Four Situations in Which You Need to Update Your Estate Plan

April 1, 2020

As we all know, the situations in our lives are constantly changing and developing. The future you imagined for yourself five years ago is likely not the same as the present you are living in or the future you are anticipating today. That’s definitely not a bad thing — it’s just the nature of life! However, the ever-evolving nature of things does mean that it’s important to keep your estate plan updated to fit with your present intentions. Read below to learn about four situations in which you really need to review and update your estate plan.

• It has been 3 or more years since you last reviewed your estate plan with your attorney.

As a general rule, you should never let more than three years pass without reviewing your estate plan. In our experience, we have found that this is what it takes for you to be able to rest assured that you always have a plan in place that is relevant to your current needs and desires

• A new child, grandchild, or other descendent has been born.

When your family grows, estate planning probably isn’t the first thing on your mind. However, a new descendent is likely someone you would want to name as a benefactor. If you want to be able to provide support to this child after you pass away, this will need to be addressed in your estate plan. Time for an update!

• You get married.

Marriage is a beautiful declaration of love. Keep in mind that it is also an economic choice. As you tie your lives together in matrimony, you also link your finances. If either you or your future spouse have children from a previous relationship, you should definitely meet with an Estate planning attorney before you get married. 

• A loved one passes away.

When you face the heartbreak of losing someone you hold dear, it can be difficult to think about anything else. However, if they were set to inherit any property from you after your own death, or if they were otherwise involved in your estate plan, their death means that you will need to review and update it.

If you find yourself in any of these situations, or if you don’t have an estate plan in place, you need to contact an experienced estate planning attorney. The ElDeiry & ElDeiry team is here to help. Give us a call at (954) 670-2800.

Turning 18: Why You Need a Health Care Power of Attorney

March 20, 2020

On your 18th birthday, you legally become an adult. This brings along all sorts of exciting privileges. You can vote! You can get a tattoo! You can buy cigarettes and lottery tickets! You can open your own credit card and sign contracts on loans, car payments, houses, and more. But there’s one aspect of becoming a legal adult that many people don’t think about until it is too late and they find themselves in a pickle. 

After you turn 18, your parents are no longer your legal guardians. That means that if you are injured in an accident and unable to give consent (i.e. unconscious), your parents will not be able to speak to your doctors about your condition, or in some cases even see you. HIPAA (the Health Insurance Portability and Accountability Act) prevents doctors from sharing your medical information with anyone without your express permission.

This is why, as soon as you turn 18, you need to set up a health care power of attorney, also sometimes referred to as a medical power of attorney. If you are a college student or young adult and would like your parents to be able to make decisions on your behalf if you are incapacitated, you need to make these legal arrangements as soon as possible. Every day that you go without them is a risk. 

If you are the parent of a young adult, you need to make sure that they are aware of the ways in which HIPAA would restrict you from helping them if they were injured. It is wise to have a conversation about why a health care power of attorney is necessary, and then offer to schedule them an appointment with an estate planning attorney to complete the paperwork. You cannot force your child to make you their health care power of attorney — as an adult it is their choice. 

You may hear some people or websites suggest that you can create your health care power of attorney alone, without the help of a lawyer. We highly recommend NOT following that advice, and not just because we’re estate planning attorneys! When it comes to a health care power of attorney, it is absolutely essential to get all the details right. If it is not completely accurate, as well as signed, witnessed, and notarized correctly, it will not be usable, and you probably won’t realize until it’s too late.

If you’re ready to create a health care power of attorney, contact ElDeiry & ElDeiry, P.A. We would be happy to help you take this step in becoming an adult with a plan. To schedule an appointment, just give us a call at (954) 670-2800. We look forward to partnering with you!    

Estate Planning 101: The Revocable Living Trust

February 21,2020

Today we’re spotlighting one of our favorite estate planning tools: the revocable living trust. One of the best things about revocable living trusts is that they allow you to have some power over how your descendants or other loved ones utilize the money they inherit from you after you die. 

What are the benefits of a revocable living trust?

• Because it is revocable, you are still in control of the assets as long as you’re alive. You can make changes to the trust as you please.
• The assets in the trust get to skip the probate process, which is great news for your loved ones because probate can be expensive and time-consuming.
• Your privacy is protected. (Probate matters become public record.)
• You still get to have income earned by the trust’s assets.

