Law Office of Peter M. Feaman, P.A.FindLaw IM Template2024-02-28T14:29:52Zhttps://www.feamanlaw.com/feed/atom/WordPress/wp-content/uploads/sites/1500803/2020/04/cropped-site-icon-32x32.jpgOn Behalf of The Law Office of Peter M. Feaman, P.A.https://www.feamanlaw.com/?p=485402024-02-28T14:29:52Z2024-02-28T14:29:52ZAfter major life changes
What someone needs from an estate plan changes based on the property that they have, the relationships they maintain and their personal health challenges. Whenever there are major adjustments to someone's family, such as a birth, death, marriage or divorce, significant estate planning updates may be necessary. People may need to add or remove beneficiaries. They may also need to change who holds a position of authority in their estate plan.
Revisions also frequently follow significant changes in personal financial circumstances. The acquisition or sale of major assets may make estate planning updates necessary. Changes in someone's health may also affect the estate planning needs they have. Someone's prior medical wishes may change when they learn they have a terminal illness, for example.
After a few years have passed
Occasionally, someone creates an estate plan while in a relatively stable situation. They may not acquire valuable property, sell off personal holdings or change any of their relationships for years. Therefore, they may not have any obvious reason to update their documents.
However, it is still usually advisable to occasionally review estate planning paperwork every few years to see if it remains an accurate reflection of someone's wishes and relationships. Even without any drastic shifts in personal circumstances, people may come to realize that their current estate planning paperwork does not adequately protect them. They will, therefore, need to update their documents to make them as accurate and protective as possible.
Committing to regular updates to estate planning documents can help ensure that people have control over their protections as they age and their legacy after they die.]]>On Behalf of The Law Office of Peter M. Feaman, P.A.https://www.feamanlaw.com/?p=485392024-02-02T14:56:54Z2024-02-02T14:56:54Zirrevocable trusts can inspire advantages regarding asset protection, tax benefits and estate planning goals.
Asset protection
Once assets are placed into an irrevocable trust, they aren’t the personal property of the creator. This separation can protect the assets from creditors and legal judgments against the creator. For individuals concerned about asset protection, an irrevocable trust offers a way to safeguard assets for future generations. Those in professions with high litigation risks or individuals with significant debt may find this particularly beneficial.
Tax advantages
Irrevocable trusts also offer notable tax benefits. Assets placed in an irrevocable trust are removed from the creator's taxable estate. This can lead to significant estate tax savings, particularly for high-net-worth individuals. Depending on the structure of the trust, income generated by the trust’s assets may not be subject to income tax on the creator's personal tax return. Instead, the trust itself may be taxed, or the beneficiaries may pay taxes on distributions they receive, often at a lower tax rate.
Beneficiary benefits
For beneficiaries, irrevocable trusts provide long-term financial stability and support. Since the terms of the trust can’t be easily changed, beneficiaries can rely on the trust to operate as the creator intended. This can be particularly advantageous for beneficiaries who are minors, have special needs or may not be capable of managing large sums of money responsibly.
Irrevocable trusts can be used to bypass the probate process, allowing for a quicker and more private transfer of assets upon the creator’s death. Since the assets in an irrevocable trust aren’t part of the creator's estate, they can be distributed to beneficiaries without the delays and public scrutiny associated with probate.
Establishing an irrevocable trust can be a critical component in an estate plan. Seeking legal guidance to determine if this option can help you meet your estate planning goals may be wise.]]>On Behalf of The Law Office of Peter M. Feaman, P.A.https://www.feamanlaw.com/?p=485382024-01-30T14:40:14Z2024-01-30T14:40:14ZCaregivers may exert undue influence on testators
Someone leaving instructions about the distribution of their property after their death should set terms that align with their personal values and the state of their relationships. Outside individuals do not have any right to demand specific concessions during the estate planning process.
Unfortunately, some people intentionally try to use their relationship with an older adult as a means of accessing more of their assets after their passing. Other family members or beneficiaries could challenge an estate plan if they can show that an outside party exerted undue influence on the testator.
A situation usually needs to meet certain standards for families to have the option of claiming undue influence in probate court. Generally, the testator must be vulnerable, and a beneficiary must have been in a position to use that vulnerability against them.
Undue influence could involve someone intentionally interfering in the relationship that the testator has with other family members. It could also involve denying someone food or medication to coerce them into setting certain estate planning terms.
Family members can potentially claim that undue influence affected an estate plan when a beneficiary was in a position to exert personal authority over the testator. Undue influence typically undermines someone's actual wishes regarding their personal legacy.
Challenging a will that has been unreasonably influenced by an outside party can help people better uphold the wishes of a deceased loved one.]]>On Behalf of The Law Office of Peter M. Feaman, P.A.https://www.feamanlaw.com/?p=485222024-01-02T18:58:00Z2024-01-02T18:58:00ZDuties of fiduciaries
The duties of each fiduciary may vary depending on their role. Still, they must keep meticulous records, prepare necessary tax documents, and communicate transparently with beneficiaries to maintain trust and transparency throughout the process.
