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.

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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2015 CHANGES TO FLORIDA'S HEALTH CARE SURROGATE STATUTES

♠ Posted by Marc J. Soss in ,,,,,,,,
  A “Designation of Health Care Surrogate” (“Designation”) is typically prepared in connection with one’s basic estate planning documents. A Designation is a written document naming someone to make health care decisions for an individual (the “principal”) or receive health information on the principal’s behalf in the event he or she is unable to do so. The instrument is not effective until the principal lacks the ability to make the decisions on their own behalf (a determination of incapacity). Although Florida has recognized an individual’s right to designate a health care surrogate,...
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