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Oct 17 15

FAQ – Understanding the Pennsylvania Inheritance Tax

by Phil Levin, Esq.

Transfer taxation is an important component when establishing an estate plan. In fact, one of the first questions asked by our clients during a consultation is:

              “How will my property be taxed at the time of my death?” 

Many individuals are pleased to know that they need not worry about federal estate tax, since Uncle Sam imposes this levy in the year 2015 only if their estate exceeds $5.43 million. However, the same cannot be said for the Pennsylvania Inheritance Tax. This tax applies regardless of the size of the estate, since there is not an exemption for modest estates. While there are legitimate ways to reduce Pennsylvania’s inheritance tax, to do so, one must understand some of the ground rules.

In order to assist you and help your clients to better understand the Pennsylvania Inheritance Tax, The Levin Law Firm has prepared a FAQ white paper on this topic.

Our “Pennsylvania Inheritance Tax FAQ” includes the following six (6) sections:

  • Variable Tax Rates Imposed
  • Parties Who are Exempt
  • Assets Which are Exempt
  • Strategies for Tax Minimization
  • Gifts in Contemplation of Death
  • Case Studies and Examples

If you are interested in obtaining our “Pennsylvania Inheritance Tax FAQ“, for your use and to share with selected clients, please click “Reply” and type “PIT FAQ” in the subject line, or send a note to us at: info@levinlawyer.com

Many factors influence the rate of tax and ultimate amount of inheritance tax that anestate will have to pay upon the death of a client before the estate administration can be completed. These include the type of property you own, the manner in which you own your property and the relationship of your intended beneficiaries.

As is the case with most estate planning matters, advanced planning can save significant transfer taxes and ensure that your property distributes to your beneficiaries at the right time and in the proper manner.

Please feel free to forward this edition of Estate Planning Matters to your friends, family members, and colleague who may need to establish or update their personal estate plan.

To learn more about how The Levin Law Firm can create an estate plan designed to help your clients achieve their estate planning goals, please contact our office to schedule a Complimentary Consultation with attorney Phil Levin at (610) 977-2443.

Sep 28 15

Resilience is the Key to Life

by Phil Levin, Esq.

I thought that you would appreciate this timeless article entitled, “I’m Too Old for This”, published in The New York Times on August 8, 2015.

While none of us can turn back the hands of time, as Dominique Browning wisely stated, “Resilience is the Key to Life and Feeling 15 Again.”

I hope that you had a happy and enjoyable Summer and are looking forward to a new season.

I’m Too Old for This

There is a lot that is annoying, and even terrible, about aging. The creakiness of the body; the drifting of the memory; the reprising of personal history ad nauseam, with only yourself to listen.

But there is also something profoundly liberating about aging: an attitude, one that comes hard won. Only when you hit 60 can you begin to say, with great aplomb: “I’m too old for this.”

This line is about to become my personal mantra. I have been rehearsing it vigorously, amazed at how amply I now shrug off annoyances that once would have knocked me off my perch.

A younger woman advised me that “old” may be the wrong word, that I should consider I’m too wise for this, or too smart. But old is the word I want. I’ve earned it.

And let’s just start with being an older woman, shall we? Let others feel bad about their chicken wings – and their bottoms, their necks and their multitude of creases and wrinkles. I’m too old for this. I spent years, starting before I was a teenager, feeling insecure about my looks.

No feature was spared. My hairline: Why did I have to have a widow’s peak, at 10? My toes: too short. My entire body: too fat, and once, even, in the depths of heartbreak, much too thin. Nothing felt right. Well, O.K., I appreciated my ankles. But that’s about it.

What torture we inflict upon ourselves. If we don’t whip ourselves into loathing, then mean girls, hidden like trolls under every one of life’s bridges, will do it for us.

Even the vogue for strange-looking models is little comfort; those women look perfectly, beautifully strange, in a way that no one else does. Otherwise we would all be modeling.

One day recently I emptied out an old trunk. It had been locked for years; I had lost the key and forgotten what was in there. But, curiosity getting the best of me on a rainy afternoon, I managed to pry it open with a screwdriver.

It was full of photographs. There I was, ages 4 to 40. And I saw for the first time that even when I was in the depths of despair about my looks, I had been beautiful.

