Skip to main content
Monthly Archives

February 2019

What is a “CLAT”?

By Asset Protection Planning, Tax Law

A Charitable Lead Annuity Trust, or “CLAT,” is one in which designated charitable beneficiaries receive annual payments during the term of the Trust. Upon the termination of the Trust, designated non-charitable beneficiaries receive the remaining assets of the Trust free from the estate or gift taxes which might otherwise apply.

In a CLAT, the owner assigns certain percentages of his/her original charitable donations to be gifted to specific charities, based on original fair market values, every year. Generally, the grantor of a CLAT aims for charitable annuity payments that will equal all or most of the taxable value of the assets in the Trust. In this manner, the grantor can give as many of the remaining assets to his/her beneficiaries as possible, estate-tax-free.

If you are considering this option in creating your Trust, please feel free to contact the attorneys of Bach, Jacobs & Byrne, P.A., highly-skilled in estate planning and high-net-worth tax planning. Call us at (941) 906-1231 to schedule an appointment.

February 25, 2019
Love0

What are the benefits of using a corporate trustee?

By Asset Protection Planning, Estate Planning, Probate

The decision of who to name as trustee of your Trust is an important one. An option available to you when making this decision is to designate a corporate trustee, a company that will manage the assets in your trust in place of an individual trustee. Some of the advantages of choosing a corporate trustee include:

-Corporate trustees typically have extensive experience managing Trusts

-Corporate trustees are not as susceptible to emotional influence when managing Trusts as family members might be

-Using a corporate trustee removes the potential for conflict among family members who want to be named individual trustee

-Corporate trustees generally have considerable resources available to them when managing Trusts that individual trustees might lack

That said, there are, of course, several disadvantages to choosing a corporate trustee over an individual one. Examples of these are:

-Corporate trustees are often more expensive than individual trustees

-Corporate trustees might not be as familiar with your exact situation as an individual trustee might be

-Corporate trustees might not account for the emotional ramifications of asset management decisions to the extent that an individual trustee might be

Whether you name a corporate or an individual trustee, it is important to name a successor trustee in the event that the one you named is not able to serve. For help drafting a Trust, or to review an existing Trust, please call the elder law and estate attorneys of Bach, Jacobs & Byrne, P.A. at (941) 906-1231 to set up a consultation.

February 21, 2019
Love0

What should I do if I think my loved one is the victim of elder abuse?

By Elder Law, Health, Long-Term Care

According to the National Council on Aging, approximately 1 in 10 Americans above the age of 60 have experienced some form of elder abuse. So what should you do if you suspect a senior citizen is the victim of elder abuse?

The first thing to do is to call the Florida Abuse Hotline at 1-800-962-2873 – all Florida citizens are mandatory reporters of elder abuse. You can also use the online form on the Florida Department of Children and Families website at https://reportabuse.dcf.state.fl.us/Adult/AdultForm.aspx. While you may be able to keep the names anonymous, it is necessary to provide the county, state, and specific location where the victim is currently living. A description of the abuse is also required.

You can find more information about recognizing the signs of elder abuse on our blogs “Recognizing Nursing Home Abuse and Neglect” and “What to Do if Elder Exploitation Is Suspected.”

 

February 19, 2019
Love0

What are the qualifications to serve as a personal representative?

By Estate Planning, Probate

In Florida, the qualifications to serve as personal representative of an estate, as set forth by the Florida Probate Code, are as follows:

-The personal representative has never been convicted of a felony

-The personal representative is mentally able to perform his/her duties

-The personal representative is physically able to perform his/her duties

-The personal representative is 18 years of age or older

Furthermore, the personal representative must be a Florida resident, unless he/she is a family member within a particular degree of relationship to the decedent.

Are you unsure whether you or the individual you would like to serve as personal representative of your estate is qualified and eligible for appointment under the law? Please contact the elder law and estate attorneys of Bach, Jacobs & Byrne, P.A. at (941) 906-1231 to schedule an appointment to discuss your case.

