Estate Planning

June 12, 2008

Florida QPRT (Qualified Personal Residence Trust): Options

Florida QPRT (Qualified Personal Residence Trust): Options:

Often clients want to make sure their homes go to their children. In Florida, a homestead will automatically go to your descendants and be protected. One of the problems is that although the home is generally not subject to Florida Probate, the value of the home at the time of their death is subject to estate tax. Once option of leaving a home to children is to use a special trust designed for the home. There are many advantages and disadvantages of using a Qualified Personal Residence Trust in Florida (QPRT).

Andrew Ewalt recently wrote an article on this on his Legal Blog where he listed the basic Pros and Cons. It is important that there are risks involved with a QPRT and each persons situation needs to be evaluated to determine if this is the right way to deal with the transfer of one’s Florida Homestead. QPRT’s are not for everyone, and many who used them in the past have ended them because of the changes in tax laws and how they impact their individual estate plan. As with all Florida Estate Planning it is important to review and update you estate plan on a regular basis.

June 11, 2008

LIMITATIONS OF POWERS OF THE ATTORNEY IN FACT AND LIMITATIONS IN FLORIDA

by David M. Goldman

POWERS OF THE ATTORNEY IN FACT AND LIMITATIONS IN FLORIDA

Except as otherwise limited by statute (below), by other applicable law, or by the durable power of attorney, the attorney in fact has full authority to perform, without prior court approval, every act authorized and specifically enumerated in the durable power of attorney. Such authorization may not include:

1. Perform duties under a contract that requires the exercise of personal services of the principal;

June 10, 2008

PROPERTY SUBJECT TO DURABLE POWER OF ATTORNEY IN FLORIDA

by David M. Goldman

PROPERTY SUBJECT TO DURABLE POWER OF ATTORNEY IN FLORIDA.
Unless otherwise stated in the Florida durable power of attorney, the durable power of attorney applies to any interest in property owned by the principal, including, without limitation, the Principal’s interest in all real property, including homestead real property; all personal property, tangible or intangible; all property held in any type of joint tenancy, including a tenancy in common, joint tenancy with right of survivorship, or a tenancy by the entirety; all property over which the principal holds a general, limited, or special power of appointment; chooses in action; and all other contractual or statutory rights or elections, including, but not limited to, any rights or elections in any probate or similar proceeding to which the principal is or may become entitled.

If you have questions about the validity or scope of your Florida Durable Power of Attorney Contact a Florida Estate Planning Lawyer

June 9, 2008

Guardianship and Durable Power of Attorney in Florida

by David M. Goldman

Once an Agent (Attorney in fact) receives written notice which requires a signature, their powers under the Durable Power of Attorney are suspended until the court determines incapacity. The court may reinstate the Durable Power of Attorney for an emergency, when a petition if file upon the court showing the nature of the emergency, the property or matter involved, and the power to be exercised by the attorney in fact.

Notwithstanding the provisions above, a proceeding to determine incapacity must not affect any authority of the attorney in fact to make health care decisions for the principal, including, but not limited to, those defined in chapter 765, unless otherwise ordered by the court. If the principal has executed a health care advance directive designating a health care surrogate pursuant to chapter 765, the terms of the directive will control if the two documents are in conflict unless the durable power of attorney is later executed and expressly states otherwise.

If the person has not received written notice of the proceeding for which they were required to sign for, any third party may rely upon the authority granted in a durable power of attorney that is not conditioned on the principal’s lack of capacity to manage property until the third party has received the required notice. A third party may, but need not, require the attorney in fact to execute an affidavit.

If the Durable Power of Attorney is deployment contingent, any third party may rely upon the authority granted in a durable power of attorney to manage property as defined in Florida Statute 744.102(11)(a) only after receiving the affidavits provided in paragraphs (c) and (d), and such reliance shall end when the third party has received notice.
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May 29, 2008

Attorney for Wills

by David M. Goldman

When Selecting an attorney for will preparation it is important that they take a look at your full financial condition. Often clients think they want an attorney for will preparation but in fact need other types of estate planning.

