Tiffany Law Estate Planning

Estate Planning: A Brief Overview

Estate planning is the creation of legal instruments that allow you to direct how your person and/or property will be handled, and who it will go to in the event of your incapacity or death.   

A well-established estate plan can simplify, rather than complicate. In other words, the right legal documents can minimize not only stress and legal battles between your loved ones, but also your estate's exposure to creditors, taxes, court fees, and attorney fees. If you want the power to control your financial and medical affairs, estate planning may be right for you! 

Do I Need An Estate Plan?

Here are a few reasons why you may need an estate plan: 

• Ensure your family does not have to battle in the courts for your assets. 
• Guarantee your minor children or disabled dependents are financially supported;
• Avoid probate court;
• Create a trust to benefit of persons whom may not be capable of handling their own finances;
• Qualify for need-based government programs;
• Establish legal guardianship for your children in the event something happens to you.
• Whether estate planning is right for you is a question that involves a keen evaluation of your specific circumstances.

Different Aspects of Estate Planning 

Below, we discuss a few common estate planning vehicles.

Last Will & Testament 

The standard purpose of a last will & testament is to direct how your assets and liabilities will be handled in the event of your death. In a last will & testament, you state who you want to inherit your real property and personal property. You can also name guardians for minor and disabled children in your will. 

It is important to note that a will does not avoid probate court and in Florida, becomes a public document once the probate proceeding is complete. Despite the lack of total privacy, a last will & testament can still be useful for various reasons, such as naming guardians for your minor or disabled children. 

Florida courts will only recognize and honor a properly executed and witnessed will. As such, it is imperative to consult with an experienced attorney not only to determine whether a last will & testament is right for you, but to ensure that the document holds up in court.

Trust

In simple terms, a trust is a legal vehicle that owns property that is managed by trustee(s) for the benefit of beneficiaries. A properly funded trust avoids the probate process upon death of the settlor (creator of the trust), and keeps the trust's asset information private. 

Here are a few benefits trusts can provide: 

• Financially provide for minor and disabled children during their lifetime; 
• Protect beneficiary assets from certain creditors; 
• Employ tax strategies that minimize tax exposure for estates that exceed  the federal tax exemption; 
• Avoid probate court;
• Keep assets out of the public eye; 
• Help beneficiaries to qualify for needs-based government programs such as Medicaid;
• Automatically transfer assets without being frozen upon death. 

You do not need to be an extremely wealthy person to experience real benefits from a trust. Not only are trusts great vehicles for reducing exposure to debt creditors and avoiding probate court, but you can make receipt of trust funds conditional and as specific or simple as you desire. 

Health Care Advanced Directives

We also assist our clients in creating health care advanced directives so you can direct how health care decisions will be made on your behalf in the event that you are not able to make medical decisions for yourself.  

Power of Attorney

Power of attorney is legal authority that allows one person, the "agent" to legally act on behalf of and/or make legally binding decisions another person, the "principal." A power of attorney generally allows the agent to act with regard to financial and personal matters, but not health matters.  What is not commonly known, however, is that Power of attorney can be limited to a specific transaction, or even limited to a specific type of action that the agent can take.