Author: CSG Firm

Capacity to Make a Will or a Power of Attorney in Florida-Part 2

 A Power of Attorney is a powerful legal document or instrument which delegates in writing authority from one individual to another. The creator of the power of attorney, also known as the “Principal,” grants the right to act on their behalf to an “Agent.”  A Power of Attorney can be specifically prepared to expand or restrict delegated enumerated powers based on the wishes of the subject Principal. The benefit of having a Power of Attorney is that it can be used to avoid the need for a court supervised Guardianship should the Principal become incapacitated and no longer have the ability to manage their own financial affairs and property management as well as medical decisions.
   
One of the most common questions encountered is, “when does the Power of Attorney actually takes effect”?  In the past, Florida allowed for the execution of what was referred to as a “springing” Power of Attorney. The term springing refers to the fact that an Agent is only permitted to act upon the satisfaction of a condition. For example, a springing Power of Attorney could be conditioned to only become effective upon written confirmation that the Principal was incapacitated. This type had a notable feature in that it allowed individuals to give a Power of Attorney to a relative without having to worry about them accessing a bank account or transferring property while the Principal still maintained full capacity. Unfortunately, changes in Florida law resulted in the abolition of springing Powers of Attorney. Currently, when a person executes a Power of Attorney the Agent is immediately granted the power to act regardless of whether or not incapacity exists.

Consequently, since Agents have immediate authority to act, the Principal grant the power to only a person they trust completely! Further, discussions should be had with the prospective Agent so they understand the Principal’s wishes as to how their affairs should be handled or managed. Any additional questions should be directed to an experienced estate planning attorney.

Preparing a Durable Power of Attorney for financial matters and a Healthcare for medical decisions are part of a responsible estate plan.

Now, what is the level of capacity that is needed to create a Last Will & Testament?  The person making the Last Will & Testament (Last Will) must has sufficient capacity to comprehend:

  • the nature and extent of his or her property (i.e., what are the assets and their relative size);
  • his or her relationship to the persons who were, or should, be the natural objects of his or her estate; and
  • a general understanding of the effects/process of the Last Will.

Florida courts have said that the person making the Last Will must have sufficient active memory to collect in their mind, without prompting, the particulars or elements of the business to be transacted, and to hold details in their mind for a sufficient length of time to perceive at least their obvious relationships to each other, and be able to form some rational judgment regarding them. A testator/testatrix (maker of the Last Will) who has sufficient mental power to do the foregoing is, within the meaning and intent of the Statute of Wills, a person of sound mind and memory, and is competent to dispose of their estate by a Last Will.

The foregoing can also extend to a Revocable Living Trust. With the above test, a person must know what their assets are and the people to whom they would most likely want to leave those assets. And, just as important, the individual should understand the effects of their Last Will or Trust. Practically speaking, creating a Revocable Living Trust may be more complicated than creating a Last Will, so it may be argued that the capacity to create a Trust is a higher standard than that of creating a Last Will. 

Again, there are other legal standards of capacity. After testamentary capacity, there are generally three (3) other areas of capacity in the Estate Planning and Elder Law area:

Some Florida families become extremely concerned when their loved one is having health issues and may be at the end of their life. However, if a loved one dies without a Last Will, their assets will  go to their family under Florida state laws of Intestacy or next of kin.

If it is uncertain whether a person has capacity to create a Last Will, an experienced attorney may be needed to assist in documenting the individual’s capacity to make a Last Will. At times, a physician is used to write a letter or report as to capacity, if the attorney is still unsure.

Finally,  under section 732.501, Florida Statutes, “Any person who is of sound mind and who is either 18 or more years of age or an emancipated minor may make a will.” Further, a Power of Attorney can be signed in Florida any time someone has the required capacity, i.e., so long as the individual signing the Power of Attorney is over 18 years of age, understands the powers they are delegating, knows to whom they are entrusting the said powers and how delegating that power can affect the property or person subject to the Power of Attorney, they then have the capacity needed to sign the subject Power of Attorney.

Even when there are times when the same individual may not have the capacity as described herein,

there are times when a person can make their own decisions. These are referred to as “lucid moments.” During a lucid moment, as long as the person comprehends the powers they are delegating, to whom they are delegating them, and how delegating those powers can affect their property or person, they may be able to sign a Power of Attorney or a Last Will if they are capable of understanding the significance and effect of executing a Last Will and the extent of their property and to whom they are distributing their assets after death.

Pursuant to Florida case law, whether or not a maker or creator of a Last Will, Trust, Durable Power of Attorney or Healthcare was of sound mind or had the capacity is determined at the time the subject document or instrument was executed.

If you have any additional Questions regarding the foregoing or have any legal issue or concern, please contact the law firm of CASERTA & SPIRITI, in Miami Lakes, Florida.

DEATH & FIREARMS IN FLORIDA (A General Overview)

Florida has a growing number of lawful gun owners. These firearms may include antiques, rifles for hunting, and handguns for personal protection. While these owners may be careful to ensure they have the correct registration, license and storage during their lifetime, their firearms raise questions when they die. When acting as the Personal Representative (PR) for that person’s estate during probate administration, then it is up to the said PR to ensure these items are handled carefully and within the law.

The following is a general overview of the subject. Specific cases should be discussed with an Estate Planning Attorney experienced with the state & federal laws regarding firearms.

A Personal Representative (in some states-Executor) in charge of a decedent’s estate may not be able to simply give a beneficiary a firearm as stated in the deceased’s Last Will & Testament. There are situations in which the heir’s or beneficiary’s possession of the gun may be illegal, e.g., if they are a convicted felon. The same can be said for the Personal Representative’s (PR) possession of the firearms. The PR is not exempt from the law because they are acting on behalf of an estate. If the PR is not entitled to possess a gun, they should promptly contact an attorney about ensuring the firearms are stored in a lawful place during the probate process.

As a Personal Representative, carefully review the decedent’s estate planning documents, including whether they have a Gun Trust, and speak with a probate attorney experienced with Firearms law before doing anything with the decedent’s firearms. Numerous federal and state laws regulate the sale or transfer of firearms, making the gifting process complicated. If the PR transfers a gun improperly or to an unlawful owner, the said PR could violate the law. Also, if the decedent did not plan for how their guns were to be handled, the PR will need to know how to dispose of them.

If the weapon or an accessory is covered by the National firearms Act (NFA), then the PR must follow all federal rules regarding its transfer and ensure the proper taxes are paid on the transfer, if applicable. These are also known as Title II weapons and include machine guns, sawed-off shotguns, and other destructive devices like grenades. Common accessories like silencers are also regulated by the NFA.

