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.

Showing posts with label Revocable Trust. Show all posts
Showing posts with label Revocable Trust. Show all posts

REASONS TO FUND YOUR REVOCABLE TRUST

♠ Posted by Marc J. Soss in ,,,,
You have created a Revocable Trust (aka Revocable Living Trust) as a part of your estate plan and wonder what do you need to do next? The first, and most important thing, that you need to do is ensure that it is properly funded by transferring or assigning ownership of your assets and real property to the Trust. The benefit of properly funding your Trust is that you will not lose any control over or enjoyment of the assets. While you are handling the funding process it is important to recognize why you are doing it: Avoidance of Probate Proceedings. The most common reason individuals create a Revocable Trust is to avoid probate. Probate is the court-supervised transfer of assets from the estate of a deceased person to his or her beneficiaries. However, if all of the decedent’s assets are held in a Revocable Trust at his or her death, they are not subject to probate proceedings in either their state of domicile and any other in which they may own real property. The successor trustee can distribute the assets to each beneficiary without supervision by the court. Management During Incapacity and at Death. Should you become incapacitated the assets maintained in your Revocable Trust can be utilized by your successor trustee, without the necessity of guardianship court intervention, to handle your financial affairs. Similarly, upon your death, the assets can be seamlessly assumed by your successor Trustee, without the need to wait for probate proceedings, and distributed to your beneficiaries. Privacy and Confidentiality. Unlike a Last Will & Testament that will be filed with the probate court, a Revocable Trust is not a matter of public record. Information is reported privately to the beneficiaries and the public will have no access to this information. Every time a new asset is acquired or account opened by you it should be titled in the name of your Trust.
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TRUST BENEFICIARY CHALLENGES ADOPTED SIBLINGS ENTITLEMENT TO BENEFITS

♠ Posted by Marc J. Soss in ,,,,,,
Family inheritance disputes have become common place throughout the world. The recent case of Edwards and Kuiper v. Maxwell, 42 Fla.L.Weekly D742a (1st DCA, March 31, 2017) evidences that it know impacts adopted siblings. In this case, an adult son was a discretionary beneficiary (distributions to him were at the sole discretion of the trustee) of his great-grandparents Trust. His father later adopted another child (which also made him a beneficiary of the Trust). After the adopted son was dispersed thousands of dollars from the Trust, the adult son challenged the adoption since he was never provided with notice of the adoption or the opportunity to challenge it. In reversing the lower court, the 1st DCA found that the adult son's "interest as a beneficiary was only “contingent” since subject to the discretion of the trustee," and he did not possess a direct, financial and immediate interest in the trusts.
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IS THIS THE YEAR TO MAKE A ROTH IRA CONVERSION

♠ Posted by Marc J. Soss in ,,,,,

The crazy 2015 stock market offers some excellent planning opportunities, if you qualify.  While year-end has not brought the stock market back to where it started the year, it opens the door to those interested in making a Roth IRA conversion. Converting a traditional Individual Retirement Account (IRA) to a Roth IRA would allow the assets to grow tax-free, while remaining in your account, and tax-free distributions once you start withdrawing funds.

There is no income limit or other restrictions on who is eligible to convert a traditional retirement account to a Roth IRA. The account owner will have to pay income taxes on the account’s value on the date of conversion.  However, the new investment account will never again be subject to income taxes or required minimum distributions. Considerations that should be reviewed include (i) whether your income tax rate be lower now, or during your future retirement years; and (ii) do you have funds to pay the income taxes, other than the converted funds (if you’re under age 59 ½ and use a portion of the IRA to pay the tax bill, the payment is treated as an early distribution of the traditional IRA). 
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SELECTING THE RIGHT TRUSTEE FOR YOUR TRUST

♠ Posted by Marc J. Soss in ,,,,,,,
Upon creation of a Revocable or Irrevocable Trust (a legal arrangement through which a trustee holds legal title to property for another person), you will need to appoint an individual or trust company to serve as its trustee (person or entity in charge). With a Revocable Trust, that individual is typically the creator of the Trust. With an Irrevocable Trust, this can be either an individual or individual (but not the creator). Regardless of the type of Trust created, it is important to appoint an individual or institution to serve if the named individual or institution is unable to continuing serving for the Trust. Selection of the right trustee can be crucial to making sure the intent of the Trust is fulfilled and your goals accomplished. Their responsibilities include making proper investments, paying bills, keeping accounts, and preparing tax returns. The main consideration when selecting a trustee is whether they are trustworthy and can manage the assets in the beneficiary's best interest. Regardless of whom may be selected, it is important to revaluate the selection every few years to ensure they are the right individual or entity for the job and still capable of fulfilling their obligations to the beneficiaries. The right individual or institution today may not be right tomorrow.
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EVIDENCE REQUIRED TO DETERMINE POSSESSION OF PROPERTY DURING FLORIDA PROBATE PROCEEDINGS

♠ Posted by Marc J. Soss in ,,,,,
 
 
During the Florida probate administration the personal representative may take possession of all of the decedent’s property.  Fla. Stat. § 733.607(1).  However, this provision of the Probate Code also provides that such property can be left with the person presumptively entitled to it.  As a result, it is very common for disputes to arise as to (i) whether property is, in fact, the decedent’s property; and (ii) whether someone other than the personal representative has a right to possession of the property during administration.
 
Florida’s Fourth District Court of Appeals recently addressed this issue in Delbrouck v. Eberling, et al., __ So.3d __ (Fla. 4th DCA 2015). In Delbrouck, an estate beneficiary and the personal representative argued over the right to possess certain real property in the decedent’s name while estate administration was pending.  The personal representative filed a motion seeking surrender of the assets in question because the assets were titled in the decedent’s name.  The beneficiary countered by moving for authorization to occupy the properties, arguing that the Probate Code provides for a person presumptively entitled to possession of property to retain possession (Fla. Stat. § 733.607(1)). 
 
On appeal, the Fourth District reversed, holding that where a claim of possession is made on property titled in the decedent’s name, the determination as to who is entitled to temporary possession during probate requires an evidentiary hearing.  The appellate court reasoned that if “ownership of an asset can be contested during probate, it cannot be the case that a personal representative’s assertion of the right to possession can never be challenged.”
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WHERE ELDER LAW AND ESTATE PLANNING MEET

♠ Posted by Marc J. Soss in ,,,,,,,,

 
Florida Estate planning does not only involve the preparation of a Will, Trust, or Power of Attorney, but also takes into consideration retirement issues. For the ordinary individual, both the means-tested and non-means-tested government benefit programs (Security Security, Medicare and Medicaid) are an important retirement consideration.
 
As a result, individuals must consider whether they should dispose of their assets, prior to death, through pre-need planning in order to qualify for means-tested government programs (Medicaid – which may pay for the cost of long term nursing home care). However, in order to qualify for these programs, the programs will consider the transfers of assets in the 60 months prior to the benefits application, with limited exceptions (irrevocable college saving plans, and the "two-year caretaker rule”). Veteran benefits and health care may also be available for eligible individuals and their surviving family. 
 
In addition, a means-tested government benefit recipient who receives an inheritance or is the beneficiary of a life insurance policy, may have their government benefits terminate as a result of the windfall. As a result, more sophisticated estate planning techniques may be utilized to ensure the beneficiary does not lose their eligibility for government benefits and can still receive the benefit of the bequest.
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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 could only have personal liquid assets of $2,000 or less. Contributions grow tax free and withdrawals for qualified expenses are also tax free.

Eligibility for an account requires an individual to be entitled to Social Security benefits, based on a blindness or disability that occurred before the date on which the individual turned age 26. A beneficiary is limited to one ABLE account and the account must be set up and established in the state in which they live. Account contributions are treated as a completed gift (they are non-deductible cash contributions) and limited to $14,000 per year.

An ABLE Account may be rolled-over tax free from one account to another for the same beneficiary, but only once in a 12 month period. Any amounts remaining in an ABLE Account at the beneficiaries death are subject to a claim from the state for an amount to replace Medicaid payments made by the state.

In contrast, a Special Needs Trust can be established for any age beneficiary and is not subject to this payback provision. There are also no dollar limits that can be contributed or accumulated in a Special Needs Trust.
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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 tax is tied to the estate tax, so the inflation indexing helps individuals make the most of tax-free lifetime giving too.  This increase in the exemption amount will allow an individual, who previously made a $5 million gift to their children to provide them with an additional $450,000. 

Separate and distinct from the federal estate and gift tax exemption is the annual gift tax exclusion amount. In 2016, it is projected to remain at $14,000 (the same as 2014-2015). The annual gift tax exclusion allows individuals to gift the sum of $14,000 to as many individuals as they desire without any gift tax consequences.  A husband and wife can make a joint gift of $28,000. It is important to consider the federal kiddie tax when making gifts to young individuals and students through the age of 23, since the young individual pays no tax on the first $1,050 of unearned income and then a 15% rate on the next $1,000. Investment income, above these small amounts, will then be taxed at the parent’s tax bracket. 
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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 “owned or hereby acquired by each of them respectively” would be free of claims of the other spouse. It also provided that “each party agrees that neither will ever claim any interest in the other’s property,” and if one party “purchases, [a]cquires, or otherwise obtains, property in [his/her] own name, then [that party] shall be the sole owner of same.” Thankfully, both the District Court of Appeals and the Supreme Court concurred and found that the above general waiver language was broad enough to protect enhancement in value of property and the husband’s separate earnings as separate property of the husband, thus denying the wife an interest in those assets upon divorce.

