Can you believe that we’re already in June? 2021 is flying by and things appear to be looking up (at least, when compared to what happened in 2020—knock on wood). Now that half the year has passed, it is time to do a mid-year evaluation of your estate plan. This guide will provide a few simple questions for you to ask yourself when determining whether your estate plan covers everyone and everything it needs to cover. 

1. Do I have a will?
A will is a final statement of your intentions when it comes to your assets. It determines where your assets will go after you pass on, and it is a vital step in the estate planning process. Dying without a will leads to intestacy, which will force your family into a painful and unexpected court process. Having a will as a cornerstone of an estate plan is extremely important. 

2. Do I have a trust?
A trust is a three-party fiduciary relationship set up in a legal document. You, the donor, transfer title to a trustee, who holds the title until they are instructed to transfer title to the beneficiary. A trust is useful for someone who wants to and is able to pass on title to an asset immediately. A trust can also help you avoid probate court, which makes it an attractive option for many. 

3. Do I have beneficiary designations? 
There are a few possessions that can pass to heirs without you dictating them in the will (such as a 401[k]). Maintaining a beneficiary and contingent beneficiary—someone to take the account if the other beneficiary cannot—will allow the person you want to receive your assets without the court stepping in. Not naming a beneficiary to these assets means that a court will be left to decide the funds’ fate, and the court’s decision could run counter to your wishes. 

4. Do I have a letter of intent?
This one is easy to complete, but it’s still vital. The letter of intent is a document that you leave to your executor. It defines what you want done with a particular asset or assets after you die or get sick. The letter of intent can also provide details on your funeral. It will also make a statement of your intent, which can help if there are murky parts of your will. 

5. Do I have a healthcare power of attorney? 
A healthcare power of attorney (POA) makes decisions for you if you’re too sick to make them yourself. This trusted person—usually a spouse or family member—will step in on your behalf, ensuring your wishes are followed. Though you might feel fine now, anything can happen. 

6. Do I have a financial power of attorney? 
Similar to a healthcare power of attorney, a financial POA makes monetary decisions for you in the event that you’re too sick to make them yourself. Again, even if sickness doesn’t seem like it’s looming on the horizon for you, it’s best to be prepared, just in case. 

7. Is my business taken care of?
Some of us are business owners, and businesses must be included in estate plans as well. Having a succession plan and plan of action for your business after you die will keep your company from falling into disarray when you’re gone. 

8. Do I have guardianship designations?
Those with minor kids should have guardianship designations, in the event that something happens to them and their spouse. Make sure to talk to your proposed guardian before you make the decision, as you want to ensure the guardian is on board before potentially saddling them with a huge responsibility.

9. Have I acquired any new major assets? 
Estate plans change, and sometimes those changes are due to new assets that need to be incorporated into the plan. If you’ve acquired something major, you’ll need to include it in your estate plan, sooner than later. 

10. Has anything major changed in my life? 
This update applies to pretty much any major event in your life. If there are new births, deaths, or weddings, they need to be reflected in your estate plan. 

These brief questions will put you on the right path to ensuring that your estate plan covers what it should cover. Visit our website to learn more and contact an estate planning attorney. 

Memorial Day is one of America’s longest-standing, most-honored holidays. It was first instituted in 1868, when General John A. Logan, the commander in chief of an organization honoring Union Civil War veterans, wanted to commemorate all that the Union soldiers did for America. 

It’s hard to tell exactly where the first Memorial Day celebrations originated. Over twenty-five locations have laid claim to the holiday. Even before the Civil War, soldiers’ graves were often decorated, and the decoration continued during the American Civil War. Scholarly efforts have tried to detangle myth from legend and discover the exact origin, but it has been difficult. Either way, the holiday is now federally-observed and an important part of the fabric of the nation. Every Memorial Day, Americans all across the country visit the graves of soldiers who died while serving in the Armed Forces. 

Now, Memorial Day is a way to honor and remember the sacrifices of those who died for our freedom. In the spirit of Memorial Day, it’s important to think ahead and leave a legacy for you and your family.