All owners must properly register NFA weapons with the federal government. When an owner wishes to transfer a weapon to someone else, the transfer of registration must be approved. This scenario is true for a sale during the owner’s life or distributing it after death. As the PR, one will need to obtain the correct Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) form to ensure all rules are followed in applying for the transfer. One would also have to check the current status of the law to see if a chief law enforcement officer needs to sign off on an application to transfer registration.

This complicated procedure is why individuals often create Gun Trusts, which owns the firearms and enables multiple people to possess and use them. Additionally, firearms or guns held in trust can continue to be owned by the trust and possession can simply move to the beneficiary after the original possessor’s death. One would not have to go through the formal transfer procedure required by law or pay taxes on the transfer. If the decedent had a Gun Trust, contact an attorney experienced in this area about ensuring its proper administration and that the law is obeyed.

If the decedent owned a firearm not regulated by the NFA, then the transfer to a beneficiary will be easier. A PR should ensure that the beneficiary is at least 18 years old, has obtained any necessary license, and is not prohibited from owning firearms under the law. A PR should also ensure that the transfer is properly recorded. Florida does not require owners to register their firearms or obtain a license for certain handguns, rifles, or shotguns, therefore one may be able to transfer these to a beneficiary more easily.

The laws surrounding firearms are vast and complex.

A Florida Gun Trust is a revocable trust that owns certain firearms subject to federal regulation. The Gun Trust is an alternative to individual ownership of the firearm. All qualified Trustees may share the use and possession of the firearm. Privacy is achieved since the trust may add or remove Trustees who can use the firearm without public disclosure.

When using a Gun Trust, the firearm is owned by the trust itself, not an individual person. With a revocable gun trust, the names of the Trustees and beneficiaries can be changed during the grantor’s lifetime. A Gun Trust can also be called an NFA Trust, Class 3 Trust, Firearms Trust, or Title II Trust.

Generally, a Gun Trust allows multiple qualified users to share use of a Title II firearm. Gun trusts make it easier to avoid criminal liability in owning, sharing, and using a Title II gun; and upon the death or incapacity of the Trust grantor, a Florida Gun Trust allows private inheritance of the gun without probate or potential criminal liability.

The National Firearms Act (NFA) regulates the possession and use of firearms. Title I of the Act pertains to ordinary pistols, rifles, and revolvers. Most firearms in the U.S. are Title I firearms.

Florida law allows ownership of Title I firearms. The NFA does not require reporting the ownership or transfer of Title I firearms to the federal government.

Title II firearms include more advanced weapons, such as machine guns, silencers, suppressors, short barrel shotguns, and other destructive devices (Molotov cocktails, bazookas, etc.). Federal and state laws impose significant regulation of Title II firearms, and transferring these weapons requires filing documents with the government.

The federal government changed the rules for transferring Title II firearms in 2016. An individual transferring a Title II firearm must file an ATF Form 4 with the government and pay a $200 transfer fee. Form 4 includes a photograph of the applicant and FBI fingerprint cards. Notice of the application must be given to the chief law enforcement official (CLEO) in the county where the applicant resides.

Again, Title II firearms may not be owned by “prohibited persons.” A prohibited person includes any individual who has been convicted of a crime punishable by one year or longer, individuals diagnosed with a mental defect, an undocumented immigrant, a person convicted of domestic violence, or a person who uses marijuana (despite the legality of marijuana in a number of states). This rule applies to individuals and to Trustees of a Trust.

Federal law makes it illegal for anyone other than a registered owner who is not a prohibited person to have access to or possess a Title II firearm. Violation of the law does not require unauthorized use or possession, and mere dominion and control over the firearm by an unauthorized person is a felony. Violation of this rule is punishable by up to a 10-year prison term and $250,000 in fines.

Consequently, without a Gun Trust, an individual Title II gun owner who shares their firearm with a friend or family member who is not a registered owner of the firearm or who themselves are a prohibited person risks criminal prosecution.

It is important to note that it may not matter for criminal liability purposes if an unauthorized person did not intend to possess or use a Title II firearm.

A Florida Gun Trust may legally purchase and own a Title II firearm. An individual party to a Trust who has the authority to manage the Trust’s firearms is referred to under federal law as the “responsible person.” Typically, the Settlor or Grantor (creator of said Trust) and Trustees are the responsible persons. A Gun Trust provides quite a few benefits over individual ownership of Title II firearms as follows:

  • Sharing the Use of Firearms. Multiple individuals may not co-own or share a Title II weapon. Multiple Trustees of a Gun Trust, however, may share the same weapon if the Trustees are not prohibited persons. Title II firearms may be used by any qualified Trustee of a trust. A Grantor may add or remove Trustees over time. All Trustees must not be prohibited persons, and Trustees cannot transfer firearm possession out of the trust without complying with applicable state and federal regulations.
  • Avoiding Criminal Liability. In the case of individual firearm ownership, the mere access to the firearm by a friend or family member may be a felony. Including the same friends or family members in the trust avoids criminal liability traps.
  • Privacy. A Florida Gun Trust is a private document. The trusts are not registered with the state, and the general public cannot access the trust agreement online. Upon the death of the Trust Grantor, the Gun Trust will not be filed or recorded.
  • Control After Death or Incapacity. In the case of individual firearm ownership, the death of the registered owner may cause the firearm to be an asset in a public probate proceeding. Probate administration may result in the transfer of the Class II firearm to a minor, a prohibited person, or other unauthorized owner. Such transfer could result in government confiscation or a criminal violation of the NFA. On the other hand, if the Grantor of a Gun Trust is incapacitated or dies, the firearm remains a trust asset so that no transfer of title is required. Trust firearms are not involved in the decedent’s probate proceedings. The NFA does not consider the inheritance of a firearm by a trust beneficiary to be a regulated transfer. The successor beneficiaries of the trust do not have to file an ATF form, pay a transfer fee, or report to the local CLEO. The remaining Trustees, or beneficiaries added as Trustees after the Grantor’s death, may still legally use, and control the firearm.