When drafting marital agreements it is important to look to Fla.Stats. Section 61.079 and Casto v. Casto,  508 So.2d 330 (Fla. 1987), in which the Florida Supreme Court found that unfairness or unreasonableness can negate enforceability, although full and complete financial disclosures will still allow for enforceability even if the agreement is unfair or unreasonable.
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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, (ii) as part of a domestic relations matter, or (iii) otherwise by operation of law. However, American Airlines, in its sole discretion, may credit accrued mileage to persons specifically identified in court approved divorce decrees and wills upon receipt of documentation satisfactory to American Airlines and upon payment of any applicable fees.

Jet Blue: Accrued points and award travel do not constitute property of member and are non-transferable (i) upon death, (ii) as part of a domestic relations matter, or (iii) otherwise.

United: Neither accrued mileage nor certificates are transferable (i) upon death, (ii) as part of a domestic relations matter, or (iii) otherwise by operation of law.

Southwest: Their frequent flyer program rules have nothing to say about the subject one way or the other.

Even the airlines that allow transfer are pretty specific about who can claim the miles. You must be either a "surviving spouse" or mentioned as an heir in the deceased member's Will.
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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 to shore up their retirement savings. The 2015 Retirement Confidence Survey by the Employee Benefit Research Institute found that 57% of workers have less than $25,000 in savings and investments.  In addition, when you factor in inflation, even a $1 million inheritance will not guarantee a couple’s comfortable retirement.
 
The following is a list of expert’s guidance:
 
A decision-free time period where no big decisions (large investments or expenditures) are made. This includes evaluating funds put away for retirement and anticipated cost, the cost of a child’s education through graduate school, annual trips with the extended family, or the purchase of a second home for the whole family to use. 
 
The payment of oppressive debt should also top the list of considerations. Why would you maintain a credit/debit card with a 20% interest rate when you could not invest the funds and earn a financial return even close to that amount annually. 
 
The next consideration should be the creation of an emergency fund in case of unemployment, a medical emergency, or a big-ticket home repair. The funds can help you weather the unexpected expense while still maintaining your lifestyle. 
 
Do not make family members aware of your windfall. If you do, you will quickly learn about multiple “get rich quick” ideas that distant relatives have for your money or loans that you will need to pay on someone else’s behalf. 
 
Funds which remain, after allocating for each of the above items, should then be spent with caution. What may have initially sounded like a great idea (a second home by the lake) could result in the purchase of an item that family and friends will use more than you.

 
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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, effective October 1st, two key changes go into effect. 
 
First, a designated health care surrogate will now be able to act immediately, prior to any determination of incapacity of the principal. Under the new statute, the Designation can be drafted so that the health care surrogate has the power to act immediately upon execution of the document and avoid waiting for a determination of incapacity of the principal. However, if the principal has mental capacity, his or her decisions would be controlling and would not require any consent of the surrogate. In addition, the Designation can be revoked at any time. 
 
Second, parents will be able to name a health care surrogate for a minor child in the event the parents (or guardian) are unable to act. In such case, whoever is taking care of the minor child can be authorized to make such decisions without the delay of locating a parent who is unavailable. This designation is made by an executed document and can be amended or revoked at any time.
 
It is important to understand that a Designation of Health Care Surrogate is distinct from a “Living Will” which is a separate document that reflects one’s desire to have life prolonging procedures (machines) removed where the principal is terminally ill or in a persistent vegetative state with no reasonable probability of recovery. The individual chosen to be the health care surrogate would normally also be named in the Living Will document to ensure that the wishes of the principal are carried out.
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CHANGES TO FLORIDA LAW IMPACTING YOU

♠ Posted by Marc J. Soss in ,,,,,,,,


FLORIDA'S HEALTH CARE SURROGATE STATUTES: Effective October 1st, an individual may assign the power to a surrogate to make health care decisions for that person even if the person is not incapacitated. If there is ever a conflict between the surrogate and the principal, the principal's decision is controlling as long as the principal has capacity. A principal may also amend or revoke the durable health care surrogate as long as the principal is not incapacitated. A principal can do this through a variety of different ways including written amendments or written revocation. Physicians still must discuss treatment and other important information with a person who is not incapacitated regardless of whether or not there is a surrogate. Parents now have an option to name a health care surrogate for minors under 765.2035(6). This will be useful if a parent is unavailable to provide consent for treatment for their child. This could come up in a variety of situations, such as when the parents are traveling without their minor children.

