Wealth Preservation, Trusts and Estates

It is important to make your estate planning documents flexible. As best as possible, we try to foresee the future and address the planning possibilities. We know it is not possible to address everything now for a trust that could be in place 10, 20, 50 or 100 years from now. So we give the succeeding generations the power and authority to adapt and deal with the future circumstances. We want the tax and creditor, divorce and asset protection enhancements and benefits provided by trusts, but we do not want the trusts to become an inadvertent burden on the beneficiaries.

Two powers providing needed flexibility to a Trustee are the authorities to name either a co-trustee to act with him/her or to name his or her successor. The ability to name a co-trustee may be valuable where the named trustee is in unexpected need of professional assistance because of complexities dealing with the trust assets, the legal requirements of the trust, or in dealing with the trust beneficiaries.

The named trustee may want to stay involved as co-trustee, but they may also want the formal assistance of a professional trustee. Note that the named trustee is also typically given the power to remove the professional trustee if appropriate or necessary.

Secondly, the trustee power to name his/her successor is invaluable. Again, we do not know how long a trust will continue or if a trust will benefit succeeding generations. Therefore, we do not know that the named trustee or trustees will have the longevity or continued willingness to act. Giving the trustees the power to name a successor will help to prevent a situation where no trustee is available to act.

Take care to grant these and other powers to your trustees. You cannot predict the future so let the Trustees deal properly with the events they face in the future. If you would like to update your documents, where possible, or would like to review these and many other planning nuances that can help accommodate the future needs of your trustees and beneficiaries, 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. serving clients in Paoli, Collegeville, Royersford, Berwyn, Wayne, Pottstown, Norristown and all other towns surrounding the Firm’s three convenient office locations in Phoenixville, Malvern and West Chester.

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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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As a result of the more lenient Roth conversion rules, we have been reviewing the federal estate tax,

income tax and distribution issues relating to Roth IRA conversions with clients. I thought this article provided a nice synopsis of the distribution rules facing beneficiaries of a Roth IRA. Here is another article with some additional considerations. Please note that these articles are not exhaustive of the issues, but serve to give you a good starting point for understanding decisions to be made as an IRA owner and as someone inheriting an IRA.

Please feel free to contact Douglas L. Kaune, Esq. any time at 610-933-8069 or dkaune@utbf.com to discuss your particular IRA and ROTH IRA estate planning issues or issues you are facing as a beneficiary of one of these accounts to determine how best to proceed.
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, West Chester Offices serving Wayne, Paoli, Downingtown, Radnor and the following counties: Chester County, Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Pennsylvania (PA).

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IN RE: ALICE G. NOVOSIELSKI: PA Supreme Court Rules On Joint Account Case MARCH 25, 2010. The Supreme Court of Pennsylvania overturns the Superior Court on appeal. I think the Supreme Court got this one right. You can read the entire Novosielski Case here, but the general ruling is that accounts made joint by a decedent AFTER the signing of his or her Last Will and Testament will still transfer to the surviving joint account holder. The Superior Court’s earlier ruling that accounts made joint after a will was signed, and in contradiction of the terms of the will, could have been rendered invalid and the joint assets transferred according to the decedent’s will. The earlier ruling would have necessitated revisions of wills and close scrutiny of the timing of joint account creation. It also jeopardized the sanctity of the joint account contract between a financial institution and its customers. We, as PA Estate Planning and Probate Attorneys and PA Residents can breathe a sigh of relief.

Please feel free to contact Douglas L. Kaune, Esq. any time at 610-933-8069 or dkaune@utbf.com to discuss the preparation of wills, powers of attorney, trusts and living wills.

Wills * Trusts * Elder Law * Probate * Asset Protection * Power of Attorney * Estate Planning
Unruh, Turner, Burke & Frees, P.C. is a full service firm with Malvern, Phoenixville, West Chester Offices also serving Berwyn, Wayne, Newtown Square, Paoli, Exton, Downingtown, Devon, Chester County, Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Pennsylvania (PA).

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Although you are permitted to name anyone or anything as the beneficiary of an Individual Retirement Account (IRA), there are many pitfalls that must be avoided. Naming a Trust as the beneficiary of an IRA is an important estate planning opportunity, but the Trust and the beneficiary designation language must be drafted properly to insure that the beneficiaries can receive maximum available tax deferral. I have the opportunity to see the mistakes that individuals make with their estate planning documents and beneficiary designations and know that these mistakes can cause hundreds of thousands of dollars of loss. The IRA Trust terms such as “stretch out”, “Measuring Life”, “conduit Trust” and “See Through Trust” can be confusing and complex. Read this article by Natalie Chaote to get a better understanding of the issues faced when naming a Trust as IRA beneficiary. While you are at it, check out this Natalie Choate IRA article here for some another interesting fact pattern

Contact Douglas L. Kaune, Esq. any time at 610-933-8069 or dkaune@utbf.com to review your estate planning and particular IRA beneficiay designation concerns and desires. We can then determine how best to approach this complex legal issue.

Wills * Trusts * Elder Law * Probate * Asset Protection * Power of Attorney * Estate Planning
Malvern, Phoenixville, West Chester Offices serving Wayne, Newtown Square, Media, Paoli, Frazier, Exton, Norristown, Radnor, Chester County, Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Pennsylvania (PA).

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