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.

2023 RETIREMENT RELOCATION

♠ Posted by Marc J. Soss
2023 saw one of the biggest retirement relocations in three (3) years About 37% were under 65, including 23% who were under 55. In comparison, 26% of 2022 retirees were under 65. Florida led the nation and attracted 11% of retirees in 2023. South Carolina was a close second with 10% of retirement moves. The Miami-Fort Lauderdale and North Port-Sarasota Bradenton metro areas were the top destinations in Florida, while those moving to South Carolina flocked to Myrtle Beach-Conway-North Myrtle Beach.The other top destinations last year for retirees were Texas with 5.8%, Washington with 5.3%, Tennessee...

2024 MEDICAID INCOME LIMITS

♠ Posted by Marc J. Soss
As of January 1, 2024, the income criteria, maximum amount of assets, and maximum equity in your homestead property has been adjusted: Applicant income limits: Increased to $2,829/month if single and $2742 if you are married. For an individual who is not married, the Applicant can only have $2000 in countable assets. For an Applicant who is married, their Spouse can have additional Asset of $148,620. An Applicant for Florida Medicaid can have up to $713,000 in homestead equity....

2022 FEDERAL ESTATE AND GIFT TAX EXEMPTION AMOUNTS

Each year, the IRS considers inflationary adjustments to the estate and gift tax exemption amount and gift tax annual exclusion amount. The 2022 adjusted numbers are: 2022 Exemptions and Exclusions: The estate and gift tax exemption amount has increased to $12.06 million per person in 2022 (from $11.7 million per person in 2021) 2022 generation-skipping transfer tax (GST tax): The exemption amount has increased to $12.06 million per person. January 1, 2026: If Congress takes no action between today and December 31, 2025, the exemption amounts will revert to pre-2017 Tax Act levels ($5 million...

HOUSE WAYS AND MEANS COMMITTEE TAX PROPOSAL

On September 13, 2021, the Congressional House Ways and Means Committee introduced legislative tax proposals to help fund the House’s proposed $3.5 trillion stimulus package. A brief summary of the trust and estate and retirement asset taxation proposals included within it follow: 1. Trusts and estates with taxable income of over $12,500 (adjusted for inflation) would be taxed at a 39.6% rate, increased from the current 37% rate. 2. Trusts and estates would be taxed on capital gains at a top rate of 25%, increased from the current 20% capital gains tax rate. 3. Trusts and estates with adjusted...

METHODS TO PROTECT AN INHERITANCE

Unfortunately, divorce is a part of society. Many individuals seek legal counsel on how to protect an inheritance they may receive from a parent or family member proactively in the event they become divorced. The following is a brief list of ideas to consider implementing: (i) do not add your spouse’s name to the title of inherited assets; (ii) do not use inherited assets to purchase assets that will be titled with your spouse unless you intend to create a marital asset; (iii) do not use inherited assets to satisfy marital debt or pay marital expenses (home mortgage); and (iv) do not mix marital...

Funding Different Types of Long-Term Care

Even if you are currently in perfect health, there is a significant chance you will eventually require some form of long-term care as you age. While it is common to do some sort of planning for the expenses of retirement, fewer people prepare in advance for long-term care, with the result being that many people end up blindsided by the sheer amount of expenses on a month-to-month basis. The cost of care is only increasing, and current government programs will not cover all facets of long-term care. This is why it is important to begin planning for long-term care as early as possible to ensure...

Federal Court Affirms Employer Right To Require Employees To Be Vaccinated

On June 12, 2021 a federal judge in Houston, Texas issued the first federal court decision addressing whether an employer may require its employees to be vaccinated as a condition of employment. The federal judge ruled that Houston Methodist Hospital (the “hospital”) did not violate the law by requiring, as a matter of policy, that all employees be vaccinated against COVID-19 by June 7, 2021. The court rejected multiple arguments, including that the COVID-19 vaccines currently available “are experimental and dangerous,” the injection requirement violated public policy, employees cannot be required...

NEW IRS GUIDANCE ON 100% MEAL DEDUCTION

On April 8, the IRS released Notice 2021-25, which provided guidance in determining which meals may be fully deductible under the new IRS rules and which are remain subject to the fifty (50%) percent limitation. Under long-standing IRS rules, the deduction for food or beverage expenses is generally limited to fifty (50%) percent of the amount. In order to be deductible as a business meal, the food must not be lavish or extravagant or the taxpayer (or an employee of the taxpayer) must be present at the furnishing of such food or beverages. The Consolidated Appropriations Act of 2021, expanded...

THE COST OF LONG-TERM CARE IN 2020

The cost of long-term care is a concern for all seniors. The annual cost continues to rise and makes it untenable for most to afford it. It is estimated that an individual turning age 65 has a seventy (70%) percent chance of needing long-term care at some point. The most expensive state for care is Alaska, while the least expensive state is Missouri. The annual Genworth study showed how Florida ranked. 2020 MEDIAN ANNUAL COSTS National Florida Nursing Home, Private Room $105,850 $117,804 Nursing Home, Semi Private $93,075 $104,025 Assisted Living $51,600 $44,400 Home Health Aide,...

2021 Tax Information

Although our 2020, Federal Income Taxes are not due until April 15, 2021, it is important to start planning today for 2021. The following is a list of some important tax thresholds: 2021 Annual Exclusion for Gifts In 2021, the first $15,000 of gifts to any person are excluded from tax. The exclusion is increased to $159,000 for gifts to spouses who are not citizens of the United States. 2021 Federal Income Tax Brackets For Single Individuals 10% Up to $9,950 12% $9,951 to $40,525 22% $40,526 to $86,375 24% $86,376 to $164,925 32% $164,926 to $209,425 35% $209,426...