(941) 928-0310  |  mjs@sarasotalaw.biz
1 S. School Ave., 5th Floor, Sarasota, FL 34237 

      SARASOTA ESTATE PLANNING

   We represent a wide range of Florida client's in
   different life situations that can benefit from
   basic to sophisticated estate and tax planning
   techniques.  We design Florida estate plans
   with an eye towards achieving tax efficiency,
   maximizing wealth transfers, and ensuring that the final distribution of our clients' assets are in accordance with their wishes. For multinational families, we work with your advisors to plan transfers in light of U.S. tax laws.

Our Florida estate planning documents are drafted to protect the needs of special needs individuals (children and adults), and contain creditor, drug and alcohol protection provisions.  These provisions are designed to insure that "special needs individuals" do not lose eligibility for government benefits, creditors can not attach a beneficiaries inheritance, and protect an alcoholic or drug addict from wasting an inheritance. 

Our knowledge permits us to assist our clients with creative solutions to reach their goals and objectives.  

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THE FLORIDA ESTATE PLANNING DOCUMENTS YOU NEED:

Last Will & Testament: A Florida Last Will & Testament ("Florida Will") is a writing, signed by an Florida resident ("Testator") and two attesting witness, which meets the formal requirements set forth by Florida law. A Florida Will designates the individual(s) or entity that will serve as Personal Representative to administer the decedent's estate and the beneficiaries who will receive the Florida probate assets. A Florida Will can also establish a trust and designate who will serve as its trustee. A properly drafted and attested Florida Will controls over the automatic inheritance provisions set forth under Florida probate law. In the absence of a valid Florida Will, or if the Florida Will fails in any respect, Florida probate law will designate the beneficiaries and the method for selection of the Florida personal representative.

Revocable Trust: A written declaration in which a Florida resident (the "Grantor") transfers his or her property (real estate, brokerage and bank accounts, art, etc.) into a trust, for the benefit of his or her self, during their lifetime.  During the Grantor's lifetime, the document will reserve unto them complete control over the trust and its assets, including the right to amend or revoke the trust at any time.  No income taxes are due on the transfer of assets into the trust.

A "Trustee" will hold legal title to the trust property for the benefit of the Grantor, during his or her lifetime, and the ultimate recipients of the assets (the "beneficiary"). The terms and conditions under which the Trustee operates are defined in the Florida trust instrument. 

Florida Trusts fall into two basic categories: testamentary (created under a Florida Will and does not come into existense until the Testator passes away) and inter-vivos (created during the Testator's lifetime, typically a "Florida Revocable Trust").  Florida Revocable Trusts are generally used for the following purposes: (i) Asset Management - Permit the trustee to administer and invest the trust property for the benefit of one or more beneficiaries; and (ii) Probate Avoidance - at the death of the Grantor, the trust property will pass to whoever is named as a beneficiary of the trust and avoid the Florida probate court process. While the assets of a Florida Revocable Trust will be included in the grantor's taxable estate, the trust can be drafted so that the assets will not be included in the estates of the beneficiaries, thus avoiding taxes when the beneficiaries die.

The role of a Florida Revocable Living Trust is to (i) avoid probate when you die (especially if you own real property in multiple states), and (ii) avoid a guardianship if you become incapacitated.  A Florida Revocable Trust does not provide (i) creditor protection to the grantor, or (ii) income tax savings benefits. 

Power of Attorney:  Written instructions which designate another individual (the "agent" or "attorney-in-fact") to make financial decisions on a Florida resident's behalf. The document is typically utilized in the event that you: (i) are rendered incapable of making your own financial decisions; (ii) are unavailable; or (iii) require assistance. The powers granted to the agent may be limited to a particular activity (real estate transaction) or be overly broad (cover everything). The agents powers may: (i) take effect immediately or upon the occurrence of a future event (springing power); and (ii) be temporary or permanent authority to act on your behalf. Without a Florida power of attorney, no individual can represent you unless a Florida Probate Court appoints a guardian for your property.

Health Care Surrogate Directive:  Written instructions that set forth what actions should be taken for your health in the event you are unable to make health care decisions on your own behalf (due to illness or incapacity). The document appoints the individual ("health care surrogate") to make all necessary medical decisions in the event you are unable to express your preferences.

Living Will: Written instructions which allow you to determine how you want to be treated under certain medical conditions (given life-sustaining treatments in the event you are terminally ill or injured or provided food and water via intravenous devices). The document may appoint an individual to make decisions on your behalf if you are unable to do so.

"Life-sustaining treatment" means the use of available medical machinery and techniques, such as heart-lung machines, ventilators, and other medical equipment and techniques that will sustain and possibly extend your life, but which will not by themselves cure your condition. In addition to terminal illness or injury situations, most states permit you to express your preferences as to treatment using life-sustaining equipment and/or tube feeding for medical conditions that leave you permanently unconscious and without detectable brain activity.
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   METHODS TO PASS ON YOUR WEALTH DURING YOUR LIFETIME:

Gifts: While there is no actual limit on how much you may give during your lifetime, if you give any individual more than $13,000 (in 2010), you must file a gift tax return and report the gift to the IRS.  Gifted amounts above $13,000 will count against each individual’s $1 million lifetime tax exclusion for gifts. Each dollar of gift above $1 million will reduce the amount that can be transferred tax-free from your estate at death.
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          A PARENTS LETTER OF INSTRUCTIONS TO THEIR CHILDREN: 

Our client's are encouraged to create an informal document that will provide your survivors with information concerning important financial and personal matters that must be attended to after your death and clarify any special requests to be carried out upon death. Things that should be included in the letter of instructions:  

(i)    The location of important papers, including the Will, birth and marriage certificates,
        and military records.
(ii)   A summary of your investment accounts and insurance policies.
(iii) The location of documents relating to your personal residence, including an inventory
        of household contents and warranties and receipts for valuable items
(iv)  Details of the location of your safe deposit box, its key and list of contents
(v)   The location of prior year income tax and gift tax returns
(vi)  An expression of your funeral and burial preferences, including any advance 
        arrangements that have been made
(vii) The names and addresses of all individuals and institutions that should be notified of
        your death 
(viii) A list of your computer and website passwords  

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                  FLORIDA PLANNING FOR DISABLED BENEFICIARIES:

Supplemental Needs Trusts:  A Florida supplemental needs trust will enable a donor to provide for the continuing care of a disabled spouse, child, relative or friend (the “beneficiary”).  When properly drafted, the beneficiary will have access to the trust assets for purposes other than those provided by government (federal and state) benefit programs. This will ensure the beneficiary will not lose eligibility for government benefits (Supplemental Security Income, Medicaid and low-income housing).