Gift giving is the surest way to help loved ones of all ages, establish a legacy, and reduce estate taxes. Yet, many people are hesitant to make significant gifts to loved ones because of the potential pitfalls.

“The wealth could be wasted or spent unwisely by the recipients…”

“Simple mismanagement by an unsophisticated heir might cause the money to disappear in scams or unwise investments or spending…”

“The wealth could be dissipated though gambling, substance abuse, or bankruptcy…”

“The wealth eventually could leave the family in a divorce…”

However, those pitfalls can be avoided with some creative giving strategies by gifting through trusts. Creating an irrevocable trust will give your family peace of mind that your assets will remain secure and be disbursed properly in a timely manner.

What are the main advantages of having an irrevocable trust?

• Asset Protection. Assets placed into an irrevocable trust are not considered to be owned by the grantor. Therefore, if you place an asset into an irrevocable trust, it will be instantly protected from creditors and judgment liens and may be protected from bankruptcy trustees and divorce as well.

• Avoiding Probate. Trusts allow your family to avoid probate. Probate is an arduous process that is costly and time consuming. It could delay the distribution of your assets for years. Additionally, probate can cost up to 10% of the value of your estate.

• Tax Advantages. The assets of the trust are not counted as part of your estate, so the estate taxes are lower or even completely eliminated. In addition, many irrevocable trusts also reduce your annual income tax burden.

• Lower Court and Attorney Fees: Distribution through a trust can save you on the attorney and executor’s fees charged to probate a will.

• Asset Protection for Beneficiaries. An irrevocable trust can protect your beneficiaries from having their inheritance taken from them through litigation, bankruptcy, creditors or divorce.

• Privacy. Irrevocable trusts are private documents and not subject to public record. Your family secrets and private bequests are not subject to public scrutiny or the eyes of undesirable claimants.

It is important to remember that a trust will be more beneficial to you and your family if it is executed before you need it. Although some people establish trusts after they inherit money, the benefit of privacy will be lost if you wait. Less than half of all Florida residents have an estate plan in place yet the death rate in Florida has held steady at 100 percent. The reason for this lapse in judgment is most likely due to a focus on the word “estate” rather than the word “planning.” The two biggest misconceptions made by most South Floridians that lack comprehensive estate planning is that they are either too young to worry about it or not wealthy enough to worry about. However, the fact remains that very rarely is estate planning solely about the money.

A Florida estate planning attorney can advise you on the type of trust that will most benefit you and your situation. This will give you and your family financial security and peace of mind.

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 to schedule your free consultation. It’s a Wild world. Are you protected?SM

The answer is simple, everyone. (And yes, that includes you…)

Whether you are a parent, a property owner, or a professional, you need to protect your family and assets. No estate is too small for planning. Estate planning is a process involving the counsel of professional advisors who are familiar with your goals and concerns, your assets and how they are owned, and your family structure. It can involve the services of a variety of professionals, including your lawyer, accountant, financial planner, life insurance advisor, banker and broker.

Organizing your assets can help avoid family fights and reduce the stress of probate. If you fail to plan ahead, the court will appoint someone to handle your assets and personal care. Your assets will be distributed to your heirs according to a set of rules known as intestate succession. Contrary to popular belief, everything does not automatically go to the state if you die without a will. Your relatives, no matter how distant, will have priority in inheritance ahead of the state. Still, they may not be your choice of heirs. An estate plan gives you much greater control over who will inherit your assets after your death.

Less than half of all Florida residents have an estate plan in place yet the death rate in Florida has held steady at 100 percent. The reason for this lapse in judgment is most likely due to a focus on the word “estate” rather than the word “planning.” The two biggest misconceptions made by most South Floridians that lack comprehensive estate planning is that they are either too young to worry about it or not wealthy enough to worry about. However, the fact remains that very rarely is estate planning solely about the money.

While our South Florida estate planning attorneys have the expertise in tax planning, as well as the designations of LL.M. and CPA that provide for the highest level of professional service, our firm aims to shed the tax attorney paradigm that estate planners are often pigeon-holed with and focus instead on the dynamic relationships between our clients and their loved ones. Estate planning is about those friends and family left behind, which is why we first ask our clients what their wealth transfer and asset protection goals are and then explain how we can accomplish those goals together.

