Tag: trusts

Could the Potential 2025 Tax Law Changes Affect Your Florida Estate Plan?

Estate tax laws are set to undergo significant changes in 2025, and these changes could have a major impact on how you transfer wealth to your loved ones. For years, individuals and families have benefited from historically high estate tax exemptions, but these are set to roll back in the coming year. If your estate exceeds the adjusted exemption limits, your heirs could face substantial tax burdens, diminishing the legacy you worked so hard to build.

The current estate tax exemption allows individuals to pass up to $12.92 million (or $25.84 million for married couples) to their heirs tax-free. However, beginning in 2025, this amount is expected to drop significantly, reverting to approximately $5 million per individual, adjusted for inflation. For high-net-worth families, this rollback underscores the urgency of planning now to mitigate potential tax liabilities. Without action, many estates may find themselves unprepared for these changes.

Proactive estate planning is the key to navigating these challenges. By working with an experienced Florida estate planning attorney, you can explore strategies such as gifting, trust creation, and other wealth transfer tools to minimize tax exposure. The window for taking advantage of the current exemption is closing quickly, and acting before the changes take effect can make all the difference in protecting your legacy. Now is the time to safeguard your wealth for future generations. Let us share a few things to know with you right here in our blog.

1. Estate tax exemption rollback. The current federal estate tax exemption is historically high, allowing individuals to pass on up to $12.92 million tax-free. In 2025, this exemption is set to roll back to approximately $5 million (adjusted for inflation). This could bring more estates under the tax’s scope.

2. Gifting opportunities before the deadline. The temporary high exemption allows for significant tax-free gifts. Consider transferring wealth now through direct gifts or funding irrevocable trusts to lock in these benefits.

3. Strategic use of trusts agreements. Irrevocable trusts, such as grantor retained annuity trusts (GRATs) and spousal lifetime access trusts (SLATs), can help reduce taxable estate values while providing asset protection.

4. State estate taxes. Many states have their own estate tax thresholds, which are often much lower than the federal limits. Reviewing state-specific implications, especially when you have real property outside of Florida, is essential.

5. Plan for liquidity needs. Estates with illiquid assets like real estate or businesses may face challenges in covering taxes. Incorporating life insurance or other liquidity strategies can prevent forced sales.

We know this article raises more questions than it answers. The upcoming changes underscore the importance of proactive estate planning. Working with an experienced Florida estate planning attorney ensures your plan is optimized for the new tax environment, preserving your wealth for future generations.

Elder and Estate Planning Attorneys, PA, is a law office small enough to provide personal service but large enough to provide service in Jupiter, as well as Palm Beach, Martin, St. Lucie, and Indian River Counties in Florida. Our law firm will guide you through legal challenges involving elder law, estate planning, trusts, veterans benefits, real estate, and more. We encourage you to contact us and schedule a meeting with our attorneys.

Ensure Your Affairs Are in Order Before the New Year with our Year-End Estate Planning Checklist

As the year draws to a close, it is time to reflect on your personal and financial goals and ensure your estate planning aligns with them. Year-end planning is not just about celebrating accomplishments or setting resolutions for the coming year, it is also an opportunity to ensure that your legacy and loved ones are protected. Whether you have already established a Florida estate plan or are considering creating one, now is the time to review and update it to address any changes in your life or the law.

Life is unpredictable, and changes such as marriages, divorces, births, or even financial shifts can make an impact on your estate plan. A plan that worked for you in the past might no longer reflect your current wishes or priorities. Additionally, as tax laws and regulations evolve, ensuring your plan is optimized for current conditions is crucial. Taking a proactive approach now can save your family from unnecessary stress and costs later.

By addressing key elements such as beneficiary designations, last will and testament provisions, and trust agreement funding, you can enter the new year with peace of mind. A comprehensive review at the end of the year ensures that you have left no stone unturned in protecting your legacy. With a trusted Florida elder and estate planning attorney by your side, you can confidently step into 2025, knowing your estate plan is ready to serve your family’s needs.

