Estate Planning empowers Florida residents to make their own decisions and choices about their future and the future of their loved ones. The following are a few of the most common reasons people decide to create an estate plan.
Avoiding probate is easily one of the most common reasons people seek out the guidance of an experienced Estate Planning Attorney. Any individual who has ever had to deal with the stress, strain and cost of probate knows that they want to avoid it at all costs. Probate is perceived as the painful process which takes place after someone’s death. It usually involves proving to the court that a deceased person’s Last Will & Testament is valid, or worse still-without a Last Will, identifying heirs or beneficiaries or family members, itemizing and cataloging the deceased individual’s property, appraising that property, assigning, and paying debts and taxes and distributing the remaining property. As can be seen, it can be an involved and expensive process with a number of variables and opportunities for issues, conflicts, and family infighting. Typically, this process involves lawyers and court fees that are paid for by the subject estate, which wastes money and resources that could otherwise go to the individual’s heirs, beneficiaries or loved ones. While many of the problems with this process may seem obvious, many others can be found in the countless stories regarding the probate process. That is why the best practice is always consulting an experienced attorney that can assist in avoiding these issues before they ever become a factor.
One tool that many estate planning lawyers use to avoid probate is a Trust. Unlike a Last Will, a Trust allows a person to transfer property to their heirs without having to go through probate and can provide tax benefits.
The very real prospect of losing a sizable portion of a deceased’s hard-earned estate to state and federal taxes is always a great incentive for seeking estate planning advice. Using their attorney, married couples can reduce or even eliminate many estate taxes altogether by using tools like AB trusts or ABC trusts, among others. An individual can also reduce the burden of inheritance tax on their children or grandchildren quite significantly if they seek proper legal advice in advance.
In Florida, one can also avoid probate by placing designated beneficiaries on applicable accounts and using a Lady Bird deed on real property.
Many residents have heard stories of the unpleasant family infighting that can occur in the aftermath of a loved one’s death. Aside from wasting time and money, failure to make a comprehensive estate plan can create chaos for one’s family and can often lead to major rifts and damaged relationships. Making fundamental decisions such as who will be in charge(an authorized Agent under a Power of Atty to act on their behalf) if a person becomes mentally or physically incapacitated while alive, and/or who gets what, when they will get it and how they will get it(before or after death) can be crucial in avoiding family disputes and costly probate court proceedings.
Estate planning is much more than just deciding who to leave one’s assets, it is also about looking after one’s loved ones when the parent or spouse, etc. are no longer alive. There are generally two main reasons a person may want to protect their beneficiaries. First, the applicable beneficiary may be a minor, in which case state law (and recommended practice) requires a guardian be appointed to oversee the minor’s needs and finances until they become of legal age. However, as can be suspected, adult beneficiaries may need protection as well, which brings up the second major reason people may want to consult an estate planning attorney. In some instances, a Florida resident may want to protect their adult beneficiary from bad decisions, outside influences, creditors, or even their spouse. One can insolate their beneficiary’s inheritance from an overbearing spouse or a partner who might squander their inheritance or possibly take it in a divorce.
In recent years, asset protection has become one of the most popular and important bases people consult an estate planning attorney. Once they become aware or suspect that a lawsuit or divorce is on the horizon, it may be too late to put a plan in place which can provide protection. With the appropriate estate plan, one can create a sound financial plan which can protect assets during one’s lifetime and thereafter.
While situations and wishes are different or vary, it is critical to consult an experienced estate planning attorney who will listen to one’s needs and can create a customized plan that puts them, and their loved ones in the best position possible for the future.
The foregoing is a very brief and general overview of the benefits of having an estate plan done in Florida.
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.