By: Matt O’Kane
Here’s how the recent legislative changes will affect you:
Spousal Homestead Transfer
Two Legislative Changes to Pay Attention to
Life Changing Alzheimer’s Or Dementia Diagnosis? 3 Ways Guardianships Can Bring Stability to Your Family
By: Melody Lynch
A guardianship of the person permits a guardian to advocate for a ward’s physical needs and to participate in medical decisions, social decisions, and other decisions concerning the person such as where the ward should reside long-term.
A guardianship of the property alleviates the stress and pressure of financial management by giving a guardian the control to manage and invest the ward’s assets to provide for their care, maintenance, and long-term support.
Guardianships of the person, property, or plenary (both) provide assurance to the family that the ward will be taken care of and their assets will be preserved for their current and future care. While guardianships cannot change the medical diagnosis, they can provide peace and comfort so that the family can focus on the ward when they need it most.
An Alzheimer’s or dementia diagnosis is scary and can leave a patient and their family with more questions than answers. Legal guardianships can provide asset protection, stability, and comfort in uncertain times. While less restrictive alternatives to guardianship may exist in some circumstances, guardianships are a legal vehicle which provides oversight and structure to families in crisis. Guardianships bring order to families by appointing a guardian to manage the affairs of the person affected by Alzheimer’s or dementia – known as the ward.
Guardianships address three primary issues:
Lowndes Lawyers Successfully Obtain and Defend Probate Court Order Denying Request for Accounting and Settle Estate
By: Jennifer Dixon
Lowndes attorneys obtained a favorable ruling from a probate court in Lee County, Florida, on behalf of a decedent’s estate; and thereafter, secured an affirmance of the ruling from Florida’s Second District Court of Appeal. The decedent had provided in her will for certain distributions of personal property to a beneficiary. With assistance from Lowndes probate attorney, Julie Frey, the personal representative inventoried and distributed the personal property accordingly. The beneficiary acknowledged receipt of her distribution, and filed no objections to the inventory filed by the personal representatives. Several months later, however, the beneficiary filed a petition requesting an inventory and accounting.
Lowndes trial attorney, Richard Dellinger, argued to the probate court that the beneficiary no longer had standing to request an inventory and accounting because she had already received her entire distribution of personal property. Thus, pursuant to § 731.201(23) Florida Statutes, the beneficiary was no longer an “interested party” to the estate. The probate court agreed—finding that the beneficiary had not provided sufficient evidence that she was still an “interested party”—and denied the petition. An order of discharge was entered several weeks later, but the beneficiary did not timely seek an appeal. Instead, the beneficiary filed a motion to set aside the probate court’s order of discharge on the grounds that it was not served by the probate court after entry. The motion to set aside was denied, and the beneficiary timely appealed the denial of the motion to set aside.
Lowndes appellate attorney, Jennifer Dixon, defended the appeal, obtaining a per curiam affirmance in favor of the estate. Among the arguments made to the appellate court were 1) that the motion to set aside orders did not show a colorable claim for relief because it was neither verified, nor supported by affidavits; 2) that a lack of a certificate of service on a court order is not dispositive of whether the order was, in fact, served; and 3) that orders need not be served on “non-parties,” which includes beneficiaries to an estate who have already received a complete distribution. Ultimately, the appellate court found that the probate court did not abuse its discretion in declining to vacate the order of discharge, and Attorney Frey was able to proceed in closing the estate.
Choosing Guardianship for Seniors – Five Factors for Consideration
By Melody Lynch
A guardianship is a wonderful vehicle to assist seniors and their families in certain difficult situations. Filing a petition for appointment of a guardian over a loved one is a difficult decision that involves discernment and guidance.
Five factors for consideration prior to filing a petition for guardianship include:
(1) Whether the senior has adequate estate planning documents in place such that a less restrictive alternative to guardianship exists?
(2) Whether the existing estate planning documents are subject to challenge for lack of capacity, undue influence, or lack of proper execution?
(3) Whether the senior has a valid power of attorney and if so, whether that POA is sufficient to address the present needs?
(4) Whether the senior experienced recent or worsening cognitive decline as a result of dementia or other illness?
(5) Whether a family member, neighbor, or other person is taking advantage of the senior?
Depending on your answer to the above questions, guardianship may be the right arena to address the needs of your family. Once you decide to proceed with a petition for guardianship, the next step is to determine which type of guardianship is appropriate for your situation. Check back for future posts to learn more about the types of guardianships and call us if we may help guide you regarding a possible guardianship action.
Republicans Announce Tax Reform Framework, Which Includes Repealing Estate Tax
By: Amanda Wilson
Reducing the corporate tax rate to 20% (current rate is 35%).
Providing for a 25% tax rate (current maximum rate for individuals is 39.6%) for income from small businesses owned as sole proprietorships, partnerships and S corporations.
Providing for individual tax bracket rates of 12%, 25%, and 35% (a change from the current 7 rates that go from 10% to 39.6%).
Repealing the estate tax and the generation skipping tax.
Repealing the individual alternative minimum tax.
Doubling the standard tax deduction to $12,000 for individuals and $24,000 for married couples.
Increasing the child tax credit.
Eliminating most itemized deductions for individuals (including deductions for state and local taxes). There will still be tax incentives for mortgage interest and charitable contributions.
Limiting corporations ability to deduct interest.
Allowing corporations to expense the cost of new investments in depreciable assets other than structures for at least 5 years.
Repealing Section 199 deduction for domestic production.
Replacing the current tax system for U.S. companies operating abroad. U.S. companies will receive a 100% exemption on dividends from related foreign subsidiaries. Any existing accumulated foreign earnings will be treated as repatriated, with the corresponding tax spread out over several years. Earnings held in illiquid assets will be subject to a lower tax rate than earnings held in cash or cash equivalents.
After months of speculation, President Trump and the Republicans have announced their framework for tax reform. While specific details are not known, the key elements of the framework include: