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Elder Law

When an Out-of-State Resident Dies Owning Florida Real Estate

By Elder Law, Estate Planning, Probate, Real Estate

Question:     What happens when someone dies owning real estate or other assets in Florida, but is a resident of another state?

Answer:    If a deceased person was a resident of a state other than Florida, the estate will be administered in the county and state of residence.  However, even if the decedent’s estate is administered by the probate court of the state of residency, assets located in Florida, especially real estate, may have to be administered by Florida’s probate courts.  This is called “ancillary administration” and requires that the Florida court issue letters of administration to a personal representative qualified to act under Florida law.  If you are the personal representative for a non-Florida resident and need assistance with opening an ancillary administration in Florida for the estate, call Bach & Jacobs to speak to an attorney.

September 19, 2013
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Supreme Court DOMA Decision Affects Estate Planning for Same Sex Spouses

By Elder Law, Estate Planning, Tax Law

The Supreme Court of the United States’ ruling that a portion of the Defense of Marriage Act (“DOMA”) is unconstitutional may allow same sex spouses who were legally married under state law at the time they filed individual Federal income tax returns to amend past tax returns and receive a refund.  The DOMA ruling’s implications will also affect the gift and estate tax marital deduction, portability of a spouse’s estate and gift tax credit, retirement benefits, and the future tax filing status for same sex spouses.  Many tax experts believe that the Court’s ruling has retroactive effects.  This means that same sex spouses may be able to amend previous tax returns to claim refunds for prior tax years if the taxpayers can show that they would have paid less if the marriage had been recognized by the IRS.  Same sex couples can contact tax expert Fred Jacobs at Bach & Jacobs to review the effect that the Supreme Court’s decision may have on their federal taxes.

September 5, 2013
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What is the Effect of Prior Gifts on Inheritances?

By Elder Law, Estate Planning, Tax Law

Question: My widowed father recently died and his will directed that his estate should be split between my brother and me.  My brother is well off, where I have struggled financially.  To help me out over the last few years my dad gave me his car and several cash gifts.  Will those prior gifts be counted against my inheritance or will my brother and I still split the existing assets dad had at his death?

Answer: Whether those prior or “inter vivos” gifts will be counted against your inheritance depends on whether your father made a written declaration contemporaneous with the gifts that they were “advancements” against your inheritance.   If he did, or if you acknowledged in writing that they were indeed advancements to be counted against your inheritance, then the value of the car and cash at the time you received it could be used to reduce your inheritance after your father’s death.  Otherwise, these lifetime gifts are ignored and the assets remaining in your father’s estate are split equally upon his death.  To avoid confusion, it is best if your father had documented these gifts in writing.  Any lifetime gifts to an individual totaling greater than $14,000 in a calendar year should be reflected on your father’s tax returns.  The team at Bach & Jacobs assists families in administering estates after the passing of a loved one.  Contact Bach & Jacobs at (941) 906-1231 if you need assistance with probate administration.

August 29, 2013
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What Happens if You Pass Away Without a Will or Trust?

By Elder Law, Estate Planning, Probate

Assets pass to the family members the state presumes to be the intended heir. If you pass away with a spouse and children surviving you, 100% of your estate would go to your spouse. If you pass away with a spouse and children from a previous relationship(s), 50% of your estate will go to your spouse and 50% of your estate would be divided among your children.

If you need legal advice for estate planning, Asset Protection Planning, or tax planning, please contact our office at (941) 906-1231 for an initial consultation.

August 21, 2013
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What Determines a Disabled Adult Child and What Social Security Benefits Can They Receive?

By Government Benefits

Disabled Adult Child (DAC) is an adult child who has a disability that began before they became 22 years old.

 What is the social security benefit for a Disabled Adult Child when a parent retires?

The benefit is based on 50% of parent’s retirement benefit.

Example: If the parent’s retirement benefit is $1500, the disabled adult child would be eligible for $750.

 If the child is currently receiving income at the current SSI rate of $710 and he/she is eligible for $750, SSI goes away and the child receives the higher amount.

If the child’s eligibility is less than the current SSI rate of $710, a calculation of SSI and retirement benefits would take place.

For example: Parent’s retirement benefit is $1400, the disabled adult child is eligible for $700. The child would receive $30 in SSI benefits and the remaining $680 would be paid from the retirement benefits.

 What social security benefits does a Disabled Adult Child receive when a parent dies?

The benefit is based on 75% of parent’s retirement benefit.

Example: If the parent’s retirement benefit was $1500, the disabled adult child would be eligible for $1125.

What happens when the remaining parent of Disabled Adult Child retires or dies?

 If the surviving parent had a higher earnings record, they should contact Social Security Administration to apply to switch over for the higher benefits.

 If you need legal advice for estate planning, probate and trust administration, Medicaid planning, or VA benefits, please contact our office at (941) 906-1231 for an initial consultation.

August 21, 2013
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What Happens If Someone Dies Without A Will in Florida?

By Elder Law, Estate Planning, Probate

Question: What happens when someone dies without a will in Florida?

