Wealth Preservation, Trusts and Estates

As we have discussed frequently, the Federal Estate Tax system is in a state of change in 2010. Frequently lost in the discussion of revocation of the Federal Estate Tax is the new Modified Step-Up In Tax Basis for Capital Gains. Prior to January 1, 2010 all capital appreciation assets owned by a decedent at the time of his or her death received a full step-up in basis. The new basis for those assets was the value on the date of death. Therefore, no capital gains had to be paid by the beneficiaries unless the inherited assets were sold for an amount in excess of the date of death value. The new law is much less forgiving and can open estate beneficiaries to a significant capital gains tax that was not previously a concern. Read about the 2010 federal estate tax and modified/partial step-up in tax basis rules by clicking the link here. Your estate planning should now include a comprehensive look at your capital appreciation assets to help insure the maximum capital gains tax protection for you and your beneficiaries.

Please fcontact Douglas L. Kaune, Esq. any time at 610-933-8069 or dkaune@utbf.com to discuss the appropriate planning to help protect your estate and the beneficiaries from a significant capital gains tax that might now apply.

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 and West Chester Pennsylvania (PA) also serving surrounding areas such as Newtown Square, Wayne, Media, Paoli, Valley Forge, Exton, Chadds Ford, Counties Served: Chester County, Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Pennsylvania (PA).

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by Douglas L. Kaune, Esquire Pennsylvania Attorney
Wills * Trusts * Probate * Elder Law * Estates * Estate Planning * Asset Protection Planning
Malvern, Phoenixville, and West Chester Law Offices Chester, Montgomery, Delaware, Philadelphia, Berks and Bucks County
Roth IRA’s can have significant income tax benefits for you and for generations to come. However, many wealthy individuals have been unable to take advantage of the Roth IRA because of low income ceilings set by the Internal Revenue Service (IRS). However, in January 2010, the IRS income ceiling for Roth conversions will be removed. This will present many wealthier individuals an option to convert an existing IRA to a Roth IRA which had not previously been available. The painful part of the decision will be the income tax that will be due as a result of the conversion. The initial inclination is to defer the tax as long as possible, but the Roth conversion comes with the benefits of tax-free withdrawals and elimination of required minimum distributions. This can provide a tremendous tax benefit to individuals in their retirement years and to their beneficiaries who will also be able to take withdraws income tax free. Read this great article setting out the pros and cons of making a Roth IRA conversion. This is an important opportunity that should be discussed with your Estate Planning Attorney, Financial Advisor and Accountant to determine the best decision for you and for your family. I will follow this with posts regarding the estate planning and estate tax benefits of making the Roth conversion.
Please contact Douglas L. Kaune, Esq. at 610-933-8069 or dkaune@utbf.com to comment or discuss this and other topics.

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by Douglas L. Kaune, Esquire
Estate Planning & Administration, Wills,
Trusts, Asset Protection, Elder Law
Unruh, Turner, Burke & Frees
Phoenixville, Malvern, West Chester PA
Pennsylvania Attorney
dkaune@utbf.com PH: 610-933-8069

We continue to receive inquiries from clients in search of ways to protect the assets they leave to their children and beneficiaries from divorce, law suits and creditors. Although clients protection from tax liability is of continued importance, asset protection in estate planning has grown in significance. Clients recognize that 50% or more of the assets left through their wills and revocable living trusts can ultimately be lost by their beneficiaries. We have continued to develop strategies for increasing the protection of the inheritance left to adult beneficiaries from loss to a divorcing spouse, plaintiff or other creditor. Take a look at the recent guide that I published on AVVO regarding the benefits of the Beneficiary Controlled Trust as an asset protection tool. This guide will help further explain a great asset protection strategy to employ under wills and revocable living trusts for inheritances left to beneficiaries of ages and abilities.

Please call or email me for further discussion on this and other estate planning topics.
Douglas L. Kaune
dkaune@utbf.com
610-513-2288

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