It’s a New Year, which means it’s time to file your 2026 Annual Report if you own a Florida LLC (limited liability company), corporation, or partnership. The deadline is before May 1, 2026. Missing this deadline results in the state charging you a $400 late fee.

The only official Florida web site is https://www.sunbiz.org. This site has “Consumer Notices” to alert you about fraudulent websites that send misleading or deceptive annual report reminders.

How to Safely File

A legitimate annual report reminder email will:

• Come from the Florida Department of State
• Use a subject line similar to:
  Official 2026 Annual Report Notice for: [Name of your corporate entity]
• Direct you to file online at https://www.sunbiz.org/
  where you will see the banner:
  “Florida Department of State, Division of Corporations”

Official 2026 State filing fees

• Limited Liability Company: $138.75
• Corporation: $150.00
• Limited Partnership: $500

3 Common Annual Report Scams

Below are the most frequent scams that target Florida business owners during annual report season.

Scam #1: F.C.F.S. – Florida Corporate Filing Services

This company sends mail that looks like an official state notice, often with a Tallahassee address. They typically request:

• $47 for a “Certificate of Status,” or
• $125 for “corporate filing services”

These documents are not required by the State of Florida for your annual report.

Scam #2: Corporate Filing Services Center

This group sends notices requesting $68 for a certificate of status — again, not required by the State.

Scam #3: C.F.S – Certificate Filing Service

This organization uses high‑quality, official‑looking paper designed to mimic government documents. They usually request $49 for a certificate of status.
This too is not required by the State.

Important Note

The Florida Department of Agriculture and Consumer Services (DACS) now has authority to investigate these types of deceptive solicitations and impose fines under the new “Government Imposter and Deceptive Advertisement Act” (GIDAA). For more information, see: section 817.417, F.S. or visit the FDAC’S Division of Consumer Services

This is a good time to conduct an annual review of your LLC, corporation or limited partnership.

We’ve prepared a 10‑Point Checklist to help you confirm that your corporate records are accurate, current, and compliant. Get it here: 10 Point Checklist for Florida Corporate Entities

Need Assistance?

Our office can help ensure that your corporate minutes and records are properly prepared and reflect key information such as:

• controlling officers
• ownership
• member units or share allocations
• important organizational updates

To schedule an appointment, call (305) 709‑2858 or email info@raricklaw.com.

Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Miami asset protection attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.

Posted in: Asset Protection, Corporate, Trust Administration and Trust Law

Tagged: Miami asset protection attorney, Miami asset protection lawyer, miami probate attorney, miami probate lawyer, miami trust attorney and miami trust lawyer

Here is the good news/bad news I received from my bank today regarding my Paycheck Protection Program (PPP) Application: The good news: your application has been approved; the bad: the SBA is out of money and you must wait for Congress to refund the program!

Although I have heard of a few small businesses that have received funding I am guessing that most persons reading this letter have encountered similar frustrations. Note: if you have received funding, please so reply.

We predicted in my first letter regarding PPP that the $349 billion fund would run out of money and this Thursday it did. It lasted two weeks! For an interesting map on where the funds were distributed nationwide see PPP Loan Allocation Map.

My message to you now is don’t give up. Yes, many small businesses with average monthly payroll over $1 million got preferential treatment by the big banks. However, the banks are incentivized under the SBA program to make small loans under $1 million.

And more encouraging: there is strong bi-partisan pressure to refund the program. (If only Congress could stop the bickering and see the urgency of the threats to millions of small businesses.) Regardless, if you have applied and are waiting to get approval, keep checking with your bank to make sure they have all necessary documentation and try to get confirmation your application has been approved. If you have not applied, do so immediately.

My son-in-law is a senior manager for a major regional bank in the western states and is working over-time this weekend to continue to process applications. My bank advisor also tells me she is working this weekend on her bank’s back-log of applications. Both banks believe the program will be refunded. I think that is a good bet.

DURABLE POWER OF ATTORNEY FROM DON LEWIS TO CAROLE BASKIN dated November 21, 1996

Editor’s Note: The following is a public service Alert from Rarick Trusts & Wills Law, P.A. This firm does not offer or recommend Remote Online Notarization Service providers.

Beginning January 1, 2020 Florida joins 20 other states allowing Remote Online Notarization or “RON” for deeds, mortgages and other instruments. Beginning July 1, 2020 RON will be available for “electronic wills” and other testamentary documents. See Florida Ch. 2019-71. This Alert will discuss the RON process for non-testamentary documents that will be of interest to real estate attorneys. A subsequent Alert designed for estate planning attorneys will discuss the new law’s requirements for Florida electronic wills and other estate planning documents that commence July 1.

Remote Online Notarization Process For Non-Testamentary Documents Such as Deeds and Mortgages

The RON process allows for execution of non-testamentary documents where the notary and signer are in separate locations. Essentially, any Florida requirement that a person sign in the presence of witnesses can be satisfied by using Skype, Face Time or other audio-visual technology that complies with the new law.

