Some clients come to us wanting to give leave their assets to their favorite charity.  While some wish to leave all of it to a charitable cause others wish to leave certain properties or assets and keep the rest for their family.  Estate planning is such an amazing area of law with an array of vehicles that allow for experienced attorneys to plan for clients no matter what their needs may be.  Not only is there a trust that can accomplish this specific charitable goal but it can also provide tax deductions, asset protection and provide income for the lifetime of the Grantor- that’s you!  Meet the Charitable Remainder Trust.

The Charitable Remainder Trust is a great vehicle that will support your philanthropic side while continuing to provide for you and your family during your lifetime.  Here is how it works:  you as Grantor would transfer the property you wish to donate into the trust and designate a trustee.  Typically, the charity is designated as trustee and manages or invests your assets in order to generate some income.  You then will receive a percentage of the profits for a specific period of time that you choose -this will be laid out in the terms of the trust.  While these assets are held in trust they remain protected against unsecured creditors, allow you to earn a tax deduction and provide you with a lifetime annual income.  After you pass away, all of the assets that were held in the Charitable Remainder Trust, as well as any profits or residual interest that may have been generated, then become property of the charitable organization.  There really are no losers with this type of trust.  You win in a number of ways during your lifetime and then provide support to a charitable organization of your choosing upon your passing.  Everyone is a winner!

If you wish to protect your assets, save on taxes, provide for yourself and your family and then leave your legacy to a charitable organization then call us today for your free consultation at (954)944-2855.

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

IT’S A WILD WORLD.  ARE YOU PROTECTED?

By now, most of America has heard the sad news about the passing of both golf legend Arnold Palmer and Marlins pitcher, Jose Fernandez.  The news is yet again another reminder of just how fragile and unpredictable life can be.  Knowing that we will never have full control over our fate should push us to do whatever is necessary to protect our loved ones from the unknown.  One way we can offer our family protection is through the creation of an estate plan.  Estate planning is preparing during your life for how you wish your assets to be distributed or managed in the event you become incapacitated or pass away.  Assets such as your financial accounts, your children, your business or your real property – you can retain control over management even after death.  There are many estate planning tools to help you accomplish these goals.  Perhaps the most favorable tool used in protecting one’s assets is the Revocable Living Trust but what about the lesser discussed (but equally important) Irrevocable Trust?

An irrevocable trust is an estate planning and asset protection tool that provides creditor protection in a way that the Revocable Living Trust does not.  Upon execution the grantor relinquishes control of his or her assets, a realization that makes some clients uncomfortable.  However, it is the relinquishment of control or ownership of the assets that trigger the asset protection.  The assets will then be held in trust for the benefit of the beneficiaries and not the grantor, so any creditors of the grantor will be unable to reach these assets.  They remain safe and intact for the beneficiaries no matter what life decides to throw at you.  If the idea of losing control still seems unsettling, consider this:  you as the grantor create the terms of the trust.  You decide who will control distributions, how those distributions will be made and who will benefit from said distributions.  The Irrevocable Trust is a great planning tool for those who want that asset protection and want to have extended control.

For more information on Irrevocable Trusts or other Estate Planning tools, please visit our website at www.wfplaw.com or call (954) 944-2855 for your free consultation.

IT’S A WILD WORLD.  ARE YOU PROTECTED? SM

No Time To Take A Knee: Your Estate Plan Needs A New Formation

Estate Planning is never just “set it and forget it.” No matter what the scoreboard says, it is always important to have your estate plan reviewed by an estate planning attorney every three to five years.

Even when you are halfway through the game, and in the lead, you would never just take a knee and rely on your winning position. This applies in estate planning as well, because even when you are prepared and in a winning position, you have to keep up with the game in order to ensure your “win.” There are a variety of life events that can create a need for new strategies, which is why it is so important to have your estate plan reviewed to ensure that your game plan is still effective. There is no specific time for when you need to have your estate plan reviewed, but generally every three to five years is sufficient. However, if there is any particular life event that takes place that will affect your relationships or distributions, you may want to have your plan reviewed for alterations. Such life events include the following:

Marriage & Divorce: if you have recently married or divorced, you will want to take your current estate plan to your attorney to determine whether these life events are addressed in the documents. Furthermore, you may want to change your Personal Representative, Trustee’s, Guardian’s, etc.

Children: Sometimes your Will & Last Testament will provide for after-born children, but you should take the document to your estate-planning attorney to ensure that your little bundle of joy is provided for. Additionally, you may want to set up a trust, a 529- college plan, alter beneficiary designations in your will, and nominate a legal guardian.

Estate Size Increase: You want to make certain that your estate plans are tailored to your estate size. Therefore, when your estate increases, you may want to make some changes in terms of tax and estate planning. Furthermore, if you have an estate plan that is set up to avoid probate, and acquire new property, you will want to assign that property to your living trust. You also may want to consider a variety of estate planning strategies, anywhere from setting up an LLC to protect certain assets from lawsuits, to reducing the size of your estate for tax purposes.

Settling for “3” Instead of Going for “7” Wills vs. Trusts

Each game plan is incorporated as a means of constructing a distinct strategic advantage. The same is true for wealth management and asset protection plans. While a Last Will & Testament is an essential component of any winning game plan, it is often necessary to tackle your goals with the incorporation of a Living Trust. Look to the following game plans to determine which supplies the best strategic advantages for your asset protection goals.