1. Update beneficiary designations. Life insurance policies, retirement accounts, and payable-on-death accounts often bypass your last will and testament, so ensure your beneficiaries are correct and reflect your current wishes.

2. Review your last will and testament. Has your family grown or changed this year? Did you experience significant financial changes? Ensure your will addresses these life events.

3. Ensure trust agreements are funded. A trust agreement only works if it is funded. Confirm assets such as real estate and financial accounts are properly titled in the name of the trust.

4. Check advanced directives and healthcare planning. Verify that these documents are up-to-date, especially if there have been changes in your healthcare providers or personal preferences.

5. Evaluate tax planning opportunities. The end of the year is a great time to consider gifting strategies or charitable donations to reduce taxable income and align with your estate plan.

We know this article raises more questions than it answers. When you choose to take the time now to review and update your estate plan you can prevent unnecessary complications in the future. A well-maintained Florida estate plan ensures that your wishes are carried out seamlessly and provides peace of mind for you and your family. Elder and Estate Planning Attorneys, PA, is a law office small enough to provide personal service but large enough to provide service in Jupiter, as well as Palm Beach, Martin, St. Lucie, and Indian River Counties in Florida. Our law firm will guide you through legal challenges involving elder law, estate planning, trusts, veterans benefits, real estate, and more. We encourage you to contact us and schedule a meeting with our attorneys.

How Errors in Your Florida Estate Planning Documents Can Derail Your Goals

Did you know estate planning is a critical process that ensures your assets are managed and distributed according to your wishes after your passing? It involves the preparation of various legal documents, such as last will and testaments, trust agreements, powers of attorney, and healthcare directives, each serving a unique purpose in safeguarding your legacy and providing for your loved ones. 

What you may not realize, however, is the effectiveness of your estate plan hinges on the accuracy and relevancy of these documents. Errors, outdated information, or non-compliance with Florida-specific laws can lead to significant complications, potentially derailing your carefully laid plans. Critical issues like these can result in increased legal costs, prolonged probate proceedings, unintended tax liabilities, and even disputes among your heirs. Understanding the common pitfalls in estate planning and proactively addressing them with the guidance of an experienced Florida estate planning attorney can help ensure your goals are achieved and your loved ones are protected. We want to dive into them right here on our blog.

  1. Documents not specific to Florida. Estate planning laws vary significantly from state to state. If your documents were created in another state and have not been reviewed or updated since you moved to Florida, they may not comply with Florida law. This can lead to unintended tax consequences, probate issues, or even the invalidation of your documents.
  2. Outdated documents. Estate planning documents that are over ten years old may no longer reflect your current wishes or financial situation. You need to know that changes in your family dynamics, such as marriages, divorces, births, and deaths, can all impact your estate plan. Additionally, the value of your assets may have changed, requiring updates to your distribution plans.
  3. Changes in the law. Laws governing estate planning are subject to change. If your documents have not been reviewed in several years, they may not take into account recent changes in the law. For example, changes in tax laws can affect the tax efficiency of your estate plan, and updates in probate law can impact how your assets are distributed.
  4. Death of a decision-maker. If a person named in your estate planning documents, such as an executor, trustee, or power of attorney, has passed away, your documents need to be updated to appoint a new decision-maker. Failure to do so can result in delays and complications in administering your estate.
  5. Incorrect or incomplete beneficiary designations. Errors in beneficiary designations on accounts like life insurance, retirement plans, and payable-on-death accounts can cause these assets to be distributed contrary to your intentions. Ensure that all beneficiary designations are correctly aligned with your estate plan.

To avoid these common pitfalls, it is essential to work with an experienced Florida estate planning attorney who can help ensure your documents are up-to-date and compliant with current laws. An attorney who specializes in Florida estate planning law will have the expertise to ensure your documents are compliant with state-specific requirements. Your attorney can review your documents, if you have them, and make necessary updates to your documents to reflect changes in your family, assets, or decision-makers.

