Estate Planning

One Thing Every Parent Should Have For Their Children- Instructions!

Published on: September 3, 2019 | by Rarick & Bowden Gold

By Phil Rarick, Weston Estate Planning Attorney

You and your spouse are finally going out for the evening. The babysitter, a high school student, has arrived and you are loading the young woman with last minute instructions: time for bed, make sure the kids brush their teeth, books to read little Tommy, etc, etc. What is ironic is many such fretful parents leave more instructions for their babysitter when they are out for a brief night out than they do if they would suddenly die.

Many parents have life insurance to provide for their spouse and children. What is missing here is that life insurance without detailed instructions could mean that your son or daughter gets a windfall when they turn 18 and then proceed to blow it on a hot car and high living – your dream of them getting a quality post high school education is up in smoke.

What Is the Federal Gift Tax Annual Exclusion for 2019?

Published on: February 13, 2019 | by Rarick & Bowden Gold

By Phillip B. Rarick, Esq. and Jay R. Beskin, Esq.

Last year the Federal annual gift tax exclusion was $15,000 and the amount remains the same for 2019. This means you can walk down the street and give out $15,000 to every person you meet and not have to file a gift tax return. If you are married, husband and wife can combine their annual exclusions and give $30,000 to each child or grandchild. As long as your gifts are below the annual exclusion amount, they are not counted against the lifetime gift exemption which is currently $11.4 million per person (Note: Be careful this is temporary and expected to drop to $5.6 million in 2026).

Note: Be very careful about making outright gifts to children. It is far safer to use a “Gifting Trust” so that the money is wisely used for the child’s college education or other needs – and so that the child does not blow it when he turns 18 or his creditors grab it when he is in his 20’s.

When Bad Things Happen To Good Families: Keeping Peace In The Family Upon Death Of Family Matriarch Or Patriarch

Published on: January 29, 2019 | by Rarick & Bowden Gold

By: Phil Rarick, Esq.

A Short Story With a Big Lesson

Everyone admired the Anderson family. Walter and Joan had 5 children and had worked hard all their lives to give their children the best of American life: each child received a car when they were a junior in high school – provided they had a 3.2 GPA. Two children went to FSU, two went to University of Miami, and one to Cornell. They all enjoyed the benefits from Walter and Joan’s small business – a flower import business next to the Miami airport. Walter and Joan had started the business 45 years ago, the year they were married, and it had grown into a business with 19 employees and many good customers including Publix.

3 Ways Your Thoughtful Florida Will Can Be Made Meaningless

Published on: January 23, 2019 | by Rarick & Bowden Gold

By: Phil Rarick

Here is a scenario we see more and more with persons who try to do estate planning themselves, specifically Florida Wills, without consulting with an experienced estate planning attorney. Louise has three adult daughters, Erma, Madeline, and Roseanne. The daughters are all close and speak to each other at least once a week. Louise wants to treat them all equally. Louise has four major assets: her home, a traditional IRA, a checking account, and a savings account.

Louise downloads a Florida Will form on the internet and says each child is to get one-third of everything she might own at death. She is careful to sign the will before a notary and two witnesses with a “Self-Proving Affidavit”. Louise dies, and the daughters schedule a meeting with a Probate Attorney. At the meeting the probate attorney informs the daughters that the Will is good under Florida law. However, despite the Will, 100% of the assets go to Erma. Madeline and Roseanne are not happy. How can this happen?

Three Common Problems We See With Non-Florida Wills

Published on: January 8, 2019 | by Rarick & Bowden Gold

By: Jacqueline R. Bowden Gold

Our office handles probate estates for many out of state residents through our Florida Counsel services. In handling the estates there are three common problems we see with Non-Florida Wills that can easily be avoided by consulting with a Miami Estate Planning attorney. If you have a non-Florida resident who owns Florida real estate an ancillary administration may be required upon their passing. You should consider these problems when drafting their Will:

Naming an out of State Attorney as Personal Representative or Executor.

