Davi M. Frees III, JD

The death of a family member can affect the family in one of two ways. Death can either bring family members together or it can cause disputes pushing family members apart.Disputes among family members often occur when the estate planning is unclear and survivors have differing views of what was intended. This can happen when a will or trust says one thing but accounts are structured differently.

For example, if a mother has a Will that states everything should be divided equally among or between her children, but owns a joint bank account with only one of her children there may be confusion about what was really intended. This joint account would then be passed on to that particular child and not be spilt equally among all of the children. A joint account generally passes outside of the will because it is considered to be a non-probate asset meaning it passes directly to the surviving owner rather than through the will.

In most instances, joint accounts are used as “convenience accounts”. In such a case, a mother would have a joint account with her daughter so she could help with the finances. The joint owner, the daughter, is then able to write checks, make payments, withdrawal and deposit money to that specific account without her mother's signature or participation.

This seems to be a good idea because the daughter is able to help take care of the finances for her mother who may no longer be capable of doing so. However, the problem beings when the mother passes away. The joint account then gets passed directly to the remaining account owner - the daughter. The only way that the joint account would not pass to the surviving person is, if there is clear and convincing evidence of a different intention at the time the account was created. Most of the time, clear and convincing evidence is very hard to prove which ultimately leaves the surviving account holder in power and can seem arbitrary or contrary to the will.

The family dispute would begin when the surviving account owner, the daughter, states that the account was always intended to go to her, but the others feel that the account should be added to the estate and divided equally. The dispute could get even worse if the joint account was created not long before the passing of the decedent. The dispute could get so heated that it could end up being litigated which takes time, money, is extremely stressful, and can further damage family relationships. And, while mediation of family will disputes can minimize cost, family friction and court interterm, avoiding these disputes, wherever possible, is the best type of planning.

Instead of having joint accounts, the use of a financial power of attorney can eliminate the possibility of disputes when dealing with individuals having control or helping with other peoples finances. When a financial power of attorney is used, the child or person assisting the elderly family member can write checks and conduct financial transfers, but the assets remain available for distribution under the will.

David M. Frees, III, JD
For more information call, 610-933-8069
dfrees@utbf.com 

The recent case of famed artist 

The recent case of famed artist 

• No family members as beneficiaries or as executors and trustees.
• Larger estates or trusts.
• Disputes between or among the parties.
• Late or no inventory or accountings filed or trust notices given.
• Inaccurate or no record keeping.
• Unacceptable accounting practices.
• Disproportionate or unusually large transactions.
• NSF checks and bank charges, late payment charges, payment of interest or penalties.
• Use of ATM’s or gift cards.
• Health, business or personal problems of the fiduciary.
• Financial problems of the fiduciary, such as tax liens, judgments or bankruptcy.
• Difficulty in obtaining a bond or failure to renew it.
• Attorney with a history of neglecting or mishandling probate matters.
• Fiduciary with limited experience (especially where the estate is large or complex).
• Poor or no supervision of fiduciary by the attorney.
• Ignoring requests of court and ourt orders.
• Pattern of rebuffing reqquests for information by beneficiaries or the attorney or court.
• Unauthorized or uncommon gifts or loans.
• Pattern of complaints against the fiduciary.
• Transfers between bank accounts, particularly when close in time to inventory or accounting dates.
• Lack of contact between fiducairy and benefciaries.

These are also the factors that Pennsylvania courts might consider in making decisions about
whether a fiduciary should be removed, or whether some other action should be taken to protect the interest
of the beneficiaries.

But, many of these you should monitor yourself in carrying out your role as executor, or as attorney
for the fiduciary.

These are indicators or symptoms of a probate or trust administration gone awry.
If you detect them, they will require your immediate attention or you or your client will risk that the failure to
act promptly, can subject you to legal action and cost the executor or trustee money. 

David M Frees III, JD 610-933-8069

David Frees advises banks, trust companies, and individual executors and trustees
on matters related to administering trusts and estates
and acts as a mediator of family, trust, and estate disputes. 

