Archive for the ‘ Estates & Trusts ’ Category
The 4 W’s of Estate Planning
All estate planning involves answering the four W’s—Who, What, When, and Where. WHO . . . …will make decisions about your health and finances if you cannot? …have you named as beneficiary of your life insurance, 401ks, and IRAs? …will take care of your affairs as executor or trustee? …will take care of minor [...]
10 Things About Creditors’ Claims in Florida Probate
1. Put It in Writing. The creditor of a deceased debtor must file a Statement of Claim with the probate court in which the debtor’s estate is being probated. The Statement of Claim must include a brief statement of the basis of the claim, including whether or not the claim has matured. 2. Racing the [...]
Filing the Estate or Trust Income Tax Return
An income tax return for the decedent’s estate must be filed if the estate had income for the year of $600 or more. The estate’s income tax return is filed on IRS Form 1041. The preparer must collect all the IRS Forms 1099 and Schedules K-1 evidencing income to the estate during the year. These [...]
Filing the Final Individual Income Tax Return
For individuals who passed away in 2009, the decedent’s final individual income tax return must be filed by April 15, 2010. Generally, the final return of a decedent should be prepared in the same manner as the return of a living person. The return is filed on IRS Form 1040. The preparer must collect all [...]
Martin Luther King, Jr. Died Intestate
Today we celebrate the life of Martin Luther King, Jr., one of the main leaders of the American Civil Rights Movement. Dr. King devoted all of his income and talent to the movement. He died intestate, leaving less than $30,000 in his estate. Some of that money was already earmarked for the movement. This comes [...]
10 Things About Probate Administration
1. What is Probate? Probate is the process for wrapping up the legal affairs of a decedent person. It involves confirming the decedent’s Last Will, collecting and managing his or her property, paying his or her just debts, and distributing the remaining property among his or her beneficiaries. Probate is administered by a local court where [...]
Establishing Residency in Florida
Florida is a popular place to live not only for its beaches and warm weather, but also for its lack of state income tax and generous asset protection laws. Anyone can enjoy the beaches and weather, but it is important to establish residency in Florida to enjoy many legal benefits. Establishing legal residency in Florida [...]
10 Things About Trusts
1. What It Is. A trust is a contract involving three people—the trustmaker, the trustee, and the beneficiary. The trustmaker (called the settlor or grantor) makes a contract with the trustee to hold property (called principal or corpus) for the beneficiary. Sometimes the trustmaker, trustee, and beneficiary are all the same person—which is common for [...]
10 Things About Estate Planning
1. You Already Have an Estate Plan, But Do You Know What It Says? Your state legislature has created an estate plan for every resident, called Laws of Intestacy, but it rarely meets the needs or desires of every person. Especially if you have a “non-traditional” family (and who doesn’t these days?), the default estate plan [...]
Divorced? Update Your Life Insurance Beneficiaries
If you are divorced or divorcing, it is vitally important that you review and update the designated beneficiaries for your life insurance (as well as other accounts). Failing to do so may have drastic consequences for your loved ones. This week, I spoke to a woman who just lost her husband and then found out [...]