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Estate Planning

Why would someone convey property using a lady bird deed?

By Elder Law, Estate Planning, Real Estate

Question:    Why would someone convey property using a lady bird deed?

Answer:    There are multiple advantages of using a Lady Bird deed.  First, the transfer of the real property occurs pursuant to the remainder provision in the deed and will not require probate to effectuate the transfer.  Second, the owner/life tenant can maintain the homestead tax exemption.  Third, it gives the owner/life tenant greater control than with a typical life-estate deed.  The remainderman can be changed and a future conveyance or mortgage would not require the remainderman’s cooperation or approval.  Fourth, there are various tax advantages.  The remainderman receives the property at the life tenant’s death with a ‘stepped up basis’ for federal income tax purposes.  The Florida Department of Revenue does not levy documentary stamp taxes against Lady Bird deed transfers.  Finally, a Lady Bird deed can be useful in planning for Medicaid eligibility for an unmarried applicant because the creation of the deed is not considered to be a transfer of assets by the state.  Contact Board Certified Elder Lawyer Babette B. Bach, Esq. to find out if a Lady Bird deed would be appropriate for transferring interests in real property you own.

December 30, 2014
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What is a ‘Lady Bird Deed’?

By Elder Law, Estate Planning, Real Estate

Question:    What is a ‘Lady Bird Deed’?  

Answer:    A Lady Bird deed, or “enhanced life estate deed,” is a method for transferring an interest in real estate.  With a Lady Bird deed, the owner of a property reserves a life estate in the property, entitling the grantor the right to live on the real property for the rest of his or her life.  The deed also identifies a ‘remainderman’, who, at the grantor’s death, receives title to the real property.  What makes Lady Bird deeds unique is that the grantor/owner/life tenant also reserves the right to encumber the property, keep all income from the property, and sell the property without the approval of the remainderman.  In short, the remainderman only get what’s left on the date of death of the property owner/life tenant.  This deed is designed to leave the owner with all the powers of a solely-owned parcel but with an automatic conveyance of whatever is left upon the owner’s death to the remainderman.  It can be a useful tool.

December 23, 2014
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When to Obtain an EIN for a Trust

By Elder Law, Estate Planning, Tax Law

Question:  I have just taken over my parent’s trust as the successor trustee.  Do I need to apply for an EIN for the trust?

Answer:  It depends on whether the trust has become irrevocable.  If you become successor trustee of a revocable trust prior to the death of the grantor, then you will not need to obtain an employer identification number (“EIN”).  The grantor will continue to report all of the income and expenses of the trust on his or her individual tax return using their own Social Security number.  However, you should know that once the grantor dies, the trust becomes irrevocable.  Once the trust becomes irrevocable, the trust becomes a separate tax-paying entity.  You will need to complete the application for an EIN as soon as possible so you can properly report all post-death transactions under the trust’s EIN.  If you are the trustee of a revocable or irrevocable trust, contact Bach & Jacobs, P.A at (941) 906-1231 for guidance on the proper administration of the trust.   Attorney Fred Jacobs is a Board Certified Tax Lawyer and can advise you on the legal requirements that trustees must comply with under the Florida Trust Code and the Internal Revenue Code.

November 24, 2014
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Do I Need an EIN for my Revocable Living Trust?

By Elder Law, Estate Planning, Tax Law

Q:           Do I need an EIN for my revocable living trust?

A:            No.  If you created a trust, funded it with your money, and reserved the right to revoke it, then the IRS does not consider it a separate tax-paying entity. The the trust will not require its own taxpayer identification number or employer identification number (referred to as an “EIN”).  In fact, you cannot obtain an EIN for a trust that is revocable.  Such a trust does not file its own tax return.  If you would like to know if a trust would be appropriate for your estate plan or tax planning, contact Bach & Jacobs, P.A. at (941) 906-1231.  Attorney Fred Jacobs is a Board Certified Tax Lawyer and can advise you on the use of trusts in your planning.

