|
Cafe Law Bookstore where information on all states and related and other topics is available. We looked into many different books and manuals to make available the most recent books, reasonably priced, with the information you need. [To navigation links to other pages.] |
 |
Proper Estate Planning allows you to plan for yourself and for your loved ones -- without giving up control of your affairs. Your estate plan should allow you to plan for the possibility of your own disability. It should give what you own-- to whom you want to receive it,-- the way you want them to receive it,-- and when you want them to receive it. FINALLY, your estate plan should save every tax dollar, professional fee, and court cost that are legally possible.
[Back to Table of Contents.]
TRADITIONAL ESTATE PLANNING TOOLS & THEIR PROBLEMS
The most common traditional estate planning tools are:
- Wills
- Do Nothing (the ultimate in non estate planning)
- Joint Ownership of Property
- Beneficiary designations or Pay on Death Provisions
- Bare-Bones Revocable Living Trusts
Most of us are familiar with conventional age-old estate planning tools. You have probably used one or more of these techniques yourself. But there are disadvantages. This applies to Wills, Jointly Held Property, Beneficiary Designations and what are known as "bare-bones living trusts". Each of these drawbacks contradicts the definition of wise and proper estate planning.
[Back to Table of Contents.]
A will is a document drawn up by an individual, which is used upon the death of that individual, to distribute his or her estate. Most wills are simple and straight forward, they name a personal representative, the person who will be responsible for collecting all of the deceased’s property, and for paying all of the bills and finally, distributing what’s left to the heirs. In addition, a will normally name those persons whom the deceased wants to leave his property to, usually his or her spouse or children. Finally, a will is a document that sits in the safe deposit box until the individual who signed it dies.
A will guarantees probate -- which generates executor and attorney fees and causes much time delay before your loved ones can receive their inheritance. In Florida attorney fees for probate are set by statute and equate to approximately 3% of the gross value of the estate. Wills are fully public. They are open to inspection by anyone who wants to know about your will and your affairs. Wills offer no planning or direction for you or your family in the event of your disability. Wills are easily challenged by unhappy relatives. Wills most often don’t control their makers’ life insurance proceeds, retirement benefits, or jointly owned property. Wills are often bare-bones form documents. They don’t capture the hopes, fears, dreams, values and ambitions of their makers. Finally, wills may not be effective when their makers move to or own property in another state.
[Back to Table of Contents.]
All states and most foreign countries have laws or statutes which provide for the distribution of the estate of a deceased. In most states these statutes make special allowances for the spouse of the deceased and for his or her minor children. In addition, if the deceased does not have a spouse or children there is a scheme call per stirpes which allows the court to determine who the rightful beneficiaries are. The key word here was "Court", that means that if you die without a will your estate will have to go through the probate process to be distributed to your rightful heirs.
[Back to Table of Contents.]
Probate is a judicial process which serves the function of insuring that all of the debts of the deceased are paid prior to the distribution of the balance of the estate to the beneficiaries.
The proceeding generally takes between six months and two years and during that period the beneficiaries only have limited access to the estate. Like most other court proceedings the Probate Court is open to the public and therefore, anyone can go to the courthouse and ask to review the file, copy documents, read your will and find out the full extent of your estate.
[Back to Table of Contents.]
Your joint tenancy property can pass to unintended heirs. Joint tenancy does not avoid probate. It only delays it. There may be unintended gift and estate taxes if joint tenancy is used between non -spouses or with children. Joint tenancy makes no provisions for estate tax planning. Joint tenancy doesn’t allow you to give your property to whom you want, the way you want, and when you want.
[Back to Table of Contents.]
USING A BENEFICIARY DESIGNATION
Designating your beneficiaries on a standard business form "beneficiary designation" often means losing control of a major part of your estate. It does not enable you to leave instructions or provide guidance to your loved ones. Often times the wrong beneficiary is named in the beneficiary designation. A beneficiary designation won’t protect your spouse and children from creditors or unscrupulous people. Equal distributions from a beneficiary designation can cause unequal results that won’t meet your family’s special needs. Beneficiary designations make no provision for federal tax planning.
[Back to Table of Contents.]
WHAT IS A LIVING TRUST ESTATE PLAN?
A Living Trust estate plan is a revocable living trust-centered estate plan that contains your special instructions for your own care and that of your loved ones. A revocable living trust is essentially a contract between the individual, who is called the Grantor, and him or herself as the trustee of that contract, in addition, the Living Trust generally names the successor trustees that the Grantor wants to manage his or her estate either when the Grantor is no longer capable of managing it or upon his or her death. Trusts are called Living Trusts because they are capable of performing many valuable functions for the Grantor, during the life of the Grantor, unlike a will that only begins its function upon the death of the individual. Of particular interest to most Grantors is the ability to provide instructions to the successor trustees, on exactly how the Grantor’s estate is to be managed, both during the life of the Grantor, and after his or her death. These instructions are what distinguishes Living Trust estate planning from traditional wills and bare-bones living trusts. A Living Trust plan contains other documents which assure your planning needs are totally met. Living Trust planning is thorough, easy to create, change, and control. It allows you to give what you have to whom you want, the way you want and when you want -- while saving tax dollars and probate costs. It’s the very essence of what constitutes good estate planning.
[Back to Table of Contents.]
WHAT A PROPERLY DRAFTED LIVING TRUST CAN DO
Although most living trusts appear to be better than a will, they are about the same if not fully funded because they do not avoid probate. Most living trusts do not contain instructions for loved ones -- they are sterile legal forms. They only accomplish limited objectives. However a properly drafted living trust can do more for you.
-A Living Trust Plan provides instructions for your care and that of your loved ones in the event of your disability.
-It is effective if you move to or own property in another state.
-It avoids probate and its associated legal costs.
-It keeps your affairs private and confidential.
-It controls all your property including pensions and life insurance.
-It allows you to leave explicit instructions for the care of your loved ones.
-It creates protective trusts for your young children, disadvantaged children, adult children and grandchildren.
-And finally, it provides federal estate tax planning when needed.
IS IT DIFFICULT TO CREATE A LIVING TRUST PLAN?
With the help of an attorney and your other key advisors, you can quickly and comfortably establish a Living Trust estate plan for yourself and your loved ones.
-Your Living Trust plan can be changed or canceled at any time.
-And as the maker, trustee, and primary beneficiary, you control every aspect of how your property will be used.
-You also appoint the trustees, naming as many or as few trustees as you like, with specifications of who takes care of what.
-Of course, a Living Trust estate plan truly comes to life by adding your Living concern and the caring efforts of your attorney and other professional advisors.
MEETING YOUR GOALS FOR ESTATE PLANNING
By meeting the definition of good estate planning, a Living Trust plan meets your goals.
-It allows you to plan for your disability and direct the distribution of your property.
-It saves tax dollars, professional fees and court costs.
-And most importantly, it keeps you in control of your own affairs by adding your concerns and caring effort.
****The foregoing is not intended as an exhaustive review of estate planning law in Florida. This information is not to be regarded as legal opinion applicable to all circumstances. Each factual scenario is different and requires unique and individual advice. The information provided herein should not be relied upon and any person with inquiry or concern should consult an attorney.
Visit the Cafe Law Bookstore, an Associate of Amazon.com, for do-it-yourself kits, books, and more, including self-help manuals on this topic and many others. Click here for books on this topic.
Alternatively, enter your search terms here and include the name of the state for which you need information as a search term.
In addition, you can go to the Cafe Law Links page for links or to search the world wide web for legal information.
If this information has been helpful please tell your friends. Thank you.
| Menu |
Bookstore |
Search |
Links |
E-mail |
Home |