Category: Protecting

Preparing Young Adults for the Reality of Life, i.e., from a Legal Perspective

Posted by CSG Firm on

It is a rite of passage for both parents and their children when children turn eighteen (18). All must learn how to prepare these young individuals for their new legal obligations as adult residents of the state of Florida.

As a child approaches eighteen, preparing them for the responsibilities of adulthood often is a top priority. While the transition from child to young adult does not have to be overwhelming, the said individual might need a basic understanding of their rights and privileges. As a parent or guardian, a Florida resident may instruct their child how to enter into a contract, file taxes, and tackle other responsibilities. The learning process takes a while, so consider easing the child into this new phase of life so they can become more confident in their knowledge, understanding, and abilities. This article will briefly outline some of the rights and responsibilities of 18-year-olds and estate planning, moving out of the home, healthcare, taxation, and other legal issues facing young adults.

Although a sizeable number of parents continue to support young adults for what appears a long time, an 18-year-old has the right to move out on their own and take care of all their own needs. This new freedom includes responsibilities such as managing finances, medical insurance, housing needs, and food. They now have the right to vote, and they might be drafted into the military. Also, the newly minted young adult does not have the same legal protections they did as a child and would be treated as an adult if they commit a crime.

Communication throughout a child’s teenage years is always helpful when preparing them for adulthood. It is a beneficial idea to explain to a young adult that any contract they sign is binding, and they can get into legal trouble if they do not adhere to the contract’s terms. This includes signing for a new credit card, cell phone, or apartment, among others.

It is easy for young adults to become overwhelmed with their new responsibilities. Although they are not required to learn everything overnight, modeling responsible adult behavior and practicing with various contract types is never a bad idea.

Housing and Rental Agreements

Even if a young adult is not moving out for a period, discussing roommate arrangements or Cohabitation Agreements can be beneficial. As a teaching tool, a Florida parent might have their young adult sign a Cohabitation Agreement with them so they can better understand the responsibilities they could face once they move out of their parents’ house and in with someone else. Roommate Agreements and Pre-Rental Inspection Checklists are also forms they may encounter during the moving-out process. If they already have moved out to an apartment, for instance, they may need to learn how to file a Complaint to Landlord form.

Transportation and Work

Purchasing a used automobile may be something they will need to do as they mature. Take time to explain the challenges, risks, and legal implications of purchasing a used motor vehicle and provide tips, advice, and tools they can use when it comes to evaluating any potential used auto, they may consider buying. In addition, if a young adult is working, it is a good idea that they know the difference between being an employee and an independent contractor and how income taxes are filed in each of these situations or categories.

Preparing young adults for the business world means something different for everyone. For the young adults who plan to continue their education or become a part of the workforce, parents can discuss with them what employers might find valuable.

For young entrepreneurs, learning about the business world may require going to school, getting firsthand experience, or both. If a young entrepreneur is eager to get started early, a parent may wish to look over their network to see if they can make an introduction to someone who works in the industry they want to enter. If a young entrepreneur has it all planned out, they may just need access to the right legal and business services to get their start.

Estate Planning

Once a child is eighteen, they may consider creating or modifying a Living Will or a Last Will & Testament. What is more, a parent may wish to discuss the importance of having another adult in their life whom they trust to watch over their medical care and bank accounts should they become hurt or ill. It is likely that a young adult still wants their parents involved in their medical care, especially in the event of an emergency.

If an adult child does not have a significant other, they might wish to appoint someone who can manage decisions for them if they are incapacitated. The following documents can make it easier for a parent to provide that protection and guidance:

  • HIPPA Authorization Form: This allows a young adult’s treatment providers to discuss medical issues.
  • Durable Power of Attorney: Appoints someone to look after their finances if they cannot do it themselves.
  • Medical Power of Attorney: Allows an adult child to appoint an individual who can speak with doctors on their behalf. This instrument could be considered a vital document for parents of young adults, especially if they still live at home.
  • Advanced Directives: Outlines what a young adult wants to happen if they are terminally ill and unable to speak on their own behalf.

A Florida parent may want to consider a FERPA release, which is the Family Educational Rights and Privacy Act, allowing the parent and their child, who is now a young adult, protection against what educational information is released. A FERPA release helps to protect certain educational information and can allow the parent to communicate with their young adult’s school. Most colleges and universities offer FERPA release forms to students who want to sign one.

Speaking with one’s adult child about their estate plan in simple terms is vital. They should know the locations of the Last Will & Testament and the Advanced Directives or Durable Power of Attorney forms. A parent does not have to share their entire estate plan the day their child becomes an adult, but one might consider informing them about where the paperwork is kept.

It may be beneficial to discuss with one’s child about their personal Advanced Directives and Durable Power of Attorney choices when they work with them on their own forms. A parent could share the name of the attorney holding their will, as well as their phone number. It is advisable to inform the young adult about the personal representative or executor named in the Last Will and who they should contact if something happens to the parent.

