Category Archives: Estate Planning

Simply put, trust companies are businesses that have the legal authority to hold and manage other people’s money for compensation.

GRAT, short for Grantor Retained Annuity Trust, is a type of irrevocable trust that alleviates the tax cost of passing assets to your beneficiaries.

Car ownership should always be considered when thinking of estate planning.  There are different options to how a person should approach dealing with their vehicle and an estate plan.

The list of digital assets you may have online are endless, thus it is important that you either (1) set up a password manager kit, (2) include your digital assets in your estate plan, or (3) check if the website you are using allows you to add a recipient to your account once you pass away. 

Often times, payments still need to be made and the payments become the responsibility of the deceased car lessee’s estate. Sometimes car dealerships will negotiate with the personal representative of the deceased’s estate and may be able to transfer the remaining lease to another person.

The personal representative you appoint will be the person in charge of handling your estate once you pass. This individual has vast responsibilities and powers; therefore, your personal representative should be someone that you trust.

In Florida, for a will to be valid it must be in writing, signed by the party seeking to create the will (the testator), the testator must have the mental competence to sign the will, and it must be signed by two witnesses to the execution of the will.

What happens if you do not have a will or your will is not valid? In these cases, the state declares the individual to have died “intestate,” and your property follows a chain of succession to determine the owner.

Probate is the process after a person passes or becomes disabled; their assets are put on hold until the will is validated, any remaining debt is paid off, and the beneficiaries of the will are identified.  Probate can be a long and stressful process, especially after such a difficult time.  Non-probate assets avoid this long, costly process and pass directly to a decedent’s heirs.

IRAs allow you to save for retirement with tax-free growth on a tax-free basis.  You can also establish different sub-trusts within the IRA trust for the benefit of your beneficiaries, including your spouse. You can design each sub-trust to fit the unique needs of each beneficiary.

Preparing for what happens after one’s passing can be difficult.  Most people do not like thinking of the reality that they are not going to be around one day.  However, proper preparation allows you to have a say even after you pass. 

There are two ways that the ownership can be transferred, and the court can ultimately determine the legal owner of the vehicle.

Providing for all members of your family is of the utmost importance– including your furry, four-legged friends.

Beneficiary designations on your financial accounts can provide a quick alternative to traditional estate planning strategies by making sure your accounts are not subject to probate, thus preserving your wealth and preventing unnecessary court expenses and proceedings.

We recommend you review your estate planning documents, including your revocable trust at least once a year, especially if you have had a significant life change, such as: Marriage Divorce Birth or adoption of a child Death of a beneficiary Acquiring new property that you want to add to the trust Moving to another state…   + Read More…

Florida law allows homeowners who use their Florida home as their residence to claim a homestead exemption. The Florida Constitution provides a tax-saving exemption by reducing the taxable value of real property by up to $25,000, and $50,000 for a married couple. Florida homeowners are entitled to a Homestead Exemption if, as of January 1st,…   + Read More…

A foreclosure is the legal process in which the lender attempts to recover the balance of a loan by forcing the sale of the property used as collateral for the loan. Foreclosure occurs when the homeowner is unable to make mortgage payments to the lender. A homeowner has a few options to avoid foreclosure. The…   + Read More…

The short answer is: “It depends.” This is the first question we are asked whenever we are dealing with a probate administration matter, and it is usually the most difficult to answer because there are many factors that need to be taken into consideration: 1. Does the estate have to pay taxes? If the estate…   + Read More…

In Florida, it is very common for individuals to own second homes in other counties, or to have nonresidents own investment properties or vacation homes. Unfortunately, we often see situations where these nonresidents pass away without a proper estate plan that takes into consideration these properties, so when that nonresident dies, an ancillary probate proceeding…   + Read More…

Losing a loved one can be devastating for any family, but even more so when you lose a spouse. Even more difficult is how the loss of your spouse can affect you financially. By applying for survivor benefits through the Social Security Administration, you can receive benefits based on the credits your deceased spouse earned…   + Read More…