Estate tax elimination or reform has been the focus of mostly republican house and Senate members.
In this Huffington Post piece, the author explores why left leaning economists are now arguing for some
types of reform.

http://www.huffingtonpost.com/scott-drenkard/estate-tax-repeal_b_1882227.html

But, what this Pennsylvania family got when they took the coins to the
mint to be valued was the total confiscati0oj of their inheritance
by the federal government.

Sound strange?

It is.  

For more information about how
a Pennsylvania family lost an $80 million dollar inheritance
click here. 

For more information on protecting your inheritance in
Pennsylvania order our reports on this page or watch our video library on
estate planning and inheritance taxes.

David M.. Frees III, JD

610-933-8069 

You would use a supplemental needs trust to provide for a disabled loved one, such as a child, in the event of your death. The trust, also called a special needs trust, allows you to give assets, such as money and property, to the disabled person without disqualifying them for public programs like Social Security or Medicaid. A Phoenixville trusts and estate attorney can provide further details.

The disabled person is not in charge of the supplemental needs rust. You would designate a trustee who would be in charge of the trust and distribute it to the disabled person as needed. However, the disabled person must use the money for goods and services that are not necessities. If money from the trust is paid directly to the person who uses it for food, clothing and shelter, the individual could have a reduction in Social Security payments. Non-essentials such as education, entertainment, Internet, telephone and cable are examples of things the trust can be used for without any reduction in benefits. A Phoenixville attorney can assist you if you are unclear about what are considered non-essential items.

A supplemental needs trust must include a legal document, trustee, property and beneficiaries. When choosing a trustee, you may want to consider a trusted relative, bank, financial advisor or a combination of these.

If you are considering a supplemental needs trust for one of your family members, consult with an experienced Phoenixville attorney.  Unruh, Turner, Burke & Frees has several lawyers who can help you with your trust and estate planning needs. Contact David Frees today at 610-933-8069.

Using Social network sites during mediation should be carefully monitored and, perhaps, limited. Social media sites like Facebook and Twitter are used by hundreds of millions of people. Therefore, anything you publish on these sites could be discovered and used against you. This could be detrimental to your mediation. Contact a Phoenixville mediation attorney for details.

Social network use can be especially harmful when you are in the process of mediation for a divorce. According to the American Academy of Matrimonial Law, 81% of its members have used Facebook as a source of evidence against one spouse in a divorce case. So you should remember that your ex-spouse might use anything you post online against you. During mediation, you want to avoid sharing anything that could put you in an unfavorable light while negotiating child custody or division of assets. So those photos of you drinking with your buddies or making out with your new boyfriend should be kept offline until after the divorce has been finalized.

There are three main reasons why Facebook can destroy your divorce mediation:

• It can prove adultery if it shows inappropriate messages between you and a member of the opposite sex.
• It can show photos of either spouse engaging in inappropriate behavior.
• It can show nasty messages one spouse wrote about the other.

If you are considering using mediation to settle your dispute, consult with an experienced Phoenixville mediation attorney. Unruh, Turner, Burke & Freeshas mediators who can help you resolve your conflict without costly court fees. Contact us today at 610-933-8069.

These laws are now being used to enforce responsibility for nursing home costs as the new medicade law disqualifies more and more people who have attempted to move funds out of their names only to find that they need care during the long look back and disqualification period.

The state of Pennsylvania has now seen the first case in which a nursing home sought to have a child pay a parent’s care expense by asserting the state’s filial responsibility law.

In May of 2012, a Pennsylvania appeals court found a son liable for his mother’s $93,000 nursing home bill under the state’s filial responsibility law. Health Care & Retirement Corporation of America v. Pittas (Pa. Super. Ct., No. 536 EDA 2011, May 7, 2012).

Here is a link to the entire appellate court opnion on the duty to
pay nursing home costs for a parent.

The Basic Facts of the Case

The Defendant, John Pittas’ mother entered a nursing home following injuries in a a car crash. She later left the nursing home and moved out of the United States leaving much of her nursing home bill unpaid.

While she did apply for Medicaid to cover her care, but that application was still pending at the time the nursing home sued for payment.

In this case, the nursing home sued her son (still in the US) for nearly $93,000 under the state’s filial responsibility law.

