Estate Planning

June 20, 2007

Estate Planning and Discounts: Can a Fractional Interest In Artwork Be Discounted For Estate Planning Purposes

To discuss how this case may affect you, talk to your Florida Estate Planning Lawyer

In the recent case of Stone v. United States, No. 3:06-cv-00259, United States District Court for the Northern District of California (May 25, 2007), the declined to give a discount to the value of artwork.

Jacksonville, St. Johns, Duval, Orange Park, Amelia Island, Beach, rare art The Court reasoned that artwork in not fungible. From that, and the testimony of the experts (and commenting that unlike this case, sales of fractional interests in real estate sales had comparable sales evidence of discounts) the Court concluded, in general, that a hypothetical willing seller of an undivided interest in art would rather sell the whole piece and split the proceeds, then sell a fractional interest at a discount. Such a sale might be by agreement or might be by partition. But, because a partition could be sought, no hypothetical willing seller would accept anything less than full value.

June 18, 2007

Florida Pet Trusts

by David M. Goldman

This article has many interesting provisions that have been found in wills, but more common today are provisions dealing with trusts for pets.

Pet trusts are quickly becoming more common. Around 20 percent of pet owners include their pets in their wills. Florida have specific rules on how one can leave money or provide for their pets after their death. After years of resistance, more states are making it easier to set up a trust for a pet. A guardian is appointed to care for the animal and a trustee to take care of the finances.

People can be very detailed in planning their own funerals, down to requesting specific songs and Bible verses. “It’s less of a taboo topic,” said Leanna Hamill, an attorney from Hingham, Mass. “People talk about it more.”

June 17, 2007

Florida Wills: When do you need one?

by David M. Goldman

Amy Baldwin has a nice article on when people usually think about getting wills. Typically they get wills when they are married, buy a home, have a baby, get a divorce or go on a vacation.
She states that most estate planning lawyers say whether married or not, every adult, starting at 18 needs to have estate planning documents.

In general when people turn 18 they need to have a Florida medical power of attorney . With the new HIPPA regulations parents can not depend on being able to find out about their injured child and provide instructions for their treatment. In Florida and other states, many doctors will not release information to a spouse much less an adult child. Before your child goes to college, you should have him execute some common Florida Estate Planning Documents.

June 16, 2007

Estate planning: What will it do for me, my family and my business

by David M. Goldman

Florida Estate Planning: The “right plan(s)” will accomplish all your goals.

There are basically two types of plans: a lifetime plan that should start now (in the next two or three months), and a death plan (your will and trust documents) that can sit in a drawer until you go to business heaven. By far, the lifetime plan is the more important of the two. Let me say it loud and clear: Never, under any circumstances, can your will and trust accomplish your lifetime goals. Even worse, standing alone, your will and trust rarely accomplish your estate planning (death) goals. Remember, your death documents do absolutely nothing until after you draw your last breath.

And the 11 most common goals in Florida Estate Planning
As you read the strategies, think about the ones that match your goals.

1) Allow us to maintain our lifestyle for as long we live [intentionally defective trust, S corporation, family limited partnership, retirement plan].
2) Control my wealth-including my business-for as long as I live [voting/nonvoting stock for business, family limited partnership].

June 15, 2007

Florida Living Trust – 6 Tips for your Living Trust

by David M. Goldman

Here is a summary of an interesting article on Florida Living Trusts:
1) Florida Estate Planning To Avoid Probate Costs. A Florida living trusts can help eliminate the cost and delay of probate.

2) What About Taxes And Asset Protection In My Florida Living Trust. No Tax Benefit. Florida living trusts do not provide any tax benefits at all. All income from the trust passes through to the personal or joint tax returns of the Beneficiaries. No Asset Protection. Although Florida Living trusts can provide some asset protection in the event of a divorce, Florida living trusts do not protect assets from creditors or judgment lawsuits. If you personally own an asset, and if that asset is not protected or legally sheltered, and if you “lose in court”, then the litigating party or plaintiff will likely obtain a judgment order to reach-in to your living trust and legally remove the target asset.

3) Pick Your Trustee And Successor Trustee. If you want to personally direct your Florida living trust business, then as grantor or settler you can appoint yourself as the initial Trustee. Make sure to instruct for a successor Trustee who is the person, or institution (like a bank or law firm) who will have the actual job of distributing the assets according to your instructions, and complying with all filing and statutory requirements under Florida State law.

