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Estate Planning

Special Needs Trust with Babette and Fred (VIDEO)

By Estate Planning

 

Babette: One of the things that an elder law attorney specializes in is estate planning for a disabled beneficiary. Many of our clients have children or grandchildren who are suffering from various disabilities and receive governmental benefits. If they receive medicaid, they need to do a special needs trust in order for that beneficiary to be able to receive an inheritance and have their governmental benefits protected. We often work on a team approach doing the estate planning for a family that’s very concerned about a disabled beneficiary.
Fred: The special needs trust is a very exacting document. You must draft the document so that the beneficiary, that is, the disabled person, gets all the benefits from the trust that the creator of the trust intended but at the same time, does not get kicked off medicaid or another governmental benefit. The way you accomplish that is to give to the trustee, whether it be a family member or perhaps a trust department of a bank, the complete discretion as to whether or not to distribute income or principle benefits to the disabled beneficiary so long as everything is done in the best interests of the beneficiary.

Real Estate with Fred (VIDEO)

By Estate Planning, Real Estate, Tax Law

 

Fred: We can also handle all aspects of real estate transactions for our clients, including transfers to beneficiaries, and in those cases where clients are purchasing homes in Florida, we can represent them in connection with the purchase, including reviewing the agreements of sales, searching the titles and obtaining title insurance on behalf of our clients, so that they can be assured that they own clear, free and marketable title to any properties down here that they are purchasing.
One of the questions that we’re frequently asked is whether a client should become a resident of the state of Florida. We have many clients who own homes in Florida but also still own homes up north, and the issues is, should they remain a resident of their state or establish residency in Flordia. In our view, their really is no downside to establishing residency in the state of Florida. There is no personal income tax and no inheritance tax. Many states up north still do have an inheritance tax that ranges  from 4% to 15% of the value of the assets that are being passed to children, grandchildren and other beneficiaries. In Florida we have no such tax. If you have a home here and spend at least the majority of your time here, there is no downside to establishing residency in the state of Florida.

Living Trust with Fred (VIDEO)

By Estate Planning

Fred: Many times clients express concern about the costs and delays of going through the probate process. One of the ways to avoid that is to establish what’s called a living trust during your lifetime. A living trust involves a document whereby you create a trust. The creator of the trust is both the trustee and the creator. That person puts substantially all of their assets into the name of the trust. Upon the death of that person, their property passes under the terms of the trust document, and those assets are not subject to probate and can be distributed to the beneficiaries in a relatively short period of time in accordance with the terms of the trust document. There is less time involved, and in some cases less expense in winding up the affairs of the trust as opposed to a probate estate. In the case of a probate estate, at every stage along the process you must get the approval of the court to do such things as making distributions, hiring outside consultations, and things of that sort. The revokable living trust is not a panacea. It does not accomplish all things and in some cases may actually be disadvantageous to a person. I personally feel that the probate process is more protective of beneficiaries, particularly in the case of minor beneficiaries such as young children. I think it’s an advantage to go through the probate process where there are young children who absolutely must be protected if both the mother and father are deceased.