Wealth Preservation, Trusts and Estates

Periodically clients ask “Do I even need a will?” And, you would expect a lawyer who drafts wills, and trusts, and asset protection plans in Pennsylvania to say yes. And, you should know, that I believe in the value of what I help people to do. And, I have seen many examples of little or no estate planning or outdated documents that just don’t work. When that happens, families spend too much money, pay too much in taxes or take to long to get the state administered.

However, just read this article on what happens when there is no will (or even a few paragraphs) and you’ll know why you need a will. Literally, everyone was fighting and even the lawyers were potentially suing one another – before an estate was even started.

The quick answer: Update your planning and make sure that you at the very least have a valid will. Anything less is an invitation for legal and tax problems that can often be completely avoided.

David M. Frees III, Esquire
610-933-8069
David’s practice is limited to representing executors and trustees and to
helping clients with estate planning, wills, trusts, and asset protection.

If you have questions involving other areas of the law ranging from
corporate issues to real estate or even about anything personal such as
an employment or injury claim we will help you, at no charge to find the right
lawyer within our firm or even outside of the firm.

This Post was Written by:
Douglas L. Kaune, Esquire
dkaune@utbf.com
610-933-8069

Joint bank accounts are often established by individuals with the hope of creating an account with one or more of the following beneifits:
probate avoidance, reduced inheritance taxes or as a convenient way to allow family member to write checks and pay bills.

Unfortunately there are numberous Medicaid/Elder Law Planning, estate planning and asset protection pitfalls that await those who have established joint accounts. Some common problems resulting from joint accounts are pointed out in this Elder Law Answers Article. Take a look at this article and be careful how you title your bank accounts!

This Post was Written by:
Douglas L. Kaune, Esquire
dkaune@utbf.com
610-933-8069

Post By Douglas L. Kaune, Esquire Email: dkaune@utbf.com Phone: 610-933-8069

One of the most frequently neglected parts of the estate planning process is the proper use of beneficiary designations on life insurance, IRA’s, 401k’s, annuities and other similar assets. Failure to properly prepare and update a beneficiary designation can significantly change the disposition of assets someone intends to be carried out by his or her last will and testament.
I recently represented the Executor of a Chester County PA estate. I have changed the facts, but have maintained the essence of the issues for our discussion. The decedent was survived by a 18 year old son. One month before the decedent died, he signed a will designating a trust for his 18 year old son as the sole beneficiary of his estate believing that this was all of the “estate planning” he needed.
Unfortunately, five years before his death, the decedent submitted a beneficiary designation for his $600,000 life insurance policy naming his then 77 year old mother as a primary beneficiary. I have been told that the expectation was that the decedent’s mother would “watch over” the money for her grandson. The decedent’s mother predeceased him and was not available to collect the insurance proceeds. The contingent beneficiary, the decedent’s brother, is now in line to collect the proceeds from the policy. He has informed the family that he is having financial difficulties and has no intention of sharing the insurance proceeds with the decedent’s son or anyone else for that matter. WOW! This has sent shock waves through the family and significantly diminished the security of the decedent’s son. Although likely contrary to the decedent’s true intention and morally questionable, the decedent’s brother is legally entitled to keep the $600,000 in insurance proceeds and the surviving son does not get one cent.
This case is a flashing neon sign for everyone to check their own beneficiary designation forms and make sure that they are properly integrated into the estate planning process. The decedent should have created a new beneficiary designation form naming the son’s trust under the will as the beneficiary. This would have allowed the trustee to claim the proceeds and then manage the assets for the son until a later date. A will is not always enough!!

The length of the probate process in Pennsylvania (PA) or other states varies greatly from estate to estate. The determining factors include the assets involved in the estate, the experience of the Executor/Administrator and counsel and the ease in dealing with the beneficiaries. Contrary to common belief, the process is rarely impacted by the actual probate court requirements which can be accomplished timely if the other factors are favorable. Some of the most common causes for a delay in the estate administration process are:
1. Beneficiaries and family members who are not getting along with each other or with the Executor. The psychological and family related issues are sometimes the most difficult to respolve.
2. Hard to value assets such as closely held business interests or vacant land.
3. Assets which are difficult to sell such as real estate or business assets.
4. Complex estate tax and inheritance tax considerations.
You can review some of the probate requirements at the Chester County Register of Wills Website.
Let us know if you have any questions about the probate process, inheritance or estate taxes or other improtant estate administration issues.

Douglas L. Kaune
dkaune@utbf.com
610-933-8069

Probate is the court oversight of the estate administration process after a person passes away. Only certain assets are considered probate in nature. Probate assets typically are those owned by the decedent in the decedent’s individual name without a beneficiary designated. The Executor, where there is a will, or Administrator, where there is no will, is appointed by the Register of Wills Office in the county where the decedent last resided. He or she then must follow the probate procedures to properly complete the estate administration. The Chester County Register of Wills can be visited by clicking here.

Douglas L. Kaune or dkaune@utbf.com