Wealth Preservation, Trusts and Estates

Many clients prefer to remain in an assisted living setting rather than make the move to a nursing home. The Veteran’s Administration Aid and Attendance Benefit can help extend your or your family member’s stay in an assisted living facility and delay the transition to a nursing home.

Assisted living facilities cannot receive Medicaid payments from the Pennsylvania Department of Public Welfare (DPW). Therefore, when a resident runs out of money they must move out of the assisted living facility and into a Medicaid eligible nursing home regardless of their health status. In order to extend your ability to privately pay for an assisted living stay, residents should apply for the Veteran’s Aid and Attendance benefit when available. Generally, you or your spouse have to have served in the military in active duty during wartime. Review the Veteran’s Administration Website here for further details. You can also review this Aid and Attendance article on PAElderLawSolutions.com. The benefits for a spouse of a deceased Vet will be less than for the Vet himself or herself, but still likely in excess of $1000/month. The benefits for a husband and wife where one is a qualifying Vet will be close to $2000/month. This is a substantial benefit and one that can help you to stay in the assisted living setting of your choosing.
Please contact Douglas L. Kaune, Esq. at 610-933-8069 to discuss your case further and for assistance as necessary. Mr. Kaune is a partner with the law firm of Unruh, Turner, Burke & Frees, PC, a full service firm with offices in Phoenixville, West Chester and Malvern, PA serving Chester, Montgomery, Delaware, Philadelphia, Bucks and Berks Counties.

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We have had a lot of discussion here and with clients about the future of

the federal estate tax. We have not talked as much about the generation-skipping tax (GST) which was also repealed for 2010. This presents an opportunity for grandparents and great grandparents to pass wealth to future generations that was not previously available.

Generally, the GST is intended to prohibit people from transferring property to generations beyond the next in line without paying significant tax. The IRS does not want someone to be able to give all of their wealth to grandchildren or great grandchildren because they want to be able to tax as many generations as possible.

If transfers are made to grandchildren this year, there is no GST. However, a gift tax of 35% would still apply for transfers in excess of $1 million. If the law as presently written goes into effect, the gift tax will rise to 55% in 2011. The person making the gift to grandchildren or other skip recipient will not owe GST on the first $1.06 million, but will owe both gift tax and GST on the dollars over the $1.06 million.
The changing tax laws could make gifting in 2010 significantly more powerful than making like gifts in 2011. It is important for you to be ready to make gifts before the end of the year to take advantage of historically low gift tax and GST rates.
Take a look at this article to learn more about the GST Repeal.

For questions or to review important Estate Planning opportunities please contact Douglas Kaune, Esq.
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 surrounding towns and communities such as Collegeville, Royersford, Pottstown, Paoli, Exton, Downingtown and Media.

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Are Your Pets – horses, cats or dogs included in your estate plan? If you have horses, cats, dogs or other pets with long life spans, it might be time to include those pets in your estate planning.  Pets in estate plans are often thought of as an estate planning activity of the rich and famous, but many Americans now purchase pet health insurance, pet vacations, pet day care and many other luxuries for their beloved animals.

So, it’s only rational to make provisions for your pets in the event of your death.

Estate planning for pets can range from the very simple to the very complex and from very inexpensive to more costly arrangements.

From simple to more complicated here are a few points to consider:

1) The Informal Memo Option -At the very least, consider putting together a memorandum to your executor and/or family members suggesting the disposition of your pets.  In this case, where no financial provision is being made for the pets and their care, it is often advisable to discuss the plans with the friends or relatives involved to ensure that they will, in fact, take on the responsibility. In any case, a memorandum that sets out instructions is still always a good idea.

What something more complicated but more certain?

2) The Outright Gift Option – Consider a bequest to heirs or others who agree to care for one or more pets.  Remember, selection of such care takers is important where there is a flat and outright bequest sine there is no way of knowing how long the responsibility will last.  For that reason, and given the high cost of equestrian care, many horse and other pet owners prefer a gift to a trust where the trustee can ensure that care givers get what they need to Providence continuing care at the right level anticipated by your trust and in your memorandum of instructions.