By taking these proactive steps, you can help ensure that your estate planning documents accurately reflect your wishes and protect your loved ones. We know this article raises more questions than it answers.  Elder and Estate Planning Attorneys, PA, is a law office small enough to provide personal service but large enough to provide service in Jupiter, as well as Palm Beach, Martin, St. Lucie, and Indian River Counties in Florida. Our law firm will guide you through legal challenges involving elder law, estate planning, trusts, veterans benefits, real estate, and more. We encourage you to contact us and schedule a meeting with our attorneys.

Key Reasons Why You Should Not Trust AI with Your Florida Estate Plan

Are you ready to create your Florida estate plan? Are you thinking about using artificial intelligence (AI)?  We use technology so much in our lives, to communicate with our family, maintain our bank accounts, purchase items or more. But should we really include technology in our legal matters, especially in the creation of our estate plan?  We understand that AI tools may offer convenience and a semblance of efficiency by drafting a simple will or trust agreement, however, that being said, relying only on such technology overlooks the subtle and very personal nature of estate planning. Think about it, individual circumstances, family dynamics, and the intricate web of estate laws are all complex and that makes the role of an experienced Florida estate planning attorney not just helpful but crucial.

Often people use technology, and AI, to create fast and cost-efficient legal documents.  The major drawback to these surface-level documents is that they may cover up the potential for significant legal vulnerabilities and oversights. Be aware that estate planning is more than filling in the blanks on standard forms.  Creating a Florida estate plan is about knowing that your life’s work and wishes are honored through the legacy you want to create. You will be able to protect what matters most to you, both while you are here and long after. The value of personalized, professional advice in creating an estate plan cannot be measured or overstated. When you work with an experienced Florida estate planning attorney you will be given a depth of knowledge and receive an understanding of human complexities brought to the forefront, something that AI simply cannot do. Your estate planning attorney’s involvement will be vital in creating a plan that truly reflects your wishes and protects your legacy. 

Of course, it is tempting and so easy to turn to technology for every aspect of our lives, including legal matters such as estate planning. But it cannot be said enough, while AI tools may be able to draft a simple will or trust document, relying solely on technology can lead to unforeseen complications. You need to  understand the risks of using AI without the knowledge of an experienced Florida estate planning attorney.

As you start, you need to know that estate planning is not merely a transaction, it is a deeply personal process that encompasses the entirety of your life’s work, your family, and your legacy. Your experienced Florida estate planning attorney understands the nuances of personal relationships and can look ahead and see any possible family dynamics that could complicate a straightforward distribution of assets. No matter how advanced AI seems to be it does not have the empathy and understanding required to navigate these complex human elements.

Also, be aware that estate laws vary significantly from one jurisdiction to another and they are subject to frequent changes. In fact, an experienced Florida estate planning attorney stays abreast of these changes and understands how they might impact your estate plan. Their expertise includes not only the drafting of wills and trusts but also considerations around taxes, real estate, and other assets. Once again, AI tools may fall short and might not be updated promptly or might apply a one-size-fits-all approach that does not account for jurisdictional differences.

The most serious issue is that when relying on AI for estate planning there is the potential for errors or omissions that could lead to your estate being distributed under the state’s intestacy laws, which might not reflect your wishes. An experienced estate planning attorney will ensure that your estate plan is comprehensive, leaving no room for intestacy to take effect.

Florida estate planning attorneys know that every individual they meet with is different and their situations are unique. Therefore, there must be a customized approach to estate planning. An estate planning attorney will give you tailored advice that considers your specific family dynamics, financial situation, and long-term care wishes. But if you use AI, it will operate by using algorithms and set parameters that might not capture the subtleties of your unique circumstances.

Often, one of the most challenging aspects of creating an estate plan is navigating the dynamics of the family and spotting any potential conflicts. An experienced estate planning attorney is able to be a neutral third party, offering guidance on how to approach sensitive topics and making sure your plan minimizes the potential for family disputes. Of course, this level of looking to the future is something AI cannot provide.

