If January has brought you a winter baby, an important dimension has been added to your estate plan. It is critical to plan for the care of your child in case of parental incapacity or death. A guardian should be appointed to look after your child in the event something tragic happens to you or your spouse. If you are a single parent, this need becomes even more pressing.

Failure to select a guardian for your child will result in a lengthy judicial process to determine the guardianship of your little one. Undesirable candidates may become his or her new caregiver. Your little one might even become ward of the state.

There are two kinds of guardians to consider. The first is known as a guardian of the estate. This is someone who manages the money or assets held by a child. On the other hand, a guardian of the person, is someone who becomes a substitute parent for the child. For example, your accountant brother-in-law may be the ideal candidate as guardian of your child’s estate, but his unceasing workaholic nature may not make him the preferred choice for guardian of the person.When selecting a guardian for your child, consider the two types and select the ideal candidate with the skills and attributes that best suit those roles.

Another important matter to consider is protecting your minor child from probate and a hefty estate tax bill by establishing a contingent trust. Don’t risk having your little one left with nothing. Protect assets from any predators or even the whims of an immature child with a spendthrift nature by consulting with your South Florida attorney now.

Let’s face it – life requires insurance.  Cars crash, homes get flooded and people pass away. As morbid as this topic may seem it’s purely realistic and the best way to deal with it is to be prepared.  Most Americans fail to realize the importance of life insurance.  Once a loved one passes, they are likely to leave behind a variation of expenses such as a funeral bill, business expenses, or an unpaid mortgage.  These expenses can cause the surviving family to deal with an unnecessary financial burden and experience a great deal of stress.  Have no fear, life insurance is a great way to alleviate this stress!  Once your policy is coupled with the right estate planning technique you can walk away with peace of mind knowing that the family will be fully protected.

An Irrevocable Life Insurance Trust (ILIT) is an estate planning tool that is commonly used.  The ILIT will allow your family to continue to benefit from the life insurance policy without the hassle of a possible tax issue.  Great news, right?!  Here is how it works:  The ILIT transfers the benefit into the trust while you relinquish all control over the policy.  This relinquishment of control is required by the IRS to avoid possible estate taxes.  Doing this removes the life insurance policy from your estate and decreases any potential taxation the family may have faced.  Now, all that remains is an increase in overall asset protection for the family!

Considering creating an ILIT?  Be sure to first consider who you will designate as Trustee, the individual who will distribute the assets, as well as who you wish to designate as a beneficiary (can be a spouse, child or any other individual you deem appropriate).  The terms of the trust are up to you – you can choose how you wish the assets to be distributed but be certain you are happy with how it’s created because once in place the terms of the ILIT cannot be changed.

This estate planning technique offers tax free protection for the family.  Alleviate the potential financial burden your family could face by calling an experienced estate planning attorney today!

For more information on successful Florida estate planning and asset protection techniques, please contact the South Florida law firm of Wild Felice & Partners at 954-944-2855 to schedule your free consultation.

It’s a Wild World.  Are You Protected?