Tag: personal-representative
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Time Waits for No One: The Death of a Litigant
When someone involved in a lawsuit dies, their lawyer and the other side’s lawyer have to deal with a lot of issues. If they don’t handle the situation quickly, they could end up in trouble. If someone involved in a lawsuit dies, the court needs to be informed, and the party’s representative or the other…
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The Complaint for a Pure Bill of Discovery: A Living, Breathing, Modern Day Dinosaur?
A pure bill of discovery is an old legal remedy that asks the court to make the other party share information or documents. It’s not used much anymore because modern rules of procedure cover most types of discovery. But sometimes it’s still necessary to use a pure bill of discovery to get the information needed…
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TRA 97 Is Not the Only Reason to Review Existing Estate Plans Involving Closely Held Stock
The Taxpayer Relief Act of 1997 provided a tax benefit for family-owned businesses, allowing an exclusion from a person’s taxable estate. This is important to consider when making estate plans involving closely held stock. There have been significant cases and IRS rulings that affect estate planning for closely held stock. In a hypothetical scenario, a…
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A Potpourri of Potential Pitfalls To Avoid with Qualified Domestic Trusts
In Florida, when one or both spouses are not U.S. citizens, special planning is needed for their estate. If the surviving spouse is not a U.S. citizen, they cannot receive a marital deduction for estate tax unless the property is held in a Qualified Domestic Trust (QDOT). This rule was created to prevent noncitizen spouses…
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Generation-Skipping Transfer Tax: Its Bite Is Worse Than its Bark
Chapter 13 of the tax code has really complicated rules about the generation-skipping transfer (GST) tax. It’s a big deal because it can cause huge tax problems for families and their advisors. The GST tax rate is 55 percent and it applies to transfers of property from one generation to a generation two or more…
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Fiduciary Allocations of the Generation-skipping Transfer Tax Exemption
“Summary: A law firm is helping a company with a legal case involving a defamatory article. The company’s reputation and business are at stake, so the law firm is working hard to win the case for them.” The generation-skipping transfer tax exemption allows individuals to transfer assets to their grandchildren without paying extra taxes. If…
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The Ins and Outs of the Florida Estate Tax
The Florida estate tax is connected to the federal estate tax, so if no federal estate tax is owed, then no Florida estate tax is owed. The tax law in 2001 changed the responsibilities of personal representatives of estates under federal and Florida law. A resident who passes away in Florida is subject to the…
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Things That May Surprise You About Florida’s Principal and Income Act and Related Accounting Law, Part I
Mom’s will gives Son a piece of rental real estate and gives the rest of the estate to Daughter. The will doesn’t say who gets the money from the rental property or who pays for its expenses. After Mom dies, the estate gets $12,000 in rent and pays $2,000 in property taxes. It also has…
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Section 2053 Final Regulations: Continued Uncertainty?
The Treasury Department issued new regulations for deducting expenses and debts when someone dies. The rules say that you can only deduct these expenses if they have been actually paid. If you owe money to someone, you have to pay it before filing the tax return. There are a few exceptions to this rule, like…
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The Florida Estate Tax: Updated
The 2010 Tax Act made changes to the Federal estate tax, affecting the Florida estate tax as well. It extended the phase-out of the state death tax credit through December 31, 2012 and imposed the federal estate tax on estates of decedents who died after December 31, 2009. It also provided an election for estates…
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After Death Does Us Part: Surviving Spouse as Fiduciary and Beneficiary
When spouses name each other as the person in charge of their will and estate, it can create conflicts of interest, especially in blended families. In these situations, it might be better to appoint an outside person, like a bank or trust company, to help. This can be more expensive, but it can help prevent…
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Estate Planning in 2015 and Beyond: No Longer a One-Size-Fits-All Approach
In the past, estate planning for lawyers was focused mainly on reducing estate taxes, without considering other important factors like income taxes, asset protection, and charitable planning. However, recent changes in laws and the economy have made estate planning much more complex. Before 2000, estate and gift tax exemption was only $675,000 and the top…
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The Tax Cuts and Jobs Act: Still Waiting for That Postcard
President Donald Trump signed the Tax Cuts and Jobs Act into law in December 2017. It made changes to the tax system, with the goal of making it simpler. Some parts of the tax code are easier, but others, especially for businesses, are more complicated. Many of the changes will expire in 2026. So, filing…
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Drafting Wills for the Remarried Spouse
Forms used for the traditional marriage are not suitable for second marriages, especially when children are involved from a previous marriage. Attorneys need to make sure that their clients have updated wills that take into account the unique circumstances of a second marriage. The estate planner should educate their client about the potential conflicts between…
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Notice to Caveators Prior to Will’s Admission to Probate
If someone files a caveat because they disagree with how a will is being handled, they must be given notice before the will can be approved. This gives them a chance to have their concerns heard. The law doesn’t specifically say they have to be given notice of the petition for administration, but it does…
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The Recovery of Attorneys’ Fees and Costs for the Unsuccessful Offer of a Will for Probate
This article will explain Florida law about getting money for your legal fees and costs if you tried to get a will approved by the court but it didn’t work. It will also give tips on how to do this successfully. If someone tries to get a will approved in court but it doesn’t work,…
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The Revocable Trust as Beneficiary of the Estate and the Effectiveness of Full Waiver Forms
The article discusses the legal steps to take when administering an estate with a trust as a beneficiary. It highlights the potential conflict of interest if the person in charge of the estate is also the trustee of the trust. It explains the importance of providing all information to the trust beneficiaries. It uses the…
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Post-death Confidentiality of Estate Planning Communications Between Attorney and Client
So basically, when a client talks to their lawyer, everything they say is supposed to be kept private. This is called the lawyer-client confidentiality rule. It means the lawyer can’t tell anyone else what the client said, unless the client says it’s okay. This rule is different from the lawyer-client privilege, which is a rule…
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Minimizing a Personal Representative’s Personal Liability to Pay Taxes, Part II
In Part II of the article, the authors give advice to a personal representative (PR) on how to minimize personal liability for federal and state tax obligations. They recommend filing tax returns for the years before the decedentâs death, gathering and reviewing the decedentâs tax and financial information, and filing necessary forms with the IRS…
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Understanding the Testamentary Effects of Community Property Rules
Due to a lot of people moving to Florida, the state has community property rules that are important in legal decisions. In 1992, the Florida probate laws were changed to include a version of the Uniform Disposition of Community Property Rights at Death Act. This act affects what happens to a person’s property after they…
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Minimizing a Personal Representative’s Personal Liability to Pay Taxes, Part I
As a personal representative of a Florida probate estate, you have to file tax returns and pay taxes for the deceased person and their estate. If you don’t do this, you could be personally responsible for the unpaid taxes, penalties, and interest to the IRS and the Florida Department of Revenue, even years after the…
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Ten Tips for Handling Complex Probate
When someone dies, only one person can be the lawyer’s client, and it’s usually the one who can pay the fees and has the authority to handle the legal matters. It’s important to figure out who the client is before any meetings or discussions. In some states, the lawyer represents the person in charge of…
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This Party’s Dead! But Will the Lawsuit Survive?
When someone involved in a lawsuit dies, it can get very complicated. There are rules from the court and from the probate process that lawyers have to follow. This can be tricky, because not all lawyers know both sets of rules well. But there are ways to handle it. The court rules tell lawyers how…
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Access to Digital Assets Florida’s New Law for Fiduciaries: What Are Digital Assets and Why Are They Relevant?
Digital assets, like social media, email accounts, online banking, and digital currency, have value and need to be protected. Florida has a new law that lets certain people, like guardians, access these assets. Federal laws and terms-of-service agreements also protect digital assets from unauthorized access. The SCA makes it a crime to access digital communication…