Thinking Ahead 

“Thinking ahead,” in this context, refers to planning for life’s possibilities and eventualities. Sickness, as we all know from these COVID-19 times, can loom large on the horizon. However, there can also be real issues that pop up even when you’re perfectly healthy. 

In Sickness

A healthcare directive is a document that will specify your wishes to doctors, nurses, and other medical personnel in the event that you’re too sick to communicate your wishes yourself. 

A power of attorney is someone you entrust with the responsibility to make financial and healthcare decisions on your behalf if you’re incapacitated. Both a directive and a POA are two documents that, in sickness, can keep you from losing more than just your health.

And in Health 

Tragedy can strike even when you’re healthy. The importance of insurance cannot be overstated. Life insurance will provide your family or business with a source of income after you pass away, bridging an important financial gap. 

Estate planning for SBOs (small business owners) is also vital, even if there are no storm clouds on the horizon. Your business is your life’s work, and you want to make sure it is protected, through insurance and from creditors, if something happens. Estate planning attorneys and financial advisors can help protect what you’ve worked for.

Leaving a Legacy

Though a gloomy topic, what will happen to your assets after you pass away? You do not want to die without a will, as dying intestate ensures a lengthy, painful court process that will be hard on your family. Using estate planning to leave a legacy for your kids and, if applicable, your business, is extremely important. 

For Your Kids

Your last will and testament is the final say on where you want your assets distributed. You can also consider a trust, which will transfer legal title to a trustee until you want your kids to receive the asset in question (property, money, etc.).  

For Your Business

You should create a succession plan for your business. It’s extremely important, especially for family-owned businesses, to contact an attorney about laying down the groundwork for what will happen to your business when you pass away. 

Celebrating Memorial Day means reflecting on both the past and the future. While we should definitely commemorate what has happened, we also should look forward to leaving a legacy.

Visit our website to learn more and contact an estate planning attorney.

Time is flying by in 2021, and is that really such a bad thing? If you’re a small business owner, you know that the past year-and-a-half has been difficult. Though there are government programs that have helped keep small businesses afloat, things are not completely back to normal. 

Luckily, there are various legal ways you can protect your business assets, even in these troubled times. Use this guide as a reflection tool. It’s almost mid-year—how are things looking for your business? What steps have you taken to protect what you have built? 

What the Surveys Are Saying

Bill.com conducted a survey of small business owners, asking them about their forecast for 2021. The survey found that, while a majority of SBOs are optimistic, they are also making changes in how they run their businesses. 75% are introducing new products and methods of conducting business as we enter the second year of COVID-19. 

New innovation is a necessity for an SBO. However, it is, obviously, not the only necessity. Estate plans are a must-have. In the next section, we’ll discuss several key components of small business estate planning. 

Estate Planning for Your Small Business

If you’re a small business owner, you probably have a million things to focus on each day. It’s imperative to carve out time in your schedule, however busy, to create an estate plan. Around one-third of small business owners have no estate plan (Fundera), which means they have no written-down plan for succession. 

Basic Planning 

A will and power of attorney are two basic must-have documents for any SBO. A will states how you want your business to be distributed (succeeded, liquidated, sold, etc.) after you die. A power of attorney will handle financial and business transactions, such as paying bills, handling insurance claims, and such, if you are unable to do so yourself. 

Tax Considerations

This is where it is especially important to hire an attorney, as tax laws are always in flux. Estate planning attorneys might be able to help minimize estate taxes, which are an issue for estates exceeding a certain amount of money (currently, $11.18 million). Other tax considerations include withdrawal of 401(K)s, IRAs, and/or other retirement accounts.  

Buy-Sell Agreements 

Buy-sell agreements are optional and really only apply to businesses that have multiple owners. Buy-sell agreements are legal documents that specify who can purchase an owner’s share of the business. BSAs also specify the conditions and price of the sale. This document lays out what should happen if one of the owners dies, retires, or becomes disabled. 

Insurance

Insurance is one of the most vital tools an SBO can possess. While business insurance is obvious, life and disability are two other insurance policies you should think about. Life insurance coverage will provide your family (or another named beneficiary, like your business) with income when you die. The insurance can also guarantee income to your business, keeping the company operating when you are gone. 

