Key Reasons Why Your Older Florida Estate Plan May Not Work
Nydia Menendez • May 14, 2023
Are you a resident of Florida? Have you created a Florida estate plan? Do you periodically update it? When was the last time it was updated? Do you know what planning tools are included in your Florida estate plan? Most importantly, does your Florida estate plan reflect your current needs, values, family, and the legacy you want to leave at the time of your passing?
At Menendez Law Firm we make sure our clients understand the importance of creating a Florida estate plan. It is important that clients take action to implement a plan now, so that in a time of sudden crisis or death, their wishes are not left to chance or to the state of Florida mandated process.
We always remind our clients to keep in mind that estate planning is a lifetime journey. This means that from time-to-time, there may be reasons to modify or update the estate plan. In other words, estate planning should not be a simple “To Do” item, that once done, it is put away and left unattended. Instead, your estate plan should be reviewed at least every three years, if not every year, to make sure, that no matter what life throws your way, your estate plan will still work the way you need it to.
Also, while many people focus on the assets when considering estate planning, it is important to remember that your estate plan is a vital part of not only your estate (i.e., your assets) but also your overall health and well-being. That is, a comprehensive estate plan will include the health care directives that allow you to be in control of all your health related decisions. In other words, estate planning should also address what would happen with your assets and your person in the event of incapacity. Many of our clients tell us that the most important and rewarding part of developing their estate plan is the peace of mind they feel knowing that what they love most, is, and will be, protected against uncertainty, potential harm, and confusion.
Here are just a few of the complications we often see in old estate planning documents that have not been maintained.
1. There is a change in the laws. As time passes, laws change; this will require for even the best drafted estate planto be updated. It is important to periodically review your estate plan to make sure laws governing your plan are still in effect, or whether there are more advantageous or new laws that should be incorporated into your plan.
2. There is a change in your state of residency. During the COVID pandemic, many people moved to sunny Florida, and brought their out-of-state plans with them. However, the most adequate estate plan takes into account both federal and State laws. Therefore, if you have recently moved to Florida (or another state, for that matter), but your estate plan was designed and included the laws of another state, there is a great likelihood that your documents do not comply with all Florida laws to maximize the benefits of your plan.
3. There is a change in your family structure. Often the family has changed. Births, deaths, the kids are now adults, and divorces are just the start of the family structure changes that can impact your estate plan. These changes can impact who you will appoint to handle your affairs in the event of incapacity, as well as who will inherit from you at the time of your passing, and how.
4. There is a change in the decision makers. Similar to the changes to your family structure, the person or persons you want to make decisions for you in the event of your incapacity or death may change over time as well. Alternatively, perhaps you no longer want the persons initially appointed to serve in that role. It is critically important to be mindful that you do not want to be in the position, at a time when you are most vulnerable, that you do not have a decision maker in place to immediately manage either your health or your finances.
5. There is a change in the goals for your legacy. As we all know, things change over time, and this may hold true for your legacy. What you wanted five years ago may no longer be the case today. By periodically reviewing your plan, you can ensure that your plan reflects what you want both now and in the future.
We know this article may raise more questions than it answers. And that is exactly what estate planning should do: create questions to allow you the opportunity to resolve in advance the many uncertainties that life can bring your way. This is why it is so important to develop a relationship now with your Florida estate planning attorney, and to let your attorney know when there are changes in your family structure .
At Menendez Law Firm, we understand that when you protect what matters most to you, you will experience the peace of mind that you deserve. When thinking of the future regarding your property, it is essential that you have a law firm that you can trust to help you prepare everything you need. The expert attorneys at Menendez Law Firm in Fort Lauderdale, Florida, provide you with the highest level of professionalism and responsiveness to ensure you get the personal attention you deserve when planning out the future of your estate and so much more. Do not wait to contact us
today!
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Do you want to know what is the Corporate Transparency Act?
