FLORIDA ESTATE PLANNING AND PROBATE LAW BLOG: 2019

THE 2017 TAX ACTS IMPLICATIONS IN 2020

♠ Posted by Marc J. Soss in 2017 Federal Income Tax plan,2017 TAX CUTS AND JOBS ACT,charitable contributions,federal income tax,itemized deduction,tax planning

The 2017 Tax Act made significant changes to itemized deduction planning. The two (2) biggest changes for 2020 involved: 1. Much higher standard deduction (adjusted for inflation annually).For 2020: $24,800 for married couples filing jointly (plus $1,300 for each spouse attaining age 65: max $27,400)), $12,400 for unmarried individuals/married filing separately (plus $1,650 if attaining age 65 ($1,300 if married filing separately: max $14,050 if single (max $13,700 if married filing separately)), and $18,650 for head of household (plus $1,650 if attaining age 65: max $20,300). 2. The Itemized...

POTENTIAL CHANGES FOR NONSPOUSE DESIGNATED IRA AND RETIREMENT PLAN BENEFICIARIES ON THE HORIZON

♠ Posted by Marc J. Soss in estate planning,federal estate taxes,IRA beneficiary,retirement plan,retirement plan planning,SECURE ACT 2019,stretch IRA,Wealth Transfer

Important legislation is working its way through Congress. The Setting Every Community Up for Retirement Enhancement Act (“SECURE Act”) as passed by the House of Representatives on May 23, 2019, and would impact how and when an IRA or retirement account beneficiary would be forced to receive distributions from an inherited account. The biggest change under the SECURE Act would be the replacement of the 5-year distribution rule for inherited IRAs with a 10-year rule. It would also eliminate “stretch IRAs.” If signed into law, the Act would impact plan participants and IRA owners who die after...

DEDUCTIBILITY OF FUTURE ALIMONY PAYMENTS

♠ Posted by Marc J. Soss in alimony tax deduction,deduct alimony,divorced spouse,modified divorce agreement,Tax Cuts & Jobs Act of 2017

Prior to the Tax Cuts & Jobs Act of 2017 ("ACT"), a divorced spouse could deduct any alimony payments made to his former spouse. The former spouse had to claim the alimony received as income. The ACT eliminated this tax deduction effective January 1, 2019. The implementation of this change remained unclear for agreements executed prior to December 31, 2018, but modified after that date. On July 22, 2019, the IRS issued an article clarifying the treatment of payments pursuant to a modified agreement. The article explained that "the new law applied to a modified agreement if the modified...

FLORIDA RANKED 46TH IN 2019 LAWSUIT CLIMATE SURVEY

♠ Posted by Marc J. Soss in Florida Lawsuit Climate,Florida litigation haven,florida trial lawyers,greedy florida lawyers

Florida’s lawsuit climate ranked 46th out of 50 in a new national survey released on September 18, 2019, by the U.S. Chamber Institute for Legal Reform (ILR). The city of Miami ranked among the ten worst jurisdictions in the nation. The 2019 Lawsuit Climate Survey was conducted by The Harris Poll on behalf of the U.S. Chamber Institute for Legal Reform. The poor perception of Florida’s legal climate is critical because 89 percent of survey participants—an all-time high—said a state’s lawsuit environment is likely to impact their company’s decisions about where to locate or do business. The survey...

CALIFORNIA LEGISLATION TO PREVENT EXPOLOITATION OF THE ELDERLY

♠ Posted by Marc J. Soss in abusive caregivers,Assembly Bill 328,california elder abuse,florida elder abuse

Exploitation of the elderly is a serious problem in our country. Many incidents involve caregivers that take advantage of the vulnerability of the individuals they are caring for. The California Legislature has closed loopholes in its Probate Code that allows abusive caregivers to marry their way into a dependent adult’s wealth. Assembly Bill 328, signed by California Governor Newsom on June 26, 2019, and effective on January 1, 2020, creates a presumption of undue influence that applies in two scenarios. California law previously presumed that a dependent adult who signs an instrument benefiting...

North Carolina Department of Revenue v. Kimberly Rice Kaestner 1992 Family Trust

♠ Posted by Marc J. Soss in income tax,North Carolina Department of Revenue v. Kimberly Rice Kaestner 1992 Family Trust,north carolina tax trust,supreme court,taxation of trust

On June 21, 2019, the U.S. Supreme Court addressed the case of North Carolina Department of Revenue v. Kimberly Rice Kaestner 1992 Family Trust. The Court, in a unanimous decision, found that the State of North Carolina may not tax trust income that (i) has not been distributed to the beneficiaries, for which the beneficiaries lack the right to demand the income, and (ii) for which the receipt of that income is uncertain simply because those beneficiaries reside in the state. North Carolina taxed the Kaestner trust based on N.C.G.S. §105-160.2, which provides that the state can tax any trust...

