As President Barack Obama officially declared the Boston Marathon explosions “acts of terrorism,” Americans were quick to rally and show off the true spirit of our nation.  Tons of Boston businesses handed out supplies and offered safe havens for all affected.  Hotlines opened up as did blood banks throughout the US and in South Florida.  And as always, the donations of generous Americans started rolling in.

In the wake of yesterday’s tragedy, we are reminded with just how fragile life is and how lucky we are.  Many of us want to donate to charities that help victims and their families.  For those fortunate enough to make sizeable donations, the US government rewards such gratuity.

A smart way to qualify for income tax and estate tax deductions are through two common estate planning techniques known as Charitable Lead Annuity Trusts or Charitable Remainder Trusts.      Charitable Lead Annuity Trusts (“CLATS”) allow an individual to transfer their assets to a beneficiary upon their death who can then donate the assets to a charity of their choosing.  This will be treated as a charitable deduction and can substantially reduce your overall federal estate tax.   A Charitable Remainder Trust (“CRT”) is an irrevocable trust.  Once created, this trust distributes a portion of its assets at least once a year to a non-charitable beneficiary.  After a specified number of years or upon the death of the trustee, the remaining balance in the trust is donated to a designated charity.  This type of trust can immediately reduce an individual’s taxable income.

But the intricacies of such charitable trusts are best handled by experienced Florida estate planning attorneys.  For more information on Florida income tax and estate tax deduction 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

Athletic officials from the New Jersey University, Rutgers, announced the early termination of their infamous Men’s Basketball Coach, Mike Rice.  The decision was based on a videotape depicting Rice hurling balls and gay slurs at his players.  As ESPN broadcast the incriminating footage, Rice’s behavior can be summarized in one word…foul.

Everyone from LeBron James to Governor Chris Christie weighed in on the coach’s shameful behavior. The inevitable decision to fire Rice 3 years into his 5 year contract sealed the fate on his career.  Rice will be forced into an unexpected early retirement.  Given the state of our economy, many South Florida residents have also had to face the prospect of an early unexpected retirement.

So what happens when you find yourself without the steady income of a job and bills to pay?  Though it is best to avoid taking money out of your retirement plan, emergency situations such as job termination, divorce, sickness, and economic crashes can get the best of us.  You may be pleasantly surprised to find out that there are some instances when you can take money out of your retirement plans without paying the 10% federal penalty imposed by the IRS.

Here is a list of Uncle Sam’s most common exceptions:

• Borrow from your own 401(k). You can legally borrow up to $50,000, or half your vested balance, whichever is less, from your 401(k).  Most big firms allow these loans and give you up to 5 years to repay it without any taxes or penalties.  However, if your job terminates for any reason, your ex-employer will likely demand repayment, otherwise the outstanding balance will be treated as an early distribution, subject to penalties.
• Paying Large Medical Bills.    You can request a distribution from an IRA or 401(k) without any penalties for CERTAIN medical expenses.  Note that only expenses that are more than 10% of your adjusted gross income will qualify.
• Paying for Health Insurance.  If you become unemployed, you can take money out of an IRA account (not a 401K) to obtain health insurance for yourself, spouse, and dependents, without paying a penalty.  To qualify, you must be collecting unemployment for at least 12 weeks and this exemption ceases 60 days after starting a new job.
• Disability. If you become disabled before age 59½, you may be able to take penalty-free distributions from an IRA. However, you must carefully understand what qualifies as a permanent physical disability that prevents you from being gainfully employed, as per Uncle Sam’s legal and medical guidelines.
• Inheriting an IRA.  If you are the beneficiary of a deceased owner of an IRA, you can take money from an “inherited IRA” without penalty at any age. Note that if you roll the inherited IRA into your own name, you lose the ability to take out money without paying the penalty. Note that unlike an IRA, a 401k will automatically transfer to a surviving spouse no matter who the designated beneficiary is.
• Paying for Education. You can take money out of a pre-tax IRA account to pay for undergraduate or graduate tuition, books, supplies, and fees for yourself, your children, or grandchildren.  Be careful however, because IRA withdrawals will count as income and MAY limit eligibility for financial aid for the following year.
• First Home Purchase.  You can take up to $10,000 penalty-free from an IRA (not a 401K) to pay for the purchase or building of your first home.  If both you and your spouse will be first time homeowners, the amount doubles to $20,000.

But with all of these tips, the devil is in the details.  It is always best to seek the advice of a well-seasoned Florida attorney before making any major financial decisions.  With the help of our experienced South Florida estate planning attorneys, we can make the complex United States tax-code work for you, no against you!

For more information on successful Florida early retirement tips 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

This week the Supreme Court is grappling with two landmark cases addressing the ban on gay marriage.  The legislation at the forefront of these debates:  Proposition 8 and DOMA.  The court will ask: Are they gender based-classifications, and if so, can such discriminatory laws exist?

Proposition 8 is a California constitutional amendment, passed in November 2008, stating that “only marriage between a man and a woman is valid in California.” Proposition 8 overturned California’s previous Supreme Court’s ruling which recognized that same-sex couples “have a constitutional right to marry.”  DOMA, or the Defense of Marriage Act, is a United States federal law that defines marriage as the “legal union of one man and one woman.”  DOMA was signed into law by President Bill Clinton in September 1996.