While a Florida Gun Trust is also a revocable living trust, the Gun Trust has special provisions to comply with the NFA regulations. A properly drafted Gun Trust should include at least the following provisions:

  1. A Gun Trust should not leave firearms to just any individual. The Trust should leave weapons only to adult beneficiaries who may legally own the weapon in the beneficiary’s state of residence and who are not prohibited persons according to the NFA.
  2. The Trust document should define “prohibited persons” and ensure that successor or additional Trustees are not prohibited persons.
  3. The original Grantor and Trustee of the trust should consider that successors Trustees may not be knowledgeable about NFA rules. The Trust document should explain to a successor Trustee the guidelines for their exercise of discretion in the handling and conveyance of Title II Trust firearms.
  4. Arrangements should be made for termination of the Trust and the distribution to responsible and lawfully qualified successor beneficiaries.
  5. The power to amend or revoke the Trust must be restricted so that proposed amendments will not result in a violation of state or federal firearm laws.
  6. The Trust should explain the duties of the Trustee to repair and maintain firearms and give Trustees powers to store and use firearms.
  7. The Trust must include typical living trust provisions regarding property other than firearms, including cash, that the Settlor may contribute to the Trust or obtain from the sale of Trust firearms.
  8. Consider appointment of a Trust protector to, among other things, replace Trustees when appropriate, modify the Trust to comply with changing firearm laws, move the Trust to another jurisdiction, or resolve disputes among beneficiaries and Trustees without having to engage in formal mediation or litigation.

People cannot buy a firearm and then transfer the firearm to a Gun Trust without filing an ATF Form 4. The best practice is for the gun owner (the Trust Grantor/Settlor) to first create the Gun Trust Agreement. Next, the initial Trustee should open a Trust bank account, and the Grantor should contribute enough money to the Trust to purchase the firearm. Thereafter, the Trustee can purchase the firearm in the name of the said Trust.

The responsible person should then file an ATF Form 4 application. Each responsible person in the Trust Agreement (usually the Grantor and all Trustees) needs to complete his own ATF Form 23 as an individual.

A few internet websites sell allegedly standard Gun Trust forms cheaply. The customer merely fills in some blanks to generate forms to be submitted to the government. Saving money may not be the best choice when an innocent error or misunderstanding of website instructions could result in criminal liability and confiscation of the firearm.

As an example, a Gun Trust must comply with Florida Trust statutes. An online trust that does not meet all requirements of Florida Trust Law may be invalid. Some online trust forms do not limit possession of the trust’s firearms meaning that control and access may be inadvertently given to a prohibited person resulting in criminal liability. Also, the person using a standardized online form may pay for the firearm with his own personal funds rather than first opening a Trust checking account. This direct purchase would be improper and illegal.

Finally, the Florida Supreme Court has held that it is the unauthorized practice of law for a non-lawyer to draft a living trust. A Gun Trust is a specialized type of living trust. An internet site that drafts a Gun Trust for a Florida resident may be engaged in the unauthorized practice of law in Florida. If a Florida attorney sponsors it, then it may be a different story.

Florida law does not require Gun Trusts. However, without a Gun Trust, the use and access to Title II firearms are strictly regulated and restricted to the individual owner.

Finally, the National Firearms Act allows a Title II weapon to be owned by either an individual or another legal entity, including a Trust.

A Gun Trust may own any type of firearm, whether or not subject to NFA Title II rules. It may be recommended to have a separate Trust for Title II firearms so that a technical NFA violation causing a forfeiture would not affect Title I firearms, which may be owned individually or in a separate Trust.

 If you have any additional Questions regarding the foregoing or have any legal issue or concern, please contact the law firm of CASERTA & SPIRITI, in Miami Lakes, Florida.

Out of State Powers of Attorney Are Valid in Florida, But Can Still Be Problematic

A Power of Attorney which was validly created in another state is valid in the state of Florida. However, many out of state Powers of Attorney do not comply with Florida law. Individuals using these documents in Florida on a regular basis should have them updated by creating Florida compliant instruments. This article will explore why someone who moves to Florida should update an out of state Power of Attorney and provide some options if a third party or financial institution denies the out of state Power of Attorney as well.

The Power of Attorney is an extremely important and valuable document which allows a selected third party (or multiple third parties) to manage one’s property and financial affairs as well as make healthcare decisions. This third-party Agent can manage bank accounts, sell or buy property on the Principal’s behalf (i.e., the one who created the power of attorney and who authorized the Agent to act on his/her behalf), move around investments, decide how assets should be used for the Principal’s benefit, and make a number of important decisions about one’s finances or medical care.

Since the Power of Attorney is such an important document, it is highly scrutinized by financial institutions and other third parties. Financial institutions in Florida often deny out of state Powers of Attorney because they do not contain “super-powers,” or the Power of Attorneys are a few pages long and just grant extremely broad powers to the Agent listed in Power of Attorney.

The Florida Power of Attorney laws changed significantly in 2011. The most important change was that the new Florida Power of Attorney laws created what is known as the super-powers. These super-powers are powers that the state legislature considered so important that each super-power must be clearly expressed in the Power of Attorney and the Power of Attorney creator or Principal must place their initials next to the super-power provision or paragraph.

Even if a super-power is expressly stated in a Power of Attorney, but it is not initialed, then the Agent of the said Power of Attorney will not be able to perform that super-power on behalf of the subject Principal. This situation becomes extremely important when an individual no longer has capacity to update their Power of Attorney, then a Legal Guardianship (an expensive and time-consuming legal proceeding) must be started so that the Agent of the said Power of Attorney can perform that super-power.

The following is a brief list of some super-powers designated by the Florida Statutes that a person must sign or initial next to the applicable provision or paragraph for the Agent of the said Power of Attorney to exercise these powers:

  • Create an intervivos trust (also known as a living trust or a revocable trust).
  • Amend, modify, revoke, or terminate a trust.
  • Make a gift.
  • Create or change rights of survivorship.
  • Create or change a beneficiary designation.
  • Waive the Principal’s right to be a beneficiary of a joint and survivor annuity, including a survivor annuity, including a survivor benefit under a retirement plan.
  • Disclaim property and powers of appointment.

Consequently, what does all this mean and how does it affect a person’s life in Florida? It is rarely seen that an out of state Power of Attorney document which had these powers listed requires the creator or Principal to initial or sign next to each power. This would mean that if an Agent of the Power of Attorney had to create a trust on the Principal’s behalf here in Florida, the Agent under the said Power of Attorney would not be able to do so because the subject out of state Power of Attorney document does not have the Principal’s initial or signature next to the applicable provision authorizing the said trust power provision.

The following is an example of how an out of state Power of Attorney might complicate a person now residing in Florida: An individual’s parent is incapacitated and needs to be placed into a nursing home in Florida. The nursing home cost about $9,000 to $10,000 per month. The Agent hires an attorney to do Medicaid planning for the parent so that they can try to preserve all the parent’s remaining assets or life savings and not spend it down after a year in the nursing home.

