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.

February is American Heart Health Month.  A full month dedicated to spreading awareness about heart disease, which happens to be the leading cause of death among men and in women in the United States.  This is a scary reality for most Americans who love their pizza, hot dogs and beer but the good news is that this disease is preventable.  You can decrease your chances of suffering from heart disease by making healthier choices, such as exercising more, choosing healthier foods and creating an estate plan!  Well, maybe an estate plan can’t prevent heart disease but it will ensure that your family is taken care should anything happen to you.

Estate planning is important for individuals of all ages, from all backgrounds – no matter if you’re married or single.  By planning today, you eliminate any possible arguments about who gets what, can plan for your children’s future, and even provide for your grandchildren!  A solid estate plan should include the following:

The Revocable Living Trust is a great option for those who wish to avoid probate and provide asset protection for their beneficiaries.  The trust can keep your beneficiaries’ inheritance safe against unsecured creditors and allow them to receive what’s held in trust free of probate.  This is a real advantage since Florida’s probate system is both time consuming and costly.  In addition to probate avoidance, the living trust allows the Grantor to retain control during their life.  They may amend as many times as they wish or revoke entirely.  As life changes, so should your estate plan!

The Last Will and Testament will be included in your plan.  In your will, you will appoint minors on behalf of your children, nominate a personal representative on behalf of your estate and specify your wishes regarding cremation or burial.

The Durable Power of Attorney is a powerful document that is only valid for the duration of your life.  Once signed it will allow the designated individual to make important financial decisions on your behalf in the event you are unable to do so yourself.

The Healthcare Surrogate will allow the designated individual to speak with medical staff and assist in making important medical decisions on your behalf if you are incapacitated and unable to do so yourself.  The HIPPA release is included as well to allow for your healthcare surrogate to review medical documents and receive information on your behalf.

You may have the healthiest heart around but that shouldn’t stop you from creating an estate plan.  Call the South Florida Office of Wild, Felice & Partners today at (954) 944-2855 for your free consultation and prepare yourself for the unforeseen.

The probate process is necessary to wind up the affairs the decedent leaves behind. It is necessary whether or not a decedent drafted a will. If someone dies without a will, he or she dies intestate. This means that Florida statutes determine the distribution of assets. On the other hand, a will determines how assets will be allocated to beneficiaries based on the wishes of the decedent. A Circuit Court Judge supervises the probate proceedings. The Last Will and Testament is validated and a personal representative is appointed to administer the estate. Creditors, including the IRS, must be properly paid before any beneficiary gets his or her share. Probate can easily cost between 3% and 7% of the total estate value. A will can also be contested which can delay the distribution for years adding to the expenses of the estate in the form of attorney fees and court costs.

There are some web programs that allow you to make “quick and easy” plans. However, “do-it yourself” wills can cause more harm than good. When it comes to estate planning, an ounce of prevention is worth a pound of cure. Planning ahead does not mean go to the office supply store and get a “fill-in the blank” will or download it from an unknown source. For a will to be valid, it must adhere to the Florida laws and requirements. There are very specific formalities for properly executing this legal document, such as, who can or should be a witness and, where and when you and your witnesses may sign. Improper execution can also cause a will to be contested. Also, certain family members may have rights given by statute. Minimize the possibility of your will being contested or invalidated by seeking a South Florida Estate Planning attorney. In addition, you may have certain desires that cannot be achieved with a “cookie cutter” document.

Even if you already have an estate plan, making the time to see your probate attorney to review documents is a high priority. Estate planning is not a one time process that is done once and never revisited. It is an ongoing activity because life can be capricious and people change. Don’t be that person who leaves loved ones with the extra burden of straightening your financial affairs. Unforeseen snares lie in wait to snag even the most carefully constructed estate plans. Many circumstantial changes may arise that affect major impact upon your life- without a moment’s notice. Is it not better to take some time to consult your attorney and be safe than sorry? A South Florida estate planning attorney has the requisite training and skill to shield clients against such uncertainties in life and construct a comprehensive plan on your behalf and for the protection of those you love most. Don’t delay and let another minute pass you by. Ward off the potential for disaster by calling your attorney today.

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?