In this article, we will discuss the set steps to forming a corporation in Florida. A business law attorney can help you with anything you need, as they are experienced in this field. Listed below is a brief overview of the steps for forming a corporation. 

How to Form a Corporation in Florida

1. Choose the Name

Your corporation’s name has to include “Corporation,” “Company,” or “Incorporated,” as well as their applicable abbreviations. Additionally, the name has to be different from other businesses that have registered with the Department of State. You can check the Division of Corporations business name database, accessible at http://search.sunbiz.org/Inquiry/CorporationSearch/ByName, to make sure your name is unique. FYI, you cannot reserve a name ahead of time. 

2. Prepare/File Your Certificate 

This is where you might need the help of an attorney. In order to legally create your corporation, you have to file Profit Articles of the Incorporation with Florida’s Department of State Division of Corporations. You can file the articles online or via the mail. The articles must have: 

• The corporation’s name
• Principle office street address
• Purpose
• Number of shares the company can issue
• The names/addresses of initial directors and/or officers
• The name, signature, and address of an agent that gets service of process
• Name/address of incorporator

3. Appoint Your Corporation’s Registered Agent

All corporations in Florida have to have agent for service of process, and that individual or company has to be listed on the articles. This entity accepts legal papers on behalf of the corporation in the event it is sued. The registered agent can be a human being, or it can be an entity authorized to conduct business in Florida. Prior to designation, the agent has to agree to accept service of process for your corporation. 

4. Create Bylaws

These internal corporation documents set out the basic ground rules about how to operate your corporation. You do not file bylaws with the state, and there is no legal requirement to have them. That said, it is a very good idea to have corporate bylaws, as they set your corporation’s operating rules on paper. This shows creditors, banks, and the IRS that your corporation is legitimate. There are plenty of sample bylaw forms online. 

5. Appoint Directors/Hold Meetings

Directors are appointed when you name them in your articles, and the person must appoint them after you form the corporation. These directors are on your board until shareholders’ first meeting. After this first meeting, directors should do the following, if applicable: 

• Appoint corporate officers
• Select a corporate bank
• Adopt bylaws
• Authorize issuance of stock shares
• Adopt an official stock certificate
• Adopt a corporate seal
• Set the fiscal year
• Record these actions in fiscal minutes 

6. Issue Stock 

Next, the corporation can issue stock to shareholders in exchange for shareholders’ contribution of cash, property, and/or services. Small corporations issue paper stock certificates, and you’ll need to enter the shareholder’s contact information and full name into the transfer ledger. In Florida, corporate stock’s default is no par value. But, if you want to establish par value, you can. Again, this is a step that would be best carried out by a business attorney, as the law can be somewhat complex. 

7. File an Annual Report

In Florida, if you want to maintain an active status, your for-profit corporation has to file a yearly report. The report’s first version is due the year after you form your corporation. File online between January 1st and the first of May. Reminder notices will be sent to the email address you have provided to the State. 

8. Get an EIN

An EIN is an Employer Identification Number. This federal number is mandatory. You can get an EIN by filing an online application on the IRS website, for which there is no filing fee. 

We strongly advise that you contact a business law attorney to help you form your corporation, as they law can be difficult for laypeople to maneuver. 

Vacation is a great time to kick back and relax, and we don’t want to rain on your parade. Unfortunately, that’s just what this article might do. Vacation and summer can be risky, and there are statistics to prove that statement. While you should definitely still go, we suggest updating and reviewing your estate plan before you leave. Make sure everything is in order, just to be safe.

Is Vacation Dangerous? 

Millions and millions of people go on vacation every year with no issues. That said, there are some interesting travel statistics to note. As it turns out, your vacation itself might not be too treacherous, as Be Travel Wise noted that between 74% and 80% of deaths overseas are caused by natural ailments like heart problems. 18% to 24% are caused by accidents, while only 2% are from infectious disease, a la Cabin Fever (just kidding!).

The holidays themselves can be a little unpredictable. AAA says that over 33% of Americans travel during the holidays, which leads to a 34% increase in car accidents. Lastly, Benenden lists slip and falls, sunburn and heatstroke, food poisoning, and road accidents as five of the “most common types of accidents” while vacationing. 

Bottom line, vacation can come with its own perils, and you need to face this risk not by avoiding vacation, but by updating your safeguards. 