Are there any less desirable factors at play with revocable living trusts?

• Unlike some other estate planning tools, revocable living trusts don’t help with taxes. Income from the assets in the trust will be taxed as well as subject to legal action by creditors.
• It may be a slight hassle to have to re-title all of the property in the name of the trust once the trust is established. 

How do I create a revocable living trust?

You can create a revocable living trust by first appointing a trustee in writing. The person you name trustee will be responsible for managing and administering the property and assets in the trust. For instance, they might disperse a certain amount to beneficiaries per year or per month as you instruct in your written agreement. There are many different ways for a trust to be managed, and you will be able to make the decisions. Your trustee can be any trusted adult, or even a bank or trust company. However, if you choose a bank or trust company, there will be significant fees.

Next you transfer whatever assets you want, from real estate to stock investments, into the trust. As mentioned above, this will involve retitling them. Once they are in the trust, you are no longer the owner of them. Instead, they are owned by the trust. 

With a revocable living trust, you maintain control of the assets until you die. At that point the trustee will begin dispersing the assets to your beneficiaries as per your instruction.

Who can help me create my revocable living trust?

You need an experienced estate planning attorney to guide you through the process of creating your trust. It is important that every detail is correct so that the trust will be legal and efficient. The team at ElDeiry & ElDeiry, P.A. is here to help clients in the Fort Lauderdale area with all of their estate planning needs, including the creation of revocable living trusts. Give us a call at (954) 670-2800 to get started.

Understanding Powers of Attorney

January 20, 2020

Powers of attorney can be a helpful tool for people of all ages. Whether you’ve been diagnosed with a disease that could make it difficult for you to function in the future, or you’re just planning some extended travel outside of the country, a power of attorney can help you make sure that your affairs will be handled even when you cannot handle them yourself.

What is a power of attorney?

A power of attorney is a type of legal document that you can use to authorize someone else, called an “agent (whether it’s an individual or an organization) to make decisions on your behalf and represent you in your affairs. 

Who needs a power of attorney?

Establishing a power of attorney is a good idea for nearly everyone. Although it’s scary to think about, anyone could be in an accident that leaves them suddenly incapacitated. If you’re in a coma, who will manage everything that you have going on?

Are there different types of powers of attorney?

Yes. There are different types of powers of attorney that grant the person or organization in question different levels of powers regarding different matters, from business to finance to healthcare.

I’ve heard the adjective “durable” used in association with powers of attorney. What does that mean?

A durable power of attorney is any power of attorney that includes a durability provision. The durability provision makes sure that the document stays valid if you suffer from illness or an accident that incapacitates you. 

How do I choose who to appoint as my “agent”?

Your agent should be someone you trust to act in accordance with what you want. Many people choose to appoint a relative or a close friend. They need to know and understand your wishes as well as your values relating to whichever part of your affairs you are giving them to manage. For example, the agent of your healthcare power of attorney should know how you feel about things like being kept on life support.

Who can help me set up powers of attorney?

To properly set up powers of attorney, you will need the guidance of an experienced estate planning attorney. The team at ElDeiry & ElDeiry, P.A. is here to help. If you’re ready to protect your future, give us a call at (954) 670-2800. We look forward to hearing from you!

No Estate Plan? Here’s What Happens When You Pass Away

December 12, 2019

At ElDeiry & ElDeiry, P.A., we are constantly reminded of the importance of having an estate plan in place. We are familiar with the frustrating and expensive repercussions that loved ones face when someone passes away without an estate plan. But just how frustrating and expensive is it? It today’s blog post, we’re helping you get a clearer picture of what happens when you pass away without having an estate plan.

Being without a Will means that your estate is “intestate.” This means that since you did not state your wishes about what should happen to your estate after you pass, it will be up to Florida law to decide what happens on your behalf. 

If you were married at the time of your death and had no children or grandchildren outside of your marriage to that person, your entire estate would go to your spouse. If you were married and had children and/or grandchildren from a different relationship, your spouse would get half of the estate and the other half would be distributed among your descendents from outside that marriage. This occurs “per stirpes,” which means every descendent gets an equal share. For example, if you are widowed and had two children and they each had two children of their own, but one was deceased, your living child would get 50% of your estate and your deceased child’s children would each receive 25%. If you have no spouse or descendants, your estate would go to your parents. In the absence of parents, it would go to grandparents, and so on. If you have no direct ascendent relatives, it would then go to siblings, aunts, uncles, etc. As a last resort, your estate may pass to any living descendants of your grandparents, with half going to the maternal side of your family and half to the paternal.

