FLORIDA ESTATE PLANNING AND PROBATE LAW BLOG

The Florida Estate Planning and Probate Law Blog is focused on recent federal and state case law and planning ideas.

IS THIS THE YEAR TO MAKE A ROTH IRA CONVERSION

♠ Posted by Marc J. Soss in ,,,,,
The crazy 2015 stock market offers some excellent planning opportunities, if you qualify.  While year-end has not brought the stock market back to where it started the year, it opens the door to those interested in making a Roth IRA conversion. Converting a traditional Individual Retirement Account (IRA) to a Roth IRA would allow the assets to grow tax-free, while remaining in your account, and tax-free distributions once you start withdrawing funds. There is no income limit or other restrictions on who is eligible to convert a traditional retirement account to a Roth IRA. The...
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2015 YEAR END TAX PLANNING CONSIDERATIONS

♠ Posted by Marc J. Soss in ,,,,,,
2015 Year-End Planning Moves: ·  Realize losses on stock while substantially preserving your investment position. There are several ways this can be done. For example, you can sell the original holding, then buy back the same securities at least 31 days later. ·  Postpone income until 2016 and accelerate deductions into 2015 to lower your 2015 tax bill. This strategy may enable you to claim larger deductions, credits, and other tax breaks for 2015 that are phased out over varying levels of adjusted gross income (AGI). These include child tax credits, higher education tax credits,...
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FLORIDA GUARDIAN DENIED FEE FROM MEDICAID RECIPIENT'S ASSETS

♠ Posted by Marc J. Soss in ,,,,,,,,,
On November 25, 2015, the Second District Court of Appeals, in the case of Lutheran Services Florida, Inc. v. Department of Children and Families (Fl. Ct. App., 2nd Dist., No. 2D13-5840, Nov. 25, 2015) held that the guardian of a Medicaid recipient may not deduct a guardianship fee from the recipient's income because the fee is not medically necessary. The case originated from a court order which authorized a professional guardian to deduct a monthly sum from an indigent and incapacitated individuals income and patient responsibility amount. The professional guardian then petitioned the Department...
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SELECTING THE RIGHT TRUSTEE FOR YOUR TRUST

♠ Posted by Marc J. Soss in ,,,,,,,
Upon creation of a Revocable or Irrevocable Trust (a legal arrangement through which a trustee holds legal title to property for another person), you will need to appoint an individual or trust company to serve as its trustee (person or entity in charge). With a Revocable Trust, that individual is typically the creator of the Trust. With an Irrevocable Trust, this can be either an individual or individual (but not the creator). Regardless of the type of Trust created, it is important to appoint an individual or institution to serve if the named individual or institution is unable to continuing...
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YEAR END RETIREMENT PLANNING TIPS

♠ Posted by Marc J. Soss in ,,,,,,,
Year end retirement planning deadlines you need to meet in order to qualify for income tax deductions and credits: Make last-minute 401(k) contributions. An employee can contribute up to $18,000 to a 401(k) account in 2015. Workers age 50 and older can make catch-up contributions worth an additional $6,000, or a total of $24,000 in 2015, which are also due by Dec. 31. An investor over age 50 who is in the 25 percent tax bracket and maxes out his traditional 401(k) will save $6,000 on his federal income tax bill. But even a smaller contribution of $5,000 would save him $1,250...
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FLORIDA GUARDIANSHIP REFORM - IS IT ON THE WAY?

♠ Posted by Marc J. Soss in ,,,,,
For decades, states have granted courts the power to appoint guardians or conservators for elderly or disabled people unable to tend to their basic needs. Most appointed guardians are family members, but judges can turn to a growing industry of professional, unrelated guardians. Often the guardians are granted broad authority over a ward’s finances, medical care and living conditions. But guardianship systems across the country are plagued by allegations of financial exploitation and abuse, despite waves of reform efforts, according to a Wall Street Journal Page One story. As a result, critics...
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2016 CONTRIBUTION & BENEFIT LIMITS

♠ Posted by Marc J. Soss in ,,,,,
The following chart details the compensation, contribution and benefit limits for 2016. All limits are applicable for the plan year commencing in the respective year, except as stated otherwise below. LIMIT 2016  2015  2014 401(K) DEFERRAL CONTRIBUTIONS $18,000 (Calendar Year Limit)  $18,000 (Calendar Year Limit)  $17,500 (Calendar Year Limit) GOVERNMENTS AND TAX-EXEMPT PLANS DEFERRAL CONTRIBUTIONS $18,000 (Calendar Year Limit)  $18,000 (Calendar Year Limit) $17,500 ...
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EVIDENCE REQUIRED TO DETERMINE POSSESSION OF PROPERTY DURING FLORIDA PROBATE PROCEEDINGS

