What You Need to Know about Beneficiary Designations

Some assets fall outside of your will/trust and your beneficiary designations control who gets those assets.What should you know about Beneficiary Designations?

The Family Limited Patnership In Estate and Business Planning

The Family Limited Partnership is alive and well in estate planning. However, you must be more cautious than ever to take advantage of the many business and estate planning benefits of the FLP to avoid IRS scrutiny pr challenge.

Asset Protection Of Bank Accounts - It's Not All About The Signature Card

A Florida bankruptcy judge has rules that a couples' actions after establishing a bank account might destroy the protected joint status of that account. This is a good to know in any jurisdiction

Estate Planning - The Issues and Strategies For Families With Minor Children

Pennsylvania attorney David M. Frees III on estate planning issues unique to families with young children. Have children 18 or under? Then this article is essential reading.

529 Plans The Top Five Reasons

The five top reasons to do a 529 Plan to save for college education and web resources for more information about the Pennsylvania 529 and how to compare the pros and cons of state 529 plans

Tiger Woods, Prenuptials and Estate Planning For Second Marriages

Tiger Woods disaster reminds us that prenuptials aren't just for divorce. Prenups and post-nuptial agreements are a powerful too for avoiding disputes about estate planning in second marriages.

When It Comes To Bank and Investment Accounts Less Can Be More

Many clients have too many bank and investment accounts. Keeping track of lose stock certificates and multiple cds and investment accounts can drive up fees, result in lost accounts and information, and make planning almost impossible. When is a lot of accounts too many?

Protecting Your Estate and Wealth: Do You Rush in Or Go Slow as Markets "Recover"?

   By:  David M. Frees III - Phoenixville - Malvern- West Chester
Practicing in the areas of wills, trusts, and estates for selected clients in the Commonwealth of Pennsylvania and with your local counsel through out the United States.

As regular readers know, this section of the site is generally deicated to techniques of asset protection.  However, maintaining assets in a down market and growing assets through time is a significant part of building and preserving wealth.  So today's article will review the timely and yet evergreen question of "How fast to go back into the market."

When financial markets are bad, the question of when to enter is important- especially if you left or diminished your equities at some point on the way down. And, whether or not you are a dollar cost averaging investor, the decision is vital.  Why?

Often, bear market rallies draw investors back into the markets before the real recovery has begun and more losses can be sustained.  However, if you are too passive, the real bull usually comes on so quickly that many investors who withdrew from a bad market miss the rebound are start growing their wealth again from a highly dimished base or foundation.

Behavioral financial studies have shown, and human nature more generally supports the finding that investors fear of loss exceeds their desire for finacial gain.  As humans, we like homeostasis (or keeping things just as they are).  So given this what is an investor to do?

Well, the financial firm Berstein has recently published an article right on point.  It is available at Berstein - Jump In or Go Slow?  Strategies for Entering The Market.

You can also download the article on when to invest to protect and grow your assets here.

This brief six page article is full of ideas, analysis and practical information.  Enjoy and keep your ideas, comments, and questions coming.  Thank you.

David M. Frees III, Esquire - practicing in the areas of wills, trusts, estates, and asset protection in Pennsylvania

610-933-8069
dfrees@utbf.com

Free Reports for those acting as executors, planning your estate or considering asset protection.
Click here to order free reports for executors and for those considering or updating wills, trusts, and other planning techniques such as QDTs, GRATs, and ILITs

Is An IRA Still Protected From Creditors After The New Florida Case?

In a recent Florida banckruptcy case, the court held that an IRA was not protected from creditor's claims.  As an ordinary rule, IRAs receive a higher level of asset protection than non retirement assets.  So, what is the current state of affairs?  Is your IRA protected if you get sued?

Well, the new case has opened a new way for creditors to attempt to access these asssets in litgation.  However, the court's ruling was limited to one of three IRAs which was a self directed IRA.  In this case, the court found that the defendant's violation of rules contained in the Internal Revenue Code were the source of the Plaintiff's ability to reach these assets.

HINT: In the event that you have a self directed rather than a traditional IRA, be sure to observe all of the rules related to prohibited parties, and prohibited transactions to maintain your creditor protection.

