Marital termination in South Florida entails major estate planning complications. Spousal support, asset division, and the care and custody of minor children must be effective addressed and properly resolved. Failure to perform comprehensive estate planning after divorce is a common – but devastating – financial error. Following are the main estate plan components that typically require major overhaul in the aftermath of divorce:
Your will
All estate plan modification efforts must begin with this core document. Asset distribution and personal representative designation are the two reasond most likely to mandate revision. Such amendments are easily accomplished by either rewriting its entire contents or preparing a specialized addendum called a “codicil.”
Trust terms
Thoroughly review the terms of any existing Revocable Living Trust (“RLT”). Perform this perfunctory task whether or not an RLT was established while you were married. RLT Trustee and beneficiary designations are easy to alter. Amending the terms of other types of trusts is typically more complicated and usually results in the termination of any concurrent tax advantages. Consult a qualified Florida estate planning attorney for accurate advice and competent assistance with this post-divorce estate planning aspect.
Life Insurance Policies
You will likely desire a beneficiary re-designation in light of your changed domestic situation. Most of the time, this can be done simply by contacting the insurer who issued your policy. If you take this step prior to final entry of a Divorce Decree, be aware that courts commonly consider any accumulated cash value(s) of universal or whole life contracts to be marital assets. Thus, such funds may be subject to subsequent
equitable distribution in any negotiated or court-ordered divorce settlement.
As part of your overall insurance overhaul, look into the availability of alternative benefit payment options. For instance, structured payouts are a relatively recent invention that many insurers now offer. This allows smaller periodic payments for a long period of time to support dependents or facilitate college educations.
Having the foresight to take such a responsible approach also eliminates the risk of immature or imprudent heirs squandering a single lump-sum payment.
In summary
Estate planning after divorce might seem to be an unpleasant, arduous process. Do not make the potentially fatal mistake of letting emotion override practicality, however. Take prompt, proactive measures and visit your South Florida estate planning attorney to ensure the continued effectiveness of your existing estate plan. You cannot afford to leave you and your loved one’s long-term security to chance. Instead, bet on a sure thing with concrete strategies that preserve hard-earned assets.
As I scanned through my South Florida Estate Planning Attorney Facebook friends’ status updates looking for other people’s take on the Gator game the night before, I was innundated with posts of people typing the same cliched lines over and over again. We will always remember. We will never forget. One of my friends even posted that he remembers going to sleep the night before with no idea of what was going to happen on September 11th. NO KIDDING! Unless you were in on the planning or have precognative abilities, NO ONE saw it coming.
My wife said something interesting though. She said it must be awkward to have a friend or family member that died on September 11, 2001 but not due to any terrorist act. What if your husband died in a car accident in Omaha, Nebraska at 6:35 am on September 11, 2001? While his death was not Al Queda related (I assume), was it any more expected?
While we should not forget the horror of 9/11, we should also remember that not all deaths happen 3,000 at a time. In fact, most deaths are unexpected and happen 1 at a time. Since life is precious, the death rate is 100 percent and none of us know when it might be our turn to go, it is absolutely imperative that you get your estate plan drafted today and protect your family in case tomorrow is the day you die. You may be thinking that “tomorrow is the day you die” is a ridiculous statement surely not to come true. 3,000 Americans may have been thinking the same thing on September 10, 2001.
For more information on successful Florida estate planning and probate, please contact the South Florida law firm of Wild Felice & Pardo, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.
While the damage of Hurricane Irene is in the billions, Congress is currently in the process of enacting law that could cost the American people trillions.
On August 2nd, Congress approved the Budget Control Act of 2011, which calls for the appointment of a bi-partisan committee to propose new tax legislation by November 30, 2011 that would reduce the deficit over the next 10 years by $1.5 trillion. One of the first ways they will simplify the tax legislation will be to begin closing the loopholes in the current tax code, especially those breaks given to dead people. Soon after that, we will see the removal of automatic portability, a reduction in the estate tax exemption amount and an increase in the overall estate tax. After all, dead people tend to fight less than live people when being overtaxed.
