Perlin Estate Planning

Here’s What You Can Learn from SurveyMonkey Exec’s Plans to Donate Her Shares

“SurveyMonkey board member Sheryl Sandberg plans to donate her stake in the company to charity, as part of her commitment to the Giving Pledge. Donating appreciated assets is a strategy that can benefit all investors, regardless of your level of wealth.”

If you donate to charity regularly, you may want to look at creating a donor-advised fund, according to CNBC’s recent article, “What you can learn from Sheryl Sandberg's plans to donate her SurveyMonkey shares.”

SurveyMonkey board member Sheryl Sandberg has plans for her ownership of the company. Sandberg, who is a member of the company's board and COO at Facebook, plans to donate all of the shares she owns, or the proceeds of the sale of those shares, to the Sheryl Sandberg & Dave Goldberg Family Foundation, according to the company's IPO prospectus. Her charitable plans are part of her strategy to participate in the Giving Pledge, whereby some of the world's wealthiest individuals, including Warren Buffett and Bill Gates, have agreed to give most of their wealth to charity. Sandberg has already donated Facebook shares to charity through a donor-advised fund.

Many people experience satisfaction in giving during life, and Sandberg’s actions are a good lesson in charitable giving. Giving appreciated investments to charity is a wise strategy. However, there are some things to consider before you do this.

The tax savings from charitable giving can be significant, but that shouldn’t be your sole rationale for giving. The reason is that you’ll still be parting with more money than the tax itself. Don't write a large check for charitable purposes, without reviewing it with your attorney. In many cases, she can increase the value and benefit of the gift at no cost to the charity. If you plan to give money away to charity on a regular basis, you may want to think about a donor-advised fund.

A donor-advised fund allows you to monitor your charitable donations, because the money comes from one fund. The IRS lets you take a tax deduction in the year you give to your donor-advised fund. You then can let the money sit in your account, until you decide that you are ready to donate it. Donor-advised funds also let a person shield their gifts from the public.

Another kind of endowed-giving vehicle is the private foundation. This generally work well for those with larger amounts of money. Typically, people don’t create a foundation for less than several million dollars, and they should be set up with an attorney. With a foundation, you can set up scholarship grants and employ family members. They are frequently used by larger donors who want that level of control and are willing to have all of their granting done publicly.

Reference: CNBC (October 4, 2018) “What you can learn from Sheryl Sandberg's plans to donate her SurveyMonkey shares”

New Laws for Reverse Mortgages in New York

“Budget legislation recently signed by the Governor introduced an important new pre-foreclosure notice specifically addressing defaults triggering reverse mortgage foreclosures affecting senior homeowners, while also making a technical fix to changes governing pre-foreclosure notices and settlement conferences for reverse mortgages that were signed into law in 2017.”

Reverse mortgages are loans that allow homeowners aged 62 and older to use their home equity, while remaining in their homes. It can be an important resource for seniors who don’t have enough income to cover their living expenses, explains New York Law Journal in the article, “Residential Foreclosures: Reverse Mortgage Foreclosure Protections.”

There’s been a spike in reverse mortgage foreclosures, many triggered by “property charge” defaults that could be resolved, if the default is brought to the borrower’s attention. However, reverse mortgages had been excluded from New York’s pre-foreclosure 90-day notices and mandatory settlement conferences.

The new legislation in New York now provides for a special pre-foreclosure notice to be used just for reverse mortgages. The notice gives detailed information about the asserted reverse mortgage default and discloses basic information to reverse mortgage borrowers at risk of foreclosure, along with the other information provided to conventional mortgage borrowers. It also has a list of possible grounds for a lender’s assertion of a default specific to reverse mortgages.

The new reverse mortgage-specific notice lists the following possible claimed defaults that can trigger a reverse mortgage foreclosure:

• failure to occupy the home as a principal residence;
• failure to submit required annual certificate of occupancy;
• death of the named borrower;
• failure to pay property taxes (with a requirement to detail property taxes advanced by the mortgage servicer);
• failure to maintain homeowner’s insurance (with a requirement to detail any insurance procured and paid for by the mortgage servicer);
• failure to pay water or sewer charges (with a requirement to detail any such charges advanced by the mortgage servicer); and
• failure to make required home repairs.

