Alex Rodriguez, the highest paid player in major league baseball, has been suspended through the end of the 2014 season.  The MLB has banned 12 other players for violating MLB’s drug policy through their involvement with the South Florida anti-aging clinic, Biogenesis.  Three of the players included All-Stars: Nelson Cruz of the Texas Rangers, Everth Cabrera of the San Diego Padres, and Jhonny Peralta of the Detroit Tigers.

For Rodriguez (A-Rod) this would financially require him to forfeit his salaries from the remainder of this season and all of next.  From a legal perspective, the Constitution does not cover major league baseball; A-Rod’s agreement is governed by contract law.  Since the humbled player has decided to appeal his suspension, under the provisions of his collective bargaining agreement, A-rod can still play while he appeals.

Either way, Monday was a career-altering day everyone involved.  Hopefully the players’ financial future is not a complete wash out for lack of financial planning.  Florida residents, in order to stay on top of your financial game, utilize an estate planning attorney for successful asset protection and estate planning techniques.  A properly designed asset protection plan can help cover all your  financial bases:

• Last Will & Testament to distribute property and name guardians for minor children.
• Living Trust to gain control of assets and avoid unnecessary taxes during your lifetime.
• Protection of family savings and investments from lawsuits and claims.
• Protection against inadequate or unavailable insurance coverage.
• Insulation of rental properties reducing your exposure to potential lawsuits.
• Protection of business assets and accounts receivable from potential claims.
• Reduction of estate taxes.

Planning for the future with a proper estate plan can help defray life’s curveballs.  Contact our team of experienced South Florida attorneys for more information on Florida estate planning and asset protection techniques.  Call the law firm of Wild Felice & Partners, P.A. at (954)-944-2855 to schedule your free consultation today.

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

AS WE MOVE CLOSER TO AUGUST, it’s time to mark your calendars for your “back to school sales tax holidays” – which are now expanding to cover just about everything in some states. In previous years, this sales tax holiday provided a couple days for shoppers to ravish the malls and department stores for clothing and school supplies. In states like Louisiana, you can purchase anything up to the price of $2,500 without tax being imposed, including guns! However, here in South Florida, your tax breaks will cover the standard clothing and school supplies, as well as computers and tablets (priced up to $750).

Florida state Rep. Larry Ahern, stated “[w]e are trying to take some of the burden off Florida families as they prepare for their children going back to school in August.” Speaking of burden’s – if you are participating in back-to-school tax savings, your child’s college years are probably just around the corner! While you can shop ‘til you drop every year, there are other tax planning techniques that can be used to save for your child’s college expenses, while avoiding those pesky mall folk!

The 529 Plan – a 529 plan allows you (or really, anyone) to contribute to an account to save for your child’s college education, and it is not subject to federal taxation. There is no age limit for when the plan can be used, and it can roll over to another family member. You can maintain control beyond your own natural years by appointing a guardian/trustee to manage it upon death. Not only do you avoid tax on withdrawals, but any capital gains are tax-free as well. Also, as an alternative, the Florida college savings plan is the largest prepaid plan in the nation.

No Generation Skipping Tax for College Payments – Lets say that you want to assist your grandchild in broadening their minds and finding a career path. You can create a trust, and give the trustee (you can be the trustee) a power to distribute the money for your grandchild’s tuition. This means, your trustee power is limited by an ascertainable standard, and may not be included in your gross estate (aka, you are not taxed on the amount).

So while stretching your legs for the mall-marathon that will be taking place  in South Florida on August 2-4, take a moment to consider the significant tax-free benefits of planning ahead for your child’s college education!

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.

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

When he was the lead mafia boss in the Soprano’s, the IRS would not be a threat to James Gandolfini; as he’d simply bribe a Federal agent, or have “his people take care of it.” But here in the Wild world of reality, only attentive estate planning keeps the IRS monsters at bay. And in this case, the only “hit” that’s taking place, is that against Gandolfini’s estate.

Gandolfini died with an estate that is currently estimated to be $70 million. While he has been a very successful man, his use of poor estate planning has resulted in a lot of grief for both his legacy & loved ones. Although he devised his property through a will to the beneficiaries of his choosing, the IRS has claimed the biggest share, weighing in at about $30 million. Furthermore, his entire will is now a public record that anyone can view, because it was subject to probate (where the court determines the validity of a will).

This estate planning (or lack thereof) catastrophe demonstrates two very critical points in strategic estate planning: (1) avoiding taxes, & (2) creating a private and smooth distribution of property. 

In terms of tax, married couples have an incredible safeguard, called the martial deduction. One of Gandolfini’s biggest mistakes was devising only 20% of his estate to his wife. Due to the unlimited marital deduction, anything you transfer to your spouse is not subject to transfer taxes, and therefore that money goes free & clear of estate taxes upon the death of the transferor (Gandolfini). When you have such a large estate, it is often advisable to include the amount in your gross estate that covers the full applicable exclusion amount (the transfer tax exemption that each individual receives upon death), which is currently at $5,250,000. Then you can transfer the rest to your spouse, and it goes transfer tax free for the time being.

So why did he fail to take advantage of a tax-free transfer? This often happens in cases where there is a child that is from a previous marriage, or a similar complicated family situation. Gandolfini has a son from a previous marriage, and therefore possibly did not want to devise all his assets to his wife, in efforts to ensure his son would be provided for. While this is a valid concern, there are estate planning strategies that can be implemented to obtain these goals, while still safeguarding your assets from excessive taxes. A marital trust is often used in theses situations. The instrument provides that the income from the trust property will be paid to the spouse for life, and then upon the spouse’s death, to the children. This could have dramatically shrunk the IRS bill that will come due in only 9 months.

