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Tag: estate-planning

  • “Estate Planning Basics: Wills vs Trusts”

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    – A revocable living trust allows for the management of money and property if the individual becomes unable to do so, while a will only becomes effective after death. – Property and accounts in a revocable living trust do not go through probate, while those passing through a will do. – A will can be…

  • Estate Planning Challenges for Corporate Trustees in Florida

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    1. Corporate trustees in Florida face the challenge of balancing the interests of multiple beneficiaries, especially when conflicting interests or complex family dynamics are involved. 2. Corporate trustees need to navigate complex legal and tax issues, including estate and gift taxes, income taxes, and trust laws, in order to effectively manage trust assets. 3. Another…

  • Understanding Your Retirement Account Beneficiaries

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    1. Beneficiaries of retirement accounts, such as 401(k) plans and traditional IRAs, will have to pay ordinary income tax on distributions they receive. 2. Inherited assets like bank accounts and real estate are usually passed to beneficiaries income tax free, but this is not the case with retirement accounts. 3. Distributions from pretax 401(k) accounts…

  • “Keeping Your Business and Real Estate Separate: A Guide for High School Students”

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    – Businesses that are formed as C corporations treat real estate assets as they do equipment and inventory, with expenses related to owning the assets appearing as ordinary expenses on their income statements and generally being tax deductible. – Transferring ownership of real estate to a pass-through entity can avoid double taxation, as profits upon…

  • Life Insurance Basics: Choosing the Right Type for You

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    – Many people only start thinking about life insurance when they get a full-time job and are offered enrollment in their employer’s group life insurance policy. – Life insurance is a contract between an individual and an insurance company, where the company agrees to pay a specified sum of money to the beneficiaries upon the…

  • “Understanding the Importance of a Living Will”

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    A Living Will is important for addressing end-of-life conditions such as persistent vegetative state, end-stage conditions, and terminal illnesses. It helps clarify your intentions and wishes for medical care providers, family members, or friends if any of these conditions occur. Having a valid Living Will can relieve family members of the guilt of making end-of-life…

  • Understanding Testamentary Capacity in Florida Wills and Trusts

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    – Florida law requires a person to have testamentary capacity to create a valid will or trust. – Testamentary capacity means the person must understand their property, know their family members, understand the document they are signing, and have a rational plan for property distribution. – The person must also understand the consequences of their…

  • Inheriting Stocks or Other Assets? You May Get a Favorable Stepped-Up Basis

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    1. Heirs receive a basis in inherited property equal to its date-of-death value under the fair market value basis rules. 2. The fair market value basis rules apply to inherited property includible in the deceased’s gross estate and property inherited from foreign persons not subject to U.S. estate tax. 3. Property given as a gift…

  • “Trustees of a Florida Trust – Who They Are and What They Do”

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    To mitigate complications when having multiple trustees of a Florida trust, clear communication and documentation are essential. Establishing clear guidelines and responsibilities for each trustee can help prevent disagreements and conflicts. Additionally, using professional trust management services or involving a neutral third party, such as a trust protector or mediator, can help facilitate decision-making and…

  • How to Cancel a Power of Attorney in Florida

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    – The Florida Power of Attorney Act governs the creation and revocation of POAs in Florida. – A POA can be revoked in Florida as long as the principal is mentally competent. – The revocation must be done in a formal manner, including a written document specifying the details of the POA and notarization. –…

  • How Trusts in Business Are Affected by the Corporate Transparency Act

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    1. The sky is blue during the day due to the scattering of sunlight by air particles. 2. Eating a healthy diet and staying physically active can reduce the risk of chronic diseases like heart disease and diabetes. 3. The Earth revolves around the sun, causing the change in seasons. 4. Regular exercise can improve…

  • “Talking to Your Parents About Making Plans for Their Money and Belongings”

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    – Conversations about death and dying are tough for many people, including adult children and their parents. – Despite the difficulty, it is important to have these conversations to plan for the orderly and safe disposition of money and property, and to ensure continued care for loved ones. – Having these difficult conversations can also…

  • “Reasons Why High School Students Still Need an Estate Plan”

