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Asset Protection Planning

Questions to ask before retirement

By Asset Protection Planning, Estate Planning, Government Benefits, Long-Term Care

For many seniors, retirement is a time of relaxation and having opportunities to explore their interests and the world. But before making the transition into retirement, there are some questions that you and your spouse should discuss.

 

  • What is the best time for my retirement? There are several factors you and your loved ones should consider before making the decision to retire. A large topic to discuss is how best to maximize your Social Security spousal benefits. You should also assess your family’s financial needs and consider the ways in which your retirement could impact your loved ones.
  • What lifestyle do I want to pursue? Everyone has a different vision for retirement. While some wish to travel the world, others plan to stay close to home. By having an idea of your lifestyle, you can properly prepare for your retirement.
  • How do I plan for long-term care? Planning for long-term care can be a long process. It is a good idea to meet with an elder law attorney to properly construct a plan. Planning ahead can save time and money and reduce unnecessary stress. Planning for long-term care involves setting up end-of-life documents, finding the right assisted living facility if necessary, and getting the best healthcare coverage for your needs.

 

If you wish to set up estate planning documents or plan for your retirement and end-of-life decision-making, please contact our office at (941) 906-1231 to speak with one of our attorneys.

 

April 25, 2017
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What is a Pooled Trust?

By Asset Protection Planning, Government Benefits, Medicaid Planning

A first-party supplemental needs trust is created to allow disabled persons to receive the benefit of their funds in a trust while still qualifying for and receiving government benefits. An alternative to this trust is a pooled trust. A pooled trust is created by a non-profit organization, and individual beneficiaries can create accounts within the trust.

By pooling the assets of disabled persons, the organization can manage one master trust and maximize the benefits for the beneficiaries. The non-profit can make more stable investments and provide more services than a normal supplemental needs trust.

Most people with special needs join a pooled trust when they do not have anyone to create a first-party supplemental needs trust for them. And just like a first-party supplemental needs trust, a pooled trust is used for people to qualify for and remain eligible to receive government benefits, such as Medicaid and SSI.

A couple advantages of a pooled trust are the low costs and the fact that the funds will be used to help others with disabilities.

If you have further questions on this topic, contact our office at (941) 906-1231 to schedule an appointment with one of our attorneys.

April 14, 2017
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Estate Planning for Same-Sex Couples in Florida

By Asset Protection Planning, Estate Planning, Government Benefits, Tax Law

 The U.S. Supreme Court rulings in the 2013 Windsor v. U.S. and the 2015 Obergefell v. Hodges cases resulted in changes for same-sex couples in areas such as estate planning and tax filing.

It is important that same-sex couples living in Florida take the proper steps in their estate planning, and specify key details that will ensure their protection under the law.  Such planning may include creating estate planning documents such as a last will and testament, or Revocable Trust, durable power of attorney, living will, and a designation of pre-need guardian.

April 7, 2017
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Restricted Filing: Changes to Social Security May Affect Retirement Planning

By Asset Protection Planning, Elder Law, Government Benefits

In 2015, Congress passed the Bipartisan Budget Act of 2015 which put an end to Social Security strategies that allowed couples to grow their spousal benefits. The two strategies “file and suspend” and “restricted filing” were used by married couples and were known as “claim now, claim more later.”

 

Restricted Filing

 The Congressional legislation banned restricted filing for individuals under the age of 62 as of January 2016. Restricted filing allowed an individual who was eligible for both a spousal benefit and a retirement benefit to choose just the spousal benefit at the retirement age of 66. Thus, the benefit could continue to grow at 8% each year and then that individual could opt for a larger benefit at any time up to the age of 70.

 

Despite these changes, there are still ways to grow your Social Security benefits. One method of accomplishing this is by deferring your payout. Because Social Security grows by 8% each year between your retirement age (usually 66 or 67) and 70, you can amass a sizeable increase if you choose to defer. Deferring payment also helps spouses by increasing the Social Security survivor benefit.

March 3, 2017
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How to Prevent Property from Getting Lost and “Unclaimed”

By Asset Protection Planning, Estate Planning

In the last few blogs, we discussed the process of finding and claiming lost property. However, there are safeguards and steps to follow in order to prevent your property from getting lost.

Because property goes unclaimed due to the absence of communication between the financial institution and the owner of the account, you should contact the institutions each year and notify them of any changes to your address, financial matters, or marital status.

It is also imperative to maintain detailed and accurate financial records. These records should also include records of bank account numbers, types of accounts, insurance policies, and stock certificates.

After receiving checks such as for wages, dividends, and insurance settlements, make sure to cash them without delay. Also, if you have a safe deposit box, record its number, bank name, and provide the extra key to a person you trust.

Lastly, you should prepare a Last Will and Testament that sets up the distribution of your assets. To create or update these documents, contact our office at (941) 906-1231 to schedule an appointment with one of our attorneys.

