Living Trust / Revocable Trust

December 30, 2007

IRA Rollover and Estate Planning: Why you might not qualify?

Starting January 1, 2008 every non-spouse designated beneficiary will have the option to rollover an inherited IRA and stretch distributions. To take advantage of this opportunity your Florida estate plan must be setup correctly to qualify for this rollover opportunity. You are not entitled to a rollover, you must prove you meet the technical legal requirements. Let’s take a look at why your family would not qualify for the new IRA rollover opportunity.

The IRS has very specific rules for how a trust can qualify as a see through trust and treated as a designated beneficiary. The top level bullet point requirements are:

The trust must be valid under state law;

December 24, 2007

Florida Trust Code and Creditors Rights

by David M. Goldman

There have been many revisions to Florida’s Trust Code and I have touched on some of them on this blog in the past.

There have been major changes to creditors rights. Creditors cannot compel distributions from or attach or otherwise reach a beneficiary’s interest in a third party discretionary trust whether or not:

1) The trust has a spendthrift provision;

2) The discretion is subject to a standard; or 3) The trustee has abused the discretion.

This clarifies many issues with Florida Trusts.

December 22, 2007

Trust Mills (seminars) pay $7.2 Million in Settlement

by David M. Goldman

Next time you attend a Living trust seminar in Jacksonville Florida or where ever you live, you may want to think twice. This week Family First Advanced Estate Planning, and insurance company, and a life insurance company who targeted low cost estate planning to seniors settled with the Attorney General of California.

An article on Kristen Howe’s Blog states:

I caution everyone to remember the old saying “If something looks too good to be true it probably is.” If someone is offering to write a revocable trust and a will for you for free or for just a few hundred dollars, you have to ask yourself why. The two big lessons to be learned from this case are:

1. Do not let anyone who is not an attorney write an estate plan for you. There are just too many complexities in this area of the law to trust it to someone who is not educated.

2. Do not take investment advice from anyone who sells any kind of investment product. Period. It doesn’t matter what it is, life insurance, annuities, mutual funds.

If they make their living selling it they cannot possibly give you objective investment advice about it. If you believe you have been victimized by Family First, another trust mill or by annuity fraud, you should report the crime to the local district attorney or the Department of Insurance. You may also file a complaint with the Attorney General.

December 18, 2007

Do it yourself Estate Planning: Bad News Part 8

by David M. Goldman

Could you imagine an Estate Planning Lawyer selling wills or estate planning documents with a disclaimer in small print that your documents may not be valid in Louisiana or some other state.

Today I found another example of when using quicken is a bad idea. Paul Rabalais the author of Estate Planning in Louisiana: A Layman’s Guide to Understanding Wills, Trust, Probate, Power of Attorney, Medicaid, Living Wills & Taxes and Your Louisiana Estate Planning Blog wrote an article about how buying Quicken can be the Worst Buy at Best Buy. Apparently there is a small print on their software which says Estate Planning documents Not Valid in Louisiana. I wonder what other states their documents are not valid in. I have examined several trusts created by quicken, and they do not address the new Florida Trust Code that was implemented in 2007.

Some other examples of Do it your self wills and bad news are covered in my articles listed below

Do it Yourself Wills? More bad news and Do it Yourself Wills? a Good Idea or Not?

December 18, 2007

Do I Need a Revocable Living Trust?

by David M. Goldman

Family Estate Planning with Living Trusts in Florida A Living Trust is a tool used by Jacksonville Estate Planning Lawyers to hold assets for the benefits for one or more beneficiaries. Often the initial beneficiaries are the people who create them. In this case, a person or couple can use the assets of the trust just like they would do with their own assets. The big advantage to a Florida Living Trust is that upon the death of the creators of the trust, the assets have a predefined beneficiary.

This enables properly created trust assets to avoid the delays and costs associated with a Florida Probate. Florida’s new trust code requires that to be eligible to create a Florida Trust, you must some nexus or connection with the state of Florida.