♠ Posted by Marc J. Soss in ,,,,,
    During the Florida probate administration the personal representative may take possession of all of the decedent’s property.  Fla. Stat. § 733.607(1).  However, this provision of the Probate Code also provides that such property can be left with the person presumptively entitled to it.  As a result, it is very common for disputes to arise as to (i) whether property is, in fact, the decedent’s property; and (ii) whether someone other than the personal representative has a right to possession of the property during administration.   Florida’s Fourth District...
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WHERE ELDER LAW AND ESTATE PLANNING MEET

♠ Posted by Marc J. Soss in ,,,,,,,,
  Florida Estate planning does not only involve the preparation of a Will, Trust, or Power of Attorney, but also takes into consideration retirement issues. For the ordinary individual, both the means-tested and non-means-tested government benefit programs (Security Security, Medicare and Medicaid) are an important retirement consideration.   As a result, individuals must consider whether they should dispose of their assets, prior to death, through pre-need planning in order to qualify for means-tested government programs (Medicaid – which may pay for the cost of long term...
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THE ABLE ACT (ACHIEVING A BETTER LIFE EXPERIENCE)

♠ Posted by Marc J. Soss in ,,,,,,,,
  The Achieving a Better Life Experience (the ABLE Act) was signed into Federal law on December 19, 2014. Each state is responsible to pass legislation to create the vehicle for ABLE accounts to be created and administered. The law creates a new savings vehicle for those individuals suffering with disabilities. The account funds can be utilized for education, medical and dental care, job training, housing, transportation and other expenses.   The first $100,000 is disregarded when determining SSI (Social Security Income) eligibility. Without this Act a person receiving Medicaid...
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2016 FEDERAL ESTATE AND GIFT TAX LIMITS (PROJECTED)

♠ Posted by Marc J. Soss in ,,,,,
It is estimated that on January 1, 2016, the federal estate and gift tax exemption will rise to $5.45 million (up from $5.43 million).  This would allow a married couple to shield $10.9 million from federal estate taxes. With the top federal estate tax rate at 40%, this number is important to individuals who try to decrease the size of their estates and avoid the tax. Over the years, the exemption amount has risen from $675,000 in 2001, $1.0 million in 2003, $2.0 million in 2008, until it was set at $5 million in 2011, and indexed for inflation. It is important to note that the gift...
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WILL YOUR PRE-MARITAL AGREEMENT PROTECT YOU?

♠ Posted by Marc J. Soss in ,,,,,,,
  In Hahamovitch v. Hahamvitch, the Florida Supreme Court Case No. Sc14-277 (September 10, 2015) addressed a divorcing spouse claim that a twenty (20) year old pre-marital agreement did not apply to the enhanced value of non-marital property, attributable to marital labor. Her position was that the enhanced value to the husband’s assets was subject to equitable distribution. The divorcing spouse additionally claimed an interest her husband’s earnings, since their agreement did not specifically address the issue. The husband argued that the agreement did provide that the property...
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MAKE YOUR FINAL DECISIONS EARLY

♠ Posted by Marc J. Soss in ,,,,,,,,,
  Over seventy (70%) percent of Americans, dream of spending their final days at home, in peace and comfort, surrounded by loved ones who care for you compassionately until their last breath. In reality, seventy (70%) percent actually die in a hospital, nursing home or long-term care facility. To avoid this happening to you, it's never too early to start planning because there are no guarantees for the future.   Prepare Estate Planning Documents. According to a survey, forty-one (41%) percent of all baby boomers do not have an estate plan and fifty (50%) percent of all Americans...
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INHERITANCE OF FREQUENT FLYER MILES

♠ Posted by Marc J. Soss in ,,,,,,,,,
If you think that using your frequent flyer miles is a hassle while you are alive, it is even worse when you are dead. In the Florida probate area a frequent question is can I inherit a decedents frequent flyer miles. Some of the big North American lines specifically address the issue of transfer to heirs (and divorced spouses) in their frequent flyer membership rules: Air Canada: Miles or rewards are personal and cannot be assigned, traded, willed or otherwise transferred. American: Neither accrued mileage, nor award tickets, nor upgrades are transferable by the member (i) upon death,...
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ONE IN THREE AMERICANS WHO GET AN INHERITANCE BLOW IT

♠ Posted by Marc J. Soss in ,,,,,,,
  The “Great Wealth Transfer” (the wave of wealth, estimated to be in the trillions, which will flow from the oldest generation in the coming decades) will land in the hands of many Americans ill prepared to handle an inheritance. Multiple studies indicate that the majority of these recipients will quickly dispose of their inheritance. One study found that one third of people who received an inheritance had negative savings within two years of the event.   The problem stems from the fact that those inheriting the funds tend to view it as “fun money” and do not utilize it...
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