The first thing to be requested is a copy of the parent’s Power of Attorney. Said parent most likely has a typical 4-5 page out of state Power of Attorney which was prepared

several years prior to the parent’s incapacity and move to Florida. Said parent is slightly over the income limit for Medicaid, and what is required to be created is a Qualified Income Trust so that the parent can qualify for Florida Medicaid.

Due to the out of state Power of Attorney not having the subject parent’s initials or signature next to the provision, paragraph, or power to create a trust, the attorney and family have to establish a legal Guardianship, which cost can average between $8,000 to $10,000 just to establish in order that the Agent can just set up the aforesaid trust and salvage the parent’s assets from the nursing home.

FURTHER, a third party can reject an out of state Power of Attorney in Florida within a “reasonable time.” This term customarily means four (4) business days for financial institutions or banks. The third party must provide a written statement explaining their basis or reasons for denying the Power of Attorney. A third party can also request an Affidavit from the Agent of the subject Power of Attorney stating that the Power of Attorney is still in effect.

If a third party or financial institution denies an out of state Power of Attorney in Florida, then the Agent of the Power of Attorney can sue the third party to force the third party to comply with, follow and/or accept the Power of Attorney. The third party can be liable for damages, including court costs and attorney’s fees, if the Agent for the subject Power of Attorney prevails in the lawsuit.

However, lawsuits cost a substantial sum of money and take considerable time. If an Agent under a Power of Attorney needs to act quickly (e.g., sell property or do Medicaid planning), then a lawsuit is not very practical. The best alternative is usually to have the creator or Principal of the Power of Attorney sign and execute a new Florida Durable Power of Attorney so that the Agent can act immediately. This option will only work if the creator or Principal of the Power of Attorney still has the legal capacity to sign and execute a new Florida Durable Power of Attorney.

If the creator or Principal of the Power of Attorney is no longer competent, then an experienced Florida Estate Planning or Elder Law attorney may have some success with the third party’s legal department or management team to try to convince them to accept the out of state Power of Attorney. This process can be more effective if the out of state Power of Attorney complies with Florida state law.

If you have any additional Questions regarding the foregoing or have any legal issue or concern, please contact the law firm of CASERTA & SPIRITI, in Miami Lakes, Florida.

Each Spouse should have their own Last Will & Testament

The basis for any good Estate Plan is a strong Last Will & Testament.Estate Planning is the process of creating a legally binding plan for what will happen to a person’s assets (i.e., personal & real property) usually known as one’s estate after a person passes away. While Estate Planning can take many forms, a Last Will & Testament or Last Will allows one to dictate how and to whom their estate and/or assets will be distributed after paying appropriate expenses in an organized and streamlined fashion.

In a marriage, many things are done together, i.e., bank accounts get combined or are joint, vacations and other activities are done together, etc. It is technically possible to do one’s Estate Planning together as well. In Florida, a married couple can create a “Mutual Will or Agreement” mirroring the exact same wishes to their own individual Last Wills. HOWEVER, this is not the best idea or way to do things.

Specifically, Florida does not recognize Joint Wills. As a result, a married couple must create two separate Last Wills. This situation limits a married couple’s ability to ensure that their spouse would not change or revoke their Last Will upon their death. Many married individuals fear that their spouse will alter their Last Will and Testament following the death of their spouse. In most Last Wills, married couples agree to transfer all their assets and property to the surviving spouse when they pass away. However, when one spouse dies, the other spouse can freely change the beneficiaries in their own Last Will or otherwise deviate from the agreed upon plan. Joint Wills are used to prevent the surviving spouse from altering their Last Will upon the death of the first spouse. Consequently, since Joint Wills are not valid in Florida, married couples can create a Mutual Will Agreement.

A Mutual Will Agreement (MWA) is different from a Joint Will. Unlike Joint Wills, an MWA is a valid and enforceable contract in Florida under Fla. Stat. § 732.701. Essentially, an MWA is a contract between two spouses that outlines the contents of their Last Wills. This agreement can also be used to prevent spouses from changing their own Last Wills upon the death of the spouse who dies first.

To be valid, a Mutual Will Agreement must be signed by both spouses in the presence of two witnesses. Married couples can benefit from entering into this agreement to eliminate the risk that the surviving spouse might change their Will upon the other spouse’s death.

In the absence of a Mutual Will Agreement preventing them from changing or revoking the Last Will, the Testator, who is the person who created the Last Will and Testament, has a right to amend or revoke their Last Will any time before their death.

As previously mentioned, an Estate Plan is something very personal to an individual. It is made to explain a person’s wishes for the future, so it should reflect the specific intent of that individual. While many things are shared in a marriage, a Last Will, especially as it relates to a person’s assets, their extended family, and personal belongings, should be tailored exclusively to said individual.

There are also logistical concerns to consider. If one spouse passes away before the other, which tends to be the case, the Last Will could becomelocked. The living spouse might be unable to make any changes to it for the rest of their lifetime. What is more, the distribution of assets would beginwhile one spouse was still alive, which can be awkward or emotionally difficult. This is one of the main reasons why every adult should have their own individual Last Will & Testament.

If a person has any children from an earlier relationship, that would be even a greater reason to create their own Last Will. Blended families should be protected with individualized and customized Estate Plans since they may not be recognized in probate court without one.

The parties may even go as far as to include a “non-mutual” clause in their own individual Last Will & Testament. If used, then the “non-mutual” clause should expressly state that the surviving spouse can change or revoke their own Last Will despite any interest received. This additional expression of intent will show that one’s specific wishes are their own and should not be copied onto or from their spouse’s. Married individuals can include the foregoing language in their respective Last Wills.

If you have additional questions or would like to discuss your legal issues, including Estate Planning, please contact an attorney with CASERTA & SPIRITI at your earliest convenience. As the old saying goes-there is no better time to start than the present! 

Assets which can Avoid Probate

When an estate is subject to probate, the entire process can get more difficult than expected. Heirs and beneficiaries can have disputes, and the process can become public, so people can minimize what assets are actually probated, if any.

Trusts can avoid probate but can also be problematic since they must be administered.

Certain steps can be taken to avoid probate through designation of beneficiaries or some type of joint ownership, which transfers ownership from a deceased party to the living through other means.

