An explanatory letter is a separate document that you attach to your Will. The purpose of an explanatory letter is to explain the wishes set forth in your Will. When you create a Will, it is wise to include only the specific instructions regarding disbursement of your assets, rather than going into great detail explaining why certain assets are being given to certain beneficiaries. An explanatory letter is the place to include the reasoning behind the wishes you expressed in your Will and make any necessary explanations regarding said Will. Things that you can include in your explanatory letter are: explanations about gifts, final thoughts, and instructions for what to do with a pet. An explanatory letter is not at all legally binding, but can help to clarify your intentions if your Will is in any way contested. It also allows you to have a final say on any personal matters, which can help bring peace of mind to your loved ones.
Recently, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 17-11, announcing that FINRA’s new rules addressing the financial exploitation of senior citizens would go into effect as of February 5th, 2018. These new rules, which gained SEC approval, implement two important changes that are designed to help better protect senior investors.
The first change amends an existing Rule (Rule 4512) and requires that firms make “reasonable efforts” to obtain the name and contact information of a trusted person. This means that, when an investor that is 65 or older opens an account, the institution is required to ask them for the name and contact information of an individual that senior trusts with whom the institution may communicate if financial exploitation is suspected. Additionally, the amendment to Rule 4512 states that existing senior customers will be asked this same question when their profile is updated. However, an individual is not required to list a trusted contact person and will not be prohibited from opening or maintaining an account if they refuse to do so.
The second change is the implementation of a new rule, Rule 2165, that allows member firms to place temporary holds on customer accounts when there is a reasonable belief of financial exploitation. This rule states that, if an institution suspects financial exploitation of someone 65 or older (or someone 18 or older that is disabled or considered mentally impaired), it can place a temporary hold of up to 15 business days on the disbursement of funds or securities from the account. This rule only applies to suspicious disbursement of funds or securities, not to securities transactions. Once this temporary hold starts, the institution has two business days to contact the customer as well as their chosen trusted contact person to investigate the matter.
Bach & Jacobs, P.A. employs elder law litigators who assist seniors and their families in combatting financial exploitation of the elderly.
A survey of approximately 1,000 adults, conducted by the Princeton Survey Research Associates International in January of 2017 indicates that only approximately 42% of Americans adults have created Estate Planning documents such as a Wills or Living Trusts. Furthermore, it reports that, out of American adults who have children, only 36% have developed estate plans. While it is understandable that many Americans do not want to think about their deaths and likely put off writing a Will or participating in Estate Planning due to this, it is important to remember that processes such as these can help ensure that your loved ones have financial security after you are gone.
Another reason that individuals many not create Wills is because they do not believe that they have an amount of assets that is substantial enough to have value to anyone. However, regardless of age or economic status, you should create a Will so that your wishes regarding your property and personal belongings are followed. Additionally, making a Will can help bring any individual peace of mind and a sense of certainty.
If you have any inquiries regarding Wills or other Estate Planning documents, please contact our office at: 941-906-1231 to set up an appointment with one of our talented attorneys.
Kiplinger.com has a new quiz that allows an individual to assess their smarts when it comes to Estate Planning, Wills and Trusts. This quiz is multiple choice, consists of ten questions, and will give you your results once you have completed it. Additionally, the quiz will provide you with an answer to each question as well as an explanation of that answer immediately after you submit it. Click the following link to test your knowledge of Estate Planning:
Didn’t score as high as you had hoped or still have questions? The skilled attorneys at Bach & Jacobs have a great deal of experience when it comes to Estate Planning. For assistance regarding these matters, contact our office at (941) 906-1231 to schedule an appointment with one of our attorneys.
Florida law gives individuals the power to contest Wills in the cases of fraud, mental incapacity or undue influence. In Florida, you can challenge a Will within the statute of limitations before the probate is complete. Additionally, if the Will has not yet been submitted to the court, you may challenge it. If the Will has been admitted to probate court and you have been notified of the submission and probate administration, then you have three months to file paperwork challenging the Will. However, if you did not receive the notice, then you may file after more than three months have passed as long as the probate process has not been completed.
