Are you protected?

Don’t leave your assets vulnerable to attack. Much like a goalie, asset protection planning will help to shield your assets from attack.

Asset protection is a broad term, encompassing many different techniques, but here at our South Florida law firm, we focus our asset protection on two areas: estate planning and business formation. In the area of estate planning, the main approach is to use trusts to dispose of your assets rather than a will. A trust protects your assets by first avoiding probate and all of the costs (both monetary and time) associated with that process. Secondly, trusts protect your assets by keeping them in your family. With a will, the asset is no longer yours to control following the first disposition, a trust allows you to control the asset for multiple generations. This makes sure that the inheritance will never be taken by divorce or remarriage. For example, if you want to give all of your estate to your daughter and then to her children, a trust allows you to do this without giving any to her spouse. Furthermore, a trust protects your beneficiaries from themselves, if they are either too young or not fiscally responsible. Because they are the beneficiary and not necessarily the trustee, you can name a trustee who will make the financial decisions for them. Finally, trusts offer asset protection by being creditor protected. Assets that are in a trust can not be reached by creditors, assuring that the inheritance remains with the beneficiary.

Choosing the proper business form also works as asset protection. If you own a business as a sole proprietor or even in a general partnership, you can be personally liable for all of the debts of the business. Limited partnerships, LLCs, and corporations can protect your asset from business debts. A limited partnership consists of two classes of partners: a general partner, who manages and is more active, and a limited partner, who is more like an investor. The limited partner’s liability is limited to whatever they have put into the company, whereas the general partner remains liable for all the debt. An LLC offers limited liability as well, while allowing for more active participation. The manager of a multi-member LLC makes the decisions and runs the company, but is still afforded protection. If someone sues an LLC, they can only recover the company’s assets. Subsequently, if a person sues the manager of an LLC for a personal matter, the assets of the LLC are protected from this personal creditor. Finally, a corporation offers protection to all of its shareholders while also offering increased flexibility with the management structure. A corporation allows for different classes of stock with different voting abilities. Corporations also allow you to raise capital by issuing stock.

Regardless of what business form you end up choosing, you must also engage in business succession planning. Because all of these business forms are separate legal entities, they will survive after you are gone. Therefore, you must plan for what happens to your companies or you risk them dying. If you have multiple members or partners in your company, you can arrange a plan beforehand in which they buy your shares at a predetermined price. The company could then purchase life insurance in that amount to make sure that the company does not have cash flow issues and does not have to sell off company assets to buy your stake.

Whether you are looking at asset protection from an estate planning or business formation standpoint, our attorneys can help be your goalie and protect the assets you’ve worked so hard to acquire.

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, or visit our website at www.wfplaw.com

It’s a Wild world. Are you protected?

The death rate in Florida is 100%, which means NO ONE can completely avoid the probate process. The term probate generally refers to the method by which your estate (the totality of the assets in your personal name at death) is administered and processed through the legal system after you die.  The probate process helps you divide and assign parts of your estate in an orderly and supervised manner. Your estate must be divided according to the specifics of your Will, if you die with a Will, or according to statute if you die intestate or without a Will. (Your debts and taxes must be paid before your beneficiaries receive their inheritance, for example).

If you have creditors at death, those debts must be satisfied before dividing the remainder of your assets, additionally there may be taxes due and those must be paid before distribution as well.  This means that the process of finding your creditors and paying those debts can take months and the distribution of the remainder to your heirs may become complicated.  There are legal methods that allow a person to make the process of distributing assets after death more efficient and less costly, which is an advantage to your family and loved ones and a wise investment.  Planning for the future will save your family members additional grief and possibly avoid conflict among family members and other beneficiaries.

Having a Will is a solid first step in the right direction to ease the probate process, but that is not all you need.  Placing your property in Trust to protect it from creditors, drafting a Power of Attorney, a Living Will and a Designation of Healthcare Surrogate are other methods to ensure that nothing is left to chance, that your family will be protected and that somebody you trust will make legal decisions for you when you are no longer able to make them yourself.

An attorney that specializes in estate planning can help explain the legal tools that are available to each individual depending on their financial situation and their specific needs.  Common methods that are utilized to avoid probate are Revocable Trusts which allow your property to be protected from creditors and susceptible to probate.  By scheduling a consultation an attorney can better explain the additional benefits of creating a revocable trust and how this can save you time and money in the long run.

