Our Coral Springs Estate Planning Attorneys Can Help You Create A Customized Plan
Estate planning, sometimes referred to as simply wills and trusts, is one of the few areas of law that is applicable to nearly everyone. Not everyone will be part of a lawsuit, not everyone will get divorced, but everyone is likely to inherit property from another or leave property to be inherited by someone else.
If you’ve been meaning to plan your estate but don’t know how to get started, contact our experienced attorneys at Feldman & Feldman, Counsellors at Law, P.A.. For more than 30 years, our firm has been helping clients in Coral Springs and throughout South Florida make smart decisions about their assets to minimize liabilities and maximize the value that they can pass along to heirs and beneficiaries. We can help you create a plan that provides for those you love and leaves a legacy you can be proud of.
Table Of Contents
The Elements Of A Typical Estate Plan
Estate Planning During An Economic Downtime
Answers To Common Estate Planning Questions
What happens when someone dies without a will or estate plan?
Why should I hire a lawyer to help me with estate planning?
Should I wait to plan my estate until my kids are grown?
Do I need a trust? Should I have one?
When should I update my estate plan?
What’s the difference between elder law and estate planning?
Contact Us Today To Learn How We Can Help You
What Is Estate Planning?
The decisions and methods by which one person leaves their property to another is their “estate plan.” Depending upon the size and nature of your estate and what you would like done with it after your death, different types of estate plans are advisable. Everyone’s circumstances are unique, and everyone will benefit from thinking about their estate planning desires and taking the steps to ensure those desires are carried out (often with the guidance and assistance of an estate planning attorney).
The Elements Of A Typical Estate Plan
Creating a comprehensive estate plan involves crucial components that ensure your wishes are respected and your assets are managed effectively. Each element serves a unique purpose, providing security and clarity for you and your loved ones. Here are some typical elements you should consider including in your estate plan:
- Advance directives: These are legal documents that outline your health care preferences in case you cannot make decisions yourself. They include living wills and health care powers of attorney, ensuring your medical care aligns with your wishes.
- Trusts: Trusts allow you to manage and distribute your assets according to specific terms. They can help avoid probate, provide tax benefits and protect assets for your beneficiaries. Trusts are versatile tools that you can change to meet your specific needs.
- Wills: A will is a fundamental part of any estate plan. It specifies how your executor should distribute your assets after your death and can also designate guardians for minor children. A well-drafted will prevents confusion and disputes among heirs.
- Estate planning for snowbirds: If you split your time between different states, it’s important to consider estate planning for snowbirds. This involves understanding the legal implications in each state and ensuring your estate plan reflects your lifestyle and residency status.
- Lady Bird deeds: Also known as enhanced life estate deeds, Lady Bird deeds allow you to transfer property upon death without going through probate. They provide flexibility and control over your real estate during your lifetime while ensuring a smooth transition to your beneficiaries.
These elements together create a robust estate plan that addresses various aspects of your life and financial goals. Consulting with an experienced estate planning attorney can help you understand these options and tailor a plan that best fits your needs.
Estate Planning During An Economic Downtime
In times of economic uncertainty, such as during inflation, many people focus on day-to-day expenses like gas and groceries. However, estate planning remains crucial to protect your assets.
While it might not seem urgent, planning during a recession offers unique opportunities. When asset values like real estate or investments are lower, you can transfer more to your children or into a trust with less tax impact.
You should also take measures to protect your assets from future creditors. While you can’t transfer assets to shield them from current creditors like mortgage lenders or credit card companies, you can move them into business entities or specialized trusts to protect against future risks. This is important because unexpected events like lawsuits or unemployment can threaten your financial stability. With market uncertainties, taking steps to protect your assets can be a smart decision.
Reviewing your current estate plan is also essential in a down economy. Inflation and recession-related financial issues should be part of your overall estate and retirement strategy. Start by evaluating all assets, including real estate and investments.
Work with our experienced attorneys, who can help in estate management and estate distribution. This proactive approach ensures your plan adapts to changing economic conditions, securing your financial future.
Answers To Common Estate Planning Questions
Below, we’ve answered some of the questions prospective clients ask our attorneys most often. We would be happy to answer any additional questions you may have during an initial consultation.
What happens when someone dies without a will or estate plan?
Surprisingly, even those without a last will and testament have an “estate plan.” Should we die without a will (termed “intestacy”), state law determines who receives our property (usually a spouse and minor children, in specific amounts, then adult children, etc.). Of course, there are very good reasons to have a will, not least of which is determining for yourself how your assets will be distributed and to whom, rather than leaving the decision to the state.
Who needs an estate plan?
Why should I hire a lawyer to help me with estate planning?
Should I wait to plan my estate until my kids are grown?
No, don’t wait. Parents of young children can give themselves peace of mind by consulting an estate lawyer. Estate planning isn’t just about what happens to your possessions. It can also largely determine what happens to your minor children if you and their other parent were to tragically pass away. Thoughtful estate planning can make your wishes and preferences clear regarding guardianship, for instance. You can also establish one or more trusts to financially provide for your children immediately and into adulthood.
It is beneficial for everyone to start the estate planning process early, regardless of whether they have children. None of us knows what the future holds, which is why it is wise to be prepared sooner rather than later.
Do I need a trust? Should I have one?
Sometimes, an estate plan will require establishing a trust or other legal mechanism to achieve certain goals (e.g., minimizing estate taxes, avoiding probate, or caring for a special needs beneficiary). There are many different types of trusts commonly used in estate planning: a revocable living trust, an irrevocable trust, special needs trusts, credit shelter or by-pass trust, life insurance trusts, charitable remainder trusts and “QTIP” trusts. Each serves a specific purpose and can be of great benefit when used in the appropriate circumstances.
Trusts are not necessary or beneficial for every estate. However, they are sometimes the best or only way to achieve specific estate planning goals, and they are well worth the effort for the right estates. Our attorneys will take the time to understand your needs and goals and make recommendations about trusts accordingly.
What is the death tax?
The term “death tax” typically refers to the estate tax, which is imposed by the federal government and about a dozen states on the value of a person’s assets after their passing. Estate taxes are a liability of the deceased person’s estate and should not be confused with an inheritance tax, which is a separate tax imposed on a deceased person’s heirs. The federal government does not impose an inheritance tax, and only six states impose an inheritance tax. Florida, however, has no estate tax or inheritance tax, meaning only the federal estate tax would apply to Florida residents upon their death.
Fortunately, as of 2024, the federal estate tax currently exempts the first $13.61 million of a person’s assets from being taxed, and married couples can double that exemption. This means that the majority of estates will not be subject to any estate tax (except in very special circumstances, such as when very large gifts – millions – have been made during one’s lifetime). Under current law, the federal estate tax exemption will increase based upon inflation until 2025. Then, unless changed by future legislation, the current law will “sunset” and the estate tax exemption will be reduced to its 2017 level ($5.49 million for a single person and double that for a married couple).
If your estate is currently taxable, or may be taxable based upon the anticipated sunsetting in 2025, it would be prudent to consult with an estate planning attorney to discuss your options to reduce or eliminate your estate tax liability. If estate tax is not likely a concern, it is still prudent to consult with an estate planning attorney to discuss other important issues, such as probate avoidance, special needs planning and incapacity/long-term care planning.
When should I update my estate plan?
What's the difference between elder law and estate planning?
Contact Us Today To Learn How We Can Help You
From our Coral Springs office, Feldman & Feldman serves clients throughout South Florida. To discuss your needs with our knowledgeable and caring attorneys, contact us today to schedule an initial consultation. You can reach out online or call 954-228-6074.