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 to schedule your free consultation. It’s a Wild world. Are you protected?SM

About 71 years ago, today, Japanese warplanes attacked the U.S. naval base at Pearl Harbor, Hawaii. It was a devastating time for our nation and as President Roosevelt said, it was “a date that will live in infamy.” We will forever be indebted to the millions of U.S. troops and veterans that fought for our country.

The country we live in is our home. The house we live in is also our home, on a more personal level. In fact, it is our fortress that we all would like to protect from surprise enemy attack. For many South Floridians, the home is the largest asset. Estate planning revolves around the concept of asset protection. Your South Florida estate planning attorney can help you ward off any possible creditor strike on your estate. The key lies in “how” you own your home.

In Florida, joint tenants by the entirety (TBE), is a special type of joint tenancy recognized between married couples. The great benefit is that if one spouse is encumbered with an individual debt or judgment against him or her, the property cannot be partitioned or subject to forced sale without the permission of both spouses. The justification in this approach is that it would be unfair for a non-debtor spouse to lose his or her primary residence in order to satisfy a debt which is not the product of his or her own doing. In addition, neither husband nor wife may convey his or her interest in the real property without the consent of the other. Finally, when one spouse dies, the surviving spouse will take title to the entire property while avoiding probate.

Another way to jointly own title is through joint tenants with right of survivorship (JTWROS). Like TBE, this approach to holding real estate avoids probate. However, unlike TBE, creditors may be able to force partition and sale of the debtor’s interest. This approach to holding title would not adequately protect the home asset of the other spouse or unmarried titleholder. A creditor may be able to seize the interest of the debtor resulting in a huge misfortune to the non-debtor.

In South Florida, TBE is a very effective asset protection plan for a married couple. In Florida, unlike most other states, all types of property, including real property, tangible and intangible personal property may be titled as TBE. However, there are still drawbacks that must be considered, therefore; it would be wise to seek legal counsel. In the long run, this security against creditors may be lost following dissolution of marriage or death of a spouse. There are other issues to consider such as how TBE affects estate tax. Your South Florida attorney can assist you through the implementation of estate planning techniques that can achieve optimal estate tax planning.

For more information on successful Florida estate planning, please contact the South Florida law firm of Wild Felice & Partners, P.A. at (954) 944-2855 to schedule your free consultation. While our South Florida estate planning attorneys have the expertise in tax planning, as well as the designations of LL.M. and CPA that provide for the highest level of professional service, our firm aims to shed the tax attorney paradigm that estate planners are often pigeon-holed with and focus instead on the dynamic relationships between our clients and their loved ones.

Estate planning is about those friends and family left behind, which is why we first ask our clients what their wealth transfer and asset protection goals are and then explain how we can accomplish those goals together.

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

Timing is everything when it comes to Sunshine State probate.

A quick resolution to the Florida probate process is the ointment to what could result in a rather protracted and costly legal process. This is achieved through the assistance of a qualified South Florida probate attorney who has the specialized skill, experience, and legal knowledge to avoid many time-consuming complications. Having a trained ally to advocate for your interests also ensures that all your legal rights and interests are fully preserved and adequately protected.

Why is time so important in probate cases?

After a person dies, his or her estate that is subject to probate must have his or her debts paid off and assets distributed among the heirs and beneficiaries. Taxes, interest, and asset depreciation must be accounted for. Due to many complex legal and financial issues, prompt settlement of all financial matters is vital in preserving assets and minimizing liabilities.

Without careful planning, Florida probate can take a long time.

The total length of time required to conclude estate settlement varies widely. Total value and type of the decedent’s assets are primary determinants of the time factor. For instance, a deceased might have left behind a lot of real estate, antiques, or jewelry. As illiquid assets, such items must be appraised and fully accounted for prior to final sale or other distribution. This can add considerably to the total time required to complete probate. Conversely, an estate containing few assets or those that are easily liquidated such as life insurance proceeds or bank accounts, close much faster.

In addition, Florida statutes require all estates to remain open at least three months after being formally admitted to probate court. This requirement is designed to afford creditors or other third parties an ample opportunity to file any adverse claims. Thus, even simple probate cases typically take at least 5-6 months to close. However, without an attorney to file this notice to creditors, the window of opportunity to file claims against the estate is greatly widened.

Finally, the IRS dictates how long the administration of a taxable estate drags on for. Final closure is prohibited until there is final IRS approval of the Estate Tax Form 706. In addition, applicable laws allow the personal representative or probate attorney up to nine months after a decedent’s death to file this document.

As you can see, probate closure can take years and years. Take remedial measures now by consulting an experienced attorney for advice and guidance.

For more information on successful Florida estate planning, please contact the South Florida law firm of Wild Felice & Partners, P.A. at (954) 944-2855 to schedule your free consultation. While our South Florida estate planning attorneys have the expertise in tax planning, as well as the designations of LL.M. and CPA that provide for the highest level of professional service, our firm aims to shed the tax attorney paradigm that estate planners are often pigeon-holed with and focus instead on the dynamic relationships between our clients and their loved ones.

Estate planning is about those friends and family left behind, which is why we first ask our clients what their wealth transfer and asset protection goals are and then explain how we can accomplish those goals together.

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

“I pledge allegiance to the flag of the United States of America, and to the republic for which it stands, one nation under G-d, indivisible, with liberty and justice for all.”

Thank you to all who have served, and are serving! You gave, and continue to give, every day to ensure our freedom—and to you, we are forever grateful!

On June 6, 2012, Senator Ron Wyden of Oregon introduced legislation that will restrict eligibility for veteran’s benefits used to assist in funding for home health care, assisted living and nursing home expenses. The proposed bill would require that the Secretary of Veterans Affairs look back 36-months for any uncompensated transfers that a veteran, their spouse or child may have made. Today, there is no look-back period. A veteran, their spouse or child with excess assets can qualify for veteran’s benefits by making transfers to a properly drafted irrevocable gift trust.

If the proposed legislation were to pass, the bill would take effect one year after enactment, and apply to pensions applied for or redeterminations after that date. The bill will disqualify a veteran, their spouse or child who has made transfers to a properly drafted irrevocable gift trust, within the 36-month look-back period, from receiving benefits for a period of time depending on the amount that was transferred.

The percentage is astounding. Less than half of all Florida residents, including active duty and veteran members, have an estate plan in place. Yet, the death rate in Florida has held steady at 100 percent. As an active duty or veteran member, you have and continue to do so much for this country. Please do not fall prey to this look-back period. Who knows if or when the proposed veteran’s benefits “36-month Look-Back-Period” legislation will pass. You have taken the honorable oaths of enlistment and office. Allow a competent and qualified estate planning attorney the opportunity to give you their oath to protect what you so rightfully deserve.

For more information on successful Florida estate planning, please contact the South Florida law firm of Wild Felice & Partners, P.A. at (954) 944-2855 to schedule your free consultation. While our South Florida estate planning attorneys have the expertise in tax planning, as well as the designations of LL.M. and CPA that provide for the highest level of professional service, our firm aims to shed the tax attorney paradigm that estate planners are often pigeon-holed with and focus instead on the dynamic relationships between our clients and their loved ones.
Estate planning is about those friends and family left behind, which is why we first ask our clients what their wealth transfer and asset protection goals are and then explain how we can accomplish those goals together.

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

This year could be your once in a lifetime year-end 2012 estate tax planning opportunity. However, you should act fast considering there are only 53 days left this year before we might all experience “taxmageddon.”

Clients hope that the presidential election will clarify the future of transfer tax rates and exemptions. However, the answers they seek may not be the answers they would like to hear. Therefore, this remaining year may be the opportune time to take advantage of the current federal applicable lifetime exemption which may soon be a thing of the past. The exemption for transfers is $5.12 million per person, and twice that for a couple. This is the highest exemption in estate planning history! Any amount over this magic number is taxed at a top tax rate of 35%. For gifting purposes, the annual exclusion for gifting is $13,000 per person, per recipient.

However, serious changes could be looming on the horizon. The current estate and gift tax is set to expire by the end of the month. There may be pending legislation to drop the exemption to $1 million with a top tax rate of 55%. It may be wise to act now given the unfavorable situation we may all be faced with.

Embrace the opportunity to preserve your wealth and protect your assets while you still can by fully using any remaining gift tax and generation-skipping transfer tax exemptions now. Contact your South Florida estate planning attorney for a toolbox of techniques for achieving your long term planning goals before Congress opens Pandora’s Box of tax reform.

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?