Take a look at how family is often presented in the media. What do we see? It’s a husband, a wife, two or three kids, and probably a pet. The grandparents, still happily married after all that time, stop by for Thanksgiving dinner, pie under their arms. Sounds like something right out of a Publix commercial. If Flintstones and the Jetsons are any indication, this family set-up has been around since the age of cavemen and will be the norm long into the future. Estate planning for such a family dynamic is quite straightforward. But is this family really the norm? With a national divorce rate hovering around 50%, probably not. In actuality, you probably don’t have the “perfect” family set-up of yesteryear’s media; instead, you need estate planning for your modern family. Since we all differences between our family structure, let’s look at some examples from everyone’s favorite Modern Family: the Pritchetts.

            What would happen if Jay were to somehow die without an estate plan? Well, first, let’s first assume that the family has all moved from California to Florida between the seasons and is now domiciled here at the time of Jay’s death. If he has no will, not even one executed in California (Florida would recognize a validly executed out-of-state will), then the Florida intestacy statutes control how the estate assets are distributed. Since Jay would leave behind a surviving spouse and two kids from a previous marriage, his wife Gloria would receive half of the estate. The other half would go to Jay’s descendants in equal shares. How this remaining half of the estate would be divided depends on whether Jay adopted Gloria’s son from a previous marriage, Manny. If Manny has been legally adopted, then he is Jay’s child by law and can inherit. Otherwise, he would receive nothing. Assuming that Jay did adopt Manny, then Mitchell, Claire, Manny, and baby Joe would each receive an eighth of the estate. Intestate succession in Florida is “per stirpes” which means each decedent receives an equal share. How many children a descendant has does not affect the share he or she will receive. This means that if Claire passed away before Jay, her three kids would each receive an equal share of the eight she would have inherited. Mitchell’s daughter would receive his full eighth share.

            But as we all know, Jay isn’t the type of person to let something as important as estate planning pass him by. Rather, Jay likely had an estate plan in place years ago, and has updated it with every major life event since (his remarriage, his son’s adoption of a child, his son’s marriage, and the birth of his new son). Jay, who built his company from the ground up, would likely want to protect and control his assets for as long as he could. Therefore, he would likely use a trust based plan for his estate distribution. A trust based plan would give him multiple advantages over a basic will. First, Jay would want to leave a great deal of money to his wife Gloria. However, Gloria is already on her 2^nd marriage and is much younger than Jay and will not stay single for long. If she were to get remarried, a large portion of Jay’s assets could end up with her new husband. A trust fund would prevent anyone other than her and later her children from getting the money. Trust funds would also be the best way to give money to both of his minor sons. Jay could name the trustee of his choice to manage the assets until an age where each son is ready to become their own trustee, such as 25 or 30. Trusts would also allow Jay to give money to his two grown children, Claire and Mitchell, while protecting it from their respective spouses, who Jay is not the biggest fans of.

            Claire and Phil, both successful businesspeople, likely have an estate plan in place as well to protect their three children. With two minor children, the couple would be smart to have guardian designations in their estate plan. The two of them would also likely follow Jay’s lead and have a trust based plan. Haillie has yet to show the necessary maturity to manage her own funds and her judgment with men could be described as questionable. Putting her inheritance in a trust fund and setting an age at which she would have full control over it will help to protect the funds while she becomes responsible enough. The same logic applies to their youngest son, Luke. While middle child Alex has demonstrated responsibility and maturity throughout her teen years, she is still a minor and would need a trustee to manage the funds until she becomes an adult. Phil and Claire could require that the children never get to control their own funds, putting a corporate trustee or even their lawyer uncle Mitchell in charge of distributing the funds. The use of trusts funds allows for maximum inheritance protection, but from outside creditors and from the beneficiaries themselves.

            And what of Cameron and Mitchell’s estate planning? As a same-sex couple, estate planning is especially important. The couple was legally married in California, but Florida does not yet recognize same-sex marriage. Therefore, while the couple can receive federal benefits as a married couple, they do not receive any under state law and will not be viewed as married for state intestacy laws. Cam and Mitchell should follow in what is becoming a family tradition and use a trust based plan, though the reasoning is different for this couple. Wills must be probated in court before estate property can be distributed and are public documents. A trust is private; the court is not involved. Cam and Mitchell would be smart to avoid the risk of having their will in front of a conservative judge. Cam and Mitchell should use what is colloquially referred to as “I love you” trusts, where the decedent leaves everything to the surviving spouse, and down to their daughter Lilly. The trusts mirror each other, maximizing the ease of administration and assuring maximum protection for the beneficiaries. Cam and Mitchell’s estate plan should also name a guardian for Lilly, a minor, in the event that they both pass before she is an adult.

            These are just a few of the many situations that can occur with today’s modern families, but it shows just how intricate estate planning can be. Just within this one family, three different approaches were used. Even though each family ended up in a trust based plan, each plan is different, personalized. And that is what you deserve. Don’t find yourself with an estate planning attorney who only cares about taxes, or one who will just cut and paste your name in a form he’s already used countless times.

