Estate Planning

July 13, 2010

George Steinbrenner III Dies – Another billionaire in 2010

Today George Steinbrenner, New York Yankees owner, died of a heart attack in Tampa Florida. The Yankees are valued at more than 1.6 billion dollars and have been run by his sons Hal and Hank for almost 2 years. Steinbrenner’s estate at the time of his death is estimated to be worth 1.15 billion.

We will learn more about his fortune and how he planned his estate in the next few weeks but The timing of Steinbrenner’s death could exempt heirs from estate tax like the other three billionaires who have died in 2010.

Steinbrenner moved to Floirda where there is no state estate tax as compared to NY which could have taxed his estate more than 16% or more than 160 million dollars.

July 13, 2010

Have your Will reviewed under Florida Law and with you change in circumstances

by David M. Goldman

Moving to a new state can often times be a stressful and exhausting process that takes careful planning. It is important to remember to visit a Florida Estate Planning Lawyer during the planning process to review your Florida Will. A common misconception of many people moving to Florida is that their out-of-state will is no longer valid once they arrive. A will signed by a non-resident of Florida is valid in Florida so long as the will complies with Florida statutory formalities and was valid in the state where the will was signed.

Contrary to other states, a Florida Will must be in writing in order to be considered valid. This means that verbal wills, or “deathbed” wishes, are not legally binding. Due to the fact that handwritten, or holographic wills, have the potential for forgery they are not valid in Florida either. NOTE: a holographic will is valid in FL if it complies with the statute of wills.

In Florida, an out-of-state will may be valid but unless it is distinctly drafted the provisions could be ineffective. For example, if you had named a friend as guardian of your minor children from your prior hometown before moving to Florida, this person probably will not be qualified under Florida statute to serve as guardian. Florida law requires that only a Florida resident, or close blood relative that resides out of state may serve as guardian.

July 12, 2010

Know Your Estate Plan and the Tax Consequences of it

by David M. Goldman

With the new estate tax laws that will soon be put in place, more Americans hard by the estate tax. However, there is more to estate planning than simple tax avoidance. Estate planning and Florida Estate Planning is about the legacy you want to leave behind after you are gone. Everyone will leave behind some sort of legacy therefore planning for it will enable others remember you the way you want them to.

There are four major goals that should be considered when legacy planning and working with a Florida Estate Planning Lawyer can help you understand and reach these goals more efficiently.

1. Financial security for you and your family is a priority. When you establish a legacy it usually entails providing money or other assets for heirs. It is important to know that your own standard of living is secure before you decide what to give to others. Once your lifestyle is secure, establishing goals for the ultimate disposition of your wealth can improve the financial security of others.

2. Continuing the management and care taking of the estate. In many estates, regardless of the size, assets can dwindle rapidly after the first owners pass them on to the next generation of beneficiaries. Often the successors of an estate do not understand how the assets were to be managed or did not share the same values of the founder. If you believe the people you want to benefit from the trust are not likely to manage their wealth properly over the long term, a trust can help manage these expectations and provide additional guidance for your descendants.

July 7, 2010

Florida Estate Battle Includes Millionaire Dogs and Pet Trust

by David M. Goldman

The stage has been set for a estate contest concerning the estate of Gail Posner. Gail is the daughter and heiress of the late millionaire business executive Victor Posner. In her recent will admitted to probate, Gail left $3 million in a Florida Pet Trust fund for the care of her three Chihuahuas so that they could maintain the lifestyle in which they were brought up. Gail’s only surviving child, Bret Carr, is challenging the Florida Will declaring his mother was coerced into changing the Florida Will by her caretaker and employees.

Despite the fact that Carr was awarded $1 million under the Florida Will, Gail’s maids, personal trainer, and bodyguard received a total of $27 million. Carr’s allegations state that the Gail made changes to her Florida Estate Plan while she had with mental problems and was addicted to painkillers. The son alleges this led to the brainwashing of his mother by those who sought to cut him out of his grandfather’s fortune.

While Carr’s main concern is not the Florida Pet Trust, it could certainly be affected by the decision that is reached by the judge. In the event that undue influence is found, the entire Florida Will could be invalid.

July 6, 2010

Naming Alternate Beneficiaries in Florida Estate Planning Documents

by David M. Goldman

An alternate beneficiary is a person or entity that you name in your Florida Will or Florida Revocable Trust to receive a gift or devise in the event that the direct beneficiary does not outlive you or is not fit to receive the gift because of a legal reason, disclaimer, or other provision in the document that would disqualify them. Many times when an elderly individual makes a Florida Will they assume their demise will be sooner than all of their beneficiaries. It is important to name at least one other person to take in the event a direct beneficiary dies before you. The following is an example what a gift might look like: “I leave to my son Aaron the house but in the event he predeceases me, the house should pass my brother Bob.”

Florida does provide some default language in most cases for close relatives. In Florida close relatives who predecease the person who leaves them something will have the item left to their children in many cases. Since this is not always what is desired or always the case, you should have any documents that are depending on this to be reviewed by an Florida Estate Planning Lawyer who is familiar with the provisions.

Although it is rare to think someone is not fit to take a gift, a child who stands to inherit a large sum of money may not be prepared to receive such a gift. Under this scenario, it would be wise to then name one or more alternate beneficiaries and place a condition on the child’s gift such as: “I give to my son Aaron $1,000 if he has reached the age of 25. In the event he is not yet 15, I leave the $1,000 to my cousin Barbara in trust for my son until he reaches the age of 25.”

