Estate Planning

January 11, 2017

The Importance of a Florida DNR: Do Not Resuscitate Order

A Florida DNR is a document you will not complete with your Jacksonville Estate Planning Lawyer. Many feel that estate planning is a great area of law because it allows people to plan ahead for how they wish to be treated medically in a scenario when someone is not able to decide on their own. This is why we recommend that every person plan for their future through estate planning documents such as a will, trust, living will, medical and financial powers of attorney and even simple documents such as a Florida “Do Not Resuscitate Order.”

A Florida DNR, Do Not Resuscitate Order, is a form developed by the Florida Department of Health, known formally as Form 1896, that identifies a person that does not wish to be resuscitated in the event of respiratory or cardiac arrest. This form, tells hospitals, doctors, and other health providers to not resuscitate you when certain conditions occur because you do not feel your quality of life will be sufficient after resuscitation. We recommend that everyone have a Florida DNR, Do Not Resuscitate Order, if they do not wish to be revived under certain conditions because most doctors and health care providers will attempt to resuscitate a person by default.

January 9, 2017

Jacksonville Will Lawyer: Shows Many Americans Do Not Have A Will

by David M. Goldman

As a Jacksonville Will Lawyer I have seen an alarming trend in Florida. Most Americans live fast-paced lives with long work hours, bills to pay, and mouths to feed. After a long day, the last thing on our minds is our mortality. But studies show that Americans need to be more concerned.

According to a 2015 survey performed by Rocket Lawyer, 64 percent of Americans do not have a will. Of those without an estate plan, only 27 percent thought there was not an urgent need to make a will. The most alarming statistic of them all – 15 percent of those surveyed said they did not need a will at all. As a Jacksonville Will Lawyer I have noticed that do have wills have not had them updated in many years.
Continue reading

January 4, 2017

Florida Living Trust – What You Should Know About Them

by David M. Goldman

Florida Living Trusts are often the cornerstone of a great estate plan and provide many of our top estate planning clients benefits. Here are a few of the best or most important things that everyone should know about living trusts. In many situations, an asset protection trust can be used in conjunction with a living trust.

1. A Florida Living Trust is Revocable

A Florida Living Trust is more formally known as a revocable trust. The trust’s name is an indication of its flexibility. The Florida living trust is revocable, which means that the person that created the trust can change the trust, or even cancel it, whenever he or she likes. For example, if the creator of the Florida living trust wishes to add or remove a beneficiary from the trust he or she may do so at any time through an amendment or restatement.

Any changes to the trust will be effective during the settlor’s lifetime. A person can transfer assets into the trust for his or her benefit during his or her lifetime. The living trust can even permit a transfer of assets in the scenario that the trust creator becomes incapacitated.
Continue reading

December 29, 2016

A Spouse’s Unauthorized Access to Email Could Violate Wiretap Act

by David M. Goldman

While the following article deals with divorce, our readers may consider it terms of accessing emails or online information of a deceased spouse or family member and the potential criminal liability that may be associated with accessing digital assets.

Federal wiretapping laws usually do not mix with state divorce proceedings. However, these laws became a central issue during the divorce of Paula Epstein from her husband Barry Epstein in Illinois. The issue is, did Ms. Epstein violate federal wiretapping laws when she put an auto-forward on her husband’s email account so she could read his emails.

Barry Epstein sued his wife under federal law while the couple was in the process of divorcing. Paula accused her husband of serial infidelity. In response, Barry’s attorney asked Paula for any documents and evidence she had that was related to the accusation. Paula complied and produced copies of the incriminating emails between Barry and several other women. This discovery response caused Barry to sue her under federal law.

Barry argued that Paula violated the Wiretap Act by secretly placing an auto-forwarding “rule” on his email accounts that automatically forwarded the messages on his email client to Paula. Barry also claimed Paula’s lawyer violated the Act by disclosing the intercepted emails. The courts dismissed this claim because the attorney could not be liable for disclosing Barry’s emails in response to his discovery request.

Background Information

December 29, 2016

The Consequences of Changing A Trust into a Gift

by David M. Goldman

Trusts are one of the most commonly used estate planning tools by Jacksonville estate planning lawyers for a good reason. A Trust can permit an asset to bypass probate while allowing the original owner the power to control and manage the assets. A trust can also provide asset protection and make assets exempt from the Medicaid qualification process. Our Jacksonville estate planning attorneys are often asked about differences between using a trust and an outright gift to a beneficiary.

In most cases, the answer is that it is it better to keep the asset in a trust to reduce income taxes, protect the asset from creditors, and prevent penalties in the case long-term care is needed. We will attempt to explain why in this article A major purpose of a trust, which can be irrevocable or revocable, is to provide an easy way to transfer ownership of a property when the owner passes away and permit an unlimited step-up in basis without income taxes to the person who receives the items. Some trusts also provide asset protection or can be designed to protect assets in the case long-term care is needed. As a person begins to age it can be dangerous and costly to make large outright gifts. The risks are often specific to the individual and should be discussed with an estate planning or elder law attorney.