FLORIDA UNIFORM TRANSFERS TO MINORS ACT:  Effective July 1, 2015, Florida allows custodianships to last until the age of 25. Florida statute 710.123 now allows for an age of 25 to be set as the termination date when the UTMA account is created. A Florida custodianship can be created if the custodian, minor, or transferor lives in Florida or if the property protected by the custodian is in Florida.  Florida Statute 710.123(2) was added, which grants minor beneficiaries of UTMAs with a termination age of 25 the ability to withdraw the funds at 21. However, there is also the ability to limit the right to withdraw to a certain duration so that if the beneficiary does not use their right within the specified time, then the assets cannot be withdrawn until the age of 25 when the UTMA terminates. This time period is generally 30 days.


FLORIDA GUARDIANSHIP LAW: Under prior law, durable powers of attorney were suspended when anyone initiated judicial proceedings to determine incapacity of an individual or to have a guardian advocate appointed. This suspension lasted until the petition was dismissed or withdrawn. The new law provides that certain family members (child, parent, spouse, or grandchild) will no longer be automatically removed from being agents upon the incapacity of the principal, and the powers provided in the document will continue. The new statute also has a process to suspend a power of attorney that is held by a family member in case that family member is abusing their power.
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WHERE CAN WE FIND THOSE AGE 65 AND OLDER

♠ Posted by Marc J. Soss in ,,,,,,,


As the Baby Boomers reach retirement and older generations continue to live longer, more counties across America are turning gray (their hair). A new analysis finds that 97% of counties saw an increase in their 65-and-older population since 2010. On average, a U.S. county’s 65-and-older population grew by 12.4% from 2010 to 2014. Some counties are “aging” much more rapidly than others.  

The State of Florida, the destination for most snowbirds and retirees, is one of the nation’s grayest states. Overall, 19.1% of the Sunshine State’s population is 65 and older (the highest percentage in the nation). Sumter County (west of Orlando) is the only U.S. county where more than half (52.9%) of residents are 65 and older. Sumter County also has the highest median age in America at 65.9. Not far behind, with 37.7% of its residents age 65 and older is Charlotte County, Fla. and then Citrus County with 35.2%. In Florida, 53 of 67 counties have an above-average share of people 65 and older when compared with the percentage of Americans in that demographic.
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HOW CAN I AVOID STEP-CHILDREN FEUDING OVER AN INHERITANCE

♠ Posted by Marc J. Soss in ,,,,,,,,

Statistics show that two in every five marriages is a remarriage and the number of individuals who have been married more than once has nearly doubled. The end result is more step-parents, half-siblings, and step-nieces than ever before.  
While many of these families get along while both parents are alive, fierce fighting can occur when one parent dies with a sizeableestate. The battles occur over what assets each parent and their children claim they accumulated prior to and during the marriage. The best way to solve many of these issues is with a pre-marital agreement.  However, in the absence of one, to avoid these battles, the classic advice is for families to talk it out before a spouse’s death. If everyone knows how much money is at stake and how it will be divided at death, they will be less likely to be surprised or offended when the estate plan is implemented.  Unfortunately, nothing can stop or dissuade a greedy child from challenging or interfering with the implementation of an estate plan. 
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I AM A RESIDENT OF WHAT STATE?

♠ Posted by Marc J. Soss in ,,,,,,,,
The criteria for determining whether a deceased individual's estate is subject to probate or estate taxes in a state is based upon their state of domicile at death. Reaching that determination can be complex.

For income tax purposes, the residency requirement is based on the number of days you reside in a particular state in a given year. If an individual does not spend more than 183 days in any one state during the year, more than one state may claim that individual as a resident, causing them to potentially owe tax in two or more states. However, for purposes of determining whether an individual is subject to probate or to estate or inheritance tax in a state the individual’s domicile will be scrutinized at the time of their  death. A domicile is where one intends to make his or her home for a permanent or indefinite period. A taxpayer can have only one domicile. Once domicile is established, it continues until it is established elsewhere.