Bank accounts usually have two ways to avoid probate: joint ownership (by the entireties-Husband & Wife or with right of survivorship) or designated beneficiaries (or In Trust For, Transfer on Death, Payable on death, etc.). If a person owns a bank account jointly with another person when they pass away, the other person will assume ownership of the account. The same applies if a person owns account but has a beneficiary designation through their financial institution. The foregoing can often be referred to as “payable or transfer on death.” However, if an individual customer designates a beneficiary who is no longer able to assume ownership of the account due to either death or incapacity then the said account may be subject to probate or a legal guardianship.

The same rules of bank accounts apply to insurance policy benefits. Any applicable benefits of medical or life insurance policies will transfer without being subject to probate so long as beneficiaries have been properly designated.

Like bank accounts and insurance policies, an individual’s financial investment accounts can have a beneficiary designation as well.

Further, an important aspect of estate planning those individuals or clients need to understand is that accounts which have a beneficiary designation will generally supersede any language written in a Last Will & Testament. If a person has a beneficiary designation for an IRA through the account/institution itself, any bequest or distribution in one’s Will for the same account will be considered invalid.

The right to survivorship prevents a home (homestead or primary residence) and other properties from being subject to probate if there is a surviving spouse at the time the estate is executed. The previously mentioned means one’s home will remain in one’s spouse’s name without having to go through probate.

If property or assets do not specify the proper ownership language, then it is possible that the deceased party’s portion of the property may be subject to probate. In that case, a co-owner or spouse keeps their part or interest of the property, but the deceased’s portion may need to be probated and end up in the hands of another party.

If one’s spouse predeceases them and the survivor never remarries, then the entire property may be subject to probate unless it is transferred or distributed through a trust or other vehicle or designation.

As for real property, if a married couple wants to transfer the said real estate without need of probate to, for example, their children, the Remaindermen, a Lady bird deed may be the appropriate vehicle to convey the property after the death of the last spouse. A lady bird deed in Florida is a legal form that transfers property upon death inexpensively and without probate. A lady bird deed allows the current property owner to use and control the property during the owner’s lifetime, while the property automatically transfers upon death to designated beneficiaries/Remaindermen. The document or instrument is somewhat like a designation of beneficiary on real property.

It would merit speaking with an experienced estate planning attorney to review applicable documents to ensure a person takes advantage of these alternate methods of avoiding probate.

If you have any additional Questions regarding the foregoing or have any legal issue or concern, please contact the law firm of CASERTA & SPIRITI, in Miami Lakes, Florida.

General Steps to Establish Florida as Your Permanent State of Domicile or Residency-An Overview

A residence is a location where one may live part-time or full-time. A domicile is a person’s legal address, and it is located in the state where an individual pays taxes. In this sense, domicile is where a person plans to have their permanent home. It is the place they eventually intend to return to if they reside in another place for a brief time. A residence, on the other hand, is the place one temporarily lives.

Florida Statute §222.17 states that a person can show intent to maintain a Florida residence as a permanent home by filing a sworn Declaration of Domicile with the Clerk of the Courts. They can submit the form with all the requirements by mail or in person at their local County Courthouse or applicable government office.

Domicile generally refers to where one lives, i.e., their residence that they intend to keep for the foreseeable future. The stated domicile has legal consequences for tax, probate, asset protection, and numerous other purposes.

Domicile is the state where a person has his or her true and permanent home. For military members, it is the place to which the member intends to return at the conclusion of his or her military service. It is the place that they consider their permanent home. Depending on their service, and local policies, an active-duty military member can change their legal residence by visiting their local base legal office and/or base finance office and completing a DD Form 2058, State of Legal Residence Certificate.

In order to establish Florida residency, one needs to formally establish permanent residency or domicile in Florida. Just having a Florida address is often insufficient, especially if a person still owns real estate in another state. Fortunately, becoming a bona fide Floridian only requires a few straightforward steps as follows: Apply for a Florida Driver’s License; Register Vehicles in Florida; File a Declaration of Domicile; Register to Vote in Florida; File a Homestead Declaration; Obtain Florida Employment; Enroll children in Florida Schools; Get Involved in the Local Community; Move and/or Start a Florida Business and possibly Update one’s Estate Planning Documents.

Further, if an individual owns homes in more than one state and wants to make Florida primary, using one’s Florida address for bank accounts and insurance policies, among others, helps establish Florida domicile. Transferring one’s banking to Florida-based financial institutions can also serve as evidence, as well as updating newspaper or magazine subscriptions to a Florida address.

Finally, remember to update an estate plan to Florida specific documents. For those who have a trust, this may involve having a Florida amended and restated trust prepared.  For others, having a Florida Last Will & Testament prepared, as well as a Florida Durable Power of Attorney(for financial matters) and Florida Healthcare documents(for medical purposes and decisions) may suffice.

An Important Note:  There are differences in how a legal state of residency is determined for various purposes. For example, Florida courts often determine legal residency for asset protection purposes based upon Florida Statute Sec 222.17.  However, the rules for bankruptcy are quite different, and if this is a person’s situation or concern, consultation with a bankruptcy attorney will be critical.

For tax purposes, generally, one would need to establish that they are living in Florida for a total aggregate period of at least 6 months of the year. For people migrating to Florida, it is always recommended consulting with a tax professional in their former home state to assure a smooth and effective transition. For all other purposes, there is no waiting period for becoming a Florida resident.

Choosing a legal state of domicile can be an especially crucial decision for individuals who spend most of their time traveling the country by Recreational Vehicle. Expectedly, Florida is one of the most popular selections due to the low taxes, competitive insurance rates, and relative ease of maintaining driver’s licenses and vehicle registrations.

Along with the subjects encountered by new and part-year residents discussed above, “RVers” also need to establish a genuine Florida address where they can receive mail. A Post Office (P.O.) box will not suffice for residency purposes, but there are commercial mail-service companies that allow you to maintain a physical address in Florida. Receiving important mail at that address lets one demonstrate sufficient residency to register vehicles and obtain a driver’s license. Interestingly, though, if you are a full-time RVer, the license plate number on your Florida-registered RV (not the mail-service address) will serve as the “address” on your driver’s license. That means updating the vehicle’s registration needs to come first.

Again, there are very real advantages to becoming a legal resident of Florida. As already mentioned, Florida is well-known for its low-tax, business-friendly legal and regulatory environment. And, if estate planning is on one’s mind, they will be hard pressed to find a state with stronger asset-protection laws. In fact, Florida homestead and other home ownership laws provide asset protection, securing a primary residence from creditors’ attachment and steep property tax increases. Consequently, applying for a homestead exemption is another effective way to show one’s intent to make Florida their permanent legal home.

