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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No Will? That’s Called Intestacy.
But Don’t Worry.
The State Of Pennsylvania Has Done One For You.
How Do You Think That Will Work?

If you have a will and it’s more than a few years old, you may have to have it reviewed because of the volatile situation with the estate tax. However, if you have never done a will it may be time. Most people don’t realize, that when they fail to create and to properly execute a will, that the state of Pennsylvania will do one for you.

The failure to have a properly executed and legal will at the time of death makes you INTESTATE under Pennsylvania law. And, if you die intestate, the state automatically answers the following questions:

1) Who gets your estate – it may not be who you think.

2) When kids get the assets. Answer: 18. That doesn’t sound good does it?

3) Who takes care of the kids – a court appointed guardian chosen by the judge (think legal fees too); and

4) Who manages the kids money – again, a court appointed guardian but only until age 18;

5) Who gets to be the administrator (the executor under a will) – and there are classes of people who may not be qualified and who might fight about who gets to do it (again, think legal fees and administrator fees).

If you’d rather be in control of these and many other issues, thn completing and executing a valid will and/or will and trust is essential.

That process can be easy and inexpensive when compared to the high costs that often result from intestacy.

For a limited time, Unruh, Turner, Burke and Frees are offering a free will review or, if you have never had a valid will or trust, a free will consultation. And while there would be fees for completing an estate plan (including a will, power -of – attorney and medical power as well as a living will) there is no charge for the review or consult and there is no obligation on your part while this offer lasts.

To claim a free will review or a free will consult call 610-933-8069 and mention offer code: DaveFreesWillReview. Donna, Beth, or Denise will be happy to schedule you. (more…)

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The Latest Attempt To Pass A Federal Estate Tax Is Dead – What Now?
By: David M. Frees III – 2010 Pennsylvania “SuperLawyer” Trusts and Estates
Phoenixville * Malvern * West Chester Law Offices

Executive Summary of Federal Estate Tax News:

As you may recall, we recently reported to our clients that a motion was pending
before the Senate to pass a bill that would finally end the agony of not knowing
what was going to happen to the federal estate – or death tax.

Currently, the uncertainty is creating problems for many families and if the law falls
back, as now expected, in January of 2011, many families will need to radically
alter their existing estate plans to avoid the massive 55% tax.

Current Details:

Senator Jon Kyl and Blanche Lincoln’s proposal to phase in a permanent
top estate tax rate of 35 percent and to raise the individual exemption
to $5 million, indexed for inflation appears to be dead.

There has been a discussion by many democratic Senators that
the federal estate tax is a tax break for the “wealthiest of the wealthy.”

But, since the tax includes the proceeds
of life insurance, IRAs and other assets, many middle class and moderately
affluent families will be drastically impacted if congress fails again to act.

The “wealthiest of the wealthy” statement by Pennsylvania Sen. Robert P. Casey Jr.
is a good indication of the strong position Democratic leaders have taken. Currently, the
democratic leadership is proposing – rather than let the exemption sink back to a mere $1,000,000 and the rate rise to 55 percent – a top rate of 45 percent and a $3.5 million exemption.

Yet, nothing seems to be happening. Even the IRS doesn’t know what to do.

However, the political pressure on both parties is increasing dramatically.
Articles abound about George Steinbrenner’s death as estate planning and the windfall to his family
are according to Steve Limberg Esquire “driving people bats and putting pressure on both parties to stop the hemorrhaging blood flow of lost revenue.”

CONCLUSIONS:

I have (and I am not alone in this) been wrong about Congress quite a few times.

However, I believe that there is not likely to be any congressional action until
after the November elections. I also think it is possible but unlikely that the Senate
will really allow the limit to fall back to One Million dollars. Finally, I believe that 3.5 million
would help to exempt most families from a massive tax. And, while many affluent
families will still have a significant tax ( probably at a 45% rate) planning will be vital for any
family.

Recommendations:

Planning should include flexibility, attention to IRA and deferred tax assets, use of trusts – when appropriate, and planning to protect yourself and your heirs from creditors claims, divorce and law suits. You should also pay careful attention to life insurance to avoid it being included and taxed in your estate.