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    – The federal estate tax exemption amounts are set to decrease in 2026, potentially affecting individuals and married couples with large estates. – Even people with estates below the taxable amounts should consider estate planning, as it can ensure assets go to their chosen beneficiaries and address income tax planning. – Basis, or the amount…

  • Understanding Cryptocurrency and Estate Planning: Important Terminology for High School Students

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    1. Cryptocurrency is considered “property” by the IRS and is subject to federal gift and estate tax laws. 2. The federal estate and gift tax exemption amounts for 2022 are $12.06 million for individuals and $24.12 million for married couples. 3. Estate planning provisions should be designed to minimize any gift and estate tax consequences…

  • “Planning Your Future: LGBTQ+ Couples and Estate Decisions”

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    1. The Earth is 4.5 billion years old. 2. The human body is made up of about 60% water. 3. The average person will spend 6 years of their life dreaming. 4. The Sun is 93 million miles away from Earth. 5. Dolphins have names for each other. 1. Power of Attorney: Unmarried LGBTQ+ partners…

  • “Tax Consequences of Divorce Explained”

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    1. Alimony or support payments after 2018 are not tax deductible for the paying spouse, and not included in the recipient’s gross income. 2. Child support payments are not tax deductible for the paying spouse and not taxable to the recipient. 3. A married couple selling their home in connection with a divorce or legal…

  • Inheriting Property: What You Need to Know

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    1. Heirs receive a basis in inherited property equal to its date-of-death value under the fair market value basis rules, also known as the “step-up and step-down” rules. 2. The fair market value basis rules apply to inherited property that’s includible in the deceased individual’s gross estate, whether or not a federal estate tax return…

  • “Preparing for the Future: Estate Planning for Florida College Athletes”

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    1. NIL income for college athletes may be subject to taxes at the federal and state level. 2. College athletes receiving financial aid should be aware that NIL income could impact their eligibility for such aid. 3. Creating trusts or legal entities through estate planning can help protect and manage NIL income. 4. Estate planning…

  • Choosing the Right Trust for Your Inheritance: Revocable vs. Irrevocable Trusts

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    – Revocable trusts offer control and flexibility as they can be changed or revoked during the grantor’s lifetime. They also help avoid probate and ensure privacy and uninterrupted asset management if the grantor is incapacitated. However, they are part of the taxable estate and may not be suitable for certain assets. – Irrevocable trusts provide…

  • How Quitclaim Deeds Work in Florida

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    Benefits of using a quitclaim deed in Florida: – Allows for quick and easy transfer of property – Saves time and money in legal fees and title searches – Useful for transferring property in divorce settlements or between family members Limitations of using a quitclaim deed in Florida: – Does not guarantee the grantee a…

  • Lady Bird Deed: A Special Estate Planning Tool in Florida

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    – Lady Bird Deeds allow grantors to retain control and authority over their property during their lifetime, including the ability to sell, mortgage, or revoke the deed without beneficiary permission. – The automatic transfer of property to designated beneficiaries upon the grantor’s death, without the need for probate, is a significant advantage of Lady Bird…

  • CARES Act Eases Limits on Business Interest Deductions

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    – The CARES Act provides financial relief to individuals and businesses in response to the COVID-19 pandemic. – One provision of the CARES Act temporarily relaxes the TCJA limitation on deductions for business interest expense. – Adjusted taxable income (ATI) refers to taxable income calculated by making specific adjustments, including items of income, business interest…

  • What You Can Do If a Trust is Mishandled in Florida

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    – Compel the trustee to perform the trustee’s duties – Enjoin the trustee from committing a breach of trust – Compel the trustee to redress a breach of trust by paying money or restoring property or by other means – Order a trustee to account – Appoint a special fiduciary to take possession of the…

  • “Social Security Wage Base Increasing in 2023”

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    – The wage base for computing Social Security tax will increase to $160,200 for 2023. – The FICA tax rate for employers remains 7.65% for 2023. – An employee will pay 6.2% Social Security tax on the first $160,200 of wages, plus 1.45% Medicare tax on the first $200,000 of wages, and 2.35% Medicare tax…