Estate Planning
What is estate planning?
Estate planning is the process of arranging for the management and distribution of your assets after you pass away or become incapacitated. It involves creating legal documents such as wills, trusts, powers of attorney, and advance directives to ensure your wishes are carried out regarding your property, finances, and healthcare, and more, protecting your family and your legacy.
Why is estate planning important in Florida?
Estate planning in Florida is crucial for protecting your assets, providing for your family, minimizing estate taxes, and avoiding probate complications. Without a plan, Florida's intestacy laws determine asset distribution, which may not align with your preferences, and your family and beneficiaries will be required to undergo the probate process after your death, which can take thousands of dollars in legal fees and years to gain access to inheritance.
What are the essential estate planning documents in Florida?
Key documents include a last will and testament to outline asset distribution; a revocable living trust to manage and transfer assets while avoiding probate; a durable power of attorney for financial decisions during incapacity; a designation of health care surrogate for medical decisions; and a living will for end-of-life treatment preferences; guardianship documents for minor children; special needs trust documents for disabled loved ones, and often property deeds to go along with these core documents.
What is a will in Florida?
A will is a legal document that allows you to specify how your assets should be distributed after death, name an executor (personal representative), appoint guardians for minor children, and address other matters like trusts or funeral arrangements. It must be signed by the testator and witnesses to meet Florida requirements. A will does not avoid the probate process, but does make your wishes known and are legally recognized.
What is a trust in Florida?
A trust is a legal arrangement where a trustee holds and manages assets for beneficiaries according to specified terms. Common types include revocable living trusts (most common for general purposes) and irrevocable trusts (fixed, for tax advantages or asset protection). Trusts are a wonderful tool for avoiding the probate process and making distribution simple for your trustees, allowing you discretion and maintaining decision making throughout your lifetime if you so choose.
Do I need a trust in my Florida estate plan?
Not everyone needs a trust, but in most situations, it is preferable to have a trust based estate plan over a will based estate plan.
How often should I update my Florida estate plan?
Review your estate plan every three to five years or after major life events like marriage, divorce, birth of a child, death of a beneficiary, or other significant changes. We also offer maintenance memberships for those clients who would like to have a plan in place for regular consultations, included updates, and reduced costs for future services.
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Special Needs Planning
What does special needs planning entail in Florida?
It involves appointing guardians for decision-making after age 18, establishing and funding special needs trusts, applying for government benefits like Medicaid and SSI, naming beneficiaries for accounts, and arranging future care to ensure long-term support without disqualifying from aid. Typically Special Needs Planning looks at the individual as a whole, not just medical care or disability but planning for lifestyle, travel, care, expenses, etc. This type of planning gives your loved one the best possible level of care when you are not that care for
them yourself.
What is a special needs trust in Florida?
A special needs trust (SNT) manages assets for a person with disabilities without disqualifying them from public benefits like Medicaid or SSI. It supplements necessities by covering extras like transportation, education, recreation, medical costs, or assistive technology.There are three main types of Special Needs Trusts, First Party, Third Party, and Pooled Trusts. Your attorney can help you determine wihihc is more appropriate for you and your loved ones.
Who can establish a special needs trust?
Anyone can establish an SNT, which can be funded by a disabled individual (perhaps from a lawsuit settlement) or third parties such as parents, grandparents, siblings, or friends, can create a third-party SNT. It is important to note that those family members who may leave an inheritance should be notified of the necessity of a special needs trust or notified that one has been created. All too often a grandparent leaves an inheritance to a grandchild effectively disqualifying them from their government benefits which provide health insurance, therapies, food, housing, etc., simply because they didn't know that what they intended as a kindness was actually devastating.
When should a special needs trust be established?
Ideally early in estate planning to receive inheritances or gifts seamlessly. For first-party trusts, before the beneficiary turns 65. Advance setup ensures prompt fund transfers without interrupting benefits eligibility.
How can special needs trust funds be used?
Funds are for enhancing quality of life, such as home furnishings, uncovered medical care, therapy, education, transportation, vacations, or hobbies. Avoid direct payments for food, rent, or utilities to prevent reducing SSI benefits; pay vendors directly on behalf the disabled individual.
What is an ABLE account in Florida?
An ABLE (Achieving a Better Life Experience) account is a tax-advantaged savings account for individuals disabled before age 26, with an annual contribution limit of $18,000 (2024). It covers disability expenses like living costs, education, transportation, and technology without affecting SSI or Medicaid eligibility, and is a great asset in particular for parent care-givers.
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Probate
What is probate in Florida?
Probate is a court-supervised process to identify and gather a decedent's assets, pay debts and taxes, and distribute remaining assets to beneficiaries. Florida has formal, summary, and disposition without administration options based on the time since the individual has become deceased, the types and value of the assets. It is an involved process requiring multiple steps to satisfy statutory requirements which makes it even more taxing on modest estates.
What are probate assets in Florida?
Probate assets are those solely in the decedent's name without automatic succession, such as individual bank accounts, life insurance payable to the estate, or non-homestead real estate titled solely or as tenants in common. Jointly owned or beneficiary-designated assets avoid probate. An Enhanced Life Estate Deed or Lady Bird Deed can also be a useful probate avoidance tool in Florida for a primary residence.
Why is probate necessary in Florida?
It's required to transfer probate assets to beneficiaries, pay creditors, and resolve the decedent's affairs. Without it, title issues may arise, and intestacy laws apply if there's no will. This means that the state will not take your wishes or relationships into account while distributing your assets.
How long does probate take in Florida?
Simple estates without a federal estate tax return often close in 5-6 months, including a 3-month creditor period. Estates requiring a tax return (due 9 months after death, extendable) may take 12-15 months or longer if litigated. Contested Probate can go on for many years and be very expensive for all involved.
Who can serve as a personal representative in Florida?
A Florida resident, or a non-resident who is a close relative (spouse, parent, child, sibling) are most often utilized as personal representatives and executors. Banks or trust companies authorized in Florida qualify and can act in a fiduciary capacity. Felons, minors, or those mentally/physically are not able to act as Personal Representatives. Felons may be able to serve if they have had their rights restored by the courts.
How can probate be avoided in Florida?
Use revocable living trusts to hold assets, joint ownership with rights of survivorship, payable-on-death designations, or beneficiary clauses on accounts and policies. These transfer assets directly without court involvement. This is ideal for probate avoidance and can save time, money, and familial relationships.