By Julia L. Frey. One of the most important decisions one can make when setting up a trust for a child or other loved one is determining who to name as the trustee. It is a job (not a cake-walk) that requires dilegence, an understanding of the fiduciary responsibilities and an understanding of what the grantor’s intent is for distributions under the Trust. Over the years I have seen family members or friends named as trustees who have not understood the depth of their role or were not capable. In one case, a family came to me after a family member stole all of the trust money to feed his drug habit, leaving the beneficiaries without any recourse as he had no means to repay the stolen funds. Corporate trustees or co-trustees are often the answer to avoid such problems. A just read a recent article in Worth Magazine by Patrick Kenefick with Neuberger Berman that was right on point so I commend it to you for your reading. http://worth.com/index.php?option=com_advisors&id=2005&view=single
Same-sex couples now have options!
By: Julia Frey
Before yesterday, when I prepared estate planning documents for same-sex couples there was a quagmire of issues that had to be addressed, since the State of Florida did not recognize same-sex marriages. As of yesterday, all over the State of Florida, gay and lesbian couples have been able to be legally married in Florida. What does this mean for a same-sex couple? With marriage comes various legal rights and obligations, so you should meet with your estate planning attorney to discuss those issues. If you already have an estate plan in place, and you get married, then you need to contact your estate plannning attorney to update your documents to reflect the new marital status. If you don’t have a Will, Trust, or financial or health care power of attorney documents in place, you should now do so. You should also have your attorney review with you how your assets are titled, and determine whether there is a better way to title assets to provide increased asset protection. In short, this is great news, but after you get married take the next step and get your legal documents in order as well!
Rule #1 in Asset Protection Planning: Don’t Procrastinate!
By Jason Palmisano. Don’t wait until you are sued or threatened with a lawsuit to begin planning to protect your assets. If you do then it may be too late. Transfers after the sharks are circling in an attempt to move assets out of the reach of your judgment creditors (or potential judgment creditors) could be deemed a fraudulent transfer. Florida Statute 726.105 provides a transfer made by a debtor is fraudulent as to a creditor if the debtor made the transfer “with actual intent to hinder, delay, or defraud any creditor of the debtor”. One of the key factors in determining the debtor’s intent is whether or not the debtor had been sued or threatened to be sued before he or she transferred the assets.
How not having a Will can wreck a family.
By: Julie Frey
I have long talked about how important it is to have your affairs in order, while you have the ability to do so. I am a WMFE 90.7 fan, loyal listener and am currently serving as Chair of the Board. A few nights ago on my way to the airport to pick up my son from college I was listening to “On Point” on WMFE. The show was about a family whose mother did not have her durable power of attorney or health care documents in order and then got ill. The family members then fought over how to care for their mother. When the mother died, with a modest estate, the family then continued to bicker about the possessions and the small amount of money left to distribute. The end result was a family divided. A family who does not talk to each other. These rifts sometimes never heal. While thinking about one’s mortality is not fun, leaving a mess for those left behind is not a good legacy either. Talk to your estate planning attorney who can help you prepare a plan that meets your needs and helps keep this from happening.
Unfortunate consequences of not making a will
By Julie Frey
There are some important considerations before thinking that you do not need a will. In this video, I discuss some concerns of not having a will and provide some typical examples I have run across in my practice. For example, without a will, you are unable to exclude or include beneficiaries. Instead, you must depend on the law and the government to decide the economic fate of your family and loved ones. I talk about some of these circumstances and provide some solutions in the video below. Click on the play button below to learn more: