Get on the path to results today. www.PlanAhead.Law
Telephone: (786) 557-3000
Get on the path to results today. www.PlanAhead.Law
Telephone: (786) 557-3000
The answers below are generic examples and are not to be construed as legal advice. Please reach us at contact@PlanAhead.Law to schedule a consultation.
When a person dies intestate (without a will), their assets are distributed by the court in a probate proceeding according to the intestacy statutes of the state where the person last resided. Some may find this distribution scheme acceptable. However, there are many instances where a distribution of the assets according to the intestacy statute is not ideal. For example, in the case of blended families, or when there is an heir at law receiving benefits based on financial need.
Think of a will as instructions to the probate court on how the decedent wants his/her assets distributed. Hence, a will must go through probate. The estate assets are distributed to the heirs at the end of a probate proceeding after the legally enforceable debts of the decedent are satisfied. Generally, a trust is better in most situations because assets in the trust avoid probate (court administration). A trust can be used to manage the distribution of a decedent's assets over a period of time and according to the decedent's wishes, protect estate assets from creditor's claims and divorce, and permit a successor trustee to manage the assets should the grantor become ill or lose capacity. Although a trust is initially more costly to set up and administer, the estate will save a significant amount of money by avoiding probate. It is therefore recommended for larger estates since the cost of probate is based on the value of the estate assets, and/or when the decedent wants to retain some control over the assets "from the grave."
For 2022 the estate tax exemption amount was raised to $12.06 million. However, please be aware that the current estate tax exemption has a "sunset provision" that takes effect in 2025 and reduces the exemption amount to $5.25 million (adjusted for inflation to $6.2 million). Also, it is important to note that Congress has the power to reduce this amount even further.
The answers below are generic examples and are not to be construed as legal advice. Please reach us at info@PlanAhead.Law to schedule a consultation.
The parents (or guardian) of a minor child may settle a claim on behalf of the minor as long as the settlement amount does not exceed $15,000. However, if the settlement is in excess of that amount ($15,000), it must be approved by the court and a guardianship over the property of the minor will be ordered by the court. The funds will be deposited in a court protected depository account managed by the appointed guardian pursuant to Florida statutes (F.S. 744.387).
A person that owns substantial foreign assets and is domiciled in the United States, (including a citizen, resident, corporation, partnership, limited liability company, trust or estate) must report foreign accounts by filing a Foreign Bank and Financial Accounts Report (FBAR) on FinCEN Form 114 and a Form 8938 (reporting requirements vary depending on the aggregate value of the accounts). Failure to disclose assets to the IRS may lead to either criminal or civil penalties, or in some cases, both.
To avoid complicated and expensive legal issues down the road, I strongly recommend that adults have basic estate planning documents in place. This includes a Will, a Durable Power of Attorney, a Health Care Surrogate designation, a Living Will, HIPPA information authorization, and a Pre-need Guardian designation. An estate plan tailored to each individual's specific circumstances (amount and type of assets, health, intended posthumous distribution, etc.) is the best option.
Please reach us at contact@planahead.law if you cannot find an answer to your question.
Pursuant to F.S. 319.28 Transfer of ownership by operation of law. “When the application for a certificate of title is made by an heir of a previous owner who died intestate, it shall not be necessary to accompany the application with an order of a probate court if the applicant files with the department an affidavit that the estate is not indebted and the surviving spouse, if any, and the heirs, if any, have amicably agreed among themselves upon a division of the estate. If the previous owner died testate, the application shall be accompanied by a certified copy of the will, if probated, and an affidavit that the estate is solvent with sufficient assets to pay all just claims or, if the will is not being probated, by a sworn copy of the will and an affidavit that the estate is not indebted.”
Generally, No. Revocable trusts (Grantor Trusts) are treated as a “pass-through entity” by the IRS and do not need a separate tax ID number. The trust income, gains, losses, deductions, and credits are reported on the grantor's annual income tax return using the grantor’s social security number. A transfer of property from the individual person (the grantor) to the revocable trust is treated as an “incomplete gift” and is not subject to a gift tax. When the grantor dies, the assets in the trust will be included in the grantor’s estate and may or may not be taxable depending on the amount of the estate and the estate tax exemption in effect at the time of death.
The cost of an estate plan can vary greatly from client to client depending on the work the client requires (complexity of the plan) and the assets they own. While we offer many flat fee services, including estate plans, rarely do we have a client that doesn’t request additional work. Our estate plan packages include a variety of documents that many of our clients had not considered. Additionally, all our estate plan packages include free initial consultation and up to three hours of legal research, execution of documents, notary services, funding instructions, one set of original documents. and one copy of all documents. Given the cost of a probate administration or the problems that may arise by not having basic documents in place, a better question is; What is the cost of not having an estate plan in place?
Oscar E. Berlanga, P.A.
11120 SW 88th Street, Suite 201, Miami, Florida 33176
Telephone: (786) 557-3000
Copyright © 2022 Oscar E. Berlanga, P.A. - All Rights Reserved.
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