The RON process in a law firm office must follow eight steps:

1. The Firm uploads the document to be signed and notarized with a RON notary/service provider. 2. The notary confirms receipt of the document by sending notice to the Firm and signer. 3. The signer receives the notice and signs into the website. 4. The signer begins an authentication process by answering a series of questions. Note: all witnesses must go through the same authentication process as the principal. 5. The notary, signer and witnesses join in a two-way video conference, such as Google Hangouts, Face Time, or Skype and complete the authentication process. 6. While all parties can see each other in the two-way video, the signer signs and the notary electronically notarizes the documents. 7. The notary/service provider returns the signed documents to the Firm and signer. 8. The notary/service provider stores copies of the audio/video recording of the authentication process and other authentication data in the notary’s electronic journal. Note: the notary must maintain this journal for at least 10 years.

In Florida, two witnesses are required for a deed. Under the new law, the two witnesses must be physically present with either the notary or signer.

Notary Block for Deeds and Non-Testamentary Documents.

A suggested notary block for a person signing as an individual acting in his or her own right is:

STATE OF ________________________________ COUNTY OF ________________________________ The foregoing instrument was acknowledged before me by means of ☐ physical presence or ☐ online notarization, this (date) by (name of person acknowledging) , who is personally known to me or who has produced (type of identification) as identification. ____________________________________________ [Notary Seal] Notary Public

____________________________________________ Name typed, printed or stamped My Commission Expires: ____________

Caution In The Brave New World: Finding A Qualified Custodian – and Lessons From AOL

Remote Online Notarization and Electronic Wills are here to stay. No doubt within a couple years all states will have adopted RON law’s. Of course with any new technology, there will be new companies seeking to profit from this new law. As pointed out in an excellent article in the Florida Bar Journal by attorneys Sarah Butters and Jenna Rubin (Danger Will Robinson: The New Frontier of Remote Online Notarization and Electronic Wills, Vol. 93, No.6, November/December 2019), 70% of new tech companies fail around 20 months after first raising financing, raising the obvious question: Will the qualified custodian still be in business when the testator dies and it is time to deposit the will with the court? Remember when AOL was the e-mail service of choice – until it wasn’t?

Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Weston estate planning attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.

Irrevocable minors trusts should always be an important tool in the Family Law Attorneys bag of tools because a well designed trust can address multiple issues that cannot be fully resolved through a Marital Settlement Agreement. It may be a good idea to brainstorm possible trust solutions with an experienced estate planning attorney at the commencement of the case. Here are three examples:

Problem #1: Wife, Husband (or both) are Poor Money Managers. Example: Husband and wife have minor children, ages 8 and 10. Wife is big shopper and bad money manager. Your client is the Husband. He is concerned that if child support payments go directly to wife she will use some of the funds to buy expensive clothing and keep up her lavish life style – to the detriment of the children. Both parents agree that they want to ensure that the children go to a private high school and a prestigious college or university after high school.

Solution: Safe Harbor Educational Trust For Minor Children. A Safe Harbor Trust with prepared by a Miami Trust attorney with the following purposes: (1) Ensure that all support funds go the children, and (2) the children secure a first rate high school and university education. These goals are achieved by having the funds under the management of a third party trustee – who can be an attorney, CPA, trust company, or other trusted person. The trustee can be directed, pursuant to the Settlement Agreement, to purchase a 529 plan or Florida Prepaid College Plan for the children’s educational needs and the balance of the funds would be set aside to meet the Husband’s support obligations and the private high school. Of course, the Trust can incorporate many other unique requirements of the Settlement Agreement. Each quarter the Trustee provides an informal accounting of Trust payments so both parents are kept fully informed of all trust expenses, income, and distributions. Read More: Children’s Safe Harbor Trust.

Problem #2: Love Child But No Marriage. In this situation Mark Anthony (not the actor) has a two year old daughter from a prior relationship. The child’s mother is harassing Mark, demanding child support of over $1 million by posting pictures and demands on Facebook and Instagram. Mark is willing to make the payment, but wants to end all further communications with the mother.

Solution: As required by the Support Agreement, Mark establishes an Irrevocable Minor’s Trust with the purpose of providing for the daughter’s support needs until she is 25 or secures a degree from a fully accredited college or university, whichever occurs first. Mark funds the Trust with a onetime payment of $1 million. Thereafter, it is the Trustee’s obligation to ensure that the funds are conservatively invested and used for the health, education, and support of the minor daughter, and special activities, such as summer camp and tennis lessons. The Trustee provides an informal accounting to both the mother and Mark every 90 days.