February 17, 2017
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Claiming Lost Property in Florida

By Asset Protection Planning, Estate Planning

To claim lost property, go to your state’s unclaimed property administrator’s office. There you will find the proper instructions and forms. If you are a Florida resident, go to https://www.fltreasurehunt.org/.

The claim forms may require certain documentation such as a copy of current identification and proof that you are the owner of the account. The Florida Department of Financial Services may take up to 90 days to make a determination about the claim.

If you are a guardian or acting as an agent for someone under a durable power of attorney, you can complete a search on behalf of the individual for whom you advocate, if you are authorized to do so.  To claim the property as a guardian, you may be required to provide a copy of the documents appointing you as guardian or power of attorney to ensure you actually have the authority to do so.

And for executors of an estate or personal representatives, you should also search for any unclaimed property of the deceased individual. Unlike the process for guardians and agents, the search process may be more difficult for executors and personal representatives due to the documents that you must produce. However, Bach & Jacobs, P.A. represent and assist executors and personal representatives in the administration of estates, including ancillary administration, and can guide you through the process.

February 14, 2017
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How do I find unclaimed property?

By Asset Protection Planning, Estate Planning

Companies and financial institutions are required under law to returns the money from abandoned accounts to the state of the owner’s last address.

To find missing funds, you could begin your search at http://www.missingmoney.com/ which is endorsed by the National Association of Property Administrators. Some companies and institutions also assist you in finding your property for a percentage of the value they help recover.

However, some of these offers are not always legitimate. In Florida, the state’s unclaimed property administrator gives a free online search at to https://www.fltreasurehunt.org/. Contact our office at (941) 906-1231 meet with an attorney regarding the transfer of your deceased loved one’s assets and to ensure that your lost property search is conducted properly.

February 10, 2017
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What is unclaimed property?

By Asset Protection Planning, Estate Planning

Unclaimed properties are the assets in accounts that have remained inactive for more than a year. This unclaimed property includes assets in checking and savings accounts, stocks, dividends, trust distributions and more.

The financial institutions where these accounts are located are required under state law to return these accounts to the state’s unclaimed property administrator. In Florida, if the rightful owner never makes a claim for the assets being held by the administrator, then the unclaimed property goes into the State School Fund for public education. The process of claiming property is simple and at no cost.

Assisting in the search for unclaimed property is part of the services that Bach & Jacobs, P.A. provide to personal representatives, trustees, and families of those who have passed away. Bach & Jacobs is a full services probate and trust firm that can assist you in recovering any unclaimed assets titled in the name of your deceased loved one.

February 7, 2017
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What property does not go into a living trust?

By Asset Protection Planning, Estate Planning

While it is common for people to put valuable assets in their living trusts, there is a long list of property that is usually excluded from trusts.

 

Property of Little Value

Property of little value may not need to go through probate, so it typically does not need to be included in a trust.

 

Property You Frequently Buy or Sell

If you don’t expect to own the property at your death, do not put it in your trust.

 

Cars

If your car is of little value, as most cars are, it makes sense not to transfer ownership to your living trust. Some lenders and insurance companies are hesitant to insure a car owned by a trust. This could become a confusing and burdensome problem. However, if you consider the vehicle to be a valuable antique, or if it is a mobile home attached to land, you may want to include it in your trust and transfer the ownership to the trust.

 

Life Insurance

The proceeds of your life insurance are distributed according to your policy and do not go through probate. Thus, you do not need to name your trust as the beneficiary of your life insurance policy.

 

Personal Checking Accounts

Because money moves in and out of these accounts so frequently, they are typically left out of living trusts.

 

IRAs, 401(k)s

Retirement accounts cannot be owned by a trust. However, you can always name a trust as a beneficiary or designate a beneficiary in the account documents to receive the assets when you pass away.

 

Cash

While there’s no way to transfer tangible cash to a living trust, you can transfer ownership of a cash account to a living trust. By designating a beneficiary, that individual will receive the remainder of those accounts. Once you put money in a bank account, transfer it to yourself as trustee and name the individual in the trust document as the beneficiary.

January 13, 2017
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What property goes into a living trust?

By Asset Protection Planning, Estate Planning

Unlike a testamentary trust, which is set up in a will and takes effect after someone’s death, a living trust is established and funded during one’s lifetime. A revocable trust can also be utilized to avoid probate, if that is a priority for you.

Typically, a revocable living trust involves three parties: the grantor, the trustee(s), and the beneficiaries. It is a good idea to include your most valuable property in a living trust. Some of these assets may include your:

  • House
  • Stocks, bonds, and mutual funds
  • Jewelry
  • Antiques
  • Brokerage accounts
  • Business interests

For real estate that is jointly owned, it is important to remember that you do not need to transfer it into a trust to have the property pass outside of probate because the property will go directly to the co-owner if you die by operation of law.

January 10, 2017
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