Estate Planning

October 21, 2010

Forbes reports that 60% estate tax rate could be around the corner

Ashlea Ebeling with Forbes is reporting that next years estate taxes could be as high as 60% for some. This title is misleading because the maximum estate tax will be 55%. She gets 60 percent by adding the max rate of 55% plus the 5% surcharge for assets between 10 million and 17.184 million dollars. This surcharge only makes the overall rate closer to 55% and the full 55% rate is not achieved until the estate is in excess of the $17.184.
So while there is a 60% estate tax, it is only a marginal tax rate and the rate is never higher than 55%.

Please do not think I am ok with a 55% tax rate, but I did want to clarify the issue. If your estate is greater than 1 Million dollars, you should consider meeting with a Jacksonville Estate Planning Lawyer to discuss ways you can increase your exemptions or hedge against the taxes that would be due upon your death.

September 11, 2010

Florida Estate Planning Procedure

by David M. Goldman

Estate Planning Procedure

We make it easy and affordable to obtain professional legal advice by offering complimentary consultations for your Florida estate planning needs with a Jacksonville Estate Planning Attorney. Once you’ve decided to implement your Florida estate plan, your documents will often be ready in less than two weeks.

STEP 1: FILL OUT THE CONFIDENTIAL PERSONAL INFORMATION FORM

September 8, 2010

Do-It-Yourself Wills: Good or Bad

by David M. Goldman

While most articles seem to be nothing more than a press release from Legal Zoom or Quicken, Deborah Jacobs seems to really examine the issue. Check our the Forbes.com article on some of the Pitfalls of Do-It-Yourself WIlls

September 2, 2010

Florida Constitution can protect two Florida Homes as Homestead

by David M. Goldman

The Homestead Exemption in Florida, which was established in the State’s Constitution, has always provided for the protection of the Family home free from creditors and liens. In 1985 the Constitution was amended to extend the protection to the “natural person” and not necessarily having to be the head of the household. The 4th district Court of Appeals ruled that a husband and wife who are separated for a period of time can BOTH claim the Florida Homestead Protection from creditors. This ruling does nothing to allow two homestead tax deductions. Law v. Law et al., 738 So. 2d 522.

The case involves a husband and wife who were separated for several years. They both claimed Homestead exemption for the Hollywood home that they owned jointly. But when his mother got sick, he and his wife decided to sell the home to pay for the medical bills. His ex-wife had a claim against him for support and brought action to seek recovery through the sell of the home. He filed for Homestead exemption. The court of appeals ruled that “we see nothing inconsistent with our public policy if we extend a homestead exemption to each of two people who are married, but legitimately live apart in separate residences, if they otherwise meet the requirements.” Court referencing Colwell v. Royal International Trading Corp., 226 B.R. 714 (Bank S.D. Fla. 1998) to show precedent on allowing dual homestead exemption. The court seemed to find it important to find that the separation was not contrived to defraud creditors.

If you would like to talk about how to create two homesteads and document them to avoid unnecessary litigation over the issue, contact a Florida Estate Planning Lawyer or if one or more of your home is in foreclosure contact a Jacksonville Foreclosure Defense Lawyer.

August 23, 2010

Pre-Validation of Wills and Trusts Before You Pass Away

by David M. Goldman

Over the past summer, Alaska has become one of a few states to allow pre-validation of a will. The state legislature also took the law a step farther and allowed trusts to be validated by the grantor before they pass away. In order to explain the new process it is essential to know how most states operate in the probate process. In Florida, if a beneficiary wishes to contest a will, the document must first be submitted to probate. The probate court will not allow probate proceedings to proceed unless the testator is deceased which eliminates the crucial witness of the document, the testator. For this reason, Florida subjects wills and trusts to a number of formalities in order to be deemed valid.

In their effort to reduce will challenges, the Alaska law allows the testator to accurately express their intentions before they die rather than allowing the process to occur afterward. The process first starts by notifying all interested parties and serving them with a copy of the will or trust. The parties then have a specific deadline for filing a challenge to the document, usually 3 to 4 months, before they permanently lose the chance to contest the will. If there is a challenge, the testator will be there to confirm the validity of the document. Since a court can verify duress, undue influence, and capacity while the testator is testifying, the judge can make a final ruling on the authenticity of the will or trust.

Although Florida has not adopted any law of this kind, Alaska allows non-residents to take advantage of their laws. However, a will must be probated in the decedent’s state of residence so it is doubtful a Florida court will give any significance to an pre-validated Alaska will. On the other hand, trusts are separate legal entities from their creator so pre-validating this document may prove critical in probate proceedings. A Florida Estate Planning Lawyer offer assistance to your estate plan and answer any further questions concerning wills and trust documents.

August 19, 2010

Lost Wills in Florida Require Live Witnesses

by David M. Goldman

A lost Florida Will is a will that was lost or destroyed without the decedent’s knowledge or consent and without his or her intent to revoke. The original Florida Will of a testator can be revoked in a number of ways but the individual must have the intent to revoke the will. When the original will of the decedent cannot be located after her death, it is presumed that the will was destroyed with the intent to revoke it. Overcoming this presumption in Florida requires the proponent of a lost will to carry the burden of introducing competent and substantial evidence.

In the recent case Brennan v. Estate of Brennan, the issue addressed by the 5th District Court of Appeals was whether affidavits alone are enough to prove a lost will or whether live witness testimony is required. Relying on a similar issue addressed by the Florida Supreme Court and the 3rd DCA, the 5th DCA determined that in order for a lost will to be admitted to probate Fla. Stat. § 733.207 requires testimony of one disinterested witness and a “correct copy” of the will, or testimony from two disinterested witnesses. Affidavits merely swearing the witnesses saw the decedent execute the lost will and that witness signed the will are insufficient to fulfill this requirement.

