Pennsylvania Estate Planning Lawyer & Attorney : Jakubik Law Firm : Serving Philadelphia, Chestnut Hill, Mt. Airy

The New York Times recently ran the following article on the growing popularity of so-called dynasty trusts. These vehicles provide a means for enabling families to keep valued assets within the family for multiple generations, and to protect their assets from dissipation via the mismanagement of future generations, or the claims of their heirs' creditors. Read the article from the Times in full below the fold. Your estate planning attorney can assist you in determining whether such a vehicle might be of benefit to you,

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There are a multitude of reasons why you should consider preparing - and funding -  an inter vivos, or "living" trust -  as a part of your estate plan. I will be discussing many of these reasons here in the coming months. As an initial matter, however, estate planning attorney Daniel Dorsch has provided a pretty good introductory list of reasons to consider including a living trust as a part of your estate plan:

• You want to avoid probate. Since the property is no longer in your name as an individual, but is now in your name as trustee, there is no reason to go through probate. This is a savings of 5%-10% of your gross estate. An additional benefit is that it will only take weeks instead of years to transfer your property to your heirs.
• The trust will remain private. Unlike a will, which has to be filed as a public record in the probate court, the trust remains a private document even after your death.  
• With certain provision in the trust, you can completely avoid or reduce estate taxes. This can mean savings of literally thousands of dollars.
• You avoid the potential of a guardianship hearing because you have already named someone to take your place if you are unable to handle your affairs. In addition, you can set up your trust to allow your family Doctor to make the decision of whether you can handle your own affairs. The alternative is to allow a judge to do this in a public hearing.  
• If your heirs are too young or immature to handle the money you will leave them when you die, you can use a trust to determine when they will receive the money and how much they will receive each time. For example, you can leave instructions that say, when my child reaches 30, he gets 1/3 of the property. When he reaches 35, he gets another 2/3.   And when he reaches 40, he would receive the final 1/3, or the remaining balance of the estate.
• The trust is less open to attack than a will. This means that your wishes have a better chance of being carried out.  
• In the context of a second marriage, the trust is an excellent way to protect both the surviving spouse and the children from your previous marriage.
• If you have property in another state the trust will eliminate the probate in the other state.  
• Transferring property through a trust allows your property to receive a stepped up basis. This could greatly reduce the amount of capital gains tax your heirs will pay.
• Setting your finances in order will give you peace of mind.

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Today's New York Times brings us  depressing news of yet another attorney fallen from grace for not being able to keep her hands off of the property of an elderly person over whom she had been appointed guardian. The Appellate Division has suspended Emani Taylor for allegedly converting the property of retired Supreme Court Justice John L. Phillips after saying that she had failed to cooperate with the court's investigation into her actions.

Yes, I said that the victim is a retired state Supreme Court  Justice! In fact, having once earned a 10th degree Black Belt, Justice Phillips was known as the "kung fu Judge". Now, thirteen years after he retired from the Bench, much of his property has been dissipated improperly and his financial future is in doubt.

The bottom line here is that NONE of us are immune to this kind of disaster. Have a plan for your own future as you get on in years and take special interest into how older loved ones are protected from avaricious and untrustworthy relatives, advisors (and yes, unfortunately, even trusted attorneys) . Do not be afraid to conduct your own investigation into the affairs of a loved one who appears to be experiencing some unexpected difficulties.

Most important, play an active role in the lives of your elderly relatives. Of course, by doing so you will be bringing much warmth, comfort and happiness into their lives (you will also be setting an example for your own children who some day will be charged with your care, feeding and general welfare). That way, you will be in a position to notice those changes which so often presage an elderly person falling victim to somebody they trust.  

Source: New York Probate Litigation Blog

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Francis Morrissey, the now indicted  former lawyer for the late Brooke Astor, preyed upon other elderly clients, as well. In a fascinating, and disturbing, article published yesterday, the New York Times discussed in detail the myriad of elderly clients that Mr. Morrissey and his cronies and accomplices ingratiated themselves with, and in whose wills Mr. Morrissey somehow often managed to find himself included. The article reveals a scheme involving what, to my mind, are appalling breaches of trust and ethics. Morrissey apparently decided that he would do better by not charging for his legal services and trying to charm his way into being named executor of the client's estate, or, even, receiving a bequest in the estate. After reading this article, allow me to offer a word of caution - beware lawyers bearing smoked hams. Or offering to do your estate work for no charge.

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