miami probate attorney

Standby Florida Elective Share Trusts

Published on: October 6, 2012 | by Rarick & Bowden Gold

By Miami Probate Attorney Phillip B. Rarick, Esq.

Florida’s elective share statute allows attorneys to draft standby Florida elective share trusts. (For a summary of Florida’s elective share see our post: Florida’s Sweeping Elective Share.) As of April 23, 2002, trusts that create property interests contingent upon an election being made are now qualified to fund the spouse’s elective share interests. The requirements for such a trust are set forth at F.S. §732.2025(2) and include: (1) surviving spouse must be entitled to use of the property for life or have all of the income payable as least annually; (2) the surviving spouse has the right to make the trust productive of income or convert it within a reasonable time; and no person other than the spouse has the power to distribute income or principal to anyone other than the spouse.

Rarick, Beskin & Garcia Vega has been trusted by numerous law firms and many families during the past 18 years for probate, estate planning, trust and asset protection cases. To schedule an appointment, call (305) 556-5209 or email info@raricklaw.com.

Federal Gift Tax Update: The Window May Close Soon

Published on: September 2, 2012 | by Rarick & Bowden Gold

By Miami Trust Attorneys Phillip B. Rarick, Esq. and Jay R. Beskin, Esq.

I. The Opportunity – And The Problem.

The Opportunity: Gifts to family members and others are free of the U.S. gift tax if under the exemption. Specifically, U.S. Citizens in 2012 can give away assets worth $5,120,000 ($10,240,000 per couple) without having to pay any federal estate tax or gift tax.

How Long Does Florida Probate Take?

Published on: August 18, 2012 | by Rarick & Bowden Gold

The time from to open and close a Florida probate estate depends on the type of administration – and of course upon the attorney. If the attorney is not experienced in Florida probate or does not concentrate in this field, expect the probate to take much longer and cost more.

A. Summary Administration: The Fast Track

The fastest Florida probate procedure is Summary Administration, but it may only be used if (a) the value of the decedent’s entire estate subject to administration in this state, exclusive of exempt property, does not exceed $75,000; or (b) the decedent has been dead for more than two years, regardless of the size of the estate. F.S. 735.201(2). For more information about Summary Administration, see our Florida Probate Quick Reference Guide

How Much Does Florida Probate Cost?

Published on: August 18, 2012 | by Rarick & Bowden Gold

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

I. Executive Summary

Attorney’s fees and personal representative’s (“PR”) fees make up most of the costs for Florida Probate. The biggest cost are usually attorney fees. Florida probate attorney fees depend on whether the proceeding is Summary Administration – usually the quickest and least expensive – or Formal Administration. Many factors will enter into the fees, including whether the probate is contested, is subject to estate and other taxes, involves the sale of real estate, and requires advice regarding homestead. The second biggest cost are usually PR fees. However, since PR fees have a similar presumptive statutory schedule as attorney fees, they can equal or exceed attorney’s fees.

What Are The Successor Trustee’s Duties?

Published on: August 4, 2012 | by Rarick & Bowden Gold

Answer by Miami Trust Attorney Phillip B. Rarick, Esq.

Below is a summary of the basic obligations of a successor trustee of a trust.

Note: Trust administration requires strict compliance with the trust terms and often analysis of complex tax requirements. If you are a successor trustee, we can help. It is important that you follow the advice of an experienced Trust Administration Attorney to avoid or reduce estate taxes or income taxes and to protect yourself against personal liability.

What Is An Irrevocable Life Insurance Trust (ILIT)?

Published on: August 4, 2012 | by Rarick & Bowden Gold

Answer by Miami Trust Attorney Phillip B. Rarick, Esq.

The most common purpose of the Irrevocable Life Insurance Trust (“ILIT”) is to help preserve the full value of the policy by protecting the insurance proceeds from the U.S. federal estate tax – currently at a 40% rate.

The ILIT is the owner and beneficiary of life insurance policies, usually on the lives of the donor and the donor’s spouse. Since the trust, and not the donor, owns the policy, the insurance proceeds will not be included in the donor’s federal gross estate. ILITs allow clients to replace the value of estate assets given to charitable entities. They are also beneficial for clients who wish to increase the value of assets left for their heirs at reduced tax costs. Life Insurance Trusts are generally structured so that the initial gift and subsequent gifts to the trust qualify for the annual gift tax deduction.

What Is A Special Needs Trust – And Why It Is So Important

Published on: August 4, 2012 | by Rarick & Bowden Gold

By Miami Trust Attorney Phillip B. Rarick, Eq.

Is there someone in your family who has or may have special needs? Does someone in your family currently receive, or potentially in the future will be receiving, government benefits for their medical or other needs? If so, it is important that you know the benefits of a Special Needs Trust.

The Special Needs Trust allows an individual to continue to receive governmental assistance when they either inherit assets or when they receive assets through litigation or other unexpected sources. Basically, a special needs trust is a discretionary trust designed to preserve governmental benefits for a disabled or aged beneficiary. Distributions from the special needs trust are designed to supplement the beneficiary’s public benefits, not supplant them. There are a two different types of special needs trusts: (1) a third party special needs trust, and (2) a self-settled special needs trust.

What is the Current Estate Tax or “Death Tax”?

Published on: August 4, 2012 | by Rarick & Bowden Gold

Answer by Miami Trust Attorney Phillip B. Rarick, Esq.

The estate tax exemption for 2012 is $5.12 million; estates above $5.12 million are taxed at the rate of 35%. Unfortunately, absent congressional action, the estate tax exemption will fall back to $1 million per person with a top rate at 55% on January 1, 2013. While many commentator’s do not think this will occur, this is the current law and will remain so if Congress continues to be mired in a deadlock (and many commentators believe this deadlock will continue for years). The good news is that 2012 is an excellent year to make gifts in a tax efficient way as the lifetime exemption for gifts is also $5 million.

Important Planning Note: Estate tax law is fluid and difficult to predict. The estate tax is a moving target. These realities make it essential that you establish and maintain a relationship with an estate planning attorney who will keep you advised of the latest changes in the law.

How To Avoid Probate?

Published on: August 4, 2012 | by Rarick & Bowden Gold

Answer by Miami Trust Attorney Phillip B. Rarick, Esq.

The best way to avoid probate is to have a basic estate plan that includes a living revocable trust as your master set of instructions to make sure you give what you have, the way you want, and when you want.

When you set up a Living Trust, you transfer assets from your individual name to the name of your Trust, which you control. Technically, you no longer own anything, so there is nothing for the courts to administer when you die or if you become incapacitated. The concept is very simple, but this is what keeps you and your family out of the courts — even if you own assets in other states.

What Is Probate?

Published on: August 4, 2012 | by Rarick & Bowden Gold

Answer by Miami Probate Attorney Phillip B. Rarick Esq.

Probate is the legal process through which the court makes sure that, when you die, your Will is legally valid, your debts are paid and your assets are distributed according to your Will and Florida law. It is a bureaucratic, costly, and time consuming procedure to transfer title from your name to your beneficiaries.

For more information about Florida Probate click here: Florida Probate Quick Reference Guide.