Wealth Preservation, Trusts and Estates

It is important to make your estate planning documents flexible. As best as possible, we try to foresee the future and address the planning possibilities. We know it is not possible to address everything now for a trust that could be in place 10, 20, 50 or 100 years from now. So we give the succeeding generations the power and authority to adapt and deal with the future circumstances. We want the tax and creditor, divorce and asset protection enhancements and benefits provided by trusts, but we do not want the trusts to become an inadvertent burden on the beneficiaries.

Two powers providing needed flexibility to a Trustee are the authorities to name either a co-trustee to act with him/her or to name his or her successor. The ability to name a co-trustee may be valuable where the named trustee is in unexpected need of professional assistance because of complexities dealing with the trust assets, the legal requirements of the trust, or in dealing with the trust beneficiaries.

The named trustee may want to stay involved as co-trustee, but they may also want the formal assistance of a professional trustee. Note that the named trustee is also typically given the power to remove the professional trustee if appropriate or necessary.

Secondly, the trustee power to name his/her successor is invaluable. Again, we do not know how long a trust will continue or if a trust will benefit succeeding generations. Therefore, we do not know that the named trustee or trustees will have the longevity or continued willingness to act. Giving the trustees the power to name a successor will help to prevent a situation where no trustee is available to act.

Take care to grant these and other powers to your trustees. You cannot predict the future so let the Trustees deal properly with the events they face in the future. If you would like to update your documents, where possible, or would like to review these and many other planning nuances that can help accommodate the future needs of your trustees and beneficiaries, please call or contact Douglas L. Kaune at 610 933 8069 or dkaune@utbf.com.

Douglas is a partner with Unruh, Turner, Burke & Frees, P.C. serving clients in Paoli, Collegeville, Royersford, Berwyn, Wayne, Pottstown, Norristown and all other towns surrounding the Firm’s three convenient office locations in Phoenixville, Malvern and West Chester.

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We have had a lot of discussion here and with clients about the future of

the federal estate tax. We have not talked as much about the generation-skipping tax (GST) which was also repealed for 2010. This presents an opportunity for grandparents and great grandparents to pass wealth to future generations that was not previously available.

Generally, the GST is intended to prohibit people from transferring property to generations beyond the next in line without paying significant tax. The IRS does not want someone to be able to give all of their wealth to grandchildren or great grandchildren because they want to be able to tax as many generations as possible.

If transfers are made to grandchildren this year, there is no GST. However, a gift tax of 35% would still apply for transfers in excess of $1 million. If the law as presently written goes into effect, the gift tax will rise to 55% in 2011. The person making the gift to grandchildren or other skip recipient will not owe GST on the first $1.06 million, but will owe both gift tax and GST on the dollars over the $1.06 million.
The changing tax laws could make gifting in 2010 significantly more powerful than making like gifts in 2011. It is important for you to be ready to make gifts before the end of the year to take advantage of historically low gift tax and GST rates.
Take a look at this article to learn more about the GST Repeal.

For questions or to review important Estate Planning opportunities please contact Douglas Kaune, Esq.
Doug is a Partner with Unruh, Turner, Burke & Frees, P.C. which is a full service law firm with offices located in Malvern, Phoenixville and West Chester, PA and also serving clients in surrounding towns and communities such as Collegeville, Royersford, Pottstown, Paoli, Exton, Downingtown and Media.

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As a result of the more lenient Roth conversion rules, we have been reviewing the federal estate tax,

income tax and distribution issues relating to Roth IRA conversions with clients. I thought this article provided a nice synopsis of the distribution rules facing beneficiaries of a Roth IRA. Here is another article with some additional considerations. Please note that these articles are not exhaustive of the issues, but serve to give you a good starting point for understanding decisions to be made as an IRA owner and as someone inheriting an IRA.

Please feel free to contact Douglas L. Kaune, Esq. any time at 610-933-8069 or dkaune@utbf.com to discuss your particular IRA and ROTH IRA estate planning issues or issues you are facing as a beneficiary of one of these accounts to determine how best to proceed.
Wills * Trusts * Elder Law * Probate * Asset Protection * Power of Attorney * Estate Planning
Unruh, Turner, Burke & Frees, P.C. is a full service law firm with offices in Malvern, Phoenixville, West Chester Offices serving Wayne, Paoli, Downingtown, Radnor and the following counties: Chester County, Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Pennsylvania (PA).

