Florida Estate Planning Lawyer Blog

December 21, 2016

Reverse Mortgage Firms Fined For Deceptive Ads

Several reverse mortgage companies were fined a collective amount of $790,000 for using deceptive advertising that claimed consumers could never lose their homes through a reverse mortgage.

The reverse mortgage firms fined were American Advisors Group, Reverse Mortgage Solutions, and Aegean Financial. The three firms reached a consent agreement with the Consumer Financial Protection Bureau. The regulators for the Consumer Financial Protection Bureau found the ads used by the companies misled consumers.

Specifically, the ads used statements that implied a person could never lose his or her home with a reverse mortgage. Another ad promised, “ I can show you how to use a government-insured program that allows you to save money, get cash and live payment-free as long as you live in your home.”

December 19, 2016

Changes available to Jacksonville Special Needs Trust Lawyers

by David M. Goldman

Many Jacksonville Special Needs Trust Lawyers and estate planning lawyers are rejoicing at the fact that the law concerning special needs trusts is about to change for the better. In Jacksonville, a special needs trust can be of the best tools available for many clients of Jacksonville Special Need Trust Lawyers because it gives a great number of benefits to those that suffer from a disability.

Congress and the president are on the verge of passing The Special Needs Trust Fairness Act. This act will allow a disabled person to create a special needs trust for himself (a First Person Special Needs Trust). Previously, the law did not permit a disabled person to form their own special needs trust.

Under the old law, the only way a person could receive a benefit of special needs trust was if he or she had a parent or grandparent, or court order to create the special needs trust. In Jacksonville, special needs trust lawyers had to jump through costly hoops for those clients without living parents or grandparents. The only way for these disabled persons to receive this trust is by giving another person guardianship rights or petitioning the court to create the trust.

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 13, 2016

Can I Create My Own Special Needs Trust?

by David M. Goldman

As of today, the answer is no you may not create your own Special Needs Trust, but the SNT Fairness Act may change that soon. Under the current law you must have a guardian or court order to create a SNT for yourself.

Congress gave the estate planning community a great gift today when the Senate approved H.R. 34, the 21st Century Cures Act, which includes the Special Needs Trust Fairness Act by a vote of 94 to 5. The bill is now seeking final approval from the current sitting President Barack Obama, and political experts predict the president will sign the bill before he exits office.

The U.S. House of Representatives passed the Special Needs Trust Fairness Act on November 30 since time is running out with the current session of Congress. Senator Glenn Thompson from Pennsylvania, who is the Fairness Act’s sponsor, hurried to find a legal avenue for the getting the act passed before lame-duck session of Congress ended. Innovatively, he used the Cures Act, which is a lengthy $6.3 billion medical bill that bundles a wide variety of health care related.

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.
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December 7, 2016

The Cost of Long Term Care Continues To Rise

by David M. Goldman

What many of our clients do not realize is that long-term health care is expensive, and will only get more expensive with time. Many people are shocked when they learn about the actual costs of long-term health and feel helpless because they cannot afford it. The good news is that long-term health care can be affordable with careful estate planning.

So just how expensive is long-term health care? Lets look at the average costs both in the United States and in Florida. The median cost of a private nursing home in the United States as a whole increased by 1.24 percent from 2015 to $92,378 a year according to studies performed by genworth.com

The median cost of living has also grown in Florida. The cost of private nursing home care has also risen significantly in the past few years. The median cost of a semi-private room is $89,060, while the median cost of a private room is $100,375. Nationwide, Genworth reports that the median cost of a semi-private room in a nursing home is $82,125, which is up 2.27 percent from 2015.

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.
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November 29, 2016

How to Change Marital Status on Florida Death Certificate

by David M. Goldman

Correcting a Death Certificate in Florida for a Change in Marital Status

We often receive calls about how to correct a Florida Death Certificate in relation to filing a Probate case in Florida. Correcting a Florida Death Certificate is done through Florida Vital Statistics which can be reached at:

DEPARTMENT OF HEALTH
Bureau of Vital Statistics
PO Box 210
Jacksonville, FL 32231

(904) 359-6900, EXTENSION 9005

SURVIVING SPOUSE: With the exception to a misspelling or an omission, the department may not alter the surviving spouse item except on order of a court of competent jurisdiction.

To make this change you will need to hire a lawyer to file a petition and obtain a court order to make the changes. Below is some information on other types of changes that can be made to a Florida Death Certificate and how they can be made.

November 28, 2016

Is An Estate Liable For Rent When A Roommate Dies?

by David M. Goldman

As Jacksonville estate planning attorneys, we often come across unusual scenarios that require a deep look into the law. A recent questions posed to the Jacksonville probate attorneys at the firm was: “Is a roommate’s estate liable for the unpaid rent after he or she passes away”?

The short answer is no the estate is not responsible to the landlord, but the roommate may have a claim against the estate. When a person and his or her roommate sign a lease with a landlord, by default both roommates agree to jointly and independently pay the full rent each month. A landlord usually does not know how rent is divided each month as long as the checks arrive on time.

This means the landlord can sue either or both tenants named on the lease if the rent goes unpaid. This is true even if the roommate is a boyfriend, girlfriend, brother or sister. This is why the estate planning attorneys at The Law Office of David M. Goldman PLLC recommend that a surviving tenant continue to pay the rent after the death of a roommate.

Can the Default Rule Be Changed?

Usually, when multiple roommates live in an apartment or house, they split the rent. Maybe each roommate pays equal rent, or one roommate pays a proportion of use of the property. One solution is for the roommates to form a legally binding contract called a “roommate agreement.” This agreement addresses how the parties to the contract will pay the rent and other household bills.
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