Estate Planning

Amber Alerts for Children - Silver Alerts for the Elderly

Posted on January 20, 2009
First there were Amber Alerts, now Florida along with a dozen other states have adopted the Silver Alert. A Silver Alert is circulated when a person 60 or older who suffers from Alzheimer's, dementia, or another cognitive impairment goes missing.There is legislation creating a national program that is pending in Congress...

Motion to Kick My Ass

Posted on January 16, 2009
The Wills, Trusts, and Estates Prof Blog had a posting on an unusual motion by a pro se plaintiff. In the case Washington v. AA. Allamo, the judge imposed sanctions on the plantiff for filing a motion entitled "Motion to Kick My Ass".

Do you have an interesting experience with a will?

Posted on January 14, 2009
The Wills, Trusts, and Estates Prof Blog had a posting from someone looking for interesting WIll issues. I thought some of my readers may be interested in contacting this person. Hello, I'm a researcher working on a documentary series about people's first-hand experiences with a family will...

Seven Practical Options for Family Seven Practical Options for Family Philanthropy

Posted on January 13, 2009
There are at least seven options for family philanthropy, each of which has its own strengths and weaknesses from tax, regulatory, and personal perspectives. Some are extremely complex while others are simple. 1. Private Foundation According to the IRS in 2006 65% of the 80,000 private foundations had assets of less than 1 million dollars...

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Common Asset to Review with Special Needs Trusts

Posted on January 13, 2009
The following fifteen common assets and applicable beneficiary designations should be reviewed to make sure they will not be paid (or given) directly to the special needs child: (1) IRA, 401(k) and other retirement benefits. (2) Life insurance (including employer-provided life insurance) benefits...

Coordinate Other Relatives? Estate Planning Documents With The Parent?s Third- Party Created and Funded Special Needs Trust.

Posted on January 13, 2009
The principal purpose of a third-party created and funded SNT is to provide an inheritance for the special needs child without risking the loss of important government benefits such as SSI, Medicaid, etc. Consequently, it is important that grandparents and other relatives (including the siblings of the special needs child) not leave an inheritance outright to a special needs loved one...

Benefits of An Inter-Vivos Stand Alone Third-Party Created and Funded Special Needs Trust.

Posted on January 13, 2009
The thirteen benefits of an inter-vivos stand alone third-party created and funded SNT are: (1) The trust can be established by the parents (or by any third party, such as the grandparents) for the benefit of the special needs child. (2) The trust provides for the investment and management of the special needs child?s inheritance by a third party - the trustee...

Alternatives To A Stand Alone Inter-Vivos Third-Party Created and Funded Special Needs Trust

Posted on January 13, 2009
An alternative to a stand alone third-party created and funded SNT is to have the parents? last will and testament or their revocable living trust contain third-party created and funded SNT provisions.

Appoint A Trust Protector For A Third-Party Created and Funded Special Needs Trust.

Posted on January 13, 2009
A third-party created and funded SNT can have a trust protector. At a minimum, the trust protector should can have the power to: (i) direct the trustee?s actions; (ii) receive financial-investment statements and accountings; (iii) terminate the trust (and have the assets be distributed to the remainder beneficiaries), (iv) remove and replace a trustee, and (v) direct or approve the reformation or amendment of the trust to reflect changes in the law and in order to comply with the trustmaker?s intent and purpose...

Selecting The Right Trustee For A Third-Party Created and Funded Special Needs Trust Is Important.

Posted on January 13, 2009
The trustee of a third-party created and funded SNT is given complete discretion in making distributions to or for the benefit of the special needs child. Thus, who should serve as the trustee of a third-party created and funded SNT is important. The selection of the trustee involves many considerations, including the trustee?s ability to understand and respond to the needs of the special needs child; the trustee?s knowledge of government benefit programs and the effect that trust distributions will have on the special needs child?s government benefits; the trustee?s health, integrity, reliability and financial acumen; the trustee?s potential for a conflict of interest if the trustee is a current or remainder beneficiary of the trust; the potential for adverse income and transfer tax consequences if a family member serves as a trustee and is also a current or remainder beneficiary of the trust, etc...