#3: Protecting Homestead Contributed by Grandmother. Jose and Emily Perez live in a house owned by Jose’s elderly mother. They have twin daughters, age 7. Jose’s mother wants to devise the house to the twins upon her death. She wants Emily to continue to live in the house with her and the girls after the divorce as long as she does not remarry, but upon grandmother’s death, she wants the house or the sale proceeds available for the twins living needs or education until they are at least 25.

Solution: Irrevocable Homestead Trust For Minor Children. Grandmother deeds the homestead to an irrevocable Trust but retains a beneficial interest for life so Grandmother can still claim the three big benefits of homestead: (1) protection against creditors; (2) $50,000 property tax credit; (3) 3% Save Our Homes cap. Of course, grandmother must continue to occupy the house. Upon grandmother’s death, the trust can continue to qualify for homestead, upon application by the Trustee, provided one of the beneficiaries continues to reside at the home. If sold, the proceeds are distributed to the Trust accounts under the fiduciary management of the Trustee, and used for the education or other needs of the children.

Take-Away Points

1. Irrevocable Minor’s Trusts are often good “insurance policies” in a Marital Settlement Agreement to ensure marital funds go the children and are not misused by a free-spending spouse or young adult who is not a good money manager – such as the young teenage boy turning 18 who would prefer to buy the yellow Mustang rather than go to college.
2. These are just a few examples of how Irrevocable Marital trusts can be used in Marital Settlement Agreements. If is often a good idea to brainstorm with an experienced Miami Trust attorney about ways a trust may be used to protect marital funds.

All modern passenger jet planes have at least two engines. Similar reasoning applies to prenuptial agreements. Many will argue that a good prenuptial agreement should fly safely on its own without the need for a “second engine.” However, a second engine could be a Nevada Asset Protection Trust (“APT”) that could only be contested in a Nevada court. Simply by requiring a litigant to seek redress in another jurisdiction will present a strong financial and psychological deterrent to a disgruntled spouse seeking to overturn the prenuptial agreement. Two engines are safer and stronger than one!

Here are two initial objections that I hear from some of my Family Law attorney friends:

Objection #1. The less wealthy party will insist on exclusive Florida jurisdiction over all prenuptial issues

The conventional prenuptial agreement requires exclusive Florida jurisdiction over all agreement issues. The more wealthy partner can agree to such a provision with the sole exception that assets in the Nevada Trust are non-marital property and subject to the sole jurisdiction of Nevada. If Partner A is truly willing to give up all claims to certain non-marital assets then how these assets are titled or held should not be an issue.

Objection #2. Cost

A Nevada APT usually costs from $8 – 10,000. In addition, there is a yearly Trustee fee of $2,750. If the marital assets are under $1 million then a Nevada APT may be too costly. However, let’s say the assets are $1 million or more. The one time cost to establish the trust are roughly 1% of all assets; the cost to maintain the trust is .3%.

Benefits of Integrating A Nevada Asset Protection Trust with your Prenuptial Agreement

1. More Robust Laws. Nevada has much stronger laws for protecting intangible assets (with the exception of 401k’s and IRA’s) than Florida.  Florida does not have laws favorable to creating an APT because Florida law does not protect self-settled trusts where the grantor is also the beneficiary.  Nevada and 15 other states do protect self-settled trusts.  However, Nevada is routinely ranked as having the strongest laws.  See Domestic Asset Protection Trust State Rankings by attorney Steve Oshins.  It is one reason Nevada has become a favorite jurisdiction for California physicians seeking to protect their investments.  For more information about Nevada APT’s, see  Nevada Asset Protection Trust: Your Best Option?
2. Bright Line. Most well drafted prenups attempt to create a bright line firewall for non-marital assets.  Assets titled in a Nevada APT would have that bright line by virtue of being titled in the trust.
3. Deterrence. The prenup is designed to give all parties some peace of mind that the dispute regarding property has been fully resolved and will not be reopened at a later date.

Compare the risk and cost of challenging a prenup in Florida with contesting assets held in a Nevada APT.   This is not close: Nevada will be far riskier and costlier.

Conclusion

Two engines are better than one. Integrating a Nevada APT with your Prenuptial (or Post-Nuptial) Agreement can make your agreement so difficult to challenge that it will preempt such a challenge and give your client the peace of mind that they hope to achieve.

Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Weston asset protection attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.

7 TIPS 1. Before You Clean Up Document Your Losses

Do not start clean up until you have documented your losses from Hurricane Irma. Use your cell phone to document your structural, equipment, and water damages with ample video and pictures. (Hopefully you also took pictures immediately prior to Irma.) Document everything, and then make a back up of those pictures/videos. Get a notebook and keep a log of all actions taken and all expenses, such as mitigation, clean up and professional fees. Of course, save all receipts.

2. Gather & Review All Insurance Policies

For damage to your home, the most obvious source of coverage is your residential property insurance policy. However, there may be other policies such as a separate flood insurance policy. In addition, you may have coverage under auto, boat, and marine policies. If you are faced with a potential claim from a third party, you may have a liability policy and an umbrella policy.

For business owners you need to review your commercial property policy. Flood loss is commonly excluded from residential policies but may be covered under your commercial policy.

If you do not have flood coverage, you still may have coverage under another policy where the covered cause contributes to the loss, such as wind, power outage, storm surge or other area wide causes.

3. Put Your Insurance Company on Written Notice

As soon as you have been able to assess the damages – and even if you have not been able to assess all the damages – put your insurance company on written notice by sending an email to the carrier. Even if you are not sure of coverage, put the company on notice. A notice is simply that: a notice that you may have a claim. There is no reason to delay. Make sure the notice is in writing – email is usually the best and fastest and sent to the agent required by your policy. At the top of your email put, “Please Confirm Receipt” and save all confirmations. In addition, most popular programs such as Outlook, allow you to get a “Delivery Receipt” and “Read Receipt”. Always try to get a confirmation of receipt.

Note: For water damage from Hurricane Irma be careful about the language you use to report it. Since many residential policies exclude damage from floods but do cover “wind-driven rain”, it may be best to contend that your house suffered “water damage” rather than state that “my house got flooded”. A professional adjuster can help assess whether the damage is caused by “wind-driven rain” or a flood. Never misrepresent your loss, but don’t help the insurance company by reaching premature conclusions that give them an excuse for denying coverage.

4. Demand An Insurance Adjuster Inspect Your Property ASAP!

Do not tolerate unreasonable delay by your insurance company. Yes, the insurance company representative may have a heavy case load following Hurricane Irma but you want to be near the front of the line. After you give notice, put the ball in the court of the insurance company: expect and demand that the company send an adjuster immediately to photograph your losses. If they fail to do so, document your requests via email. In the event the company acts in bad faith, proof of such delay will be critical to proving your case in court.

5. Assess Coverage for Business Interruption

If you have a small business, you may need to prove your lost profits for the time that the business was interrupted. Of course, the time frame for a hurricane such as Irma can begin well before Irma arrived, as most businesses had to close several days before the hurricane hit in order to give employees time to prepare. After the hurricane passed, there was down time for employees to return, since many evacuated out of state. Note: There are two main types of business interruption: one that covers for lost profits and one that covers contingent business interruption such as losses due to damage to customers or suppliers. The distinction between the two can raise complex issues. Your best answer to resolving these issues is a forensic accountant or public adjuster who specializes in assessing such revenue losses.

6. Mitigate Damages – Such as Mold

You can generally assume that you always have a duty to mitigate losses. If you have serious water damage, most policies require you to take prompt action to dry out the wet areas and will thereafter provide reimbursement for such costs. In South Florida, mold is a big issue. You may need to hire a professional mold remediation company that can do the clean-up and give you a warranty that the area will be free of mold for a period of time following the clean-up.

7. Hire Experienced Experts to Evaluate and Advocate

Remember the adjuster who reviews your loss is paid by your insurance company and your insurance company is in business to minimize loss. You may need to hire your own adjuster if the damages are significant to get a true, independent valuation. As mentioned, for business interruption, I strongly recommend securing the services of a CPA or public adjuster.

BIG WARNING: Be careful in signing an assignment of benefits to public adjusters or any remedial companies. Read the engagement agreement! If any questions, call your attorney.

5 TRAPS 1. Watch Out for Policy Deadlines: Calendar All Deadlines

If you miss a deadline in your policy, it could kill your claim. Therefore, after reviewing all your policies, calendar all deadlines, such as the deadline to file a proof of loss or file suit if you disagree with the insurance company. Also, it is good practice to put a “tickler” reminder on your calendar to advise you of upcoming deadlines.

2. Do Not Rely Upon Verbal Notice

If you report a loss by telephone, confirm that report with a follow-up email of your conversation with the insurance company representative. See Tip #3 above.

3. Do Not Disclose Information In Bulk

This caution applies to all claims, but is particularly important for business interruption claims. Be careful of requests from the insurance company for bulk downloads of your financial information. You should secure the advice of a professional adjuster to give the insurance company only relevant information to prove your claim.

4. Negotiate The First Offer: It May Be Low

You may get a good first offer – and you may not. Therefore, be prepared to negotiate your first offer. Insurance companies make profits by underpaying claims – not overpaying them.

5. Don’t Act Too Quickly To Release the Insurance Company

To close their case on your claims, insurance companies are going to want you to sign a release that will prevent you from having “settlor’s remorse” and asking for more payments at a later date. Beware of checks that state “Full and Final Settlement” because they mean exactly that: Full and Final. Prior to signing anything, or cashing any checks, it is advisable to first review the release – and the scope of that release – with your attorney.