We know that AI has its place in our digital world, but not with estate planning. It is important to know that creating an estate plan demands a personal touch that technology cannot replicate. We highly recommend using an experienced Florida estate planning attorney because their value cannot be overstated.  The expertise of your attorney ensures that your wishes are honored and your legacy is preserved without leaving anything to chance. In matters of such importance, it is essential to rely on the depth of knowledge and understanding that only a human professional can offer.

We know this article raises more questions than it answers.  Elder and Estate Planning Attorneys, PA, is a law office small enough to provide personal service but large enough to provide service in Jupiter, as well as Palm Beach, Martin, St. Lucie, and Indian River Counties in Florida. Our law firm will guide you through legal challenges involving elder law, estate planning, trusts, veterans benefits, real estate, and more. We encourage you to contact us and schedule a meeting with our attorneys.

3 Ideas for Including a Pet Trust in Your Florida Estate Plan

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Do you have a pet or pets? You know how hard it is when the pet you have loved and cared for and who has been with you for a long time passes away. However, It may be very possible that your pet will outlive you. Are you an aging adult or do you have a pet that has a longer than average lifespan? You may want to consider a pet trust to ensure your pet is cared for after you are gone. We would like to share with you more about a pet trust and give you three A, B, C, thoughts to consider in regard to a pet trust being in your estate plan.

1. Aim for the right caregiver. You know your pet best. When you set up your pet trust, you will be able to name the right person to care for your pet. Now, your adult child may feel it would be his or her responsibility to take your pet. However, your adult child does not have the right circumstances at home to do so, perhaps because of having very young children or already having pets of his or her own. By choosing a different friend or relative you can ease the pressure on your adult child and it gives you the chance to make that choice yourself, rather than having it be decided under stressful circumstances later on.

2. Be sure to provide financial support for your pet. In most states, when you create a pet trust, you are permitted to instruct the trustee, the person in charge of handling the money in the trust, to make distributions to your pet’s caregiver on a monthly or annual basis. This can be done for either the remainder of your pet’s life or for 21 years, whichever is shorter. In some states, the cut-off is simply for the remainder of your pet’s life. This can be an important point if you have a less common type of pet, like a bird or lizard, who could live beyond 21 years after your death because their breed has a longer-than-average lifespan.

3. Comfort of your pet is important. Like many humans, your pet may have special medical needs, or personal preferences. You are allowed to put as many specific instructions as you wish into a pet trust. For example, you can state that the pet needs to see a certain veterinarian, for as long as that person is practicing, or that the pet needs to be seen two, three, or four times per year. You can also leave funds for a more expensive brand of food if your pet needs that brand. This can be important for many pet owners who want their companion to be comfortable after they are gone.

Are you interested in establishing a pet trust? Elder and Estate Planning Attorneys, PA, is a law office small enough to provide personal service but large enough to provide service in Jupiter, as well as Palm Beach, Martin, St. Lucie, and Indian River Counties in Florida. Our law firm will guide you through legal challenges involving elder law, estate planning, trusts, veterans benefits, real estate, and more. We encourage you to contact us and schedule a meeting with our attorneys.

What are the Different Types of Trusts to Use in Estate Planning?

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Trusts are an estate planning tool created for the management of assets, both during your life and after your death. Are there different types of trusts to use in estate planning? Yes, there are several types. They can, however, be divided into a couple of categories, which may make them much easier to understand. 

First of all, trusts can be either living or testamentary. Living trusts, also known as inter vivos trusts, are created while the trustor is still living. There are also testamentary trusts, which are created by a trustor after his or her death. 

Secondly, trusts are either revocable or irrevocable. In simplest terms, this speaks to whether or not they can be changed or revoked after they are created. There can be important legal implications of choosing between revocable or irrevocable. 