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

What you need to know about Probate:

Probate is topic often disregarded until you have to find out the hard way. In fact most people believe that when they die, their spouse or children will automatically inherit their assets. In a perfect world of rainbows, unicorns and executor who knows exactly what to do, probate seems like a topic that could go under the radar.

While the Wild Felice & Partners of South Florida refrain from being the bearer of bad news, probate, if not handled proactively, can turn into your worst nightmare. Yes, even worse than the nightmare of you walking the hallways of your high school naked.  

Before we explain why you should avoid probate, let us explain what probate is.

What is Probate?

Probate is a court-supervised process for identifying and gathering the assets of a deceased person, paying the descendant’s debts, and distributing the descendant’s assets to his or her beneficiaries.

First, the descendant’s assets are used to pay the cost of the probate proceeding and then any outstanding debts. The remaining assets are distributed to the descendant’s beneficiaries.

Why should I care about Probate?

Whether you are young or old, sick or healthy, rich or poor, it is wise to avoid

probate. Why? Take the story of Mary…

Mary recently suffered the loss of her mother. Unfortunately, her mom did not have a living trust in place prior to her death. Mary and her siblings could undergo the following hassles:

• They will have to wait for the courts to settle their mother’s estate before they can take possession of her assets. This can take up to a year.
• The assets of your mother are now public, allowing anyone to see her financial standing. Now, Mary’s ex-brother-in-law is quite interested in obtaining some inheritance.
• Total strangers have access to her mother’s financial information, leaving Mary susceptible to being scammed for money.

Why would you wish to experience a legal battle while handling an emotional battle as well? Rather than grieving for her mother, Mary is spending all her time and her money to handle something that could have been avoided.

How to avoid probate?

It is important to create an estate plan that uses a trust to pass assets to the chosen beneficiaries. When you have a revocable living trust, you avoid probate and provide detailed instruction on how you wish to handle your assets in case of illness or death.

This is a very emotional and difficult time, we recommend making the transition seamless and effortless.

Avoid probate of your loved ones and contact Wild Felice & Partners of South Florida in Plantation to learn more.

Amusement parks and roller coasters are a mainstream of American culture. The ups, the downs, the rush of adrenaline. However, roller coasters aren’t always the fun ride we hope for. Yesterday, occupants at Six Flags Magic Mountain found themselves in an precarious position after a fallen tree branch derailed their car, leaving the riders stuck for hours. Don’t let a metaphorical branch derail your plans. Have your estate plan done by the South Florida law firm of Wild Felice & Partners.

The largest obstacle that could affect your estate is if you die without a will. If you die without a valid will in Florida, the state’s intestacy laws control how your property is distributed. Depending on your marriage and child situation, your spouse would get as little as one half of the estate and as much as the entire estate. Intestacy can be especially troublesome for same-sex couples, since Florida does not recognize same-sex marriage. Even if you are legally married in another state, Florida will not consider your same-sex partner as your spouse, and he or she would receive nothing under the statute.

The next obstacle that could affect your estate is probate. Probate is a process in which your will is submitted to the court for validation and then ownership of assets your estate to your beneficiaries. Assets in probate are tied up, with accounts frozen. This process usually lasts about six months for simpler estates, but can last a few years for complex estates. Probate can be avoided by using a trust based plan instead of a will based plan. Trusts can make sure that your beneficiaries get their assets quicker, allowing them to return to a sense of normalcy as soon as possible.

The third obstacle that you want to prepare for is creditors. Creditors can affect your estate in a variety of ways. One of the major creditors (and one you can’t protect from) is the IRS. While most estates will not have to pay an estate tax, the estate is still responsible to file an income tax for the year the decedent dies. Other creditors include private creditors that the decedent had during his lifetime. Those debts can attach to the estate and must be paid before the estate assets can be distributed. Depending on the size of the debts, this may greatly decrease the estate’s worth. The third type of creditors are creditors of the beneficiaries. Your beneficiaries may lose their entire inheritance if they have debts at the time they receive the assets. As previously mentioned, you can’t avoid the IRS but a trust can be used to protect from the other two types of creditors. If you put all your assets in a revocable trust during your life, you are taking them out of your estate. When creditors try to get money out of your estate when you die, there won’t be anything in the estate for them to get. In terms of your beneficiaries, giving their inheritance in a trust will protect the assets while still allowing them to benefit from them. If your beneficiaries have creditors waiting for trust distributions, you can instruct the trustee to pay for things for the beneficiary, so the money is never actually in their possession and the creditors can not get to it.

The final obstacle we’re going to discuss to today is failure to update. Whether you choose a trust or a will to distribute your property, you must take care to update the instrument, preferably every three to five years. This will help to protect you against any changes in the law that may affect your plan. Also, change your estate plan after any major life event: birth, marriage, divorce, death. If you get divorced, but don’t update your plan, your ex may find themselves an unexpected beneficiary of your estate.

While there are too many other obstacles to enumerate in a post, our South Florida estate planning attorneys can help you plan for all of them. Keep everything on track and make sure poor estate planning doesn’t derail your life.

