A special needs trust is designed for beneficiaries who are disabled, either physical or mentally. It is often viewed at as a stand-alone document that can be included in a Last Will and Testament or a Revocable Living Trust.

Special Needs trusts can provide benefits far beyond a traditional trust, addressing the specific needs of that disabled family member. Some of these benefits include supplemental security income, Medicaid, vocational rehab, and subsidized housing to name a few.

If the beneficiary lacks the legal capacity to handle his/her finances, an administrator, whether a private trust run by family members or by trustees appointed to the court, can hold and manage property intended for the beneficiary. In additional to the unlimited amount of assets a Special Needs Trust can provide, it can also protect your beneficiary should they encounter a lawsuit. Trust funds are not subject to creditors or seizures, and are not subject to judgment.

It is important to keep in mind that when a child turns 18, they are presumed to have the legal rights of adults, no matter their condition.  Therefore, parents and guardians should make a valiant effort to learn about all the different options for their beneficiary and seek legal counsel. It is important to remember that if you wish to set up a special needs trust, you need to do so with an attorney familiar with this area of law. A poorly written trust can be ineffective if not written properly.

To learn more about special needs trusts or discuss other estate planning options, contact Michael Wild of Wild Felice & Partners in Plantation for a free consultation.

With most major TV shows off the air until the fall, viewers have been forced to find escape with other programs. Whether you’ve watched with a significant other or its your guilty pleasure, all of us have seen some incarnation of The Real Housewives. Aside from being an opportunity to watch older women get drunk and yell at each other and occasionally throw a prosthetic limb across the table (as happened on this week’s New York finale), these Bravo soap operas demonstrate various situations in which estate planning & asset protection are needed, because sometimes, life resembles a soap opera more than we’d like to admit. Although only one of the many Housewives series occurs in Florida, all the situations will be discussed through the lens of the relevant Florida law because that is what concerns you.

While estate planning is often about who gets what after you are gone, it is also about protecting your assets for your beneficiaries and for yourself during life. Take Real Housewife of New York Sonja for example. Due to a series of events not worth enumerating here, Sonja has found herself in bankruptcy, with a trustee now in control of her assets, including her home. While Sonja would likely have homestead protection in Florida, there are other steps she would be able to take to protect some her assets as well. Retirement plans, such as IRAs and 401Ks are creditor protected, as well as assets owned jointly by husband and wife (assuming the debt is only against one of the parties.) An irrevocable trust is also a way to protect your assets, but in exchange for such protection, you are required to give up control over the assets. In fact, this is what allows you to protect the assets because they are no longer yours. Irrevocable trusts allow you to give assets to your kids or other descendants and protect those assets from creditors.

Trusts are primarily used in estate planning for the two main reasons of avoiding probate and protecting assets, but trusts can also serve specific purposes, such as in the situation of a special needs trust. On Real Housewives of Miami, viewers were saddened by the news that Alexia’s son suffered a traumatic brain injury following a car accident. Thankfully, he has made great strides in his recovery, but he continues to require therapy in order to overcome the injury. A special needs trust can be intimidating because of the name, but clients should not let that deter them. Special needs trust can either be first party or third party trusts and serve two major purposes: protecting and controlling assets for those who can not make their own financial decisions, and allowing the beneficiary to still qualify for government benefits if they need to. Do not use an attorney who does not have specific experience with special needs trust. Our attorneys have drafted many special needs trust and can work with you to make sure the trusts achieves everything you desire.