One example may be a 65-year-old client who owns a rental home or multiple rental homes. The homes are primarily rented out to generate income while they appreciate in value. The client can transfer the property into an asset protection trust. The trust becomes the owner of the rental property, and the rent and value of the properties can, over time be excluded if the client needs long-term care. The client can be in charge of their trust and determine how the assets are invested and to whom the funds are given to.

December 27, 2016

Zsa Zsa Gabor Estate

by David M. Goldman

Zsa Zsa Gabor is one of the latest celebrity deaths to sadden America. The actress passed away at 99 years old and was known for being one of Hollywood’s first stars due to her colorful personality. She was also known for her many marriages and divorces.

Gabor married nine times, which resulted in seven divorces and an annulment. These complicated series of marriages and breakups has made her estate extremely interesting to estate planning attorneys.

Zsa Zsa’s ninth husband, Frédéric Prinz von Anhalt, will have to move out of Gabor’s luxurious Bel Air home where the actress lived for nearly 40 years. What is interesting to note is that for the past three years the couple lived in the large bungalow even though they no longer owned the house.

December 15, 2016

Claim of Undue Influence may have Unintended Results

by David M. Goldman

Often we get clients who are interested in objecting to a will because of undue influence. In Florida there is a split of authority over what happens to a previous will when the most recent will is invalidated by undue influence. The results can be very different and may provide planning opportunities that could insulate from claim of undue influence. As you can see in the case information below, the court determined that the previous will should be valid, while other courts in the states have found that intestacy is the proper method distributing assets after a successful claim of undue influence. If you are changing your will or would like to talk about how to protect from claims of undue influence in Florida, you might talk with a Jacksonville Estate Planning lawyer or Jacksonville Undue Influence Lawyer about your options.

The case of Rocke v. Am. Research Bureau (In re Estate of Murphy), 184 So. 3d 1221

This is a case where the probate court revoked a will due to undue influence. The question then turned on whether or not the decedent’s estate should pass through intestate succession or by a previous will.

History of the case leading up to the claim of Undue Influence.

The testator was Virginia Murphy, a woman that passed away at the age of 107. Her estate was worth 12 million dollars. The decedent executed six wills throughout her lifetime. Murphy’s parents and husband predeceased her, and she had no children or siblings.

December 12, 2016

Estate and Gift Tax Updates for 2017

by David M. Goldman

The American Taxpayer Relief Act of 2012 is still going strong, and there are some changes to the tax code in store for this New Year. For those who are not familiar with the law, this act made the following permanent: the reunification of the estate and gift tax regimes, the $5 million estate along with the generation skipping transfer tax exemptions, and the portability of the federal estate tax exemption between spouses at death.

The great aspect of The American Taxpayer Relief Act of 2012 is that the gift tax exemptions adjust for inflation each year. In 2017, the federal estate tax exemption will be increased to $5,490,000. The exemption was $5,450,000 in 2016. Further, the generation skipping transfer tax exemption has also been increased to $5,490,000.

The more commonly used exemptions are the lifetime gift tax exemption. The lifetime exemption is the amount a person can give throughout his or her life without paying any federal gift taxes. In 2017, the rate will now be $5,490,000, which was also increased from $5,450,000 in 2016. Further, a married couple may combine their lifetime exemptions so the combined estate can give up to $10,980,00.
Continue reading

December 7, 2016

Homestead Protection In Florida

by David M. Goldman

Florida’s homestead protections are renown throughout the country for the great homestead protection laws that protect state residents. These laws are found in Florida’s Constitution and offer key protection in three different ways. The state constitution offers protection from creditors, tax exemptions, and transfer restrictions to protect spouses.

Homestead Protection From Creditors

Article X, Section 4 offers Florida exempts the homestead property from creditors. This means that a creditor cannot force the sale of a homestead to satisfy a judgment. Florida courts have graciously expanded the meaning of homestead to include a house, condominium, a manufactured home, and mobile homes. The Florida Constitution defines homestead as one’s principal place of residence including up to one-half acre within a municipality and up to 160 contiguous acres outside a municipality.

December 1, 2016

Does a Revocable Trust Allow My Assets to Pass Outside of Probate Automatically?

by David M. Goldman

One of the best tools estate planning attorneys in Jacksonville utilize for their clients is the Florida revocable trust. The revocable trust is also known as a living trust. A revocable trust has many benefits including the ability to help individuals avoid probate. However, many people do not realize that setting up an estate plan with a revocable trust in Jacksonville is not the final step to avoid probate in Jacksonville or around Florida.

Once the trust has been established, the settlor, or the creator of the trust, or another person must fund the revocable trust. Funding the trust is the process of transferring assets from the settlor’s name to the revocable trust. To do this, the settlor must physically change ownership or the beneficiary designation, or in some cases both from the settlor’s individual name (or joint names, if married) to the name of the revocable trust.

As many as 9/10 estate plans fail because funding was not done, was not complete, or was done incorrectly. As a result, we now offer trust funding as part of many of our estate planning packages.
Continue reading