Wealth Preservation, Trusts and Estates

During an estate administration process there are probate and non-probate assets. Non-probate assets typically transfer with ease to the surviving joint owner or named beneficiary. Now there may be an unexpected additional requirement that can slow the transfer process. Investment accounts such as stock, bond or mutual fund accounts owned through an adviser or investment house which have beneficiaries designated or are designated as TOD (Transfer on Death) or POD (Payable on Death) require an Inheritance Tax Waiver before they can be transferred to the intended recipient.
This requirement will potentially delay the release of these not probate assets and is presumably intended to help PA and other states to insure they receive the appropriate inheritance tax payment. Read more here about the Inheritance Tax Waiver by clicking here at the PA Department Of Revenue website. Be aware of this requirement so that the proper paperwork can be provided in order to transfer both qualified and non-qualified investment accounts.

For questions or to review other Estate Administration and Estate Planning issues please contact Douglas Kaune, Esq. at 610 933 8069 or at Dkaune@utbf.com.
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 the counties of Chester, Montgomery, Delaware, Bucks, Berks and Philadelphia.

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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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Although there there will likely be no federal estate tax in 2010, the beneficial “step-up” in capital gains tax basis on property owned by a decedent at death, is now limited to $1.3 million. The limited “step-up” may be allocated among the decedent’s assets by the Executor or Administrator unless otherwise directed in a decedent’s last will. As a result of the limited basis step-up, the heirs of a decedent dying in 2010 might owe capital gain taxes that they would not have previously owed. This process will be very challenging when having to sift through historical splits, mergers and dividend reinvestment. Read this article to learn more about the accounting nightmare that will result from these tax law changes. In reality, this may leave many heirs of estates that fall between $1.3 million through $3.5 million in 2010 paying more in capital gain taxes than would have been owed in estate taxes.

Please contact Douglas L. Kaune, Esq, at dkaune@utbf.com or 610 933 8069 to discuss your particular case and to determine how the federal estate tax laws of 2010 impact your planning.

Unruh, Turner, Burke & Frees, P.C. is a full service Pennsylvania (PA) law firm with offices in Phoenixville, Malvern and West Chester and serving surrounding areas such as Collegeville, Exton, Media, Norristown, Devon, Wayne, Royersford and Paoli.

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Wills * Trusts * Elder Law * Probate * Asset Protection * Estate Planning
In a Tax Court case, Price v. Commissioner, T.C. Memo. 2010-2 January 4,2010)
gifts of limited partnership interests by parents to their three children did not constitute present interest gifts that qualify for the gift tax annual exclusion. The court stated that the present interest requirement is satisfied if the donee has immediate enjoyment of either the donated property or the income from the property. In this case, the donees had no ability to withdraw their capital accounts and the partners could not sell their interests without the written consent of all other partners.

PLANNING TIP: For clients that intend to make annual exclusion gifts to an FLP, we will draft a Partnership document and operating agreement in a way that allows the transfers of limited partnership interests to be considered present gifts. It is very imortant that you have an experienced estate planning attorney who can draft the FLP in a way to best suit your needs and take advantage of the maximum tax and asset protection benefits.

Please feel free to contact Douglas L. Kaune, Esq. any time at 610-933-8069 or dkaune@utbf.com to discuss your particular Estate Planning goals, including creating a Family Limited Partnership (FLP) to determine the appropriate structure for you and your family.

Unruh, Turner, Burke & Frees, P.C. is a full service lawfirm with offices in Malvern, Phoenixville and West Chester serving surrouonding communities including King of Prussia, Berwyn, Wayne, Newtown Square, Media and Paoli and the following counties: Chester County, Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Pennsylvania (PA).

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