Similar to the 90-day notices for conventional mortgages, the new law also requires a lender asserting a default based on failure to pay property taxes, water and sewer charges, or to maintain homeowner’s insurance, to specify that the homeowner can cure the alleged default by making a specified payment.

The notice gives senior homeowners additional important information, like the right to dispute the asserted default by contacting the servicer; the availability of possible grants, loans or repayment plans that may permit homeowners to cure defaults on property charges; and programs available to permit non-borrowing spouses to remain in their homes following the borrower’s death and extensions available for seniors over 80 with long-term illnesses.

Reference: New York Law Journal (May 11, 2018) “Residential Foreclosures: Reverse Mortgage Foreclosure Protections”

Report on Billionaires Shows Next Gen Have Different Plans for Inheritance

 “Today’s next gens are facing a much wider array of options due to better education, digitization and technology. This amplifies the importance of purpose and meaning for them when choosing what to do and what not to do.”

A recent Billionaires Report by UBS and PwC shows that the unprecedented wealth creation that has occurred in the past 20 years is going to be followed by an unprecedented period of wealth transfer. The report explains that 460 billionaires will transfer more than $2 trillion of assets to their heirs during the next 20 years.

Investopedia’s article, “Billionaires to Transfer $2T in Wealth to Heirs,” reports that the data was gathered from the last 20 years, following 1,400 billionaires across the 14 largest billionaire markets. It looks at the potential impact this gigantic wealth transfer may have on both the recipients and society at large.

The report goes on to say that as great wealth trickles down the generations, the goals of those transferring that wealth will change. In fact, we’re already seeing the early stages of what we expect to be an upsurge in philanthropy.

The Billionaires Report includes information given by an advisor to several billionaire families.

The report concludes that younger beneficiaries of billionaire wealth are driven by three key goals that make them different from their elders: they typically put business first, place greater emphasis on values instead of valuables, and look to find identity through philanthropy. Young multigenerational billionaires are apt to be entrepreneurial and feel that growing their businesses is a way to benefit society. They also believe in philanthropy, but have a different approach than their parents and grandparents.

As far as these last two factors, the report says, “Their business goals must deliver not only returns to the family, but also tangible benefits to a wide group of stakeholders, including employees, customers and society at large. More than previous generations, they bring business discipline and strategy to philanthropy. They want their giving to make an impact–and they want to be able to measure it.”

Reference: Investopedia (October 31, 2016) “Billionaires to Transfer $2T in Wealth to Heirs”

What If the Estate Tax Goes Away? What Will Happen in Miami, South Florida?

“The Republicans are proposing to end the federal estate tax.”

A recent Forbes article addresses an interesting question: “If the U.S. Federal Estate Tax Goes Away, What Will Single-Family Offices Likely Do?” Even if the tax was eliminated, senior executives at single-family offices will still have to look at non-estate tax estate issues. These include issues such as the transfer of control of assets and how funds are to be distributed among heirs. Estate planning won’t go away. In fact, estate plans will need to be reviewed and reworked to address the changes in the laws.

Likewise, life insurance purchased to pay estate taxes will also need to be reviewed. One way to do this is to convert permanent policies with meaningful cash values into private placement life insurance policies (PPLI).

Private placement life insurance is a variable universal life insurance policy that provides cash value appreciation based on a segregated investment account and a life insurance benefit. PPLI is designed to maximize savings and minimize the death benefit.

The investment account typically uses tax-inefficient hedge fund strategies. PPLI can be especially useful as an element of more complicated tax strategies

With advances in technology and greater efficiencies, private placement life insurance is becoming more popular for more wealthy individuals.