And there were all my friends; girls and women with whom I had commiserated countless times about hair, weight, all of it, doling out sympathy and praise, just as I expected it heaped upon me: beautiful, too. We were, we are, all beautiful. Just like our mothers told us, or should have. (Ahem.)

Those smiles, radiant with youth, twinkled out of the past, reminding me of the smiles I know today, radiant with strength.

Young(er) women, take this to heart: Why waste time and energy on insecurity? I have no doubt that when I’m 80 I’ll look at pictures of myself when I was 60 and think how young I was then, how filled with joy and beauty.

I’m happy to have a body that is healthy, that gets me where I want to go, that maybe sags and complains, but hangs in there. So maybe I’m too old for skintight jeans, too old for six-inch stilettos, too old for tattoos and too old for green hair.

Weight gain? Simply move to the looser end of the wardrobe, and stop hanging with Ben and Jerry. No big deal. Nothing to lose sleep over. Anyway, I’m too old for sleep, or so it seems most nights.

Which leaves me a bit cranky in the daytime, so it is a good thing I can now work from home. Office politics? Sexism? I’ve seen it all. Watching men make more money, doing less work. Reading the tea leaves as positions shuffle, listening to the kowtow and mumble of stifled resentment.

I want to tell my younger colleagues that it doesn’t matter. Except the sexism, which, like poison ivy, is deep-rooted: You weed the rampant stuff, but it pops up again.

What matters most is the work. Does it give you pleasure, or hope? Does it sustain your soul? My work as a climate activist is the hardest and most fascinating I’ve ever done. I’m too old for the dark forces, for hopelessness and despair. If everyone just kept their eyes on the ball, and followed through each swing, we’d all be more productive, and not just on the golf course.

The key to life is resilience, and I’m old enough to make such a bald statement. We will always be knocked down. It’s the getting up that counts. By the time you reach upper middle age, you have started over, and over again.

And, I might add, resilience is the key to feeling 15 again. Which is actually how I feel most of the time.

But I am too old to try to change people. By now I’ve learned, the very hard way, that what you see in someone at the beginning is what you get forevermore. Most of us are receptive to a bit of behavior modification. But through decades of listening to people complain about marriages or lovers, I hear the same refrains.

I have come to realize that there is comfort in the predictability, even the ritualization, of relationship problems. They become a dance step; each partner can twirl through familiar moves, and do-si-do until the music stops.

Toxic people? Sour, spoiled people? I’m simply walking away; I have little fight left in me. It’s easier all around to accept that friendships have ebbs and flows, and indeed, there’s something quite beautiful about the organic nature of love.

I used to think that one didn’t make friends as one got older, but I’ve learned that the opposite happens. Sometimes, unaccountably, a new person walks into your life, and you find you are never too old to love again. And again. (See resilience.)

One is never too old for desire. Having entered the twilight of my dating years, I can tell you it is much easier to navigate the Scylla and Charybdis of anticipation and disappointment when you’ve had plenty of experience with the shoals and eddies of shallow waters. Emphasis on shallow. By now, we know deep.

Take a pass on bad manners, on thoughtlessness, on unreliability, on carelessness and on all the other ways people distinguish themselves as unappealing specimens. Take a pass on your own unappealing behavior, too: the pining, yearning, longing and otherwise frittering away of valuable brainwaves that could be spent on Sudoku, or at least a jigsaw puzzle, if not that Beethoven sonata you loved so well in college.

My new mantra is liberating. At least once a week I encounter a situation that in the old (young) days would have knocked me to my knees or otherwise spun my life off center.

Now I can spot trouble 10 feet away (believe me, this is a big improvement), and I can say to myself: Too old for this. I spare myself a great deal of suffering, and as we all know, there is plenty of that to be had without looking for more.

If there can be such a thing as a best-selling app like Yo, which satisfies so many urges to boldly announce ourselves, I want one called 2old4this. A signature kiss-off to all that was once vexatious. A goodbye to all that has done nothing but hold us back. That would be an app worth having. But, thankfully, I’m too old to need such a thing.

Source NY Times August 8, 2015

Aug 3 15

Estate Planning Fundamentals

by Phil Levin, Esq.

While some people think that estate planning is only about how to divide their property after they pass away, one of the most important reasons to create an estate plan is to pass on values and beliefs, in addition to financial assets.