What to Review 

General Recommendation 

Generally, the rule of thumb is that you should review and update your estate plan every three to five years. You should also take a look at it if you are experiencing a major life change, such as a birth, death, marriage, or illness/incapacitation. Other than that, reviewing it before you go on vacation also isn’t a bad idea. Though this might not qualify as a “life change,” it does qualify as a period of heightened risk. Below are some of the documents you should make sure to review:

• Power of Attorney. These documents appoint a trusted individual to manage your financial and/or healthcare affairs in the event that you are too sick or injured to do so. You can rest easy knowing that someone you trust is making decisions on your behalf when you are unable to.
• Healthcare Directive. This very personal document lays out your wishes to doctors and nurses for end-of-life care and other medical procedures. It makes sure your “DNR” and other orders are honored, even when you cannot communicate them. 
• Guardianship Papers. If you have minor children, these papers appoint a legal guardian to your kids if something happens to you and your spouse while on vacation. Make sure to discussed with your proposed guardian before putting them down on paper.  
• Everything Else. Though the three documents above are the most imperative in this context, it wouldn’t hurt to glance over everything else (trusts, last will and testament, etc.) to ensure that those papers are in order, too. 

What If I Don’t Have an Estate Plan? 

If you don’t have an estate plan, there is no time like the present. These plans are vital to ensuring that your end-of-life care and assets are taken care of. Talk to an estate planning attorney today to learn how to start the process. 

Though this article might seem like a bit of a bummer, estate planning is about accepting risks and facing them head-on. We’re sure you will have a great time on vacation, but it never hurts to pick up the phone and contact your estate planning attorney, just to be safe. 

Ready for a sobering reminder? It’s nearly halfway through 2022. It appears time is flying by, and soon it will be the Fourth of July. Summer is upon us, and you don’t want to wait until fall or winter to get your estate plan drafted, if you haven’t done so already. 

In this article, we’ll discuss the potential ramifications of not having an estate plan, in the hopes of motivating you to get going on this vital legal toolset. Also, if you have an estate plan, you’re not off the hook—there are some maintenance recommendations you should follow. 

Tax Issues

There is a reason that estate planning is a process often associated with the wealthy: estate taxes. Federal estate taxes only really impact the super-wealthy, as the exemption is $11.7 million. That said, inheritance and state taxes are two other matters. Estate taxes are paid by the deceased’s estate. Inheritance taxes are levied on the heirs of the deceased. Though Florida does not impose either of these taxes, you’ll have to pay quite a bit if you qualify for the federal estate tax. 

Estate planning can help you legally maneuver around these taxes through trusts, irrevocable gifts, joint accounts, and more. These remove assets from the estate, but you’ll need a plan to actually execute these documents. 

Time and Money Wasted 

If you die intestate, your estate will have to go through probate court, an expensive, time-consuming process. While your estate is in probate court, no one can access your assets and carry out your wishes. They are, effectively, frozen until the courts comb through your estate, apply laws, pay debts, and make their own decisions about how to allocate assets. In Florida, probate takes between six and nine months on average. The probate cost ranges from $1,500 to 3% of your estate’s value, depending on the size. Having an estate plan can make this process far less time-consuming and costly. 

What About Loved Ones? 

As mentioned, when you die without an estate plan, the court makes decisions on your behalf. The court does not know you or your family, and their actions might not align with your wishes. Assets might be passed to the wrong heirs or creditors. Your minor children, if you have them, will get a guardian appointed by the court. This guardian may not have been the one you would have picked. An estate plan ensures your wishes are honored to the fullest extent of the law.

Family Disputes 

This isn’t just the province of daytime court dramas or Jerry Springer. Family disputes over inheritance and wills do occur, and they can get pretty nasty. An estate plan helps prevent these conflicts (or at least ameliorate them), as the plan will clearly and succinctly lay out what you want done with your assets. 

You will be of sound mind when you create the plan, and you can communicate your wishes to your family. Let them express their feelings while you are still alive, as that will allow you to squash conflicts before they can take over the court system. An estate planning attorney is likely well-versed in settling these disagreements; he or she can help. Without an estate plan, your wishes are left up to interpretation (read: disagreement).

Maintaining Your Estate Plan 

If you have an estate plan, good job! Note, you’re still not totally off the hook. According to Fidelity, the rule of thumb is to review your estate plan every three to five years. Conversely, you should review it when there is a significant life event (illness, death, marriage, new birth, etc.). Some people choose to go above and beyond, reviewing it annually or semi-annually. 

Hopefully, this article has spooked you enough to motivate you to set up an estate plan. Without an estate plan, you won’t just inconvenience your loved ones after you die; you’ll also run into issues if you become sick or incapacitated. Contact an estate planning attorney today to learn more and get this process started. 

Memorial Day, this year in 2022, takes place on Monday, May 30th. Almost all of us have a day off of work that day, and we use that time to reflect on the many men and woman of the Armed Forces who have given their lives to protect America and its citizens. The annual holiday is a somber one, and it is very important to understanding the core what makes America what it is today.