Under Florida law, you cannot intentionally disinherit your spouse unless your spouse agrees to receive nothing from your estate in a Prenuptial or Postnuptial Agreement. In Florida, a surviving spouse, whether or not they were mentioned in their deceased spouse’s will, has the option to receive a portion of their deceased spouse’s estate called the…   + Read More…

A Totten Trust is a type of estate planning mechanism more commonly known as a “Payable-on-Death” (POD) account or an “In Trust For” account. The name “Totten” comes from a 1904 New York case, which was the first court ruling that allowed setting up a bank account in trust for a beneficiary. With a Totten…   + Read More…

What is an Intentionally Defective Grantor Trust? An “Intentionally Defective Grantor Trust” (IDGT) is a tool used for strategic estate planning and income tax purposes. Generally, the grantor funds the trust with appreciated or highly liquid property. Often times, the IDGT beneficiaries are the grantor’s spouse, children, or grandchildren. An IDGT is considered a grantor…   + Read More…

How Do You Plan Your Estate If You Have Property Located Outside the U.S.? A common concern for U.S. citizens who own real property in a country outside the U.S. is, “How do I plan my estate when I have real property located outside the U.S.?” If this concern is not well planned, there may…   + Read More…

Every year, property owners receive a Notice of Proposed Property Taxes from the Miami-Dade Property Appraiser, listing the total of Ad Valorem and non-Ad Valorem property taxes to be paid. These property taxes are based on the assessed value of the property, as determined by the Property Appraiser every January 1st. Sometimes, however, the value…   + Read More…

Granted there is a lot of turmoil around health care at the moment, we thought it insightful to let our audience know a little bit more about Medicaid. Let’s start with the basics and break it down from there. 1. What is Medicaid?  Medicaid is a joint state and federal program that provides health coverage…   + Read More…

In Florida, the first year a home receives a homestead exemption, the property appraiser assesses it at just value. Now, with that in mind, for each of the following years, the Save Our Homes Amendment (SOH) of the FL Constitution, prevents the assessed value of said homestead property from increasing more than 3% per year…   + Read More…

What is a special needs trust? A special needs trust is established to provide for the care and needs of a disabled individual without jeopardizing the disabled person’s eligibility for government benefits such as Supplemental Social Income (SSI) and Medicaid. A first-party or self-settled special needs trust is established with the asset’s owned by the…   + Read More…

No, we’re not talking about a marriage proposal. We’re talking about taking the role as a personal representative in your estate planning matters. What is a personal representative, you ask? A personal representative is an individual appointed to be in charge of the decedent’s probate estate. The most important duties a personal representative has under…   + Read More…

If your ex-spouse was the primary earner, you might be eligible for a higher social security benefit based on his or her work history instead of your own. However, there are limitations, and you must fall within all these categories to qualify for a “divorced spouse” benefit: Your marriage lasted for at least 10 years;…   + Read More…

A non-foreign certification is a document that protects buyers of real property interests from liability for the IRS withholding tax, which applies if the seller is a foreign person. If a seller is a non U.S. citizen or resident, then FIRPTA (The Foreign Investment in Property Tax Act) applies and the buyer must withhold 15%…   + Read More…

A lady bird deed (called an enhanced life estate deed in Florida) is a relatively new form of deed that—like a traditional life estate deed—allows property to pass automatically to one or more designated recipients at death, without the need for probate.  Florida is one of only a handful of states (including Texas) that recognize lady…   + Read More…

When you own an account jointly with another individual, the law usually presumes that you each have equal rights to funds held in that account. So, when a creditor attempts to garnish that account, it typically doesn’t have to investigate whether you contributed more money to the account than the co-owner. Unfortunately, this could mean…   + Read More…

An irrevocable trust was once known to be untouchable. This may no longer be true. “Decanting” an irrevocable trust is an estate planning technique that involves pouring the assets from the first trust to a new one with better terms to meet the needs of the client. Common law provides authority for trust decanting, but…   + Read More…

What is a life insurance trust? One must understand the definition and the main purpose of life insurances and trusts to understand a life insurance trust. What is a life insurance? There are three parties to a life insurance, the owner, the beneficiary, and the insured. The owner is the person or entity who pays…   + Read More…