The series demonstrating the biggest need for estate planning and asset protection is The Real Housewives of New Jersey, with tabloid celebrities Theresa and Joe Guidice. Like Sonja, the Guidices face bankruptcy, but they also face numerous fraud charges. Because of this, the typical asset protect techniques would not work. The Guidices situation is one that requires more bankruptcy and tax attorneys than Sonja’s case, but where the Guidices do need estate planning is with their young daughters. Both Theresa and Joe are facing jail time and should therefore make a guardian provision for their daughters. Hopefully you are not facing jail time or deportation, but so long as you have minor kids, you should do a guardian provision. This allows you to decide who will take care of them should anything happen to you and your spouse. Even if you are using a trust based estate plan, a will allows you to include the guardian provision in addition to funneling your rema

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

Take a look at how family is often presented in the media. What do we see? It’s a husband, a wife, two or three kids, and probably a pet. The grandparents, still happily married after all that time, stop by for Thanksgiving dinner, pie under their arms. Sounds like something right out of a Publix commercial. If Flintstones and the Jetsons are any indication, this family set-up has been around since the age of cavemen and will be the norm long into the future. Estate planning for such a family dynamic is quite straightforward. But is this family really the norm? With a national divorce rate hovering around 50%, probably not. In actuality, you probably don’t have the “perfect” family set-up of yesteryear’s media; instead, you need estate planning for your modern family. Since we all differences between our family structure, let’s look at some examples from everyone’s favorite Modern Family: the Pritchetts.

            What would happen if Jay were to somehow die without an estate plan? Well, first, let’s first assume that the family has all moved from California to Florida between the seasons and is now domiciled here at the time of Jay’s death. If he has no will, not even one executed in California (Florida would recognize a validly executed out-of-state will), then the Florida intestacy statutes control how the estate assets are distributed. Since Jay would leave behind a surviving spouse and two kids from a previous marriage, his wife Gloria would receive half of the estate. The other half would go to Jay’s descendants in equal shares. How this remaining half of the estate would be divided depends on whether Jay adopted Gloria’s son from a previous marriage, Manny. If Manny has been legally adopted, then he is Jay’s child by law and can inherit. Otherwise, he would receive nothing. Assuming that Jay did adopt Manny, then Mitchell, Claire, Manny, and baby Joe would each receive an eighth of the estate. Intestate succession in Florida is “per stirpes” which means each decedent receives an equal share. How many children a descendant has does not affect the share he or she will receive. This means that if Claire passed away before Jay, her three kids would each receive an equal share of the eight she would have inherited. Mitchell’s daughter would receive his full eighth share.

            But as we all know, Jay isn’t the type of person to let something as important as estate planning pass him by. Rather, Jay likely had an estate plan in place years ago, and has updated it with every major life event since (his remarriage, his son’s adoption of a child, his son’s marriage, and the birth of his new son). Jay, who built his company from the ground up, would likely want to protect and control his assets for as long as he could. Therefore, he would likely use a trust based plan for his estate distribution. A trust based plan would give him multiple advantages over a basic will. First, Jay would want to leave a great deal of money to his wife Gloria. However, Gloria is already on her 2^nd marriage and is much younger than Jay and will not stay single for long. If she were to get remarried, a large portion of Jay’s assets could end up with her new husband. A trust fund would prevent anyone other than her and later her children from getting the money. Trust funds would also be the best way to give money to both of his minor sons. Jay could name the trustee of his choice to manage the assets until an age where each son is ready to become their own trustee, such as 25 or 30. Trusts would also allow Jay to give money to his two grown children, Claire and Mitchell, while protecting it from their respective spouses, who Jay is not the biggest fans of.

            Claire and Phil, both successful businesspeople, likely have an estate plan in place as well to protect their three children. With two minor children, the couple would be smart to have guardian designations in their estate plan. The two of them would also likely follow Jay’s lead and have a trust based plan. Haillie has yet to show the necessary maturity to manage her own funds and her judgment with men could be described as questionable. Putting her inheritance in a trust fund and setting an age at which she would have full control over it will help to protect the funds while she becomes responsible enough. The same logic applies to their youngest son, Luke. While middle child Alex has demonstrated responsibility and maturity throughout her teen years, she is still a minor and would need a trustee to manage the funds until she becomes an adult. Phil and Claire could require that the children never get to control their own funds, putting a corporate trustee or even their lawyer uncle Mitchell in charge of distributing the funds. The use of trusts funds allows for maximum inheritance protection, but from outside creditors and from the beneficiaries themselves.

            And what of Cameron and Mitchell’s estate planning? As a same-sex couple, estate planning is especially important. The couple was legally married in California, but Florida does not yet recognize same-sex marriage. Therefore, while the couple can receive federal benefits as a married couple, they do not receive any under state law and will not be viewed as married for state intestacy laws. Cam and Mitchell should follow in what is becoming a family tradition and use a trust based plan, though the reasoning is different for this couple. Wills must be probated in court before estate property can be distributed and are public documents. A trust is private; the court is not involved. Cam and Mitchell would be smart to avoid the risk of having their will in front of a conservative judge. Cam and Mitchell should use what is colloquially referred to as “I love you” trusts, where the decedent leaves everything to the surviving spouse, and down to their daughter Lilly. The trusts mirror each other, maximizing the ease of administration and assuring maximum protection for the beneficiaries. Cam and Mitchell’s estate plan should also name a guardian for Lilly, a minor, in the event that they both pass before she is an adult.

            These are just a few of the many situations that can occur with today’s modern families, but it shows just how intricate estate planning can be. Just within this one family, three different approaches were used. Even though each family ended up in a trust based plan, each plan is different, personalized. And that is what you deserve. Don’t find yourself with an estate planning attorney who only cares about taxes, or one who will just cut and paste your name in a form he’s already used countless times.

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

Yesterday, one day before the anniversary of the Supreme Court’s DOMA ruling, we saw more steps toward marriage equality, with judges in both Indiana and Utah ruling in favor of same-sex marriage. A federal judge found Indiana’s ban on same-sex marriage to be unconstitutional, while a federal court of appeals in Utah upheld a previous ruling that the state’s ban on same-sex marriage was unconstitutional. While both of these rulings represent a continued trend toward marriage equality (all federal district courts have ruled the same way on the subject) and are cause to celebrate, Florida still does not recognize same-sex marriage. This stance makes it of particular importance for same-sex couples to prepare and create a comprehensive estate plan to make sure that their partners are taken care of and afforded all the possible rights under the law.

The estate of any resident who dies in the state without a last will and testament will be distributed according to Florida intestacy laws. While this is never the ideal way to distribute estate property, it is particularly troublesome for same-sex couples. Florida law says that the estate goes first to the surviving spouse. Since Florida does not recognize same-sex marriage, the estate would go to family members instead of your partner. Having a will can assure that your assets go to your partner as you say, rather than to who the state says.

A trust based estate plan is always a favorable option, given its control flexibility, creditor protection, and ability to avoid probate. Trusts may be even more important to same sex couples in that they are private documents and they do not have to go in front of a judge (given the state’s stance on same-sex issues, avoiding the court as much as possible is ideal.) Not only does a trust based estate plan assure that your partner receives his portion of your estate just as with a will, it gives you more control over who gets your assets than just the first disposition. With a trust, you can give everything to your partner, and then control where it goes after that. Sadly, we’ve seen cases where family has not been accepting of the relationship. With a trust, you can make sure that instead of your assets going to a relative you are not close with, it can go to close friends, other family, or even the charity of your choice. A trust will also make sure that the assets your beneficiaries receive are protected from creditors.

Another pressing issue for same-sex estate planning in Florida is guardianship. Since 2010, same-sex couples are now able to adopt children in Florida. All couples in the state with minor children should designate in their will or in a guardianship form filed with the state who the child’s guardian should be. Absent a guardian designation, the courts would determine who the child’s guardian will be. Don’t leave such an important decision up to anyone but you and your partner; make sure your estate plan names a guardian if you have a minor child.

Finally, you should be sure to designate a healthcare surrogate and power of attorney to make medical and financial decisions for you in the event of incapacitation. To assure that your medical surrogate can make the most informed decisions regarding your health, you should also sign a HIPAA release form that allows your partner (or whoever your surrogate is) to see your medical records.