Potential problems with fiduciaries
As with every legal endeavor, it is vital to remember what could go wrong. What problems could arise if a fiduciary does not fulfill their duties? Common problems include:
Lack of communication
Conflicts of interest
Lack of expertise
Because of the above, it is essential for individuals setting up an estate plan to choose their fiduciaries wisely and to ensure that they are trustworthy, capable of completing the task, and responsive to their needs and wishes. Making sure you select the right team to assist you can prevent issues for your family members later on, including expensive and time-consuming litigation.
Understanding the role and responsibilities of a fiduciary in Florida estate planning is crucial for ensuring a smooth and secure transition of assets. Open communication, ethical conduct, and expertise are essential when appointing a fiduciary.]]>On Behalf of The Law Office of Peter M. Feaman, P.A.https://www.feamanlaw.com/?p=485202023-11-08T04:39:05Z2023-11-08T04:39:05ZUnderstanding the will
Your first job in the executor role is fully understanding your parents’ will. This legal document contains all the details of your parent’s wishes for distributing their assets to the beneficiaries they’ve chosen.
As you read through the will, it is essential to get clarity on any legal jargon or details you do not fully understand. If the will contains ambiguous language, it could create disputes and potential legal challenges from beneficiaries or other interested parties if not addressed promptly.
Working through probate
Probate is a legal step in estate administration to validate the will, review the assets and liabilities, and ensure the estate is distributed properly. As executor, you must navigate this often time-consuming and complex process.
You must file the will with the probate court and provide any requested supporting documentation. Navigating probate and paying attention to detail are essential to successfully executing your parent’s will and fulfilling your legal obligations as executor.
Notifying interested parties
Once you become familiar with the will and start the probate process, you must notify beneficiaries and creditors. You will make each person named in the will aware of their inheritance and uphold their legal rights. You must also inform creditors so that you can settle any remaining unpaid debts. You must satisfy all estate debts before distributing the remaining assets to beneficiaries.
Timely, accurate communications and detailed records of all transactions, notifications and responses can help expedite the lengthy probate process. These steps also provide important legal documentation to protect your parent’s estate from creditors who claim they did not receive payment, beneficiaries claiming they did not receive their inheritance and other challenges to the will.
Distributing the assets
The final and ultimate goal as an executor is to distribute your parent’s assets according to their wishes, as detailed in the will. You may need to liquidate stocks, sell real estate, or transfer ownership of certain assets to beneficiaries. This meticulous process requires careful management of finances and other aspects to ensure that all debts and taxes get paid before you distribute any of the assets.
As executor, you must act impartially and distribute the assets precisely as the will describes. Document each step of the asset distribution process to safeguard against any potential disputes or challenges in the future.
Serving as an executor is a significant commitment. By exercising diligence, empathy and patience, you can honor your parent’s final wishes.]]>On Behalf of The Law Office of Peter M. Feaman, P.A.https://www.feamanlaw.com/?p=485002023-08-07T22:44:08Z2023-08-07T22:44:08ZIndividuals who can sue an executor
Not anyone can bring a lawsuit against an executor in Florida. The ones allowed to sue them include the estate's beneficiaries, creditors and other interested persons like unpaid employees. All these parties have to prove that they are financially affected by the executor's actions or inactions.
Grounds for suing an executor
You can sue an executor if you think they have breached their fiduciary duties. This potentially includes:
Failing to act with loyalty and care on behalf of the estate
Not paying the estate's debts or creditors in a timely manner
Breaching any agreement made with the beneficiaries of an estate
Engaging in self-dealing, such as using funds from the estate for their personal benefit
Filing the lawsuit
Probate litigation begins after filing the lawsuit in the county where the decedent's estate is being administered. The court will then issue a summons, which will require the executor to respond to the claims made against them. If they fail to appear or provide an answer satisfactory to both parties, the presiding judge can grant a default judgment on the plaintiff's terms.
If they respond to the court order, the lawsuit will proceed to trial, where each party will present evidence, witness testimony and legal arguments regarding the executor's accountability for their actions or inaction. The court may then decide on what action needs to take place - it could include removing an executor's powers, ordering them to pay compensation or giving the estate other relief.
Whatever the resulting decision may be, it is important to remember that suing an executor should always be a last resort. It may be helpful to consider other avenues, such as mediation or arbitration, to resolve any disputes that may arise because they are much faster, more affordable and considerate to all parties involved.]]>On Behalf of The Law Office of Peter M. Feaman, P.A.https://www.feamanlaw.com/?p=484982023-05-04T20:19:12Z2023-05-04T20:19:12ZContesting a will in Florida
Interested parties can contest a will in Florida if they have good reason to believe that the will is invalid because of fraud, undue influence or coercion. Wills are contested by filing a petition in probate court, and a judge will rule on the matter if the contesting party or parties cannot reach a settlement with the estate. When interested parties receive a Notice of Administration that informs them that the decedent has passed away, Florida law gives them only 90 days to contest the will. The permitted time is reduced to just 20 days if interested parties receive a Formal Notice of Petition for Administration.