3) The Trust Option – First, be aware that not all states permit a trust for pets and animals. Pennsylvania and thirty one other states have, however, adopted such a law.  Next, review the issues such as: identifying your pets (the ASPCA site even suggests DNA identification), identifying a caretaker and trustee.  A memorandum to the trustee and care takers with specifics about your pets needs, and your desires for care can be vital. Finally, determine how much will be needed and who gets the balance at the death of your pet or pets.

For more on these issues and equestrian issues watch for more articles.

By:  David Frees – Attorney

For more information on estate planning and trusts for horses, and pets, call at  no obligation for a consultation with David M Frees III.  David’s practice focuses on trusts, estates, and related pet and equine issues in estate planning. dfrees@utbf.com

610-933-8069

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The Inherited IRA can provide powerful tax deferral benefits for named beneficiaries. In order to optimize the tax deferral options, the

original owner must properly structure beneficiary designations in accordance with I.R.S. rules and regulations. The I.R.S. has laid a mine field of beneficiary designation traps that can either serve to reduce or eliminate the income tax deferral for the beneficiary. If you are writing a beneficiary designation form, you must take great care when integrating it with the other estate planning documents such as wills and trusts. I encourage you to seek legal or tax counsel when activating these designations.
Beneficiaries themselves must also take care in how they initiate and follow the beneficiary claim process. Read this article for withdraw options. Great care must be taken when reviewing the claim forms and options. Again, a single stroke of the pen might result in years of lost deferral. Additionally, trustees claiming a trusts interest in an IRA must take even greater care in making a claim on behalf of the trust beneficiary. Tremendous fiduciary liability risks are lurking and can be avoided with proper guidance. Read this Forbes article on the Inherited IRA issues for some additional guidance.

Douglas L, Kaune 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. Doug can be reached at 610 933 8069 or at dkaune@utbf.com. The Law Practice serves towns such as Royersford, Collegeville, Limerick, Devon, Frazier, Berwyn and others in Chester County, Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Pennsylvania (PA).

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Local attorneys David M Frees III and Douglas L. Kaune, both of Unruh, Turner, Burke and Frees are proud to announce their sponsorship of Phoenixville’s first ever TEDx conference to be held this September at the Colonial Theater on Bridge Street in Phoenixville, Pennsylvania.

“I am a big fan of the TED Conference and the speakers at TED run the gamut in terms of topics, skills and ideas. So it’s very exciting to be a part of the great team of people and sponsors helping to bring the local version of TED to Phoenixvile.” said David Frees a local lawyer. “TEDx isn’t about law or legal issues but it’s a great event and fantastic for the Phoenixville area. And we try to support the Borough of Phoenixville and many of the projects that we believe improve the quality of life in town.”

For tickets and information click this image or the links below.

To get more informaion on TED and specifically, on the local TEDx programs to be held in Phoeniville click the links below:

TED CONFERENCE VIDEOS

TEDx in PHOENIXVILLE

For more information you can also call the Colonial Theater at 610-917-1228 or the law offices of Unruh, Turner, Burke and Frees at 610-933-8069. Our client relations manager, Beth McNulty will be happy to get you additional information about the conference.

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Just over a year ago I posted an article advising you of the birth of our son, James Douglas Kaune. I also took the time to emphasize the need to do proper estate planning to protect your minor children. Well, James is now 13 months old and his Birthday picture is shown on this posting. Time sure flies. James has been great fun and a joy to have in our lives. We are very thankful to have him!

In keeping with the estate planning for minors theme, I thought it was appropriate to remind you that if you have not prepared a proper Last Will with guardianship provisions and trusts for minors you should do so now to make sure your child or children are properly cared for if something happens unexpectedly. You should also remember to update your beneficiary designations on IRA’s, 401k’s, 403b’s and life insurance to properly make use of the trusts you create under your wills. These are very important items to take care of. I know it can be hectic with children, work and other obligations, but you will feel much better after you take care of this important checklist item. Here is an article with some additional considerations when estate planning for your children.