Some additional benefits of a Florida Revocable Trust are that the way in which the assets are distributed are not public like with a will or assets that pass under the state’s intestate statutes.

December 15, 2007

Why Create a Florida Trust

by David M. Goldman

Jacksonville Estate Planning, Jacksonville Trust Lawyer, Florida Trust Attorney A Florida Trusts are created to fulfill different needs and obligations. Today people find it necessary to protect their investments and properly allocate their resources while taking the least risks with regards to finances. A Jacksonville Trust Lawyer can help you analyze your assets and determine if a Living Trust will work for you.

Some Florida Trust are created for the purpose of privacy. The terms of a Florida trust are not public, unlike the terms of a Florida will.

Trusts are also created to protect one’s assets. There are different types of Florida Truss based on individual needs. Often a spendthrift provision is included in a Florida Trust to protect beneficiaries from creditors or assignment of the assets.. These can protect a person from his or her own lack control his or her own money.

December 11, 2007

Estate Planing is Not a One Time Event

by David M. Goldman

When was the last time you sat down with someone to review your Floria trust, Florida will, Florida power of attorney, health care directive, and other documents intended to make sure that your assets will be managed and distributed according to your wishes? If it has been longer than a year, you are probably overdue for an estate planning check-up.

Changes in your assets

Acquiring different of assets or changes in the value of the assets may require Estate Planning that was not anticipated.

December 11, 2007

How can a living trust save on estate taxes?

by David M. Goldman

Jacksonville Elder Law Lawyer, Medicaid Planning Attorney The Ferrell Law Firm in Memphis bloghas a series on Living Trusts vs. Wills. Many of the issues discussed are similar to those in Florida. For those of you who are unsure as to whether you need a living trust, will, or both you might review their 4 part article.

Their Answer to “How can a living trust save on estate taxes?”

If you die in 2007 or 2008 and the net value of your estate (assets minus debts) is more than $2 million, federal estate taxes must be paid on the excess at a rate of 45%. If you are married, your living trust can include a provision that will let you and your spouse leave up to $4 million estate tax-free to your loved ones, saving up to $900,000 in taxes.

November 28, 2007

Maximizing Charitable Gifting in Your Estate Plan

by David M. Goldman

Many Florida residents include language in their Florida estate planning documents which leave either a fixed sum or a percentage of their estate to one or more charities.

The most common gift is an outright bequest of property to a named charity from a Florida Will or Florida Revocable Trust. The gifts can be any type of property and often consultation with a tax adviser as to which property to leave can produce additional tax savings. Analysis of the size of the estate, and the cost basis of various assets can make significant differences.

In addition, careful attention needs to be made to the selection of the asset and how it is described in the documents. Contingencies can be made for a change in assets if the person wants to make a gift even if that asset does not exist.

November 15, 2007

Multi State Estate Planning Techniques

by David M. Goldman

Many people who have reached the age of retirement split their time between Florida and another state. Since we are at the prime time of year for this to be happening I thought it appropriate as a Florida Estate Planning Lawyer to write about some of the issues of Estate Planning lawyers from these states to make sure that any recent changes in the states laws are included in the will or revocable trusts that are in place or being prepared

Do you have to work with a Florida Estate Planning Lawyer to make sure your estate plan works in Florida and or a different state than where it was created? In most cases I find that the answer is no. Although competent drafting can establish the site of the trust as the state where it was created it can also establish another state when there are advantages. Most Florida Estate Planning Lawyer focus on one state and are not able to accurately determine what is the best state to use. This means that even if there are judicial proceedings in Florida, the court can interpret the revocable trust according to the chosen state in the trust.

An effective estate plan for dual residency is a challenge and an opportunity. Multi-state Estate Planning Documents reviewed to see if they can be enhanced please contact a Florida Estate Planning Lawyer.