David M. Frees III, Esquire

David M. Frees Chairs the Trust, Estate, and Wealth Preservation Section of
Unruh, Turner, Burke and Frees and assists clients in developing comprehensive
estate plans and asset protection plans to protect their legacy for themselves and
for family members and loved ones.

Frees has offices in Phoenixville, Malvern, and West Chester and his firm serves clients
throughout Chester County, Delaware County, Lehigh, Berks, Bucks, and Montgomery
counties.

For more information please call 610-933-8069.

Protecting Yourself from Uninsured Drivers

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Money In Your Mattress? Another Reason To Worry.....

I just received an email from Kurt Kunsch who heads the trust department of Phoenixville Federal Bank and Trust.  In the interest of full disclosure, I am a member of the board of directors and the trust committee of this bank and trust company.

He forwarded an artcile that I think is hilarious and closed by saying that the trust department will be accepting the deposit of mattrresses all week.  Enjoy and learn. Kurt's contact information is below if you have any questions about the value of your family bedding.

David M. Frees III
Unruh, Turner, Burke and Frees
Estate Planning, Trust Planning, Asset Protection Planning and Family SuccessionPlanning

Here is Kurt's email in it's entirety:

Trust & Asset Management|Phoenixville Federal Bank & Trust |
533 Kimberton Rd, PO Box 1046, Kimberton, PA  19442-1046 
(: 610-935-8304 7: 610-415-0149 *: kkunsch@phoenixfed.com

P Please consider the environment before printing this e-mail.

CONFIDENTIALITY NOTICE: This e-mail contains privileged and confidential information intended only for the use of the individual or entity named above. If the reader of this e-mail is not the intended recipient, you are hereby notified that any retention, dissemination or copying of this e-mail is strictly prohibited. If you have received this e-mail in error, please immediately notify the sender by telephone at the above number and delete the original e-mail from your system.

Family Finances - Should You Be Doing Things Differently?

If you want to learn the seven strategies of protecting your finances and your family's financial well being in a bad economy then this article is a quick must read.

Many of the old rules no longer apply.

Is six months of cash enough?

How much insurance should I have?

I'm a long term investor so I'll just ride this out.

How do I save more in case this bad economy continues?

If you have asked any of these questions or made any of these statements, you might be headed for real danger.
To read the first in a three part series about the new rules of family finances and the hidden dangers in the old assumptions just click here.

David M Frees III is an attorney representing affluent families, business owners, executives and banks and trust companies in the areas of trust and estate planning, wealth preservation in Pennsylvania and Chester, Montgomery and surrounging Philadelphia counties.

Off Shore Accounts: Do You Need One? Are They Legal?

There has been quite a bit of recent media attention focused on the notion that off shore bank accounts are the sole provice of those engaged in illegal activities or money laundering.  And , there are many abuses which can and should be curtailed.

However, there are a number of reason's that American citizens ( and perhaps even you) want to maintain an off shore account or already do.  Tax evasion should not be one of them becasue American citizens are taxed on all earnings thorughout the world.

However, powerful asset protection, convenience, investmet diversification and other reasons do exist.

This article examines some of those strategies with an interesting theory that the government's media circus on this issue is designed to deter law abiding Americans from utilizing this asset protection technique.

To read more about the legal and strategic reasons for an asset protection plan and an off shore account, click here.

Using Family Limited Partnerships

Family Limited Partnerships can be a good strategy to shelter assets and reduce gift and estate taxes. The Family Limited Partnership was designed to help preserve a family business for future generations.  Covering your assets by Mark Klimek in The Wall Street Journal explores what is a Family Limited Partnership. The article  gives a brief guide on how to set one up and the rules that go along with it.  Find out more about the do's and don'ts of Family Limited Partnerships.
To read the entire article on Family Limited Partnerships click here.

Asset Protection Alert For Contractors and Those Who Do Work In Or Around Homes

If you are a contractor, painter, lawn or landscape contractor, landscape architect, remodeler, plumber, or electrician, you may be subject to the many new requirements of the PA Home Improvement Contractors Act (73 PS 517.1-517.19).  Failure to follow these requirements may result in significant penalties and civil and criminal legal problems.

