Perlin Estate Planning

Should I Have a Prenup Before I Marry?

“Bringing up the 'P' word before you marry may be awkward. However, you can always tell your intended, 'My lawyer made me do it.'”

Many people think that prenups (prenuptial agreements) kill the romance. However, the CT Post asks, in its article, “Millennial Millionaires and Their Prenups-What They Need to Be Thinking About,” would you still think the same if you had a lot to lose, if your marriage ended in divorce?

The use of prenups has increased five times in the past two decades for millennials, according to the American Academy of Matrimonial Lawyers (which defines millennials as those ages 18 to 34). Celebrities like Kylie Jenner and Justin Bieber have signed premarital agreements with their partners, and many young marrieds active in the startup world think that premarital agreements are a wise move.

A prenup lets entrepreneurs protect what they have worked so hard for. Up-and-coming millennials and entrepreneurs are waiting longer to get married. As a result, they typically have more assets, accumulated wealth from a 401(k) and stock options and possibly real-estate ventures. They could potentially lose a lot, if a prenup isn’t put into place. They also need to protect their intellectual property, and the very idea of a business has to be protected. For example, with Kylie Jenner and her makeup line, she decided to shield what assets she has now and those she’ll accumulate throughout her marriage. Her business won’t be communal property.

A marriage is a two-person team, so a couple should carve out some partnership in their marriage. This is commonly the family home or the greater salary, but investment properties are best left undivided. If you think a prenup is good for you and your fiancé, remember these guidelines:

Work with a business attorney. Your legal counsel must be business savvy and understand how to best plan for future contingencies. Each party should also have their own separate attorney for a prenup to be valid.

Plan ahead with a prenup. Don’t begin arranging for a prenup a month before your wedding. If you have significant assets, it will take some time to draft.

Look at the details. Determine if your partner has offshore accounts. It also matters where you will reside. Some techies, originally from China or India, have international attorneys that increases the time required to draft an agreement.

Every prenups is unique. There’s no one size fits all. There are many variables and they’re unique to each relationship.

Experiencing a divorce is a difficult time, and a prenup may give you some well-deserved protection.

Reference: CT Post (November 5, 2018) “Millennial Millionaires and Their Prenups -- What They Need to Be Thinking About”

Oscar Winning Actress Says Ironclad Prenup Needed Before “I Do” This Time

“Once bitten and twice shy, Sandra Bullock is taking no chances on love this time around!”

Sandra Bullock was betrayed by her ex-husband Jesse James’ trashy affairs.

Because of this, the Oscar winner’s pending marriage with photographer Bryan Randall is contingent on his signing a prenuptial agreement.

A prenuptial agreement or "prenup" is a written contract created by a couple prior to marriage. It typically sets out the property that each person owns, as well as their debts, and details what each person's property rights will be after the marriage.

RadarOnline.com’s recent article, “Sandra Bullock's Prenup Revealed,” reports that Sandra had a tough time after splitting up with Jesse. Bryan voluntarily offered to sign a nondisclosure agreement, in which he agreed to never publicly discuss the relationship, even if it ends.  However, Sandra is also looking for a prenup to protect herself.

Bullock and Randall started discreetly dating in 2015. Even though the actress is head over heels in love, she won’t be blindsided like she was during her toxic marriage to James, which ended in 2010.

The prenup states that if the marriage ends, Bryan must immediately leave Sandra’s mansion, return all keys and remote controls for the garage and gates for all her homes. The prenup also states that all furniture, artwork and cars belong to Sandra. Any gifts that she buys him are on an inventory list kept by her lawyer and business manager. Bryan can keep those.

Most importantly, the prenup makes it clear that he has no legal rights to her adopted children, son Louis, 8, and daughter Laila, 6.

Bryan hopes Sandra will reconsider the restrictions on her children, said a friend.