ARE YOUR ESTATE PLANNING DOCUMENTS SAFE?

♠ Posted by Marc J. Soss in estate planning documents,protect estate planning documents,Sarasota estate planning,sarasota estate planning lawyer

Many clients wonder whether it is best to leave their original estate planning documents with the attorney that drafted them or in their homes. The recent weather events and climate change, including hurricanes and tornadoes, has led to discussions on where would they best be protected? In many instances, people escape from their homes with only the clothes on their back, or even if they do have a bit of time to gather items to take, they may not think about their estate planning documents. In addition to paper copies, it is a good idea to preserve your estate planning documents electronically...

Spouses Do Not Need to Be Estranged to Request Spousal Waiver From Medicaid Application Process

♠ Posted by Marc J. Soss in estranged spouse,government benefits update,medicaid application,medicaid waiver,undue hardship waiver

A New Jersey appeals court has ruled that a married Medicaid applicant could request a spousal waiver for undue hardship even though the spouses were not estranged because the applicant's spouse refused to provide financial information. N.S. v. Division of Medical Assistance and Health Services (N.J. Super. Ct., App. Div., No. A-3562-17T2, July 8, 2019). The New Jersey Superior Court, Appellate Division, held that there is no requirement in federal law that "spouses be estranged in order to receive a spousal waiver for an undue hardship." The court holds that the "determination of undue hardship...

CONNECTICUT IS THE LAST STATE WITH A GIFT TAX

♠ Posted by Marc J. Soss in Connecticut Gift Tax,Connecticut legislation,Federal Estate Tax,state estate tax exemption

Currently, the State of Connecticut holds the distinction of being the only state that imposes a gift tax. While the legislation was again proposed, which included a repeal of the Connecticut gift tax retroactive to January 1, 2019, and would have limited federally taxable gifts includable in the Connecticut taxable estate to those made within three years of death, it failed to make it into law. Minnesota (2013), Tennessee (2012), North Carolina (2009), and Louisiana (2008) were the most recent states to repeal their state gift tax. New York and Massachusetts do not impose a gift t...

INDIANA ENACTS DOMESTIC ASSET PROTECTION TRUST STATUTE

♠ Posted by Marc J. Soss in asset protection planning,asset protection trust,creditor protection,creditor protection trust,Indiana Asset Protection Trust

On July 1, 2019, Indiana will become the eighteenth (18th) state to enact domestic asset protection legislation (“DAPT”). S.B. 265, enacted by the Indiana legislature on April 9, 2019, and signed into law on May 5, 2019 by the Governor, creates a new Section 30-4-8 to the Indiana Code to permit the establishment of “Legacy Trusts” (a form of self-settled domestic asset protection trusts). The section also provides spendthrift creditor protection to the settlors of Legacy Trusts. The new Indiana Legacy Trust statute is similar to those of other states that permit DAPTs. Under the statute,...

NEW FLORIDA HOMESTEAD EXEMPTION FOR MARRIED COUPLES

♠ Posted by Marc J. Soss in florida documentary stamps,Florida Homestead Exemption,new homestead exemption

The State of Florida imposes a documentary stamp tax of seventy (70) cents per one hundred ($100) dollars of consideration. Consideration includes mortgage obligations or other liens. In 2018, a new Florida Homestead exemption went into effect that eliminated the documentary tax expense, associated with the recording of a deed, that transferred title to real property from the name of a formerly single individual into joint names with their spouse. The exemption only applied if the deed or other instrument was recorded within one (1) year after the date of marriage. Effective July 1,2019,...

Florida Senate Committee Votes to Permanently Shorten Retroactive Medicaid Eligibility

♠ Posted by Marc J. Soss in Florida Elder Law Planning,Florida elderly,florida estate plan,florida Medicaid benefits,florida medicaid eligibility,Florida Medicaid Senate bill,Retroactive Medicaid

A Florida Senate bill that would permanently shorten how long patients can have Medicaid cover past healthcare bills narrowly cleared its first state Senate committee hearing Monday, advancing an estimated $104 million policy that could affect about 11,500 Floridians’ care. SB 192, which passed 6-4 in the Senate Health Policy committee on party lines, would cement a policy that restricts the period patients are eligible for Medicaid coverage to the calendar month before their application. The prior policy, which the Legislature changed last year, allowed patients to have the safety net program...