What does this mean for you? Well, while many experts in my field (along with myself) have been preaching that all Americans have to get a comprehensive estate plan in place prior to December 31, 2012, the date we may have to focus on is actually November 30, 2011. For those that are calendar-impaired, THAT’S ONLY NINETY (90) DAYS FROM TODAY!!!
Rather than wasting your summer praying in vain for a savior to rise from these streets and enact a more favorable tax code (which may never come), you should be scheduling a free consultation with an estate planning attorney that can walk you through the process of using the current tax laws to your advantage before they possibly go away in three months.
For more information on successful Florida estate planning and probate, please contact the South Florida law firm of Wild Felice & Pardo, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.
Next week is September which means that football is back and Labor Day weekend is upon us but there are some other September holidays of which you may be less familiar.
September 6th is National Fight Procrastination Day but I’ll tell you about how that connects with estate planning later.
September 12th is National Pet Memorial Day and while pets can’t have their own estate plans, they can play a large part in the estate plans of their owners.
September 16th is Stay Away From Seattle Day, probably because that is where they hold all of the beheadings.
No matter what day it is, it is crucially important that you protect your family by having a comprehensive estate planning drafted well before you need it.
For more information on successful Florida estate planning and probate, please contact the South Florida law firm of Wild Felice & Pardo, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.
Whether you divorce her or not is up to you but you need to adjust your estate plan either way. If you stay with her, you need to be certain that you name the executor and trustee that you desire. If you don’t want her to get everything upon your death, you need to be very explicit about that in your trust. If you want your parents or siblings to be the guardian of your children instead of her parents and siblings, you need to stipulate that in your will (and you need to survive her). Who do you want making health care decisions for you? Financial decisions? Pulling the plug on your death bed?
Maybe you decide to divorce her. Your marital settlement agreement will most likely require that you procure a life insurance policy. Your life insurance policy should be owned by an Irrevocable Life Insurance Trust and not in your own name. If you already had an estate plan drafted, you’ll want to amend or restate all of the documnets to remove your now ex-wife from them completely. That is, unless you want her to still control all of your financial and medical decision making if you become incapacitated. Remember that line above regarding pulling the plug? It probably shouldn’t be left to your ex-wife.
And ladies, this goes for you too. After you wash that man right out of your hair, you had better erase him from your financial life as well. Aside from removing him from the above mentioned documents and drafting an entirely new estate plan, you’ll definitely want to have a trust put in place, if you haven’t already. If you die before your ex, he will be the guardian of any minor children that you had together. However, by using a trust to manage your assets instead of leaving them outright to your minor children, at least he wont inherit your stuff.
For more information on successful Florida estate planning and probate, please contact the South Florida law firm of Wild Felice & Pardo, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.
Billionaire Warren Buffett urged U.S. lawmakers Monday to raise taxes on the country’s super-rich to help cut the budget deficit, saying such a
move will not hurt investments. Buffett, one of the world’s richest men and chairman of conglomerate Berkshire Hathaway Inc , said his federal tax bill last year was $6,938,744. Buffet went on to say “That sounds like a lot of money. But what I paid was only 17.4 percent of my taxable income – and that’s actually a lower percentage than was paid by any of the other 20 people in our office. Their tax burdens ranged from 33 percent to 41 percent and averaged 36 percent,” he said.
Mr. Buffett enjoys the benefits of a sophisticated financial plan. He has also established an estate plan that enables his loved ones a comfortable life and the realization of philanthropic activities. Although we may not all be as rich as Warren Buffet, and most of us don’t want to be taxed more we should follow his example and plan for both life and death. Remember you only die once, make sure you do it right consult an estate planning attorney to ensure your loved ones enjoy your legacy.
For more information on successful Florida estate planning and probate, please contact the South Florida law firm of Wild Felice & Pardo, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.