As more and more states recognize same sex marriage, we hope that Florida soon follows suit. Until then, make sure that you have a proper estate plan in place from a firm that works with same-sex planning.

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

Today marks the five-year anniversary of Michael Jackson’s death. Though the King of Pop left a huge mark on the music industry, with 13 Grammy awards and a record setting 26 American Music Awards, he will also be known in legal circles for the mistakes he made with his estate planning. As far as celebrities go, Jackson did more estate planning than most. He had a will and he also set up a living trust. However, Jackson failed to adequately fund the trust, meaning he did not transfer his assets into it. You can think of a trust like a safe. It doesn’t matter how great the safe is if you don’t put anything in it. The funding caused an issue for Jackson’s estate as it created ambiguity in ownership, allowing the usually private trust documents to become public record in probate court.

 Since he is gone, Jackson will never have the chance to fix his mistakes and change his estate planning. You, however, are lucky. You don’t have to be a megastar like the King of Pop to benefit from estate planning, and looking at where Jackson went wrong, you can learn from his mistakes. When done properly, a will and living trust pair well together. As previously stated, a trust is a private document, but a will is not. Therefore, the use of a pour-over will can be used to maximize your privacy while assuring that all your assets make it into your trust. By making sure that your trust is properly funded with an assignment of property and a pour-over will, you will be able to avoid probate (in turn keeping your estate matters private) and provide asset protection to your beneficiaries.

Jackson’s trust mistake also led to the question of who owned the estate’s share of the business that owned many of The Beatles’ songs. If you own a business, business succession planning should be part of your estate plan. Through a combination of life insurance, business forms, and agreements, you can plan for exactly what happens to your business at your death and help to make sure that the business lives on after you are gone (or that your beneficiaries are compensated, depending on your goals.)

One thing Jackson did right that all estate plans with minor children should have is that he named a guardian. When you and your children are older, a guardian isn’t important, but it could change the life of a minor child. If you and your spouse were to die on the way back from a nice dinner or on your way to an anniversary trip, who would look after your children? This is a major reason why younger people should take the time to look into an estate plan now.

Michael Jackson is one of many celebrities who have made mistake planning mistakes, but you don’t have to follow them. Look at proper estate planning today.

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

This is no “yo-mama” joke – Single Mother Breadwinners are bringing home the bacon!

A new report shows that 40 percent of all households with children (under age 18) include mothers that are the primary or sole breadwinner for the family. The Pew Research Center reported that in the past five decades, breadwinner moms have increased by almost 30 percent! Furthermore, the research shows that 63% of these lady-breadwinners are single mothers.

Although these single mothers are bustling about to bring home the bacon, fry it in a pan, and serve it to their children before they rush back to work; one important step should not be overlooked – estate planning.

It may seem like there is no time for the breadwinner to collect the crumbs for future planning, but the benefits of safeguarding your “bacon” outweigh the hassle. Single Mother Breadwinners (“SMB”) of South Florida should pay close attention to potential issues when creating an estate plan.  Such issues include (but are not limited to):

• Guardianship – if there is no other parent involved, it is important to appoint a primary guardian – the individual who will have custody of your minor children. Creating a will that appoints a guardian will ensure that your child’s interests are protected according to your wishes.
• Trusts – a trust is valuable for many, many reasons.  They protect your assets while providing for your minor children. Regardless of whether the SMB has a truck full of Wonder Bread or a jar full of crumbs, she may not want her minor children to receive her assets outright. Rather, she can use a trust, appoint a trustee, and be certain that her assets are being managed and distributed appropriately.
• College Planning, The 529 Plan – a 529 plan allows you (or really, anyone) to contribute to an account that is not subject to federal taxation to save for your child’s college education. There is no age limit for when the plan can be used, and it can roll over to another family member. The SMB can have control and appoint a guardian/trustee to manage it upon her death.

It’s a Wild world, Single Mother Breadwinners. Are you protected?SM

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