February 15, 2019
Love0

What is the Senior Safe Act (SSA)?

By Asset Protection Planning, Elder Law

The Senior Safe Act is a new federal law intended to fight financial elder abuse by promoting the reporting of suspected elder abuse by financial institutions. Prior to the passage of this law, there were reports of banks, investment advisors, and brokers refraining from reporting elder abuse to the authorities out of fear of lawsuits resulting from false claims of fraud or elder exploitation. Under the Senior Safe Act, financial institutions will be freed from liability if they report suspected financial elder abuse, so long as they have trained their employees in how to detect such exploitation.

Read more about the Senior Safe Act on the AARP website at https://www.aarp.org/politics-society/government-elections/info-2018/congress-passes-safe-act.html.

February 11, 2019
Love0

Should I title a car in the name of a Trust?

By Estate Planning, Probate

Though there are exceptions to every rule, generally there are several reasons not to title a vehicle in the name of a Trust. For example:

-If your vehicle is involved in an accident and you get sued, your Trust becomes a party to the lawsuit – this can create significant complications

-Automobile insurers in Florida sometimes refuse to insure vehicles named in Trusts

-A Trust is generally not necessary to transfer a vehicle’s title after death –in some cases, the DMV Handbook allows the Florida Department of Motor Vehicles to accept the death certificate, the Will, the vehicle title, and a transfer fee as sufficient for transferring the vehicle’s title

For antique automobiles, mobile homes, and certain other situations, circumstances may be different. To review your estate plan documents or to get help preparing new ones, the attorneys of Bach, Jacobs & Byrne, P.A. can provide you particularized advice. Call (941) 906-1231 to schedule a consultation.

February 7, 2019
Love0

Can I prevent my beneficiaries from knowing what other beneficiaries are receiving in my Will?

By Estate Planning, Probate

If a testator wants to distribute assets to multiple children in different amounts, he/she might want to prevent each beneficiary from knowing what the others are getting in order to mitigate strife and avoid hurt feelings. However, in Florida, each beneficiary of a Will has the right to acquire a copy of the Will. Even if a beneficiary was only left $1, the Florida Probate Code mandates that he/she still must have access to a copy of the Will in its entirety, after the death of the testator.

However, there are some alternative methods one might pursue to keep the asset distribution private from certain beneficiaries. First, one can leave assets using “Will substitutes,” such as payable-on-death accounts (“POD accounts”). With multiple POD accounts, one can distribute assets to multiple beneficiaries without each knowing the amount the others received. POD assets do not have to go through the probate process, either, so there will be no court record of the asset distribution.

Another option is to leave one’s assets in multiple Trusts, with only certain individuals named in each Trust as beneficiaries. This can be expensive, but it is another way of preventing beneficiaries from knowing the exact amounts each is receiving. As with Wills, the beneficiaries under each Trust are entitled to a copy of the Trust under the Florida Trust Code.

To prepare your estate plan documents with trustworthy and experienced trust and estate attorneys, or to review existing documents, please contact Bach, Jacobs & Byrne, P.A. at (941) 906-1231.

February 5, 2019
Love0

Medicaid Work Requirements Struck Down by Federal Judge

By Elder Law, Medicaid Planning

In June 2018, a federal judge blocked the Kentucky Medicaid plan which would have required many recipients to work or volunteer in order to stay covered. While the plan included exemptions for pregnant individuals, primary caregivers, and full-time students, all Medicaid recipients deemed able to work would have had to train for a job, volunteer, or work in order to continue receiving benefits.

In the future, more cases surrounding the issue of Medicaid work requirements may emerge, as several other states have already gotten approval from the current administration to include work requirements in their statewide Medicaid plans. To learn more about Florida’s Medicaid program, visit the website of the Florida Agency for Health Care Administration, http://www.fdhc.state.fl.us/.

February 1, 2019
Love0