You should be prepared to give full financial disclosure as well as all information about your family dynamics to make sure that the right Florida Estate Planning Documents are created for you.

May 28, 2008

Estate Planning and Moving Overseas

by David M. Goldman

Often clients do Florida Estate Planning in anticipation of an overseas trip or international relocation. They often ask if they should make special considerations because of their anticipated location.

Generally we advise clients that the planning is basically the same even if they will be living overseas for an extended period of time. The one area where there may be differences is in their Durable Power of Attorney where it might be advisable to make changes.

These changes require an evaluation of the current and anticipated needs of the individual client and cannot be generalized.

May 23, 2008

Living Trust Mills Winding Up In Some States UPDATED

by David M. Goldman

Although there are no current verdicts against Florida Companies, many states have taken action against living Trust Scams / Trust Mills / and Elder Law Planning Seminars. Michael Bonasera of Buckingham Doolittle & Burroughs, LLP and author of the The Ohio Trust & Estate Blog wrote an article titled Living Trust Scams/Trust Mills/Elderlaw Planning Seminars – STAY AWAY! where he mentions a previous posting on this Blog, Florida Estate Planning Lawyers Blog, on a similar topic dealing with a Texarkana Arkansas class action suit.

I thought I would start a list of Living Trust Scam Articles and resources on my blog.

1. Texarkana Arkansas Living Trust Seminar Class Action suit

2. California Living Trust Mill Judgment 3.Texas Bar story reported by Professor Beyer of Wills, Trusts & Estates Prof Blog- Living trust Scams and Senior Consumer

May 21, 2008

We the People franchise found to be practicing law without a license

by David M. Goldman

There are many places to get advice on the Internet. Be sure when you are looking for legal advice, you are working with a licensed lawyer. Below is the finding of the Ohio State Bar in regards to one such service.

We the People is a franchise that provides forms and help in legal matters including wills, trusts, divorces, bankruptcy and other areas of law.

The Ohio State Bar found that they were practicing law without a license because they were owned and operated by attorneys not licenced in Ohio and advised individuals with respect to the completion of forms for filing a personal bankruptcy, application of probate, advising individuals on how to complete the forms and what answers to put down, directing individuals to execute documents and charging them for services, instructing completion of forms in disregard for proper procedures and determination by the Bankruptcy Court that the filing was incomplete, preparation of unnecessary and incorrect form for administration of an estate, preparing improperly completed forms for a bankruptcy, issuing advertisements, and advertising the preparation of services for living trusts, wills, powers of attorney, and incorporation’s.

May 16, 2008

Enhanced Life Estate Deed Question. What happens when the owner of the Remainder Interest predeceases the life tenant?

by David M. Goldman

A *Florida Enhanced Life Estate Deed or Florida LadyBird Deed (Enhanced Life Estate Deed) is designed to pass the property if any to a person upon the death of the life tenant while allowing the life tenant to do anything during their life.

What happens if the person named in the remainder interest predeceases the life tenant?

This is From A to B for life (with enhanced powers) remainder to C.

May 13, 2008

What is the difference between a Living Trust and a Bypass Trust?

by David M. Goldman

A Florida Living Trust is a Florida Revocable Trust created while a person is alive, while a Bypass Trust is usually a testamentary irrevocable trust. Some Bypass Trusts are created by a Living Trusts or even Florida Will.

A Trust is an ownership arrangement where property is held in the name of a “trustee” rather than in the name of the person who really owns the property. It is a separation of legal and equitable ownership. People often create Living Trusts for their own benefit, to avoid probate, address the possibility of future incapacity, or keep their finances private.

Normally, the person who creates a Living Trust names himself or herself as trustee and as beneficiary. Upon that person’s death, all or a portion of the property which remains in the Living Trust passes according to the terms specified in the trust agreement.