Florida Estate Planning Lawyer Blog

July 15, 2010

Tips for Selecting a Guardian for Your Minor Child

After having a child, one of the first decisions parents should make is deciding who the guardian of the child will be in the event both parents pass away. While many parents may talk about who they wish to take care of their child in the event of their deaths, it is important to include this decision in your estate plan to ensure the individual left with this responsibility is in fact the person the parents chose. Here are a few helpful hints when the time comes to make a guardian decision.

1) Will this person be a responsible guardian? Does the individual have the parenting skills necessary to care for your child and look after them properly?

2) Where does the potential guardian live? If you do not want your child to be uprooted from his home, you should pick someone who lives near you.

3) Is the potential guardian too old or too young to care for your child? The person selected should be physically able to care for the child. They should also be in touch with the latest issues children deal with at school and at home.

July 13, 2010

George Steinbrenner III Dies – Another billionaire in 2010

by David M. Goldman

Today George Steinbrenner, New York Yankees owner, died of a heart attack in Tampa Florida. The Yankees are valued at more than 1.6 billion dollars and have been run by his sons Hal and Hank for almost 2 years. Steinbrenner’s estate at the time of his death is estimated to be worth 1.15 billion.

We will learn more about his fortune and how he planned his estate in the next few weeks but The timing of Steinbrenner’s death could exempt heirs from estate tax like the other three billionaires who have died in 2010.

Steinbrenner moved to Floirda where there is no state estate tax as compared to NY which could have taxed his estate more than 16% or more than 160 million dollars.

July 13, 2010

Have your Will reviewed under Florida Law and with you change in circumstances

by David M. Goldman

Moving to a new state can often times be a stressful and exhausting process that takes careful planning. It is important to remember to visit a Florida Estate Planning Lawyer during the planning process to review your Florida Will. A common misconception of many people moving to Florida is that their out-of-state will is no longer valid once they arrive. A will signed by a non-resident of Florida is valid in Florida so long as the will complies with Florida statutory formalities and was valid in the state where the will was signed.

Contrary to other states, a Florida Will must be in writing in order to be considered valid. This means that verbal wills, or “deathbed” wishes, are not legally binding. Due to the fact that handwritten, or holographic wills, have the potential for forgery they are not valid in Florida either. NOTE: a holographic will is valid in FL if it complies with the statute of wills.

In Florida, an out-of-state will may be valid but unless it is distinctly drafted the provisions could be ineffective. For example, if you had named a friend as guardian of your minor children from your prior hometown before moving to Florida, this person probably will not be qualified under Florida statute to serve as guardian. Florida law requires that only a Florida resident, or close blood relative that resides out of state may serve as guardian.

July 12, 2010

Know Your Estate Plan and the Tax Consequences of it

by David M. Goldman

With the new estate tax laws that will soon be put in place, more Americans hard by the estate tax. However, there is more to estate planning than simple tax avoidance. Estate planning and Florida Estate Planning is about the legacy you want to leave behind after you are gone. Everyone will leave behind some sort of legacy therefore planning for it will enable others remember you the way you want them to.

There are four major goals that should be considered when legacy planning and working with a Florida Estate Planning Lawyer can help you understand and reach these goals more efficiently.

1. Financial security for you and your family is a priority. When you establish a legacy it usually entails providing money or other assets for heirs. It is important to know that your own standard of living is secure before you decide what to give to others. Once your lifestyle is secure, establishing goals for the ultimate disposition of your wealth can improve the financial security of others.

2. Continuing the management and care taking of the estate. In many estates, regardless of the size, assets can dwindle rapidly after the first owners pass them on to the next generation of beneficiaries. Often the successors of an estate do not understand how the assets were to be managed or did not share the same values of the founder. If you believe the people you want to benefit from the trust are not likely to manage their wealth properly over the long term, a trust can help manage these expectations and provide additional guidance for your descendants.

July 8, 2010

Has Your Florida Trustee Provided an Accounting of the Florida Trust?

by David M. Goldman

With Florida Trust Litigation on the rise, it is important that trustees preform their duties properly.

One of the primary duties of a Florida Trust trustee is to keep accurate records of all acts performed by him in regards to the trust estate. In Florida, trustees have this duty, known as an accounting, which requires providing these records to the trust beneficiaries. The trustee’s accounting should be a reasonably understandable report from the date of the last accounting, or from the date on which the trustee became accountable, that adequately discloses the information required.

Fla. Stat. § 736.08135(2) states the requirements of an accounting:

a) The accounting must begin with a statement identifying the trust, the trustee furnishing the accounting, and the time period covered by the accounting.

July 7, 2010

Florida Estate Battle Includes Millionaire Dogs and Pet Trust

by David M. Goldman

The stage has been set for a estate contest concerning the estate of Gail Posner. Gail is the daughter and heiress of the late millionaire business executive Victor Posner. In her recent will admitted to probate, Gail left $3 million in a Florida Pet Trust fund for the care of her three Chihuahuas so that they could maintain the lifestyle in which they were brought up. Gail’s only surviving child, Bret Carr, is challenging the Florida Will declaring his mother was coerced into changing the Florida Will by her caretaker and employees.