How We Can Help

For over 20 years, we have helped small businesses in good times and bad – such as when big hurricanes like Irma strike and there is a need to resolve insurance claims. You pay for insurance for years to cover such times as these. It is time for your insurance company to step up – quickly. We are available to meet with you and assess your claims. Our initial consultation fee is $275. To schedule a consultation contact Christy at Rarick Trusts & Wills Law, (305) 709-2858 or email me at prarick@raricklaw.com. We look forward to working with you.

Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Weston business and estate planning attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.

This report is a reminder that the FBAR or Report of Foreign Bank and Financial Account is due June 30. The FBAR is required for U.S. persons having a financial interest or signature authority over one or more foreign financial accounts, including a bank account, brokerage account, mutual fund, trust, estate, pension, cash value life insurance, or other type of foreign financial account having an aggregate value over $10,000 at any time during 2015.

Note: A U.S. person may have a reporting obligation even though the foreign financial account does not generate any taxable income.

The following is a helpful comment from a recent Forbes article:

U.S. law requires U.S. persons to report any worldwide income, including income from foreign trusts and foreign bank and securities accounts. Note that, by statute, these FBAR provisions apply to all U.S. persons and are not limited by the residency of the person since the laws of the U.S. are applicable to all U.S. citizens, U.S. residents, entities, including but not limited to, domestic corporations, partnerships, or limited liability companies created or organized in the U.S. or under the laws of the U. S., and trusts or estates formed under the laws of the United States. See Forbes, Reminder: FBAR Electronic Filing. Summary of Disclosure/Reporting Requirements for Off-Shore Assets

Here is a quick overview of the most common filing requirements for off-shore assets as reported in attorney Alan Gassman’s Thursday Report:

1. Form 3520: Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts

When Required: If a U.S. person: (1) creates or transfers money or property to a foreign trust; (2) receives (directly or indirectly) any distributions from a foreign trust or; (3) receives certain gifts or bequests from foreign persons, estates or other entities.

2. Form 3520-A: Annual Information Return of Foreign Trust with U.S. Owner

When Required: By any U.S. person who is treated as an owner of any portion of a foreign trust under the grantor trust rules.

3. Form 8938: Statement of Specified Foreign Financial Assets

When Required: If U.S. person has interests in certain specified foreign financial assets exceeding $50,000 on the last day of the tax year, or $75,000 at any time during the year ($100,000 and $150,000 respectively for taxpayer Married Filing Jointly).

4. FBAR: Report of Foreign Bank and Financial Accounts

When Required: If a U.S. person has (1) financial interest or signature authority over one or more foreign financial accounts, and (2) the aggregate value of such accounts exceeded $10,000 at any time during the calendar year.

5. Form 5471: Information Return of U.S. Persons with Respect to Certain Foreign Corporations

When Required: Generally required for U.S. persons who are officers, directors, or shareholders in certain foreign corporations.

6. Form 8865: Return of U.S. Persons with Respect to Certain Foreign Partnerships

When Required: To report information regarding foreign partnerships controlled by a U.S. person; transfers from a U.S. person to a foreign partnership; or to report acquisitions, dispositions or changes in foreign partnership interests by a U.S. person.

More Information

For a good summary of Voluntary Disclosure of Offshore Assets see two recent articles by attorneys Alan Gassman, Lesley Share and Brandon Ketron as reported in Alan Gassman’s Thursday Report:

Voluntary Disclosure of Offshore Assets: Part I Voluntary Disclosure of Offshore Assets: Part II Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Weston estate planning attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.

Florida law requires that a trust must keep the qualified beneficiaries of a trust “reasonably informed of the trust and its administration.” F.S. 736.0813. A “qualified beneficiary” is a current beneficiary, intermediate beneficiary, or first-line remainder beneficiary. F.S. 736.0103(16). These information rights fall into two broad categories for a Florida trust beneficiary: the Duty To Inform and the Duty to Account as follows.

Note: The notice requirements discussed here typically apply to an irrevocable trust not a living revocable trust where the settlor (trustmaker) is not incapacitated. If the settlor becomes incapacitated or dies, then these notice requirements likely do apply.

Duty To Inform

1. Within 60 days of accepting the trustee duties, the trustee must inform qualified beneficiaries of the trustee’s full name and address and notify the beneficiary that the fiduciary attorney-client privilege in F.S. 90.5021 applies with respect to the trustee and any attorney engaged by the trustee. F.S. 736.0813(1)(a).

2. With 60 days of learning that a formerly revocable trust has become irrevocable (by death or incapacity) the trustee must inform qualified beneficiaries of (a) the existence of the trust; (b) settlor’s identity; (c) the right to request a copy of the trust agreement; (d) right to a trust accounting; and (d) notice that the fiduciary attorney-client privilege in F.S. 90.5021 applies with respect to the trustee and any attorney engaged by the trustee. F.S. 736.0813(1)(b).

