DOMA’s Demise Reminds Us That “Portability” is Not Just a Luggage Feature

Posted by on Jun 26, 2013 in asset protection, estate planning, Legal News, tax |

rainbow flag

Same sex couples can now receive the fabulous feature of portability – and we are not just talking about Louis-Vuitton luggage!

Today, the Supreme Court gave DOMA [“Defense of Marriage Act”] the boot, holding that it’s definition of marriage (limited to a union between one man & one woman) violates the guarantee of equal protection provided by the Fifth Amendment. Keep in mind, this only applies on a Federal level, and States can still refuse to recognize same-sex marriages. Here in South Florida, same-sex marriage is not recognized on a State level. However, when it comes to estate planning, DOMA’s demise has many beneficial effects for same-sex couples in South Florida; especially when dealing with Federal taxes.

Let’s talk about portability in relation to taxes. Generally, an intra-spousal transfer is not subject to transfer taxes due to the marital deduction, and there is portability of the exemption amount. This means that when “Wife” transfers assets to “Husband,” those assets are not subject to any Federal transfer tax (gift or estate tax). Furthermore, each individual receives an estate tax exemption of $5,250,000. Lets just think of it as $5,250,000 worth of cash in a bag (luggage, if you will). What if Husband doesn’t use his entire exemption amount, as his gross estate is much smaller? Well, that’s where portability comes into play. All the cash in Husband’s luggage (that he never used) is wheeled on over to Wife. She now has her own luggage full of cash, as well as Husband’s luggage full of cash; giving her a pretty substantial protection from estate taxes. This way, Husband’s estate tax exemption is not wasted, as it transfers to the Wife.

Previously, same-sex married couples didn’t receive the benefit of portability, because they failed to fall into the spousal status of Federal law. Now, following the Supreme Court’s holding in United States v. Windsor, same-sex married couples receive the marital deduction, and have portability of their exemptions.

While this is certainly a great estate planning feature for same-sex couples, you don’t want to always rely on portability. Rather, you should plan for it, as there is a Wild array of estate planning techniques that will ensure your receive all of the benefits of the law.

For more information on successful Florida estate planning and asset protection, contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 or via email at mwild@wfplaw.com to schedule your free consultation.

 

It’s a Wild world. Are you protected?SM

 

Read More

Arm your Assets with a Proper Gun Trust!

Posted by on Jun 25, 2013 in asset protection |

A gun trust, also known as a NFA Trust, is a legal tool designed to address specific issues concerning the ownership, transfer, and possession of firearms and other items regulated by the National Firearm Act (NFA).

You can lawfully purchase and own NFA firearms in Florida. You do have to register these weapons with the Bureau of Alcohol, Tobacco, Firearms and Explosives (BATFE or ATF), pay a $200 tax on each one, and obtain the consent of your Chief Law Enforcement Officer (CLEO).  However, if you create a proper Gun Trust, the trust owns the NFA items. A corporation or LLC can also be used to own weapons, but trusts do not require annual taxes or filing fees, thus limiting the hassle and expense of maintaining weapons.

Some benefits of creating a NFA Trust include:

  • Being able to designate trustees who will be authorized to have access to and use your NFA items and firearms.  This eliminates the danger of constructive possession by appointing the people you want to be able to access your collection.
  • No CLEO approval required
  • When using an NFA Gun Trust to acquire NFA regulated items, neither fingerprints nor photographs are required.  Unlike when an individual directly purchases a firearm.
  • Firearms do not become a part of the public record which is searchable by all
  • No annual taxes to pay to maintain a corporation or LLC; only required to pay the $200 tax stamp

Additionally, once you pass away, the NFA Trust provides rules for legally handling the items. After your death, your estate and all your belongings will likely begin the process of probate (unless you have an estate plan in place). As many know, probate is an exhausting, daunting process that could take years. Probate proceedings will be necessary to transfer your NFA guns or items to your heirs and are a part of the public record, meaning people will know exactly what your children have by searching public records right on their home computers. With an NFA Trust, you can decide which beneficiaries will acquire all or part of your collection.

Your beneficiaries will be protected and your NFA firearms will not be subject to probate or made part of the public record. The NFA Trust can have specific provisions to protect beneficiaries, such as your children, from violating the NFA and ensuring they do not receive the NFA firearms if they live in a location where it is illegal to possess NFA firearms. The trust also allows the parent to specify when the child can receive the guns (must be at least eighteen years old by Florida law).

Be sure to arm your assets with a proper gun trust.  For more information on successful Florida estate planning and asset protection, contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 or via email at mwild@wfplaw.com to schedule your free consultation.

        It’s a Wild world. Are you protected? SM

 

rambo

 

Read More

LeBron Leads Miami Heat to a Triumphant Victory – In Both Winnings AND Profit

Posted by on Jun 21, 2013 in estate planning, Probate, Trusts, Wills |

lebron

WHETHER you’re in South Florida or Timbuktu, you are already well aware that Miami Heat took their second straight NBA championship on Thursday night. LeBron James has been credited as the leader of this win, taking the title of Finals MVP. While LeBron has responded to his worshiping fans with statements of humility and gratefulness; his victory is not limited to his championships. Financial reports show that prior to Lebron’s arrival on the Heat, the franchise was valued at $425 million, and is now estimated to be $625 million.

