Most people would probably be ecstatic to learn they inherited a $65 million Robert Rauschenberg bald eagle sculpture. However, the excitement can easily deaden when there’s an additional surprise attached- an astronomical $29 million tax bill!

That’s what happened to Nina Sundell and Antonio Homem, the children of Illeana Sonnabend, a prominent New York art dealer who left her children the majestic “Canyon” masterpiece. The 20th century artwork was initially valued at zero because it cannot be legally sold. Federal law prohibits the sale of a live or in this case, a stuffed bald eagle. Mrs. Sonnabend and the creator of “Canyon” managed to bypass this restriction, but the heirs are not so lucky. The IRS has appraised it at $65 million and slapped on an extra $11.7 million in penalties for the allegedly inaccurate appraisal.

The heirs have already paid over a staggering $471 million in federal and state estate taxes for the billion-dollar art collection. Approximately $600 million worth of art has already been sold to pay the taxes owed. However, the heirs are drowning in a financial mess because they cannot afford the taxes on the sculpture.

Such a nightmare could have been avoided by planning ahead.

In South Florida, proper estate planning and the utilization of appropriate measures in wealth transfer can protect assets and reduce estate taxes. We can’t avoid the tight grip of the IRS, but we can reduce the burden of exorbitant taxes with a little smart planning from your South Florida estate planning attorney. Make a smart, bold move and contact your attorney today.

If you have family, friends or even a charitable intent, the absence of an estate plan is inexcusable. For more information on successful Florida estate planning and probate techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.

It’s a Wild world. Are you protected?

Let’s hope it would more likely parallel a movie titled “The Fall of the Estate Tax”.

In this nonexistent film, a legendary Caped Crusader would instead use his intellect and detective skills in fighting high taxes for economic welfare.

Since we live in reality, the best way to reduce Federal estate tax is to keep abreast of new legislation and take advantage of every given opportunity.

Think of tax-free gifting as the bat-mobile in achieving this goal, especially for large estates. The annual exclusion gifts for 2012 are set at $13,000 per person, per recipient. The federal applicable lifetime exemption for transfers has increased to $5.12 million per person, which is the highest exemption thus far. There are also
gift and estate tax charitable deductions and also marital deductions to strongly consider. Maximizing all these incentives is smart planning. Over the long run, you can transfer significant sums of money out of your estate along with any appreciation, thereby reducing the tax.

Did you know that Forbes magazine listed Batman, aka Bruce Wayne, as the 9th richest fictional character with an estimated fortune of $5.8 billion? BusinessWeek named him as one of the ten most intelligent American superheroes. You can bet Gotham’s finest would be spending hours in his Batcave strategically gifting assets from his estate plan.

However, lucky for the rest of us, we have our highly qualified South Florida Estate Planning Attorney.

If you have family, friends or even a charitable intent, the absence of an estate plan is inexcusable. For more information on successful Florida estate planning and probate techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.

It’s a Wild world. Are you protected?

World famous painter Thomas Kinkade, knew how to capture an admiring fan base through his use of saturated pastel colors and idyllic, peaceful gardens, stone cottages, and lighthouses. After all, about 1 in every American home showcases a copy of his artwork.

However, this “Painter of Light” precipitated a dark, legal dispute over his multimillion-dollar estate following his death early April of this year. The legal battle is between Kinkade’s wife Nanette, of thirty years and his mistress, Amy Pinto-Walsh of 18 months. So who gets his legacy?

Ms. Walsh was with the painter in Monte Sereno, California on the night of his death when he overdosed on alcohol and Valium at the age of 54. Nanette was in the middle of divorce proceedings that had not been finalized. A joint estate plan with his wife has been set up with no mention of Amy. Yet, the paramour has produced two recent, handwritten documents claiming Kinkade had written leaving her his mansion and $10 million to establish a museum for his original artwork.

The problem is that both documents, although signed, are scrawled and barely legible. Apparently, the signatures on his marriage separation papers are much clearer. Needless to say, the wills are now heavily contested. A hearing is set for July 2 in probate court for review.

California recognizes such non-attested holographic wills so Ms. Walsh may have a shot.

However, Florida does not. Florida law requires certain formalities in order for a will to be considered valid. For example, the testator must sign the will at the end, or have a proxy sign on his behalf and in the presence of two witnesses. In addition, the testator must have the intent and be of testamentary capacity at the time the will is executed.

Florida would not recognize the holographic wills allegedly written by Kinkade because it does not adhere to the required formalities. Wills that are recognized can also be challenged on several grounds. In Florida’s probate courts, the validity of a will, under this Kinkade scenerio, could be contested on grounds of forgery, lack of sound mind, duress or undue influence.

Don’t make the same mistake like Thomas Kinkade by painting an ugly, legal mess for your heirs and beneficiaries.

Instead, draft your Florida Last Will and Testament with the artistic precision of a careful painter’s brush strokes by consulting your South Florida estate planning attorney today.

If you have family, friends or even a charitable intent, the absence of an estate plan is inexcusable. For more information on successful Florida estate planning and probate techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.

It’s a Wild world. Are you protected?