A comprehensive estate plan should also focus on taking care of individuals while they are alive and implementing the best strategies for providing optimum flexibility in the event of an illness, injury, or incapacity.

Our clients agree that estate planning is about:

Maintaining control of their property while alive;
Taking care of themselves and loved ones in the event of a disability;
Giving property to who they want, the way they want, and when they want;
Sharing important lessons learned in life, including values and beliefs; and
Minimizing taxes, expenses, and court costs, where legally possible.
At The Levin Law Firm, we strive to provide caring and compassionate client service. We want our clients to know that we are here to take care of them by first listening to their unique concerns and goals. Only then can we recommend viable estate, trust, and tax planning strategies which are designed to achieve specific client objectives.

Every client is different and each unique situation presents its own estate planning challenges and opportunities.

We encourage you to visit The Levin Law Firm website, which contains easy-to-understand trust and estate planning topics that can help you plan today to protect and preserve your estate. Please also feel free to print any article or section to increase your knowledge relating to the importance of having an up-to-date estate plan, and forward a copy to your friends, family members and colleagues.

While we offer a Complimentary Estate Planning Consultation to our prospective clients, some people find scheduling their initial consultation to be a bit intimidating, as they wonder what documents and financial information will they need to locate and bring along to a meeting.

At The Levin Law Firm, we try to make the estate planning process as simple and convenient as possible. When you are ready to schedule an initial consultation, our Estate Planning Fact-Finder contains valuable tips on how to prepare for your Estate Planning Consultation.

We welcome the opportunity to be of value to individuals who are interested in arranging a meeting with us to discuss their estate planning goals. If you would like to arrange a consultation with attorney Phil Levin, please contact Lauren or Margot at The Levin Law Firm directly at (610) 977-2443.

Jul 30 15

How to Choose the Right Agents for Your Incapacity Plan

by Phil Levin, Esq.

There are two very important decisions you must make when putting together your incapacity plan:

  1. Who will be in charge of managing your finances during incapacity
  2. Who will be in charge of making your medical decisions during incapacity

Factors you should consider when deciding who to appoint as your primary and back-up financial agents and health care agents include:

  • Where does the agent live? With modern technology, the physical distance between you and your agent may no longer be a significant factor. Nevertheless, an individual who lives close to you may often be a better choice than someone who lives in another state or country.
  • How busy is the agent? If your agent has a demanding job, travels frequently for work, or is of advanced age, then that person may not have the time, desire, or inclination to handle the management of your financial affairs nor make medical decisions for your benefit.
  • Does the agent have expertise in managing finances or in the health care field? A person with work experience in finances or medicine is often an excellent choice to serve as an agent. While this may be obvious to many, we regularly see clients who have selected their agents based upon friendship, an honorarium, or family relationship. We counsel our clients to select their agents based upon their ability, availability, and desire to discharge the duties and responsibilities which the individual may be required to perform if you suffer an illness or incapacity which requires their time and commitment to serve in your best interest as your agent.

Planning Tip: Choosing the wrong person to serve as your financial or health care agent may easily result in an ineffective incapacity plan. You can select different people to handle each role, that is, one person can be in charge of your health care decisions and another individual can be in charge of your financial matters. In order to create an effective incapacity plan, you need to carefully consider who to select as your financial and health care agents, then discuss your decision with those people in order to confirm that he or she will, in fact, be willing and able to serve as your agent.

Is Your Incapacity Plan Up-To-Date?

As time passes by and your life changes, your incapacity plan may easily become outdated or ineffective when needed. Therefore, it is important for you to have your incapacity plan reviewed every few years, or after a major life event (such as a divorce or a death in your family), to ensure that your plan works the way you intend it to work, if it is ever needed by you in the future.

Please feel free to forward this edition of Estate Planning Matters to your friends, family members, and colleagues who may need to establish or update their personal estate plan.

To learn more about how The Levin Law Firm can create an estate plan designed to help you and your clients achieve their incapacity planning and wealth transfer goals, please contact our office to schedule a Complimentary Consultation at (610) 977-2443.

Jun 2 15

Your Clients Need an Incapacity Plan that Works When Needed

by Phil Levin, Esq.

