♠ Posted by Marc J. Soss in estate plan,estate planning,Family Trust,florida estate planning,florida probate attorney,Florida Retirement,Last Will and Testament,Sarasota attorney at Tuesday, February 09, 2016
PREPARING FOR YOUR ESTATE PLANNING MEETING
1. Create A List Of Your Assets And
Liabilities. Knowing
what you own can make the estate planning process a lot simpler. Your asset
list should include your house (and mortgage), bank accounts, investment
accounts, business interests, personal belongings with value (e.g., artwork or
jewelry), insurance policies on your life and retirement accounts. For each
asset on the list, include an estimate of its value or current balance, as well
as whether you own the asset in your individual name or in joint name with
another person, such as your spouse. It is equally important to make a list of
your debts and legal obligations (mortgage on home, lines of credit, business
loans that you have personally guaranteed, etc..
2. Decide Which, If Any, Personal
Belongings You Want To Leave To A Specific Person. You should consider what
you own and to whom you want it to pass upon your death. The value of the item
should not be a consideration as it may have great sentimental value to the
recipient. Most couples provide that all of their household furnishings,
jewelry, collections, etc., pass to the surviving spouse, when the first spouse
dies, and then everything will be divided equally among their children when
both of them are gone. If there is a concern that your children or heirs may
fight over items which have nothing more than sentimental value you should
consider empowering an independent individual to be the ultimate decision
maker.
3. Who Should Be The Personal Representative(s). A Personal
Representative is the individual or entity appointed to administer your estate
at death. Their duties include
collecting your assets, paying debts, expenses and any taxes that may be due
and then distributing the assets as directed by your estate plan. People typically
name their spouse and then child(ren) to serve as the personal representative of
their estate. Florida law only requires that the individual named be (i) a
state resident; or (ii) family member. You
can also name more than one person to serve as your Personal Representative.
4. Outright Distributions or Creation of Trusts
For Your Children And Grandchildren. Since it is your
hard earned money,
at your death you can decide how and to whom you want it distributed. You can elect to have it all distributed to
your surviving spouse and then child(ren) or held in trust for their benefit
and distributed to future generations. Other options include dividing the trust
property into equal/unequal shares, with each share held in trust for a child or
grandchild until they reach a specified age (e.g., 1/3 at age 30, 1/3 at 35,
and the balance at 40), or their entire lifetime (Florida allows a trust to
exist for 360 years after the creators death) or attain certain accomplishments
(college or post-graduate degree). Two benefits of holding an inheritance in
trust is that (i) the property can be insulated from the claims of that
beneficiary’s creditors, including a divorcing spouse; and (ii) it can prevent
rapid depletion of the funds by a youthful recipient.
5. Who Should Be The Trustee(s). As with the appointment
of a Personal Representative, the individual or entity that select as the trustee
of your trust, following your death, can be a family members, friend and/or
professional. The trustee will be responsible for managing the assets and
making sound distribution decisions, so there will be adequate resources to
meet your spouse’s and/or your children’s needs after you are gone. Unlike a
Personal Representative, there is no restriction on who you can select to serve
as a trustee.
6. Who Should Make Medical Decisions For
You If You Are Incapacitated. Your health care surrogate is appointed as
your agent to make health care decisions for you. Make sure the individual(s)
selected are capable of performing their responsibilities on your behalf. There
is no restriction on who you can select to make these decisions on your behalf.
7. Who Should Take Care Of Your Financial
Affairs If You Are Unable. Your power of attorney appoints the
individual(s) to act as your agent with regard to financial matters during your
lifetime. In Florida, a power of attorney is in effect immediately after
execution, even if you are not incapacitated. There is no restriction on who
you can select to make these decisions on your behalf.