Here is a partial list of those who may be affected:

These people may be subject to the Act if they work on residential properties (this list is not exhaustive):

 Anyone who does home remodeling or basically installs any improvement in or around the home. 

 Electricians, plumbers, framers, roofers, etc.  Even if they do not enter into contracts directly with consumers. 

 Underground/invisible pet fence contractors

 Landscapers

 Locksmiths

 Fencing companies

 Paving companies

 Pool companies

 Security system companies

A retail store that installs products in the home (i.e. a flooring store that installs floors).

 Interior Decorators  (if they install or subcontract for painting, installing fixtures, drapes, etc.)

 Radon companies

Building supply retailers (if they also install)

 Mobile home or RV repair

 For a copy of the act or for documents that comply with the new act please call 610-933-8069 and ask for the new Home Improvement Contractors package or click here for the attorney General's FQA and a copy of the act.

While the lawyers that work directly with me in our trust, estates, and asset protecttion section focus their work on estate planning, wills, trusts, and asset and tax planning and protection, compliance with new laws is important for our clients.  Accordingly, we ask lawyers in the firm's other departments to keep us posted of important legal changes that may affect our clients.

David M. Frees III, Esquire
610-933-8069
or email dfrees@utbf.com to request the new law package.

Estate Planning and The Credit Crisis. Why Understanding It Might Help

A big part of any effective estate plan is developing a strategy to build, to grow, and to protect and to preserve assets.  If you don't undertand the effects of todays credit crisis on your plan and your assets then you are at the whim of others.  Now I say that we shouldn't obsess about the economy.  And, it is important that we not become so possesed by the bad news that we feel out of control or fail to act on what we can control.  But, there are many things that we can control and understanding what has happened to our economy at the macro level helps us to move forward with planning.

This video is a powerful lesson in just a little over 11 minuets.

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

Thank you. 

David M. Frees III, Esquire.

The FLP So Good - But Not For Your Personal Use

FLPs or family limited partnerships have been used by Pennsylvania residents as a sophisticated estate planning technique for years.  And, many Pennsylvania will and probate lawyers have encouraged the use of FLps as a best practice for wealthy clients.  The technique can help control assets, provide for managment of family businesses, and can provide creditor protection from your own creditors and ;itigation against your children and heirs. 

David M frees III as an attorney representing many affluent and moderatly affluent families has been recommending the use of family limited partnerships for all of these reasons.  However, as family limited partnerships have become more mainstream he has also noticed (like many other advisers) that families want to move all of their assets into these vehicles.  However, moving homes, cars, and other personal use assets into family limited partnerships can be a recipe for disaster.

To find out even more about FLPs click here.

David M. Frees III, Esquire

610-933-8069

Unruh, Turner, Burke and Frees serving clients in Chester, Montgomery, Philadelphia, Lancaster, and
Delaware counties and with officeis in Phoenixville, Malvern, and West Chester Pa.

Frequently Asked Questions About Pour Over wills, A handwritten Will, and Who Should Be Executor?

We are alwys looking for ways to help you in your estate planning and asset protection needs.  As you know, we also represent many executors and trustees to make sure that the estates and trusts are administered as quickly, efficiently and cost effectivly as possible while still protecting you from laibility.

One great way to provide you with information is for us to answer your questions.  So please feel free to leave a question below as a comment, or to call (610) 933-8069, or email me with questions concerning wills, trusts, estates, death tax avoidance, estate planning , or your questions related to estates and trusts.

We recently posted brief transcripts of me answering these questions:

1. What is a pour over will?
2. How do you prove a holographic or handwritten will?
3. Who should you pick as an executor?

Please also watch this brief video for a littlle more about the questions and answers.

David M. Frees III, Esquire
610-933-8069
To Follow Dave on Twitter just click here.

Pennsylvania Attorney Recognised For Work In Estae Planning For Families

David Frees was interviewed on how Pennsylvanias can use wills, trusts, and estate planning to protect assets, family knowledge and family values.  He reviews his techniques for family communication and how to avoid family disputes over wills and estates.  Enjoy Dave's article on Family Estate Planning and Enhanced Estate Planning.