The fallen military personnel have left a legacy that will be remembered for years. In this article, we’ll talk about legacies and how they can apply to civilians’ daily lives. 

Estate Planning and the Military 

If you are a military member reading this, you should know that the Armed Forces provides quite a few estate planning services, up to and including the preparation of documents. Military attorneys can help you with functions like power of attorney (both limited and general), wills, healthcare decisions, and more. If you want to start your estate planning process or broaden your current estate plan, you need to talk to a lawyer specific to the military. 

Tools to Leave a Legacy 

Two-thirds of Americans do not have an estate plan, according to CNBC. This shocking fact means that the majority of the population are leaving decision-making up to the state in the event that they die or become incapacitated. The court system is not prepared to handle this many people, and it is important that that number is reduced. 

To start, here are some basic documents that will help you protect your legacy in the event that you die: 

• Will. This is a final expression of where you want your assets to go after you die. In a will, you can name beneficiaries who will receive your property after you have passed on. Though a will has to go through probate, it is a good start for most estate plans. Dying intestate without a will is very damaging to your family.
• Trust. A living trust does not need to go through the probate process, and it allows you to transfer title of your assets immediately to a trustee. At a time of your choosing, such as upon your death, the trustee will transfer the asset to the beneficiary. Like the will, this is another way to preserve your legacy by ensuring your heirs get your property when you die. 
• Power of Attorney. This trusted individual makes decisions on your behalf when you are too sick to do so yourself. If incapacitated, it is important that you have someone who is able to take care of your financial and healthcare wellbeing in a responsible, effective way.
• Healthcare Directive. A “Do Not Resuscitate” command is a common one seen in a healthcare directive. This legal document lays out your end of life wishes, i.e. whether you want to be resuscitated or not and if you have any specific cultural or religious requests with regards to your healthcare. Even if you cannot verbalize the wishes because you are too sick, the healthcare directive will ensure doctors and nurses honor them. 
• Guardianship. Your minor kids will need a guardian in the event something happens to you and your spouse, if applicable. Including guardianship papers in the estate plan by selecting a trusted individual who you know will take care of your kids’ day-to-day needs.

Dealing with Familial Disputes

There is no foolproof way to ward against familial disputes about your will or any of the other legal documents within your estate plan. If someone is disappointed, then they may try to challenge. That being said, there are some tips to keeping the process harmonious and challenge-free. Here are some ways to minimize familial disputes during the estate planning process: 

• Hire a lawyer. A lawyer is the best way to ensure that your will is filled out correctly and in compliance with the law. He or she has also been around the block a few times and will know how to minimize family fights, as he or she has likely had quite a bit experience with estate planning tiffs. 
• Talk to your family. This one might seem obvious, but it bears mentioning. If a family member is shocked in a bad way, he or she might react by challenging. But, if you keep everyone updated on what you plan to do with your estate plan, they will know ahead of time. They can air their grievances, and the communication will prevent anyone from being caught off-guard.
• Prove capacity. One of the most common ways that people challenge a will or trust is by claiming someone was not of sound mind. This means that the person allegedly was unable to make sound decisions and understand the effects of those decisions. If you think a challenge to your mental capacity is possible, talk to your lawyer. He or she may suggest you get a full medical workup to answer the question of mental capacity. This evaluation could prevent your relatives from making a challenge based on capacity. 

Have a safe Memorial Day, and remember to contact an estate planning attorney if you have any questions about how to handle your legacy. 

If you’ve ever had to engage with the probate system, then you know it can be capricious and difficult. However, having a baseline knowledge of what to expect from probate court will come in handy and make the process easier. In this article, we will discuss the “Frequently Asked Questions” about the topic of probate administration. 

What is probate? 

Let’s start with the basic question of what probate is. Probate, in very simple terms, is the legal procedure through which your “estate” (AKA, everything you own) goes through when you die. This legal proceeding entails the court distributing your estate to creditors and heirs. 

What happens during probate? 

Every probate is different in some way or another, but most follow a pretty concrete, step-by-step plan. Below are the steps of the probate process: 

1. An executor or lawyer submits a copy of your death certificate. This starts the probate process. 
2. Your will, if you have one, needs to be authenticated by the court. The court ensures it has been properly signed in compliance with the law. After the court approves the will, it is “valid.”
3. The judge will then formally appoint someone (someone that you’ve probable named) as the executor. The executor will oversee the rest of the process and settle your estate. 
4. The executor will post your bond, if necessary, though that is not always required. Posting a bond will protect beneficiaries against any errors the executor makes during probate. Bonds can be pretty expensive.
5. This is the biggest task: informing creditors and beneficiaries. They need to know that you have passed so they can collect inheritances (if applicable) and settle your debts. 
6. An assessment must be completed to determine the value of your estate. Everything you own when you died will be valued, and that number will be your estate’s value. 
7. Next, the executor will pay debts and fees from your estate. 
8. Remaining assets, if there are any, will be given to the correct beneficiaries. With this, the probate process will likely be considered over.