Many factors can be utilized to determine an individual's domicile: the location of your principal residence; mailing address; where you applied for a homestead or veterans property tax exemption or other comparable benefit; whether you can be claimed as a dependent on another person’s federal income tax return and where that person is domiciled; where your spouse or close family members reside; where you are registered to vote; the state which issued your driver’s license; vehicle registration; professional licenses; location of active bank accounts; unemployment insurance; resident tax returns; the state where you earn your wages; address recorded for insurance policies, deeds, mortgages or other legal documents; state in which you hold fraternal, social or athletic memberships; location of house of worship; etc...

Add to this equation the fact that states are looking for tax revenues and may attempt to claim you as a resident based upon past behavior. This can result in multiple states claiming a decedent as a resident. In addition, even if an individual is domiciled in one state, his or her heirs may still need to pay estate or inheritance taxes or probate a will in another state if they owned real property in a state that is not his or her state of domicile. Proper planning may avoid the need for a separate probate in those other jurisdictions.
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UPDATE YOUR FLORIDA POWER OF ATTORNEY AND HEALTH CARE DESIGNATIONS REGULARLY

♠ Posted by Marc J. Soss in ,,,,,,,

Most individuals have their estate planning documents prepared and then put them away on a shelf. During that time period the laws pertaining to them can change many times. As a result, it is very important to review your Florida Health Care Surrogate and Powers of Attorney at least every three (3) years. 
Your Health Care Surrogate appoints a trusted person to make medical decisions on your behalf in the event an illness or injury renders you unconscious or otherwise incapacitated. Your Power of Attorney appoints an individual to make financial decisions or execute transactions on your behalf. It is important to review these documents to make sure that the individual you previously entrusted to handle affairs on your behalf can still be trusted, they are still around and involved in your life, or they may be deceased. 

Even if nothing has changed since you signed your Florida Health Care Surrogate and Powers of Attorney, it’s a good idea to sign new documents every few years. Because of liability concerns, some financial institutions and health care providers may be reluctant to honor powers of attorney that are more than a few years old.
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CHEAP WILLS CAUSE MAJOR HEADACHES

♠ Posted by Marc J. Soss in ,,,,,,,,
Ever wonder why you can purchase a computer program, for under $40, and be able to create an entire estate plan? The answers is that most individuals are looking for bargains. However, being cheap when it comes to your estate planning may cause huge problems when you die.  Modern family structures (second and third marriages, children with multiple spouses, etc..) have also added complexity to the drafting of estate plans.   A person should seek out the advice of a competent Florida Estate Planning attorney when having their estate plan drafted. 
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A FLORIDA TRUSTEES OBLIGATIONS TO TRUST BENEFICIARIES

♠ Posted by Marc J. Soss in ,,,,,,,,,
In the case of Bain v. McIntosh (U.S. Ct. App., 11th Cir., No. 14-13836, March 2, 2015) the U.S. Court of Appeals held that a Florida attorney, hired to represent a trustee does not owe a fiduciary duty to the trust beneficiaries. The beneficiaries of the Florida Trust sued the attorney for breach of fiduciary duty. The attorney argued he did not owe a duty to the beneficiaries because he was hired to represent the Florida Trustee. The trial court granted summary judgment to the attorney and the beneficiaries appealed.
The U.S. Court of Appeals for the Eleventh Circuit affirmed, holding that an attorney retained to represent a trustee does not owe a fiduciary duty to the trust beneficiaries. According to the court, Florida regulations and case law have not expanded a lawyer's fiduciaries duties to anyone other than the trustee.
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THE REASONABLENESS OF FLORIDA PROBATE LEGAL FEES

♠ Posted by Marc J. Soss in ,,,,,,
The Florida 2nd District Court of Appeals, in Faulkner v. Woodruff (Fla. Ct. App., 2nd Dist., No. 2D13-2165, March 6, 2015) recently held that a Florida Personal Representative may petition a probate court to review the reasonableness of attorneys' fees, and that the burden of proving attorneys' fees are reasonable is on the attorneys.
 
As personal representative of an estate, Gary Faulkner hired the Woodruff Law Firm to assist in administration. The estate was uncontested and consisted of $4,594.02 in personal property and a house that sold for $150,000. The attorneys charged $39,869.24 for work in the administrative proceeding. Mr. Faulkner filed a petition with the probate court to review the reasonableness of the attorneys' fees. The probate court dismissed the petition, holding that Mr. Faulkner was required to interplead himself because the burden of proving reasonableness of attorneys' fees was on him. Mr. Faulkner appealed.
 
The 2nd DCA reversed the Florida Probate Court and held that a Florida Personal Representative may petition the probate court to review the reasonableness of attorneys' fees. According to the court, as "the party seeking fees, [the attorneys] have the burden of proof to establish that their fees are reasonable."
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