People who operate single-family offices are also becoming more aware of the opportunities for PPLI as part of the financial portfolios of their clients. The use of PPLI may increase quickly and considerably if these families are no longer required to keep traditional life insurance policies purchased to pay estate taxes.

The elimination of the federal estate tax will hinge on the presidential election and how Congress acts on the issue.

Do you live in South Florida? Laws are constantly changing-- has your estate plan been reviewed in the last 2-3 years? 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: Forbes (September 29, 2016) “If the U.S. Federal Estate Tax Goes Away, What Will Single-Family Offices Likely Do?”

You Don’t Need the IRS to Approve Your Coral Gables, South Florida Retirement Fund

“What we often overlook is that a retirement account doesn't have to be blessed by the IRS to be used for retirement.”

Almost every American adult contributes to at least one retirement account that allows them a current income tax deduction or a tax-deferred account contribution (IRA's, 401k's, 403b's, 457b's and defined benefit plans). And as you know, when you start to take distributions from these accounts, you pay income taxes at ordinary income tax rates. Other retirement accounts, like Roth IRAs, don't allow a current deduction, but they’re tax free when you are ready to begin taking distributions at age 59½. A good-size Roth is a wise estate planning move. Since the IRS does not make you take withdrawals from your Roth over your lifetime, you can leave a tax-free "gift" to your heirs if you don’t spend it all during your lifetime.

As Physician’s Money Digest says in “10 Reasons You Need a Taxable Investment Account,” taxable retirement accounts are ignored because we’re so focused on IRS-approved retirement accounts. But you might think about supplementing your savings with a taxable retirement account. This can be a regular, old-school investment portfolio that’s not linked to any government regulations and that you’re building for retirement.

Here are some of the benefits of a taxable retirement account:

1. You have complete freedom over investments;
2. You’ve got total flexibility over your account;
3. You can use your portfolio as collateral for a loan;
4. You don't have to start withdrawing your taxable account when you turn 70 1/2;
5. You have "basis" in your account, which means when you withdraw money, you pay taxes only on the growth;
6. You only pay a maximum tax rate of 20% on long-term capital gains and qualified dividends (from stock held for at least one year);
7. You can write off capital losses in the account;
8. You can use income from the account to offset an unused investment interest deduction;
9. Your heirs will enjoy a stepped-up basis if they inherit the account from you; and
10. Your heirs don't have to start taking withdrawals from the account when they inherit it from you.

But be aware that taxable accounts aren’t protected in the event of a lawsuit, and you get basis instead of a tax deduction. That should be examined in light of your goals and insurance protection. 

This doesn’t mean having a taxable account is your #1 priority when saving for retirement, but it should be up on the list based on your finances and the integration of tax planning with your short- and long-term financial goals. It can be a good filler for some of the gaps in your tax and retirement planning strategy. 

Do you live in South Florida? Proactive retirement planning, whether you have an employer-based account or not, is only a phone call away! 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: Physician’s Money Digest (September 28, 2016) “10 Reasons You Need a Taxable Investment Account”

NFLers Huddle Up: Make a Game Plan for Possible Dementia in South Florida Retirement

“This one’s for you, Peyton Manning, and you, DeAngelo Williams, and you, Jadeveon Clowney, and all NFL players and alumni: Do yourselves a favor and pay attention to the Sam Huff case.”

A recent Washington Post article, entitled “Today’s NFL players should look hard at Sam Huff’s case; they could be next,” says you should prepare for a time when you might become incapacitated as a result of your career. Fail to make proper plans and a judge could end up determining where you live.

The NFL estimates that a player has about a 30% chance of contracting Alzheimer’s or dementia. Players receive literature from the NFL Players Association about concussions and advice from agents and lawyers about estate-planning, but they rarely see the real picture of how people will treat you with a stigmatizing brain disease. 

You need to make a game plan, or a judge will decide if you’ve been abused, neglected or exploited. Enter Sam Huff, who’s a Hall of Fame linebacker who was very successful after football. He was a VP at Marriott and enjoyed thoroughbred horse breeding. He lived on his horse farm in Middleburg, Va., for 30 years with his partner, Carol Holden, until 2012 when dementia was diagnosed. 