November 18, 2014
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Babette B. Bach, Esq. to Lecture about Estate Planning for Parents of Children with Special Needs

By Estate Planning, Firm News, Government Benefits

Attorney Babette B. Bach will give a presentation on estate planning for parents of children with special needs on October 14, 2014 at the Lakewood Ranch YMCA.  Topics will include planning for a child with special needs with a particular emphasis on special needs trusts.

If you have a child with special needs and would like legal advice on how to properly plan for your child in your estate planning, please contact Bach & Jacobs, P.A. at (941) 906-1231 for an initial consultation.

October 14, 2014
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Ever Wonder What Happens to a Deceased Person’s Online Accounts After They Pass Away?

By Estate Planning, Probate

Ever wonder what happens to a deceased person’s online accounts after they pass away?

With so many people going ‘paperless’ and communicating online, the Personal Representative of a probate estate may have trouble identifying online accounts and obtaining the digital content in those accounts.  The state of Delaware recently passed a law that gives estate attorneys, executors and other fiduciaries more access to those online accounts after a person passes.  The Wall Street Journal says the Delaware law “could set a national trend” as policy makers “wrestle with how to handle the digital remains people leave behind.”  Florida may become one of the next states with similar legislation—a committee of the Florida Bar has been formed to propose such legislation.

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 this information.   We can also help you identify your digital assets and ensure that they are fully accounted for in your estate planning documents.

You can read the Wall Street Journal article here: http://blogs.wsj.com/law/2014/08/20/new-law-expands-access-to-google-facebook-accounts-of-deceased/

August 29, 2014
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Impact of the Supreme Court’s Windsor Decision on ACL

By Elder Law, Long-Term Care

Question: What is the impact of the Supreme Court’s Windsor decision regarding same sex marriage on people participating in programs administered by the Administration for Community Living?

Answer: We are pleased to report that in May 2014, the Administration for Community Living (ACL), a federal agency within the Department of Health and Human Services, issued guidance applicable to all ACL grantees concerning the federal government’s policy on same-sex marriages. ACL will now to treat same-sex marriages the same as opposite sex marriages to the “extent reasonably possible.” Important to note is that ACL will recognize a legal marriage, regardless of whether the individuals are domiciled or reside in a state or territory that does not recognize the marriage. This was motivated by the Supreme Court Decision in United States v. Windsor. The ACL’s full Windsor-related guidance is available at: http://www.acl.gov/Funding_Opportunities/Grantee_Info/docs/Community_Living_Guidance.pdf

June 24, 2014
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Babette Bach, Esq. named a winner in Florida Super Lawyers list

By Firm News

The awards keep pouring in!  For the 5th year in a row, Babette B. Bach, Esq. has been selected for the 2014 Florida Super Lawyers list.  Only 5% of Florida attorneys are chosen each year to receive this honor.  The 2014 Florida Super Lawyers & Rising Starts will be published in July.

Babette B. Bach, EsquireBach-Babette-B 0cdb4da1-a148-4aa4-af79-58499ab0ce6d
Bach & Jacobs, P.A.
240 S. Pineapple Avenue, Suite 700
Sarasota, FL 34236
941-906-1231
941-954-1185 facsimile

 

 

June 17, 2014
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Impact of Divorce on Probate of a Will in Florida

By Estate Planning, Probate

Question:  My father died shortly after he and my stepmother got divorced. I don’t think he updated his will after the divorce.  If his ex-wife was in the last will, does that mean she’ll inherit even after she got a divorce settlement?

Answer:    Unless the will or judgment expressly provides otherwise, if your father’s will provided for his then-wife, but they later got divorced, then those provisions benefiting the now ex-wife are void under Florida law.  In fact, the Florida Probate Code construes such a will as if the former spouse had died before the deceased spouse as of the date of the dissolution, divorce, or annulment of the marriage.  If your father designated your step-mother as his personal representative of his estate, you should look to the will to see if he appointed a successor personal representative.  If he didn’t, you may be able to petition the court to be appointed personal representative.  If someone you love has recently passed, contact Bach & Jacobs and schedule an appointment with one of our attorneys who can guide you through the probate process.

May 21, 2014
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