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Estate Planning, Wills, Trusts and More

What Does A Pennsylvania Resident Really Need?
In A Great Estate Plan??

By: ?David M. Frees III, JD

When you think about doing the right thing and?taking care
of your spouse, children, friends or loved ones, you probably say
to yourself: ?I?ve really got to do a will.?

And, while no well adjusted and responsible adult should
be without a will, the will ? standing alone ? is not the
begining and the end of most good estate plans.

So what else do you need?

The answer can vary significantly based on your
personal net worth, whether or not you?re a parent
or grand parent, ans whether you own real estate or
business interests.

However, there are certain documents that should be
considered in every case ? even if you decide that they are not
for you.

For example, almost everyone considering a will
should also ask themselves and their advisor if they
need a:

revocable or irrevocable trust,
financial power of attorney,
medical power,?
medicaid?planning trust,
and/or a living will
non-probate beneficiary designations and joint accounts?

as part of an efective estate plan.

This article and subsequent installments will examine
each of these ?out side of the will? planning tools
and when and how they can be used. ?However, the use
of these techniques is highly specific to the facts of your own
situation and you should discuss them with your adviser.

Having said that, knowing, in advance, more about these
topics and how they apply to you will make you a smarter and
better consumer of estate planning?services?- and, it might save
you some money.

Interestingly, some of these documents can protect or harm
you as well as your family and in some cases, having a trust
might actually not be?worth?the time, trouble, and expense.

So let?s take a more detailed look at each device and how and
why they might be used.

Revocable Trusts: ?In Pennsylvania, the use of a revocable
living trust?may not be worth the extra money.

While smart lawyers and clients use revocable trusts in
many situations and in states where probate fees are high or
the probate system is cumbersome,?neither?of those are the case in
Pennsylvania. ?In fact, the majority of lawyers who have
estate plans in Pennsylvania dispose of their estates through wills.

So why are trusts so popular and when?would?they be used?

Revocable trusts are more expensive than doing a will alone. So
as a consumer you waant to know that getting this type of trust
is worth the additional fees and costs.

In addition, in order to work properly to avoid the probate fees,
the trust has to be ?funded.? ?In other words, you need to transfer
assets into the trust. ?These assets are exempt from probate fees
in Pennsylvania ? often quite minimal ? but they are still taxable
for inheritance and estate tax purposes and can be reached for
nursing care and to satisfy other debts.

However, the revocable trust is often worth the additional fees
over and above a will when:

You?re elderly and want a friend, family member or professional
trustee or trust compant to manage assets and to pay bills

You have assets and real estate in multiple states and want to avoid
multiple probates

You are omitting an heir or leaving unequal amounts and may
have a challenge (trusts are generally harder and more expensive
to challenge than a will)

You have life insurance that you don?t want to pass through a will
where it might be claimed by a creditor ? this might require of
mean that an irrevocable trust is better for you but that depends
on the size of your estate.

So thinking outside of the will means considering a revocable
living trust as part of your plan and making sure that it is worth
the additional fees in your particular?circumstances.

In the next installment of this article, we will also consider
these outside the will techniques and documents:
irrevocable trust,?financial power of attorney,
medical power,?medicaid?planning trust,and/or a
living will?non-probate beneficiary designations and
joint accounts?

Thanks for taking the time to make yourself smarter about
your?financial?affairs and estate planning.

David M. Frees III, JD

David Frees Chairs the Trust, Estate, and?Wealth?Preservation
Section of the firm and can be reached at 610-933-8069 or at
dfrees@utbf.com

?

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Written by: David M. Frees III

Chairman: Trust, Estates, and Wealth Preservation
E-mail: dfrees@utbf.com
Phone: 610-933-8069
AVVO Rating: 10.0

David M. Frees III limits his personal practice within the firm to trusts, estates, probate, asset protection, and business succession planning. Mr. Frees is also an author and internationally known speaker.

Tags: powers of attorney, wills and trusts

This entry was posted on Sunday, August 12th, 2012 at 8:55 am and is filed under Asset Protection, Estate Planning, Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Source: http://www.utbf.com/trust-estate/2012/08/think-outside-the-will-what-else-makes-a-great-estate-plan-for-pa-residents-part-1/

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