July 2, 2010

Digital Asset Trust and Picture Sharring

by David M. Goldman

Digital Asset Protection Trust can help preserve your pictures and other website information after you die or if you become incapacitated.

Most picture sharing websites promote the freedom to assign ones property rights to another. While all of these websites prohibit reselling the account to another, Flickr was the only picture sharing website that prohibited the assignment of rights in their terms and conditions of use. This may be due to their affiliation with Yahoo! which has one standard user agreement for many of the websites they own.

Part of the appeal of picture sharing sites is that they allow many family members and friends to view your pictures. Although it may not be illegal to assign your rights to the pictures, they may be deleted automatically if your account is deactivated due to inactivity. Therefore, a Digital Asset Trust should be created to protect your Digital Assets from being destroyed when you pass away.

Picture Sharing Websites	Deactivation	Assignable
Flickr	“Extended Period of Time”	NO
Shutterfly	180 Days	YES
Kodak Gallery	Paid – 5 years Free Trial – 90 Days	YES
SnapFish	1 year	YES

For more information on how a Digital Asset Protection Trust can help you and your estate contact a Digital Asset Protection Trust Lawyer

July 1, 2010

What a Prenuptial Agreement Can and Cannot Protect?

by David M. Goldman

According to a recent statistic in the USA Today, a poll found that only 4% of married couples in the United States have a premarital or prenuptial agreement. Florida was reported as having one of the country’s worst divorce rates in 2009. Due to this alarming rate, Florida allows couples to enter into valid prenuptial agreements so long as there is full disclosure and the agreement is in writing and signed by both parties.

There are many important things that a prenup can protect. First, prenups can protect the rights and obligations of both spouses with respect to property. So if one spouse owned a car before the marriage, a provision could state that that spouse would be responsible for all payments on that car. The agreement can also protect a spouse’s individual right to sell or lease real property. Other common provisions include what career path a spouse may choose, where the couple will live, and cash penalties if one spouse cheats.

Since prenups cannot violate public policy or criminal law, there are a few things they cannot accomplish. Child support is always governed by state guidelines enacted by the legislature. These guidelines cannot be overridden by a prenuptial agreement between spouses. Given that prenup terms usually include outlining the disposition of property when the marriage ends as a result of death or divorce, it is vital to have an experienced Florida Family Law Lawyer or Florida Estate Planning Lawyer with you to represent your best interests.

June 30, 2010

Gary Coleman’s Will Contest

by David M. Goldman

During the late 1970’s through mid 1980’s, Gary Coleman became a promising young star on the television sitcom Different Strokes. His character’s catchphrase “What you talkin’ ’bout, Willis?” made numerous people laugh during the shows 8 year run. Sadly after his passing and subsequent cremation, his relatives will not be able to hold a funeral until a judge in Utah decided who will permanently control his estate.

There are records that indicate Coleman created a will in 1999 and another in 2005. However, a handwritten amendment was added to the 2005 will later on, in 2007. The significant difference between the 2005 will and the 2007 amendment is that the 2005 will leaves his entire estate to ex-girlfriend and former business associate Anna Grey while the 2007 amendment leaves the entire estate to his ex-wife Shannon Price.

Price and Grey are both claiming in court they should be entitled to the entire estate but have significant legal obstacles to overcome. Price’s strongest argument is that Utah is one of the states that recognize holographic (handwritten) wills, although they must be entirely written in the handwriting of the person, signed and dated. However, Grey’s best argument is that the 2007 amendment was revoked because it was made while Price and Coleman were married. Since they divorced there is a presumption that the amendment was automatically revoked and struck from the will. Price is trying to rebut this presumption by claiming she and Coleman were living in a common law marriage at the time of his death.

June 30, 2010

Florida Estate Planning is Important for Women Too

by David M. Goldman

As generations grow older, more and more women will find that they have significant assets worth giving to others when they pass away. In most parts of the world women have a longer life expectancy and commonly marry older men. This means that there is a good chance a wife will inherit her husband’s estate if she outlives her husband. Since the wife will typically outlive the husband, she will have the last word about the division of property between heirs when she passes away.

Due to statistics that show many women do not make as much money in their lifetime as men, it is important for women to do

Florida Estate Planning

June 29, 2010

Time is Running Out on the 2 Year Rolling GRAT

by David M. Goldman

Grantor Retained Annuity Trusts are used in the United States to make large financial gifts to beneficiaries without paying a U.S. gift tax. A GRAT is a trust with a specific life or term, usually anything longer than 2 years. In most cases a wealthy grantor transfers assets to the GRAT and retains an annuity interest in the trust. This means that the grantor receives an annual payment from the GRAT for a fixed period of time. When the GRAT term ends, any remaining assets will be distributed to the named beneficiaries. However, the grantor must outlive the trust term or the funds will fall into the probate estate and subjected to estate taxes.

Recently, the U.S. House of Representatives passed H.R. 5486, a bill that requires all GRATS to have a term of at least 10 years. This is a significant increase from the previous 2 year minimum and significantly dulls the attractiveness of this type of trust. The trust will now be more risky due to the requirement that the grantor must outlive term in order for the beneficiaries to receive the tax breaks from the trust.

The bill has passed in the House and now needs approval from the Senate. This shot period provides a window of opportunity for those who wish to seek the benefits of a GRAT. This is also a great time to review existing GRATs if asset values have declined, so that a GRAT now in place is unsuccessful. If the asset could possibly bounce back and become profitable, now is the time to contact a Florida Estate Planning Lawyer to create a new GRAT.