Reference: Radar Online (July 27, 2018) “Sandra Bullock's Prenup Revealed”

Fight over Alan Thicke’s Estate Appears to be settled

“The lawsuit brought against Alan Thicke‘s widow by the late actor’s two eldest sons has been dismissed.”

The probate attorney for Alan Thicke’s widow, Tanya Callau, announced that the petition filed against her in May by Thicke’s sons, Brennan and Robin Thicke, was dismissed. The petition said Callau alleged that the prenuptial agreement she signed before marrying Alan in 2005 was invalid.

In its article, “Robin Thicke & His Father Alan's Widow Celebrate Their Love For Late Actor After Judge Throws Out Singer's Lawsuit,” People quoted Thicke’s widow’s attorney, saying “I am thrilled that I was able to get this bogus lawsuit thrown out of court for Tanya, whose only sin was that she loved her husband and has suffered grievously since losing him.”

Callau said she won’t contest the prenuptial agreement she signed and the judge agreed, saying there was no evidence she had planned that action.

At the same time, four-time Grammy nominee Robin said he was happy to hear his stepmother wouldn’t be contesting the prenup: “We are thrilled to hear that Tanya will no longer be contesting the validity of her pre-nuptial agreement with Alan, and has agreed to honor his last will and testament. Our father was a wonderful man, who all of us, loved very much.”

Los Angeles Superior Court Judge Clifford Klein said a new petition could be filed “if he has information supporting the sons’ assertions.”

Five months after Alan died in December after suffering a heart attack while playing hockey, Brennan and Robin filed the petition against Callau. Before he died, the two boys were named co-trustees of their father’s living trust if Alan’s brother, Todd, declined to take on the responsibility (which he did).

In February 2016, the most recent version of Alan’s trust was signed, and the two brothers alleged that Callau didn’t complain about the estate or prenup then. Alan left each of his sons “(in equal shares): ownership of the Carpinteria, California ranch that he bought in 1989 and desired to keep in his family forever (the “Ranch”), 75 percent of his personal effects, and 60 percent of his remaining estate.”

Callau was left “all of the Ranch’s furnishings, 25% of his personal effects, a $500,000 life insurance policy, all of his death benefits from pensions and union memberships and 40 percent share of his remaining estate. Alan also provided that Tanya may live in the Ranch after his death, so long as she maintains the property and expenses.”

But in the time since Alan died, Callau allegedly claimed the prenuptial agreement she signed over ten years ago is invalid. She claimed there is no chance the prenup could withstand a legal challenge and that she has very significant community rights in the trust’s assets and rights of reimbursement to improvements to the Ranch. She also claimed “Marvin rights,” arguing that she had to forego opportunities to pursue and advance her own career to support Alan and be his companion, including raising Carter.

The sons’ attorney also claimed that Callau had “threatened to make her claims fodder for ‘tabloid publicity’, unless the Co-Trustees agreed to participate in a mediation and succumb to her demands.”

Reference: People (September 15, 2017) “Robin Thicke & His Father Alan's Widow Celebrate Their Love for Late Actor After Judge Throws Out Singer's Lawsuit”

The Family Fight Begins over Alan Thicke’s Estate

“Five months after actor Alan Thicke died, he’s the subject of what’s shaping up to be a bitter family feud over the remainder of his estate.”

Alan Thicke’s two eldest sons, Brennan and Robin, filed a petition in Los Angeles County Superior Court over claims that their father’s widow is disputing the terms of the prenuptial agreement she signed in 2005, according to a story from Fox News.

The story, “Alan Thicke's sons in legal battle with his widow over his estate,” reminds us that the actor died unexpectedly at age 69, when a major artery ruptured while he was playing hockey with his younger son, Carter.

A month before his death, the latest version of his living trust was drafted, offering control of his assets to his brother, Todd Thicke. But he had the option to decline, which gave co-trustees Brennan and Robin Thicke control.

Thicke allegedly left his three children equal shares of a Carpinteria ranch, 75% of his personal effects and 60% of his remaining estate. He left his wife Tanya Callau the ranch’s furnishings, 25% of his personal effects, $500,000 in a life insurance policy, all benefits from his various pensions and union memberships, along with 40% of his remaining estate. Alan also allowed for her to continue to live on the ranch, provided she’s able to reasonably maintain the property.

But Tanya is now claiming this agreement violates the terms of their initial prenuptial agreement.

The sons say Tanya didn’t dispute the terms in February, but now she has changed her posture with Alan gone. She claims the prenup she signed won’t be held valid. Instead, she’s seeking an arrangement that looks more like that to which she previously thought she was entitled.

In the petition, the sons’ attorney even suggested that Callau threatened to share details of this family squabble with the press, but her lawyer denies that claim.

“Tanya did not threaten to go to the press,” attorney Adam Streisand told Variety. “To the contrary, she said a court battle would attract the tabloid media, which she did not want, and so she encouraged everyone to get together for a family mediation to figure it all out. They refused. Repeatedly. So, ask yourself, who is it that is planting stories in the press and filing lawsuits, and that’s where you’ll find the real culprits.”

Reference: Fox News (May 17, 2017) “Alan Thicke's sons in legal battle with his widow over his estate”

Remember These Remarriage Reminders When One Spouse Dies in Coral Gables, Miami, FL

“Worried about estate taxes affecting your clients? If they've been married more than once, then forget the taxman.”

The unforeseen legal consequences incurred by a second or even third marriage can snarl careful estate planning and leave heirs disenfranchised and bitter, warns On Wall Street in recent article entitled “Estate planning mishaps: How even the family bible is at stake.”

There are some unforeseen ramifications of remarriage. Question come up like, Who gets the personal belongings of a deceased parent? How do you prove title to personal property? 

There’s no title to a family heirloom like a grandpa's pipe collection. A parent can say that specific items should go to a particular child, but its proving that they actually belonged to the parent rather than a new spouse is what’s difficult.

Situations like that prompt the rule of thumb: When a parent dies, first change the locks.

The death of a parent and the new spouse may not clear up issues for potential heirs. For example, the husband's death is followed three days later by the death of his new wife. Her children by a previous marriage may say all the property is theirs because the “surviving” wife inherited the property.

Folks should think about prenuptial agreements, which can be particularly useful for those with existing children and remarrying later in life. It’s not just for Brangelina. And if you are divorced and get remarried, verify the beneficiary listed on the accounts. Otherwise, the former spouse could end up inheriting the assets!

Be aware of how state laws can impact inheritances. There are some states that allow the surviving spouse to continue living in their deceased spouse's home. If the deceased had children by a prior marriage, they could be cooling their heels for some time before they receive their inheritance. This can create a dicey situation when most of the deceased client's wealth is tied up in the home. 

Likewise, when folks move from one state to another, especially when it’s a second or third marriage, they should talk with a qualified estate planning attorney to understand what rights that spouse has attained because of the move. There could be surprises. For example, in Oklahoma the surviving spouse has a right to the family bible.

Do you live in South Florida? There are many situations with blended families to consider... are you getting remarried... is your ex-spouse getting remarried... or perhaps your adult child is thinking about getting married again? Call me (305-443-3104) right away for peace of mind. I can help!

• I'm an exceptionally experienced Florida Bar Board Certified Estate Planning Attorney,
• I'm a Florida Bar Board Certified Elder Law Attorney, focusing on ALL legal issues related to aging,
• have prepared over 4,000 estate plans in 30+ years in practice,
• have administered over 600 estates through Probate, and
• am a Certified Financial Planner Professional™, plus
• I am also a Florida Certified Public Accountant (CPA).

Of course, if you would like more information about General Estate Planning in South Florida, I have a very informative website you are welcome to visit for more information.

Reference: On Wall Street (Sept. 14, 2016) “Estate planning mishaps: How even the family bible is at stake”

The Rules for 401(k)s When You Die in South Florida, Coral Gables, FL

“If a married 401(k) saver dies, the funds almost always go to the spouse.”

Federal law is pretty clear cut regarding what happens to company retirement plan assets if a married participant dies on the job. In that scenario, the survivor gets 100% of the account—provided that person hasn’t specifically waived the right.

When a worker takes a retirement plan payout as an annuity, he or she must select a plan that will continue lifetime payments to the surviving spouse equal to at least 50% of the original benefit amount. A spouse can also waive that right, but it must be in writing.

Kiplinger’s August 2016 article, “What Happens to Your 401(k) When You Die–Like It or Not,” reports that when President Reagan signed that rule into law back in 1984, he proudly said, “no longer will one member of a married couple be able to sign away survivor benefits for the other.”

The protection for a surviving spouse is so powerful that it’s superior to properly named beneficiaries. Further, this rule can’t be unset by a pre- or post-nuptial agreement where a spouse waives the death benefit. A pre-nup doesn’t do it since a spouse and not an engaged individual must waive the benefit, and a post-nup has no authority—unless the spouse actually signs a written waiver. Note that singles can designate whomever they choose as beneficiary.

While there are clear rules for the protection for a survivor’s rights, it’s a bit cloudier while the 401(k) owner is alive. There’s actually a loophole to the tune of $1 million in a lump-sum distribution. When a married worker leaves a job, most 401(k) plans permit the employee to roll over the balance to an IRA without notifying the spouse.

Once the money is in the IRA, the death benefit protection is gone.

In most states, the IRA owner can name anyone as beneficiary of the account. However, in community property states, you may need spousal consent to name someone other than your spouse as beneficiary of more than 50% of the account.

There are, however, some plans that require spousal consent for a distribution, such as when the default benefit under the plan is a joint annuity with the participant’s spouse. Otherwise, to claim benefits, such as a lump-sum distribution to be rolled into an IRA, the spouse must agree—it’s pretty rare among 401(k) plans. Plans that require a 100% death benefit for a spouse typically don’t demand spousal consent for a lump-sum payout.

It’s very important to understand the rules—and not just those of your own retirement plan but also of those that govern the plan that covers your spouse.

Do you live in South Florida? Do you have a 401(k) or other employer-based retirement account? Do you have an old IRA or savings account from a previous employer you may have not "rolled over"? Have you recently gotten divorced or are contemplating divorce or remarriage? Call me (305-443-3104) right away for peace of mind. I can help!

• I'm an exceptionally experienced Florida Bar Board Certified Estate Planning Attorney,
• I'm a Florida Bar Board Certified Elder Law Attorney, focusing on ALL legal issues related to aging,
• have prepared over 4,000 estate plans in 30+ years in practice,
• have administered over 600 estates through Probate, and
• am a Certified Financial Planner Professional™, plus
• I am also a Florida Certified Public Accountant (CPA).

Of course, if you would like more information about General Estate Planning in South Florida, I have a very informative website you are welcome to visit for more information.

Reference: Kiplinger’s (August 2016) “What Happens to Your 401(k) When You Die – Like It or Not”

Getting Married Again in Miami Means “You Do” Need to Review Your Assets and Estate Plan

"Getting remarried...Oh, what fun when it comes to estate planning."

A major challenge for those walking down the aisle again is how to reconcile preserving assets for children from a prior marriage and still taking care of the commitment to a new spouse.

CNBC’s article, “Getting remarried? Protect your assets and your interests,” recommends looking ahead and addressing questions about your goals, how your existing family and new spouse will relate to one another when you're gone and who will be in charge of the money. The big issue that heirs of a remarrying couple need to worry about more than federal estate tax is the new spouse.

The reason for this is that every state except Georgia gives rights to a spouse to make an elective share against a decedent spouse's estate or have the right to community property. That means that a portion of an estate could go to the new spouse even if the decedent's will disinherits him or her. Unless you expressly exclude your new spouse from your will, he or she typically has an intestate right against the probate estate.

If an individual has an ERISA retirement account, the spouse likely has certain rights to it—whether it is a defined benefit or a defined contribution plan. IRAs aren’t subject to the same rules. In many states, the surviving spouse has rights to certain personal property. Sometimes this is based on values, and other times it’s set out in a state statute.

If there is no estate planning document, such as a will, power of attorney or health care directive, the new spouse is often statutorily designated as the first decision-maker with the legal authority to deny access to anyone who might want to have a say in the affairs or care of the incapacitated spouse.

The ex-spouse may still be involved because assets could still be left to your ex if you fail to update your beneficiary designations—even if you intended to leave things to your new spouse and/or children instead. You might be contractually obligated to keep your ex-spouse as beneficiary of a retirement account or life insurance policy for a certain period of time. Check the fine print.

When you’re updating your estate planning documents, also think about the following issues. First, consider whether you’d like to name your new spouse as your trustee/executor/agent because the disposition of assets becomes tricky when there are kids from prior marriages. Next, take a look at your assets and decide if you want to hold them individually or jointly. Jointly-held assets with rights of survivorship means that your surviving spouse will inherit these assets automatically without probate. Note that in a community property state, property that is obtained prior to marriage or in an inheritance can retain its character as separate property.

If your new spouse moves into your house, you’ll have to decide if you want to add his or her name to the deed and to the mortgage. You should consider where your spouse will live if you die first. Also, you may need to specifically bequeath certain personal items to your children—depending on family significance and your wishes—and be aware of how “children” is defined by your will. This could include only your own children or also your spouse's children. Here are a few other common estate planning mistakes people make after remarrying:

• Beneficiary designations left out-of-date;
• Assets unintentionally comingled;
• Failure to work with estate planning attorney on new estate planning documents;
• No prenuptial;
• Instructions to loved ones are verbal, not in writing;
• Failure to properly title the house; and
• Not buying long-term care insurance or planning for possible nursing home care.

Have a qualified estate planning attorney walk you through these details in a step-by-step manner to help avoid pitfalls. Don’t make one or more of these errors. These kinds of little mistakes can have big consequences.

Do you live in South Florida? Are you planning on remarrying? Are you already a newlywed in a blended family? Call me (305-443-3104) right away for peace of mind. I can help!

• I'm an exceptionally experienced Florida Bar Board Certified Estate Planning Attorney,
• I'm a Florida Bar Board Certified Elder Law Attorney, focusing on ALL legal issues related to aging,
• have prepared over 4,000 estate plans in 30+ years in practice,
• have administered over 600 estates through Probate, and
• am a Certified Financial Planner Professional™, plus
• I am also a Florida Certified Public Accountant (CPA).

Of course, if you would like more information about General Estate Planning in South Florida, I have a very informative website you are welcome to visit for more information.

Reference: CNBC (July 28, 2016) “Getting remarried? Protect your assets and your interests”

The Ins and Outs of Community Property if You Move to or from Florida

“Community property laws are, in short, a mixed bag, sometimes a boon and sometimes a nightmare.”

Many married couples living in the U.S. own assets that are deemed legally separate. This may include a business or real property purchased in one person’s name alone. The reason for this designation is that the laws of most states treat married individuals as financially unrelated to their spouse, except for joint accounts and those assets specifically mentioned in a will. However, there are some states called community property states that have different laws on this issue.

As a result, it’s important to know about community property laws in the event you move to one of these jurisdictions or already live in one.

Barron’s article, “How Community Property States Are Different,” explains that Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin are the states in which everything you acquire during a marriage is considered legally owned by both spouses. For example, their state statutes view a couple as the co-owners of a business with a 50-50 partnership.

Here are a few other issues to consider.

Premarital assets. Typically, any wealth acquired before the marriage and any inheritances acquired at any time by one spouse are not the property of the other spouse. If you intend to keep them separate, leave them out of your community accounts created after the marriage. If you want to join finances, an estate planning attorney can help you with pre- and post-marital agreements and community property agreements to pool assets.

Estate plans. In most states, a married couple’s assets are divided evenly in life, and the same is true when one dies. One half the couple’s assets become part of the estate, which can make for major taxes in some situations. If a couple buys a home for $1 million, which then appreciates to $5 million, half of the value of the home—or $2.5 million—becomes a part of the decedent spouse’s estate. It’s given a step-up in basis—a readjustment of the value of the home to the market price over what was initially paid. But the surviving spouse keeps the original cost basis of $500,000. If that spouse wanted to sell the property upon the death of the spouse, he or she would have a cost basis of $3 million (the $500,000 cost basis plus the adjusted basis of $2.5 million) amounting to a $2 million capital gain.

Community property states are a plus in this case because they give a step-up in basis to the entire home. In this example, the surviving spouse will also get a step-up in basis, which means if he or she sells the home there would be no capital gains tax owed. However, the step-up in basis can complicate wealth transfer planning.

Gifting. In community property states, both spouses have to agree on gifts from joint funds. No one can make a gift of your property without your consent, and without that consent, the spouse who didn’t make the gift can revoke the gift at a later date. It’s best to make sure it’s in writing—even when it’s a gift to each other.

Life insurance. Talk with an experienced estate planning attorney before you create an irrevocable life insurance trust. For example, a husband creates an irrevocable life insurance trust to benefit his wife, and the trust buys a $10 million life insurance policy on his life. He will need to be certain that any gifts made to the trust and used to pay the premiums are paid for from a non-community property account—payments cannot come from a joint account. Otherwise, it places a portion of the trust into the estate of his wife, which defeats the purpose of having an irrevocable life insurance trust in the first place and subjects it to an estate tax. Sign a transmutation agreement, which makes the gifts to the trusts entirely one person’s.

It’s important to remember that when community property laws are advantageous to your situation, you can carry community property over with you when you move to a new state. An agreement can preserve the community property state of already-acquired assets and conserve joint trusts to save them from getting comingled with assets in the new state.

Be sure to consult with a qualified estate planning attorney who understands community property law.

Have you recently moved to South Florida from a community property state? Have you considered how this may impact your estate planning and financial well-being? Call me (305-443-3104) right away for peace of mind. I can help!

• I'm an exceptionally experienced Florida Bar Board Certified Estate Planning Attorney,
• I'm a Florida Bar Board Certified Elder Law Attorney, focusing on ALL legal issues related to aging,
• have prepared over 4,000 estate plans in 30+ years in practice,
• have administered over 600 estates through Probate, and
• am a Certified Financial Planner Professional™, plus
• I am also a Florida Certified Public Accountant (CPA).

Of course, if you would like more information about General Estate Planning in South Florida, I have a very informative website you are welcome to visit for more information.

Reference: Barron’s (June 28, 2016) “How Community Property States Are Different”

How Does Dad's Second Marriage Affect a Kid's Share of a South Florida, Miami Estate?

"What property should I expect to get and what questions do I need to ask?"

New Jersey 101.5's, "What to know about a second marriage and an inheritance," discusses what children can expect when a father passes away when married to his second wife.

When someone dies, they typically will have two types of property at death. These are probate assets and non-probate assets. 

Probate assets are those that a person owns alone without a named beneficiary. The probate assets will pass in accordance with the terms of a person's will. However, if there's no will, the assets pass according to the state's laws of intestacy. Non-probate assets include assets that a person owns jointly with another person, like a home or a joint checking accounts, and assets which designate a beneficiary. These are things like life insurance and retirement assets. Non-probate assets pass to the joint survivor or the named beneficiary by operation of law. These aren't governed by the person's will or the laws of intestacy (unless the named beneficiary is the estate).

In one example, if the father died with probate assets, his estate would be required to be administered through the probate court in the county of his residence at the time of his death. If the father had a will, it's presented for probate. The person named in the will as the executor can qualify and obtain Letters Testamentary—these authorize him or her to act on behalf of the estate. If there isn't a will, an administrator is appointed. Generally, the spouse and then the children will have the first right to such an appointment. In either situation, everyone named in the will and all heirs at law (which include children) must be given notice of probate. They can also requested and get a copy of the will. 

A person can choose to leave nothing to a spouse, but a spouse is typically entitled to claim an elective share. In many states, the spouse receives one third of a decedent's estate.

If the father died without a will and if there was no premarital agreement, then assets pass in intestacy where the surviving spouse will receive the first 25% under some state laws. The rest will pass to the children (and the children of deceased siblings), if any.

Do you live in South Florida? Do you have a blended family or are you anticipating a remarriage? Call me (305-443-3104) right away for peace of mind. I can help!

• I'm an exceptionally experienced Florida Bar Board Certified Estate Planning Attorney,
• I'm a Florida Bar Board Certified Elder Law Attorney, focusing on ALL legal issues related to aging,
• have prepared over 4,000 estate plans in 30+ years in practice,
• have administered over 600 estates through Probate, and
• am a Certified Financial Planner Professional™, plus
• I am also a Florida Certified Public Accountant (CPA).

Of course, if you would like more information about General Estate Planning in South Florida, I have a very informative website you are welcome to visit for more information.

Reference: New Jersey 101.5 (March 29, 2016) "What to know about a second marriage and an inheritance"

Estate Planning for Coral Gables and Miami, Florida "May-December" Couples

"If this is a second marriage, make sure the ex-spouse is no longer the beneficiary on your retirement and life insurance accounts."

If your wife is about 15 years younger than you are, there are some special steps to take when you calculate your required minimum distributions from your IRA.

Kiplinger's article "Retirement Distributions When Your Spouse Is Much Younger," explains that most people use Life-Expectancy Table III, the Uniform Lifetime Table, in Appendix B of IRS Publication 590 to calculate their required minimum distributions ("RMD"). However, if your sole beneficiary is a spouse who is more than 10 years younger than you, then you should use Life-Expectancy Table II, the Joint Life and Last Survivor Expectancy, to determine your RMD. That table requires you to withdraw less money each year than you would if your spouse were older.

Here's an illustration: if you're 70½ in 2015 and need to take your first RMD, you would divide your account balance as of the end of 2014 by 27.4. So if you had $100,000 in your account, you'd need to withdraw $3,649.64. But if your sole beneficiary is your wife, age 53, you'd divide your account balance by 32.6 and would need to withdraw only $3,067.48.

In Life-Expectancy Table II, look for your age on the left side of the table, then find where that line intersects your spouse's age on the top. Some RMD calculators will let you input your spouse's birthdate to determine your RMD, even if you need to use the different life-expectancy table.

You should also make sure your IRA administrator knows your current spouse's birthdate, so they will use the correct table when calculating your RMDs—particularly if you have automatic RMD withdrawals.

It's also a good time to be certain your beneficiary designations are up-to-date. The beneficiary designations on your retirement accounts and life insurance take precedence over the information in your will. Even if you have updated your will, your IRA will go to your designated beneficiary. This will be the case even if you've been divorced, married, or wanted to change your beneficiary for any other reason.

Do you live in South Florida? I can help! Call me (305-443-3104) right away for peace of mind.

• I'm an exceptionally experienced Florida Bar Board Certified Estate Planning Attorney,
• I'm a Florida Bar Board Certified Elder Law Attorney, focusing on ALL legal issues related to aging,
• have prepared over 4,000 estate plans in 30+ years in practice,
• have administered over 600 estates through Probate, and
• am a Certified Financial Planner Professional™, plus
• I am also a Florida Certified Public Accountant (CPA).

Of course, if you would like more information about General Estate Planning in South Florida, I have a very informative website you are welcome to visit for more information.

Reference: Kiplinger (December 16, 2015) "Retirement Distributions When Your Spouse Is Much Younger"