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.

PRE-2013 FEDERAL ESTATE AND GIFT TAX RELIEF FOR SAME SEX COUPLES

♠ Posted by Marc J. Soss in ,,,,,
The IRS has issued Notice 2017-15 which provides same-sex spouses with federal estate, gift and generation-skipping transfer (GST) tax relief. The Notice allows same-sex spouses to recalculate taxes that were incurred or paid prior to the repeal of the Defense of Marriage Act (DOMA). Prior to the repeal of DOMA, for purposes of federal law the terms “marriage” and “spouse” were defined to exclude same-sex couples. This resulted in same-sex marriages not being treated as a legal marriage under Federal law. This precluded same-sex couples from being able to claim a marital deduction for gifts...
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NEW MICHIGAN LAW ALLOWS FOR THE CREATION OF DOMESTIC ASSET PROTECTION TRUSTS

♠ Posted by Marc J. Soss in ,,,,,,,
On December 5, 2016, the State of Michigan joined the ranks as one of seventeen states (including Alaska, Delaware, Nevada, Utah and South Dakota) that permit the use of irrevocable self-settled asset protection trusts for purposes of creditor protection planning. The law becomes effective on February 5, 2017. A Michigan domestic asset protection trust ("DAPT") will enable an individual to shelter assets from future third party creditors. A DAPT is an irrevocable self-settled trust which, when established and funded properly, allows the grantor (the individual establishing the trust) to protect...
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IS A PAY-ON-DEATH OR TRANSFER-ON-DEATH ACCOUNT THE RIGHT CHOICE FOR THE ACCOUNT BENEFICIARY?

♠ Posted by Marc J. Soss in ,,,,,,
The benefits and negatives associated with establishing transfer on death (TOD) and pay on death (POD) accounts has been debated for a long-time. The main benefit of an account of this nature is that the account assets will pass directly to the beneficiary(s) named on the account without probate or being subject to the decedent’s creditor claims. This is a simple way to transfer assets at death to an individual not involved in any dispute or litigation (divorce, bankruptcy, judgment creditor, etc.). In contrast, if the individual is involved in a dispute or litigation the assets passing outright...
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IRS NOTICE 2017-12 - FEDERAL ESTATE TAX RETURN CLOSING LETTER GUIDANCE

♠ Posted by Marc J. Soss in ,,,,
For years, probate practitioners relied upon a Federal Estate Tax Closing Letter (Closing Letter) as evidence that the IRS has accepted a Federal Estate Tax Return (Form 706) as filed and that the federal tax liabilities of the estate were satisfied. Upon receipt, the Closing Letter provided the estate administrator (Personal Representative, Executor, etc..) with an assurance to proceed with closing out the estate administration process. In many situations, a Closing Letter was required to satisfy state law probate proceedings. Except in extreme circumstances, such as fraud, substantial error...
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SOCIAL SECURITY - NEW AGE FOR FULL RETIREMENT

♠ Posted by Marc J. Soss in ,,,,
Understanding social security can result in a happier retirement. January 1, 2017 brought in significant changes and the new age of 66 years and 2 months (it had been 65 years) for full retirement benefits (for those born between 01/02/1955 through 01/01/1956). It is expected to increase to age 67 for individuals born in the 1960’s. Individuals may receive permanently reduced retirement benefits when they turn 62 in 2017. As the full retirement age continues to increase, there are greater reductions in benefits for individuals who claim the benefits before they reach full retirement age. For...
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STATE ESTATES AND INHERITANCE TAXES IN 2017

♠ Posted by Marc J. Soss in ,,,,,,,,
For years it has been discussed that for estate tax purposes it was better to die a resident of certain states than others. The following is an updated list, as of January 1, 2017, of the states which impose a "death or inheritance tax" on its residents and those who follow the Federal Estate Tax Exemption amount. Good States in Which to Die a Resident: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Indiana, Louisiana, Michigan, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina,...
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STUDENT LOAN DEBT AND SOCIAL SECURITY DUE NOT MIX

♠ Posted by Marc J. Soss in ,,,,,,,,
Student loan debt is not dischargeable in bankruptcy. As a result, the baby boomer’s generation enters retirement with student loan debt (approximately seven million Americans age 50 and older owed about $205 billion in federal student debt in 2016), either borrowed for their own educations or to pay for their children’s, with approximately 33% in default. Those in default will be shocked to learn that their Social Security checks can be reduced (known as an “Offset”) to repay their student loan debt. The Offset can be as large as 15% of a social security recipient’s benefit payment. This has...
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COMMON FLORIDA MEDICAID MYTHS - DON'T ALWAYS LISTEN TO YOUR FRIEND

♠ Posted by Marc J. Soss in ,,,,,,,
Medicaid is both a federal and state level program through which health care assistance is offered it’s to members. Each state administers their program differently than the next. Your Home in Florida: A Florida residents can own a personal residence (home) and still qualify for Medicaid. Medicare Covers Long-Term Nursing Care: The Florida Medicare program covers skilled nursing care, but only for a limited period of time following a three-day hospital stay. Medicare is only meant to help a person with activities of daily living, such as bathing, eating, and using the bathroom, and can’t...
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