Keep the faith and check in for the latest and for a different analysis in the Post click: Estate Tax Changes Needed in The Washington Post.

David M. Frees III is the Chairman of Unruh, Turner, Burke and Frees’ Wealth Preservation, Trust and Estate Section.

You can schedule a consultation with David Frees at 610-933-8069 for any of the firms office in West Chester, Malvern, and Phoenixville.

He is a regular contributor to blogs at www.utbf.com/trust-estate
www.PaEstatePlanners.com where there are a number of free reports available for download, or in print.

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Federal Estate Tax Reform and Certainty Is Needed
by: David M. Frees III, Esquire

Congress failed, at the end of the year to enact any estate tax reform. As a result, the tax was eliminated for a one year period. This might seem like a blessing, but currently, many people’s documents no longer function as they were intended to work. To add insult to injury, in just a few more months it is scheduled to return with a vengeance.

On January 1, 2011, absent congressional action, the tax will return and American tax payers will only be able to shelter one million dollars. A couple could, with careful planning, shelter up to two million dollars but that would require the use of trusts prepared during the lifetime of each spouse. And, as if that is not bad enough, the tax rate is going up to a maximum rate of 55%.

However, since this tax includes retirement accounts, the value of a house and business, and life insurance proceeds, the one million dollars may not go as far as it might otherwise.

We need and deserve clarity on this issue.

Yet, just a few weeks ago, negotiations between Republicans and Democrats broke down and Estate Tax reform disappeared from the legislative agenda.

This is not a political or partisan column. And, for my money, both parties have failed to deal effectively with this issue. I simply believe that Congress owes certainty and clarity to the American people. Right now, careful and rational estate and tax planning for families with substantial assets is almost impossible.

Clarity is essential and now requires congressional action.

Here is video of a recent statement on the Senate floor.

David M. Frees, III
is an attorney focusing his practice in the areas of trusts, estates, probate, and estate and asset protection planning. His firm, Unruh, Turner, Burke and Frees also offers elder law planning for families facing nursing home care and the related issues.

The firm maintains law offices that serve many local communities including Devon, Wayne, Malvern, Phoenixville and West Chester.

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What Is A Trust Protector and Why You Might Need One ?
By: David M. Frees III Esq.
Unruh, Turner, Burke and Frees

There is a new sheriff in town and the sheriff’s name is the “Trust Protector.” By naming a trust protector, you can select a person, in advance, who can make hard decisions, change the terms of the trust (within certain preset limits and for certain purposes), and who can hire and fire trustees.

The job of the trust protector varies significantly depending on the nature and purpose of the trust. However, there are certain jobs that you may not want to assign to a trustee or a beneficiary and they can instead be assigned to a specific person named as the protector.

For example, it may not be desirable for a child (even an adult child) to be able to fire and replace trustees. However, if a trustee is not performing, it may be important for them to be discharged and replaced without the need and expense of court petitions. So what can you do? If you plan in advance, in steps the trust protector who can make these decisions.

In many cases, you can draft a trust to create the role of trust protector and then give that person the right to review financial transactions, to discharge and replace trustees, to resolve disputes, and more.
This can save money, protect your beneficiaries, limit court intervention, and make sure that the assets are not taxed again in a child’s estate because he or she had too much power over the trust. Trust protectors can also make sure that a corporate trustee’s fees are reasonable and their performance is effective.

For more information on trust protectors and specifically:

How, when and why to create a trust protector,
Who should act as a trust protector, (often lawyers, CPAs and other independent and trusted advisers)
The pros and cons of a trust protector, and
Why the trust protector is more important than ever in a changing tax environment,

please come back to this blog or sign up for our RSS feed to be automatically notified when we publish new articles on this topic.

And, for more information on trusts and trust planning please click here to order our Enhanced Estate Planning workbook.

David M. Frees III
Unruh, Turner, Burke and Frees has law offices of it’s Trust, Estate, and Wealth Preservation Section in Malvern, West Chester and Phoenixville, Pennsylvania.