Huff’s daughter, Catherine, is seeking legal power to make all of Huff’s life and health-care decisions for him. Carol filed an emergency petition seeking to return him to his home and to her guardianship. There’s a court hearing scheduled.

Can you believe that of the 1,600 players in the NFL each season, more than 500 will contract some form of dementia. Here's a suggested blueprint for how to protect yourself, which may be just as important as wearing a helmet in action.

Here is some advice from the article whether you played on Sunday or caught the games on television:

Find a lawyer with experience in estate planning for Alzheimer’s and heed his or her advice. You need a specialist because Alzheimer’s planning requires a very thorough interdisciplinary legal knowledge, as well as insight into medical and criminal scenarios. An attorney experienced with dementia issues can educate you on why you shouldn’t give your child or spouse durable power of attorney without some type of neutral oversight. 

Don’t create family problems. Appoint an independent third party “protector.” This can be a valued friend who has sound judgment and can monitor the conduct of the trustee over your trust and the attorney in fact under your financial power of attorney. This is a pretty new idea, but it helps to address potential financial abuse. A protector can make sure that any actions are in your best interests.

Declare legally that if there’s any change to your estate plan after your diagnosis, there needs to be a medical evaluation to ensure it’s your decision. Changes can be manipulations, especially if your power-of-attorney is also a beneficiary.

Legally provide that a geriatric care social worker be employed to facilitate your care. All of the agencies, facilities, and services create confusion and frustration for family members trying to help. But a geriatric care expert has the knowledge, social service resources, and experience to take care of living arrangements and quality care, which can ease the strain on the family.

Determine your wishes and provide for them. If you really want to live at home, look into how to do so with dementia and set aside the money. You might decide you want to live in a facility. Be sure you state in your estate plan that the location has a good nurse-to-patient ratio and specifically trained Alzheimer’s care. 

While Huff’s situation shows there’s no such thing as a foolproof solution, you can start by working with a credible dementia-knowledgeable attorney.

Do you live in South Florida? Whether you are an athlete or a couch surfer, it's crucial to be proactive in your estate planning. 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: Washington Post (Sept. 15, 2016) “Today’s NFL players should look hard at Sam Huff’s case; they could be next”

Grab a GRAT While You Still Can in Miami and South Florida

“Clients who had planned to incorporate these valuation discounts into their business succession and estate planning strategies may find that their plans are no longer viable in light of the new regulations.”

A few months ago, the Treasury Department announced its proposed regulations that will, if finalized as currently written, substantially limit the applicability of current valuation discounts for transfers of interests in family-owned businesses. 

As Think Advisor says in its article “GRAT Valuation Discounts Disappearing Soon,” since the regulations probably won’t become effective until the middle of next year, you still have some time to capitalize on the valuation discounts still available. 

For many small businesses, a grantor retained annuity trust or “GRAT” can form part of an effective planning strategy. This would allow you to use both the value of the GRAT strategy and today’s family-business valuation discounts.

The proposed changes to Section 2704 are aimed at cutting out the valuation discounts for interests in family-owned businesses when transferred and the family controls the entity both before and after the transfer (most likely it’s a transfer within the family). The current rules allow certain restrictions on liquidation rights in the family-owned business situation that mean big valuation discounts—but these restrictions are ignored if they’re more restrictive than the default state law that would apply to the entity.

The proposed regulations would all but eliminate the reference to state laws and state laws will only be considered when determining whether a discount is appropriate if an applicable state law provision is mandatory. Also, restrictions that limit a transferor’s ability to require liquidation or redemption of his or her own business interests will be disregarded in valuing the interests. Instead, it’ll be assumed the transferor has a six-month “put” option to liquidate or redeem the business interests. 

In summary, the new proposed regulations would substantially limit the ability of family-owned businesses to take advantage of discounts for lack of control over the business or lack of marketability.