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IN RE: ALICE G. NOVOSIELSKI: PA Supreme Court Rules On Joint Account Case MARCH 25, 2010. The Supreme Court of Pennsylvania overturns the Superior Court on appeal. I think the Supreme Court got this one right. You can read the entire Novosielski Case here, but the general ruling is that accounts made joint by a decedent AFTER the signing of his or her Last Will and Testament will still transfer to the surviving joint account holder. The Superior Court’s earlier ruling that accounts made joint after a will was signed, and in contradiction of the terms of the will, could have been rendered invalid and the joint assets transferred according to the decedent’s will. The earlier ruling would have necessitated revisions of wills and close scrutiny of the timing of joint account creation. It also jeopardized the sanctity of the joint account contract between a financial institution and its customers. We, as PA Estate Planning and Probate Attorneys and PA Residents can breathe a sigh of relief.

Please feel free to contact Douglas L. Kaune, Esq. any time at 610-933-8069 or dkaune@utbf.com to discuss the preparation of wills, powers of attorney, trusts and living wills.

Wills * Trusts * Elder Law * Probate * Asset Protection * Power of Attorney * Estate Planning
Unruh, Turner, Burke & Frees, P.C. is a full service firm with Malvern, Phoenixville, West Chester Offices also serving Berwyn, Wayne, Newtown Square, Paoli, Exton, Downingtown, Devon, Chester County, Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Pennsylvania (PA).

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Although you are permitted to name anyone or anything as the beneficiary of an Individual Retirement Account (IRA), there are many pitfalls that must be avoided. Naming a Trust as the beneficiary of an IRA is an important estate planning opportunity, but the Trust and the beneficiary designation language must be drafted properly to insure that the beneficiaries can receive maximum available tax deferral. I have the opportunity to see the mistakes that individuals make with their estate planning documents and beneficiary designations and know that these mistakes can cause hundreds of thousands of dollars of loss. The IRA Trust terms such as “stretch out”, “Measuring Life”, “conduit Trust” and “See Through Trust” can be confusing and complex. Read this article by Natalie Chaote to get a better understanding of the issues faced when naming a Trust as IRA beneficiary. While you are at it, check out this Natalie Choate IRA article here for some another interesting fact pattern

Contact Douglas L. Kaune, Esq. any time at 610-933-8069 or dkaune@utbf.com to review your estate planning and particular IRA beneficiay designation concerns and desires. We can then determine how best to approach this complex legal issue.

Wills * Trusts * Elder Law * Probate * Asset Protection * Power of Attorney * Estate Planning
Malvern, Phoenixville, West Chester Offices serving Wayne, Newtown Square, Media, Paoli, Frazier, Exton, Norristown, Radnor, Chester County, Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Pennsylvania (PA).

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Executor and Attorney Fees and commisions For Estate Administrations and Probate in Pennsylvania (PA).  This is often a mysterious topic for many who find themselves involved in an estate administration as executor or beneficiary in PA.   There is not a perfect answer as to what the executor , attorney and probate fees will be in each case, but click here to see the statutory references to Pennsylvania estate administration fees, PA executor commisions, attorney fees and Johnson Estate Fee Guidelines.   Also check this guide by David M. Frees, III Esquire for some helpful information relating to the estate administration fee issues.   The fee structure might vary generally depending on the estate value and complexity.  It is a good practice to establish a flat fee or flat fee range based loosely on the PA estate fee guidelines, but modified by the other contributing factors in the particular estate administration case.  Please feel free to contact us any time at 610-933-8069 or dkaune@utbf.com to discuss your particular estate/probate case to determine the appropriate fee structure for an attorney or executor.
Wills * Trusts * Elder Law * Probate * Asset Protection * Power of Attorney * Estate Planning
Malvern, Phoenixville, West Chester Offices Chester County Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Law Practice Locations.

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