If an individual or family owns a Florida home that serves as their primary residence, they can claim a homestead exemption by filing an application with the county Property Appraiser of the county where the home is located. The exemption lets one exempt up to $50,000 of the home’s value from property tax calculations. Even if the property’s value increases dramatically, a person will not get impacted by big tax increases since Florida’s Save Our Homes Amendment limits yearly increases in assessed value to either three percent or the CPI-measured rate of inflation (whichever is lower).

Therefore, if an individual spends time at homes in two different states, considering Florida “primary” allows an individual to save on income and property taxes and protect their home’s value. Accordingly, the act of applying for a Florida homestead exemption serves as further evidence of one’s intent to treat Florida as their permanent state of domicile. All the foregoing allows an individual to ultimately take advantage of the many benefits of establishing Florida permanent residency or domicile.

If there are any additional QUESTIONS regarding the foregoing matters, or you would like to discuss your legal concerns or issues, please contact, or call the Attorneys at CASERTA & SPIRITI in Miami Lakes, Florida at Tel. # (305) 463-8808.

JULY 4TH – A Little Law & A Little History

The Fourth of July has not always been a holiday. Independence Day celebrations did not become commonplace until after the War of 1812. July 4th did not become a federal holiday until 1870. Each year, Americans observe the nation’s birthday on the 4th of July, i.e., Independence Day.

The Fourth of July celebrates the passage of the Declaration of Independence by the Second Continental Congress on July 4, 1776. The Declaration announced the political separation of the thirteen (13) North American colonies from the Kingdom of Great Britain.

Although Independence Day has been celebrated for most of the nation’s history, it did not become an official holiday until 1870.

In 1938, the U. S. Congress passed a law that guaranteed paid time off for holidays, including Independence Day. It would be equivalent to the pay of a regular working day. Federal holidays in the United States are calendar dates that are designated by the U.S. government as holidays. On U.S. federal holidays, non-essential federal government offices are closed, and federal government employees are paid for the particular holiday. There are a total of eleven (11) federal holidays.

Foundingfather and President John Adams refused to celebrate July 4th as Independence Day. The nation recognizes July 4 as the date to celebrate since the Declaration of Independence was adopted on that date. However, the actual vote for independence occurred on July 2, 1776.

In the United Kingdom and some other countries, the Revolutionary War is called the American War of Independence.

The tradition of fireworks on the 4th of July came from the 1777 celebration in Philadelphia, Pennsylvania. A ship fired a 13-gun salute to honor the thirteen (13) colonies, and the Sons of Liberty set off fireworks over Boston Common.

Every 4th of July, the Liberty Bell in Philadelphia is tapped, and not actually rung, thirteen (13) times in honor of the original colonies. The White House did not hold their first 4th of July party until 1801. The stars on the original American flag were in a circle wherein all the Colonies would appear equal.

The Declaration of Independence, which officially broke all political ties between the American colonies and Great Britain, set forth the ideas and principles behind a just and fair government, and the Constitution outlined how this government would function. The Constitution was written and signed in 1787. Thereafter, in 1789, the first Congress of the United States adopted ten (10) amendments to the U.S. Constitution, i.e., the Bill of Rights and sent them to the states for ratification.

Unlike the other founding documents, the Declaration of Independence is not legally binding, but it is powerful, nonetheless. President Abraham Lincoln called it “a rebuke and a stumbling-block to tyranny and oppression.” History and media show that it continues to inspire people around the world to fight for freedom and equality.

According to historical accounts, the Second Continental Congress, assembled in Philadelphia, formally adopted Richard Henry Lee’s resolution for independence from Great Britain. The vote was unanimous, with only New York abstaining. The colony of New York never voted on the issue of independence, or any other issue, for that matter. The reason for this: the state of New York never sent its delegation any explicit instructions of what to do. Without any instructions, its delegate Morris was forced to abstain from voting.

Thomas Jefferson wrote the Declaration of Independence, but that is not his handwriting on the vellum page above John Hancock’s signature and fifty-five others. The neat, elegant script of the Declaration belongs to Timothy Matlack, a brewer and beer bottler from Pennsylvania.

“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.”

An inalienable right, said Richard Foltin of the Freedom Forum Institute, is “a right that can’t be restrained or repealed by human laws.” Sometimes called natural rights, inalienable rights “flow from our nature as free people.”

It also posited that all men are created equal and that individuals have a civic duty to defend these rights for themselves and others.

Again, on July 4th, the Continental Congress formally adopted the Declaration of Independence, which had been written primarily by Jefferson. Although the vote for actual independence took place on July 2nd, from then on, the fourth (4th) became the day that was celebrated as the birth of American independence.

On August 2, 1776, roughly a month after the Continental Congress approved the Declaration of Independence, an “engrossed” version was signed at the Pennsylvania State House (now Independence Hall) in Philadelphia by most of the congressional delegates (engrossing is rendering an official document in a large clear hand). Not all the delegates were present on August 2. Eventually, fifty-six of them signed the document. Two (2) delegates, John Dickinson and Robert R. Livingston, never signed. Only John Hancock actually signed the Declaration of Independence on July 4, 1776.

Since 1952, the original parchment document of the Declaration of Independence has resided in the National Archives exhibition hall in Washington, D.C., along with the Constitution and the Bill of Rights. Before then it had a number of homes and protectors, including the State Department and the Library of Congress. For a portion of World War II it was kept in the Bullion Depository at Fort Knox, Kentucky.

It must be noted that there is a visible message on the back of the document, which reads, “Original Declaration of Independence dated 4th July 1776.” 

To safeguard the original record copies of the Declaration of Independence, the U.S. Constitution and the Bill of Rights, the National Archives decided to ban all photography in the Rotunda, where the historical documents are displayed.

This Declaration has also inspired revolutionary movements outside the United States. It encouraged Antonio de Nariño and Francisco de Miranda to strive toward overthrowing the Spanish empire in South America, and it was quoted by the marquis de Mirabeau during the French Revolution.

Ultimately, the Declaration of Independence endures as a great historical landmark in that it contained the first formal assertion by a people of their right to a government of their own choice.

If you have any questions about the forgoing article, or have any legal questions or concerns, please contact the attorneys at the law firm of CASERTA & SPIRITI in Miami Lakes, Florida.

Turning 18 and the Law

Historically, the age of majority (becoming an adult) was set at twenty-one (21) in most states. However, after the 1971 ratification of the 26th Amendment to the U.S. Constitution giving eighteen (18) year olds the right to vote in federal elections, most states, and later all states, lowered their age of majority to eighteen (18) – (FC § 6502; 52 USC § 10701).

