Get your green face paint, food coloring and crazy clothes ready because March is here!  Not only does March mark the official start of the Spring season (March 20^th) but it also is the month in which many American’s celebrate St. Patrick’s Day.  So if you’re one of those individuals that will be green from head to toe while guzzling green colored beer – take a minute to prepare yourself for the possible consequences that may follow from getting a little too crazy.

Estate Planning isn’t just for the rich or elderly; it truly is for everyone.  Even if you don’t feel you have enough assets that would warrant the creation of a Trust you should still have other documents in place such as a Living Will, Durable Power of Attorney, Healthcare Surrogate and HIPPAA release form.  Why, you may ask?  What happens if you drink too much of that green beer?  Let’s say you slip and fall and end up unconscious for a long period of time; who will continue to pay your bills?  Who will have access to your medical records so that they can make informed healthcare decisions on your behalf?  Would you want to be kept alive artificially?  These are questions that everyone should consider.

Living Will:  This advanced directive is better known as the “pull the plug” document.  It gives your doctor the go ahead to pull the plug if you are being kept alive by artificial means.

Durable Power of Attorney:  Nominate who will continue to pay your bills, have access to your accounts and be able to make other important financial decisions on your behalf should you temporarily be unable to do so yourself.

Healthcare surrogate and HIPAA Release:  Decide in advance who will have access to your medical records and be responsible for making important healthcare decisions on your behalf should you be unable to do so yourself.

In addition to these important documents, it is important to consider creating a Last Will and Testament.  This document will allow you to appoint a guardian on behalf of any minor children, direct how you want your property to be distributed and allow you to specify any burial or cremation requests.

Before you go drinking some crazy colored beer and letting loose for the night, prepare for the unforeseen by contacting the attorneys at Wild, Felice & Partners.  Call (954) 944-2855 for your free consultation or visit our website at www.wfplaw.com for more information.

It’s A Wild World.  Are You Protected? SM

What’s that you say?  You want to leave your home to a loved one?  Great!  That’s a wonderful way to leave a legacy.  Just be careful how you leave this property to your loved one.  Simply retitling the property could have harsh consequences, such as:

Gift Tax and Capital Gains:  We all know your intentions are good.  Unfortunately, the law doesn’t consider your intent when transferring property to another (i.e. retitling as joint tenants with right of survivorship).  Whether or not you intended this transfer to be a gift is irrelevant; if you did not expect anything in return of equal value the IRS will consider this transfer to be a gift and gift taxes will apply.  Additionally, when you pass away the individual will be subject to paying capital gains if they choose to sell the property.  Capital gains are profits made from the sale of property where the sale price exceeds the purchase price and can be very high.

Creditors: Like most responsible individuals you have paid your bills on time, have good credit and aren’t worried about the possibility of creditor claims.  Yet, are you aware that once you add another individual to the title of your property that the property is now subject to that individual’s creditors too?  This means that no matter how diligent you are with paying your debts, the property will never be totally secure since it remains open to the other individual’s possible creditors.

Control:  Adding someone to title means you now share rights of ownership to the property.  This means you can’t continue to treat the property as your own.  If you wish to sell it, for instance, you must have their full consent to do so.  By adding this additional name to title you have given up control as the sole owner of that property.  While you may be ok with this decision today, can you guarantee that you will be on board with this decision in five or ten years?  I sure hope you can guarantee it since you will not be able to change your mind and remove them from title without their consent.  What’s done is done.

There is another way to accomplish your goals and avoid these harsh consequences; a Revocable Living Trust.  The trust will allow you to remain in complete control of the property while you are alive, prevent possible gift taxes and capital gains.  Upon your death, the property will then be transferred to named beneficiary, therefore accomplishing your primary goal!  Call (954) 94-2855 for your free consultation and our attorneys will explain in greater detail the benefits of creating a Living Revocable Trust.

For more information on Estate Planning visit our website at www.wfplaw.com.

It’s A Wild World.  Are You Protected?  SM

• Trust – Does your trust document make a distribution to your ex-spouse? Is your ex-spouse the trustee over your assets? Do you want to put your  home in a trust to avoid homestead, ensuring your ex-spouse does not have control over it in the event that it is passed to minor children?
•  Last Will & Testament – are your children’s distributions going to made out right? Are they minors? If so, your ex spouse will likely be named guardian over the assets to which he / she will effectively have control.
• Durable Power of Attorney – is your ex-spouse designated to legally act on your behalf? Some power of attorney documents do not address whether the power terminates upon divorce.
• Combination Living Will & Designation of Healthcare Surrogate – Do you want your ex-spouse making healthcare decision for you?

Living in Florida sure does have its perks! You’re never too far from a gorgeous beach, you’re greeted with warm weather and blue skies almost daily and you can make weekly trips to Disney (if you really wanted to).  Unfortunately, being a resident of Florida also means you or your loved ones could be subjected to the state’s probate process.  When compared to other states in our country, Florida’s probate process is known to be both higher in costs and last a great deal longer.  With proper planning and funding, you can ensure your loved ones avoid this tedious and emotional process.

There are two ways in which property can pass at death: through a Will or a Will substitute. The goal for every individual should be to have their assets controlled by a Will substitute.  Some examples of Will substitutes include joint ownership of accounts, beneficiary designation, pay on death or transfer on death designations and life insurance.  These Will substitutes allow for assets to pass by operation of law to the named beneficiary, therefore avoiding probate.  A Living Trust is another Will substitute which allows your assets to pass outside of Probate.  Think of the trust as a durable safe that has been built to hold your all of your assets.  Once your attorney has built your “safe” you take it home and put it away because now you’re done, right? Wrong!  If you fail to put anything into this“safe” then nothing has been accomplished.  You must fund your trust.

Funding may seem like a scary concept since you are titling assets in the name of the trust or listing the trust as beneficiary. Have no fear! You, as grantor and trustee of your Living Trust, remain in complete control of these assets until your death.  Therefore, you can carry on as usual and continue to control your assets in the same manner.  As part of your trust based plan, you will receive an Assignment of Property, a document that will ensure that all of your personal property makes its way into your trust.  In addition to the Assignment of Property, you will also receive a Pour Over Will.  This Will will act as a safety net for any accounts you may have forgotten to add to your trust.  Beware, however, that these accounts will have to go through the Probate process before the trust will control the manner in which they are distributed.  This further illustrates the importance of properly designating your accounts and funding your trust ahead of time to avoid Probate altogether.  It should be clear at this point that funding is the final and perhaps most crucial part of the estate planning process.  Fund your trust with the assets you wish to protect and those assets will avoid probate.

If you have a trust or are considering creating a trust then know the attorneys at Wild, Felice& Partners are proud of you but don’t stop there. Take that final step and ensure your trust is properly funded so those assets remain safe and avoid Probate.  Protect yourself and your family.  Call us today for your free consultation at (954) 944-2855.

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

It’s A Wild World. Are You Protected? SM