While we can’t pull a LeBron & help you increase your profits by $200 million within a three year span; we can assist you with a triumphant victory in the estate planning department. The following five documents can help you increase control over your assets, and reduce the costs associated with probate.

  1. Living Trust – a living trust has become increasingly desirable due to its ability to avoid probate (the legal process of determining whether a will is valid). If you are married, you may want to designate yourself and your spouse as co-trustees, so that you have full control over the property while you are still alive. Side Note: such control does have tax consequences, so you will want to discuss this with your estate planning attorney.
  2. Assignment of Property – this is exactly that, assigning your property to your trust. In other words, placing your property into the trust. This includes both real & personal property. A trust does not do anything for you if there is no property in it.
  3. Last Will & Testament – this is your traditional will that is used upon death to distribute property to beneficiaries, specify last wishes, and name guardians for minor children.
  4. Durable Power of Attorney – this allows you to designate and authorize someone to legally act on your behalf, in the event that you become incapacitated.
  5. Combination Living Will & Designation of Healthcare Surrogate – this outlines important healthcare decisions in advance, and appoints a healthcare surrogate to make healthcare decisions for you when you become unable to do so yourself.

When it comes to your estate, ask yourself, “What Would LeBron Do?” Clearly, he’d maximize winnings & profit! Whether you’re in South Florida or Timbuktu, protecting your assets & decreasing your costs is both a winning and profit maximization.

For more information on successful Florida estate planning and asset protection techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 or via email at mwild@wfplaw.com to schedule your free consultation.

        It’s a Wild world. Are you protected? SM

 

Read More

Take a Lesson from Beauty & Use Your Brain – Plan Ahead!

Posted by on Jun 18, 2013 in estate planning, Legal News |

imgresPoor Miss Utah, Marissa Powell, is facing nothing but critics regarding her answer to the income inequality question posed on Sunday night’s Miss USA pageant. Miss Powell’s beauty failed to meet brains; rather, it met her social demise, as demonstrated by the answer to the following question:

“A recent report shows that in 40 percent of American families with children, women are the primary earners yet they continue to earn less than men. What does this say about society?”  Her answer of “we need to figure out how to make education better,” marked a painful downward spiral.

If there is a moral to this story, it is to plan ahead. Although Miss Utah’s question wasn’t exactly a curveball; life can catch us off guard with the difficult of situations. Prepare for life’s unexpected challenges in South Florida with an estate plan that answers some of the following questions (don’t worry, nothing on income inequality).

If you died today, or became incapacitated, would you have the following benefits?

  • asset protection
  • control over your assets
  • protection for your loved ones
  • preclusion of unnecessary taxes
  • creditor protection
  • limited/no transfer taxes for following generations

If the answer to any of these is “no,” you should consider seeking an estate planning attorney to assist you in planning ahead for any of life’s Wild, & unexpected challenges. This may include, but is not limited to the following documents:

  1.  Living Trust – gain control, asset protection, & preclusion of unnecessary taxes by designating a trustworthy Trustee.
  2. Assignment of Property – place all of your property into the trust, and avoid costs & headache associated with probate.
  3. Last Will & Testament – used to distribute property to beneficiaries (or a trust), specify last wishes, and name guardians for minor children.
  4. Durable Power of Attorney – gain control by designating someone to legally act on your behalf in the event that you become incapacitated.
  5. Combination Living Will & Designation of Healthcare Surrogate – gain control by making important healthcare decisions in advance.

For more information on successful Florida estate planning and asset protection techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 or via email at mwild@wfplaw.com to schedule your free consultation.

 It’s a Wild world. Are you protected? SM

 

Read More

Oldest Man Alive Dies…Be Wise With An Estate Plan

Posted by on Jun 13, 2013 in estate planning |

According to Guinness World Records, the last man alive from the nineteenth century has passed away. Jiroemon Kimura, the oldest man in recorded history, was 116 years old. The resident of Kyōtango, Japan, was being treated for pneumonia in the past week when he stopped responding to treatment. He then died of natural causes. I wonder if he had an estate plan in place?

Whether you live to be 116 years old or die tomorrow, one thing is for sure; Kimura’s case is extremely rare, and there are no guarantees. There is no better time than now to set up an estate plan to protect you and your loved ones. Wild Felice & Partners is a full-service, Fort Lauderdale, Florida based law firm with a specialty in asset protection. We utilize a combination of estate planning, real estate, corporate formation, family law, and asset structuring to assure that our clients are protected from potential litigation, creditors, and any other threats that may be looming.

An estate plan is not just about death. Whether you are still at the early part of your earning potential, have young children to worry about, or are concerned with reducing the possible estate tax or probate mess, accomplishing these goals as quickly as possible is crucial.

While our South Florida estate planning attorneys have the knowledge and experience to provide the highest level of estate tax planning, our firm aims to shed the tax paradigm and focus instead on the dynamic relationships between our clients and their loved ones. WFP Law realizes that estate planning is truly for the loved ones that we leave behind.

old

Our comprehensive estate plans include the following:

 1. Living trust

 2. Assignment of Property

 3. Last Will and Testament

 4. Durable Power of Attorney

 5. Combination Living Will & Designation of Healthcare Surrogate

 

 

South Florida residents can all only hope to live as long as Kimura did, but in the mean time while we are still alive and kicking, it is crucial to set up an estate plan.  For more information on successful Florida estate planning and asset protection techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 to schedule your free consultation.

It’s a Wild world. Are you protected?SM

Read More