Estate Planning:
Good estate planning is more than just a simple Will.  It minimizes potential taxes and fees (including Federal and State gift and estate taxes), and sets up contingency planning to make sure wishes regarding health care treatment are followed before and after death.  A good estate plan also coordinates what happens to a home, investments, business, life insurance, employee benefits (such as a 401K plan) and other property in the event of disability or death.

Probate: 
Probate is the legal process of transferring property following a person's death.  Although probate customs and laws have changed over time, the purpose has remained much the same: an individual formalizes his or her intentions as to the transfer of his or her property at the time of death (typically through a Will); his or her property is collected, certain debts are paid from the estate and the property is distributed accordingly.

Estates are categorized as probate or non-probate property.  Probate property is property that is transferred by the provisions of a Will.  Non-probate property is property that is either jointly held and passes by right of survivorship, is directed by beneficiary designation such as an IRA or a life insurance policy, or passes according to the terms of a trust.

Elder Law:

Elder Law is comprised of comprehensive services to meet a wide range of seniors' needs, including:

• Asset Protection
  
• Medicaid Planning
  
• Long Term Care Planning
• Income-only Trusts
  
• Caregiver Agreements
• Medical Directives
• Transfer of Residence
• Special Needs Trusts
• Crisis Planning For Seniors And Their Families

Guardianship:
A guardianship is a legal relationship created by a court between a guardian and his ward, either a minor child or an incapacitated adult.  The guardian has a legal right and duty to care for the ward.  This may involve making personal decisions on his or her behalf, managing property or both.  Usually, a person has the status of guardian because the ward is incapable of caring for his or her own interests due to infancy, incapacity or disability.

Courts generally have the power to appoint a guardian for an individual in need of special protection.  There are different types of guardians that can be appointed.  A guardian with responsibility for both the personal well-being and the financial interests of the ward is a general guardian.  A person may also be appointed as a special guardian, having limited powers over the interests of the ward.  A guardian appointed to represent the interests of a person with respect to a single action in litigation is a guardian ad litem. 

Special Needs Trusts:

There are more things beyond the basic necessities such as food, shelter, and clothing that are required for a special needs child.  However, if parents/guardians leave any assets to their child who is receiving special government benefits, or if they leave assets to another family member or other person for the care of the child, they run the risk of the child not receiving any further government assets or not benefiting from assets due to divorce, bankruptcy, lawsuits, and financial mismanagement.

Fortunately, the government has established rules allowing assets to be held in trust for a recipient of SSI and Medicaid, known as Special Needs Trusts (SNT's). SNTs can be used for various expenditures such as out-of-pocket medical and dental expenses, annual independent check-ups, insurance (including payment of premiums), payment for trips or vacations, and payment for a personal care attendant or escort.

Wills:
A Will is a written instrument containing directions on how the assets and property of the testator (individual creating the Will) shall be divided upon his or her death.  Wills can also contain instructions regarding the care of minor children, gifts to charity and formation of posthumous trusts.  In order for a Will to be legally valid, the testator must sign the Will in the presence of two witnesses and he or she must be mentally competent and not acting under duress or under the controlling influence of another.

Trusts:
Trusts are estate-planning tools that can replace or supplement Wills and can also help manage property during life.  A trust manages the distribution of a person's property by transferring its benefits and obligations to different people.  Maintaining assets in a Trust often makes it easier to minimize taxes and leave a larger inheritance.  A Trust is also a way to provide a steady income to the Beneficiary over time (as opposed to distribution in a lump sum), thus reducing the Beneficiary's tax burden, allowing the Trust to grow through investment, and keeping assets free from creditors of the Trust beneficiary.  Trusts can also be established for the benefit of charitable organizations.

Powers of Attorney:
Powers of Attorney are governed by the law of agency, a branch of common law concerned with the delegation of power from one person (the principal) to another (attorney-in-fact or agent).  When a person becomes incapacitated, the government or the court often steps in and appoints someone to represent and make legal decisions for the incapacitated person.  One of the ways to avoid government or court intervention and the appointment of a stranger to act as your guardian, is to use a Power of Attorney.  A Power of Attorney is a written document that can be limited in scope, or it can allow one person to give another the full power and authority to represent him or her.  There are two types of Power of Attorneys; one covering assets and one covering health care decisions.

