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Estate Planning

Appointing a Digital Fiduciary

By Asset Protection Planning, Elder Law, Estate Planning

            When planning for the transfer of your digital assets, you should be sure the person given the power to access and disperse information from your digital accounts is technologically savvy.  Most people appoint a surviving spouse or child who is financially literate to take care of many of their assets as personal representative or trustee.  If this person is not familiar enough with computers and the technology associated with your digital accounts, you can appoint a separate digital fiduciary to perform actions such as closing accounts, accessing photo storage, and transferring digital content such as videos or purchased books and movies onto DVDs.

The attorneys at Bach & Jacobs, P.A. make efforts to stay on the cutting edge of new technologies that assist our clients, including the Personal Representatives that we represent.  We recommend all trust and durable power of attorney documents specifically authorize access to digital information.   We can also help you identify your digital assets and ensure that they are fully accounted for in your estate planning documents.

To set up an appointment to review what estate planning method would be best to grant access to your digital assets, call our office at (941) 906-1231.

August 21, 2015
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How can I plan to transfer my digital assets after I die?

By Asset Protection Planning, Estate Planning, Probate

To ensure that your digital assets are protected and dealt with as you desire after death, be sure to compile all usernames and passwords for online subscriptions and accounts in a secure location.  Also, speak with an estate planning attorney about how to ensure your durable power of attorney will have authorization to access assets such as online bill pay, photos, or social media accounts.  You should specify which, if any, of your digital assets you want deleted and, if you have digital assets which earn profits, where you want that money to go and who is able to access and handle it.  An attorney can tell you where your digital asset wishes should be expressed, keeping in mind that wills become public record after death.

Planning for digital assets is a newly emerging issue in estate planning and is complicated by the fact that many accounts on websites such as Facebook and Google have Terms of Service agreements which can be violated by anyone besides the original account holder authorizing someone else to log in.  Attempting to access an account without proper permission can constitute a violation of anti-hacking laws.

The attorneys at Bach & Jacobs, P.A. make efforts to stay on the cutting edge of new technologies that assist our clients, including the Personal Representatives that we represent.  We recommend all trust and durable power of attorney documents specifically authorize access to digital information.   We can also help you identify your digital assets and ensure that they are fully accounted for in your estate planning documents.

To set up an appointment to review what estate planning method would be best to grant access to your digital assets, call our office at (941) 906-1231.

August 18, 2015
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What happens to my digital assets after death?

By Asset Protection Planning, Elder Law, Estate Planning, Probate

Digital assets such as online bill pay accounts, online investment management accounts, personal records, digital movies, books, games, airline rewards points, and photos must be accounted for in modern estate planning to ensure your loved ones can access and control your digital accounts as you wish.  As technology plays a growing role in our everyday lives, some of our assets carry personal value, such as photos and videos, and others, such as online blogs with paid advertisements, may even have monetary value.  In order to ensure that personal accounts, sites, and memories are available to the desired loved ones after death, who you want to be given access to your digital accounts and what type of control they may have over them must be included in your estate planning documents.

At Bach & Jacobs, P.A., we incorporate planning for the transfer of digital assets into our estate and end of life planning for clients.  Call our office today at (941) 906-1231 to set up an appointment to review how to make your digital assets a part of your estate plan and ensure access to these accounts is granted safely and as you desire.

August 14, 2015
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How can I ensure my medical treatment wishes will be honored

By Asset Protection Planning, Elder Law, Estate Planning, Guardianship

An essential part of estate planning is setting up clear instructions for loved ones about your wishes with regard to medical treatment.  It is incorrect to believe that a Last Will & Testament contains information that will empower your loved ones to make decisions in line with your desires in the event that you are incapacitated or unable to communicate.  To provide your loved ones with information about your medical care desires and give them the power to make decisions on your behalf, you must set up advance directives.  It is recommended that you set up a living will, health care surrogate, pre-need guardian, and/or health care proxy to protect your wishes.  These documents should be put into place far before incapacitation occurs and discussed with loved ones so they are clear about your wishes.  If you would like to discuss what documents you should have in place to give instructions about medical treatment, please contact Bach & Jacobs, P.A. at (941) 906-1231.

August 7, 2015
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How can I set up charitable giving to be a part of my estate?

By Estate Planning

We can help you set up a charitable giving plan to ensure you can continue to utilize and increase your money during your lifetime and later provide support to charities of your choice.  Some of the different ways to maximize your charitable giving are outlined below:

  • Charitable Lead Trusts: This type of trust can allow you to give to a charity each year until a designated year or your death. After the trust is terminated, the remaining assets can be distributed as you choose.  This type of trust brings significant benefits such as removing the contained assets from your estate for estate tax purposes and making earnings tax exempt.
  • Charitable Remainder Trusts: These trusts can be set up so that you can continue to increase and spend your assets during your lifetime. A tax deduction is available once money is transferred into this fund and the charity the funds are to be left to can be changed if the designated charity changes status.
  • Donor Advised Fund: These funds can be used to gain tax deductions and specify how you want your money to be spent within an organization through fund advising.
  • A Private Foundation: If you choose to establish a private foundation, you will have a very high degree of control over how your money is spent.  This can also be an opportunity to begin a family legacy of giving in the community.  Significant tax benefits also entail.  This can be useful for high net-worth families and wealthy individuals.

If you would like more information on any of the above charitable giving plans or want advice on what giving option would be of most benefit to you, please contact our Board Certified Tax Lawyer Fred Jacobs, Esq. at (941) 906-1231.

August 4, 2015
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How does a dementia diagnosis affect my ability to do estate planning?