These offices provide legal services to clients in the greater Philadelphia area including Wayne, Devon, Berwyn, Malvern, Phoenixville, Exton, and many other local communities.

For a complimentary consultation please call 610-933-8069 and mention PAESTAEPLANNERS for your free estate planning materials and resources.

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If you have ever been confused about when to use a will and when to use a revocable trust, you are not alone. I have just posted a video, and a great quick overview of that question of will or revocable trust on our estate planning site www.PaEstatePlanners.com.

Click here to watch the video and read the brief checklist on wills vs. trusts in Pennsylvania.

This brief video and article will walk you through the big issues related to the question of whether or not you need to spend the extra money for a revocable trust in Pennsylvania. There is also a video and a link to another great article on the trust question.

David M. Frees

For an appointment with David Frees for a revocable trust, a will, or a power of attorney in Pennsylvania please call Donna, Denise, or Beth. To make sure that you receive a discount and an initial consultation at no charge mention this blog and offer “DavidFrees 2010″ when you call.

You can also reach David at 610-933-8069

David Frees is a trust, estate, and asset protection lawyer with offices in Malvern, Phoenixville, and West Chester, Pennsylvania that serve many surrounding communities including Malvern, Devon, Berwyn, Wayne, Chester Springs, Phoenixville, and Exton as well as many others in the area.

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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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There is a lot happening in the normally calm, cool, and collected world of the estate tax, and estate planning. The Wall Street Journal Article on the latest failure of Congress to act on Federal Estate Tax issues actually called the situation “frenzied” and not without reason.

While we, as your advisers, are keeping our usual cool and focused demeanor, there are reasons to be cautious and to keep an eye on this situation if you have total assets (husband, wife or single person) of over one million dollars including your life insurance.

We are bringing you news and analysis as soon as it breaks and we have a chance to crunch the numbers, read the bills, and think about the unthinkable (or previously believed to be unthinkable) a year without the federal estate tax.

That’s right, Congress has fumbled the ball and an extension of the bill seems almost impossible at this point. But, many members are threatening to reenact the law after the holiday break and to have it apply retroactively to January 1, 2009.

There are a few unexpected consequences of the federal estate tax going away and this Wall Street Journal Article has a good quick review and a couple of important alerts.

Stay tuned for more news and information as it becomes available.

David M Frees III
610-933-8069

David Frees focuses his practice in the following areas of law: estate planning, estate administration, asset protection planning and wills, trusts, and related topics.

Frees is a Phoenixville lawyer, Malvern Lawyer, and West Chester Lawyer, with offices throughout Chester County, Pennsylvania.

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David M Frees III, Esquire has just been awarded AVVO’s highest lawyer and attorney rating of 10.0. Frees heads the Trust, Estate, and Wealth Transfer Section of Unruh, Turner, Burke and Frees with offices in Phoenixville, Malvern, and West Chester, Pennsylvania.

Frees whose practice is limited to trusts, wills, estates, probate, asset protection, and estate planning helps families and individuals to create effective estate tax, asset protection, and business succession plans.

However, Frees notes that “The firm has lawyers that work in many different areas so that our clients’ needs ranging from personal matters such as estate planning, personal injury and related matters are well protected and served by the firm. And, many other firm practice areas help clients in their business, real estate, and related commercial matters.”

“I am honored to receive AVVO’s highest professional rating. AVVO is one of the premier lawyer search and referral sites on the internet and rates lawyers on a variety of factors. I regularly publish legal guidelines and answer estate planning, will, trust, and probate questions for AVVO users and I believe that it is a powerful tool for consumers.”

Thanks to everyone, including my partners and associates, my support staff, and the other lawyers and clients who have helped me to achieve this honor. I have a great team of people that I work with and great clients that we serve.”

Frees’ offices provide trust, estate, and estate planning services to the entire Philadelphia region, including but not limited to Chester and Montgomery Counties, Berks, Bucks and Lancaster Counties and many communities such as Ardmore, Devon, Berwyn, Paoli, Malvern, Willistown Township, Charlestown Township, East Pikeland, Schuylkill Township, and Doylestown

More information about AVVO rating and search services for Pennsylvania residents can be viewed by clicking this link.

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