Estate Tax Returns:
The money and property you own when you die (your estate) may be subject to federal estate tax.  Most estates are not subject to the tax.  Only about 2% of all estates are subject to the estate tax.  An estate tax return generally will not be needed unless the estate is worth more than the applicable exclusion amount for the year of death.  The estate tax is technically a tax on the transfer of property to others, generally to children of a decedent.

Estate taxes are different from, and in addition to, probate expenses and final income taxes owed on income the decedent earned in the year of his or her death.  They also are separate from inheritance taxes that are collected by some states.

Most states impose their own estate taxes, usually as a "sponge tax" that piggybacks on the federal estate tax.  The federal estate tax allows each estate a tax credit for any state inheritance or estate taxes paid, up to a maximum dollar amount.

Private Annuities & Charitable Trusts:
In a private annuity trust, an owner transfers property to an irrevocable trust in exchange for a promise to make prescribed payments to the owner for his or her lifetime.  The trust then sells the property to a third party, the proceeds of which are invested to provide the payments promised to the owner.  On death, the remainder of the trust estate typically passes to the heirs of the property owner.  The trustee must be someone other than the property owner.

A charitable trust is somewhat similar to a private annuity trust, except that the owner transfers property to an irrevocable trust of which one or more charitable organizations will be beneficiaries.  The type of charitable trust most likely to be used is a charitable remainder trust, in which the owner retains an income interest for his or her lifetime.  The property can be sold by the trustee and the proceeds invested to provide the payments to the owner.  On death or after a specified term of years, the remainder of the trust estate passes to one or more designated charitable organizations.  Unlike a private annuity trust, the trustee can be the property owner.

If you or someone you know in Pennsylvania or New York needs the assistance of an experienced Philadelphia Estate Planning Attorney, call Alan Jay Ackerman today at 866-737-8590, or complete the contact form provided on this site to schedule your initial consultation.

If you or someone you know in Pennsylvania or New York needs the assistance of an experienced Philadelphia Estate Planning Attorney, call Alan Jay Ackerman today at 866-737-8590, or complete the contact form provided on this site to schedule your initial consultation.

ADDRESSES OF THE FIRM:

Law Office of Alan Jay Ackerman

Philadelphia Office:
Two Penn Center Plaza, Suite 200
1500 JFK Boulevard
Philadelphia, PA 19102
Telephone: 866-737-8590
Fax: 215-564-2015

Bucks County Office:
Three Neshaminy Interplex, Suite 301
Trevose, PA 19053
Telephone: 866-737-8590

Radnor Office:
Radnor Financial Center
Suite F-200
150 N. Radnor Chester Rd.
Radnor PA 19087

Chester County Office:
102 Pickering Way
Suite 200
Exton PA 19341

MEMBERS OF THE FIRM:

Alan Jay Ackerman
Admitted to the practice of law in 1973, Mr. Ackerman restricts his professional services to the field of Family Wealth Conservation; encompassing the drafting of Revocable Living Trusts, Dynasty Trusts, Life Insurance Trusts, Wills, General and Medical Powers of Attorney; Elder Law, encompassing Long Term Care Strategies, Guardianships, Asset Protection Planning; and family-owned business matters including the creation of Limited and General Partnerships, Corporations, Limited Liability Companies; and Federal Estate & Gift Tax planning.

Having served as House Counsel to the Estate Planning Department of a major life insurance carrier, and earning the designations of Chartered Life Underwriter and Chartered Financial Consultant, Mr. Ackerman is an expert on matters pertaining to life insurance.

Mr. Ackerman has lectured on Estate Planning and Taxation before Securities and Brokerage firms, Life Underwriters Societies, State CPA Association, and Bank trust departments. Mr. Ackerman is an accredited educator registered with the CFP® Board of Standards.

EDUCATION:

• Temple University, BBA (Economics)
  
• Temple University, JD
• American College, Chartered Life Underwriter (CLU)
• American College, Chartered Financial Consultant (ChFC)
• NAEPC, Accredited Estate Planner (AEP)
  

JURISDICTIONS:

• Pennsylvania
• New York

PROFESSIONAL MEMBERSHIPS:

• American Bar Association
• Pennsylvania Bar Association
• New York Bar Association
• Philadelphia Estate Planning Council
• Louis D. Bandeis Law Society