From this decision it is apparent that a draft of the will or some evidence be provided for admission to the probate court and depending on whether a “correct copy” of the will is offered, the testimony of one or two disinterested witnesses. Florida Probate issues are anything but simple so if you feel the need for assistance don’t hesitate to contact a Florida Probate lawyer or Florida Estate Planning Lawyer. If you are considering a Florida Will modification, it may be wise to do a full disclosure to all beneficiaries and those close to you because it will provide peace knowing your final wishes have been acknowledged.

August 10, 2010

Asset Protection: IRA’s and other Retirement Accounts

by David M. Goldman

In a recent article by Kelly Greene of the Wall Street Journal, she explains methods in which individuals can protect their retirement accounts. Over an individual’s lifetime an IRA (Individual Retirement Account) can accrue hundreds of thousands, or even millions of dollars. There is a high possibility that these retirement accounts will have significant assets left in them when you pass away. One of the main goals of Florida Estate Planning is to make certain your hard earned money is spent according to your final wishes. In order to control how quickly your children or heirs can spend their inheritance, most individuals are led to trust documents.

In a ruling last year, a Florida State Court found that inherited IRAs are not protected from creditors in civil court cases, with the exception of bankruptcy proceedings. Consequently, it is advisable to create an IRA trust where the account holder can name one or more trusts as the retirement account beneficiary instead of leaving the IRA outright to an heir where it could be subject to the claims of their creditors. Not only do you control how your retirement account is spent, but also with this type of Florida Estate Planning you can receive tax-free growth on the funds. Forming an IRA Trust is a complicated process therefore if you require any assistance contact a Florida Estate Planning Lawyer.

August 6, 2010

Updating Life Insurance Beneficiaries Can Be Easy for Florida Families

by David M. Goldman

Whether you want to completely alter the beneficiaries of your life insurance policy or simply add contingent beneficiaries, the process is not all that difficult. However, there are some common mistakes that occur which can result in unpredictable situations. An amendment to a will or trust document cannot change the beneficiaries under the policy. Since an amendment to a Florida Will or Florida Revocable Trust usually requires the assistance of a Florida Estate Planning Lawyer, while you are there ask about the life insurance policy. The attorney can also offer advice and recommend who would be a good beneficiary to fit your particular situation.

Once you are ready to get started, you will need all required information, such as the beneficiary’s name, mailing address, date of birth, Social Security Number, contact number and relationship to you. Naming a trust as a beneficiary entails knowing the complete name of the trust and the current trustee’s name and address. Before contacting a life insurance company representative, look up the company’s website because many companies allow you to make changes to your beneficiaries over the Internet. Most will at least have forms that you can print and fill out. Be sure to comply with all rules on the forms for witnessing and notarizing.

Finally, once you have completed all necessary forms, make copies of the documents and then mail them to the address provided by the insurance company. To avoid disputes, notify all original beneficiaries to let them know they are no longer part of the policy. If you would like further assistance modifying your life insurance beneficiaries or creating a new policy, seek help from a Florida Estate Planning Lawyer.

August 3, 2010

Estate Planning Brings Relief

by David M. Goldman

Planning for your own death may appear morbid to some people, but the knowing your financial affairs are in order brings reassurance. By acknowledging that death will eventually happen to everyone, the estate planning process can proceed. If you suddenly become ill or are diagnosed with a terminal condition, would you really want to have to deal with additional unwanted stress? Waiting until the end can bring this stress on you and your family at a time when you could be fulfilling your bucket list.

In a recent Market Watch article by Chuck Jaffe, the author’s reluctant sister-in-law had to be taken “kicking and screaming” to meet with estate planning lawyers with the his brother. She believed that by remaining ignorant to the possibility of death or illness would lessen the likelihood of those things happening. Unfortunately, two years after the meeting with lawyers her husband was diagnosed with a rare disease that was incurable. Jaffe shared the story of his brother upon his insistence that he tell the life lesson he learned in his final days. This important lesson to share with the world was that taking care of the important things when your days are numbered should not include estate planning. Jaffe’s brother believed it was a blessing to know that as his time approached, he didn’t need to worry one minute about the estate planning documents.

Focusing on death while you are alive and healthy was an important point in this article. Jaffe’s brother believed “focusing on death when you are dying” would be unimaginable. With these life lessons learned, imagine all the time and stress that can be avoided with estate planning. A Florida Estate Planning Lawyer can help you with your end of life decisions. Whether that time is now or in years in the future, remember the life lessons learned from this story.

August 2, 2010

Estate Planning and Commercial Services

by David M. Goldman

Estate planning for Digital Assets is a topic that was covered in a two part article by Oregon Estate Planning Attorney on his Wealth Law blog. In the second part of his article Estate Planning and “Virtual Assets” – Part 2 Michael discusses the importance of determining who should receive your virtual assets and cautions readers in the use of commercial services to hold your virtual assets because of the risk of loss associated with the improper storage or release of the assets to others.

While these are valid points, a bigger concern in my mind is that most of these commercial services appear to violate the the terms of the licenses by allowing others to use your accounts after your death and potentially create liability to your estate. The Digital Asset Protection Trust is the only solution that appears to resolve the legal issues and deal with digital assets correctly. To create a Digital Asset Protection Trust contact a Florida Estate Planning Lawyer to discuss your circumstances.