TAX DAY BE DAMNED: GIVE OR IT SHALL BE TAKEN

Tax day just passed and you may have made a commitment that you will make better tax decisions for 2016; just like you promised for 2015. The time has come to introduce this resolution to your inner humanitarian, as you can make donations to a good cause, while reducing your tax liability. This year, be sure to find an organization that is qualified by the IRS, so you can make an itemized deduction on your tax return. Use the following tips to ensure that you can receive a deduction for your charitable donation.

1. Itemized Deduction: First of all, you cannot make a qualified charitable deduction under the “standard deduction,” as they can only be reported through itemized deductions.

2. Determine whether your donation is qualified for a deduction: To receive a deduction for your donation, it must be made to a “qualified organization.” The “Exempt Organizations Select Check” is an online tool provided by the IRS to help you determine whether your donation was made to a qualified organization. If you don’t want to do the research, you can always count on larger charitable organizations like Red Cross.

3. Keep a record: When you make a charitable donation to a qualified organization, you must maintain a record in the form of a bank record or a written communication from the qualified organization containing name of the organization, the date and amount of the contribution. If your contribution has a value of $250 or more, you must get a contemporaneous written acknowledgment from the qualified organization indicating the amount of the cash, a description of any property contributed, and whether your received a benefit in return (if so, it must include the estimated value of the benefit received).

4. Submit a Form 8283: If your charitable donation deductions exceed $500, you must submit a Form 8283 with your return. It’s a Wild World, are you protected?

Thanks to the cautiousness that was brought on April Fool’s Day, we are more careful to decide what we take as fact and fiction. The same goes for estate planning: you want to dispel all those false truths, and learn the truth.

False: Estate Planning and Wealth Preservation Techniques are only for Millionaires.

If you are not bringing in at least eight figures, you simply have no possible use for a wealth preservation plan, right? Wrong. If you have anything to lose, it is worth protecting. In fact, if you have air in your lungs, you will benefit from standard health related estate planning documents. A wealth preservation plan can ensure that what large or little amount of wealth that you do have, is preserved in both life and death. Wealth preservation is not just about concerns associated with extreme wealth; but also with the human element. You have a legacy, and the property and relationships that you acquire throughout your life warrant protection. Furthermore, such techniques allow you to maintain control in situations where you would ordinarily have none.

False: Estate Planning is strictly for senior citizens.

If you still have to pay $12 at the movie theater, in stead of the discounted $8 reserved for senior citizens, you are not precluded from the benefits of an estate plan. In fact, the earlier you start planning, the better. Creating a cohesive estate plan earlier in life provides many benefits over those initiated later down the road; especially when it comes to shielding your assets from the claims of creditors. Florida has adopted the Uniform Fraudulent Transfer Act, meaning you cannot transfer your assets to intentionally avoid a creditor. Timing is among the many factors that the court will look at, as well as the purpose for your transfers. If you protect your property on the onset, for the purpose of achieving standard estate planning benefits, you will be effectively protecting your property from the claims of others. Furthermore, there are many strategies that are used to insulate income from unnecessary taxes; as a result, their benefits accrue through time.

False: Estate Plans are like the energizer bunny, they last forever.

While, technically, estate plans do last forever, the problem is that they may not “keep going & going” effectively. There are a variety of life events that warrant a reevaluation of your estate plan, especially those regarding relationships and property. Divorce and remarriage require alterations within your documents to ensure that your properties, and appointed persons, are in unison with your wishes. Changes in your wealth and property should also merit a second look at your documents, and whether they parallel with your goals. Thus, it is incredibly important to have your attorney look over your estate planning documents, following any significant changes in relationships or wealth.

April Fools is one week away and for some this means it’s time to brace yourself.  Maybe you have children that scheme all year or perhaps you are married to the ultimate prankster – whatever your situation may be, it’s time to prepare for a possible heart attack and get your estate plan in place today.