What must go through probate court? 

Your will, obviously, has to go through probate court. If you do not have a will (i.e. if you die intestate), then everything you own goes through probate court. Regardless of what your will states, the following always goes through probate court: 

• Any inheritance where your beneficiary died before you
• Non-titled property
• Sole-ownership property
• Partner-owned investment property 

What does not have to go through probate court? 

There are some assets that avoid probate court. If you plan it right with the help of an attorney, you can help avoid a lot of the probate process, should you have these assets: 

• Items with a beneficiary named
• Items inside a living trust
• Payable on death (POD) items
• Transfer on death (TOD) items
• Jointly titled property with Survivor’s Rights 

How much does probate cost? 

The cost varies depending on where you live and how large the estate is. Court filing fees generally cost $300-$400. Attorneys’ fees vary between 3% and 5% of the value of the estate, but, again, that depends on the lawyer. 

I’m confused. What now? 

It is very understandable if you are confused by the probate process, and we have only scratched the surface of all there is to know about it. If you are confused, contact an estate planning attorney to help walk you through it. He or she will be able to guide you through this process (or avoid it), reducing stress on you and your family

Hopefully, this article has helped shed a little light on the often-complicated process of probate court. The grieving process is not easy on its own, and probate often makes things even more stressful, hence why getting a lawyer is a better idea than doing it alone. 

Questions on probate? Contact WFP Law. 

Mother’s Day is coming up soon, and the holiday, as with every year, is a chance to show the women in your lives how much you appreciate them. With Mother’s Day in mind, let’s look at some important estate planning tools that will benefit mothers especially. 

Considerations 

When you’re estate planning, your first consideration should be your family. If you have kids, how will they be taken care of after you die? Will they receive your assets? Who will be their guardian? The conversation surrounding estate planning isn’t always easy. After all, it starts with the question of illness, incapacitation, and/or death. However difficult, it is still a conversation you have to have. And, if you haven’t started yet, do it as soon as possible. 

Your Kids 

As a mom, your kids are your number-one priority (sorry, spouses). Luckily, there are plenty of tools in estate planning that allow you to keep your kids safe, even after you die. The questions of what will happen to your assets and who will become any minor children’s guardian(s) are both paramount in estate planning. 

Assets

There are many ways that assets can be transferred when you are estate planning. You want your kids to have what you have after you die, and you can accomplish that through tools like: 

• A Trust. This three-party fiduciary relationship allows you to skip probate court when transferring your assets to your kids. A trust is relatively easy to set up, and there are many different kids. people might believe that trusts are only for the wealthy, but that couldn’t be further from the truth. These financial tools are useful for everyone. 
• A Will. At the very least, you should have a will. The last will and testament is a final expression of what you want done with your assets after you die (i.e. transferred to your kids). Note, a will has to go through the probate process. Also, you do not want to “DIY” your will, as that can lead to a lot of expensive problems down the road. Always execute a will under the guidance of a qualified attorney. 

FYI, it is not advised that you name kids as beneficiaries of your lie insurance, as that can turn into a legally complex situation. After all, minors cannot directly receive life insurance proceeds, and the state will have to appoint a legal guardian if you have not done so. This is a lengthy, costly process. You’re better off naming your spouse as a beneficiary, or, if you have grown kids, one of them. 

Guardianship

If you have minor children, you will need to select a guardian for them. As mentioned, it can be a lengthy, costly process for the state to appoint a guardian, and they may not choose who you would choose. When drawing up guardianship paperwork, think carefully about who will best take care of your kids’ day-to-day needs. Talk with your proposed guardian before finalizing anything. 

End-of-Life Wishes

When estate planning, you also need to answer a few questions about what you want done if you are unable to communicate your wishes to doctors and nurses. Do you want to be resuscitated? Do you have any religious views that might require special care? Completing a healthcare directive will allow you to lay out these wishes in advance, making them valid even if you are too incapacitated to communicate them. 

Additionally, appointing a trusted individual to serve as your power of attorney is also a wise option. This person can make decisions on your behalf, again if you’re too sick to do so yourself. Picking a P.O.A. will ensure that end-of-life decisions, both finance- and healthcare-related, are made by someone with your best interests at heart. 

When you’re a mom, you have an enormous amount of responsibility. Don’t think of estate planning as adding to that burden. Instead, think of it as safeguarding you and your family for years to come. Meeting with the right attorney will make this process easier that attempting to do it alone. Contact WFP now: https://wfplaw.com