It is important to note that you do not have to have a large estate to take advantage of the benefits of having your assets in a trust or any other legal estate planning tools.  This is a common misconception, but having an estate plan is something that everyone should give serious consideration to.  Additionally, it is also important to mention that although having an estate plan may not seem like a priority to most people, you need to be prepared for any eventuality.

Nobody likes to think about death or incapacity, but these are facts of life and it can happen to any of us at any given time.  If you have a family and if you have small children you should plan for their care in case you can no longer care for them and this is something that an estate planning attorney can help you with.

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

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.

When Relationships End…

Over the Fourth of July weekend we found out that it’s over for Scott Disick and Kourtney Kardashian.  Kardashian, 36, and Disick, 32, shared nine years and three children together despite the fact that their relationship was frequently strained by Disick’s drinking problem, partying ways, and his regular stays in rehab including one earlier this year. I bet we all saw that one coming!

The early stages of a romantic relationship and marriage are usually of joy and happiness.  When a couple gets married there is little time to contemplate the possibility that maybe someday the relationship may fail, but it can! (Just ask Kourtney Kardashian). Nobody likes to think about that possibility and for the most part, couples trust each other with everything including their assets, even when those assets that are non-marital, that is, the spouse owned the asset before entering into the marriage.  The act of mixing non-marital and marital assets (like joint accounts or transferring title of solely-owned property to the marriage) is called “co-mingling”.

The problem that arises when one co-mingles marital with non-marital assets is that in the event that the relationship does fail, equitable distribution may be required and this may mean that a person who did not intend to give up ownership of non-marital assets may end up losing half of their interest in them because he or she failed to keep them separate.  Don’t make this rookie mistake!

Failing to keep non-marital assets free from mixing with marital assets creates a presumption that a gift was intended to the other spouse and the burden is on the person that co-mingled non-marital funds to overcome this presumption.  Establishing a trust and transferring to it assets that are non-marital, is a great way to keep them protected from the reach of an ex-spouse and by managing it in such a way that marital assets are never transferred into the trust. A Prenuptial Agreement is another commonly used and effective method to protect non-marital assets.

There are other alternatives to ensure that your non-marital (and marital) wealth is protected, but you must seek legal counsel to make sure you can take advantage of all the options available to you. Our firm specializes in wealth and asset protection and can help by providing you with more detailed information and tailored strategies to meet your individual needs.

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

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.

Last week, the Supreme Court made same-sex marriage a constitutional right.  That means that no state can unilaterally deny same-sex couples the right to marry. In a previous decision the Supreme Court gave DOMA [“Defense of Marriage Act”] the boot, holding that its definition of marriage (limited to a union between one man & one woman) violates the guarantee of equal protection provided by the Fifth Amendment. Keep in mind, this only applied on a Federal level, and States could still refuse to recognize same-sex marriages. The most recent case, Obergefell v. Hodges, which was decided last week, extends this protection to same-sex couples under the fourteenth amendment which applies at the state and local levels of government. Here in South Florida, same-sex marriage was recognized only recently.

Same-sex couples now enjoy the benefit of holding property as tenancy by the entirety, which is a benefit Reserved for married couples; each spouse owns 100% of the property.  One spouse cannot transfer it without the agreement of the other.  Any bank account, for example, in the name of 2 married persons is considered to be held as tenancy by the entirety unless otherwise specified in writing.  Also, any creditor of one spouse alone can’t go after any asset held by the entirety to satisfy a debt.

Another benefit that is now available to same-sex couples is the elective share option, which means that if a spouse is cut out of the will, he or she can exercise the elective share, which entitles the person to 30% of the estate regardless of whether the decedent included the person in the will.

401K funds can now be transferred upon death to a same-sex spouse, which was not possible before, if the state did not allow same-sex marriage.  The Supreme Court Decision now extends the homestead protection to same-sex couples as well, that is, the surviving spouse automatically receives at least a life estate interest in the property of the decedent spouse (the surviving spouse can automatically live in the marital home for the rest of his or her life), which was not possible before in a state that did not provide for same-sex marriage.

While these are certainly great estate planning features for same-sex couples, you don’t want to always rely on automaticity. Rather, you should plan for the future of your spouse and children if you have them, as there is a vast array of estate planning techniques that will ensure your receive all of the benefits of the law.