To use the valuation discounts that currently apply for small business interests, a GRAT strategy can be implemented to “freeze” the current value of these interests and transfer the appreciation to the beneficiaries. A GRAT combines a trust that’s established for a certain predetermined period of time with an annuity that pays the trust creator a set value each year of the trust's existence. At the end of the GRAT term, the remaining value passes to the beneficiaries, so it’s out of his or her estate.

A qualified estate planning attorney can help you navigate these complexities.

Do you live in South Florida? Are you a small business owner or do you have a family business you are looking to pass on to the next generation when you retire? 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: Think Advisor (Sept. 14, 2016) “GRAT Valuation Discounts Disappearing Soon”

Following the Rules in IRA Contributions in South Florida

“Besides the cash contribution limitation, there are many other rules to follow when making contributions into an IRA.”

If you have money in a stock account or in retirement accounts, you may want to use the stock account to add money to your IRA. At issue is whether you’d need to sell the stocks first and then transfer the money to an existing IRA or whether a new one is needed.

Unfortunately, it’s not as easy as transferring stocks from one account to an IRA. The rules stipulate that IRA contributions must be made in cash—that means you can deposit a check, electronically transfer cash between accounts at different financial institutions or authorize an internal cash transfer between accounts at the same bank.

Selling some stock in a non-retirement account is an option to free up enough cash to make an IRA contribution, but NJ 101.5’s recent article, “Moving your money to an IRA,” explains that first you should look into whether a contribution to a traditional IRA or a Roth IRA is a better option.

Each type of IRA must be in a separate account. Whether you need to open a new IRA depends on your desired IRA contribution type and what kind of IRA you already own. Also, it’s important to note that contributions into a SEP-IRA or Simple IRA have a different set of rules.

With a traditional or Roth IRA, you can make an annual contribution up to $5,500 or 100% of earned income—whichever is less. In addition, if you’re at least age 50 and have more earned income, you can also contribute an extra $1,000, which is called the “catch-up” contribution.

You can make an IRA contribution at any time during the year, but you have up until April 15^th of the following year to make your contribution. There aren’t any extensions, even if the IRS grants you an extension to file your income taxes.

With a traditional IRA, the contributions are deductible, but only if you or your spouse aren’t a participant in a qualified company retirement plan—like a 401(k) or profit-sharing. If you are a participant, your ability to deduct a traditional IRA contribution is phased out at $61,000 adjusted gross income (AGI) for singles and $98,000 for a married couple. Your spouse’s ability to deduct a contribution starts to phase out at $183,000 if only you are a participant in the qualified plan.

You can’t contribute to a traditional IRA if you are over 70½, despite having had earned income.

IRA distributions are usually taxable. They are also subject to a 10% early withdrawal penalty prior to age 59½, and minimum withdrawals are required after age 70½. For a Roth IRA, contributions are never deductible, but distributions are typically tax-free.

Your age and participation in a qualified plan will impact the ability to contribute to a Roth IRA, but your ability to contribute is phased out at $117,000 AGI for single taxpayers and $184,000 for married taxpayers. There are no required minimum distributions; however, the earnings portion of distributions may be taxable and/or subject to a 10% penalty if the Roth wasn’t opened for five years—depending on your age. There are different rules for those who are under age 59½, for those between the ages of 59½ and 70½ and for those over 70½.

Do you live in South Florida? Are you feeling a bit confused or overwhelmed when it comes to retirement accounts like 401(k), IRA, Roth IRA, and general Estate Planning? 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: NJ 101.5 (September 7, 2016) “Moving your money to an IRA”

Changes are on the Horizon for Estate and Gift Tax Rules; Will Affect Florida Residents

“The IRS is changing estate and gift tax rules, possibly as soon as December of this year [2016].”

If you have or think you might eventually have a total net estate worth more than $5,450,000 for an individual or $10,900,000 for a married couple, your taxes are going to increase if you transfer business interests or other assets to family members.