Contact, Douglas L. Kaune, Esquire with questions about your estate planning or other legal questions (dkaune@utbf.com)
Unruh, Turner, Burke & Frees, P.C. having Offices in Malvern, Phoenixville and West Chester, PA
PH (610) 933-8069
Fax(610) 240-9323
www.utbf.com

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Pennsylvania, through its Inheritance Tax, is one of many states that applies a death tax upon the estates of its deceased residents and real property owners. I think it is interesting and important to know about the other state death tax systems. Check out this site for a review of how Pennsylvania and all other estates apply their inheritance tax systems. Keep in mind that real estate owned in a particular state is taxed in accordance with that state’s laws regardless of where the deceased owner resided at death. We frequently represent the estates of deceased Pennsylvania residents who own valuable real estate in other states such as New Jersey, Delaware and New York. Knowing the tax laws of other states can help us incorporate the proper estate planning not only for Pennsylvania inheritance tax concerns, but also other laws that might apply to our clients.

Please feel free to contact Douglas L. Kaune, Esq. any time at 610-933-8069 or dkaune@utbf.com to discuss your particular Estate issue to determine the appropriate planning for you and your family.
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 Malvern, Phoenixville, West Chester Offices serving Chester County, Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Pennsylvania (PA).

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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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PA Case Tells Us To Review Tax Clause To Insure that the Correct Party Pays the Inheritance Tax on the assets In Your Estate.  In Re Estate Of Thomas P. Allen, 2008 PA Super 260 Atlantic: 960 A.2d 470 the decedent had a will and the will contained a Tax

Clause intended to determine whether the estate or each individual beneficiary would pay related estate or inheritance taxes.   However, the Tax Clause was poorly drafted and deemed “ambiguous.”  Therefore, the Court chose to rely on PA statutory law 72 P.S. § 9144(f) which requires each beneficiary of both probate and non probate assets to individually pay the tax on what they inherit.  This statutory provision is frequently contrary to the testator’s intent and should not be relied on.  This case further demonstrates the importance of every clause in your will and, in particular, the need to review and revise documents with experienced legal counsel.  Experienced counsel will help insure that your wishes are carried out.

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 or Probate matter to determine the appropriate planning for you and your family.
Unruh, Turner, Burke & Frees is a full service law firm with offices located in Malvern, Phoenixville, West Chester, PA.
Wills * Trusts * Elder Law * Probate * Asset Protection * Power of Attorney * Estate Planning

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Wills * Trusts * Elder Law * Probate * Asset Protection * Power of Attorney * Estate Planning                                   Douglas Kaune, Esquire Attends 11th Annual Pennsylvania (PA) Elder Law and Estate Planning Symposium.  It is great to get an update regarding the law changes, new cases and politics that shape Elder Law, Estate Planning, Trust Planning and Probate.  Here is a link to this Pennsylvania Bar Institute (PBI) course and the interesting topics covered.  I will be providing much of the interesting information in upcoming Unruh, Turner, Burke & Frees Estate and Elder Law Blog postings.  

Stay tuned for updated information on the following topics and more: 1. How to make sure joint accounts actually pass to the person you intend.  2.  How to insure the tax clause in your last will actually confers tax lability on the correct beneficiary or your estate.  3.  How to make use of annuities to protect assets in Medicaid and Nursing Home Planning.  4.  How to take advantage of the Medicaid Gifting exceptions to allow assets to pass to certain loved ones and family members.  5.   How to properly plan your estate in a second marriage or where there are children from different relationships.   6.  Is a Special Needs Trust right for you or for a member of family, if so how can we make sure it properly protects assets and government 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, Probate, Trust, Asset Protection or Elder law case to determine the appropriate steps for you and your family. Unruh, Truner, Burke & Frees, P.C. is a full service law firm with offices in Phoenixville, West Chester and Malvern and providing legal representation in the Chester County, Montgomery County, Delaware County, Bucks County, Berks County and Philadelphia County. Among the many towns served are Phoenixvile, Malvern, West Chester, Royersford, Collegeville and King of Prussia.

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