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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When Do I Show My Estate Planning Documents To My Family?
By: David M. Frees III

The question of when, or even whether or not, to show adult or mature children your will or estate planning documents has no easy answer.

The best answer is that it depends.

In this, and a series of brief up coming posts, we’ll explore that question and the pros and cons of each option. In my experience (over 25 years of drafting estate planning documents for families and advising families at all levels of affluence), the answer varies depending on your personal circumstances and the particular documents. My answer, for example about when and how to share a broad durable power of attorney may be different than my answer about sharing and discussing a living will and medical power of attorney.

We will examine when to share the will, when to give an agent a copy of a medical or durable power of attorney, and when to share trusts and other documents.

Today we start with your question about when to share a will with family members.

In the case of wills, many clients never share the particulars of the will. They realize, that this document may change trough time and that who gets what assets may also change. Since no one really needs to see the document before your death, it may be enough to make sure that the family knows how to get your original will if you pass away. If you have only one or two children, and they are both appointed as co-executors, sharing that fact with them may also be prudent.

My clients who do not share the specifics of their wills, or copies of the documents, usually have a memo, or a binder. This documents contains copis of the necessary documents (in case of emergency) as well as instructions, locations or originals, passwords, and related information such as who the accountants, lawyers, insurance and financial advisers are and how to contact them.

More on these issues to come.

David M. Frees III is a lawyer with over 24 years of advising clients in the areas of trusts, estates, estate planning, and related legal matters. He has law offices in Malvern, Phoenixville, and West Chester and serves clients throughout Pennsylvania including Exton, Devon, Wayne, Chester Springs, Ardmore, Berwyn and many surrounding communities.

For a complimentary consultation call 610-933-8069 and mention PAESTATEPLANNERS as the code for your free consult.

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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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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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By: David M. Frees III Review David Frees’ AVVO Lawyer Rating.
Wills * Trusts * Estates * Estate Planning * Asset Protection Planning
Malvern, Phoenixville, and West Chester Law Offices

It is that time of year when we start to get questions about gift taxes, the gift tax exemption, and about how much you can give to your children and grandchildren.

This year we are getting a new question for the first time, “I thought that the amount goes up every year so how much can I give this year?”

Well, the reason many people believe the amount of the gift tax exemption (the amount that you can give without paying gift tax or filing a gift tax return) goes up every year is that it is indexed for inflation and has gone from the original amount of $10,000.00 to $11,000.00 and recently, to $13,000.00.

However, the amount does not go up every year. And, because the rate of inflation is so low (or perhaps non existent), the amount will remain the same for 2009 and 2010 unless Congress acts to change it as part of the review of the estate and gift tax that is still pending in Congress.

Quick Facts and Reminders about Gift Taxes:

Each person can give up to $13,000.00 for 2009.

A married couple can give $26,000.00 to each recipient even when one spouse has the assets and the other does not. (This is called a split gift and may require your spouse to sig the gift tax return)

If your child or grand child is married, you can also make a gift to the spouse. However, that gift is not protected in the event of a divorce.

You can make gifts of property, real estate, Limited partnership interests, stock or cash. However, the recipient acquires your basis in the asset and may have to pay capital gains taxes on the gift if the specific property is later sold for more than your basis.

Learn more about avoiding end of year gifting mistakes.

We also have a related article on our Estate Planning Blog on Three Gift Tax Questions
Thank you.

Please leave your questions and comments below.

David M Frees III
Will, trust, and estate planning lawyer
Chairman: Trust, Estate, and Wealth Preservation Section

You can find out more about David Frees and the trust, estate, and asset protection lawyers in the firm at Unruh, Turner, Burke and Frees.

* Note: In Pennsylvania, there are no legal specialties. Lawyers may not refer to themselves as “experts” or “specialists” in trusts, estates, wills, or other practice areas. Therefore, when we make reference to ourselves as will or trust lawyers, we mean only that we focus our practice to the areas of wills, estates and related matters.

To see a list of Unruh, Turner, Burke and Frees lawyers and Unruh, Turner, Burke and Frees practice sections click here.

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First a few preliminaries on the Grantor Retained Annuity Trust or GRAT.

What is a GRAT? GRAT stand for Grantor Retained Annuity Trust. It is a special trust where you can make a gift and get the original amount back over a period of years and the growth of the asset remains in the trust – usually, for children.

Why do people do GRATs? GRATs are often used in times of low interest rates, and low asset values to move substantial growth in an undervalued stock, family business, or even real estate, out to the next generation.

Can you give an example? Yes. Mrs Walton (Sam Walton’s wife) contributed a substantial amount of Walmart stock to a GRAt for her children. The trust had to pay her back the stock (or cash) plus interest over a peiod of years. However, because her stock rose so much in value, even when she was paid back, a great deal of wealth remained in the trust for her heirs. She paid no gift tax becasue the GRAT was structured, so that at the time of the transfer, there was no gift.

Should I get my GRAT done before the end of the year? Well, a GRAt is an irrevocable trust. So, you should thoroughly and completely understand the GRAT before you sign and fund it. However, in the current economic environment, a GRAT can be a very powerful estate planning tool.

GRAts are complicated to set up but once you go through the process, they are fairly easy to use and to administer and the payoff to your heirs can be huge.

Since you must out live the term of the GRAt for it to work it’s magic, careful consideration should be given to how fast the GRAT should pay you back. But, once you know that the GRAt is for you, the sooner you fund it the better.

For more information on GRATs, sign up to get alerts when we post new articles.

Thank you for being a reader and please post your comments or questions below.

David Frees is an attorney who focuses his
practice on wills, trust, estate planning, and related
issues.

David Frees’ AVVO Rating 9.8 “superb”

For a consultation or phone conference call 610-933-8069
By email: dfrees@utbf.com

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If you are over 70 1/2 and have an IRA you may have missed the change in the law that said that you don’t have to take required mandatory minimum distributions this year. well, if you have taken your RMDs for this year and want to put them back, then there is some good news for you.
Click this link to see my brief new article on an important legal change about IRAs and RMDs (required minimum distributions) that might make a big difference to you.

Remember, that as the end of the year rolls around, to check your IRA, 401(k), and life insurance beneficiary designations to make sure that they are still current and that they match your planning. You will thank us if you find your ex spouse or the wrong beneficary listed.

David M. Frees III, Esquire
Are you over 70 1/2? Do you have an IRA?
Enhanced Estate planning might be better but
not much more expensive than a simple will.

Discover how you can protect your legacy and your
heirs from law suits, divorce and, death taxes.
610-933-8069

For a Free report visit our blog at www.PaEstatePlanners.com

or click the images below.

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If you are an executor of a Pennsylvania estate, read this artcile before you hire counsel. The one thing that families, beneficiaries and executors all want is to minimize the costs of probate and even administering a trust or estate not subject to probate. Most firms still charge according to fee guidelines, or on an hourly basis. For many reasons, this may not be in your best interest. Find out more about flat fees for estate lawyers and probate.

David M. Frees III, Esquire
Chairman
Trust, Estate, and Wealth Preservation Section
David Frees’ AVVO Rating
610-933-8069

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