A revocable trust is created by a trustor, who also remains as the beneficiary until his or her passing, and then passes onto the successor trustee and beneficiaries. The easiest way to envision a revocable trust may be one created by a married couple, who remain as both co-trustors and co-beneficiaries until their passing and then, an adult child becomes the successor trustee and their other children, and possibly grandchildren, become the successor beneficiaries. A revocable trust can be revoked or changed at any time prior to the original trustor’s death. Accordingly, there are no tax benefits. Essentially, the revocable trust can function as a means of distributing assets to beneficiaries while avoiding the timely and costly probate process. 

As the name implies, once an irrevocable trust is created it cannot be changed, except under rather limited circumstances. Once the assets are transferred to the trust, they are no longer considered to be the property of the trustor, but rather, are the property of the trust. The benefits include limiting or eliminating both income and estate tax and usually the trust property cannot be reached by the trustor’s creditors. Another key draw of the irrevocable trust may be because the assets of the trust are no longer the property of the trustor, they are not considered, when determining the trustor’s eligibility for government programs, such as Medicaid, which can make them an integral tool in long-term care planning. Along the same lines, a special needs trust, which is most typically created to provide for an adult disabled child following the passing of their parents is most usually irrevocable, assuring the disabled child remains eligible for government programs. 

Now that you have an understanding of the fundamentals of trusts, it is a great time to meet with an estate planning attorney to discuss how best to meet your estate planning goals. Do you have questions? Please contact our law practice to learn more. We are here for you. Elder and Estate Planning Attorneys PA is a law office small enough to provide personal service but large enough to provide service in Palm Beach, Martin, St. Lucie and Indian River Counties.

How a family gifting trust can help shelter wealth and avoid taxes

There’s an old saying it’s better to give than receive, but did you know there’s a way to continue giving to your family even after you’re gone? A family gifting trust gives you the ability to shelter wealth over multiple generations while providing tax avoidance. The trust protects your assets from the ever changing estate and gift tax laws.

It also protects your wealth from risk created by your divorce, actions taken against your will by in-laws, an heirs divorce, or a deceased heir’s spouse who elects to take action against the heir’s will says Anne’ Desormier-Cartwright.

The family gifting trust takes advantage of annual gifting tax laws to distribute your wealth among many family members during your lifetime. After your death, the trust distributes wealth on a preferential basis to beneficiary groups. Elder and Estate planning attorneys PA is a law office small enough to provide personal service but large enough to handle all of your estate and planning needs.

How a Charitable Lead Trust may help in building your estate plan.

When planning your estate plan and deciding how best to protect your wealth from taxes you should consider the Charitable Lead Trust

The trust is useful for philanthropic endeavors, where charitable gifts are periodically given. Generally, a gift occurs upon creation of the trust and a significant income tax deduction is available in the year the trust is created, with the unused portion carried forward for five years in some cases.

“The Charitable Lead Trust also enhances your ability to transfer wealth to your children and grandchildren without incurring a gift or estate tax.” says Anne Desormier-Cartwright, of Elder and Estate Planning Attorneys, PA.

Control of the principal investment assets may be retained, and the trust may be created before or at death.

Elder and Estate Planning Attorneys PA is a law office small enough to provide personal service but large enough to handle all of your estate and planning needs.

Special Needs Trusts

Individuals with special needs often face much greater challenges compared to those without special needs. Quality of life can be compromised and added expenses may come into play. These individuals frequently rely on public benefits to help them to meet these costs. But the benefits often fail to meet all the needs of the disabled person. A special needs trust can help bridge the gap between public benefits and what the person really needs. The trust is specifically identified to meet certain supplemental needs and the enhance the quality of life for the beneficiary. The special needs person. Most importantly, the special needs trust is created so as not to disqualify the beneficiary for public benefits being received. Says Anne Desormier-Cartwright, of Elder and Estate Planning Attorneys, PA. A special needs attorney is essential for determining the right type of trust and how to construct it so a special needs person gets every benefit they’re entitled to. Elder and Estate Planning Attorneys PA is a law office small enough to provide personal service but large enough to handle all of your estate and planning needs.