If you would like to know the top five reasons to consider a 529 and get a great web based resource to help you to understand and to compare the different plans, then click here for my 529 Plan Article for Pennsylvania Residents.

The article reviews some of the estate planning, gift tax, income tax, and administrative issues involved with selecting a 529 plan.

Let us know your questions in the comments section.

David M. Frees III is a Pennsylvania probate, will, and trust attorney with offices located in West Chester, Malvern, and Phoenixville, Pennsylvania.
David Frees has an AVVO Rating of 9.8 and “Superb”

For a consultation to make sure that your estate planning documents are up to date, and coordinated with your 529 plans, call 610-933-8069. Mention this article to receive a valuable resource, our Enhanced Estate Planning CD.

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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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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.

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