Answer: When someone dies ‘intestate’ (without a will), the State of Florida has an established protocol and priority that sets forth how a decedent’s assets are distributed.  With an intestate estate, the decedent’s spouse typically receives half or all of the decedent’s estate.  The amount the spouse receives depends on other family dynamics, such as whether the decedent or the surviving spouse has children from a prior spouse.

If your spouse or parent has recently died without leaving a will, Bach & Jacobs can help guide you through the process of distributing your loved one’s assets.  If you need legal advice for estate planning or would like a review of your existing legal documents, including a prior will, please contact our office at (941) 906-1231 for an initial consultation.

August 11, 2013
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Is My Out of State Power of Attorney Valid In Florida?

By Elder Law, Estate Planning

Question: My parent executed a power of attorney document in another state that appoints me the attorney in fact.  As a Florida resident, can I use the out-of-state power of attorney document to handle my parent’s financial matters in Florida?

Answer: Yes, under Florida law a power of attorney executed in another state is valid in Florida so long as the execution met the requirements of either (a) the state of Florida or (b) the state where the document was executed at the time.  A third party, such as a bank or other financial institution, may require an opinion of counsel regarding the validity of the power of attorney if the out-of-state document does not meet Florida’s requirements.  If you have an out of state power of attorney document and are unsure of its validity, call Bach & Jacobs. We can have it reviewed so you can be sure the document meets the requirements of either Florida or the state where it was executed.

If you need legal advice for estate planning or would like a review of your existing legal documents, such as a power of attorney, please contact our office at (941) 906-1231 for an initial consultation.

August 11, 2013
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Sarasota is Part of Medicaid Experiment

By Long-Term Care, Medicaid Planning

Thousands of caregivers in Sarasota and Charlotte counties are receiving letters this month from the state, telling them they have 30 days to enroll their loved ones in Florida’s new Medicaid Long-term Care program.

The two counties are part of a sweeping experiment in managed long-term care that begins here on Sept. 1, affecting 5,596 Medicaid recipients in a seven-county area.

The goal: To cut Medicaid costs by gradually diverting more frail Floridians from nursing homes or assisted-living facilities and into home care.

To achieve this, private contractors will take over the state’s work of supervising cases and paying providers.

For the first year, contractors’ bonuses are linked to a modest 2 percent reduction in their share of the nursing home population, who receive 24-hour highly skilled care. The expectation is that these companies can move more Medicaid patients over time to less costly assisted-living facilities — or even back to their own homes, the cheapest option.

Click here to read the whole Herald Tribune article.

July 9, 2013
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Attorney Sean Byrne to Join Bach & Jacobs Sarasota, FL

By Firm News

Bach & Jacobs, P.A. is pleased to announce that Sean M. Byrne will be joining the firm this summer.

Mr. Byrne’s practice focuses on trust & estate planning, probate, guardianship, and elder law litigation. Mr. Byrne begins with Bach & Jacobs on July 22. Prior to joining Bach & Jacobs, Sean was the in-house counsel for the Conservation Foundation of the Gulf Coast where he provided options to landowners, high net worth individuals, and their financial advisors seeking to reduce federal income taxes and local property taxes through land conservation and philanthropy. Sean will continue to represent parties to real estate transactions involving environmentally sensitive lands.

Mr. Byrne is a member of the Florida Bar, the American Bar Association, the Southwest Florida Estate Planning Counsel, the Sarasota County Bar Association and the Young Lawyers Division. He is a graduate of Leadership Sarasota County and is the founder of the nationwide Next Generation Conservation Attorneys network, currently sponsored by the national Land Trust Alliance.

“Sean combines a sharp legal mind and a diligent work ethic with his genuine concern for senior citizens and their families. He will be an outstanding addition to our strong team of professionals who put our clients’ interests at the heart of everything we do,” said Babette B. Bach, founder of Bach & Jacobs and a Board certified attorney by both the Florida Bar and the National Academy of Elder Law Attorneys (CELA).

Bach & Jacobs practices estate planning, probate, guardianships, tax and business law, Medicaid, VA benefits and land conservation transactions.

Sean M. Byrne can be reached at (941) 906-1231 or at [email protected].

June 3, 2013
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Can an Adult Child Deduct the Medical Expenses Paid on Behalf of their Parent on their 2012 Tax Returns?

By Tax Law

Yes, a child can deduct medical expenses they paid on behalf of their parent (even if the parent doesn’t qualify as one of their dependents, doesn’t live with them and has a gross income that exceeds $3,800 for tax year 2012) if the child provided over half of the parent’s total support during the tax year. Assuming that the child paid more than 50% of their parent’s total support during this tax year, then the medical expenses paid on the parent’s behalf in excess of 7.5% of the child’s Adjusted Gross Income (AGI) are deductible on the child’s individual income tax returns as itemized deductions.

If you need legal advice for estate planning, Asset Protection Planning, or tax planning, please contact our office at (941) 906-1231 for an initial consultation.

April 10, 2013
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