The trial court ruled in favor of the nursing home, and Mr. Pittas appealed. Mr. Pittas argued in part that the court should have considered alternate forms of payment, such as Medicaid or other family members such as his mother’s husband and her two other adult children.

The Pennsylvania Superior Court, in the attached ruling, agreed with the trial court and held that Mr. Pittas is liable for his mother’s nursing home debt.

The court also held that the law does not require it to consider other sources of income or to wait until Mrs. Pittas’s Medicaid claim is resolved. It also said that the nursing home had every right to choose which family members to pursue for the money owed.

They also held that even though he made $84,000.00 dollars per year, that her son also had the finacial capacity to pay as required by the law.

If this is a frightening thought - that you (and maybe not your siblings) are laible for these costs, then you haven't heard the worst of it.

Many commentators feel that this may be the first of many more such legal actions.

Why?

The Deficit Reduction Act of 2005 made it much more difficult for the elderly to transfer assets before qualifying for Medicaid coverage of nursing home care. With enactment of the law, advocates for the elderly said that there would be increasing numbers of individuals seeking nursing care but cannot pay for it. Attorneys further speculated that in states that have filial responsibility laws, the nursing homes might seek reimbursement from the residents’ children.

For more information, you can also visit this link to the Wall Street  Journal article
on your responsibility to pay for nursing care.

Here is a link to the entire appellate court opnion on the duty to
pay nursing home costs for a parent.

To get the advice of an elder law attorney on the vital issues of planning
and how to protect family assets, call David Frees at 610-933-8069 and ask
or a complimentary appointment.
To get a complimentary appointment mention "David Frees Offer."

Many people use a testamentary trust to leave money to their minor children or disabled family members after both parents die. The inheritance the children receive may come from life insurance policies, the estate, or the sale of assets. A testamentary trust cannot be altered because it is created after the parents die.

A trustee is appointed to look after the trust until the minor children, the beneficiaries in this case, are eligible to receive it. Usually, this occurs when the children reach a certain age, such as 21 or 25 years old. Sometimes the money is distributed for other reasons, such as if the child needs it for college, marriage, or to provide for children of their own. This will depend on the parents’ wishes.

The trustee may be an attorney, but usually it is a trusted family member. The trustee is expected to look out for the child's best interests and should be somebody who will act responsibly in regards to the trust and the money in it.

A testamentary trust is usually created because a large amount of money is involved, so it is a good idea to have a Phoenixville estate attorney write up the document and make sure it is properly handled. Many family members tend to fight over money and other assets after a relative's death, so having a lawyer handle the paperwork may lessen the chance of litigation.

If you have minor children and would like to discuss the option of a testamentary trust, you may benefit from talking with an experienced Phoenixville estate attorney.  Unruh Turner Burke & Frees has the experience to handle your trust or estate planning needs. Contact them today at (610) 933-8069.

Testamentary trust, Phoenixville estate attorney

Two Types of Joint Property Ownership in Pennsylvania to Avoid Probate

Probate is the process of settling an estate through distribution of assets when there is no will for the deceased or an executor of the will is not established. The probate process may introduce unnecessary delays to the process of granting your final wishes, which is why exploring possible methods of estate protection may be helpful in protecting your family from the probate process. In Pennsylvania probate can be simple and inexpensive so make sure you talk to your estate planning lawyer and other trusted advisers to learn more about the probate process and what is right for you.

For those with assets such as real estate and high value items, a method of avoiding probate known as joint property ownership may be a good option. There are two main types of joint property ownership in Pennsylvania to fit most estate needs:

• Tenancy by the Entirety – available only to married couples, upon the death of a spouse the surviving spouse is granted ownership of the deceased spouse’s portion of the property.
• Joint Tenancy with Right of Survivorship – this should be established when obtaining the property and lists two or more joint owners of the property. Upon the death of a joint property owner their portion of the property ownership is transferred to the surviving joint owner(s).

Pennsylvania does not recognize the option of community property as a method of joint property ownership. Therefore, it is important to work with a Pennsylvania probate attorney to insure your estate is planned so that it complies with all Pennsylvania property and estate laws.