While we hope that gay marriage will get passed through Congress soon, couples are still legal strangers under federal law and in most state laws, including Florida.  Even Justice Anthony Kennedy at the Supreme Court acknowledged that there is an “immediate” legal harm to those same-sex couples who cannot be married.

Unless gay couples take advantage of proper estate planning, the truth is that same-sex unions are not recognized and do not have the same legal protections as traditional married couples.  Based upon civil union status, your partner will most likely inherit nothing upon your death and could even be forced to move out of your shared home.  Imagine a scenario with an unmarried couple where one partner dies and there is no will in place.  Legally, the remaining partner does not automatically inherit the shared home, assets, or any of their partner’s personal effects.  Futhermore, same-sex partners in Florida have no legal rights in the following areas:

• No elective share, or inheritance of a portion of the deceased’s estate.
• Not considered next of kin regarding decisions about your partner’s medical treatment when your partner is incapacitated.
• Not considered next of kin regarding hospital visitation rights.
• Not considered next of kin regardingdecisions about your partner’s burial services.
• No protective tax treatment in terms of IRA’s and retirement plans.
• No shared access to their partner’s Social Security benefits or Medicare benefits.

Don’t just sit idle hoping that the government will make the right decision and protect you.   Make sure your beloved partner is protected upon your passing.  At Wild Felice & Partners, we can work with you to draft a comprehensive estate plan to recreate some of the rights and benefits of traditional married couples.

Some key elements include:

• Last Will and Testament to ensure that your estate is not blindly distributed according to intestacy laws.
• Living Will which will specify how you would like to be taken care of in case of incapacity.
• Designation of Health Care Surrogate which will allow yoursame-sex partner to give informed consent for your medical treatment.

Our South Florida law firm treats estate planning in terms of a married couple, so the fee plan for a same-sex couple will naturally get the same treatment.  For more information on how to plan for your partner’s future, contact our South Florida law firm of Wild, Felice & Partners, PA for a free consultation at (954) 944-2855.

Many individuals in Florida are excited to celebrate the upcoming Passover Seder by eating the Matzoh and drinking the wine.  But did you know that “seder” actually means “order” in Hebrew?  This “order” is seen by the 15 parts that make up the rituals of the Passover Seder dinner.

This starts with a pre-Passover spring cleaning and destroying chametz.  Once the holiday arrives, the story of the Exodus is retold through a reading of the Haggadah.  Next comes the most memorable part of Passover, the Seder dinner.  On the table should lay a handful of symbolic foods:  “matzoh” to symbolize the haste with which the Israelites fled Egypt; “zeroah” or roasted lamb shank, to symbolize the sacrificial offering; “maror” or bitter herbs to symbolize the bitterness of slavery, and “beitzah” a roasted egg, as a symbol of life and perpetual existence.

Some serious time and thought goes into planning for Passover and the Seder dinner.  The reason is because we want to preserve our heritage and pass on the legacy to our children and grandchildren.  As you prepare and get things in order for this year’s Passover Seder, put some thought into organizing your Estate Plan and future financial goals for once you pass on.   Creating an estate plan with specific designations can ensure that you pass on your legacy to each family member exactly the way you envision it.

At Wild Felice & Partners, we take customer service very seriously.  We pride ourselves on working together with our clients to set and achieve the desired outcome.  No estate plan is ever cookie cutter.

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. 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

Today Pope Francis, the 266th pope and first from South America, celebrated the official start of his papacy in St. Peter’s Square.  Approximately 200,000 onlookers cheered and waved flags representing a wealth of nations.  The pope’s message was as clear as the bright blue skies above, “I want to ask you to walk together, and take care of one another.”

Stressing that being a “protector” applies to all of humanity, Pope Francis called for mercy and compassion.  “I would like to ask all those who have positions of responsibility in economic, political and social life, and all men and women of goodwill: let us be protectors of creation, protectors of God’s plan inscribed in nature, protectors of one another and of the environment.”

How can we apply the Pope’s words to our daily lives in Florida?  Don’t just tell your beloved family members that you will protect and care for them.  Show them by setting an appointment with your South Florida estate planning attorney today.  Creating an estate plan with specific designations can ensure that each family member is protected exactly the way you envision.  Our South Florida firm routinely utilizes a variety of estate planning tools, including Trusts, Wills, Powers of Attorney, Health Care Surrogates, Funding Techniques, and more.

The pope has relayed his message and so should you.  Act now and become the protector of your family 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

Throughout the world Shamrocks are a symbol of all things Irish. But did you know they are also symbols of wealth, financial growth, and bling bling?

In Ireland cows depended upon the shamrock (a type of clover) for food. As the clovers grew thick on Irish farms, farmers knew it meant a prosperous winter lay ahead. The proverbial Irish saying “in the clover” equates to Florida’s version of “having deep pockets.”

Regardless of the size of your plot of land this Saint Patrick’s Day, having your South Florida estate planning attorney review your asset protection goals is beneficial to everyone. Estate planning is about providing for those family and friends 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 these dreams together. If you don’t protect your hard earned assets now, there may not necessarily be a “pot O gold” awaiting your loved ones at the end of your path.

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