Affordable Care Act Can Help You Now – An ILIT Can Help You Later!

Posted by on Sep 26, 2013 in Legal News |

obama

Even though 51% of American’s (according to a recent CBS/NYT survey) disapprove of the Affordable Care Act, it is “here to stay,” according to President Obama. The President states that in “[f]ive days from now, on Oct. 1, millions of Americans who don’t have health insurance because they’ve been priced out of the market…will finally be able to buy [it].”

While President Obama has made efforts to “protect” you in regards to health insurance, you should start making your own plans to properly protect your life insurance. For many, especially young people who have yet to build up their assets, a Irrevocable Life Insurance Trust (“ILIT”) can be very beneficial. For parents, you can ensure that you are providing for your your children, by having your life insurance policy go into a trust, which incorporates your intent regarding when and how your children receive the money following your death. Furthermore, many people don’t realize that the proceeds of life insurance are included in the gross estate of the “owner” upon death (possibly using up a lot of your transfer tax exemption). Using an ILIT removes the “incidents of ownership” over the proceeds, and therefore your estate does not have to pay transfer taxes on it. Additionally, when the ILIT is set up for the benefit of your spouse to then pass to your children; the proceeds will not be included in your spouse’s gross estate when he/her dies. You can also set up the ILIT to a Dynasty Trust or Generation Skipping Trust, for the continued benefit of future generations.

So while the POTUS is ensuring you get your health insurance, be sure to obtain the following benefits with an ILIT:

  • avoid estate tax of proceeds
  • shelter property from creditors at death
  • provide income and support for beneficiares
  • meet the liquidity needs of the Grantor’s estate

 

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?

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UFC’s “Bones” vs. “The Mauler” & WFP’s Wills vs. Trusts

Posted by on Sep 17, 2013 in asset protection, estate planning, Trusts, Wills |

bones

Jon “Bones” Jones & Alexander “The Mauler” Gustafsson  go head-to-head this upcoming Saturday, where Jones will  attempt to take the UFC record for consecutive lightweight title defenses. Gustafsson, however, has won six straight fights, and is on a role. In this history-making matchup, who will succumb to defeat? Jones is known for his double-leg takedown, while Gustafsson has stopped 84% of the takedown attempts he’s faced.

Each fight plan is incorporated as a means of constructing a distinct strategic advantage, & the same is true for wealth management and asset protection plans. While a Last Will & Testament is an essential component of any winning fight plan, it is often necessary to tackle your goals with the incorporation of a Living Trust. Look to the following fight plans to determine which supplies the best hooks & double-leg’s for your asset protection goals.

Will & Last Testament Fight plan: Control of Your Assets

A Will is crucial in any estate plan. This is the document that will be used to determine your intent regarding the distribution of your property. Thus, without it, all of your assets will be distributed according to State statute, which may be a departure from your own personal wishes. Furthermore, if you have any minor children, you can designate a legal guardian, thereby communicating your wishes to the court when the time comes for a guardian to be appointed. As you can see, this is the foundation of your game plan.

Will Coupled with Trust Fight Plan: Control & Protection of Your Assets

This fight plan combines your testamentary wishes with further protection by having the Will pour-over into a Trust. The will coupled with a trust effectively bypasses probate, which is the validation of the will — a process that is often incredibly time consuming and often expensive. The pour-over will takes all of the property that passes through the will, and funnels it into the trust. Said property is then distributed to the trust beneficiaries pursuant to the terms of the trust. A pour-over will functions to ensure that all of the decedent’s property is transferred to trust. Think of the pour-over will as a safety net that catches all of the assets that were not properly transferred into trust. All the contents of the net are then poured into the trust, ensuring that all of the property is ultimately distributed through the living trust. Furthermore, all of the decedent’s property is distributed by the terms of one document alone (the trust), allowing for simplicity and clarity.

You need a Last Will & Testament in every takedown; however, combining it with a Living Trust may be one of your most important strategic advantagesFor 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?

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If You Got Pushed Off a Cliff Today, Where Would Your Assets Be Tomorrow?

Posted by on Sep 10, 2013 in asset protection, estate planning |

cliff

We’ve all heard the honeymoon horror stories, but the Newlywed Cliff-Hanger has them all beat. Newly married, Jordan Linn Graham, told police that while hiking in Glacier National Park, she got into a heated argument with her hubby of one week, Cody L. Johnson. She claimed that instead of just walking away, her anger caused her to push Johnson in the back with both hands, causing him to fall face first off a cliff.

Stories such as this beg the question: If you were to be pushed of a cliff today, would your estate be in order? The daily news is a constant reminder of how crucial it is to always be prepared for tomorrow’s unknown. The following five documents will ensure that you maintain control over your assets and protect your loved ones, in the event that you are incapacitated or have fallen over life’s cliff.

  1. Living Trust – gain control, asset protection, & preclusion of unnecessary taxes; ensuring asset protection for your beneficiaries.
  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 for yourself in advance.

 

Don’t get caught in a cliffhanger – plan ahead, & be prepared! 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

 

South Florida Estate Planning Attorney, Michael Wild, answers the question: “At what age should I create an estate plan?”

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Batwoman Won’t Reap Tax-Saving Benefits, Compliments of DC Comics

Posted by on Sep 5, 2013 in asset protection, estate planning, tax |

Yvonne_Craig_Batgirl_1967THE  co-authors of DC Comics’ “Batwoman,” J.H. Williams and Haden Blackman, have declared that they are leaving the title after the publisher “prohibited” Batwoman’s marriage to her girlfriend, Maggie Sawyer. Although this romance won’t be blooming in the comic-books, there is good news for the same-sex-marriage community. The IRS just ruled that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal income tax purposes. Although the Supreme Court  held the Defense of Marriage Act (“DOMA”) to be unconstitutional back in June, it’s been unsettled whether same-sex couples would receive tax benefits in States that did not recognize their marriage. On August 29th, the IRS and Department of Treasury ruled that same-sex couples that were married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes in ALL States, including those that do not recognize same-sex marraiges. For a refresher on some of these benefits, click here.

 

Furthermore, same-sex couples can file a refund claim for 2010, 2011 and 2012 if they were legally married in those tax years. To file a refund claim for income taxes, taxpayers should use a Form 1040X; for estate and gift tax purposes, they should file a Form 843. If you are in a state, such as Florida, that does not recognize same-sex marriage, but you were married in a state that does recognize it – be sure to contact an estate planning attorney to ensure that you receive the full benefits of the this ruling, as it pertains to gift and estate taxes!

Keep in mind, however, this ruling does not apply to registered domestic partnerships, civil unions, or similar formal relationships recognized under state law – marriage alone!

While Batwoman and Maggie Sawyer won’t be reaping the benefits of the Supreme Court Decision, coupled with this latest Revenue Ruling; those who are are in legally binding same-sex marriages can look forward to tax-saving benefits of saying “I do.”

 

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

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