Your Car Insurance is the Suprising Foundation of Pennsylvania Asset Protection

If you are interested in how to protect your assets not only from taxation and will disputes but also from lawsuits and creditors, take a moment to review  your automobile and homeowners policies. Simply reviewing your insurance policy is one of the most inexpensive and cost effective strategies to build a fool proof asset protection plan. In fact your homeowners and automobie policies should be the foundation on which all other asset and creditors protection is built.

If you would like more information and resources read the full article by clicking here.

Pennsylvania Asset Protection - What Really Works?

Many Pennsylvania residents have heard about states, such as Delaware, Alaska, and Nevada where state laws
permit residents and in some cases others, to set up trusts that protect their assets from lawsuits.  Many other clients have told us about asset protection plans and articles that they have read but which are not really effective under Pennsylvania law.  In this post and a few future posts, we will examine a few of the most common misconceptions and we will alert you to a few of the most important strategies and tools that do work.Common

Misconceptions:

Joint Assets Are Protected from Our Creditors and from Lawsuits:

Patially true and partially false.  It is true, that when husbands and wife hold assets jointly, that those assets cannot be reached by the indiviual creditors of one spouse.  However, if you are found to both be liable, your jointly held assets might be reached in litigation.  For example, if you jointly own a house or car and someone is injured by the car or at the nouse, they might get a jusdgment against both owners.  Now they can reach jointly owned property.

Also, if there is a lawsuite against one spouse that goes to judgment against that spouse, and the husband or wife predeceases that spouse, the assets all become the property of the survivng spouse.  Then, that spouses judgment creditors can reach the asset.

Finally, jointly held assets are not protected from medicaid and nursinghomes, and if you own assets joinmtly with a child, that child's creditors might be able to reach that child's interest in the account.

Assets in A Living Trust Cannot Be Reached By Creditors

Largely false.  In most states, including Pennsylvania, a self created trust - one that you create and controll - the person who creats and controls the trust is treated as the owner of those assets and they can be reached by creditors.  There are, however, Irrevocable Trust strategies that can be effectivly used to protect assets for your spouse, children and grandchildren.

For more information on the misconceptions about asset protection and the strategies that really work for Pennsylvania residents, be sure to subscribe to this blog or check back regularly.  You can also read this brief artcile that we have posted about asset protection.  Just click here.

David M. Frees III Esquire
610-933-8069
For up to date estate and asset protection information follow David on Twitter - Just click here to follow.

You can Avoid Probate and Lose Your Own Assets Now - What's a Parent to Do?

How good is an estate planiing technique that saves 2.25% in taxes but might cuase you to be taxed on your own asset or to lose it?

That is just what can happen when you use the "joint ownership" of accounts and real estate.

There is a temptation to use joint bank accounts and the joint ownership of real estate and stock accounts to avoid probate and to lower Pennsylvania Inheritance Taxes.  However, there are substantial downside risks that should be considered before placing any type of account or real property into a jointly owneed structure.

First, let's consider the pros:

When you place an account in joint names with another person, it becomes a non-probate asset and transfers automatically on death to the joint account holder.  In short, it is simple but may not be best.

There may be a tax savings for Pennsylvania Inheritance Taxes.  If you have two joint account holders, then only half of the asset is taxed by Pennsylvania.  This rule doesn't apply to the Federal Estate Tax which taxes the entire asset.  But beware - you may pay tax on your own money if the joint account holder dies before you.

The Cons:

You mkight be taxed on your own asset during your lifetime.  That's right. If a joint account holder - let's say a son or daughter dies before you, you pay tax Inheritance Tax on your own asset.

Your heirs might be treated unequally.  If you have multiple children and make one the joint account holder of each account and then you become incapacitated, one account might be spent and the other not at all.  One child might get your entire estate.  Think that doesn't happen?  Think again.  It happens frequently.

A joint account holder might withdraw the money.  This doesn't happen often, but many account tiles allow it and it has been known to occur. 

