Wealth Preservation, Trusts and Estates

In our practice we have the experiences representing Executors  that are necessary to help present clients avoid future problems occurring after death.  Everyone wants and expects that their wishes as set out in their  Last Will will be followed and will be properly carried out.  In some cases, clients want to divide their estate in a way that might not follow the traditional “family line.”

As a result, we know that this might not sit well with all of the beneficiaries when the time comes to divide the estate.  Those beneficiaries might be so upset or might have such a substantial economic stake that they might consider contesting the will.  A Will contest  will likely be very expensive and time consuming.  We should take steps now to avoid that future possibility.

There are a number of things that can be done to head off potential will contests.  One such measure is to actually address the issue now with those who will be impacted.  This is a surprisingly novel idea.  Many people are reluctant to talk about their Wills with their children or loved ones, especially with those who might be negatively impacted by the Will contents.

However, giving the impacted beneficiary or beneficiaries notice of the intentions in advance of death, you can pre-address the common arguments made by those contesting wills.  Common bases of will contests are lack of capacity or undue influence.  If you address and defeat these and other arguments now, you can virtually eliminate the will contest option for the omitted or affected beneficiary.  This is not to say other options such as the Interrorum Clause  should not be utilized, but this might be a practical solution to a forseeable problem.

If you would like to review potential will contest issues or other planning concerns, please call or contact Douglas L. Kaune at 610-933 8069 or dkaune@utbf.com.

Douglas is a partner with Unruh, Turner, Burke & Frees, P.C. having three convenient locations in Phoenixville, Malvern and West Chester, Pennsylvania (PA) serving clients in Chester, Montgomery, Delaware, Bucks, Berks, Lehigh and Philadelphia Counties.

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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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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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Avoid Probate With A Revocable Living Trust In Pennsylvania (PA). I want to remind everyone to consider a combination of a pour over will and revocable living trust to help avoid probate for your estate. Read here to learn more about the mechanics of a revocable living trust. There are many people who choose to use a revocable living trust because they want to save some time and expense for their beneficiaries by avoiding probate.  Here is a great link to David Frees, Esquire’s review of the probate avoidance debate.  The will and trust themselves are only the first step, you must also properly title all of your assets into the name of the revocable trust during your lifetime in order to fully avoid probate. We often work with clients to prepare the pour over will, revocable living trust and also to retitle bank accounts, stock accounts, real estate and other assets into the revocable trust name. This is likely to have a higher upfront cost for the consumer, but it will likely serve to provide a savings of time and money for the beneficiaries of an estate. The revocable living trust is not an estate planning tool for everyone and it certainly makes more sense for some than others. Using a will alone or a will and a revocable trust is a personal choice that clients make when deciding the best way to accomplish their family estate planning goals. Read here to learn more about the revocable living trust pros and cons.
Please feel free to contact Douglas L. Kaune, Esquire any time at 610-933-8069 or dkaune@utbf.com to discuss your particular estate plan and determine if the revocable living trust is right for you.
Wills * Trusts * Elder Law * Probate * Asset Protection * Power of Attorney * Estate Planning
Malvern, Phoenixville, West Chester Offices Chester County Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Law Practice Locations.

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Roth IRA Conversion Might Equal Estate Tax and PA Inheritance Tax Savings. Many individuals are considering whether or not to take advantage the new Roth IRA conversion rules. Read this Smart Money article for some of the issues to consider for Roth conversions. This decision will require an in depth analysis of each individual’s circumstances and goals. That being said, the Roth IRA conversion is likely to create a PA Inheritance and Federal Estate Tax savings in estates where thoses taxes apply. Generally speaking, paying the income tax associated with your IRA now will serve to reduce the overall size/value of your estate. This will theotically reduce the assets subject to estate and inheritance tax at death and help avoid the possible “double or tripple taxation” of your IRA at death. The possible estate and inheritance tax savings are not the sole determining factors, but can likely be placed in the positive column when making the overall assessment to conert your traditional IRA or not.
Please feel free to contact us any time at 610-933-8069 or dkaune@utbf.com to discuss your particular estate/probate case to determine the appropriate fee structure for an attorney or executor.
Wills * Trusts * Elder Law * Probate * Asset Protection * Power of Attorney * Estate Planning
Malvern, Phoenixville, West Chester Offices Chester County Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Law Practice Locations

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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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Who Will Initiate Probate: Probate is the court adjudicated process that an Executor or Administrator follows in the estate of someone who dies in Pennsylvania (PA). The Executor is a person or trust company named in a will. The Administrator is a person or trust company appointed by the Court where no will exists, Where there is a will that does not name an Executor or where the will names an Executor(s) who refuses or fails to act. Generally, the intestate beneficiaries or their appointees will have the first option to act as Administrator if one of the above circumstances were to arise.

What You Need To Start Probate: The basic requirements are the original will where one exists, original death certificate, Petition for Probate and Estate Information Sheet often prepared by the Attorney/Lawyer for the estate, check for probate fees paid to the Register of Wills, renunciations if necessary and witness affidavits if the will was not notarized.

Where Probate Takes Place: The Executor is appointed at the Register of Wills Office in the county in Pennsylvania where the decedent resided at death. Locally, one of the following courthouses would likely have jurisdiction: Chester County: West Chester, Montgomery County: Norristown, Delaware County: Media, Philadelphia County: Philadelphia, Bucks County: Doylestown, Berks County: Reading.

Once the Executor/Administrator Has Been Appointed: The remainder of the estate administration and probate requirements for PA will have to be followed. Among the requirements will be notice to the beneficiaries, periodic status reports to the court, gathering information for preparation and filing the PA inheritance tax return and federal estatate tax return (where necessary). Obviously each estate is different and the work necessary for completing the estate administration will vary from case to case. We will provide you with follow up postings about the probate process and ways to avoid potential problems and issues once you are appointed as the Executor/Administrator.

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

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