Avoiding probate may help alleviate the difficulty your beneficiaries may experience in settling an estate in your name. An experienced probate attorney can help you determine the best course of action when attempting to make life easier for your beneficiaries once you’ve passed away. read our blog The Benefits of Avoiding Probate When Settling an Estate

Let a Pennsylvania Probate Attorney Help Protect Your Loved One’s Legacy

Whether planning your estate to maximize the benefits for your loved ones, or you are the executor of your loved one’s will, you may want to avoid probate when settling an estate. Many challenges may arise in the distribution process and without the proper guidance your family could end up in a longer than necessary legal process.

Your final wishes for your estate and the rights of your beneficiaries are our main focus when helping you navigate probate court and estate law. Contact the Law Offices of Unruh, Turner, Burke & Frees to find out how our legal team can help you. Contact Dave Frees today – 610-933-8069 .

And Failing To Get The Right Kind Of Power-Of-Attorney
Can Actually Harm YOU and Not Just Your Heirs

So start thinking "outside the will" and read this article
to discover the seven estate secrets that your lawyer
may or may not have told you about but might be
vital to your estate plan. 

With a qualified personal residence trust, Pennsylvania homeowners can transfer property to their children before death and still retain the right to use it for a specified period of time. One substantial benefit that a Phoenixville estate planning lawyer can explain, the tax rate applied to the residence’s current value is “frozen,” which cuts down estate and gift taxes dramatically, especially when property appreciates.

Pennsylvania residents may contact a Phoenixville estate planning lawyer if they want to see if this advantageous tax-saving trust is an option for them. Because this trust is so beneficial for taxpayers, there are very specific requirements in place, which a lawyer can discuss with you.

If you’re planning your estate, and think you may want to set up a qualified personal residence trust, Pennsylvania has some requirements you’ll have to fulfill:

• property must be a personal residence;
• property must be jointly owned; and
• land and mortgage may be included.

Not only are there additional regulations you must follow to create a QPRT, there are also risks. Perhaps the biggest one is the length of your term’s interest.

It is in your best interests to make this term much shorter than your life expectancy, because if you pass away before the term ends, the property’s full value will be used for taxation purposes, which essentially renders a QPRT useless.

You’ll want to talk with your estate planning lawyer about these concerns, because if a QPRT is not set up correctly, your careful planning could backfire.

Phoenixville Residents with Estate Planning Needs Turn to Our Lawyers

Unruh, Turner, Burke and Frees, attorneys at law, have been serving the Phoenixville area since 1990. Regardless of your Pennsylvania estate planning needs, our team has the experience and commitment to build a long-lasting, trusted relationship with each and every one of our clients. Also serving Malvern and Chester county, our diverse team handles cases involving municipal law, litigation, commercial transactions, bankruptcy, real estate, taxation, zoning and more. Contact Dave Frees or one of our other experienced lawyers today at 610-933-8069 for a consultation.

When you are planning for your future and creating a will or caring for an aging loved one, you may have questions about Pennsylvania inheritance tax and estate taxes and what they mean. In some situations, the terms can be used interchangeably. However, in most cases they will mean 2 different things.

Estate tax is the tax on the total amount of a deceased person’s entire estate after any debts are paid but before any beneficiaries receive their inheritances. Funeral expenses are taken out of this amount and then the federal government will take out a percentage dependent on the amount of money and location of the estate.

Inheritance tax occurs when heirs or beneficiaries receive money or property from a deceased person’s estate. The Pennsylvania tax is levied according to the person’s relationship with the deceased person and can be up to 15%.

Not all states have inheritance tax policies in place but many do, including Pennsylvania, which could mean the estate is taxed twice – once by the state and then again by the federal government.

Contact a Pennsylvania Inheritance Tax Lawyer

If you have questions about how Pennsylvania inheritance tax may come into play when planning a will or trust, contact an inheritance lawyer today for assistance – 1-610-933-8069.