For more information on successful Florida estate planning and asset protection, contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 or via email at mwild@wfplaw.com to schedule your free consultation.

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

With Father’s day behind us, we still have an opportunity to celebrate Dad and thank him for everything he has done for you.  A father is for many of us a fountain of wisdom and the person we model ourselves to be, and for that reason it is important to let them know every day how important they are in our lives because unfortunately they won’t be around forever.  Take the time to tell him how much you appreciate all he has done and how he has shaped you.  To ensure that his legacy is preserved, consider planning for your future and that of your children after all, he worked hard so you could enjoy the fruits of his labor.

A common misconception is that only wealthy families and people in high risk professions need to put together an asset protection plan.  But in reality, anyone can be sued.  A car accident, foreclosure, unpaid medical bills, or an injured tenant can result in a monetary judgment that will decimate your finances.   To make sure that your assets are protected from unforeseen creditors, consult an estate planning attorney that can help you navigate confidently the waters of wealth and family protection, so you and your family can have the peace of mind that only comes with knowing that you are prepared for anything.

Plain and simple, estate planning helps protect your family in the event that something bad happens to you. And, yet, 55% of Americans don’t even have a last will, leaving them vulnerable to costly court fees and legal battles.  But even though it’s predicated on incapacitation or death, estate planning doesn’t have to be morbid. In fact, it can actually be life-affirming, because the process will allow you to take a closer look at the people you most care about in life—and ensure their future happiness.

Don’t procrastinate.  Unless you have a crystal ball, you just never know when death will occur. With the help of an attorney, determine which type of document best suits your situation.  You’re the only one who knows the extent of your assets, but if you have minor children, you must get a will.  Keep your will or trust current, life is fluid. As you increase assets, and expand your family, your will or trust should be updated to meet your changing needs. For example, wills and trusts should be revised following unexpected events, such as a divorce or the death of a spouse or a child. A substantial inheritance should also trigger a revision to your will or trust.  Let someone you trust know where you keep your documents.  A family member, relative or trusted friend should be able to easily find your documents at the time of your death to prevent any confusion.

Estate planning and asset protection are proactive methods to secure your family’s future and to ensure their financial stability when you are no longer there to do it yourself.  One of the most difficult things to do is think about the possibility we may die unexpectedly or too early, leaving our children without one of the most important people in their lives.  But stepping up and making a legal plan to protect your children if something should happen to you is one of the best Father’s Day gifts you can give yourself and the people you love.

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

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.

June’s cover of Vanity Fair magazine revealed the transformation of Olympic Gold Medalist Bruce Jenner into a woman.  “Call me Caitlyn”, the cover reads.  Life is inherently full of changes, some undoubtedly more drastic than others and while Caitlyn’s transformation certainly falls into the more drastic type of life change, there are life changes that most people go through that may require counsel from an attorney.  Estate planning, for example, is an important undertaking and hiring an attorney to draft an estate plan for you is definitely a step in the right direction.  However, just because you already drafted an estate plan does not mean you can simply file it away and forget about it.  There are certain life changes that warrant a review of your estate plan in order to make it congruent with the changes in your life; it is recommended that you take a look at your estate plan every 3 to 5 years, because within those periods it is likely that one of the following major life events occur:

Getting married: Generally you would want to update your living trust and/or your will to indicate what provisions you would like to make for your new spouse. You should also address your separate property.  You may wish consider a prenuptial agreement if one or both spouses come to the marriage with significant assets.

Divorce or death of a spouse:  The end of a marriage should trigger the need to review your estate planning documents.  That could mean changing beneficiaries, trustees and changing Powers of Attorney and Health Care Surrogates.

Purchase or refinance of a home:  If you have a living trust, your house should be held in the trust. Many times lenders, upon a refinance, will take the property out of the trust, put the mortgage in place and then neglect to put it back into the trust. When buying property many people simply forget to take title in the name of the trust. To have the maximum benefit of the trust, all properties should be in the name of the trust. If your properties are not in your trust, work with your estate planning attorney to help transfer the properties to the trust.

New accounts:  Making sure all savings accounts, brokerage accounts or mutual fund accounts are in the trust is important to avoid probate and make transfer of title to your new beneficiaries easier.

The birth of a new child:  If you have a baby, adopt a child or have a new stepchild, all would trigger the need to review and update your estate planning.

Change is the only constant and your estate plan should be constantly changing.

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

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.