Miami ESTATE PLANNING
ESTATE PLANNING FOR MIAMI RESIDENTS
Estate planning in Miami involves both financial planning and the implementation of legal documents (e.g., wills and trusts) to accomplish the objectives of the client. The goal of the estate planning lawyer is to prepare the legal documentation, but this should be done by considering the client’s financial plan, which requires coordination with the client’s accountant, financial advisors, and other key professionals that have been engaged for this purpose.
In this regard, what are the legal objectives of an estate plan? Primarily, the most common objective would be to avoid a burdensome “probate” process in Florida. In addition, the client may wish to shield his or her assets from creditors, protect and manage assets in the case of disability, protect beneficiaries from negative influences (including the inability to manage the assets inherited from the state), and caring for family members with special needs.
These objectives can be achieved through several alternative mechanisms. The most popular mechanism in Florida is the basic revocable living trust. However, in some cases, a simple will could suffice. Additional documents, such a power-of-attorney, should be considered as part of the overall package.
REVOCABLE LIVING TRUSTS
A revocable living trust is one of the most popular and effective estate planning tools in Florida. It is a flexible vehicle that allows for the efficient distribution of assets and can be amended, revoked, or terminated within the lifetime of the grantor of the trust. In this way, the grantor of the trust can document an orderly disposition of his or her estate without losing any control over his assets during his lifetime.
The Florida probate process tends to be lengthy, costly, and time consuming. Hence, the revocable trust has emerged as an extremely popular vehicle which substitutes for a will and thus avoids the need for a lengthy probate proceeding. However, to achieve this objective, the trust must be funded—in other words, the legal title to the assets must be transferred to the trustee. Note that the grantor can serve as the trustee of the trust.
What are the drawbacks of a living revocable trust? There are virtually no tax advantages to holding property in a revocable living trust since such property will be treated as being held by the grantor for both income and estate tax purposes. In addition, the revocable trust does not serve to protect a grantor’s assets from creditors. However, for many clients, these are not critical issues, and the revocable living trust remains an attractive option.
The client should keep in mind that up a revocable living trust does not constitute a comprehensive estate plan. We offer clients a basic revocable living trust package that will provide complete protection, including documents such as a pour-over will and advance medical directives. We will also make sure that the revocable living trust is properly funded so that it is legally valid. Premier Capital Law PLLC always strives to provide peace of mind through careful and effective estate planning.
BASIC WILL PACKAGE
Typically, the estate planning discussion with a Florida client will commence with a will. While the will is only one of many documents and matters should be considered as part of an estate plan, it is typically the starting point. A will disposes of the testator’s individually owned assets at death. The disposition occurs through the probate proceeding mentioned above. It is important to remember that the will does not govern the disposition of any other assets which do not pass through the probate process (e.g., retirement plans, insurance policies, or trust assets).
There are several statutory formalities which must be satisfied for the will to be valid. For instance, the will must be signed by the testator in the presence of at least two witnesses. Generally, Florida law allows for the execution of an “electronic will”, but an attorney should be consulted so that the client can carefully consider the legal requirements and implications of such document.
With our basic will and testament package, we offer clients who do not want to form a revocable living trust a comprehensive initial estate planning and tax consultation. During this consultation, we will discuss your circumstances and craft a viable plan that is consistent with your objectives. From there, we can prepare a will, power of attorney, health care surrogacy arrangements and any other relevant documents in accordance with your family’s needs.
ENHANCED LIFE ESTATE
Another option for Florida clients is what is known as an enhanced life estate, or more commonly, a “lady bird deed”. A lady bird deed allows the owner of a life interest in his or her house or other real property to maintain complete control over the property during their life and designate one or more remainder beneficiaries to inherit the property on the owner’s death. On the owner’s death, the life estate terminates, and the remainder passes to the designated beneficiary by operation of law. Thus, the passes to the designated beneficiaries outside of the probate process (and without the need for setting up what would likely be a more costly living trust).
The lady bird deed is an attractive option because the life estate owner retains his or her right to transfer, use and otherwise deal with the property during his or her lifetime, without needing to seek the consent of the remainder beneficiaries. The interest may also be modified or revoked at will. In this regard, the lady bird deed operates in a manner like pay-on-death financial accounts
Estate planning is simply the process whereby an individual (the "testator")prepares his or her legal documents in a manner that determines which individuals will inherit the testator's assets after their passing. The estate plan also includes documents which will address what will happen and who will be appointed to take care of the testator's affairs in the event of their death or incapacity. The estate plan consists of the various documents which is needed to accomplish the testator's specific objectives. If the testator doesn't set up an estate plan, Florida law provides default rules which establish how the estate will be distributed at death. Thus, it is important to consult an attorney and set up an estate plan to ensure the testator's wishes are properly implemented after their death.
The cost of estate planning will depend on your specific situation. Note that the estate planning process consists not so much in simple document production, but rather the careful and thorough advice provided by a competent attorney takes the time to carefully review your assets and your objectives. However, in any case, an estate plan is not a one-sized-fits-all solution. Some families will require a more complicated estate plan than others. Of course, we understand that fees are an important consideration, which is why we generally offer flat fee plans rather than bill on an hourly basis.
Most people in Florida opt for a revocable living trust. The main reason a revocable living trust is attractive its that it can be used to avoid the probate process. A will cannot avoid this process. Note, however, that a will could be a perfectly fine solution for smaller estates. It is also important to remember that a number of other documents (e.g., a pour-over will) are usually required as ancillaries in addition to the revocable living trust.
Yes, you can use Legal Zoom or other document automation software to prepare your own estate plan. However, most of our clients prefer working with a lawyer who can answer questions about estate planning and have the comfort of knowing the estate plan was prepared correctly. Legal Zoom does not offer legal advice, it simply provides document templates
We know your time is valuable and we strive to make the estate planning process as efficient and painless as possible. We begin the process with a free consultation (either over the phone or by videoconference) to discuss your options and explain our flat fee pricing model. Then, we begin drafting documents, while also collecting any relevant information about your assets and intended heirs along the way. Once the documents are ready, we have them signed, and this usually takes place within several weeks of the initial contact.
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