Florida residents can always reach out to an experienced attorney for affordable legal advice about the different documents they and their child or children might consider setting up as their child turns eighteen.

The foregoing contains general legal information and does not contain legal advice. The law is complex and changes often. For proper legal advice regarding one’s own circumstances, please contact an experienced lawyer.

The foregoing is a brief and general overview of the topic.

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.

Cryptocurrency & Other Digital Assets in a Florida Estate Plan & Probate – Part 2

Posted by CSG Firm on

Cryptocurrency is defined by Investopedia as a “tradeable and fungible token representing an underlying asset.” Generally speaking, cryptocurrency is a digital asset. It could be thought of as a form of “digital money” or “digital gold,” depending on one’s perspective. It can also be quite valuable. Each Bitcoin is worth more than $69,000 (June 2024), and there are many thousands of other cryptocurrencies. Unlike traditional currencies issued by governments, cryptocurrencies operate on decentralized networks based on blockchain technology. The blockchain is a distributed ledger that records all transactions across a network of computers. However, there is no central authority, such as a government or bank, that controls cryptocurrency.

For the purposes of federal securities law and investment regulations, the Securities and Exchange Commission (SEC) classifies cryptocurrency as a commodity.

When a person passes away in Florida, the probate process is used to determine who will inherit their property and assets. Cryptocurrency, like other property, will go through probate if other estate planning considerations are not made. As explained by the Internal Revenue Service (IRS), “for federal tax purposes, digital assets are treated as property.” Probate law is similar in that Cryptocurrency and other digital assets are considered to be a form of property. If a person utilizes their Last Will to transfer cryptocurrency to an heir or beneficiary, that can be distributed after probate is completed. If there is no LAST Will as well as no other viable estate planning considerations, then that person is intestate. Their cryptocurrency and other digital assets, including assets such as non-fungible tokens (NFTs) will consequently pass to their closest heir (next of kin) as determined by Florida state law.

A trust is an estate planning tool that can be employed to ensure that assets are passed to an heir or beneficiary outside of probate. There are many potential advantages associated with using trusts. One can place cryptocurrency in a trust. A trust can be described as a legal arrangement that allows a trustee to hold and manage assets on behalf of beneficiaries. It is a method that provides privacy, avoids probate, and can provide clear instructions for managing the assets. By transferring cryptocurrency into a trust, a person can assist in ensuring that it is handled according to their desires.

Cryptocurrency is property. The SEC classifies it as a commodity. In that sense, a person’s cryptocurrency holdings are considered to be similar to their holdings in other commodities, such as gold or silver. For purposes of probate law, there is no legal distinction between cryptocurrency and other tradeable digital assets and other property.

While cryptocurrency and other digital assets like NFTs are not treated differently under the law, there are major practical differences which need to be considered when navigating the probate process. If a person does not have a proactive plan in place for their cryptocurrency, for example, there could be serious issues. Here are three key practical differences:

  1. Location: Unlike traditional assets, cryptocurrencies can be exceedingly difficult to locate. They exist entirely in the digital realm and are not connected to physical entities such as banks or tangible assets. If the deceased party did not provide clear records, identifying their cryptocurrency holdings can be a challenging task. Cryptocurrencies are stored in digital wallets which are accessed through private keys. Without knowledge of these wallets or the keys, it is difficult to locate these items.
  2. Access: Access is another major area of concern. Even if the existence of a cryptocurrency is known, accessing it can be almost impossible without the right cryptographic keys. Unlike bank accounts or physical safes, there is no “master key” or central authority that can provide access. The importance of practical and effective estate planning cannot be underestimated. A Florida resident needs an estate plan that provides information on how to access digital wallets. Failure to do so can lead to assets being permanently locked away and, as such, inaccessible to heirs or beneficiaries.
  3. Understanding: Lastly, another challenge is that cryptocurrencies are a relatively new and complex asset class. Many potential heirs or beneficiaries may not fully understand how they work. The lack of understanding can lead to challenges in managing these assets, especially in a fluctuating market that requires timely and informed decisions. Further, Personal Representatives or executors as well as trustees and beneficiaries might struggle with the technical aspects of handling cryptocurrencies, such as transferring ownership, converting them into fiat currency, and understanding tax implications.

Although there are no major technical legal differences, the reality is that cryptocurrency and other digital assets can be particularly challenging to deal with in probate. Whether a Florida resident owns cryptocurrency or other digital assets, when creating an estate plan or attempting to navigate cryptocurrency as well as other digital assets in an ongoing probate, an experienced Florida attorney can protect your interests.

If a Florida resident needs assistance with cryptocurrency in probate or any other estate planning matter, contact an experienced Florida probate and/or Estate planning attorney for expert guidance and support.

The foregoing is a brief and general overview of the topic (Part 2).

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.

END OF PART 2 & END OF ARTICLE