Florida Estate Planning Lawyer Blog

March 5, 2008

NFA Trusts – Certificate of Trust will not work

The BAFTE will no longer accept a certificate of trust with a Form 1 or Form 4 application for the purchase of Class III items. According to the person in charge of reviewing all trusts, all applications without the declaration of trust will be rejected.

There are many unique issues with Class 3 ownership and the typical trust does not deal with these issues. Please review the information on NFA Gun Trust to protect yourself and your family from the $250,000 penalty and 10 years in jail which are associated with the improper transfer or possession of these items.

To find a lawyer in your state who can help with a NFA Gun Trust please Contact an Estate Planning Lawyer

March 5, 2008

Florida Guardianship Procedures

by David M. Goldman

A person is qualified under Florida Law to serve as a guardian if he or she:

1. Is over the age of 18 years of age;

2. Is a Florida resident; or a non resident who is:

March 5, 2008

Anna Nicole Smith Baby Inherits Her Estate

by David M. Goldman

Florida Will's and Florida Estate Planning A Los Angeles judge has decided that the young daughter of former Playboy bunny and television personality Anna Nicole Smith will inherit her estate.

Although Smith’s will, drafted before her now 18-month-old daughter was born, gave everything to her son, Daniel, it also said she intended that the assets in trust for him be shared equally if she had future children, reports the Associated Press. Meanwhile, Daniel died, at age 20, three days after Smith’s daughter, Dannielynn, was born in 2006. Smith herself died about five months later, in early 2007, of an accidental prescription drug overdose.

She is perhaps best known as the young wife of an elderly Texas oil billionaire, J. Howard Marshall II. The two married in 1994, when she was 26 and he was 89. He died a little over a year later, and litigation over his estate is still ongoing. If Smith’s estate prevails or a settlement is reached, her daughter could potentially inherit millions, Reuters points out.

March 4, 2008

Charities Loose Battle over $8 Milliion Will Contest

by David M. Goldman

Only five weeks before his death Leonard R. Brener made a change to his will. He decided to change his beneficiaries form four local charities to his niece and her husband who took care of him while he was dying.

The non-profits were stunned and file a suit to battle over the money. The case took more than five years that the state appeals court recently ruled that Brener was mentally competent and his decision to leave the money to his family should stand.

The charities tried to argue that his change was unnatural because it would trigger significant estate taxes which he had previously stated he wanted to avoid.

March 3, 2008

Estate Planning for Pets

by David M. Goldman

Theresa Harrington of the Contra Costa Times has written about groups that encourage estate plans for pets. These are often referred to as Pet Trusts or may be included in a will with language that creates a testamentary Pet Trust.

She has found that it is suggested that $10,000 – $15,000 a year be set aside for the care of one’s pet.

“Most people think some relative will take them. Sometimes they do, and sometimes they don’t. She quotes, “From working in animal rescue, I see what happens to animals when their owners die. Approximately 500,000 pets are euthanized nationwide every year because they have gone into shelters when their owners passed away and homes couldn’t be found for them.

March 2, 2008

Will I Lose My Homestead Exemption if I add someone to my Florida deed?

by David M. Goldman

Adding names to the ownership of your home normally does not change your $25,000 Homestead Exemption, BUT you may lose all or part of the protection your property receives from the Save Our Homes (SOH) assessment limitation or “cap”. The SOH cap keeps the assessed value of your home from increasing more than 3% per year as long as you maintain your Homestead Exemption. A loss of protection from the SOH cap will increase the amount of property taxes you pay.

March 1, 2008

Will I lose my Save Our Homes Cap if I add someone to my deed?

by David M. Goldman

Maybe, depending on how you own the property (the “tenancy”), and if the new owner files for Homestead Exemption on your property. “Tenancy” is the term used to describe the way property is owned, the relationship between the owners, and what happens to the property when an owner dies. The most common forms of tenancy are: tenancy by the entireties, joint tenants with right of survivorship, and tenants in common. If two or more people own property with a homestead exemption, the type of tenancy that appears on the deed can have an effect on the “Save Our Homes” provision, and ultimately the amount of taxes that are owed.

If the new owner is your spouse, or someone who is legally or naturally dependent on you, he or she must apply for homestead exemption. Your current Save Our Homes cap will not be adjusted.

Joint Tenants with Right of Survivorship:

If the new owner is a joint tenant with right of survivorship, and he or she DOES NOT apply for Homestead Exemption, your SOH cap WILL NOT be adjusted.

February 29, 2008

Can I “undo” or cancel a deed that is already recorded?

by David M. Goldman

In Florida, if the wording of your current deed has consequences that you did not intend, you may want to consider a corrective deed. Please consult an Florida Estate Planning Lawyer , title company or other real estate professional to help you prepare your corrective deed. The Property Appraiser’s office cannot advise you, since there are many serious considerations that go beyond how homestead exemption is calculated, including income and estate tax consequences. We recommend that you never attempt to change your deed without the help of a Florida Lawyer
.

February 29, 2008

How to trandfer property and keep your Homestead Exemption and SOH Intact

by David M. Goldman

Are there other ways of transferring my property for estate planning that will not disturb my Homestead Exemption or SOH Cap?

Two methods of transferring your property will, in most cases, keep your Homestead Exemption and SOH intact: reserve a Life Estate for yourself or transfer your property to your trust. Please consult your attorney or estate planning professional before attempting either option.

If you transfer your property to a trust, your attorney should know that three criteria are required in order for your Homestead Exemption and SOH cap to remain intact:

February 28, 2008

No Florida Estate Taxes: What does this mean?

by David M. Goldman

When one dies the value of their estate is subject to an Federal Estate Tax. This rate is currently 45%. In 2008 the Federal government has an exemption of the estate tax on the first 2 million dollars in value. In addition, many states have additional state taxes that are due when a resident of their state dies. Florida use to have an estate tax, but repealed it when the federal government stopped allowing you to deduct the amount of state estate tax paid from the federal estate tax due.

You should check on the estate tax in your state and consider costs and benefits of your state versus those with no estate tax. One of the reasons so many wealthy people move to Florida is the lack of income tax and estate tax.

How much are estate taxes?