By Elder Law, Estate Planning, Guardianship

Estate planning involves signing legal documents which those who are incapacitated due to a dementia diagnosis often cannot do.  For estate planning documents to be valid, they must be executed by a person with “testamentary capacity.”  This is why proper estate planning before capacity is lost or diminished is critically important in ensuring assets will be passed on to the desired beneficiaries.

However, a diagnosis of dementia does not always entail an immediate loss of legal competency or the right to sign contracts and undertake estate planning.  If a diagnosis of dementia is made and estate planning documents are not already in place, it is important to meet with an estate planning attorney right away to assess the necessary legal capacity or competency and discuss an estate plan before it is too late.

If you need help with estate planning for you or a loved one, contact Bach & Jacobs, P.A. at (941) 906-1231.

July 31, 2015
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Modifying an Irrevocable Trust

By Asset Protection Planning, Elder Law, Estate Planning

Florida’s Trust code allows courts to modify irrevocable trusts which are unambiguous but which have terms that are considered contradictory or wasteful.  Courts can modify trusts if the trust’s purpose no longer exists, if the modification is not inconsistent with the purpose of the trust, or if the current trust is wasteful or impracticable to fulfill under the current terms.

Modifications to irrevocable trusts can be made to preserve the intent of the original trust in changing circumstances.  If you have questions about setting up or modifying trusts, contact one of our experienced estate planning attorneys at (941) 906-1231.  Our firm represents trustees and beneficiaries of trusts and can advise you on your options and rights with regard to the trust.

July 28, 2015
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How can I help my loved one with special needs save for the future without affecting their state and federal benefits eligibility?

By Estate Planning, Government Benefits, Medicaid Planning

A new federal law allows individuals to help their loved one with special needs save for their future without jeopardizing their public benefits.  In December of 2014, the Federal Achieving a Better Life Experience (ABLE) Act passed through Congress.  This legislation allows anyone who became disabled before age 26 to save up to $100,000 (a large increase from the previously allowed $2,000) in a tax free account which will not affect their eligibility for state or federal benefits.  The money in an ABLE account can be used for education, housing, transportation, employment support, personal support services, legal fees, health expenses, funeral expenses, and financial management.  Regulations for these accounts are still in development but accounts should be able to be set up starting around mid-June of 2015.

If you have further questions or need Medicaid planning services for your loved one with special needs, contact Babette Bach, Esq., a Florida Board Certified Elder Law Attorney, at (941) 906-1231.

July 24, 2015
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Medicaid Planning and Qualified Income Trusts

By Elder Law, Estate Planning, Medicaid Planning

Even if your gross income (prior to deduction) is above the minimum required to qualify for Medicaid ($2,199 for 2015), you may be able to become eligible by setting up a Qualified Income Trust with the assistance of an attorney licensed in Florida.  The income you receive in excess of the minimum income requirement for Medicaid eligibility can be transferred into a Qualified Income Trust account and, as long as you continue to transfer this income every month, you may be able to qualify for Medicaid coverage.  Unlike Medicare, Medicaid can be used to pay for long term care services, such as assisted living facility or skilled nursing facility bills, which can very quickly become extremely costly.

To find out more about becoming eligible to receive Medicaid benefits to cover long term care, contact Board Certified Elder Law Attorney Babette Bach, Esq. at (941) 906-1231.  Babette is experienced in giving Medicaid eligibility advice and navigating the process of applying for and receiving Medicaid benefits while protecting your assets to the highest degree possible.

July 10, 2015
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How can I avoid a Florida probate?

By Elder Law, Estate Planning, Probate

Certain assets by their very nature can avoid probate.  Probate is not necessary to transfer certain jointly owned non-probate assets because these assets pass by operation of law.  In Florida, joint ownership is available through “joint tenancy,” which works well when couples acquire real estate, vehicles, bank accounts, or other valuable property together.  Additionally, “tenancy by the entirety” is available for married couples in Florida.  These provide for a “right of ownership,” transferring the ownership to the surviving joint owner.

Bank accounts can be transferred without going through probate if the account is designated as “payable-on-death.”  Your beneficiary has no right to this asset while you are alive as you still own and control it.

Stocks and bonds can be designated as “transfer-on-death” (also called beneficiary) form.  The beneficiary named will inherit this type of account automatically at your death.  Again, it is important to check this designation as assets change over time as do intended heirs.

Similar to “payable-on-death” and “transfer-on-death” accounts, “Individual Retirement Accounts” (IRAs) are distributed based on beneficiary designations upon the account-holder’s death.  You should consult with a Board Certified Tax Lawyer to learn about the options available for transferring IRAs and the relevant tax implications.

As long as a life insurance policy is payable to an individual or entity other than the policy owner, life insurance policy death benefit proceeds are transferred directly to their beneficiaries.

In Florida, you can make a “revocable living trust” to manage assets during your incapacity and then to avoid probate.  Trusts can be used for all assets you own including real estate, bank accounts, vehicles, IRAs, etc.  A trust document names someone to take over as trustee after your incapacity or death (called a successor trustee) so that they can transfer the property controlled by the terms of the trust to the trust beneficiaries without probate court proceedings after your death.  You may amend or revoke your living trust so long as you have the capacity to do so.

Trusts are always recommended to avoid ancillary probate for out-of-state real and tangible personal property owned.  The standard probate avoidance techniques – revocable trusts, joint with right of survivorship ownership, life estates – will work to avoid ancillary probate as well.  Steps taken with respect to real property should also include related tangible personal property, or probate may be avoided for the real property, but still required for the tangibles.

To consult with Board Certified Tax Attorney Fredric Jacobs, Esq. and an experienced estate planning attorney, contact our office at (941) 906-1231.

July 3, 2015
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