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Trusts

Special Needs Trust Fairness Act

By Asset Protection Planning, Government Benefits

Yesterday a historic bill was signed into law by President Obama.  It allocates over $1 billion to fund Alzheimer’s research to find a cause and a cure, and methods of prevention.  Since so many of our elderly we serve and their families are devastated by this terrible disease, we have been given hope that the necessary amount of attention has been given by this bipartisan legislation to address this issue which left unchecked, could overwhelm our institutional care programs and service delivery infrastructure.

In addition it immediately gives a disabled individual, who is legally competent, the right to establish their own self- funded d4A Special Needs Trust.  This is a trust which exempts assets from being considered by Medicaid.  However all self- settled special needs trust are subject to a Medicaid payback on the death of the beneficiary.  This will end the foolish waste of time getting an elderly parent or a court to establish an individual SNT for a person who could do so himself or herself, but for the mistake made in the original OBRA ’93 act that left out the word “individual.”

If you have further questions on this topic please contact our office at (941) 906-1231 to schedule an appointment with one of our attorneys.

December 14, 2016
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How can I ensure my pet is taken care of after my death?

By Elder Law, Estate Planning, Probate

Florida statutes allow for the creation of pet trusts which can be used to designate who will take care of your pet and leave funds necessary to do so.  The trust would appoint a care-taker and a trustee who would observe the care-taker to make sure they are following your instructions and caring for your pet as you specify.  A trust protector can also be appointed to ensure the funds in the pet trust are being spent appropriately by the care-taker.  The care-taker can be given specific instructions through the trust on how they should care for the pet on a day to day basis and how they should respond to unexpected illness of the pet.

Under Internal Revenue Code, the income of a pet trust is taxable.  The trust would be active during the entire lifespan of your pet and after the death of your pet any remaining funds would be distributed to other beneficiaries as you specify.  If you have further questions or would like to set up a pet trust, contact us at (941) 906-1231 to discuss the use of a pet trust as part of your estate planning.

February 12, 2016
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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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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.

 

August 31, 2010
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