Sounds complicated, right?

What’s worse, is that intestacy laws can exclude some of the people you love the most. Do you have stepchildren who you love as if they were your own? They’ll receive nothing from you. Any charitable donations you had in mind? Those won’t happen. Wanted to leave money to someone who wasn’t related to you by blood? Intestacy law doesn’t allow for that, unfortunately.

But what about the “expensive” part?

With a good estate plan, you can use tools like trust which can help you avoid the Probate Court Process altogether, as well as to to protect some of your assets from estate taxes. Without an estate plan, your estate is unprotected. Florida does not have any state-level estate taxes, but on a Federal level, estates are taxed at a marginal rate of up to 40%. This can take a huge chunk out of what you’ve spent your life building. 

Who can help me create an estate plan?

If you want to make sure your assets pass to the people you want them to, as well as helping your loved ones avoid the time, expense, and emotional drain associated with Probate Court after you pass away, contact ElDeiry & ElDeiry, P.A. today. Our friendly team can help you get started. We work hard to make the estate planning process as easy as possible for our clients. Give us a call at (954) 670-2800 to get started.

Three Reasons a Will Might Be Contested

November 20, 2019

When a loved one passes away, most people want to act in accordance with the person’s estate plan and respect his or her wishes. However, there are sometimes occasions where those involved do not believe that the Will accurately reflects the deceased’s wishes. If you are in this situation, you can contest the Will. To contest it means to oppose or challenge its validity in probate court. When you successfully contest a Will, it becomes invalidated and gets thrown out. Read on to discover some situations in which a Will might be contested.

• The deceased person did not have testamentary capacity when they signed their Will. 

Did the person signing the Will (also known as the testator) understand what they were doing? Did they understand the value of their assets? Did they understand that signing the Will was a legal action? If the answer to any of these questions is “no,” it means the person lacked testamentary capacity and their Will should be deemed invalid. This often occurs in cases where the testator has been diagnosed with dementia or Alzheimer’s.

It can be difficult to prove testamentary incapacity. However, if there was a doctor’s appointment at which they were clearly confused within a few days of signing, you may have what you need to make a case. 

• There was undue influence.

Did the testator sign the Will of their own free will? If anyone exerted an unfair level of pressure on him or her, it may be considered undue influence. Keep in mind that nagging, and even some types of verbal abuse, do not meet the threshold for undue influence. There’s more likely to be a strong case for undue influence if the person in question isolated the testator from family or paid for the testator’s Will. 

• The testator was tricked or otherwise frauded into signing the Will.

In some cases, testators have signed Wills while under the impression that they were signing a deed or power of attorney. Again, the testator has to be fully aware of what he or she is doing by signing and must be doing it of his or her own free will. If you can prove that the signature on a Will was procured by fraud, the Will could likely be declared invalid.

Who can help me contest a Will?

If you think you have strong grounds on which to contest a loved one’s Will, call ElDeiry & ElDeiry, P.A. We have extensive experience helping clients who are facing these types of frustrating situations. We understand how important it is to make sure your loved one’s wishes are truly followed. Call (954) 670-2800 to get started.

A Brief Overview of Business Succession Planning

October 20, 2019

As a business owner, you have put a lot into your company. Beyond the obvious financial investments and sacrifices you’ve made, you’ve poured your ideas, time, and energy into building your business to its current state. That’s why it’s so important to include business succession planning in your estate planning efforts.

Figure Out When You Want to Leave

Perhaps one of the most important questions to answer as a business owner is “When do I want to leave?” Maybe you want to work to retirement age, sign over full rights to the business, and spend your golden years completely free of any work responsibilities. Maybe you want to maintain ownership until you pass and include it as part of your estate. Perhaps you’d like to step down at an early age but still have a hand in running the business. No matter what you decide, you should spend some time considering your options.

How Involved Do You Want to Be?