The Santa Barbara Independent says in “New IRS Regulations” that people in the past usually transferred certain assets into partnerships or limited liability companies (LLC). After the transfer, rather than owning the assets in their own name, the assets were now owned through an interest in a partnership or in a limited liability company (LLC). When the transfers of those entity interests (assets) were made to family members, it meant a reduction of the value of the transferred portion by as much as 25% to 45%. This estate planning strategy—known as “valuation discount planning”—usually decreased wealth transfer taxes at the time of death or when “gifting” assets to heirs ahead of death.

For instance, placing $10 million worth of assets inside a closely-held LLC or partnership might decrease the value of those assets in the estate by $2.5 million to $4.5 million. With the current 40% estate tax rate, this could reduce the estate (or gift) tax by $1 million to $1.8 million.

Just last month, however, the U.S. Treasury Department announced proposed regulations for Internal Revenue Code Section 2704 that, when finalized, would eliminate this valuation discount planning approach. The Treasury Department won’t finalize the regulations until after its December 1, 2016 hearing at the earliest, so you can still plan and take action if this kind of strategy is important for your family.

You can still make gifts or sales to your family and take full advantage of the current law. There are many complexities involved in large estates, so talk to an experienced estate planning attorney to structure the valuation discounts/adjustments properly before you move forward.

Do you live in South Florida? Do you have a high net worth or do you own a business? 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: Santa Barbara Independent (September 8, 2016) “New IRS Regulations”

Say Yes to Estate Planning in Coral Gables, Coconut Grove & Miami, Florida!

“Studies show that many Americans old enough to need estate planning have done absolutely nothing about it. This lapse is, of course, the most fundamental error you can make in estate planning.”

It’s common for folks to make serious errors in planning—or just not planning—to pass their wealth to their heirs after they die. CNBC’s “Don't drop the ball when planning your estate” gives us five of the most common estate planning mistakes that can hinder your ability to leave bequests in line with your desires.

1. No will. A 2016 survey found that 64% of American adults don't have a will (are "intestate"), and about half of these people either said they didn't need one or just haven't gotten around to it. Depending on the state in which you live and your personal situation, not having a will can result in assets going to people other than those you intend. A will is the document that states your wishes.

2. No updated will. The good news is that you have a will; the bad news is that you haven’t reviewed it in a decade. You’re not alone. Many folks think their wills are “set-it-and-forget-it” documents that never need to be changed. However, our lives change. We marry, divorce, adopt children, have grandkids…the list is endless. You should review your will every two years.

3. Unrealistic ideas about your heirs. When you draft your will, you should consider if your heirs are financially and emotionally able to handle the responsibility of money. They may not have the appropriate maturity and financial knowledge or may even have an addiction issue—any of which may be a serious problem when giving them a large sum of money. You should talk to an attorney about adding provisions in your will to protect them from their own issues.

4. No trust documents. Wills help with the division of assets upon death, but trusts will live for a set period of time to regulate the distribution of assets. A trust can restrict the timing of asset distribution and add conditions for heirs to receive bequests—like the supervision of a pre-appointed trustee until a minor heir turns 18.

5. Not naming the right executor or trustee. Many people will opt for a relative or old friend in their wills as their trustee. However, they may be your contemporaries and may not outlive you. They also may not have the time or inclination to take on the responsibilities of an executorship. Plus, appointing a relative or family friend can increase the odds of friction between heirs. Instead, you might think about naming a professional executor or trustee.

You hear about websites that can set you up with a will. However, these “do-it-yourself” tools have lots of limitations, and you may never be aware that there’s an issue. Only your heirs eventually will discover this. This is a good reason to hire an experienced estate attorney to draft your will and help you update it periodically. Some people don’t want to spend the money, but it’s worth it—considering that your valuable assets may be misdirected without a professionally-crafted will.

Do you live in South Florida? Have you been procrastinating and/or avoiding an update of outdated documents when it comes to Estate Planning? 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 (September 13, 2016) “Don't drop the ball when planning your estate”