3. Upon request the trustee must provide the beneficiary with a complete copy of the trust.

Duty To Account

4. The Trustee must provide to the Florida trust beneficiary a detailed accounting that complies with F.S. 736.08135 from the date the trustee accepts the trustee duties at least annually and on termination of the trust or on change of the trustee. F.S. 736.0813(1)(d).

5. Important information required in the trust accounting by F.S. 736.08135 include:

• Name of trustee preparing the accounting and the period covered by the accounting
• Disclose all cash and property transactions
• Disclose all compensation paid to the trustee and the trustee’s agents, such as the trustee’s attorney, CPA, or investment advisor
• Report significant changes that do not affect the value of the assets, such as changes in the names of investments, stock splits, change of custodial institutions. F.S. 736.08135(2)(d).
• In the case of a final accounting, include a plan of distribution.

This Report is only a summary of key rights qualified beneficiaries have under Florida law. It is not a complete list of rights. If you are a Florida trust beneficiary, contact Phil Rarick, Miami trust attorney, at (305) 709-2858 or info@raricklaw.com.

Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Miami trust attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.

Buyers and sellers of real estate in Florida have some familiarity with the documentary stamp tax as it invariably shows up on their settlement statements as a closing cost. Whether the seller alone or both the seller and buyer pay documentary stamp taxes depends on the type of transaction. If there is no financing involved, then the documentary stamp tax will be calculated based upon the sales price of the property itself at a rate of $0.70 per $100 of value. The only county in Florida with a different schedule is free-thinking Miami Dade County where the rate is $0.60 per $100 of value when the property is a single family residence. Other types of properties in Miami Dade County are charged slightly different rates of documentary stamp tax.

Example: If I am selling my house in Broward County for $1,000,000, I will typically be the one who pays the documentary stamp tax of $7,000 due at closing. The party responsible for payment of the documentary stamp tax on a sale is usually determined by the terms of the purchase agreement. However, because the seller is required to provide marketable title to the property, the seller usually pays these taxes. One could always try to convince the buyer to pay such a tax but most buyers are not so charitably inclined and will complain loudly about the seller’s parasitic character. The actual tax must be paid to the clerk of the circuit court or similar authority in the county in which the real property itself is located before the deed can be recorded.

Documentary Stamps Due On Financing

Buyers of real estate are not necessarily out of the woods in avoiding the imposition of documentary stamp taxes because they may need to finance the purchase of their property. The state legislature, which is always keen to scrounge up a few dollars for the state coffers, imposes a documentary stamp tax on the face value of any promissory note given for the purchase of real property. The amount of this tax is equal to $0.35 per $100 of the face value of the promissory note.

Example: If the buyer of our $1,000,000 property has borrowed $700,000 from a bank to finance the purchase, then the buyer will be responsible for the payment of a documentary stamp tax in the amount of $2,450 at closing. As with the documentary stamps on the deed, the party responsible for the payment of the tax is spelled out in the purchase agreement but the custom as to who pays which taxes seldom diverges from what we have described.

And Then There Is the Intangible Tax

The Florida legislature decided that they needed to add an extra tax on the mortgage that secures the promissory note being given by the buyer to his lender. The so-called “intangible tax”, which is calculated at a rate of $0.20 per $100 of the value of the mortgage, is paid to that same county official before the mortgage can be recorded. Those who are tempted to skimp on paying the intangible tax and not record the mortgage should realize that lenders routinely oppose such plans because it prevents the obligation contained in the note from being collateralized by the underlying property. The recorded mortgage gives the world notice that the lender has certain rights to the repayment of the loan which, subject to a few exceptions, are paramount if the lender needs to foreclose on the property to recover the loan proceeds.

Exceptions to the Documentary Tax

The Florida Statutes do provide certain exceptions to the documentary stamp tax. Government entities (e.g., government agencies, municipalities, and political subdivisions), not surprisingly, are exempt from documentary stamp tax. Private individuals, for the most part, do not enjoy such exemptions.

Minimizing the Documentary Stamp Taxes By Severance of Personal and Real Property

The buyer and seller may revise their purchase agreement to enable the seller to save some of the documentary stamp tax that would otherwise be due on the deed at closing. Whether the buyer goes along, however, depends on whether the buyer determines such an approach to be beneficial, given his or her circumstances.

If I determine that there is $100,000 worth of personal property in my house that will be part of the sale such as furniture, window treatments or my collection of deer head chandeliers, then the Seller may want to revise the purchase agreement to state that the sales price of the house is $900,000. However, the sale of the house is contingent upon the buyer also paying $100,000 for the personal property that will be included in the sale. In short, the total sale price is still $1,000,000, but I will have reduced the documentary stamps that I will have to pay on the deed from $7,000 to $6,300 because I am reducing the price of the real property by 10%. The buyer may find this to be an attractive proposal because his basis in the property will be reduced by 10% and he should be able to expect a corresponding reduction in his property taxes when he gets the bill. However, the reduction in the stated value of the real estate may cause the buyer’s lender to reduce the amount of the loan if the lender believes that a $700,000 loan creates too much debt on a property with a stated value of $900,000. The buyer will also have to consider that the reduced basis may mean a higher capital gain when he sells the house.

