Palm Beach FL Estate Planning & Litigation Law Blog

For Florida parents with children under the age of 18, the naming of a guardian for minor children is an important part of an estate plan. Generally it is relatively simple to nominate a guardian and even though it may be difficult to talk about, a guardianship plan should not be put off. In this post we will address some common issues about establishing a guardianship for minors.

Before parents can select a guardian for their children, they need to consider the people in their lives who would be a good guardian. When choosing a guardian the most important factor is to know and trust the potential guardian. The person should be in a position to provide stability, and parents may want the potential guardian to live in their geographic area in order to keep the children close to an established support system.

Once parents select one potential guardian think about designating multiple guardians. A good guardian today may not be a good guardian tomorrow. For example, grandparents may not be in the position to be guardians in the future if they have undergone changes in health. Therefore name second and third choices. After the list of potential guardians is developed, parents can designate who they want as their children's guardian by naming the person or persons in a will.

Be aware that a person who is nominated as a guardian in a will does not have to accept the position, and that is all the more reason to name multiple potential guardians in a will.

Only 45 percent of Americans today have a will. So many Americans and folks in Florida lack estate planning because many people put off estate planning and because many people overcomplicate estate planning decisions to the point where a plan is not created. While estate planning can be complicated, it does not have to be. This post will discuss a few points to encourage thought about estate planning and the appropriate choices to make for your plan.

If you have children under the age of 18, a will is important because a will can name a guardian in the case that you or your partner passes away. While naming a guardian may sound intimidating, the point is to name a trustworthy person. As circumstances change, the will can be updated to name a different guardian.

If you own a home, vacation property or other investment property, then a trust may be a good estate planning tool. If your home or property is jointly owned with your spouse or partner, the property will go through probate upon the second death of the owning individuals. If you are single and own property, the property will go through probate upon your death. If you want to avoid probate, a trust may be the right choice.

If you have a fairly modest estate and are able to name a beneficiary to all of your assets, then you may not need a trust or will. If you do not own property, have less than $5 million in assets and all of your assets are held in banks accounts, retirement accounts and brokerage accounts, you can name a beneficiary for each account and likely bypass probate. Remember to name at least one beneficiary to each applicable account and to update the names of beneficiaries regularly.

As the New Year starts, people in Florida should take time to review and update their estate plan. The New Year can be used to review changes in personal circumstances, the law and other factors. This post will talk about a few items to consider during the review of your will, trust and other documents that make up your estate plan. The list of items is not comprehensive.

An important tool in an effective estate plan is to select a trusted person to act on your behalf in legal and financial matters in case you suffer an illness or disability that is incapacitating. A durable power of attorney can address that issue and will cover a period of time when you may not be able to handle your own legal and financial affairs.

A second point to consider is to update basic estate planning documents to ensure that identified sums going to individuals or a trust make use of current and anticipated estate tax exemptions. In the recent past, attorneys used phrases like "that portion," "that fraction," or "that amount" to create formulas that met rising exemptions. In the future the exemptions may go down and if the language is used in your will or living trust documents it may be time for an update.

New parents and parents who had children after the creation of their most recent estate planning documents should update those documents. A guardian should be identified for minor children or children with disabilities. Financial issues regarding the assistance of children should also be reviewed. Parents should also update estate planning documents if they have gone through a divorce.

When it comes to estate planning in contemplation of that journey everyone must take, it is as important to think about estate administration which will occur after you have gone. Determining where your assets will go and on what terms is not the only consideration that needs to be made. Especially for wealthier individuals, the estate does not simply get divided after your death. Estates often continue earning profit for the advantage of the beneficiaries, and that requires management.

The executors of Michael Jackson's estate recently asked for and received an increase in their "paycheck" after turning the once bankrupt estate into a profitable multi-million dollar one. Although the increase comes directly out of the income made by the estate, the beneficiaries were more than willing to agree. Without the successful management, the estate would have been worth almost nothing.