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

As Americans make their way back to work after a July 4^th weekend full of beaches, beer, and burgers, we can take a moment to think about what we were actually celebrating. We live in a country that prides itself on freedom and one of those freedoms is the right to devise, to decide what happens with your property once you die. However, this right is one you must take active participation in for it to apply. In fact, if you do not exercise your freedom and execute a valid estate plan, then the state will decide how your assets are distributed.

About 70% of people in the state of Florida do not have an estate plan currently in place. If you die without a will, the rules of intestate succession determine how your property is distributed. These rules are designed to distribute your property how the state believes most people would distribute their property. If you are married and have minor children, your entire estate would go to your wife. This might be what you wanted anyway, but what happens if your wife remarries? A large portion of your estate could go to your new husband when she passes or if they get divorced. And this is just one example where intestacy laws could lead to a bad situation. Put simply, do not let the state decide when you have the ability to decide for yourself.

Once you’ve decided that you are going to exercise your right to devise your property, the next issue is what type of plan will you use: a will based plan or a trust based plan. When most people think of estate planning, they think of wills. Wills are a valid way of transferring ownership of property at your death. However, wills have a few drawbacks. The first is that a will must be probated. Probate is the processof a validating a will and distributing the estate’s assets. Ownership of property can not be transferred from the deceased to the beneficiary without probate and during this extended process, the future owners will likely not have access to the property. Bank accounts are frozen, shares of stock tied up, etc. The second drawback is that a will is a public document, meaning everyone would be able to see your distributions. The third drawback is that the only control you have over the asset is the first bequest. After that, the assets belong to the beneficiary and they can do whatever they want with it.

When discussing trusts, it is important to first dispel the notion that trust funds are only for the wealthy. This is not true. Trust funds have a variety of advantages over a will and are suitable for almost all estate plans. First, a trust avoids probate, the benefits of which have already been enumerated. Secondly, a trust offers more control than a will does. With a trust, you can control an asset for multiple generations, such as to your children for their lives and then to their grandchildren; you cannot do this with a will. Third, the trust offers creditor protection for your beneficiaries’ inheritance. Because each beneficiary receives their inheritance in a trust fund, the assets will be unaffected by creditors or divorce.

Don’t just celebrate your freedom by grilling out or hanging by the pool. Talk to an estate planning attorney today about exercising your freedom and getting an estate plan in place today.

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

NBA free agency is in full swing this week, with multi-million dollar contracts being signed and players finding a new home for next season. Heat fans are still waiting to see who will be bringing their talents to South Beach, to see what sort of long term planning team President Pat Riley has in store for the team. You may never be a superstar athlete, but you too can plan for your future by meeting with one of our South Florida probate attorneys and making sure you have a proper estate plan in place.

If you die without an estate plan in Florida, the laws of the state will decide how your property is distributed. You have worked too hard to earn what you have to let someone else dictate what happens to it when you are gone. Having a validly executed will assures that your assets will be passed according to your wishes. However, all wills must go through a process known as probate. Probate involves the validating of a will and the subsequent distribution of the estate assets. Probate can be a time-consuming and arduous process. Depending on the size of the estate and complexity of assets, the process can take between six months and a few years. During this time, accounts are frozen as ownership is changed from the estate to the beneficiaries. This can lead to bills going unpaid, companies going broke, and even houses being foreclosed.

One of the best ways to avoid probate is to use a trust based estate plan. Trusts have multiple advantages over just avoiding probate, such as increased control over your assets and creditor protection for your beneficiaries. Using a will to distribute assets allows for you to decide on your beneficiaries, but once it is distributed, you no longer have any control. The asset belongs to the beneficiary. With a trust, you can dictate where the asset goes for multiple generations. This ability allows you to protect the assets from any creditors, divorce, or remarriage. Just as you worked too hard to let the state control your assets, you want to keep your assets in the family, instead of letting them go off to the family of your child’s spouse or a step-child. In addition to protecting where your assets go, a trust protects the inheritance from any creditors of the beneficiary.

Other assets beside those held in trust can be passed without going through probate. Bank accounts and retirement accounts such as IRAs and 401Ks pass using beneficiary forms. In fact, beneficiary forms will trump any contrary bequest in a will. For example, if you wanted your estate to be split 50-50 amongst your two children and had it that way in your will, but your beneficiary forms all only named one child, that child would receive all of the money and would be under no obligation to give any to the other child. Jointly owned property will also pass outside of probate.

Don’t just watch as NBA players and teams plan for their futures. Follow their lead and contact our South Florida estate planning attorneys today.

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)

Yesterday, after one hundred and twenty one minutes of play, the US Men’s National Team was eliminated from the 2014 World Cup by Belgium. Despite the loss, US goalie Tim Howard had a historic performance, recording a World Cup record 16 saves. Because of Howard’s outstanding plays protecting the goal, the USA was in the game until the final whistle was blown. Protection is the name of the game, whether it’s soccer or your assets and our attorneys can make sure all your goals are met.

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.

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