Some Things Never Change … While Others Really Need To

Posted by on Apr 25, 2011 in estate planning, Legal News, Trusts, Wills |

So you say you have an estate plan?  When was the last time that you had it reviewed?

You should have your estate plan reviewed at least once every 3 to 5 years.  This is not only for changes in law and changes in the tax code (both which happen more often than you think) but also because your family and assets tend to change that often too.  Just think about how your family looked 5 years ago.  Are there more people in it now?  Are there less people in it now?  Have children become adults in that time?  Every 3 to 5 years the average family will see marriages, divorces, births and deaths.  Each of these occurrences should lead to an estate plan update.  Here are some questions to ask yourself:

1. Are my children ready to be their own trustee if something should happen to me?

2. Is my living will valid?  (Hint: if made prior to 2006, it probably isn’t.)

3. Are all of the people I chose to act as trustee, guardian, power of attorney, health care surrogate, etc. still alive?  Still competent?  Still trustworthy?

4. Is my estate taxable this year?  How about in future years?

There are an infinite amount of questions you can ask yourself but the easier method is to contact the South Florida law firm of Wild Felice & Pardo, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation and complimentary estate plan review.  It’s a Wild world.  Are you protected?

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No Bread For Eight Days?

Posted by on Apr 18, 2011 in estate planning, Probate, tax, Trusts, Wills |

Tonight we celebrate the first night of Passover.  For those that are unfamiliar with the story of Passover, it commemorates the time when Moses led an exodus of the Jewish people out of Egypt in search of a country with a lower estate tax and more generous inheritance laws.  Lucky for Floridians alive in the year 2011, we have no inheritance tax, no state estate tax and the ability to draft living trusts to protect our family from the Federal estate tax.  

We can also use trusts to avoid probate, provide for a special-needs child and control the use of your assets  for many many years after your death.  There are dozens of reasons why a living trust might benefit your family and one of the most popular reasons is saving your family some dough.  Unfortunately for my fellow Jewish people, dough is something that we wont be enjoying over the next 8 days, at least not the leavened kind.

For more information on successful Florida estate planning and probate techniques, please contact the South Florida law firm of Wild Felice & Pardo, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.  It’s a Wild world.  Are you protected?



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What To Do With Your Vacation Home

Posted by on Apr 14, 2011 in estate planning, Probate, Real Estate, tax, Trusts, Wills |

There are a myriad of estate planning tools that can help protect your real estate assets. Warm weather states like Florida are a mecca for second homes and investment properties. Unfortunately, these occasional homes become part of a person’s taxable estate when they die.    The Qualified Personal Residential Trust (QPRT) is a unique estate planning tool that provides a solution for this concern. A QPRT is an estate planning technique which is provided for under US Treasury Regulation Section 25.2702-5(c)(2). The regulation allows for the creation of a QPRT for a primary residence and a secondary residence.

The concept behind the QPRT is less confusing than its name implies.  Simply put, the QPRT operates as follows:

  • An individual transfers the title of a property to the trust (QPRT).
  • The individual sets up a pre-determined amount of time to continue living in the residence.
  • The owner of the home (who is now called the grantor) pays the expenses associated with the residence such as homeowners’ association fees, taxes, and expenses; however he does not pay rent.
  • When the pre-determined time is over, if the grantor is still alive, he may remain in the home and pay his children rent which should reflect an amount that would be paid in a similar situation.
  • If the grantor dies, the home will pass to the children either without estate taxes or with significantly reduced estate taxes based upon the appreciated value of the home.

Due to the complex tax code we all endure, it is important to discuss this option with both a trust attorney and CPA. Specifically, there is a gift tax exemption ceiling which could affect the amount of estate tax that will ultimately have to be paid by the children. However, even if the house appreciates significantly, the children will benefit from a substantially lower estate tax than they would have paid if they inherited the property through traditional means like a will. This discount occurs because the taxable value of the house is lowered due to the grantor living in the house. Therefore, this unique tool should always be considered when considering your estate plan if you happen to own a second home.

For more information on successful Florida estate planning and probate techniques, please contact the South Florida law firm of Wild Felice & Pardo, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.  It’s a Wild world.  Are you protected?

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Two Certainties In Life

Posted by on Apr 11, 2011 in estate planning, Probate, tax, Trusts, Wills |

You may have heard the old expression that there are only two certainties in life: death and taxes.  Actually, that old addage is not entirely true.  By utilizing a combination of Revocable Trusts, Irrevocable Trusts and gifting, you may be able to eliminate your family’s estate tax burden altogether.  Foundational comprehensive estate planning will allow your family to avoid the worry connected with taxes and focus on the only true second certainty: reality shows about hoarders.

For more information on successful Florida estate planning and probate techniques, please contact the South Florida law firm of Wild Felice & Pardo, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.  It’s a Wild world.  Are you protected?

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Will You Get Fooled Again?

Posted by on Apr 4, 2011 in estate planning, Legal News, Probate, tax, Trusts, Wills |

Have you ever had to go through the probateprocess when a loved one died?  It’s horrible.  The court and attorney fees are very high, the assets are tied up for an incredible amount of time and the  entire process can lead to public embarrassment and fighting amongst family members.  In the song Wont Get Fooled Again, the Who must have been thinking about the probate process and how to avoid it.  Here’s a brief translation of one of the verses:

I’ll move myself and my family aside (the band is going to protect their families with estate planning)
If we happen to be left half alive (in addition to the trust, a power of attorney will protect from incapacity)
I’ll get all my papers and smile at the sky (the living trusts created by the band members)
Though I know that the hypnotized never lie  (so the fighting among family members will be avoided)
Do ya? (do you have your plan in place?)
 

A trust-based foundational estate plan can save your family hundreds of thousands of dollars in estate tax and probate fees and for the month of April, the law firm of Wild Felice & Pardo PA will draft your estate plan at a 25 percent discount if you mention this blog post.  I’d call that a Bargain … not the best I’ve ever had, but still pretty good.

For more information on successful Florida estate planning and probate techniques, please contact the South Florida law firm of Wild Felice & Pardo, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.  It’s a Wild world.  Are you protected?


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