On the second point, whenever you devise all of your property directly through a will, it will go through probate before the property is distributed to the beneficiaries. The problem with this is that the will becomes public record, and it’s contents are exposed for the whole world to see. This is why it is desirable to use a “pour-over will” that filters all of your assets into a trust. By doing so, you avoid the costs and grief associated with probate, and preserve privacy for yourself, and loved ones.

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.

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

Same sex couples can now receive the fabulous feature of portability – and we are not just talking about Louis-Vuitton luggage!

Today, the Supreme Court gave DOMA [“Defense of Marriage Act”] the boot, holding that it’s 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 applies on a Federal level, and States can still refuse to recognize same-sex marriages. Here in South Florida, same-sex marriage is not recognized on a State level. However, when it comes to estate planning, DOMA’s demise has many beneficial effects for same-sex couples in South Florida; especially when dealing with Federal taxes.

Let’s talk about portability in relation to taxes. Generally, an intra-spousal transfer is not subject to transfer taxes due to the marital deduction, and there is portability of the exemption amount. This means that when “Wife” transfers assets to “Husband,” those assets are not subject to any Federal transfer tax (gift or estate tax). Furthermore, each individual receives an estate tax exemption of $5,250,000. Lets just think of it as $5,250,000 worth of cash in a bag (luggage, if you will). What if Husband doesn’t use his entire exemption amount, as his gross estate is much smaller? Well, that’s where portability comes into play. All the cash in Husband’s luggage (that he never used) is wheeled on over to Wife. She now has her own luggage full of cash, as well as Husband’s luggage full of cash; giving her a pretty substantial protection from estate taxes. This way, Husband’s estate tax exemption is not wasted, as it transfers to the Wife.

Previously, same-sex married couples didn’t receive the benefit of portability, because they failed to fall into the spousal status of Federal law. Now, following the Supreme Court’s holding in United States v. Windsor, same-sex married couples receive the marital deduction, and have portability of their exemptions.

While this is certainly a great estate planning feature for same-sex couples, you don’t want to always rely on portability. Rather, you should plan for it, as there is a Wild 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

In thursday night’s 30th anniversary episode of “Wheel of Fortune,” Autumn Ernhard’s name went down in the books as the second wheeling-wonder fortunate enough to reach $1 million in winnings. She left the show with a fortune figure of $1,030,340.00, stating she was in “utter shock” & “shaking.” It is undetermined whether her “shakes” are a result of muscle fatigue from the new hefty burden in her pockets, or the nerves associated with planning her estate & further preserving her new fortune.

The million-dollar-side-effects can be cured with the help of a Florida estate planning attorney.

Ease your mind with the top 5 estate planning strategies to cure a case of the shakes:

1. Living Trust – a living trust has become increasingly desirable due to its ability to avoid probate (the legal process of determining whether a will is valid). There are three parties involved in a trust: (1) you, the creator; (2) the trustee(s) (who manage the assets in the trust); and (3) the beneficiaries. If you are married, you may want to designate yourself and your spouse as co-trustees, so that you have full control over the property while you are still alive. Side Note: such control does have tax consequences, so you will want to discuss this with your estate planning attorney.
2.  Assignment of Property – this is exactly that, assigning your property to your trust. This includes both real & personal property. A trust does not do anything for you if there is no property in it.
3.  Last Will & Testament – this is your traditional will that is used upon death to distribute property to beneficiaries, specify last wishes, and name guardians for minor children.
4.  Durable Power of Attorney – this allows you to designate and authorize someone to legally act on your behalf, in the event that you become incapacitated.
5.  Combination Living Will & Designation of Healthcare Surrogate – this outlines important healthcare decisions in advance, and appoints a healthcare surrogate to make healthcare decisions for you when you become unable to do so yourself.

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.

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

AND THE RESULTS ARE IN – Kellie Pickler & her partner Derek Hough have Cha-Cha-Cha’d their way to the Dancing With the Stars’ Hall of Fame, as the Season 16 Champions! The petite, pixie-cut Pickler is now the proud owner of the DWTS “mirror ball trophy.” The dancing queen has dominated both American Idol & Dancing with the Stars – what’s next, Top Chef? Project Runway? Survivor?

Regardless of where Pickler decides to direct her talents, her youth (age 26) & celebrity status will do little to protect her growing wealth without the implementation of estate planning.

Marilyn Monroe was 36 when she died. Although she had a will & trust, she did not have an estate plan in place to ensure all of her assets were distributed to her desired beneficiaries, and estate taxes absorbed over half of her net estate.

NFL Quarterback, Steve McNair, died at the age of 36. He had $20 million in his estate, but no will in place to provide for his four children. After years of probate, taxes, and legal fees, there is still no resolution in sight.

In cases like that of Marilyn Monroe & Steve McNair, where the estate exceeds the exemption equivalent, there are many estate planning techniques that can be used to limit estate taxes in Florida such as:

• Bypass Trust
• QPRT (Qualified Personal Residence Trust)
• ILIT (Irrevocable Life Insurance Trust)
• QTIP (Qualified Terminable Interest Property trust)

Over half of adults under the age of 34 do not have a will or estate plan in place.  Regardless of age, you want to protect your assets and ensure that you have control over their distribution.  Learn a lesson or two from these celebrities – you are never too young to waltz your way into estate planning protection.

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.

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