When he was the lead mafia boss in the Soprano’s, the IRS would not be a threat to James Gandolfini; as he’d simply bribe a Federal agent, or have “his people take care of it.” But here in the Wild world of reality, only attentive estate planning keeps the IRS monsters at bay. And in this case, the only “hit” that’s taking place, is that against Gandolfini’s estate.

Gandolfini died with an estate that is currently estimated to be $70 million. While he has been a very successful man, his use of poor estate planning has resulted in a lot of grief for both his legacy & loved ones. Although he devised his property through a will to the beneficiaries of his choosing, the IRS has claimed the biggest share, weighing in at about $30 million. Furthermore, his entire will is now a public record that anyone can view, because it was subject to probate (where the court determines the validity of a will).

This estate planning (or lack thereof) catastrophe demonstrates two very critical points in strategic estate planning: (1) avoiding taxes, & (2) creating a private and smooth distribution of property. 

In terms of tax, married couples have an incredible safeguard, called the martial deduction. One of Gandolfini’s biggest mistakes was devising only 20% of his estate to his wife. Due to the unlimited marital deduction, anything you transfer to your spouse is not subject to transfer taxes, and therefore that money goes free & clear of estate taxes upon the death of the transferor (Gandolfini). When you have such a large estate, it is often advisable to include the amount in your gross estate that covers the full applicable exclusion amount (the transfer tax exemption that each individual receives upon death), which is currently at $5,250,000. Then you can transfer the rest to your spouse, and it goes transfer tax free for the time being.

So why did he fail to take advantage of a tax-free transfer? This often happens in cases where there is a child that is from a previous marriage, or a similar complicated family situation. Gandolfini has a son from a previous marriage, and therefore possibly did not want to devise all his assets to his wife, in efforts to ensure his son would be provided for. While this is a valid concern, there are estate planning strategies that can be implemented to obtain these goals, while still safeguarding your assets from excessive taxes. A marital trust is often used in theses situations. The instrument provides that the income from the trust property will be paid to the spouse for life, and then upon the spouse’s death, to the children. This could have dramatically shrunk the IRS bill that will come due in only 9 months.

On the second point, whenever you devise all of your property directly through a will, it will go through probate before the property is distributed to the beneficiaries. The problem with this is that the will becomes public record, and it’s contents are exposed for the whole world to see. This is why it is desirable to use a “pour-over will” that filters all of your assets into a trust. By doing so, you avoid the costs and grief associated with probate, and preserve privacy for yourself, and loved ones.

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.

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

Within the past several days there have been two horrific plane crashes, leading to a total of 12 deaths. On Saturday, an Asiana Airlines flight crashed while landing in San Francisco, with 307 passengers on board. Two have been reported dead, with many in critical condition. The next day an Alaskan air taxi crashed, killing all 9 passengers, as well as the pilot.

With devastating events such as these, we are confronted with the grave reminder of how fleeting life can be, and the importance of planning for the unknown. For many, such planning is for the benefit of family; while others want to keep their memories alive through good deeds & charity donations. Although we have little control over our fate; you can gain control over your legacy with the following estate planning documents:

Living Trust – gain control, asset protection, & preclusion of unnecessary taxes; ensuring asset protection for your beneficiaries.

• gifts to charities that qualify for income tax and estate tax deductions can be made through Charitable Lead Annuity Trusts or Charitable Remainder Trusts.  Furthermore, a Charitable Lead Annuity Trusts (“CLATS”) allow an individual to transfer their assets to a beneficiary upon their death who can then donate the assets to a charity of their choosing.

Assignment of Property – place all of your property into the trust, and avoid costs & headache associated with probate.

Last Will & Testament – used to distribute property to beneficiaries (or a trust), specify last wishes, and name guardians for minor children.

Durable Power of Attorney – gain control by designating someone to legally act on your behalf, in the event that you become incapacitated.

Combination Living Will & Designation of Healthcare Surrogate – gain control by making important healthcare decisions for yourself in advance.

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.

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

IN THE SPIRIT OF AMERICAN INDEPENDENCE, our nation is encouraged by the latest job market rise. The labor department’s reports have shown that the economy has added 195,000 jobs in both May & June, when analyst were projecting only 160,000.

The thirteen colonies didn’t gain independence for four hundred forty-two days after start of American Revolution. Similarly, it’s taken a good minute to find that same sense of freedom from the depressed job market in South Florida.

The Red, White & Blue’s will to overcome the job market adversity is demonstrative of the motivating force we celebrate this week. With raising job rates, its increasingly more important to keep your triumphant spirit preserved with asset protection strategies. Such strategies will not only protect your hard earned assets, but provide you with the freedom to control their disposition.

When considering your future, claim independence from the unknown, and plan ahead with the following documents:

1. Living Trust – gain control, asset protection, & preclusion of unnecessary taxes through the use of this document.

• Consider: Who would you appoint as your Trustee? Keep in mind, you can be the Trustee, giving yourself greater control over your assets. Make sure you appoint a back-up (successor) Trustee(s) within the document.

2. Assignment of Property – place all of your property into the trust, and avoid costs & headache associated with probate.

• Note: Probate is a very expensive and time consuming process, therefore most prefer to avoid it altogether by assigning all of their property to the trust.

3. Last Will & Testament – used to distribute property to beneficiaries (or a trust), specify last wishes, and name guardians for minor children.

• Note: Again, in efforts to avoid probate, it may be wise to use a pour-over will so that anything that was not assigned to the trust will be directed to the trust upon the Testator’s death. While the will still has to go through probate, the pour-over will makes the process much more expedient & leaves less room for anyone to contest it’s validity.

4. Durable Power of Attorney (“DPA”) – gain control by designating someone to legally act on your behalf in the event that you become incapacitated.

• Consider: Who will you designate to make decisions on your behalf? Remember, the DPA can only make decisions for your benefit, not their own.

5. Combination Living Will & Designation of Healthcare Surrogate – gain control by making important healthcare decisions in advance.

• Note: This outlines important healthcare decisions in advance, and appoints a healthcare surrogate to make healthcare decisions for you when you become unable to do so yourself.

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.

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

Same sex couples can now receive the fabulous feature of portability – and we are not just talking about Louis-Vuitton luggage!

Today, the Supreme Court gave DOMA [“Defense of Marriage Act”] the boot, holding that it’s 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 applies on a Federal level, and States can still refuse to recognize same-sex marriages. Here in South Florida, same-sex marriage is not recognized on a State level. However, when it comes to estate planning, DOMA’s demise has many beneficial effects for same-sex couples in South Florida; especially when dealing with Federal taxes.

Let’s talk about portability in relation to taxes. Generally, an intra-spousal transfer is not subject to transfer taxes due to the marital deduction, and there is portability of the exemption amount. This means that when “Wife” transfers assets to “Husband,” those assets are not subject to any Federal transfer tax (gift or estate tax). Furthermore, each individual receives an estate tax exemption of $5,250,000. Lets just think of it as $5,250,000 worth of cash in a bag (luggage, if you will). What if Husband doesn’t use his entire exemption amount, as his gross estate is much smaller? Well, that’s where portability comes into play. All the cash in Husband’s luggage (that he never used) is wheeled on over to Wife. She now has her own luggage full of cash, as well as Husband’s luggage full of cash; giving her a pretty substantial protection from estate taxes. This way, Husband’s estate tax exemption is not wasted, as it transfers to the Wife.

Previously, same-sex married couples didn’t receive the benefit of portability, because they failed to fall into the spousal status of Federal law. Now, following the Supreme Court’s holding in United States v. Windsor, same-sex married couples receive the marital deduction, and have portability of their exemptions.

While this is certainly a great estate planning feature for same-sex couples, you don’t want to always rely on portability. Rather, you should plan for it, as there is a Wild 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

A gun trust, also known as a NFA Trust, is a legal tool designed to address specific issues concerning the ownership, transfer, and possession of firearms and other items regulated by the National Firearm Act (NFA).

You can lawfully purchase and own NFA firearms in Florida. You do have to register these weapons with the Bureau of Alcohol, Tobacco, Firearms and Explosives (BATFE or ATF), pay a $200 tax on each one, and obtain the consent of your Chief Law Enforcement Officer (CLEO).  However, if you create a proper Gun Trust, the trust owns the NFA items. A corporation or LLC can also be used to own weapons, but trusts do not require annual taxes or filing fees, thus limiting the hassle and expense of maintaining weapons.

Some benefits of creating a NFA Trust include:

• Being able to designate trustees who will be authorized to have access to and use your NFA items and firearms.  This eliminates the danger of constructive possession by appointing the people you want to be able to access your collection.
• No CLEO approval required
• When using an NFA Gun Trust to acquire NFA regulated items, neither fingerprints nor photographs are required.  Unlike when an individual directly purchases a firearm.
• Firearms do not become a part of the public record which is searchable by all
• No annual taxes to pay to maintain a corporation or LLC; only required to pay the $200 tax stamp

Additionally, once you pass away, the NFA Trust provides rules for legally handling the items. After your death, your estate and all your belongings will likely begin the process of probate (unless you have an estate plan in place). As many know, probate is an exhausting, daunting process that could take years. Probate proceedings will be necessary to transfer your NFA guns or items to your heirs and are a part of the public record, meaning people will know exactly what your children have by searching public records right on their home computers. With an NFA Trust, you can decide which beneficiaries will acquire all or part of your collection.

Your beneficiaries will be protected and your NFA firearms will not be subject to probate or made part of the public record. The NFA Trust can have specific provisions to protect beneficiaries, such as your children, from violating the NFA and ensuring they do not receive the NFA firearms if they live in a location where it is illegal to possess NFA firearms. The trust also allows the parent to specify when the child can receive the guns (must be at least eighteen years old by Florida law).

Be sure to arm your assets with a proper gun trust.  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

Summer is finally here, and with that brings Father’s Day. Family picnics, barbeques, celebrations, and everything else that comes along with the holiday should not have you forgetting about your estate plan. The truth is, the holiday should not only be about celebrating, but should also be reminding you that it is important to protect you and your loved ones. If you do not already have a solid estate plan in place, NOW is the perfect time to create one.

Wild Felice & Partners is a full-service, Fort Lauderdale, Florida based law firm with a specialty in asset protection. We utilize a combination of estate planning, real estate, corporate formation, family law, and asset structuring to assure that our clients are protected from potential litigation, creditors, and any other threats that may be looming. A properly designed asset protection plan can accomplish many of your most important objectives:

• Protection of family savings and investments from lawsuits and claims.
• Protection against inadequate or unavailable insurance coverage.
• Insulation of rental properties reducing your exposure to potential lawsuits.
• Protection of business assets and accounts receivable from potential claims.
• Elimination of probate.
• Reduction of estate taxes.

While our South Florida estate planning attorneys have the knowledge and experience to provide the highest level of estate tax planning, our firm aims to shed the tax attorney paradigm and focus instead on the dynamic relationships between our clients and their loved ones. WFP Law realizes that estate planning is truly for the loved ones that we leave behind.

Our comprehensive estate plans include the following:

• Living trust
• Assignment of Property
• Last Will and Testament
• Durable Power of Attorney
• Combination Living Will & Designation of Healthcare Surrogate

So for this Father’s Day, utilize the holiday to protect you fathers and grandfathers, and set up a solid estate plan.  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.

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