Articles Posted in Probate

Many people create a Florida Will on their own or with a Florida Estate Planning Lawyer and later want to make a change to one or all of the beneficiaries.

Although this can be frustrating because substantial time and thought went into creating the first Florida Will, there are certain procedures a Florida resident should follow when destroying or modifying the Florida Will.

If you wish to destroy or cancel your Florida Will, there are a few common techniques to use that are considered valid in courts. The goal is to leave no doubt that the will no longer contains your final wishes, should you pass away. Tearing, mutilating, shredding or cutting the Florida Will into small pieces is an effective way that leave no doubt that the will should no longer be recognized as an individual’s last wishes. While burning your Florida will could cause a fire hazard and should be done with caution, it is also recognized as an effective way to revoking your Florida Will. However, if the Florida will is destroyed because of an accidental tear or is burned in a fire it still remains effective because there was no intent to revoke (as long as there is something that can be used to replace the original Florida Will.

Most people in today’s society would be happy to discover that they were being left an inheritance in a Florida Will . However, since inherited property under the estate laws of Florida is a gift, the beneficiary does not have to accept the inheritance. Although declining to accept a gift would seem odd to some people, there are a few reasons why it would be beneficial not to claim inherited property.

One reason why a person may not want to accept an estate gift is because the property may be undesirable. Property may become undesirable when there is a large debt owed on the property or significant maintenance would be required to sell the property. For example, an old abandoned gas station that was given to you in a will would probably not be worth taking because of the significant costs to modify the property and the taxes that could come with it.

Other reasons why someone would disclaim property are to prevent your creditors from taking the property, a feeling that it is wrong to benefit from someone’s death, and to reduce your tax burden, or it will only create additional estate taxes upon your death. While it may not be permissible to disclaim the property in all situations to avoid creditors, you should discuss your specific goals with a Jacksonville Estate Planning Lawyer as soon as possible because there are time limits on when a properly filed disclaimer can be done. Whatever your reason may be for not wanting the gift it is important to know a disclaimer must comply with federal law. Contact a Florida Estate Planning Lawyer who can assist you in the process and insure that the disclaimer is done correctly and complies with the appropriate laws of the jurisdiction.

Florida has no Estate Taxes, but there may still be Federal Estate taxes due. Before the distribution of assets of the deceased’s estate can occur, the federal government has the ability to take their share of the estate. The Federal Estate tax has been repealed for the year 2010 but in past years the tax has been applied to every U.S. citizen who died leaving assets to be distributed to their heirs. – This does not mean no taxes will be due for individuals who die in 2010. Remember the law does not allow an unlimited amount of capital gains like in previous years. There is not an unlimited amount of capital gains like in 2009. This means even with an unlimited estate tax exemption, some people will pay more in estate taxes under 2010 than under previous years.

In past years the estate tax was applied only on funds that exceeded the net estate amount set by Congress. For example, if an individual died in 2009 leaving a net estate of $3.5 million then the federal government would not have taxed the estate because the net estate did not exceed the amount exempted by Congress. However, if the net estate would have been $4 million instead, the estate would be taxed at a rate of 45% on the amount over $3.5 million. So in this case the Federal Estate tax liability would be ($500,000 x 45%) which comes out to $225,000.

Currently, there is no plan to repeal the Estate Tax exemption for 2011. Before the 2010 repeal, Congress had increased the tax exemption given to individuals who died and whose net estate was distributed to $3.5 million. However, the current plan for 2011 is to have a tax exemption of $1 million and a tax rate of 55%. If the current plan remains in effect it will place a much greater tax liability on assets and funds that are distributed out of the net estate of those who die next year.

Jacksonville Divorce Lawyer: What does Florida Divorce Law have to do with Florida Estate Planning? We often find that Estate planning is needed most around the time of a Divorce in Florida. We now have a Jacksonville Divorce Lawyer on staff to help deal with the unique issues of Jacksonville Child Support, Jacksonville Child Custody, and Jacksonville Family law.

These issues often arise around the time of Florida Estate Planning or in conjunction with a Florida Probate.

If you have questions concerning Florida Estate Planning contact one of our Florida Estate Planning Lawyer or Jacksonville Divorce Lawyer to discuss your situation.

Yesterday, the House of Representatives voted 225-200 in favor of H.R. 4154. The bill will make the 2009 Estate Tax Level Permanent.

Currently (for 2009) the estate tax exemption is $3.5 million and the maximum tax rate on estates is 45%. The Bill referred to as the Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Act of 2009, would permanently extend this estate tax exemption amount and tax rate.

The Bill still needs the Senate and President’s approval.