According to Bloomberg News, when Romney engages in estate planning, it’s all about leaving assets for heirs while dodging gift and estate tax. With his strategic “I Dig It” trust, his beneficiaries get a triple benefit. This type of trust known as the “intentionally defective grantor trust” is used by many high net-worth individuals to give potentially unlimited amounts to children while avoiding tax in three ways. First, multimillionaires assign a low value to assets they transfer to the trust. Second, when the trust sells assets at a handsome profit, a relatively low capital gains tax is paid. Finally, by paying these taxes, a settlor can reduce the pile of wealth leaving heirs potentially free of gift and estate taxes.

The Republican presidential candidate set up this type of trust for his children and grandchildren back in the mid-90’s known as the Ann and Mitt Romney 1995 Family Trust. It received shares in the Internet advertising firm DoubleClick, Inc eight months before the company went public. The trust sold them less than a year after its IPO. The trust’s sale made it possible to save hundreds of thousands of dollars in estate and gift taxes. By 1999, the trust reaped a 1,000 percent return on the sale of these shares. If he had given the cash outright, he could have owed a gift tax at a rate as high as 55 percent. This technique entails contributing assets before they appreciate or are difficult to value, and then claim the gift tax obligation as low or non-existent since the appraised value is low or zero. Because Romney’s shares were already in the trust before the sale, no gift or estate tax would be imposed on the cash.

Romney increased his family’s fortune by moving $100 million worth of assets into this trust. The trust’s value is not accounted for in the $250 million that his campaign cites as Romney’s net worth. Also, it is reported that his income tax rate in 2011 was about 14 percent.

The Obama administration anticipates closing this loophole. Romney has vowed as president to cut the gift tax rate and repeal the federal estate tax altogether, referring to this as the “Death Tax.” The Romney campaign stated that this tax “creates a series of perverse incentives that encourages the most complicated and convoluted tax-avoidance schemes at tremendous cost to all involved.”

Clearly, Romney is not digging all these gift and estate taxes. Are you?

If you have family, friends or even a charitable intent, the absence of an estate plan is inexcusable. 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 iPhone 5 is finally out and initial buyers have been waiting in mile-long lines to snatch Apple’s latest generation device. One excited customer explained how much he liked the feeling of handling the phone by stating “it’s so light and has an impressive build quality to it.”

There something else that people should be more excited to invest in. It’s light on your wallet and is very well constructed.

That is your estate plan.

The genius behind apple’s products, Steve Jobs would certainly agree. The master behind the development of the first iPhone understood the importance of quality and solid construction.
Jobs was not only a brilliant innovator and businessman but he was brilliant in employing estate-planning attorneys to guide him in protecting his estimated $7 billion fortune. We all know Jobs was a very private man. That’s why he chose to establish trusts such as living trusts, charitable trusts, and marital trusts to preserve his assets, protect his family, and minimize estate taxes.

The key to correctly using a trust is to fund it with assets. In 2009, both Jobs and his wife transferred three real estate properties into two different trusts. Jobs was also the largest single shareholder of Disney and purportedly received millions of dollars in dividends. It wouldn’t be surprising if he placed those assets into a living trust as well.
Without a solidly constructed estate plan, Jobs would have subjected his loved ones to the burden of paying more than $2 billion in estate tax! That’s certainly not very light on the wallet. He played it smart and invested his money in seasoned and well-qualified attorneys in order to save his family money.

Great news. You can do the same in South Florida.

You can put your new iPhone to great use and google Wild Felice & Partners, PA for all your estate planning needs!

If you have family, friends or even a charitable intent, the absence of an estate plan is inexcusable. 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?

Rosh Hashanah marks the new year of the Jewish calendar. As South Florida families gather around merrily in light of celebrating this special holiday and enjoying traditional meals together, the sense of love and unity inspires deep appreciation for each other. As family members sink their teeth into dipped honey apples that symbolize a sweet new year filled with abundance and good health, the sweet taste inspires gratitude to be alive at the present moment. But what about your thoughts of the future?

A really sweet way to start off the new year is to think about how to protect your loved ones. There is no better time than beginning the new year with all your assets in order to ensure the financial security of your family. Through solid estate planning, it’s a relief to know that your family will be extricated from the legal knots that can result from inadequate or lack of such planning. Whether it be through a Revocable or Irrevocable Trust or a Last Will & Testament, there are various options to guarantee that your family is in good, safe hands. As you welcome this new year with sweetness and abundance, think of your loved ones and how you can make sure they continue to warmly embrace each new year with deep reflections, love, hope, and positivity.

If you have family, friends or even a charitable intent, the absence of an estate plan is inexcusable. 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?

The “working man’s holiday” has finally arrived, but that’s no license to take a day off from thinking about the welfare of your family. In fact, in observance of this holiday, most South Floridians will find themselves in the company of family members and relatives during today’s picnics, barbecues, and family gatherings. It’s a joyous time for children, teens, and adults to assemble together for some great food and hearty laughs before the symbolic end of summer. Labor Day should also be a symbolic beginning for the season of estate planning. Today we are reminded how important our loved ones are to us and likewise, we should be reminded how important it is to protect them in the event of our death. Have a safe, enjoyable holiday and start getting productive with your estate plan!

If you have family, friends or even a charitable intent, the absence of an estate plan is inexcusable. 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?

There may be some serious changes occurring just around the corner that we need to be wary of. The first thing to pop into your mind is probably the 2012 U.S. presidential elections. But what you should also be thinking about is the fact that the current estate and gift tax is set to expire by the end of this year. The current exemption is at a favorable $5.12 million per person, and twice that for a couple. Any amount over this magic number is taxed at a top tax rate of 35%.

However, there may be pending legislation and proposals to drop the exemption to $1 million with a top tax rate of 55%. Because this is an election year, the party platforms covering the transfer tax regime will be relevant to what Congress might do over the next few years. Congressional action is more likely to relate to the amount exempted from transfer tax and the tax rate structure.

It would be wise to act now given the unfavorable situation we may all be faced with. Embrace this opportunity while you still can and contact your South Florida estate planning attorney now. You need to arm yourself with the necessary estate planning tools to protect your legacy and more importantly, protect your family.

Speaking of the 2012 presidential elections, click on this link to hear one of history’s favorite presidents talk about estate planning and asset protection!

If you have family, friends or even a charitable intent, the absence of an estate plan is inexcusable. 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?