More Common Mistakes Involving Estate Planning
May 6, 2020
It is important to plan for the ideal future, but to also have contingencies in place if (and when) the story deviates from the desired narrative. This is where estate planning comes in – it enables individuals and couples to plan for such eventualities as death as well as such potential issues as illness and incapacitation. While many assume that estate planning is for families with complex estates, it can be useful to nearly every family for avoiding potential legal issues, unnecessary expenses and other important matters.
It was about a year ago that we outlined three common estate planning mistakes. These were:
- Forgetting key elements
- Failing to update the estate plan regularly
- Keeping estate plans a secret
Other Mistakes to Avoid
There are other matters to consider when creating or updating an estate plan. These include:
- Not planning for disability: Unless someone has already cared for a disabled individual, disability is not an issue many will contemplate. It is important to do this because it can have a major impact on finances, the care for the family, or healthcare decisions made on your behalf. This can be handled through a living trust or appointing a power of attorney.
- Not gifting money: Gifting is a simple way to move up to $14,000 per spouse to others without the gift being taxed. Not only can this have a positive impact on their lives, but it can also reduce your tax obligation.
- Putting a child’s name on the deed: Gifts worth more than $14,000 are taxable, so it better to pass the home through inheritance.
- Choosing an executor who is wrong for the job: They may be a blood relation, but they may not be comfortable making financial decisions, handling paperwork or are unable to take the time to address the many obligations involved.
- Procrastinating: Estate planning is easy to put off until it is too late. This leaves families to deal with a lot of stress even as they go through the mourning process.
Start by Meeting with An Estate Planning Lawyer
Sitting down with a knowledgeable estate law attorney here in Florida is the beginning of a process that is both meaningful and liberating. An attorney with experience in this area can guide clients through the decision-making process and provide options that fit their goals. They can also offer a variety of services to the family as it goes through probate and addresses other matters. It all adds up to peace of mind for the client as well as their family.
If you co-own a property and want to sell, but the other party doesn’t, you may wonder what your legal options are. The situation is quite common. When co-owners do not agree on the sale of the property, they may feel that litigation is the only option to resolve the dispute. However, that is not correct.
Real estate purchasers in Florida are often at a loss for understanding what conditions of the sale should be established in writing and included in the deal. Real estate transfers can appear as relatively simple transactions, but the truth is that they can be very complicated when misunderstandings exist between contracting agents. Although there are multiple details that should be included, there are three primary components that must be spelled out in writing for all parties.
Trusts can be a great tool for estate planning. In a trust, one party puts assets into an instrument that a trustee manages. This individual looks after the funds until they pass to a beneficiary. In Florida, almost anyone can be a trustee as long as he or she is an adult of sound mind. A corporation, like a bank, can also act as a trustee. So can a professional, like a lawyer. In some cases, testators choose a family member or friend to be a trustee.
Your loved one’s will in Florida doesn’t have to be the last word on their estate. You can’t contest the will because you don’t like the outcome, but you could contest the will if you suspect that it’s not legally binding. A judge might use an earlier version of the will or distribute your loved one’s assets according to state law instead.
Many people looking to sell their home falsely believe that they have a short window to do so each year. However, sellers in Florida should inform themselves of the benefits of marketing their home during every season.
Commercial real estate also referred to as CRE, has recently become a more popular choice among real estate investors thanks to its growth potential and ability to provide passive income. If you are considering investing in CRE in Boca Raton, Florida, there are certain things you should know before you begin your career as a real estate investor.
People in Florida who are wondering whether they should simply write their own will or estate plan without seeking legal assistance should keep in mind that not everything that is permissible is necessarily a good idea. Preparing a do-it-yourself estate plan might be one of those things.
If you are a Florida resident when you die and own any property in your own name without naming a beneficiary, your estate will be subject to administration, also known as probate. This is generally true whether you die with or without a valid will. A probate proceeding may also need to be initiated if you own real estate with another person. However, probate may be avoided by owning property in a revocable living trust.
Planning your will in Florida allows you the opportunity to make sure things go smoothly for your family members after you pass. An improperly or incorrectly executed will could end up failing to achieve your goal of having your wishes followed.
There are many moving parts within the commercial aspect of Florida real estate. Some aspects can be used to improve a home’s value while others allow the owner to utilize the property for the pursuit of a business venture. Of these includes the disposition of real estate. This is when you liquidate property to obtain additional cash. The following includes further information on this term as well as tips on how to properly navigate it to ensure the best results possible.