Another part of business succession planning is figuring out how involved you want to be after you step down as owner. Some owners choose to completely leave the business after selling it or passing it on, but others choose to stay on in an advisory role to support the new owners and keep the business on the same path. Others combine the benefits of both options by temporarily serving in an advisory role during the transition and stepping down afterward.

Figuring Out Your Company’s Value

If you want to pass ownership of your business to a family member or loved one, you don’t have to worry about getting a fair price for it. However, if you plan on selling part or all of your business, proper business valuation is essential. Common methods of business evaluation include asset-based valuation, which combines the value of all of the assets owned by the business; competitive analysis, which compares your business to similar businesses in the area; and earnings multiplier, which is based on the annual earnings of the business. 

Planning for Your Transition

Your estate planning attorney can help you create a plan that honors how and when you want the transition to happen. You’ll decide which circumstances will trigger the handover or sale of the business. For example, you may choose to hand over the business if you become disabled or incapacitated, at a certain age, or upon your death. 

Make sure that your business continues to thrive and serve your community after your passing with a comprehensive succession plan. For more personalized advice, reach out to ElDeiry & ElDeiry, P.A. at (954) 670-2800.

4 Commonly Asked Estate Planning Questions Answered

September 20, 2019

At ElDeiry & ElDeiry, P.A. we have been crafting practical, intelligent estate plans for individuals, families, and business since 1997. We’ve become very familiar with the questions that people have about estate planning, and in today’s blog post we’re going to answer some of our most commonly asked questions.

1. Where should I store my estate planning documents?

Estate planning documents need to be stored somewhere safe and easy to access. A safe deposit box meets these criteria while you are living, but if it is only in your name, your family may have trouble accessing it without you. 

The best place to store your estate planning documents is actually with your attorney! We can hold onto it for you and make sure your family has access to it after you die. At the very least, your attorney should retain copies of your estate planning documents in case the originals are lost, damaged or stolen.

2. How often should I review my estate plan?

We recommend that our clients review their estate plans every three to five years. The more often you make sure it reflects your current wishes, the more certain you can feel that everything is in order just in case anything ever happens to you. Circumstances change, and it is important to make sure your estate plan reflects any big changes to your financial or familial life.

3. Can I prepare my own Will if my situation isn’t very complicated?

We tell our clients that trying to prepare your own Will is a bit like trying to repair a leaky sink without any plumbing experience. It can sometimes cause a flood, so to speak, and make your situation worse instead of better. Though you may see plenty of tutorials and tips online for preparing your Will on your own, it’s really best to seek the help of an experienced professional. With the help of a lawyer, you can make sure you get all the details right and your Will won’t be a source of stress for your loved ones after you are gone.

4. What are the benefits of having a Will?

A Will states where you would like your assets to go after you are gone. This could be to your spouse, your children, a friend, a charity, or a combination of places. A Will alone will not prevent your assets from having to go through probate, but when combined with a full estate plan, you can avoid this expensive and time-consuming process.

If you need more information about estate planning or if you’re ready to get started with yours, ElDeiry & ElDeiry, P.A. can help! Call us today at (954) 670-2800.

“Trust” Us: A Brief Overview of 5 Common Florida Trusts

August 20, 2019

There are several different types of trusts – a property that is held by one party to protect it for the beneficiaries of the property owner – although each state allows different types of trusts, depending on the statues of the state. Here in Florida, there are several trust options, but determining the right one for your needs usually requires the assistance of a Florida attorney who specializes in trusts and estate planning so that your financial assets are best protected.

Not all trusts meet every financial need, and what works for a family member may not work for you. Here, we take a look at some of the different types of trusts available in Florida to help give you an idea which trust is best suited for you to ensure that your property is protected after you pass away.