A joint account holder might get sued or divorced and claims might be made on your asset.  Remember, it isn't just your asset.  When a child is added to an asset, there creditors might claim an interest in that asset.  This can be particularly important if you have placed your house in joint names.  This also poses very complicated and often negative income tax consequences discussed in another blog entry.

This type of ownership is mistakenly believed to protect assets from nursinghome and mediciad spend down.  However, joint accounts are a fully available asset.

In short, joint ownership may have a place in estste and trust planning and for asset protection purposes.  However, be sure that such ownership is disclosed to the team working on your estate and asset protection and be sure to discuss the pros and cons in your case.

Estate Planning and Family Communications Skills Avoiding Trouble Achieving Success

Dave appeared on Money Matters Today to discuss communications skills for families and business owners and executives.  Maxmize your estate plan during your life time with Enhanced Communications skills.  Steve Forbes has called David Frees a "Grand Master" of communications skills.  Watch this brief show and find out why and how you can use these skills for your family business, within your family to avoid problems, at work, and in your personal life.

Click here for the video link or watch below.




David M. Frees III, Esquire

Follow Dave on Twitter:

Dave Frees on Comminications on Twitter
David M. Frees Esquire on Twitter on the law

Be sure to leave us your comments or questions below.  Let us know what you want and what you need!

Asset Protection - Why Knowing Your Auto Insurance Policy Is The Front Line of Defense Part One

Many clients are interested in complicated and often expensive asset protection strategies.  And, there are many good reasons for this.  All effetive asset protection planning is about multiple levels of protection.  The more complicated the protective strategies, the harder it is for someone to get through and the more dauting the task for a person or lawyer thinking about suing you. 

In general complicated does work.  And, the plans that utilize trusts, Limited Liability Companies or corporations, insurance, off shore and domestic asset protection trusts, are highly effective, especially when these strategies are combined and coordinated. We are experienced at helping people to build a customized plan that works for them and has just the right level of cost and complexity. But complicated and expensive is not for everyone.

So, if you are looking for a simply easy, and inexpensive way to start ptotecting yourself, your loved ones and your assets, then look no further than your automobile insurance policy. 

What?   My isurance policy?  Yes.   The automobile policy is a really important part of your overall estate and asset protection planning.  First, you have to check your liability coverage.  Is it sufficient?  Think about adding an umbrella liability policy that covers your car and your hose.  It supplements your auto coverage.  If a claim is made against you and it exceeds your $300,000.00 auto  liability limit oyu're on the hook and your personal assets can be reached.  Add coverage and add a liability umbrella.  The you're covered for up to $1 million dollars of coverage or more.

Now some people ask "doesn't that make me a target for litigation?"  No.  it makes you well insured.  And, liability umbrella coverage is very inexpensive.  I have a question for you.  Who gets a better lawyer assigend to them by the insurance company?  Some one with $300,000.00 or some one whose coverage puts over a million dollars of the insurance company's money at risk.

Now there are many more coverage issues to consider including uninsured and underinsured coversges.  These are some of the most important coverages and asset protection devices available.  Many Pennsylvania drivers have ultra low limits or no insurance.  If you're in an accident with one of these drivers you may never recover.  You pay quite a bit in premiums to protect other drivers.  Make sure that some of those premium dollars now protect you.

Then, there is the issue of full tort vs. limited tort.  These topics are the subjest of upcomming blogs.  Be sure to follow the blog for more updates and information that you can use.  Hve a question?  Leave a comment below or email me at dfrees@utbf.com

Also, watch for my soon to be published book on these insurance issues where we reveal the secrets that many Pennylvania insurance companies and agents don't tell you about protecting yourself, your assets and your loved ones. I wrote this book with my brother Robb Frees a licensed Pensylvania insurance agent for over 20 years so you get the inside information that you need.

For even faster updates of the msot imprtant legal topics follow me at www.twitter.com/davidfreesesq

David M. Frees III Esquire
Visit My Biography and the firm Web Site for More Information
To Schedule an appointment call Donna, Tara or Denise at 610-933-8069 and mention David Frees' web site to receive bonus estate planning materials at the time of your consultation.