Estate planning is not only about having a plan in place to deal with what happens at your death, it is also about having a plan in place to deal with what happens if you become ill, injured, or mentally incapacitated. In this edition of Estate Planning Matters, we will detail:

  • What happens without an incapacity plan
  • The essential documents for managing finances during incapacity
  • The essential documents for making health care decisions during incapacity
  • The importance of keeping your incapacity plan up-to-date

Court-Supervised Guardianship:  How to Lose Time, Money and Control During Incapacity

Mental incapacity caused by an accident, injury, or illness means that you might be incapable of making informed decisions about your finances and well-being. Without a comprehensive incapacity plan in place, a judge can appoint someone to take control of your assets, and make all personal and medical decisions for you, through a court-supervised guardianship proceeding. You and your loved ones could lose valuable time, money and control until you either regain capacity or die.

Planning Tip: You may believe you are protected if you become mentally incapacitated because you hold your assets in joint names with your spouse, a child, or another family member.  While a joint account holder may be able to access your bank account to pay bills, or access your brokerage account to manage investments, a joint owner of real estate will not be able to mortgage or sell the property without the consent of all other owners. Aside from this, adding names to your accounts or real estate titles may be deemed a gift for gift tax purposes. In addition, if a joint owner is sued, your property could be seized as part of a judgment entered against them. Only a comprehensive incapacity plan will protect you and your assets from a court-supervised guardianship proceeding and the potential actions or misdeeds of your joint owners.

The Essential Documents for Financial Management During Incapacity

There are two essential legal documents for managing finances that must be in place prior to becoming incapacitated:

  1. Financial Power of Attorney – This legal document gives your agent the authority to pay bills, make financial decisions, manage investments, file tax returns, mortgage and sell real estate, and address other financial matters that are described in the document. Financial Powers of Attorney can be designed in two different ways: “Durable” and “Springing.” A Durable Power of Attorney becomes effective immediately after it is signed, while a Springing Power of Attorney only goes into effect after you have been determined to be mentally incapacitated.
  2. Revocable Living Trust – This legal document has three parties to it:  The person who creates the trust (the “Grantor” or “Settlor”); the person who manages the assets transferred into the trust (the “Trustee”); and the person who benefits from the assets transferred into the trust (the “Beneficiary”). In the typical Revocable Living Trust situation you will be the Grantor, Trustee, and Beneficiary of your own trust. However, if you become incapacitated, then your Successor Trustee can step in and manage the trust assets for your benefit.

Planning Tip: To be part of an effective incapacity plan, your Revocable Living Trust should contain provisions to determine your mental status through a private process (i.e., certification from a physician) instead of a public court process. In addition, the trust agreement should contain specific instructions about how to take care of you if you are declared mentally incapacitated.

The Three Must-Have Documents for Health Care Decision-Making

There are three essential legal documents for making health care decisions that must be in place prior to becoming incapacitated:

  1. Medical Power of Attorney – This legal document, also called an Advance Medical Directive or Health Care Proxy, gives your agent the authority to make health care decisions for you if you cannot do so because you have become incapacitated.
  2. Living Will – This legal document gives your agent the authority to make life-sustaining or life-ending decisions for you if you become incapacitated.
  3. HIPAA Authorization – Federal and state laws dictate who can receive medical information without the written consent of the patient. This legal document gives your doctor, or other health care providers, the authority to disclose your medical information to the agent you select.

Planning Tip: Your loved ones may be denied access to medical information during a crisis situation and end up in court fighting over what medical treatment you should, or should not, receive (like Terri Schiavo’s husband and parents did, for 15 years).  Without these three documents in force, a judge may also appoint a Guardian to oversee your health care, thereby adding further expense, delay, and complexity to your court-supervised guardianship. Therefore, you should have these three documents reviewed and updated if necessary, to ensure they accurately reflect your current wishes.

Is Your Incapacity Plan Up-To-Date?

As time marches on, and your life changes, your incapacity plan may easily become outdated. Therefore, it is vital for you to have your incapacity plan reviewed every few years, or after a major life event (such as a divorce or a death) to ensure that your plan will work the way you desire it to work if it is ever needed.

Please feel free to forward this edition of Estate Planning Matters to your friends, family members, and colleagues who may need to establish or update their personal estate plan.