At age eighteen (18), a person has reached an important milestone. They are now adults in the eyes of the law. An individual can rent their own apartment, take charge of their finances and even buy a car on their own, all without a parent’s consent or assistance. Said newly minted adult can now enter into legal contracts and vote in elections.

When a child turns eighteen, he or she legally becomes an adult, and as the parent of that adult, the parent no longer has authority over that child’s medical, financial, or educational information.

The truth is, no matter how old the child, a parent still has the right to make and enforce the rules of their own home. An eighteen year old must follow the rules just as much as their much younger sibling. Of course, as children get older and mature, they can earn more privileges and have more responsibilities.

In addition to the emotional aspects, both parent and adult child will come face to face with certain legal realities. Specifically, the rights as a parent diminish when their child turns eighteen, including the right to know anything about their finances, medical condition, or even school records. Durable Powers of Attorney (both medical and financial) executed by the said “child” can provide authorization for the parent to access accounts, records and make decisions if the child becomes disabled or incapacitated.

For example, when a child turns eighteen, the funds in their account become available but only to the said adult child and parents will be unable to access the money without a Power of Attorney. Parents may overlook the basic documents needed to ensure their continued involvement in their children’s affairs after their child turns eighteen. Further, if a medical issue arises, parents can be involved in the decision-making process with these documents (i.e., Healthcare). A streamlined way to get the subject documents needed with the least amount of aggravation and at a reasonable cost is to consult with an attorney ahead of time versus needing a time-consuming and expensive legal proceeding called a Guardianship after the fact.

Turning eighteen is a significant highlight as one’s child steps into his or her adulthood. The 18th birthday milestone carries many great privileges as well as serious legal responsibilities and potential consequences. When a child turns eighteen, they will become an adult in the eyes of the law. Said child will gain all the rights and responsibilities of an adult, except for the legal consumption of alcohol. Once eighteen, said child will have the right to be independent from the control of their parents, and parents no longer have to support them. A significant difference in one’s child turning eighteen is that said child will no longer be entitled to the protection of the juvenile court system. At age 18, the “adult” child will be criminally charged as an adult for even minor offenses. Parents are no longer required to accompany their children as well. Often, parents do not know their child has been charged and are left out of the decision-making process. Once the child turns eighteen, or goes away for college, discuss with children about their legal rights and what to do if they need legal assistance.

A child’s age may have caught up with their attitude that they are independent adults, and then parents may wonder what obligations they still have regarding their children now that they are eighteen. The answer, according to the law, is zero! They are essentially on their own.

Again, the milestone also carries severe legal implications for the parents as well. Unless one’s child formally agrees, certain information will be withheld from parents. Examples are banking and credit information, grades, and medical records. Parents’ access to medical information about their now adult child will be limited by HIPAA privacy rules, irrespective of the said child still being on their family’s medical insurance policy. Also, if the now adult child has his or her own bank account and the parent’s name is not on the account, the parent will no longer be able to access the account or bank information, even in emergencies. Said child will not need their parent’s consent or formal driver’s training to obtain their driver’s license. They will be personally responsible for their own driving tickets and accidents, as well as the mandatory obligation to have proof of auto insurance.

A child can get married, decide their own medical treatment, make a Last Will & Testament, vote in elections, sue and/or be sued, and enter into their own contracts such as getting a loan, buying a car, or renting an apartment. If entering into an apartment contract, remind the son or daughter that it is advisable to purchase renter’s insurance to cover their possessions and any liability on the premises. Let a child know that if they do not pay their rent on time, the landlord can give them three days’ (3) notice or other applicable notices before seeking a court to evict them. Also, share with them that landlords must provide “fit and habitable” living conditions and to reach out to a local building inspector if the landlord allows conditions to become unbearable, and they cannot live in the apartment. Explain to adult children that, although written contracts protect against dishonesty and poor memory, they should be careful to review the entire contract, since the language may be confusing and favor the other party. Remind adult children not to sign a contract until they are sure they understand it. If they do not keep their part of the bargain, they can get sued. An adult son or daughter can also get sued for not paying their credit card charges. Make sure they understand the interest rates, payment amount, due dates, and service charges before signing loan papers. Turning eighteen means an adult child is also responsible for serving on a jury if called, paying taxes on any earnings, facing any lawsuits or criminal charges as an adult, and if they are a male, registering for the military draft.

While an adult child is attending college, it is important to remind them of possible legal consequences for their behavior. An individual may be considered “disturbing the peace” if engaged in rowdy behavior, fighting, playing loud music, or creating unreasonably loud noise. Also keep in mind, hazing is any method of initiation into a fraternity, sorority or other student organization which is likely to cause physical harm or personal degradation. It is a crime punishable up to a substantial monetary fine and possible jail time. Remind them that even on a college campus where other underaged adults might be doing it, it is a crime to alter any driver’s license or use someone else’s in any way for identification, including buying alcohol or trying to enter a bar. If one’s child is convicted of any drug or alcohol related offense and is under twenty-one (21) years of age, his or her license can be suspended for a period of time, in addition to any monetary or other penalty imposed for the conviction.

In summary, keep the lines of communication open with children. Even though a child may be legally an “adult”, he or she can still need and get guidance from their parents. If the reader has any questions about this article or has any legal issues or concerns, please contact the law office of CASERTA & SPIRITI at 305-463-8808(o) or email at info@csgfirm.com

FATHER’S DAY-A Little Law & A Little History

Father’s Day, in the United States, is a holiday which now is celebrated on third Sunday in June to honor fathers. Credit for originating the holiday is customarily given to Sonora Smart Dodd of Spokane, Washington, whose father, a Civil War veteran, raised her and her five siblings after their mother died in childbirth.

Even though some form of a Father’s Day has been around for decades, it did not become a nationally recognized holiday in the United States until 1972, when President Richard Nixon signed Joint Resolution 187 into law.

The day recognizes the role of fathers in the family, which is an ancient tradition. Historians have mentioned a Southern European tradition dating back to 1508.

Father’s Day which is celebrated the third Sunday of June, usually falls on a day in which the ancient pagans honored their most powerful god, the Sun.

The first known Father’s Day service occurred in Fairmont, West Virginia, on July 5, 1908, after hundreds of men died in the worst mining accident in U.S. history.

Grace Golden Clayton, the daughter of a dedicated minister, proposed a service to honor all fathers, especially those who had died in the tragic event. However, the observance did not become an annual event, and it was not promoted. In fact, very few people outside of the local area knew about it.