People forget things all the time. Rumor has it that Joe Robbie forgot to sign his estate plan. The only difference between the two instances is that my omission resulted in you not receiving a blog post and Joe Robbie’s omission resulted in a $47 million estate tax bill, millions of dollars in legal fees and the never ending renaming of a football stadium.
For more information on successful Florida estate planning and probate, please contact the South Florida law firm of Wild Felice & Pardo, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.
The market dropped about 5 percent today. With the economic failures in Greece and Italy and now most of Europe, the global economy is even more unstable than the US economy, whose credit rating is lower than AAA for the first time since 1941. So many people think that they can protect themselves against the market by trying to time it or by investing in gold or by keeping their money in cash. I have heard the jokes about 401 k’s turning into 201 k’s after a market dip and the sob stories of people who were forced back into the work force after years of retirement because thier fixed income is no longer as fixed as they need it to be.
While we may not be able to protect ourselves from a diving economy or an unstable market, we are able to protect our families from the unnecessary stress, cost and inconvenience of probate and the possible 55 percent estate tax liability coming in 2013. However, while we have no control over the market, we spend large portions of our day worrying about it and while we have total control over our estate planning, over 70 percent of Americans still don’t have a Trust and over half of all Americans don’t even have a Will.
The lack of a comprehensive estate plan will do a lot more harm to your family than an ill advised investment. Make an appointment to have your estate plan drafted today because there is no excuse for being unprepared.
For more information on successful Florida estate planning and probate, please contact the South Florida law firm of Wild Felice & Pardo, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.
Recently, The District Court of Appeals of the State of Florida, Fifth District found that a decedent is not permitted, through his will, to forgive a debt owed to him when his estate is not solvent to pay the debts and the costs of administration of his estate.
William C. Wallace executed his will and then 11 days later, killed his incapacitated wife, his stepdaughter and then himself. The only asset in the estate was a one-half interest in a note and related mortgage on real property, issued by Wallace’s son prior to the execution of the will. The will had a provision that provided for discharge of the note and cancellation of the decedent’s interest. Several claims were filed against the estate, including a credit card debt and wrongful death claims filed by the estates of the decedent’s wife and stepdaughter. The estate also incurred the curator’s fees and costs, the personal representative’s fees and the personal representative’s attorney’s fees, which were substantial due to the litigation involved in probating the decedent’s will. The decedent’s one-half interest in the promissory note was the only non-exempt asset available to pay the estate’s administrative costs, debts, and expenses.
Therefore, as a consequence of the will’s provision to forgive the note, the estate would not have any funds to pay its obligations. The case found its way to The District Court of Appeals of the State of Florida, Fifth District. That court held that forgiveness of a debt can occur only after creditors and expenses are paid. Thus, the ruling would be contrary to the decedent’s final wishes.
You only die once; make sure you do it right. Although a very tragic story, this case shows us that careful planning is necessary. Just because you include a provision in your will doesn’t mean it will be carried out. If your will is contrary to law or public policy it will be useless. After you’re dead, you can’t come up with a “plan B”, so consult an experienced attorney and do it right the first time.
For more information on successful Florida estate planning and probate, please contact the South Florida law firm of Wild Felice & Pardo, P.A. at 954-944-2855 or via email at info@wfplaw.com to schedule your free consultation.
48,000 people die in the United States each week and there are still 4 weeks until the start of the season. That means that nearly 100,000 people will die before the season kicks off and over 1.2 million people will die before the Super Bowl. Talk about a futures bet!
August is more than just the prologue to football season. Did you know that August is also a month that celebrates estate planning reminders?
August is National Catfish Month which reminds all of those people that get squeamish when talking about death to Suck It Up and get the estate plan drafted.
August is National Eye Exam Month which reminds us to minimize our estate tax so that the IRS doesn’t rob our families blind after we die.
August is National Golf Month which reminds us to have each estate plan reviewed every 3 to 5 years to see if there is a hole in one.
August is also National Peach month which reminds us that probate is the pits.