Disability insurance will provide coverage in the event of a short- or long-term disability. Again, it will give your business much-needed cash flow. You can purchase these policies with your family and/or business as the beneficiary. 

Succession Plan

Succession planning specifies exactly how you, your company, and family will prepare for the ownership transition. Succession plans are written documents that lay out what will happen to your company when you die. They include much of the same information as business plans, just with an added section on succession. You’ll want to keep the succession plan document and will consistent with one another, so as to prevent expensive litigation or court battles down the line.

Family-Owned Issues 

Family-owned businesses often face a host of issues that other small businesses don’t. For example, one child of a business owner might want to take over the business, while the other doesn’t. There also might be concerns about keeping family business assets within the bloodline. An estate planning attorney, as well as a financial advisor, will be able to help you find legal pathways to structuring your business estate plan in the way that best fits you and your family.

Updating the Plan

You’ll want to update your estate plan regularly. When you experience major life or business changes, or when tax laws (both federal and state) change, you’ll want to take another look at your documents.  

This guide isn’t the be-all, end-all of protecting your business, but it should hopefully give you a chance to reflect on what you have done and have yet to do for your company. Contact an estate planning attorney to learn more and visit our website for details on how we can help.

Mother’s Day has been around since the early 1900s, and we’ve cherished it for over a century. In 1907, a woman named Anna Jarvis held a memorial for her mother, Ann Reeves Jarvis, and announced her intention to create Mother’s Day as a way for all maternal figures to be celebrated for all they do for their children. 

It didn’t take long before Mother’s Day became a full-fledged holiday, and, every year, we celebrate it with flowers, brunches, and spa days. But, what if the gift for this holiday was a little different? 

Though you shouldn’t skimp on all the usual Mother’s Day presents, consider setting up an estate planning meeting for your mom. This gift might seem a little unorthodox, but it will have long-term benefits that will last for years to come.

How Estate Planning Can Help Moms 

Estate planning has several key elements. Though there are a million and one documents and legal tools that can go into an estate plan, this article will cover the basics. If your mom needs any of these key documents, contacting an estate planning attorney will be the perfect gift this season. 

Last Will & Testament 

When you think of estate planning, the idea of a “last will and testament” is probably what you picture. Last wills and testaments date back thousands of years, and they are still an important aspect of estate planning to this day.
The will outlines what you want to happen to your assets after you pass away. Though a bit morbid for a Mother’s Day gift, it’s far less dreary than dying without a will (AKA, dying “intestate”). In that case, the state takes over your assets in the probate process. The state’s division of assets focuses on creditor repayment, which is likely far different from what your mom would want to have happen to her most prized possessions. 

Drawing up a will is not difficult, but it’s best to have an attorney do it, as there are a lot of minor technicalities that an untrained eye can overlook. Wills also do not have to be updated constantly. The rule of thumb is to check them every three to five years or after a major life event.

Living Will & Healthcare Power of Attorney

A living will is also called an advanced medical directive. It outlines what you want doctors and nurses to do or not do if you are seriously ill and incapable of communicating your wishes yourself. A living will often relates to personal decisions about life support and life-sustaining medical intervention. 

A healthcare power of attorney, by contrast, is a trusted individual that you appoint to manage your healthcare affairs if you’re unable to do so yourself. This healthcare POA signs a legal document swearing to act in your best interests if you need someone to make your healthcare decisions for you.

So, why are these legal tools important? Being sick or incapacitated means you are experiencing one of the most vulnerable points of your life. Having a healthcare directive and power of attorney ensure that you (or your mom) are well-taken-care-of, even in such a diminished state. 

Financial Power of Attorney

Similar to a healthcare power of attorney, a financial power of attorney is a trusted individual who signs a legal document swearing to act in your best interests. This financial POA exercises his or her decision-making powers as they pertain to your finances. Should you become seriously ill, the financial POA handles investment decisions, bill-paying, and other major and minor financial matters. 

If your mom attends an estate planning session, it’s likely that the document pertaining to the financial POA will be created at the same time as the last will and testament. It is especially important to nominate a financial POA if there are a lot of financial assets or specifications regarding the estate.