8 Point “Porcupine” Asset Protection Strategy

Published on: October 9, 2018 | by Rarick & Bowden Gold

May the odds be with you –but frankly they’re not. More than 60% of doctors over the age of 55 have been sued at least once, according to a new survey by the American Medical Association (AMA). Doctors are not the only professionals at risk. Virtually all small business owners and professionals face multiple risks from the person injured at a party on one of your properties, the “friend” who borrows your jet ski and hits a swimmer, dissatisfied customers, disgruntled employees, and unhappy ex-partners.

It is a simple reality: We live in a hostile legal environment, and the chance you will not face costly litigation at some point in your career is not good. The good news is that you can fight back. Here is a quick summary of our “Porcupine” Asset Protection Strategy with tested legal strategies that can help protect your investments and property.

Make Your Assets As Unattractive as Possible to Attack with a Good Asset Protection Strategy

Florida’s Sweeping Elective Share

Published on: October 6, 2018 | by Rarick & Bowden Gold

By Phillip B. Rarick, Esq., Miami Probate Attorney

Florida’s 30% elective share law was completely rewritten in 2001 because the old law could be easily circumvented by placing assets in a revocable trust or using non-probate transfers (e.g. life insurance, IRAs etc.) In an effort to curtail such tactics, the legislature overhauled the statute and broadened the share. The result is an expansive elective share that sweeps into the decedent’s “elective estate” many non-probate assets. See F.S. §732.201 —§732.2155.

What Is Included? Florida’s elective share statute retains the 30% share under prior law, but introduces the concept of the “elective estate” (sometimes referred to as “augmented estate”) that consists of the following property interests under F.S. §732.2035:

Does A Trust Need to Be Recorded, Filed or Registered in Florida?

Published on: October 18, 2017 | by Rarick & Bowden Gold

Does A Trust Need to Be Recorded, Filed or Registered in Florida?

One of the most common questions I get as a Weston estate planning attorney is, do I need to record my living trust? Some persons believe that a trust needs to be publicly recorded like a corporation or a deed. This is generally wrong; not only is recording not required or needed for most trusts, in most cases recording would negate one of the chief benefits of a trust: confidentiality. Let’s look at more specific questions.

Does a Living Revocable Trust Need To Be Recorded During the Life of the Trustmaker?

Four Problems With “Simple Wills” In Florida

Published on: October 6, 2017 | by Rarick & Bowden Gold

By: Phil Rarick, Estate Planning Attorney

Many persons are tempted to have a “Simple Will” in which they want everything they own at death to go outright first to their spouse, and if the spouse does not survive then to their children in equal shares. Rather than take the time to consult with a Weston estate planning attorney, many persons are tempted to write the Will themselves, using will forms they see advertised on TV. Read more: 5 Common Mistakes With Florida Do-It-Yourself Wills

In our practice we have seen many so-called “Simple Wills”. Most have big problems that end up costing the family much more fees and causing more stress than if the person had the Will drafted by an experienced Weston estate planning attorney. Here are just four big problems, but there are many more:

The Problem With A Florida Professional Association

Published on: May 3, 2017 | by Rarick & Bowden Gold

Big Question: Can your practice survive if you suddenly die or become incapacitated?

Royal-Flush-florida-professional-association-post-300x215 Recently, a highly respected physician suddenly died owning 100% of his practice in a Professional Association. No other person was listed on Florida’s Sunbiz.org as an officer. Payroll was paid on a weekly basis. Even though the Professional Association had been assigned to the doctor’s living trust, the bank (a large Florida bank) refused to give the successor trustee access to the Professional Association’s bank accounts citing F.S. 621.06, 621.09 and 621.11.

The statutes cited limit ownership of a P.A. to a licensed professional. We contend the Bank’s interpretation is overly narrow because no court has held that transfer of any interest to a living revocable trust is a transfer of beneficial interest. A living revocable trust is essentially the settlor. Although we believe the bank’s interpretation of these statutes is wrong it is not worth fighting the bank. The bank holds all the valuable cards: the King, the Ace and of course all the money.