In 1909, Sonora Smart Dodd of Spokane, Washington, was inspired by Anna Jarvis and her effort to promote Mother’s Day. Her father, William Jackson Smart, a farmer, and Civil War veteran, was also a single parent who raised Sonora and her five brothers alone, after his wife Ellen died giving birth to their youngest child in 1898. While attending a Mother’s Day church service in 1909, Ms. Dodd, then envisioned the idea for a day to honor fathers.

Within a few months, Ms. Dodd had convinced the Spokane Ministerial Association and the YMCA to set aside a Sunday in June to celebrate fathers. Religious leaders and the local YMCA signed a petition started by Dodd to create a day honoring fathers. Finally, on June 19, 1910, Spokane’s mayor and Washington state’s governor signed proclamations to celebrate the first Father’s Day.

On that day, the first Father’s Day events began. Ms. Dodd delivered presents to handicapped fathers, boys from the YMCA decorated their lapels with fresh-cut roses (red for living fathers, white for the deceased), and the city’s priests, pastors and ministers devoted their homilies to fatherhood.

The widely publicized events in Spokane struck a chord which reached Washington, D.C., and the celebration placed the idea on the path to becoming a national holiday. However, the holiday did not take root immediately perhaps due to its perceived parallels with Mother’s Day.

In 1916, President Woodrow Wilson and his family personally observed the day. Eight years later, President Calvin Coolidge signed a resolution in favor of Father’s Day “to establish more intimate relations between fathers and their children and to impress upon fathers the full measure of their obligations.”  During the Great Depression, with so many people pinching their pennies, the economy needed reasons for people to spend their limited funds. Father’s Day was promoted by struggling stores and businesses as an occasion to get fathers some of the necessities, such as clothing and other material goods they needed that dad would probably not buy for himself. Later, during World War II, men were on the front lines fighting to defend their country. The desire to support American troops and the war effort provided another reason to support and show appreciation for dads. Thereafter, in 1966, President Lyndon Johnson signed an executive order declaring that the holiday be celebrated on the third Sunday in June. Ultimately, under President Richard Nixon, in 1972, Congress passed an act officially making Father’s Day a national holiday. Six years later, Sonora Dodd died at age 96 having realized her dream of honoring all fathers in the United States.  If you have any questions about the forgoing article, or have any legal questions or concerns, please contact the attorneys at the law firm of CASERTA & SPIRITI in Miami Lakes, Florida.

FLORIDA BANKS & DURABLE POWERS OF ATTORNEY

The Florida legislature revamped its Florida’s Power of Attorney law, which became effective on October 1, 2011, and imposed many new requirements. A Power of Attorney is a document in which a person (the “Principal”) designates another individual to act on that Principal’s behalf (the “Agent”). Florida law provides the option to create a “Durable” Power of Attorney, which is still effective even if the said Principal becomes incapacitated, thereby reducing the potential need for a court-appointed legal Guardian.

Florida statute 709.2120(5) states that a bank, or business, cannot unreasonably reject a Power of Attorney. An Agent looking to enforce a Power of Attorney against a bank, which has unreasonably rejected the Power of Attorney, can be awarded costs and attorney’s fees for legal action taken to confirm the document’s validity. A bank which rejects a Power of Attorney does so at its own peril.

A bank must accept or reject a Power of Attorney within four (4) days (excluding weekends and legal holidays). Additionally, the bank may not require that their own Power of Attorney form be used if the one presented to them is valid and has proper authority or provisions for the Agent to conduct banking transactions.

A bank may reject a Power of Attorney if it is not correctly executed. A Power of Attorney is properly executed if signed by the Principal in the presence of two (2) Witnesses before a Notary Public under Florida Statute Section 709.21405. Furthermore, Section 709.2106(5), shows that copies are just as effective as the original Power of Attorney document. Therefore, a bank should NOT require an original document.

Generally, a regular Power of Attorney becomes invalid once the Principal becomes incapacitated. Florida Statute section 709.2104 allows a Power of Attorney to be durable (remain effective if the Principal becomes incapacitated) if it says: “This durable power of attorney is not terminated by subsequent incapacity of the principal except as provided in chapter 709, Florida Statutes”.

If a bank rejects a Power of Attorney because it was not properly executed or it is not durable and the principal lacks capacity, then the said bank or institution has a valid reason to do so.

However, the following actions can be initiated if the subject document is properly executed and has the required durable language, but the bank still refuses to honor it.

Florida Statute 709.2119 and 709.2120 allows actions a bank may take to ensure a Power of Attorney is valid and reliable. It also outlines the consequences for failure to accept and honor a valid Power of Attorney.

Since banks have a responsibility to protect people’s (its customer’s) finances, they may question a Power of Attorney.

Banks, which are presented with a Power f Attorney for the first time, may exercise great caution in reviewing said document for authenticity, and to ensure said instrument was not later revoked by the Principal or one who signed it. While the banks are protected from liability in the state of Florida if the Power of Attorney appears in all respects to be valid, the bank may be compelled to replace stolen funds when it accepted an obviously revoked or fraudulent instrument. With this protection from liability, Florida law requires banks to honor a Power of Attorney presented to it.

Should a Florida bank nevertheless refuse to honor a Power of Attorney, the bank, again, has only four (4) days to provide a written reason for the rejection. Florida banks may legally reject Powers of Attorney on several bases, including, a belief that an elderly person is being subjected to physical or financial abuse by the Agent presenting the Power of Attorney, the bank has requested a lawyer’s opinion or Affidavit from the Agent, but not received one, the bank is aware that the said Agent has had their authority revoked, or the bank believes in good faith that the Power of Attorney is not valid or does not grant, by it’s terms or provisions, the authority that the said Agent is attempting to exercise.

If a bank denies a Power of Attorney, they must state the reason or reasons in writing and provide that to the Agent. The bank also has the right to request an opinion of counsel from the Agent upon providing a written explanation of the reason for the request. The bank may also require the Agent to provide an Affidavit explaining that the Principal has not died, revoked, or suspended the subject Power of Attorney.

If the readers have any questions or concerns regarding the foregoing topic, please contact the Elder Law Dept. of CASERTA & SPIRITI. Our attorneys are experienced in dealing with Florida banks regarding Powers of Attorney. We can send an inquiry to the bank’s legal department to ensure a proper legal basis is provided in writing for rejection or advocate on the Agent’s behalf to ensure the bank accepts the subject Power of Attorney.