Estate Planning Options Available To Special Needs Families

Posted on January 13, 2009
There are five estate planning options available to parents concerning their special needs child: (1) Distributing assets outright to the special needs child (not recommended since the assets may disqualify the child from receiving means-tested government benefits); (2) Disinheriting the special needs child (generally not recommended since the child will have no ?safety net? if government benefits are subsequently reduced or eliminated); (3) Leaving property to another family member with the ?understanding? that the property will be used for the benefit of the special needs child (generally not recommended since the arrangement is not legally enforceable and the sibling?s creditors (including a potential ex-spouse) may be able to seize the assets); (4) Establishing a third-party discretionary support trust for the special needs child (generally not recommended since the trust will, in many states, disqualify the child from receiving means-tested government benefits); and (5) Establishing a third-party created and funded SNT for the special needs child (highly recommended since the trust will not disqualify the child from receiving means-tested government benefits)...

Tax Planning For A Special Needs Family Should Not Be Overlooked

Posted on January 13, 2009
Tax planning should not be ignored when preparing an estate plan that involves a special needs child. There is a general (and incorrect) assumption among some estate planners that taxes are of little or no concern to families of special needs children...

Five Essential Estate Planning Documents For A Special Needs Family

Posted on January 13, 2009
Five Essential Estate Planning Documents For A Special Needs Family. At the minimum, a special needs child deserves a parent?s continued stewardship and guidance, even though the parent may be incapacitated or deceased. Therefore, the parents of a special needs child should typically have the following five estate planning documents prepared: (1) Last will and testament...

Unique Estate Planning Challenges For Special Needs Parents

Posted on January 13, 2009
In addition to the usual hurdles that parents face when preparing an estate plan (e.g., who should be the guardian, trustee, executor, etc.), the parents of a special needs child are faced with five unique estate planning challenges: (1) How to provide for all of their loved ones without jeopardizing the special needs child?s current (or potential) eligibility for means-tested government benefits such as SSI and Medicaid; (2) How to design an estate plan that supplements the special needs child?s means- tested government benefits and enhances the quality of the special needs child?s life; (3) How to treat the other children equitably while adequately providing for the special needs child; (4) How to make sure there are sufficient funds available at a parent?s death to care for the special needs child; and (5) How to provide for the proper supervision, management, and distribution of an inheritance for the special needs child through a third-party created and funded SNT Of these five unique estate planning challenges, above items 4 (sufficient funds) and 5 (proper supervision and management of the funds) typically prove to be the most difficult to implement...

Heckerling Institute on Estate Planning starts today in Orlando Florida

Posted on January 12, 2009
The University of Miami School of Law?s Heckerling Institute will host the 43rd Annual Estate Planning Conference from January 12 ?16, 2009 at the Orlando World Center Marriott Resort & Convention Center. The Heckerling Institute on Estate Planning is the nation?s leading conference for estate planning professionals...

STATE ?DECANTING? STATUTES

Posted on January 12, 2009
Seven states have enacted statutes that permit a trustee with discretion to distribute principal of a trust to exercise the discretion by transferring principal to a new trust, which may have terms different than the original trust. They are Alaska, Delaware, Florida, New Hampshire, New York, South Dakota and Tennessee...

22 States have inhertance tax in 2009

Posted on January 12, 2009
The following states will have an inheritance tax in 2009 Estates in excess of $3,500,000: NC, VT $3,000,000: OK (tax expires after 2009) $2,000,000: CT, IL (tax expires after 2009), WA $1,000,000: DC, KS (tax expires after 2009), ME, MD, MA, MN, NY, OR, TN $ 675,000: NJ, RI $ 338,333 OH $ 0: IA, IN, KY, PA...

Rollovers and Plan-to-Plan Transfers by the Participant

Posted on January 12, 2009
A retirement plan distribution is not taxed in the year received if it is ?rolled over? to the same or a different retirement plan or IRA, if various requirements are met. § 402(c)(1). A rollover means either: A. 60-day rollover. A distribution from one plan or IRA to the participant (or his surviving spouse), followed by the participant?s (or spouse?s) redepositing the distribution in the same or another plan or IRA; or B...