You are allowed to file a Will contest in Florida if you have evidence that the will is not representative of the decedent’s wishes. You are also able to contest a Will if you have proof of undue influence, incapacity, or fraud. Incapacity refers to a situation in which an individual did not have the mental capacity to understand the document they were signing, and undue influence refers to a situation in which the decedent was coerced or otherwise pressured into signing the Will.
For assistance regarding these matters, contact our office at 941- 906-1231 to schedule an appointment with one of our attorneys.
A 2017 study supported by the World Health Organization estimates that, over the past year, 15.7% of people age 60 or over have been subject to some form of abuse. As elder abuse is one of the most underreported crimes, this is likely to be an underestimation. This study was published by Lancet Global Health, and it addresses not only the incidence of elder abuse across the world, but also suggests that elder abuse has long-term health effects. This study determined that the highest rate of elder abuse is psychological abuse and noted that this form of abuse can have especially negative health consequences. When a senior citizen’s psychological health is damaged, it can lead to increased risk of nursing home placement, hospital services, use of emergency services and even death. Although all forms of elder abuse can have a negative effect on victims’ health, this study suggests that psychological abuse may be the most internally damaging. It is of paramount importance that awareness is raised regarding the prevalence of elder abuse in our society and that people learn enough information about elder abuse to be able to identify and stop it.
The term “guardian” refers to an individual who is appointed to care for and/or handle the affairs of a person who is deemed incompetent or incapable of administering their own affairs. The 12th Circuit Court has established a Guardianship Monitoring Program, which was created to help make sure that all court-appointed guardians adhere to the law. This is done by ensuring that they provide care to the elderly individuals they have been entrusted with in a manner that most positively benefits said individuals. This program includes, if necessary, guardianship investigations and court appearances. It also appoints a full-time guardianship monitor to make-sure that guardians are fulfilling their obligations in an appropriate, safe and caring manner. As a part of this program, a toll-free guardianship hotline has been implemented to make it easier for individuals to report any concerns regarding guardianship cases that take place in Sarasota County.
The number for the aforementioned hotline is (855)-506-0304, you can call this number if you have any knowledge regarding improprieties in relation to Guardianship cases that take place in Sarasota County.
In Florida, selling jointly owned stock is different than selling another jointly owned asset.
If you and your spouse owned the stock jointly and with the right of survivorship, then when your spouse passes away you automatically become the sole owner of said stock. This means that you are free to do whatever you want with it, whether you would prefer to keep, sell or trade it. As far as taxes are concerned, half of the investment’s tax basis is increased when the first spouse passes away. This means that, if you choose to sell the stock, the capital gains or losses on your half of the investment will be based on what the stock was valued at when you first purchased it. Your spouse’s half, however, will be based on the value of the stock at the time that he or she passed.
If you have created a living trust, you may have appointed yourself as trustee so that you can be in charge of the assets titled to the trust while you are alive. However, you must also decide who to name as your successor trustee. A successor trustee is the individual who will take over the trustee position when you pass away, and who will be in charge of your trust’s assets. It is very important to carefully consider who you want as your successor trustee. Most people choose a family member or close-friend because they are confident that this person will carry out their duties honestly, impartially and in a manner that is consistent with the terms of the trust. However, make sure that whoever you choose is up to the task given the responsibility involved. Pick an individual who will be relentlessly scrupulous and who has you as well as your family’s best interest at heart. Your successor trustee will also be in charge of managing and distributing your assets should you become incapacitated.
If you are uncomfortable choosing a friend or family member to be your successor trustee, consider designating the task to a knowledgeable, respected corporate trustee or a legal professional that you trust fully. For inquiries regarding this matter, please contact our office at: 941-906-1231.
December 1-2, 2017
Babette Bach will be attending and, this year, speaking at the The Academy of Florida Elder Law Attorneys UnProgram in December at the Hyatt Regency in Orlando. She is looking forward to lecturing there on Saturday, December 2nd, 2017 on the subject of “Advanced Medicaid Planning & Techniques”. Please contact AFELA at 850-296-8089 or www.afela.org for further information on this event. Please contact our office on 941-906-1231 if you would like to schedule a consultation with Babette for advice on Medicaid and Asset Protection Planning.