A properly executed estate plan will allow you to remain in control, to some degree, either during times of incapacity or even after you’re long gone.  By executing some important documents, you can rest easy knowing who will raise your children, how your children’s inheritance will be managed and where everything will be going.  Some important documents to consider include:

• Revocable Living Trust – Whatever assets held in trust will avoid probate, saving your loved ones the money and hassle.  The trust will also direct the trustee to manage and distribute your assets according to your terms.
• Last Will & Testament –  Nominate your Personal Representative, choose a Guardian for any minor child, and add any burial or cremation requests.
• Durable Power of Attorney – Nominate an individual to make financial decisions on your behalf or qualify you for public benefits, should you not be able to do so yourself.
• Living Will – Advanced directive or “pull the plug” document.  Allows your healthcare surrogate to give the doctor the “ok” to pull the plug if you are being kept alive by artificial means.
• Designation of Healthcare Surrogate & HIPAA Release – Designate the individual of your choosing to make important healthcare decisions on your behalf, in the event you cannot do so yourself.

Don’t just prepare for the anticipated pranks coming next week – prepare for your future and family today!  Call (954) 944-2855 for your free consultation.

For more information on Estate Planning, Asset Protection, and Probate Administration visit our website at www.wfplaw.com.

It’s A Wild World. Are You Protected?

Every St. Patrick’s Day enthusiast is aware of the cardinal rule: spilling your green beer is a celebratory taboo, that of which can only be recovered through another round of green beer. In the world of wealth preservation, however, we encourage the act of spilling all of your property into a trust, through the use of a “pour-over” Last Will & Testament. The pour-over will effectively takes all of the property that passes through the will, and funnels it into a revocable living trust. That property is then distributed to the trust beneficiaries pursuant to the terms of the trust. “Separate share trusts” are used to provide that all of the property in your trust will preserve all of its protections, by requiring that all distributions continue in trust for your beneficiaries. Consider the pour over will to be a tap of green beer. The tap pours the contents into a pitcher, ordered by you, the Grantor. The pitcher is like a Living Trust. Once the pitcher makes it to your table of beneficiaries (aka, the Grantor is deceased), it is poured into separate glasses. These glasses are considered the separate share trusts, as they continue to hold the contents for the benefit of the beneficiaries. Whether it is green beer, or your wealth, be sure to take the necessary precautions to ensure maximum preservation. It’s a Wild World – is your Green Beer Protected?

FOUR LEAF CLOVERS DON’T EQUAL FOUR YEARS OF COLLEGE
It’s almost that time of year again: the 2015 NCAA tournament brackets will soon be set up, and you’ll be counting on the Luck of the Irish when you make your selections. While the function of college sports is high on the charts for education selection, that’s only half of the battle. What’s left? Funding. Fortunately, if you start planning early, you can ensure that the top four selection is your child’s greatest concern when it comes to a college education. Consider the following estate planning resource as a means of both providing for your child’s college planning, while maximizing tax savings. The Florida 529 Savings Plan allows any U.S. citizen to contribute to a savings account for the benefit of any other. The account is then managed by a professional fund manager who will invest according to your investment option of choice. All federal and state income taxes are then deferred until a withdrawal is made from the account. If such withdrawal is made for a “qualified higher education expense,” there are no income tax consequences. There is no set time for using the plan, and it can be rolled over from one beneficiary to another. Not only does the plan allow you to make monthly payments that are invested to create tax exempt income; you can also use it as a strategy to decrease your gross estate, and avoid gift and estate taxes. The 529-Plan allows the owner to maintain complete control over the account, including the right to terminate and withdrawal, while removing all of its contents from the owner’s taxable gross estate. As a result, it is an incredibly useful tool in reducing taxes, while maintaining control and investing in the future of a loved one It is important to consult with an estate planning attorney and/or financial advisor, as there are a variety of wealth management strategies associated with this plan, and it is important to ensure that such strategy compliments each estate plan.