Penalty clauses
Some testators try to avoid this type of estate litigation by including provisions in their wills that penalize parties who mount challenges. Wills that include penalty clauses are permitted in some parts of the country, but provisions that penalize will contests are not enforceable in Florida.
Contentious disputes
Will contests are often contentious disputes that tear families apart. When assets are placed in a trust, probate is not necessary and a will contest may be avoided. A pour over will may be needed to transfer any remaining assets into the trust when the grantor passes away, but these estate planning documents are rarely challenged as they have no named beneficiaries. If the remaining assets are valued at $75,000 or less, probate is simplified per Florida law.]]>On Behalf of The Law Office of Peter M. Feaman, P.A.https://www.feamanlaw.com/?p=484962023-04-11T19:39:04Z2023-04-11T17:49:02Zyour estate plan. A recession can affect the value of your assets, meaning that if you pass away, you will leave your heirs and beneficiaries less in total wealth. However, this can be an opportunity as well as a challenge.
The advantage of giving gifts during your lifetime
Giving large gifts to your loved ones and other intended heirs now instead of waiting until you pass on may be especially advantageous during a downturn. That's because the value of your ownership stake in a business, real estate holdings and other major assets could drop enough to slip below the federal gift tax thresholds. This gives you the chance to pass on an asset as a gift during your lifetime without the recipient having to worry about paying a big tax bill.
The IRS has said the limit for gift-giving from a living person and passing on assets through probate will be $12.92 million for 2023. This figure changes from year to year, but for most people, this is more than enough, especially considering it applies to both members of a married couple separately. Keep in mind that in 2026, the gift/estate tax exemption is expected to revert to $7 million.
Get help to avoid a costly mistake
If you are considering making a large gift as part of your estate planning strategy, you may need to consider factors like the exact value of the gift and how much of it to give this year. Advice from your estate planning attorney can help you avoid unintended consequences.]]>On Behalf of The Law Office of Peter M. Feaman, P.A.https://www.feamanlaw.com/?p=484952023-02-23T22:44:46Z2023-02-23T22:44:46ZClear communication and listening
Your goal is to show how your estate plan will protect your family and the assets within your estate. So how do you comfortably engage your spouse on the topic of estate planning? Here are some important pointers:
Select an opportune time to have this discussion, typically when things are calm in your household and personal lives.
Make your spouse understand the importance of this conversation. Perhaps provide an example of an estate that was mismanaged, and family members were kept in the dark.
Clear communication is essential to prevent any confusion and uncertainty. Make sure to answer every question that your spouse may have. You will enlighten your spouse in ways that may include providing him or her the foresight in taking advantage of certain tax strategies.
Listen to your spouse’s perspective. He or she may disagree on certain elements of your estate plan or may even have some beneficial insight and suggestions that could improve your estate plan.
Along the way, you may learn things. For example, perhaps you had your spouse in mind as the executor or trustee. But, during the estate planning discussion, you learn that your spouse may not be comfortable with those responsibilities.
A topic that requires attention
Discussing estate planning may make some people nervous and fidgety. However, this is a subject that needs attention in any household. Make sure you have this essential conversation with your spouse.]]>On Behalf of The Law Office of Peter M. Feaman, P.A.https://www.feamanlaw.com/?p=484942023-01-30T21:31:50Z2023-01-30T21:31:50ZEssential traits
The following considerations can guide you toward an individual with the right qualities to manage your affairs in a way that serves your estate and beneficiaries while providing you with peace of mind.
Trustworthiness. Choose an executor you know you can trust to handle your private affairs with honesty and integrity.
Capable and willing. The individual should possess the skills and knowledge to manage your assets and distribute them to your beneficiaries according to the wishes detailed in your estate plan. He or she should also be willing to take on these responsibilities without feeling overwhelmed or burdened.
Available. The chosen person needs to have the time to devote to fulfilling his or her executor duties. Depending on various factors, including the complexity and size of your estate and the number of beneficiaries, the job can involve a great deal of work and responsibility.
Positive financial standing. An executor must have suitable finances with no liens, excessive debt, bankruptcies or lack of credit history. Many courts require the executor to become bonded as insurance to pay your beneficiaries if the executor disappears with your assets. People with a poor financial history will not be eligible for a bond, and the court will ask you to choose a new executor.
Neutral party. Sibling and other rivalries can last a lifetime, which creates problems if one of these individuals is the executor. Issues of unfair treatment, mean behavior and other problems put your estate at risk and can prevent some of your beneficiaries from receiving what you intended for them. You can have co-executors and try to force two people to get along, but the most successful strategy is to name an executor outside the sphere of any drama.
Properly qualified. The previous points described the positive attributes to look for in an executor. There are some qualities to avoid, such as choosing an executor who is elderly and may not survive long enough to fulfill his or her duties. You can name a younger, secondary executor to prevent this issue.
Additionally, if your chosen executor is a non-U.S. citizen or a minor, the court will not allow this individual to be your executor and will provide a court-chosen replacement. Likewise, if your chosen executor is a former felon, he or she is also disqualified from the position, and the court will appoint a new executor.
Now is the time to consider your choice for an executor who can properly and reliably manage your estate affairs.]]>