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Tag: estate-taxes

  • What is a form of asset ownership called Joint Tenancy with Rights of Survivorship?

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    Joint ownership with the right of survivorship is a method of holding ownership to your property, in the state of Florida. When one of the property owners dies, and the ownership was held as joint owners with the right of survivorship, the other owner automatically inherits whatever ownership interest the joint owner had. It is…

  • What distinguishes a Living Will from a Last Will and Testament?

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    Why should I create a Last Will and Testament? The primary benefit of creating a Last Will and Testament is that you have the power to determine who will inherit your assets after your death. If you pass away without a Will, the state’s laws will dictate who receives your property. By creating a Will,…

  • Why is it important to establish an estate plan?

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    Why is it essential to create an estate plan? Regrettably, many families neglect the importance of proper estate planning due to the misconception that their assets are insignificant or that their children can independently distribute them. If one fails to establish legal arrangements for asset management and affairs after their incapacity or demise, the intestacy…

  • What is the unrestricted marriage deduction?

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    The federal government permits every married individual to transfer an unrestricted amount of assets either as a gift or inheritance, to his or her partner without incurring any federal gift or estate taxes. Essentially, the unrestricted marriage deduction enables married couples to postpone estate tax payment upon the demise of the first spouse, as upon…

  • What tax advantage do I receive from owning real estate?

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    Mortgage interest deduction: The main benefit of owning real estate comes from the ability to deduct the interest on a home mortgage or a home equity loan. To be eligible for this income tax deduction, the loan must be for your primary residence or a vacation home that is not rented out to others. The…

  • What is the significance of estate planning and why is it crucial?

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    What does the term estate planning mean? Estate Planning is a procedure of preparing for the unexpected in life. Without even realizing it, you have likely engaged in the Estate Planning process most of your adult life ? for example, obtaining a life insurance policy, naming beneficiaries on your retirement plan, or when you are…

  • What is a Revocable or Living Trust?

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    A Revocable Trust can be used to hold legal title to your assets and provide a mechanism to manage them. You (and/or your partner) are the trustee(s) and beneficiaries of your trust during your lifetime. You also designate successor trustees to carry out your instructions as you have provided in case of death or incapacity.…

  • What is a Credit Shelter or A/B Trust and how does it work?

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    A Credit Shelter Trust, also referred to as a Bypass or A/B Trust is utilized to reduce or eliminate federal estate taxes and is commonly employed by a married couple with a sizable estate surpassing the federal estate tax exemption amount. For instance, in 2023, each individual is entitled to an exemption of estate tax…

  • What is an Irrevocable Life Insurance Trust and how does it function?

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    There is a widespread misconception that life insurance funds are exempt from estate tax. While the funds received by your loved ones are not subject to income taxes, they are considered part of your taxable estate. As a consequence, your loved ones may lose over forty percent of the funds’ value to federal estate taxes.…

  • “Is Your Business Ready to be Sold?”

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    1. Contracts should be reviewed and updated to ensure they are conducive to a potential sale, including provisions for assignment, non-compete agreements, and customer contracts. 2. Financial records should be maintained in an organized and accurate manner, including P&L statements, balance sheets, tax returns, compliance with GAAP, detailed budgets, and knowledge of key financial metrics…

  • How to Become a Personal Representative in Florida

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    1. The personal representative of a probate estate in Florida must be at least 18 years old, have no felony convictions, and meet other eligibility requirements outlined in Section 733.303 of the Florida Probate Code. 2. To become a personal representative, one must file a petition for administration with the probate court, including their name,…

  • 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…

  • “Looking to Sell Your Commercial Property? Consider a Sale-Leaseback!”

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    – A sale-leaseback transaction allows the seller to raise cash from the property while continuing to operate it as the buyer’s tenant. – Sellers with significant equity in the property can use the cash from the sale for current operations, expansion, or alternative investments. – The sale can be cheaper than refinancing, and can improve…

  • “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…

  • 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…

  • 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…

  • Florida Real Estate Market Report 2023: A Guide for High School Students

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    1. People who exercise regularly have better mental health. 2. Consuming too much sugar can negatively impact cognitive function. 3. Regular meditation improves sleep quality. 4. Drinking coffee can provide a short-term boost in cognitive function. 5. Exposure to nature can reduce stress levels. – Increased vacant land development transactions in central Florida, particularly in…