It wasn’t long ago that animals had no rights when their owner died. Today you make a difference in your Pet’s life after you are gone.
Estate planning for pets gained momentum during the 1990s, and pet trusts are now legal in most of the 50 states, including Florida.
A smooth transition
Ideally your estate plan will be created by a Florida Estate Planning Lawyer, yourself and some or all of the following people:
1. Mother and Father 2. Tax Attorney 3. CPA 4. Financial Advisor 5. Trust Officer 6. Insurance Professional 7. Business Valuation Expert 8. Philanthropic Consultant 9. Fundraiser/Planned Giving Officer 10. Family psychologist or family facilitator
The likelihood of involving these people decreases as you go down the list, and increases as the amount of money involved in the plan increases.
Although children or heirs are almost never included in the preparation of these documents. It might be wise to have a meeting with them once they are prepared or in the later states so that the documents can be discussed. This is a time when any disputes of misreading the documents or their interpretations can be resolved.
Today I found an article on where an individual purchase a preprinted will form and filled in the blank space incorrectly. He hand wrote:
My shares of Lee Bros. Holding Co. My property of 817 North Park St., Victoria, B.C. and 35% of cash & bonds to my brother Horace. 35% to my sister Estelle of cash & bonds. 35% divided evenly for my sisters Elsie, Edythe, Effie and my brothers Harold & Henry of cash & bonds.
A few months later Mr. Henry Lee died with over $2,600,000 in assets. Apparently the will was witnessed prior to the blank being filled in and this did not meed with the formal requirements of a will.
The Rule of Law has an extensive review of this case.
When was the last time you sat down with someone to review your Floria trust, Florida will, Florida power of attorney, health care directive, and other documents intended to make sure that your assets will be managed and distributed according to your wishes? If it has been longer than a year, you are probably overdue for an estate planning check-up.
Changes in your assets
Acquiring different of assets or changes in the value of the assets may require Estate Planning that was not anticipated.
The Ferrell Law Firm in Memphis bloghas a series on Living Trusts vs. Wills. Many of the issues discussed are similar to those in Florida. For those of you who are unsure as to whether you need a living trust, will, or both you might review their 4 part article.
Their Answer to “How can a living trust save on estate taxes?”
If you die in 2007 or 2008 and the net value of your estate (assets minus debts) is more than $2 million, federal estate taxes must be paid on the excess at a rate of 45%. If you are married, your living trust can include a provision that will let you and your spouse leave up to $4 million estate tax-free to your loved ones, saving up to $900,000 in taxes.
Last week I had a client call me about a Probate problem? It turned out that this client had used a Do it yourself Will Program that was online ( LEGALZOOM). Her husband executed his will, but she did not. Then her husband died. The problem is that because her husband had a bank account in his name and did not have a Payable on Death designation, the bank account needed to go through probate.
This could have happened if a lawyer had prepared the will, but the lawyer would have probably inquired into the title of the assets in his possession. This little mistake cost $1500 in probate fees.
The odd thing is that she doesnt want her will or assets reviewed by an attorney because it will cost around $100. Some people never learn.
Many couples and individuals want to place no contest clauses in their Florida Wills. The purpose of a no contest clause in a will is to keep the beneficiaries heirs from fighting over who gets what or how assets are distributed upon your death.
In many states no contest clauses become fights over the language used in the Florida will. Florida does not recognize no contest clauses for Florida Wills. Although it is possible to have a no contest clause if the laws of another jurisdiction or state are chosen to govern the will.
One example of a no contest clause that was struck down in Louisiana is found on Your Louisiana Estate Planning Blog. The article mentions a clause which stated that if any “named legatees should contest any provision in this will, then the naming of that person in my will shall be struck and they shall not be considered to be a legatee.”
Kimberly Palmer of U.S. News & World Report wrote an article on the Alpha Consumer Blog where she discussed these issues. Her reader wrote:
My husband, who is retired, has dementia. He responds to credit card offers in the mail and charges things to them, even though he shouldn’t, because he is on limited Social Security disability income. He knows better, but his mind is weak. He always says he won’t use the cards, but he still does. Even if I cut the cards in half, more come in the mail. We are now in $15,000 of debt, and it continues to rise. How can I get him to stop making charges? Will I be responsible for the debt, even if he passes away before I do?
She offers several solutions including 1- using http://www.optoutprescreen.com/
2- using a credit monitoring service.
Gerry Beyer, author of the Wills, Trusts & Estate Professors Blog has an interesting article on a novil service called Deathswitch. This service could be used to provide some of the services I have discussed in relation to the Digital Asset Trust.
There are many things that people may want to be handled a certain way after their death. Deathswitch.com, offers peoplethe ability to send messages or inform people in the event they are critically injured or disabled.
Deathswitch is an automated system that regularly prompts users for a password. If the user fails to respond timely, the system assumes that he or she is dead or critically disabled and e-mails pre-scripted messages. Each person can pick the frequency of the prompts and the maximum time to respond. These time-frames can range from one day to one year. Gerry Beyer states that some of the ways in which Deathswitch can be used include:
Whether you live in Jacksonville Florida or anywhere in the United States, you should find this guide helpful in educating yourself on what the various estate planning documents are used for.
This Guide is downloadable in its entirety; or it can be viewed online by chapters, all in PDF format, which include:
Ch. 1: Getting Started