References:

http://www.nolo.com/legal-encyclopedia/state-inheritance-taxes.html
http://money.howstuffworks.com/personal-finance/personal-income-taxes/inheritance-tax1.htm

Choosing a bank or trust company to serve as executor of your estate, trust, or guardianship may seem like an appealing prospect if you’re having trouble choosing between your relatives, but there are pros and cons to that option, and you should always speak with a Pennsylvania trust law attorney before you elect to use an institutional fiduciary as your estate’s representative.

The advantages of using an institutional fiduciary as your estate executor or successor trustee include:
expert management;

• neutral decision making;
• all-inclusive services and a wealth of resources for all estate, trust, or guardianship needs; and
• professionalism and a high standard of account stewardship.

The disadvantages of naming an institutional fiduciary as your executor or successor trustee may include:

• institutional rigidity in account protocol;
• high cost of services rendered;
• decisions are made by committee and can delay the distribution of assets to beneficiaries; and
• bureaucratic obstacles at larger firms can impede progress with investments, decisions, and accounts.

Speak with a Pennsylvania Trust Law Attorney Before You Decide

No estate is like any other, and because so many important decisions often come down to intricate details, it’s vital that you consult with someone who dedicates themselves to providing estate planning services to people like you, people who lead busy lives and want to know that they are leaving behind a legacy that will be well-preserved and enjoyed by their surviving family members.

To learn more about what Unruh, Turner, Burke & Frees can do for you, schedule a consultation at one of our office locations – 1-610-933-8069.

References:

http://wills.about.com/od/choosingfiduciaries/a/institutionlfid.htm

Using trusts for children to manage their inheritance is a sound strategy for anyone with a net worth of equal or greater value of $100,000 who wishes to attach certain parameters to the inheritance of an estate, and a revocable lifetime trust (RLT) is an attractive option for those who choose to leverage estate planning to their and their children’s mutual benefit.

An RLT is an alternative to outright leaving money to your children when you pass on; specifically, an RLT arrangement allows you to incrementally pass your assets to your children while you are still alive. Another feature of an RLT is that it can be amended while you are still living.

An RLT can substitute one of the functions of a will by providing valuable information on the intended distribution of assets. Using this feature transfers your estate to your intended heirs more quickly and bypasses certain costs that you would have otherwise incurred through court-supervised probate court.

It also eliminates potential threats and challenges to the estate – a will may be disputed, but you can outline rules that disinherit anyone who challenges the stipulations of your trust.

Learn More about How to Establish Revocable Living Trusts for Children

If you are considering establishing a revocable living trust for the benefit of your surviving spouse, children or other chosen heirs, speak with a Pennsylvania trust attorney about what options, advantages and disadvantages are available to you. Schedule a no-cost consultation with a dedicated estate planning attorney and preserve your legacy – 1-610-933-8069.

References:

http://www.investopedia.com/articles/pf/06/revocablelivingtrust.asp#axzz1rZ2nVDVJ

Many often confuse the titles and responsibilities when choosing an executor and a trustee. Although both are charged with many of the same tasks, the circumstances are quite different.

An executor is named by a Testator’s will and/or appointed by the courts to manage and settle the estate. The executor acts as the estate’s “personal representative” and manages the:

• gathering of assets; 
• settling of debt liabilities; and 
• dispersal of remaining assets to legally designated heirs in accordance with the will and/or local probate law and intestate statutes.

A trustee, on the other hand, is charged with managing the assets held in a trust, as opposed to an estate. If the trust is a living trust, and was created while the Testator was still alive, probate can be avoided for assets contained within it and court supervision is unnecessary, in which case, the trustee may perform some tasks that the executor would otherwise handle.

If the trust is created by the will, it’s known as a testamentary trust and is subject to probate. In both cases, the trustee is responsible for managing the assets of the trust in accordance with the terms established therein.

Consulting a Pennsylvania Probate Lawyer

Who you choose as an executor or trustee will be responsible for executing the final arrangements of either your estate or your trust upon your death, so it’s vital that you make the decision only after some consideration. Seek counsel from a Pennsylvania probate lawyer at the law firm of Unruh, Turner, Burke & Frees to learn more about what a lawyer can do for you – 1-610-933-8069.

References:

http://www.trusts-etc.com/execs_ttees.html

• ex-spouses;
• children from previous relationships; and
• any property obtained in a previous marriage.