Despite the fact that Carr was awarded $1 million under the Florida Will, Gail’s maids, personal trainer, and bodyguard received a total of $27 million. Carr’s allegations state that the Gail made changes to her Florida Estate Plan while she had with mental problems and was addicted to painkillers. The son alleges this led to the brainwashing of his mother by those who sought to cut him out of his grandfather’s fortune.

While Carr’s main concern is not the Florida Pet Trust, it could certainly be affected by the decision that is reached by the judge. In the event that undue influence is found, the entire Florida Will could be invalid.

July 6, 2010

Naming Alternate Beneficiaries in Florida Estate Planning Documents

by David M. Goldman

An alternate beneficiary is a person or entity that you name in your Florida Will or Florida Revocable Trust to receive a gift or devise in the event that the direct beneficiary does not outlive you or is not fit to receive the gift because of a legal reason, disclaimer, or other provision in the document that would disqualify them. Many times when an elderly individual makes a Florida Will they assume their demise will be sooner than all of their beneficiaries. It is important to name at least one other person to take in the event a direct beneficiary dies before you. The following is an example what a gift might look like: “I leave to my son Aaron the house but in the event he predeceases me, the house should pass my brother Bob.”

Florida does provide some default language in most cases for close relatives. In Florida close relatives who predecease the person who leaves them something will have the item left to their children in many cases. Since this is not always what is desired or always the case, you should have any documents that are depending on this to be reviewed by an Florida Estate Planning Lawyer who is familiar with the provisions.

Although it is rare to think someone is not fit to take a gift, a child who stands to inherit a large sum of money may not be prepared to receive such a gift. Under this scenario, it would be wise to then name one or more alternate beneficiaries and place a condition on the child’s gift such as: “I give to my son Aaron $1,000 if he has reached the age of 25. In the event he is not yet 15, I leave the $1,000 to my cousin Barbara in trust for my son until he reaches the age of 25.”

July 5, 2010

Garnishments in Florida

by David M. Goldman

A garnishment is a way of collecting money from a defendant by ordering a third party (usually an employer) to pay money, otherwise owed to the defendant, directly to the plaintiff. Florida is one of the few states in the country to allow an exemption from wage garnishment. In Florida, the wages of the “head of family,” meaning the person who provides greater than 50% support for a child or other dependent, may be exempt from garnishment altogether. However, the wages are subject to a waiver and a cap on the earnings that can be exempted.

Florida statutory law provides the exemption from wage garnishment to the head of family’s disposable earnings if they are less than or equal to $750 a week. Disposable earnings are the earnings of any head of family remaining after subtracting the amount the government withholds from those earnings. In addition, individuals that make over $750 a week also qualify to receive the exemption unless they have agreed to a waiver in writing. The agreement to waive the protection provided must:

1. Be written in the same language as the contract or agreement to which the waiver relates;

July 2, 2010

Digital Asset Trust and Picture Sharring

by David M. Goldman

Digital Asset Protection Trust can help preserve your pictures and other website information after you die or if you become incapacitated.

Most picture sharing websites promote the freedom to assign ones property rights to another. While all of these websites prohibit reselling the account to another, Flickr was the only picture sharing website that prohibited the assignment of rights in their terms and conditions of use. This may be due to their affiliation with Yahoo! which has one standard user agreement for many of the websites they own.

Part of the appeal of picture sharing sites is that they allow many family members and friends to view your pictures. Although it may not be illegal to assign your rights to the pictures, they may be deleted automatically if your account is deactivated due to inactivity. Therefore, a Digital Asset Trust should be created to protect your Digital Assets from being destroyed when you pass away.

Picture Sharing Websites	Deactivation	Assignable
Flickr	“Extended Period of Time”	NO
Shutterfly	180 Days	YES
Kodak Gallery	Paid – 5 years Free Trial – 90 Days	YES
SnapFish	1 year	YES

For more information on how a Digital Asset Protection Trust can help you and your estate contact a Digital Asset Protection Trust Lawyer

July 1, 2010

What a Prenuptial Agreement Can and Cannot Protect?

by David M. Goldman

According to a recent statistic in the USA Today, a poll found that only 4% of married couples in the United States have a premarital or prenuptial agreement. Florida was reported as having one of the country’s worst divorce rates in 2009. Due to this alarming rate, Florida allows couples to enter into valid prenuptial agreements so long as there is full disclosure and the agreement is in writing and signed by both parties.

There are many important things that a prenup can protect. First, prenups can protect the rights and obligations of both spouses with respect to property. So if one spouse owned a car before the marriage, a provision could state that that spouse would be responsible for all payments on that car. The agreement can also protect a spouse’s individual right to sell or lease real property. Other common provisions include what career path a spouse may choose, where the couple will live, and cash penalties if one spouse cheats.

Since prenups cannot violate public policy or criminal law, there are a few things they cannot accomplish. Child support is always governed by state guidelines enacted by the legislature. These guidelines cannot be overridden by a prenuptial agreement between spouses. Given that prenup terms usually include outlining the disposition of property when the marriage ends as a result of death or divorce, it is vital to have an experienced Florida Family Law Lawyer or Florida Estate Planning Lawyer with you to represent your best interests.