The Department of Revenue is always keen to squash anyone wishing to trifle with their tax revenues so there is the possibility (however remote) that they would contest the stated value of the personal property and try to charge the $700 in saved tax plus any penalties and interest. To protect the Seller, the Seller should secure a written appraisal of the personal property included in the sale stating that the personal property is worth at least $100,000. This does not guarantee that the Department of Revenue will leave the Seller alone, but it gives the Seller a credible defense if he or she needs to respond to an audit. Whether the savings in documentary stamp tax is worth the cost of the appraisal is another question to be evaluated.

About the Author: Jefferson H. Weaver is an attorney in Fort Lauderdale, Florida, whose practice is concentrated in the areas of commercial and residential real estate and corporate law. He can be reached at (954) 489-4719 or weaverlawfirm@gmail.com.

Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced real estate attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.

1. Safety first. Move to a safe location. If there are any injuries or property damage call 911 immediately.
2. Stay calm. Focus on task at hand documenting the accident. Be courteous but don’t admit fault. An investigation may later show you were not responsible.
3. Exchange Information. Get the following basic information:
   • Name, addresses and phone numbers of all drivers and passengers involved in the accident
   • Vehicle tag number, make and model of each car involved in the accident
   • Vehicle operator’s driver license number
   • Insurance company and policy number
   • Names and addresses of as many witnesses as possible
   • Names and badge numbers of police officers

4. Document the Damage. Take photos of the accident scene and vehicle damage. Write down the details of the accident on a note pad or record on your cell phone while they are fresh in your memory.
5. File a police report. Even if no one is injured, you should always contact the police and file an accident report. You may need this when you file a claim on your insurance.
6. Report. Report your claim to your insurance company.
7. Contact attorney. If anyone involved is injured, contact an attorney at Rarick Trusts & Wills Law and we will help connect you with an experienced personal injury attorney. Call (305) 709-2858 or email info@raricklaw.com.

DO NOT allow your driver’s license to be photographed: Protect your identity.

Note: Print checklist and place in the glove compartment of all cars in case you are in an auto accident.

– Purchase or Sale of Residential or Commercial real estate. We will represent you on your sale or purchase. It is often difficult to find reliable, cost efficient title companies. We work in close collaboration with local, experienced attorneys who provide excellent title services. We can help you close virtually any real estate transaction at a cost often below other title companies.

– Commercial Leases. A good commercial lease is essential to protecting the value of your property by insuring that good tenants stay, and bad tenants can be quickly and economically removed. A strong, modern lease can help insure that you keep all your properties fully rented and tenants current in their payments. My partner Jay Beskin is experienced with commercial leases and is available to help make sure that your new lease protects your interests. An old lease may not be doing a good job of protecting you in 2015. If you have an old lease, Jay is available to review it.

3 Important Tips

1. Do Not Title Real Estate In An S Corporation

As my colleague, attorney Alan Gassman, says, “Don’t put real estate into darned S Corporations.” S corporations may have been the best choice 15 years ago, but today the entity of choice is a Florida or Delaware LLC (limited liability company), and in some cases the LLLP (limited liability limited partnership).

There are multiple reasons for this. First, the LLC is a higher quality of asset protection. Second, an LLC is easier to administer. Third, the LLC offers more flexibility for tax planning than an S corporation. For example, S corporations can only be owned by individuals and certain types of trusts. They cannot be owned by non-residents, corporations, or family limited partnerships. On death, the tax basis inside an S corporation does not change, but with an LLC it can increase to the fair market value of the ownership interest on date of death – potentially saving significant capital gain taxes for the surviving spouse or children.

2. Consider Conversion To LLC If You Have Real Estate In An S Corporation

If you have some properties in S corporations, there is a clear remedy: convert the corporation to an LLC.

3. Get It Right – At The Time Of Purchase

I recently purchased a new car for my wife. The car dealership, without asking me, began to prepare all the paperwork to title the car in my name. When I told them they had to redo the paperwork to put it in my wife’s name I heard a few moans, but they did as requested.

Title to your car should only be in one person’s name and it should be in the name of the person who drives the car the most. Otherwise, a good personal injury attorney would have two persons to sue: the driver and the owner. For real estate, it is equally important to make sure the property is titled to maximize protection.

The point here is get it right at the beginning – before you put any name on a real estate contract. Therefore, before you purchase real estate – before you sign anything – give us a call. We do not charge for short telephone conversations with our clients. We will help you determine the best way to hold title and if needed, assist with the sale or purchase.

For more information, contact Phil Rarick or Jay Beskin at (305) 709-2858 or info@raricklaw.com. Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Miami trust attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.