Trust 

Last but certainly not least is a trust. A trust is a legal document that transfers legal title of property to a trustee, who holds it for the benefit of a third-party beneficiary. Trusts do not have to go through probate court, and you can set restrictions and guidelines for how you want beneficiaries and trustees to manage your assets.

A trust is an especially good idea for those with sizable insurance policies, large estates, and/or a lot of kids. If these characteristics apply to your mom, talk to an estate planning attorney about setting up this legal entity. 

We want to protect the ones we love and, of course, our moms are no exception. Estate planning is a long-term gift with long-term benefits. Consider setting up a meeting for your mother this holiday and visit our website to learn more about our services. 

Florida does a lot of things differently, and legal affairs are no exception. One area in which Florida differs from other states is probate. Probate court is the legal mechanism by which a judge distributes the assets of an estate after the estate’s owner has died. The judge might distribute these according to an authenticated will, or, if the owner dies intestate, probate court can distribute the assets as it sees fit, keeping in mind the goal of repaying creditors. 

The text governing Florida probate is contained in Chapters 731-735 of the Florida Statutes. Florida Probate Rules, Parts I and II, contain the rules for Florida Probate Court. In this article, we’ll discuss the ins and outs of the Floridian probate process.

The Types of Probate Administration 

When talking about Florida probate court, there are two main types of administration to know: Formal and Summary. Formal administration is the court-supervised, traditional form of probate that begins with a petition to open and an appointment of what Florida calls a “PR” or “Personal Representative.” In other states, the PR is known as an “executor” or “administrator.” This type of administration is required when the estate owner has been deceased for two years or less, and the probate estate’s value is above $75,000. 

Small administration, by contrast, occurs, when the decedent has been dead for over two years, and the estate’s value is under $75,000. Any beneficiary or person the decedent has named a PR can act as the petitioner for summary administration, filling out a form to get the process going. 

There is a third type of administration in Florida, but it is not common, nor is it widely applicable. This administration is known as a “Disposition of Personal Property without Administration.” The DPPA releases the assets of the deceased to the individual who paid the deceased’s final medical bills and/or for the deceased’s funeral. Again, the circumstances in which a DPAA applies are very limited. 

What Counts as Probate Assets? 

The most common types of probate assets include bank or investment accounts owned solely by the decedent (meaning that there are no other names on the account[s]) and life insurance policies, individual retirement accounts, or annuity contracts that are payable to the decedents estate. Real estate that has been titled in the decedent’s name also counts as probate assets. This list isn’t exhaustive, but those three are the most common probate assets the court sees. 

Examples of non-probate assets include trust property, beneficiary designations, joint property owned with rights of survivorship or through tenancy in the entirety, and life estate deeds. These items do not require probate court to distribute them. 

Why is Probate Necessary? 

If the decedent dies intestate (without a will), probate is required to transfer ownership of the decedent’s assets. It is also required to complete the financial affairs of the decedent even after they die. If the procedures are followed correctly, creditors will be paid off during the process, and beneficiaries will be given the assets they are owed. 

Overview of the Process 

To start, a petition to open proceedings must be followed by the circuit court clerk. Filing occurs in the county where the decedent lived when they died. The court will charge a filing fee. The filing fee varies depending on the county, but you should expect to pay $200-$500.

Every case is different, but the process will usually include establishing the validity of a last will and testament. A valid will in Florida must be in writing, signed by the testator (the name for the person writing the will), and the testator’s signature must be in the presence of two (2) witnesses. Then, the two witnesses have to sign in the testator’s presence, as well as the presence of each other. When the testator dies, the will must be “proven.” You prove a will by presenting evidence to the court that the will was executed properly. Some wills are self-proving, which is allowed under §732.503 of the Florida Statutes. 

After the will is proven, letters of administration will appoint a PR. The decedent’s assets will be gathered and listed, and outstanding debts will be paid. After the debts are repaid, the remainder of the assets will be distributed to the heirs at law or beneficiaries, depending on the situation.

Contact an estate planning attorney to learn more about this court-supervised process, including ways around it. There are financial tools at your disposal that allow for the transfer of assets before death, so your family doesn’t have to go through the Florida probate process.