In the words of Penn State’s late football coach Joe Paterno:

“Success without honor is an unseasoned dish; it will satisfy your hunger, but it won’t taste good.”

Paterno’s family have discovered yet another unsavory situation. Their unsuccessful attempt at sealing his will from public view has left them with a bitter aftertaste. They have finally realized that a will, regardless of celebrity status, is a document that must be submitted for probate and consequently, becomes public record.

If they wanted to satisfy their palate for privacy, the assets should have been transferred to a living trust or revocable trust. In South Florida, trust formation eliminates the need for probate and does not become public record. The decedent’s net worth and the identity of beneficiaries remain protected from snooping, unwelcome eyes.

However, transferring assets into a trust does not necessary mean you should not have a will in place. What if you unintentionally left out an asset? Do you have minor children? Drafting a proper will ensures all your assets are accounted for and that a guardian is appointed to care for your children in the event you pass away.

Now that Joe’s 1997 will and 2012 codicil are available for our entertainment, apparently there is nothing particularly special or scandalous surrounding its contents.

But what does raise a brow or two is why his family thought they could hide the document from Nittany Lions or the rest of the world.

If you have family, friends or even a charitable intent, the absence of an estate plan is inexcusable. For more information on successful Florida estate planning and probate techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.

It’s a Wild world. Are you protected?

Well… at least the team’s multi-billionaire owner is.

Miami Heat fans, when not preoccupied with Kevin Durant or silenced by LeBron James’ basket moves, are well acquainted with Micky Arison, probably the richest man in Florida.

Also the CEO of Carnival Cruises, Micky is no stranger to the concept of estate planning. Did you know that his father, Ted Arison, co-founder of the Cruise Lines, went so far as to renounce his citizenship in order to avoid paying estate taxes?

In 2003, the Arison family sold more than $100 million of Carnival stock in order to reduce their controlling stake in the company and diversify their investments as part of an estate and tax planning strategy.

Micky has even formed the Micky and Madeleine Arison Family Charitable Trust with a philanthropic commitment to the University of Miami as well as Miami’s City Ballet, Children’s Museum, Art Museum, and the American Red Cross.

Arison has been described as a very competitive person who hates the prospect of losing. Yet, the business of owning a professional sports team can cause serious financial difficulties for surviving family members after the death of its owner. In 2009, Micky probably stayed afloat with the news surrounding death of Bill Davidson, majority owner of the NBA’s Detroit Pistons, whom the Miami Heat just happened to defeat in the 2006 NBA championship.

Davidson’s spouse Karen, inherited the team through a complex series of trusts along with her two adult children. She contemplated selling the team to a private equity investor, which was consummated last year. It was speculated that although the estate was worth billions, she would not owe any estate tax. However, after her death, her children would be left to pay Uncle Sam’s hefty tax bill.

It would not be surprising if Micky has already engaged in smart business succession planning by accounting for the Miami Heat in his estate plan in order to save his family from the bullets of heavy taxation.

However, the core of estate planning is in actuality, not about how much money you make. It’s really about protecting your loved ones, regardless of your income level or age.

We already know what the man behind the Miami Heat is doing to solidify his estate plan.

The question now remains… what are “you” doing about yours?

If you have family, friends or even a charitable intent, the absence of an estate plan is inexcusable. For more information on successful Florida estate planning and probate techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.

It’s a Wild world. Are you protected?

Coaches might now think twice before telling players that getting their bell rung is a badge of courage.

Currently, over 2,000 football players have filed class action lawsuits that have now been consolidated into the biggest concussion-related lawsuit against the NFL. Former players contend that the NFL concealed information that linked football-related head trauma to long-term brain damage. The plaintiffs claim the league should be liable for the care of those suffering dementia, Alzheimer’s disease, and other neurological conditions.

NFL’s linebacker and no stranger to the Miami Dolphins, Junior Seau, seems to have offered himself up as human evidence. There are strong suspicions that the “Tasmanian Devil” shot himself so that his brain could be studied for possible damage due to chronic traumatic encephalopathy.

Although Seau was not a plaintiff in the filed lawsuits, his estate could benefit from the NFL paying a claim. Let’s imagine for a minute that Seau was a resident of Florida and had not committed suicide. In the case of wrongful death, under the Florida Probate Code, the appointed personal representative of his estate would bring action against the league and seek recovery of damages.

For the average Joe watching Seau from the stands or from home; his or her personal representative would most likely bring a wrongful death claim from an incident of negligence arising from a car accident or medical malpractice. The validity of such a suit would be determined and settlement negotiations made. Consideration would be given regarding the costs and benefits of prolonging probate administration.

In Florida, regardless whether the decedent was a football pro, the personal representative is solely responsible for decisions regarding the estate and must be represented by an attorney unless he or she is the sole interested party of the estate.

With that being said, it will be interesting to see the outcome of this pending lawsuit. It looks like the NFL may be taking a way harder hit then their average player’s 900-1500 headshots per season.

If you have family, friends or even a charitable intent, the absence of an estate plan is inexcusable. For more information on successful Florida estate planning and probate techniques, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.

It’s a Wild world. Are you protected?