Living Trust / Revocable Trust

September 20, 2007

Florida Trust Accounts: Should the Checking Account Be Held In the Name of the Trust?

When you create a Florida Revocable Trust, your Florida Estate Planning Attorney should advise you on how to title accounts.

One common question is about checking accounts. In most cases, the title (ownership) of the checking account should be changed to the name of the Florida Living Trust or Florida Revocable Living Trust, or Trustee of the trust. If on the date of death, the amount in a personal account has not become property of the trust, it may be necessary to open a Florida probate.

NOTE: The checks do not need to show the trust name and reference to the trust may be omitted for check cashing. The signature cards need to be updated to reflect the way in which checks will be signed. When doing this its best not to close the accounts as outstanding checks could bounce and create unnecessary expenses.

September 19, 2007

Florida Estate Planning: Paperless Records Leave Heirs in the Dark

by David M. Goldman

September 18, 2007

Florida’s New Trust Code is Retroactive

by David M. Goldman

September 16, 2007

Florida Estate Planning: Financial Details

by David M. Goldman

When you die, someone has to know hot to determine or what the details of your financial life are

It is important to make a comprehensive list of assets, liabilities, life insurance policies, power of attorney, Florida will, credit cards, details of bank accounts and all other important financial information.

The problem is that once you pass away, an executor or personal representative has to go through all of your document to figure out where assets may be located.

September 13, 2007

Digital Property After Death

by David M. Goldman

August 29, 2007

Helmsley and her dogs 12 Million dollar Pet Trust

by David M. Goldman

In Florida there are limitations on Pet Trusts and the courts would likely find that $12 Million for a dog would be excessive and strike all or part of the trust.

Jacksonville, Duval, St. Johns, Estate Planning Attorney Leona Helmsley’s Dog was left a $12 Million dollar trust fund. In addition the Maltese, named Trouble will be buried alongside her and her late husband in a mausoleum. Leona also left 3 Million for the perpetual care of the mausoleum.

While the press and blogs are making a big deal over the dog getting $12 million, everyone fails to see the costs she is incurring because of probate. She left the majority of her money and property (rumored to be in excess of 1 billion dollars) to a Family charitable trust. The legal fees on handling this administration could be in excess of $60 Million dollars. If she would have put this money in a Revocable Trust or Living Trust there would be no probate fees to transfer the Billion dollars to the charity.

August 14, 2007

Validity of Florida Arbitration Clauses

by David M. Goldman

Recently the Florida statutes changed to allow for arbitration clauses in Florida Revocable Trust Agreements. When including an arbitration clause in a Florida Revocable Trust one needs to make sure the arbitration clause will be enforceable.

Below are some issues with arbitration clauses in Florida that need to be considered whether used for Florida Business Contracts, Transactions in Florida, or Florida revocable trusts. Luckily the US Supreme Court has ruled that if an arbitration clause is invalid, the clause can be removed from the agreement and the underlying agreement can still be valid.

Florida Arbitration Clauses
An agreement to arbitrate, or a provision in a contract providing for the arbitration of disputes, is valid, enforceable, and irrevocable without regard to the justiciable character of the controversy. The only questions for a court to determine when looking to see whether an arbitration clause is enforceable are:

1. Whether the agreement that contains the arbitration clause is valid?
2. Whether the parties have a valid arbitration agreement;
3. Whether an arbitrable issue exists; and
4. Whether the right to arbitrate has been waived.

July 30, 2007

Florida Gun Trusts or National Firearms Trust

by David M. Goldman

If you live in a Jacksonville or another city in Florida where the Chief law Enforcement Officer (CLEO) will not or easily sign a Form 4, there are several solutions.

Title II Firearms (sold by Class 3 SOT dealers) include suppressors, , short barrel rifles, machine guns, and other destructive devices.

The most common solution is to create a revocable trust to hold title to the firearm or class 3 items you desire to purchase. There can be many problems with a typical revocable trust and firearms. Its best to use a Firearms Trust or NFA Gun Trust

A Gun Trust, Firearms Trust, Limited Liability Company, or Florida S Corporation is a legal entity established under state law. For NFA purposes many individuals prefer the a Revocable Trust over a corporation or LLC because it is less expensive to operate and provides privacy. Florida Business entities typically cost $150 a year for the state filings in addition to the cost of a CPA to prepare and file the federal filings. In addition, Florida Trusts don’t require any disclosure or public filings. The lack of any required filings means, the only people who know the terms of the trust are those you choose to tell.

Although most Florida Revocable or Living Trusts can hold firearms or other class 3 items, many are not properly setup to deal with the issues involving firearms and other items which are regulated by the National Firearms Act (NFA). If the NFA is violated, the owners are subject to criminal penalties, substantial fines, and forfeiture of not only the class 3 items in question but all firearms in the possession or ownership. ($250,000 penalty, 10 years in prison, and forfeiture of items)

The gun or firearms trust must give the Trustee instructions and special powers so that they can legally manage for unplanned events. Weapons and other assets in a Firearms Trust can not be distributed like other assets upon the death or incapacity of the person who placed the items in the trust(The Grantor or Settlor).
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July 11, 2007

Florida Trusts & Real Estate

by David M. Goldman

In Jacksonville or other cities in Florida, there are many advantages to using a Revocable Living Trust or Florida Land Trust to hold title to real estate. Dyches Broddiford has an interesting article dealing with many of these issues.

In summary a real estate trust provides:

– Privacy for the owners;

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.”