A living trust is simply detailed, legally binding instructions to care for you and your family. There are three key players in a trust. First, the Trustmaker or grantor; this is the person who makes the trust. Second, the Trustee, whose job is to follow the instructions of the trust exactly and to the spirit of the trust. The third role are the Beneficiaries. The Trustee’s fiduciary duties run like a laser beam to the beneficiaries: every penny of the Trust must be used in the best interests of the beneficiaries.

Initially, you can act in all three roles in your living trust: You can be the trustmaker, trustee and beneficiary. Your spouse, children, or other loved ones can also be beneficiaries.

Your living trust is revocable – you can change your trust instructions anytime you wish. There is only one person in the world who can change your instructions: you. In the event of your temporary or permanent mental incapacity, or upon death, the trust locks in and becomes irrevocable so that no one else can change it.

Note: To achieve the objectives noted here, your trust must be properly drafted by an experienced Miami trust attorney and funded by transferring your assets to the trust. Funding of the trust is essential to achieving the trust purpose. Your key assets must be titled in the name of the trust or flow into the trust because the trust is the beneficiary of your account. If you have a living trust, and you have not reviewed the trust funding within the past several years with your attorney, it is likely time to do so.

For more detailed information see our paper: Understanding Living Trusts For Florida Residents. Take-Away Points

1. Every person, whether you have $100,000 or $1 million, should likely have a living trust rather than a will. A will must usually go through the costly, bureaucratic court system known as probate. A trust, properly funded, can avoid probate.

2. A living trust is important to keep legal control in the family – and avoid court intervention in the form of guardianship or probate.

3. A living trust provides detailed instructions to help insure that your hard earned money goes to your children or other loved ones – and not to their spouses, or creditors. Just as important, your trust instructions can help insure that your children receive a first-rate college education to help them compete in our new global economy.

You have a valuable tax benefit from the IRS, but the deadline for taking advantage of this benefit is December 31. The IRS allows you to gift $14,000 per recipient each year tax free; if married, you can gift $28,000 per person.

Example: If you are married and have two children, you can gift $56,000 without incurring any gift taxes or using part of your lifetime gift tax exemption. (This exemption is $5.34 million; next year it will be $5.43 million.)

Annual gifting is a “use it or lose it” benefit. After December 31, you lose all rights to make a gift in 2014.

Note: The gift must be delivered to the recipient by the end of the year. Putting the check in the mail on December 31 is not considered a completed gift.

For gifts between spouses, there is an unlimited amount. So, husband, if your wife is asking for a $50,000 ring for Christmas, no problem. (I think I speak for husbands everywhere when I say that most likely our wives already knew this part of tax law.)

The Perils of Gifting. Before you get out your check book for the kids, consider first the perils of gifting outright. If you want to make sure that your gift goes to your child (not their spouse) or grandchild (and is used for their education, not on some foolish expense) then you need to consider a Gifting Trust. A Gifting Trust can help insure that your hard earned money goes to your children for the purpose that your intend and is not wasted.

Gifting Trust. Here is an example of the power of a Gifting Trust. Let’s say you and your wife have one adult son who is married with two children, both under the age of 18. Using a gifting trust, you can gift $84,000 tax free. Just as important, the Gifting Trust will have protective provisions so that the money for your son cannot be claimed by his spouse, and the money for the grandchildren is used for their college education when they turn 18 – and not a new, bright yellow Mustang.

For more information, contact Phil Rarick, Miami Trust attorney, at (305) 709-2858 or email to info@raricklaw.com.

Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Miami trust attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.

Note: This is a partial list of key items. Invariably there are other considerations. Consult your estate planning attorney.

1. Revise living revocable trust or will:

• Remove partner as beneficiary
• Remove partner as trustee or successor trustee and name new trustee
• Remove partner as personal representative under will
• Remove partner’s children as beneficiaries

2. Sign new Durable Power of Attorney (“DPA”):

• Revoke all prior DPA’s naming partner as agent or attorney-in-fact
• Name new agent to hold your DPA

3. Sign new Health Care Surrogate and Living Will:

• Revoke all prior Health Care Surrogates naming partner as agent or health care surrogate and name new health surrogate

4. Life Insurance Policies beneficiary designations: Is partner a beneficiary?

5. Beneficiary designations for retirement plans (such as 401k) or IRA’s: Is partner a beneficiary?

6. Beneficiary designations for annuities: Is partner a beneficiary?

7. Irrevocable Trusts: Such trusts are often complex and should likely be reviewed by a trust attorney to determine if (1) the trust includes language for termination of the partner’s interest in event of divorce; (2) partner is a beneficiary, trustee or protector; and (3) partner’s children have any beneficial interest in the trust.

For more information, contact Phil Rarick at (305) 709-2858 with Rarick Trusts & Wills Law, a Miami attorney with over 20 years of experience in asset protection.

Special Note

The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Miami asset protection attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.