A man walks into a lobby and sits down next to a spiritual guru. The guru, wanting to make conversation asks, “So, what brings you here today?” The man replied, “ I want to do charity.”  The guru responds with a smile, “Very good. The life of a man is not in seeing visions and in dreaming dreams, but in willing service. His true wealth is the good he does in the world to his fellows.” The man ponders these words for a few seconds. He then replies, “Yea, I’m here to see my lawyer. I just want the tax break.”

Charitable trusts are great vehicles for bringing out your philanthropic and altruistic side. Not only do charities attain well-needed funding, but also there are great tax advantages to the donor.

The most common type of charitable trust is the Charitable Remainder Trust.  You basically transfer property you would like to donate into this trust. Usually, the charity is designated the trustee and manages or invests your assets in order to generate income. You get a percentage of the profits for the period of time that you specify in the trust.

You can even turn your appreciated property like stocks into cash without paying capital gains. You can reduce estate taxes and you can claim an income tax deduction.  When you die, all your assets in the trust become the property of the charitable organization as well as any residual interest or profits that may have been generated.

Did you know that Bill and Melinda Gates set up a charitable trust with assets valuing over more than $30 billion? Making their mark on humanity, they are currently investing in cutting-edge research to diagnose tuberculosis in developing countries.

Creating a charitable trust is a win-win situation. You can benefit your favorite charity, do some good in the world, claim an income tax deduction, kiss capital gains good-bye and reduce estate taxes.

Simply put, this good deed certainly goes unpunished!

For more information on successful Florida estate planning and probate techniques, please contact the South Florida law firm of Wild Felice & Partners, 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?

So, the NY Giants defeated the Patriots last night in Super Bowl XLVI becoming champions of the NFL. Eli Manning and the Giants pulled off a last-minute touchdown drive to beat the Patriots 21-17 for their second Super Bowl Victory. The jokes are over. The questions are answered. Eli and his Giants are kings once again.

Football aside, one of the most important life questions might still remain unanswered. When are you going to get your estate plan in place? The natural inclination is to respond, “Oh, I’m never going to die” or “I’m too young to worry about that” or “I’m not a millionaire yet. I will worry about preserving my assets when I become rich.”

The death rate in Florida is 100%.  Shocking, I know. We might feel invincible and immortal at times but the sad truth is, we were born to die. And the best part is we really will never know when. It’s a surprise. When it comes to South Florida estate planning, wealth is not the primary factor to consider when deciding whether to structure a trust-based estate.

Estate planning and asset protection is really all about protecting your loved ones. Do you really want to subject your children, spouse, or family members to unnecessary and avoidable estate taxes? Do you want to let your family drown in a sea of probate perils?

If your answer is NO then call your South Florida Estate Planning attorney today. Don’t pull a Manning and try to score a trust at the last-minute.  Considerable care and planning is necessary for your attorney to be able to tailor the optimal plan to meet your objectives and ensure that your loved ones are protected once you are gone.  Nothing screams touchdown better than a secure and solid estate plan!

For more information on successful Florida estate planning and probate techniques, please contact the South Florida law firm of Wild Felice & Partners, 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?

This Sunday most of America will be glued to television sets while watching the Patriots and Giants battle it out on the football field. Everyone will be rooting for their favorite team while wolfing down Buffalo wings and downing endless cans of beer. During commercial airtime, you might be thinking how great it is that your family and friends are all together watching the biggest game of the year. So many memories are being filled right in your family living room. You then decide you are going to leave your house to your kids so that these memories will last forever. What a great idea!

However, without careful thought, you might be doing disservice to your children in the future.  If your residence is worth less than $5 million, most likely you will not have to pay any gift taxes. This is great. However, if your children decide to sell the house immediately, they will be hit with heavy capital gains tax. This is because your cost basis (whatever it cost you to purchase the house) is transferred over to the recipient. So if the fair market value of your house has substantially increased, Uncle Sam will dip into that higher gain.

However, the only way for your children to avoid such high taxes is for them to live in the house for at least 2 years before they sell it. This situation affords them the opportunity to exclude up to $250,000 from capital gain taxes.

What if you decide your children will instead inherit the real estate? In this case, the cost basis will become the current market value, which could translate into a lower gain and thus, lower taxes. However, there are estate tax consequences that will come back to haunt you.  So what do you do?

Take action and consult a highly qualified South Florida attorney to learn about all the available options that can save your children from harsh taxes.

Back in 2008, the Patriot’s offensive line failed to protect their quarterback Tom Brady from the NY Giant’s hard-charging defensive linemen. Don’t fail to protect your kids from Uncle Sam’s appetite for more taxes. Put down that plate of nachos and schedule an appointment today!

For more information on successful Florida estate planning and probate techniques, please contact the South Florida law firm of Wild Felice & Partners, 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?