Special Distributions for retirement benefits for Spouse.

Posted on January 12, 2009
There are some special issues with naming your spouse or leaving retirement accounts for participants spouse.1) Can delay distributions until spouse reaches 70 1/2. 2) If the spouse dies prior to reaching 70 1/2 the distributions will have to be made within 5 years...

How to compute MRDs: Life expectancy of beneficiary

Posted on January 12, 2009
As long as the sole designated beneficiary is not the surviving spouse the RMD is the life expectancy of the designated Beneficiary. Each years MRD's is computed by dividing the prior year-end account balance by a life expectancy factor (called the ?Applicable Distribution Period? (ADP) or divisor) obtained from an IRS table, with two significant differences: A...

Stretch Beneficiaries and Complications with Estate Planning

Posted on January 12, 2009
Some of the common issues with naming beneficiaries on retirement accounts: 1) Make sure you name a beneficiary on a retirement account or estate will become beneficiary. 2) Multiple Beneficiaries on accounts can cause problems because all Beneficiaries must take the ADP of the oldest beneficiary 3) Lump sum distribution requirements- can be transfered to IRA...

Some individuals still will have a RMD's in 2009

Posted on January 12, 2009
We previously reported that there were no RMD (required minimum distribution) in 2009. This turns out not to be trust in at least one case. If you turned 70.5 in 2008 and did not make your RMS in 2009 as required. You must still make your RMD by April 1, 2009

Ending Underwater GRATS

Posted on January 12, 2009
Given that many GRATS are now underwater and will not likely recover. Grantor can purchase assets, acknowledge that the GRAT will fail and create a new GRAT with the assets. If the GRAT contains an annuity payment and the grantor believes that that the underlining asset will still preform over the term of the GRAT, the annuity payments can be taken and new GRATs can be formed with these payments...

Admitting a Lost Will

Posted on January 11, 2009
Professor Gerry Beyer, author of the WIlls, Trust & Estates Professor Blog wrote an article where a Texas court admitted a copy of a will which gave most of the assets to the decedents sister instead of the children. The will had been seen shortly before the decedents death and many people had access to it...

Jacksonville Non-Compete Agreements

Posted on January 07, 2009
As a Jacksonville Florida non-compete Lawyer, I often am asked about some of the provisions that are contained in a Florida employment agreement. I found an article on the Texas Non-Compete Law Blog, entitled Texas Executive Employment Agreements: Checklist for Employees and thought that the information would be relevant to my Jacksonville Clients...

Estate Planning and Craigslist

Posted on January 06, 2009
I have begun seeing attorneys advertise on Craigslist. Here is the latest one in San Francisco. This San Francisco Estate Planning Lawyer is offering a 25% off on California Estate Planning. I have tended to take a different approach and price my services at lower fixed rate than many of the Jacksonville Estate Planning Lawyers...

Florida Probate Fees

Posted on January 05, 2009
Under Florida Law, the fees for a probate must be reasonable. Many lawyers charge the statutory rates of approximately 3% of the estate. This fee schedule is only a guideline and is not necessarily reasonable. In addition, we have seen probate fees that include the percentage on non probate assets like a homestead...

Are Adopted Adults Considered "decendants"?

Posted on December 29, 2008
A common question with Florida Estate Planning is whether an adult who is adopted is considered a child. We often recomend that out clients places language in their Florida Wills or Florida Revocable Trusts that deal with these issues. The typical language deals with adopted children above or below a certain age...

NFA Gun Trust

Posted on December 28, 2008
As many of you have noticed the Firearms articles on this site have been transitioned to the NFA Gun Trust Lawyer website. If you are in Florida or South Carolina and are looking for a Florida Gun Trust Lawyer or South Carolina Gun Trust Lawyer Contact us or visit NFA Gun Trust Lawyer website for more information...

Jacksonville Florida Guardianship Process

Posted on December 27, 2008
Having a Florida Guardian appointed involves two separate court determinations. The first court proceeding is the Incapacity proceeding where the Florida court determines whether the person is incapacitated as defined by Florida law. The second Guardianship proceeding is where the Florida court actually determines who will serve a guardian...

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