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Did you know Florida estate planning is not just about creating a last will and testament? It is also about considering the intricacies of asset management, preservation, and protection for your loved ones. In this article, our attorney, Nydia Menendez, explores this crucial aspect of estate planning that is often overlooked and sheds light on why wills alone may not adequately address these concerns. One of the many benefits of working with an experienced law firm like ours is learning how to consider these factors, which can lead to a more comprehensive and thoughtful estate plan for the benefit of you and your loved ones. We begin by helping you understand the limits of a last will and testament. While wills serve as a common estate planning tool, they possess limitations that can have significant implications for your beneficiaries. Let us delve into a few of these aspects that go beyond simple distribution right here in our blog. Asset Management During Incapacity. A will activates at death. For this reason, a key shortcoming of relying solely on a last will and testament is its lack of provision for managing your assets if you become incapacitated during your lifetime. What happens to your estate when you're unable to manage it yourself? This is not a question you want to leave to chance. Instead, you want to answer it early. Tax Planning and Minimization. Taxes can substantially affect the value of the inheritance your beneficiaries receive. A will may not account for tax planning or minimization strategies that could ultimately benefit your loved ones. Asset Protection for Beneficiaries. Ensuring that your beneficiaries' inheritance remains secure from creditors, divorces, or unforeseen challenges is a critical consideration. When you plan early with your experienced Florida estate planning attorney you can answer the question of: How can you safeguard the financial future of your beneficiaries? Let's delve into some scenarios that illustrate the unintended consequences that can arise when relying solely on a last will and testament for estate planning, especially in Florida. Remarriage's Impact on Inheritance. If your spouse remarries after your passing, their new marriage could potentially jeopardize your children's inheritance. Without proper planning, assets intended for your children might end up benefiting someone else. Challenges for Minor Beneficiaries. In Florida, minors cannot own property valued over $15,000. This limitation could mean that substantial wealth left to minors could require court intervention. And even more tragically, at the age of 18, which is the age of “adulthood” any inheritance that is being safeguarded is distributed to the now “adult” beneficiary. Are your beneficiaries prepared for this? Beneficiary Readiness and Vulnerabilities. Even if your beneficiaries are adults, are they ready to manage a substantial inheritance? Consider their financial responsibilities, potential creditor issues, divorces, addictions, and government benefit entitlements. The Probate Predicament. The necessity of probate is a significant drawback of relying solely on a last will and testament. This court-administered process can be time-consuming, expensive, and subject to complications. Probate can lead to unintended delays and disputes that affect your beneficiaries. Our attorney Nydia Menendez wants to share with you that there is indeed a more comprehensive and effective way to ensure your assets are distributed and managed in alignment with your intentions. By considering alternatives to a last will and testament, you can navigate the potential unintended consequences and complexities that arise. Planning your estate goes beyond the basics of a last will and testament. It involves careful consideration of the future implications of asset distribution, management, and preservation. Understanding the unintended consequences that beneficiaries might face and addressing them through alternative strategies can result in a more robust estate plan. In Florida, as elsewhere, your assets deserve the thoughtful protection and management that only a comprehensive estate plan can provide. Your beneficiaries' futures will benefit from the care and foresight that only comprehensive estate planning can provide. We know this article may raise more questions than it answers. And that is exactly what estate planning should do: create questions to allow you the opportunity to resolve in advance the many uncertainties that life can bring your way. At Menendez Law Firm, we understand that when you protect what matters most to you, you will experience the peace of mind that you deserve. When thinking of the future regarding your property, it is essential that you have a law firm that you can trust to help you prepare everything you need. The expert attorneys at Menendez Law Firm in Fort Lauderdale, Florida, provide you with the highest level of professionalism and responsiveness to ensure you get the personal attention you deserve when planning out the future of your estate and so much more. Do not wait to contact us today!
At Menendez Law Firm, because we are a Florida law firm, and 1 in 5 Florida residents are over the age of 65, we frequently work with the adult children of aging parents.
We are a Florida estate planning firm. We know the important discussions that need to take place as soon as possible as you face a health care issue.
A Florida probate attorney is hired to administer the estate of the decedent and works alongside the Personal Representative (who must be appointed by the court) and the probate court.
With respect to Estate Planning, the actress had only prepared a Will, in which she left money to care for her mother until she died, to her half-sister, who she met when she was 12 years old, and to a poet friend and his wife. But she left the bulk of her estate, valued under $1 million, to her acting coach, Lee Strasberg.
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