4) You’ve Got To Hire An Estate Planning Attorney – It’s The Law. Reviewing assets, preparing a revocable Florida living trust for inheritance matters, and entering into a legal service contract requires that the preparer be a Florida State bar certified attorney.
Continue reading

June 14, 2007

Florida Estate Planning: The value of a second opinion

by David M. Goldman

Florida Estate Planning Lawyers often build a Florida estate plan around two basic strategies: The first takes advantage of the unified credit. (This credit eliminates the estate tax on the first $2 million, 2007 and 2008, this credit rises to $3.5 million in 2009. There is no estate tax in 2010 (But there are taxes in the increase in basis – watch out for highly appreciated assets). In 2011, the estate tax credit falls to $1 million.) By using an A/B or two- trust arrangement (often called A/B Trust, or a marital trust and family trust), a Husband and Wife can each avoid taxes on their estate tax credit based upon the year of their death. Next, the Husband and Wife plans usually take advantage of the marital deduction, which means zero estate taxes when one of them passes on.

The traditional estate plan that we see in every state. If you have a plan it is probably similar to what is described above. The problem with this plan is that in some cases it only delays the IRS from collecting their money until the death of the second spouse.

Often by looking at a complete financial picture of the Husband and Wife as well as their family tree and desires, a custom estate plan can be created that will potentially eliminate one’s estate taxes (depending on the current law and future changes).

June 13, 2007

Conflict of interest between Husband and Wife

by David M. Goldman

As your Florida Business Attorney or Florida Estate Planning Attorney if there is conflict of interest when more than one person is going to be represented.

There is an interesting article in the Post Gazette today regarding potential conflict of interests between a husband and wife. Whenever a lawyer represents two or more individuals, there is always at least the potential of a conflict of interest, even when the clients agree about everything.

The article goes on to state that:

June 12, 2007

Florida Estate Planning: Wills and Trusts

by David M. Goldman

Clients often ask Estate Planning Attorney’sfor a Florida will or a Florida Living Trust. The seldom ask for a will and a trust even though in most cases this is what they need. Clients who want to skip probate and avoid the fees and delays associated with establishing and administrating a probate in Florida often request a Florida Living or Revocable trust. One of the big problems with creating a revocable living trust is that most people never fund them. In Florida, a living trust must be funded prior to the death of the grantor or it is not in existence.

The primary purpose of having a valid Florida Will along with the Florida Living Trust is that if the Trust is not in existence, the decedents Will will determine how the assets are distributed. The will often directs that any remaining assets be placed in the trust and the trust will determine how the assets are distributed. Often the will does not exist, so the will must specify how the assets should be distributed in case the trust doesn’t exist.

When you create a trust or trust/will combination please discuss what will happen if the trust is not funded, or you revoke the trust during your life.

June 11, 2007

Why use a Living Trust in Florida

by David M. Goldman

Everyone in Florida seems to be going crazy to setup a Florida living trust. Often we find ourselves asking why does this client need a living trust. In most cases they don’t, but if clients are looking for privacy, to save time or money on probate or have assets in excess of 1,000,000 a Florida living trust might be a good vehicle for their estate planning.

Much like a will, a living trust will describe what happens to your property in the event of your death. While you are alive, you can remain in control and have the power to change the trust at any time. Setting up a living trust allows you to avoid the expense and long delays of probate, and may even save you money on taxes.
Continue reading

June 10, 2007

Florida-Do it yourself Wills, Trusts and Estate Planning – Common mistakes made

by David M. Goldman

Often clients ask about Do it yourself living wills, wills, trusts, and other components of estate planning. I read an interesting post by an Estate Planning Attorney and although they are not in Jacksonville Florida their advice and commentary is very relevant. Basically with a will, you don’t often get a chance to correct mistakes or have a professional fix or review the document. The Estate Planning Lawyer compares it to buying a hair dye in a store and then getting a professional to fix your hair after you make a mess or do serious injury to yourself.

While this is true with business planning, often with estate planning there is no time to fix the mistakes. Often one discovers the mistakes in their will, trust, power of attorney only after it is to late to make any changes. Sure we could all go purchase a form, or use an online service and save some money, but if you are trying to protect assets, save money on probate, or reduce estate taxes, the few dollars saved (even if large by percentage) will often cost hundreds or thousands of times as much when the taxes come due.

Be careful with do it yourself kits and services, and if you have something to loose, remember that you often get what you pay for.