Frequently
Asked Questions: Estate Planning
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F.Y.I.
If you do not have an estate plan, the state has
one for you.
Do I need a Will?
If I have a Will, is my
estate planning complete?
Do revocable(living) Trusts
avoid estate taxes after death?
How do I know if I should have a
Will or revocable(living) Trust?
Do
I need a Will?
That is
up to you. Remember, if you have no Will, the State
of Florida has one for you,
and you may
not be happy with what it says.
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If I have a Will, is my estate planning complete?
A Will is but
a very small part of a complete estate plan. While
Wills are important, they
do not control many important pieces of an
estate
plan.
For example, a Will has no legal affect regarding
retirement accounts or other assets that have
transfer clauses. In fact, a well drafted
Will should coordinate
with all other transfer methods effective at
death. A Will cannot assist you with powers
over your
health and property during an incapacity.
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Do revocable(living)
Trusts avoid estate taxes after death?
No. It is a common misconception that these
Trusts save estate taxes. Rather, these Trusts
are a method
to avoid certain judicial involvement in
controlling a persons property during incapacity
and after
death. In the appropriate circumstance, provisions
may be
added to preserve what is known as the estate
tax exemption amount in the same manner as
may be done
under a Will.
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How do I know if I should have a Will or
revocable(living) Trust?
Consultation with an experienced attorney
is the best approach as certain assets
may be inappropriate
for tax and/or non-tax reasons. For example,
an IRA
should never be owned by a revocable Trust
while very specific language is required
for a post
death subTrust(s) to qualify as IRA designated
beneficiaries.
Similarly, recent case law in Florida may
jeopardize the constitutional homestead protection
from
forced sale if such a Trust becomes the
owner of your
primary Florida residence.
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