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?

Even love drunk celebrities that jump on Oprah’s couch get divorced. Tom Cruise and Katie Holmes who were married for more than 5 years are no longer Hollywood’s picture perfect couple. The painful truth is that divorce in America is an epidemic with one in two marriages doomed to fail.

Estate planning becomes critical during such a major change in one’s life. It is paramount to contact your estate planning attorney so that you can update your Will and all necessary documents to reflect your new marital status. Not doing so is just risky business.

When you married, you probably left a large portion of your estate to your spouse by designating him or her as the primary beneficiary of your Will. You might want to rethink your asset distribution and appoint a new personal representative to administer your estate. Your attorney can redraft your entire Will or prepare a specialized addendum called a “codicil” to reflect these changes.

You may also want to update supplementary documents concerning incapacity such as the Durable Power of Attorney form and the Designation of Health Care Surrogate form. After divorce, the last person you probably want making financial and health care decisions on your behalf is your ex-spouse.

To avoid heading up the creek, you should also thoroughly review any existing Revocable Living Trusts. Most people prefer to remove the name of their ex-spouse as Trustee or beneficiary of the trust. When it comes to amending the terms of a trust, certain tax advantages could be lost so it’s important to consult your attorney as soon as possible.

With respect to life insurance, you will most likely prefer to re-designate the beneficiary of your policy. However, keep in mind that if such a step is taken prior to the final entry of a Divorce Decree, any accumulated cash value may be deemed a marital asset and thus become subject to equitable distribution in a divorce settlement.

The dissolution of marriage is a difficult and painful process; however, in South Florida, modifying your estate plan doesn’t have to be a mission impossible. With the help of your qualified South Florida estate planning attorney, all contingencies will be accounted for to ensure the protection of your assets and proper allocation to your intended beneficiaries.

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?

Although his time was nearing at the age of 86, it is still hard to believe that Andy Griffith died today in his hometown in North Carolina. He was a legendary icon who knew how to capture our hearts with his homespun humor and small town sensibility. Coping with a loss is very difficult but there is also a time when to get practical and realistic. This means not only taking a look at “who” the decedent leaves behind, but also “what” he leaves behind. The one to sort this issue out will definitely not be just another “Face in the Crowd.”

It will be the Personal Representative.

Everyone should have an estate plan in place and it is the Personal Representative who will be solely responsible for decisions regarding your estate after you die. In Florida, there are certain qualifications that must be met before one is eligible. The benefit of having a will drafted is that you can appoint who you would like to administer your estate.

These are big shoes to fill and due to the complexity involved, Florida Probate Rule 5.030 requires representation by an attorney licensed to practice in the state of Florida.

As a hypothetical, suppose Andy was a resident in Florida and he had a will appointing his wife Cindi, as his Personal Representative. There are many duties and responsibilities she will have to fulfill.

She will be required to collect all debts owed to Andy including but not limited to any salary, wages, pension, loans, and dividends. She must pay debts to his creditors. Finally, she will be responsible for distributing the actor’s estate to beneficiaries according to the terms of his will and the Florida Probate Code.

There are specific pleadings that need to be filed with the probate court. All tangible, personal property will need to be marshaled, inventoried, and properly preserved. She might need to obtain appraisals and consider insurance binders on uninsured property such as expensive vehicles and boats. With respect to any businesses Andy may have owned, she may need to continue operation or liquidate in order to satisfy obligations of the estate. She may need to arrange for ancillary administration if Andy owned any real property outside of Florida. She will have a duty to invest his assets as a prudent investor. A notice to creditors must be filed. Income tax and estate tax returns cannot be neglected.

Luckily, having an attorney present to guide a Personal Representative through this process will make this task less daunting and more manageable. Your South Florida estate planning attorney will simplify the process by handling important legal and administrative matters so you don’t have to.

Like the sheriff would say, “Gee, I appreciate it and good night.” May Andy have an eternal good night’s rest.

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?

Wisconsin’s Gov. Walker is the nation’s first governor to survive a recall election despite the roars of union workers protesting at the Capitol. Voters apparently endorsed his business like approach requiring public employees to contribute more to their health insurance and pension benefits, like in the private sector. His plan erased a billion dollar budget deficit, reduced unemployment rate to below 7 percent, and prevented layoffs of policemen, firefighters, and teachers.

With our lackluster economy, investment uncertainty, and decreasing home values, the important question now becomes what is your strategy for protecting your family against financial distress and fragmented relationships? With a properly constructed estate plan, you can save your family tens of thousands of dollars, protect them from creditor claims, and undue taxes. However, this is not an easy task. Due to these hard times, there has been an increase in contested estates and heated disputes among heirs and beneficiaries.

There are some steps you can take to avoid family conflict and unnecessary probate litigation.

The pinnacle of a solid estate plan is to hire a good South Florida estate planning attorney. It’s important to select one that is highly qualified with the knowledge of Florida state laws and experience in this complex area of law.

Selecting the right personal representative to administer your estate and trustees to manage your trusts requires a well thought out plan. If you anticipate unavoidable family friction, it might be best to appoint a professional fiduciary such as a bank to manage your affairs.

Most people don’t think to sit down with family members to discuss their intentions and how they wish to bequeath their assets. However, clear and effective communication can help avoid unpleasant family disputes once you are gone. In addition, updating and confirming your estate plan over time will minimize challenges to your estate. Finally, always make sure your assets are clearly titled to avoid any confusion in the future.

If the family divide still cannot be mended, you can always try taking Walker’s advice and offer them some brats and beer.

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?