When Relationships End…

Over the Fourth of July weekend we found out that it’s over for Scott Disick and Kourtney Kardashian.  Kardashian, 36, and Disick, 32, shared nine years and three children together despite the fact that their relationship was frequently strained by Disick’s drinking problem, partying ways, and his regular stays in rehab including one earlier this year. I bet we all saw that one coming!

The early stages of a romantic relationship and marriage are usually of joy and happiness.  When a couple gets married there is little time to contemplate the possibility that maybe someday the relationship may fail, but it can! (Just ask Kourtney Kardashian). Nobody likes to think about that possibility and for the most part, couples trust each other with everything including their assets, even when those assets that are non-marital, that is, the spouse owned the asset before entering into the marriage.  The act of mixing non-marital and marital assets (like joint accounts or transferring title of solely-owned property to the marriage) is called “co-mingling”.

The problem that arises when one co-mingles marital with non-marital assets is that in the event that the relationship does fail, equitable distribution may be required and this may mean that a person who did not intend to give up ownership of non-marital assets may end up losing half of their interest in them because he or she failed to keep them separate.  Don’t make this rookie mistake!

Failing to keep non-marital assets free from mixing with marital assets creates a presumption that a gift was intended to the other spouse and the burden is on the person that co-mingled non-marital funds to overcome this presumption.  Establishing a trust and transferring to it assets that are non-marital, is a great way to keep them protected from the reach of an ex-spouse and by managing it in such a way that marital assets are never transferred into the trust. A Prenuptial Agreement is another commonly used and effective method to protect non-marital assets.

There are other alternatives to ensure that your non-marital (and marital) wealth is protected, but you must seek legal counsel to make sure you can take advantage of all the options available to you. Our firm specializes in wealth and asset protection and can help by providing you with more detailed information and tailored strategies to meet your individual needs.

It’s a Wild world. Are you protected? SM

For more information on successful Florida estate planning and asset protection techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 to schedule your free consultation.

Last week, the Supreme Court made same-sex marriage a constitutional right.  That means that no state can unilaterally deny same-sex couples the right to marry. In a previous decision the Supreme Court gave DOMA [“Defense of Marriage Act”] the boot, holding that its definition of marriage (limited to a union between one man & one woman) violates the guarantee of equal protection provided by the Fifth Amendment. Keep in mind, this only applied on a Federal level, and States could still refuse to recognize same-sex marriages. The most recent case, Obergefell v. Hodges, which was decided last week, extends this protection to same-sex couples under the fourteenth amendment which applies at the state and local levels of government. Here in South Florida, same-sex marriage was recognized only recently.

Same-sex couples now enjoy the benefit of holding property as tenancy by the entirety, which is a benefit Reserved for married couples; each spouse owns 100% of the property.  One spouse cannot transfer it without the agreement of the other.  Any bank account, for example, in the name of 2 married persons is considered to be held as tenancy by the entirety unless otherwise specified in writing.  Also, any creditor of one spouse alone can’t go after any asset held by the entirety to satisfy a debt.

Another benefit that is now available to same-sex couples is the elective share option, which means that if a spouse is cut out of the will, he or she can exercise the elective share, which entitles the person to 30% of the estate regardless of whether the decedent included the person in the will.

401K funds can now be transferred upon death to a same-sex spouse, which was not possible before, if the state did not allow same-sex marriage.  The Supreme Court Decision now extends the homestead protection to same-sex couples as well, that is, the surviving spouse automatically receives at least a life estate interest in the property of the decedent spouse (the surviving spouse can automatically live in the marital home for the rest of his or her life), which was not possible before in a state that did not provide for same-sex marriage.

While these are certainly great estate planning features for same-sex couples, you don’t want to always rely on automaticity. Rather, you should plan for the future of your spouse and children if you have them, as there is a vast array of estate planning techniques that will ensure your receive all of the benefits of the law.

For more information on successful Florida estate planning and asset protection, contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 or via email at mwild@wfplaw.com to schedule your free consultation.

It’s a Wild world. Are you protected?SM

While Jurassic World may be a big hit at the box office, your estate plan won’t be a hit if it was created millions of year ago. As we all know, life is constantly evolving…people get married, buy houses, have children, get divorced and become “extinct.” During all of these changes it is important to be certain that your estate plan is updated.

The following are just some examples of when to update your estate plan and why:

Marriage

Whether it is your first marriage or any subsequent marriage, it is imperative that you update your estate plan. A spouse does not automatically become your beneficiary. In fact, your spouse may only get ½ of the estate or end up accidentally disinherited completely.

Children

If you don’t have someone named in your Will to act as your child’s guardian, the court will appoint one for you. Do you really want the court to make such a vital decision?

Additionally, setting up a revocable or irrevocable trust will set aside assets so that your children may be cared for throughout their lifetime.

Divorce

Perhaps after years of marriage you have discovered your ex-spouse is akin to a velociraptor. Contact your estate-planning attorney immediately. It is likely your spouse is named within your plan as a power of attorney and health care surrogate. You’ll want to have that changed. Additionally, you may have him or her as a beneficiary of a trust, retirement plan or insurance policy.

Increase or Decrease in Assets

As your estate grows, you may want to update your plan so it reduces your estate taxes. Depending on the growth or decline of your assets, your plan should reflect that.

Other

Your power of attorney or trustee is unable to serve.

It has been over five years.

You moved to another state.

Federal or state estate tax laws changed.

The list goes on and on….

If you are wondering whether you need to update your estate plan, contact Michael Wild for a free consultation. He will take a look and let you know if the process is necessary.

Contact us at 954-944-2855 or at www.wfplaw.com

It’s a Wild world. Are you protected?