• Land trusts. Land trusts, which can include the family home, helps keep asset ownership private, can prevent land from becoming part of a lawsuit filed against you. Land trusts also protect property from entering probate, and makes it easier for multiple parties to own the property.
• Revocable living trust. The most common type of trust in Florida, a revocable, or inter vivos, trust is put into place while the grantor of the trust is alive, and can be amended or revoked at will. They can be used as a means to dispose of your assets without having to go through the Probate Court system. 
• Irrevocable living trusts. Irrevocable trusts are trusts that transfer assets out of the control of the property owner, so those assets become the property of the trust. The terms of an irrevocable trust cannot be changed, but it protects beneficiaries from both probate or estate taxes.
• Testamentary trusts. Testamentary trusts are part of a person’s Will and they go into effect at their death. Also known as Will trusts, testamentary trusts are used when someone wants to leave assets to another, but does not want them to receive those assets until a certain point in time. A grandparent who wants to leave assets to a grandchild when the grandchild turns 21, for example, would likely choose a testamentary trust to make sure that his or her wishes are fulfilled. A testamentary trust is irrevocable.
• Medicaid trusts. These trusts are put into place to ensure that your children will receive an inheritance even if you end up requiring long-term nursing home care. Under a Medicaid trust, assets are sheltered, and cannot be taken to cover nursing home costs. You will not have access to the funds in the trust during your lifetime.

For help determining which trust is right for you, ElDeiry & ElDeiry, PA can assist you so you understand the benefits and drawbacks of each type of trust, allowing you to be better able to make the right decision. Contact us today to schedule a consultation.

A Brief Overview of Florida Probate

July 20, 2019

Probate is a process that occurs after a death to 1) collect the person’s assets that are in his/her name alone; 2) determine if there are any creditors; and 3) distribute the person’s property to the proper beneficiaries. Probate is necessary even if a Will is in place because the Will must be validated by the Court, and also because the Personal Representative under the Will is only allowed to act under the Will once a Judge has given that authority.  During a probate administration – a process that generally lasts from four to six months for a Summary Administration, and up to a year for a Formal Administration – the court assesses the assets of a loved one who has passed, first paying off valid claims filed by creditors, then distributing the remaining assets to the surviving beneficiaries.

The fees and cost involved with filing a Probate, as well as Funeral Expenses (up to $6,000) are the first expenses to be reimbursed from the decedent’s assets, to the person who paid for them. Certain assets do not fall under probate, including:

• Retirement accounts with a named beneficiary
• Life insurance proceeds with a named beneficiary
• Property that is held by a trustee rather than the deceased owner, i.e. a Revocable trust
• Property held by two people, such as a home or a bank account
•  A payable-on-death bank account

Probate Administration is not always necessary; however it is always best to speak to an attorney about whether or not it is necessary for your particular situation.

Types of probate – a very brief summary

• Summary Administration. If the assets of an estate are less than $75,000, excluding FL Statute exempt assets, or if the person died more than 2 years ago, a Petition for Summary Administration can be used. The executor of the will (or if there is no Will, then a family member or other beneficiary) is responsible for filing the paperwork, notifying the beneficiaries and formally serving notice that the petition has been filed. If the court approves the petition, the property is released to those who inherit it.
• Formal Administration. Larger estates require formal probate, where a personal representative is appointed. The Court will issue Letters of Administration, which gives the Personal Representative the authority to settle the estate, either through the terms of a valid will, or if there is no will then by distributing assets to beneficiaries according to Florida Statutes, once all valid claims have been paid. 

For help with handling your probate case, ElDeiry & ElDeiry, PA can provide the legal support you need. Contact us today to schedule a consultation.

Were You Named a Personal Representative? 6 Reasons You Should Hire a Lawyer to Help

June 20, 2019

Being named as the personal representative of a loved one’s estate brings with it a significant amount of stress and unexpected responsibility. Working with a probate lawyer can benefit you in several ways.

1. Avoids Family Conflict

Family tension can peak after the death of a loved one. Emotions run high when people are dealing with grief, and it can cause them to lash out in unexpected ways. Whether family members have their own interpretations of the deceased’s wishes, believe they are entitled to more than they are granted in the Will, or disagree with who has been named executor, a probate attorney can act as an objective third party.

2. Expedites the Probate Process

In some situations, a lawyer who knows the probate process can help a family move through it more quickly. A probate lawyer is especially beneficial if you have never served as executor before and you have no prior legal knowledge.

3. Helps with Legal Documents and Deadlines

Serving as executor involves a substantial amount of paperwork, and you have to be ready to work around the court’s deadlines. Failing to fill out paperwork correctly or drafting documents without important details can delay the process and heighten family tension. Since a probate lawyer knows the exact requirements in your jurisdiction, they can help you avoid these common errors.