Will & Last Testament Game plan: Control of Your Assets

A Will is crucial in any estate plan. This is the document that will be used to determine your intent regarding the distribution of your property. Thus, without it, all of your assets will be distributed according to State statute, which may be a departure from your own personal wishes. Furthermore, if you have any minor children, you can designate a legal guardian, thereby communicating your wishes to the court when the time comes for a guardian to be appointed. As you can see, this is the foundation of your game plan.

Will Coupled with Trust Game Plan: Control & Protection of Your Assets

This game plan combines your testamentary wishes with further protection by having the Will pour-over into a Trust. The will coupled with a trust effectively bypasses probate, which is the validation of the will — a process that is often incredibly time consuming and often expensive. The pour-over will takes all of the property that passes through the will, and funnels it into the trust. Said property is then distributed to the trust beneficiaries pursuant to the terms of the trust. A pour-over will functions to ensure that all of the decedent’s property is transferred to trust. Think of the pour-over will as a safety net that catches all of the assets that were not properly transferred into trust. All the contents of the net are then poured into the trust, ensuring that all of the property is ultimately distributed through the living trust. Furthermore, all of the decedent’s property is distributed by the terms of one document alone (the trust), allowing for simplicity and clarity.

You need a Last Will & Testament in every winning succession game plan; however, combining it with a Living Trust may be one of your most important strategic advantages! It’s a Wild world. Are you protected?

Did you know that Florida has one of the worst Probate systems in our country?  Not only will a percentage of your assets diminish during the process but your loved ones could have to wait well over a year before receiving anything.  This is why it is important to understand the process and plan accordingly.

Probate is the legal process of proving a Will in court.  Unless you own assets jointly (which will pass by operation of law) or have a Will substitute in place (such as a Revocable Living Trust) all of your assets must go through the Probate process.  The type of probate administration that will be required will be determined by the size of your estate.  An estate that is worth less than $75,000 would require a Summary Administration.  This type of administration is less costly to your family but could still take up to a year to complete.  If your estate exceeds $75,000 in assets, then a full probate administration will be necessary.  A full administration could very well last for over a year and can be very costly.  Your family may be faced with extreme financial burden and stress during a time where they should be focused on healing.

Probate offers no real benefit to the family members that are left behind.  Instead, it can cause a great deal of stress which is why you should consider avoiding it all together.  Probate avoidance can be accomplished in a number of ways.  As previously mentioned, any assets that pass by operation of law will not be subjected to probate.  This would include property held as husband and wife, property held as joint owners with the right of survivorship, accounts that are held jointly and so on.  One of the more popular ways to avoid probate is through the creation of a Revocable Living Trust.  All assets held in trust will avoid probate and pass directly to the listed beneficiaries.  A trust has additional benefits too, such as setting limitations on when your beneficiaries will receive their share.  It allows for you to have control from beyond the grave, avoid probate and could save you on estate taxes.

Be proactive and eliminate the possibility of probate from your future.  Call the office of Wild, Felice & Partners today for your free consultation at (954) 944-2855.

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

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

Estate Planning For The College Student

For parents and students, the commencement of a new school year is much like what January 1st is to everyone else: Looking back on the recent life events and choices, while looking forward to the lofty ideals of what lays ahead – a fresh start to the “new” year. In the inception of the new school year, it is time to consider whether you are sporting an old, and less effective, estate plan. Explore your current status, and determine if you are properly prepared for tomorrow. Estate planning isn’t just for the “old & wise.” In fact, the “young and foolish” can start their ascent into wisdom by taking a look into the future, and being prepared for what is looking back! Clearly, the last thing on a young adult’s mind is designating a personal representative, and deciding whom to give their borderline non-existent fortune to. However, at such a young age, the goals of estate planning are not ripe, they are just different. For example, Junior should be less concerned with who will be inheriting his baseball card collection and Xbox, and more concerned with how his digital assets will be treated (preserved, closed, etc.), or who will be his power of attorney and/or Healthcare Surrogate. Standard college student estate planning goals can be achieved with the following documents. Durable Power of Attorney (DPA): this document is going to designate someone to take care of “business” in the event of incapacitation or death. Any financial decision or situation where the college student’s authority is necessary will require a power of attorney to step in their shoes. Furthermore, it can be useful for convenience alone. Lets just say the college student is studying abroad, and wants her parents to take care of her affair while she is gone. When Junior reaches the age of a legal “adult,” he has to authorize his parents to make decisions for him. Combination Living Will & Designation of Healthcare Surrogate: this is a very important issues for young adults, as many are surprised to hear that their parents may not be able to make health care decisions for them or access their health records. Therefore, the college student will want a living will & designation of healthcare surrogate in place, as well as HIPPA authorization, to ensure that a trusted person or parent(s) can make medical decisions on their behalf. Digital Assets Will: Today’s college student will have a lot of digital assets (social media accounts, banking accounts, school accounts, etc.). Therefore, it is often helpful to have a will in place that directs the proper administration of such accounts and assets. For monetary accounts, you may want to leave specific instructions, including the account information, and how you want the account to be closed or maintained. For sentimental accounts (social networking, photos, blogs, etc.), your main concern will be minimizing the hassle associated with loved one’s accessing your accounts, or having them closed in a manner that will preserve your privacy. Furthermore, the college student may want to consider a basic pour-over will and living trust to avoid the hassle and time associated with probate. A lesson to those who are proceeding down the path of collegiate wisdom – plan ahead!