Living Trust / Revocable Trust

November 25, 2008

FDIC Insurance $250,000 is only Temporary

The Emergency Economic Stabilization Act of 2008 temporarily raises the basic limit on federal deposit insurance coverage (FDIC) from $100,000 to $250,000 per depositor. WARNING the basic deposit insurance limit will return to $100,000 after December 31, 2009.

The rise in insurance coverage applies to most trust accounts with no more than five beneficiaries.

Some benefits of establishing a Florida Revocable Trust include of avoiding probate, transfer upon death of property,reduced taxes, and privacy.

November 24, 2008

2009 Annual Gift Tax Exclusion $13000

by David M. Goldman

The 2009 IRS annual gift tax exclusion is increasing form $12,000 to $13,000 for 2009.

This increase means that more money can be given away for estate tax planning purposes. For example, a married couple with two married children will be able to give away up to $104,000 in 2009 with no gift tax implications.

To discuss other ways of moving funds to your family or friends in order to reduce the effects of estate taxes, Contact a Florida Estate Planning Lawyer

November 3, 2008

Florida Trust mills and Michigan trust mills

by David M. Goldman

Florida has the same problems that have been identified by Christopher Berry, An Estate Planning Attorney in Michigan who writes the Estate Planning in Michigan Blog. Christopher recently wrote an article on The Problem with Michigan Trust Mills where he describes an occurrence that happens all over the country. I have previously written about this topic on several occasions in an updated piece entitled Living Trust Mills Winding Up In Some States UPDATED. In that article, I started a list of other articles dealing with Living Trust Mills:

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

4. Michael Bonasera wrote an article titledLiving Trust Scams/Trust Mills/Elderlaw Planning Seminars – STAY AWAY! where he Ohio’s history with Trust Mills and cites a case Ohio Trust Mill Case of Cleveland Bar v Sharp Estate Services, Inc. which seems to have ended Trust Mills in Ohio.

June 26, 2008

Florida Spendthrift clause or Trust

by David M. Goldman

Spendthrift clauses can be confusing to trustees. The general idea with a Florida Spendthrift clause is that the beneficiaries cannot assign their interest in the trust to a creditor ( voluntarily or involuntarily)

Here is the test found in a typical clause under the new Florida Trust Code

Spendthrift Provisions. Each trust created by this Trust Agreement shall be a spendthrift trust to the fullest extent allowed by law. Prior to the actual receipt of trust property by any beneficiary, no property (income or principal) distributable under any trust created by this Trust Agreement shall, voluntarily or involuntarily, be subject to anticipation or assignment by any beneficiary, or to attachment by or to the interference or control of any creditor or assignee of any beneficiary, or be taken or reached by any legal or equitable process in satisfaction of any debt or liability of any beneficiary, and any attempted transfer or encumbrance of any interest in such property by any beneficiary hereunder prior to distribution shall be void.

The most common application of a Spendthrift Provision is to protect against involuntary assignment or bankruptcy.

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.

April 29, 2008

What are the pros and cons of a Florida Revocable Trust?

by David M. Goldman

A Florida Revocable Trust is a useful estate planning tool. They can be used for many functions including disposition of one’s assets upon death. In my practice I use Florida Revocable Trust for the purchase of Class 3 items which are controlled by the NFA, to provide for pets and animals after death, and to hold assets. Each type of Florida Revocable Trust has unique language and purpose.

In addition there are several benefits in using a Florida Revocable Trust to dispose of property over a will. These include the following:

1: No Florida Probate is required for assets that are in a living trust at the time of death. Although this is the most common reason people use a Florida Revocable Trust it is not the only reason. Many times there are other ways of accomplishing the same results with payable on death designations or having assets held in the name of more than one person. Other property such as retirement accounts, life insurance and those with beneficiaries will pass to your beneficiaries on their own without a Florida Probate.

April 22, 2008

Putting your Bank Account in Your Revocable Living Trust.

by David M. Goldman

The Ca Estate Planning Blog has an article on how to put your bank account in your Florida Revocable Trust . It is one of the most important things that can be done after setting up your Florida Living or Revocable Trust.

If you have not funded your Florida Revocable Trust please Contact a Florida Estate Planning Lawyer to make sure it is funded properly.

April 18, 2008

Second Marriage and Life Insurance

by David M. Goldman

As the second marriage becomes more popular, it becomes more important than ever to protect your life insurance for your children. I received a call today where the second wife had changed the life insurance benefits to her name, as might be expected. Five months later the father of two children died. The second wife will receive all the benefits of the life insurance and non will go to help support the fathers biological children. When the wife dies, it is likely that the money will go to her biological children and the fathers children will receive nothing. What this the intent of the father? Probably not? Can anything be done to protect your assets for your descendants? yes

How can you allow a portion of the money to be available for the benefit of a second or third wife and give part to your biological children. One way is through changes in the beneficiary designations. Although this can be difficult and some companies require the consent of the spouse, it is not impossible.

The better way, is to set up a revocable trust. The trust can designate who you would like to receive the proceeds and how you want the money distributed. Even better, once you create the trust, you can amend it.

April 8, 2008

Florida Pet Trusts

by David M. Goldman

Many pet owners think of their pets as part of their family. Legally pets are considered personal property like a car or jewelry.

If you are sick, injured, or unable to care for your pet and have not planned ahead, your pets may not be taken care of by the person you want. They may be managed like your other personal property.

Upon your death, your pets will pass as residual property under your will or your states intestate laws.

March 17, 2008

Preneed Guardian Not Appointed: Court looks at Best Interest of Ward

by David M. Goldman

Miller v. Goodall, 958 So. 2d 952 (Fla. 4th DCA April 25, 2007)

A daughter filed a petition to determine her mother’s incapacity and be appointed as guardian.

The ward’s sister (daughter’s aunt) also filed a petition seeking to be appointed as plenary guardian.