4. Prepares for Legal Claims

Many estates are plagued by legal claims, whether they come from debtors, family members who are left out of the Will, or beneficiaries who believe they have been shorted by the estate. Your probate lawyer can protect you from legal claims and ensure that your loved one’s wishes are respected and carried out.

5. Protects Your Interests and Assets

Becoming an executor puts your own assets and interests at risk. If you make an error that causes a family member to lose out on their rightful assets, the court may come after your funds and assets to make beneficiaries whole. A probate lawyer ensures that every step of the process is carried out to the letter of the law, protecting you from costly errors.

6. Streamlines the Process

Consider your own needs when deciding whether or not to hire a probate lawyer. An executor’s duties take up a significant amount of time, which can be exceptionally stressful if you have your own family to take care of, a job, and other obligations. The support of an experienced probate lawyer can save time.

The complex probate process can add additional stress during an already emotional time. Turn to the ElDeiry & ElDeiry, PA for the legal support you need. Contact us today to schedule a consultation.

Own a Business? 4 Considerations to Make with Your Estate Plan

May 20, 2019

No matter your age, if you own a successful business that provides income for your family, you need an estate plan as part of your business plan. Even young business owners need to be prepared for the worst, and that means setting up a plan that allows family members to step into your role with ease whether you are injured in an accident that leaves you temporarily or permanently incapacitated, or if you should unexpectedly pass away.

Why do you need an estate plan?

1. Without an estate plan, the business you worked so hard for might fail. Most of your family’s wealth has likely been invested in the family business, and having those funds suddenly become inaccessible could be devastating to your business. An estate plan ensures that legal documents and bank accounts are accessible to family members, because even if they know every aspect of the business inside and out, they may not legally have access to the documents and funds required to run the business day to day. An estate plan makes that possible.

2. Liability insurance should be set up to stay in place for a period of time after your death. An owner-controlled business is always at risk of lawsuits, and that doesn’t change when an owner passes away. The surviving family should protect profits by maintaining insurance for a period of time to be prepared in the event of a lawsuit.

3. Your loved ones need to be prepared to take over the business. While talking about death is never pleasant, family members need to understand aspects of the business so that they can step in after you pass without too much legal trouble. An estate plan can lay out important aspects of the business so they are ready to take over with confidence.

4. An estate plan can help your family avoid probate court. With an estate plan in place, the business will move smoothly from you to a designated family member without the need for a court to step in to put your business functions on hold.

Additionally, you should set up a living trust, which will have provisions in place for loved ones to take over the business as needed. A power of attorney is also important. With a power of attorney in place, a trusted loved one can be in charge of not only business details, but also Wills, trusts, and life insurance policies so the right people are placed in the right roles in the family business, and there is money available to keep it in operation.

Want to know more about a business estate plan?

Business estate plans can be much more complex than personal plans, so an experienced estate planning attorney is a vital asset when deciding on how to approach a plan. To find out what’s right for you, speak to an experienced estate planning attorney for guidance. The lawyers at ElDeiry & ElDeiry, P.A. would be happy to walk you through the decision-making process step by step.

5 Reasons You Need to Start Estate Planning Today!

April 20, 2019

Too young? No kids? Don’t have a lot of assets? There are plenty of excuses to keep estate planning at the back of your mind, but there are even more compelling reasons to get started right away.

Don’t wait until you’re rich and famous. Here are 5 reasons why you should start estate planning as soon as possible.

1) Accidents can happen.

Whether you are 20, 60, or 90 years old, you can’t predict the future. It’s painful to think about, but accidents can happen at any age. Estate planning can help you stay ahead of those possibilities, so even if you pass away unexpectedly or are left incapacitated, you can still protect your assets and your family in the process.

2) It keeps things simple for your family

When someone passes away without an estate plan, their property goes through a process called probate. This generally involves a lot of time and costs that most grieving families would rather avoid. If you just have a few thousand dollars in your checking account, estate planning can save your family some unnecessary stress. The more assets you have, though, the more estate planning can help in terms of maximizing what you pass down to your inheritors.

3) It protects your loved ones.

There are certain relatives the state thinks should automatically inherit your money when you pass away — but those don’t always line up with the people you care about most. Let’s say you’re unmarried but want to provide for a romantic partner, or you have an estranged relative, or you don’t plan to have children but want to leave property for your nieces and nephews. Your estate plan can account for these scenarios in ways the default laws cannot.

4) There are many different types of property you need to consider.

Even if you don’t have a bank account full of zeroes or a big house to pass down, your estate plan can cover a wide range of property. It can make rules about the beneficiaries of a life insurance policy or 401(k), specify what happens to investments or debts, and help you decide who inherits smaller pieces of property like heirlooms or items with sentimental value.

5) It helps other people help you.

Let’s say you’re over 18 and you’ve gone to study overseas. In scenarios like these, a durable power of attorney can give your parents the legal power to help with your taxes and other financial matters in your stead. Even as you get older, it’s important to name powers of attorney and a health care proxy in the event you are incapacitated. If that happens, the person you name will be able to make medical decisions on your behalf — and ensure your wishes are upheld.

Did our estate planning tips light a fire under you? Let us know if we can help you explore your estate planning options and come up with a strategy that fits your life. The law office of  ElDeiry & ElDeiry, P.A. looks forward to your call.

Wills vs. Trusts: Which One Is Right for You?

March 20, 2019

Wills and trusts are the two most essential elements of any estate plan. They share one basic trait in common: they both act as documented, legally-binding instructions for what happens after you pass away. Beyond that, they differ in many ways and tend to be used in different sets of circumstances.

So, which of these two documents is right for you? In your overall estate plan, the answer is most likely “both” — but here’s how you can understand the difference and choose one for your particular situation.

Wills and Trusts: The Basic Differences

Wills and trusts can both dictate what happens to your property, assets, and debts after you pass away, but they do this in different ways and with varying legal and financial effects.

They cover different types of property. Wills are more limited in the types of property they can pass on to your beneficiaries: you can only specify property you own in your name alone. With trusts, on the other hand, you can also speak to jointly owned assets or ones that legally pass directly to a beneficiary, like a life insurance policy.

They take effect at different times. Your Will only kicks in after you pass away. A trust typically goes into effect the moment you sign it, and any property you hold in the trust will not necessarily be distributed to beneficiaries upon death.

Some can be changed and some can’t. As long as you have the mental capacity, you can change your Will at any time. A trust can only be modified or cancelled if it is revocable, whereas irrevocable trusts are set in stone from the moment you sign them.

They handle probate differently. One of the biggest differences between these two documents is that any property specified in your Will is still subject to probate. When you create a trust, you technically transfer ownership of property from yourself to the trust itself, which allows it to skip the probate process and its associated costs.

One is public and one is private. Because probate is a public process, Wills go on public record once they take effect. The terms and assets in a trust always stay private.

Which one do you need?

It depends entirely on what you are aiming to achieve with your estate plan. In addition to passing on property, Wills can outline some of your wishes and make sure your family is taken care of. For example, a Will can:

• Name an executor for your estate.
• Appoint a guardian for your children in case you pass away before they come of age.
• Decide who will take care of your pets and how.
• Outline a plan for paying debts and taxes.

There are several types of trusts, which means you can use them for a much wider variety of purposes. They can be used for things like:

• Planning for mental disability or physical incapacity.
• Protecting the proceeds of a life insurance policy, retirement account or 401(k).
• Transferring small business interests.
• Buying and selling securities.

While both documents can transfer valuable property like real estate, trusts are generally a better idea because they skip the probate process and therefore cost your family less money.

There’s a lot more to know about Wills and trusts, so if you’re still not sure which one is right for you, speak to an experienced estate planning attorney for guidance. The lawyers at ElDeiry & ElDeiry, P.A. would be happy to walk you through the decision-making process step by step. 

Understanding the Florida Probate System

September 01, 2016

About the Florida Probate Process

Probate, simply put, is the legal process of administering the estate of a deceased person by resolving all claims and distributing the deceased person’s property either through a will or without one.

In Florida, the probate process can be cumbersome and confusing, but with good legal counsel the process can be smoother.

At any level, the primary steps in the probate process include:

• Identification and review of the will and gathering of all known assets.
• Drafting and executing the “Petition of Administration” which gives a representative the power to legally act for the estate.
• Pay off any debts to creditors.
• Identification of taxable (or probate) assets and filing of the decedent’s final tax return.
• Closure of the Estate and disbursement of assets based on the will or if no will is present, based on the state laws.

The probate process and Florida’s probate statutes are complex and there are many nuances which can greatly affect the amount of taxable assets and the length of time that an estate stays in probate.

About Probate Litigation

To further complicate matters, disputes over the estate often arise requiring the need for probate litigation. Probate litigation covers several situations, including:

• Will contests, where someone claims that the person who wrote the will did not know what they were doing because of diminished mental capacity or that someone else made them do a will that didn’t comply with their wishes
• Claims against executors and administrators for mishandling estates or estate assets
• Claims against trustees for mishandling trust assets

It goes without saying that probate litigation matters often pit family member against family member and can easily become highly emotional for both parties. In these situations, having an attorney that is skilled at probate litigation but is also empathetic can help resolve the situation without further driving a wedge between family members.

Our Capabilities

While probate is a court process and you must have a probate lawyer, probate and probate litigation processes are not just about the legalities of dispersing the estate; but are also about working with the grieving families, understanding their situation, and helping them make the best possible decisions quickly and efficiently. Our job is to guide clients through this process, resolving any issues that come up, and ultimately to make sure that the desires of the deceased are carried out.

If you are in need of a probate or probate litigation attorney, call us at 954-670-2800 or use the contact form.

What is a Trust?

August 1, 2016

What is a Trust?

A Trust is a legal document that provides specific instructions to manage your assets for your selected beneficiaries.

A properly prepared Trust can reduce Estate Taxes, protect your property from being mishandled and a great way to avoid probate.

Assets that are properly Titled in the name of a Trust can be handled or managed by your selected Trustee. Yes, you can also be the Trustee, but we will get to that shortly.

A Trust agreement truly gives you lots of options when managing and distributing your assets in the event you become incapacitated, disabled or deceased.

There are three main aspects of every Trust.

• Grantor, Settlor or the Trustor. This is the person who creates or establishes the Trust. This is also the person who funds the Trust by transferring his or her own assets into the name of the Trust.
• Trustee. This is the person, or entity that manages and oversees the assets that are placed in the Trust by the Grantor. Often times, if the Grantor is alive and well, he or she will usually act as the Trustee for the assets that have been placed in the Trust. When the time comes that a Trustee is no longer able to manage the assets in the Trust then a successor will be named to become the Trustee, and provide continuity to manage the Trust.
• Beneficiary. This is the person or entity that benefits from the assets that are placed in the Trust. Often times if the Grantor is alive and well, he or she will also be listed as the primary beneficiary with successor beneficiaries properly listed as well.

Who should set up a Trust?

Individuals:
Any unmarried individual with any type of assets should definitely set up a Trust sooner than later. Assets can be anything from a life insurance policy, a profitable business or your home real estate real estate. It is essential that a Trust be set up in these matters to seamlessly and efficiently manage an individual’s assets in case he or she is no longer able to do so.

Couples with Kids:
Definitely set up a Trust so that your assets can be placed into the Trust and instructions can be implemented to manage the assets for the benefit of your minor or even adult children.

Real Estate Owners:
Anyone individual or couple that owns Real Estate can benefit from a Trust by avoiding probate and leaving specific instruction on the distribution, sale or management of any Real Estate owned.

Business Owners:
Unless you have multiple partners in the business, setting up a Trust can ensure the management and sale of your business in case the owner is unable to continue in the Business.

Who else can benefit from a Trust?

Essentially, a Trust is a very powerful and effective legal agreement that truly gives individuals and couples some tremendous flexibility when managing and distributing their assets.

Sooner is Better than Later:

Contact us today at 954-670-2800 or via the contact form to make use of this tremendous legal document that provides great flexibility and protection for your assets and beneficiaries.

Do you have a Will?

July 1, 2016

Surprisingly, a large number of adults with children will carry life insurance, but have not taken the time to create a simple will. A will allows you to direct and handle your matters after you have passed on.

Specifically, we strongly recommend that anyone who is single and owns property, prepare an estate plan as soon as possible. Secondly, we strongly recommend that anyone with children under 18 prepare an estate plan to address financial matters, but also guardianship matters that could arise after a parent is deceased.

Estate planning should be considered an integral part of all financial goals and objectives. Since death is not likely to be avoided, we strongly recommend that our clients prepare and review their estate planning needs on a regular basis.

When you are ready to discuss these matters further, contact us at 954-670-2800 or contact form.