The Law Office of Mary Beth Kelly, LLCThe Law Office of Mary Beth Kelly, LLC2024-02-19T14:36:49Zhttps://www.trustmbkelly.com/feed/atom/WordPress/wp-content/uploads/sites/1603787/2020/12/cropped-favv-32x32.pngOn Behalf of The Law Office of Mary Beth Kelly, LLChttps://www.trustmbkelly.com/?p=482012024-02-19T14:36:49Z2024-02-19T14:36:49ZYou may need to plan for ancillary probate
Probate is the legal process of administering an estate, which involves validating the deceased’ will, paying their final debts and distributing their remaining assets. An “ancillary probate” is basically a second probate process that comes into play when an individual owns property in a state other than their primary residence.
Ancillary probate is required because each state has unique rules on what is required during the probate process and how that process has to proceed. As a certified snowbird, you likely have assets in this state that require an ancillary probate process. These can include:
Real estate: Real estate is one of the biggest reasons for ancillary probate. It’s not unusual for snowbirds to have a condo or a vacation property that they own for their use when they’re here.
Local accounts: Bank accounts, investment portfolios and other financial assets held in Florida may also need ancillary probate if they do not have beneficiary designations or co-owners.
Personal property: The furniture, household goods, jewelry and other personal items you leave behind in this state may also need to go through ancillary probate to ensure that these assets smoothly transfer to their new owners.
Vehicles: You may keep boats, cars, side-by-sides, motorcycles or other vehicles in this state, and those may also need to pass through probate.
There are ways to avoid ancillary probate – but doing so requires careful estate planning. The use of trusts, joint ownership and enhanced life estate deeds, for example, can help make it easier for your beneficiaries and heirs. Seeking legal guidance can help you to sort out your options effectively and in ways that are tailored to your unique circumstances.]]>On Behalf of The Law Office of Mary Beth Kelly, LLChttps://www.trustmbkelly.com/?p=481992023-12-15T15:46:35Z2023-12-15T15:46:35ZAvoid direct bequests
One of the biggest mistakes people make when estate planning is to oversimplify the process. They use a will as their only testamentary document and leave certain assets directly to the child with special needs. A large inheritance can quickly cut someone with special needs off from crucial state benefits, like Medicaid coverage. It can also put them at risk of abuse from others. Setting resources aside in a special needs trust is often an ideal way to ensure an individual's comfort while protecting those resources for as long as possible.
Think carefully about guardians and trustees
Whether the child with special needs is still a minor or is now an adult, they will need direct daily support in most cases. Thorough estate plans can provide two separate forms of support for dependents with special needs. A parent can name a guardian to live with and care for the child in their will. They can also name a trustee to manage any financial resources set aside for the child. Choosing individuals who are ethical and responsible is as important as selecting someone who has a positive relationship with the beneficiary who has special needs.
Address the possibility of incapacitation
Parents don't just become unable to care for a loved one when they die. They may also have medical issues that interfere with their daily lives. Advanced age could lead to Alzheimer's disease, dementia or physical limitations that prevent someone from providing support for their child or even caring for themselves. Those who have children with special needs should plan for their possible future incapacitation.
Powers of attorney and advance healthcare directives can provide guidance and take the pressure off of immediate family members. They can also help preserve resources that will ultimately pass to someone's estate and their beneficiary was special needs. Incapacity planning could include empowering the person who could serve as guardian to assist the dependent with special needs even before someone's death.
No parent wants to leave their child without adequate support, and those who have children with special needs must prepare quite carefully. Engaging in thorough estate planning can help to protect a family member with special needs and give the parents caring for them greater peace of mind.]]>On Behalf of The Law Office of Mary Beth Kelly, LLChttps://www.trustmbkelly.com/?p=481982023-10-03T13:07:06Z2023-10-03T13:07:06ZWhat is a special needs trust?
A special needs trust (SNT) is a legally binding arrangement designed to protect assets for a disabled individual or an individual with special needs while maintaining their eligibility for government assistance programs like Supplemental Security Income and Medicaid.
People can create these trusts for individuals who have physical or mental disabilities and may require additional financial support throughout their lives.
Benefits of special needs trusts
There are many benefits to creating a special needs trust. Among them:
Saving assets for a disabled person
Preserving the disabled person’s eligibility for public benefits
Enhancing the disabled person’s quality of life
Supplementing the disabled person’s financial needs
The disabled individual will have funds for various purposes, including medical expenses, education, housing and accommodations, transportation, recreational services and more.
Who manages special needs trusts?
When a person creates a special needs trust to protect a disabled person, they choose a trustee. The trustee is the person who will manage the trust fund and ensure they disburse the funds for the intended purposes.
Types of special needs trusts
There are three different special needs trusts. The differences between the three types are primarily in who funds and manages the trust. The three types of special needs trusts in Florida are:
First-party special needs trust
Third-party special needs trust
Pooled trust
In addition, Florida requires that the beneficiary of the special needs trust meet certain criteria, such as having a qualifying disability and being under the age of 65 at the time of funding.
Special needs trusts are powerful and valuable estate planning tools for people who want to protect a disabled person someone who will need additional resources to care for themselves beyond what the government can provide.]]>On Behalf of The Law Office of Mary Beth Kelly, LLChttps://www.trustmbkelly.com/?p=481962023-10-01T19:17:10Z2023-10-01T19:14:56ZFurry beneficiaries
Countless pet enthusiasts consider their pets to be their kids, furry and otherwise. Requests include keeping the brood together and living out the rest of their lives. People who live alone with their animals can select a caregiver to move into the house so the “children” do not have to leave their longtime abode.
Pets who survive their owners who are cared for by others will both need financial support. Living in a house requires maintenance and subsequent financial resources to maintain the property. The answer requires various factors regarding how much money is needed and whether it is a fixed amount or in a trust. That starts with the amount needed to care for a pet during their lifetime. Also, scenarios in the event of a severe illness suffered by the animal.
The most important decision comes down to selecting the trustee to manage the money that supports your pets. The trustee is also the pet caregiver, or a professional trustee is hired to prevent any conflict of interest.
Many will scoff at the notion of a pet benefitting from a will or trust. However, a longtime furry friend who provided enjoyment, mainly through difficult times, deserves to continue on with a new owner focused on their well-being.]]>On Behalf of The Law Office of Mary Beth Kelly, LLChttps://www.trustmbkelly.com/?p=481952023-06-22T03:30:02Z2023-06-22T03:30:02ZWhat can an elder law attorney do?
Elder law provides for a great deal of assistance in many vital areas. These laws are best applied with the aid that you can get from an elder care attorney. This can be the case when it comes to many crucially important areas, including:
Management of estates
Probate issues
Management of trusts
Creating trusts, wills, and other financial records
Estate planning issues
Appeals and claims for Social Security and Medicare
Elder abuse
Prevention of elder impoverishment should they enter a nursing home or other facility
Making a plan for long-term care
There are several issues to consider as you approach the end of your life. One of these will be securing the highest possible level of care. The members of your family may have different or conflicting ideas. An elder law attorney can step in to make crucial decisions in a completely fair and impartial manner. This will help you to create a plan that all can agree on.
You will want to ensure that the person you give power of attorney to is qualified for the position. This is another area in which the counsel of an elder law attorney will be valuable. They can help you weigh all of the factors so that the one you invest with this power will be able to handle the job satisfactorily.
There may also be lingering issues with Medicaid, Social Security, or veterans' benefits. An elder law attorney may be able to resolve these issues. This may help you to offset the cost of your medical care.]]>On Behalf of The Law Office of Mary Beth Kelly, LLChttps://www.trustmbkelly.com/?p=481442023-05-12T10:27:15Z2023-04-22T00:29:59ZDeciding who needs a guardian
A family member, friend or concerned party must file a petition with the court. The petition must contain a doctor or healthcare provider statement confirming that the person is incapacitated. The court will appoint a temporary guardian to investigate the claim. The court-appointed guardian will report their findings to the court and make a recommendation.
Who can become a guardian?
If the court agrees that the individual is incapacitated, it will appoint a guardian. Usually, the guardian is a friend or family member. The court will choose a mentally competent adult without any felony convictions as the guardian.
What does the guardian do?
The guardianships purpose is to do what's best for the incapacitated person, so guardians must follow specific rules. For example, the guardian makes an inventory of the assets belonging to the incapacitated person.
The guardian must also file this inventory with the court and provide a yearly account of all financial transactions. It's also necessary for the guardian to submit a yearly plan that outlines the expected care and treatment of the incapacitated person. A guardian can get removed for failing to perform their duties.
Florida guardianship
A Florida resident might need guardianship should they become incapacitated. The court will choose a guardian on behalf of the incapacitated person. However, the situation isn’t necessarily permanent. If the incapacitated person recovers, they can petition the court to restore their rights.]]>On Behalf of The Law Office of Mary Beth Kelly, LLChttps://www.trustmbkelly.com/?p=481432023-05-12T10:35:08Z2023-02-27T22:53:48ZWhat is a will?
A will is an estate planning document that outlines how you want your assets to be distributed after you pass away. Without a will, your assets will be distributed according to state laws, which may not align with your wishes. By creating a will, you can ensure that your property goes to the people and causes that matter most to you.
There is no specific age at which you should create a will, but certain life events should prompt you to do so. These events include getting married, having children, acquiring significant assets, or experiencing a major health issue. Even if you have not experienced any of these life events, creating a will as soon as possible is still a good idea.
Reasons to create a will at a younger age
One reason to create a will at a younger age is that unexpected accidents or illnesses can happen at any time. If you were to pass away suddenly, having a will in place would make distributing your assets much easier for your loved ones. This can help prevent unnecessary disputes and ensure your property is distributed according to your wishes.
Another benefit of creating a will at a younger age is that it allows you to make updates and changes as your life circumstances change. For example, if you get married or have children, you can update your will to include these individuals as beneficiaries. If you acquire new assets or change your mind about how you want your property distributed, you can change your will as needed.
Reviewing your will
In addition to creating a will, it is also important to regularly review and update it. It is recommended that you review your will every three to five years or whenever there is a significant life event, such as a marriage, divorce, birth or death in the family. By keeping your will up-to-date, you can ensure it accurately reflects your wishes.
Planning for the future
By creating a will at a younger age and regularly reviewing and updating it, you can ensure that your assets are distributed according to your wishes and prevent unnecessary disputes among your loved ones.]]>On Behalf of The Law Office of Mary Beth Kelly, LLChttps://www.trustmbkelly.com/?p=481412023-05-12T10:27:56Z2022-12-23T06:00:07ZUnderstanding a SLAT
A SLAT is an irrevocable trust that allows you to gift assets to your spouse while retaining access and control over them yourself. The benefits of this type of trust are twofold: first, it provides tax savings for both spouses; second, it allows you to protect your assets from creditors, lawsuits or other unexpected financial obligations.
How SLATs work - protection and tax advantages
A SLAT, at its core, is just like any other estate planning trust, where you are giving ownership of your assets to someone else (a trustee) who manages and distributes those assets to your beneficiary (in this case, your spouse) according to your wishes. But, unlike other trusts, you fund it gradually using gifts while ensuring you remain under the estate tax exemption.
SLATs reduce estate tax through two mechanisms. The first is removing additional growth on your assets from your estate by transferring ownership to the trustee. So if you have a property with significant growth potential, moving it into the trust before that happens can save you a lot of money in taxes.
The second way is through the gift tax exclusion. When you fund a SLAT, you can use the annual exclusion (which is at $12.06 million per person as of 2022) to make gifts to your spouse without incurring any tax liability. This means you can transfer a significant amount of wealth while not worrying about paying taxes on them.
SLATs also provide protection from creditors and lawsuits since they are irrevocable trusts with no personal liability for the assets within them. So even if something happens to either of you, your spouse's inheritance will remain safe as long as they are within the trust.
If a SLAT sounds like a good fit for your needs, you can create one for your spouse. However, you must keep in mind that they must be irrevocable, which means once you create a SLAT, you can't revoke or change its terms. So, if you divorce years later, your partner will continue to receive the benefits of the trust regardless of how you have changed your own financial situation.]]>On Behalf of The Law Office of Mary Beth Kelly, LLChttps://www.trustmbkelly.com/?p=481392023-05-12T10:28:20Z2022-10-25T15:12:04ZMake sure you have a comprehensive will
A regular family will typically have a will that leaves everything to the surviving spouse. But in a blended family, there may be children from previous relationships who need to be provided for as well. It's important to have a will that spells out exactly who you want to inherit your assets. This can avoid conflict and confusion down the road.
Consider using trusts
If you have a large estate, you may want to consider using trusts as part of your estate planning. Trusts can be used to control how and when assets get distributed. This can be especially helpful in a blended family situation, where there may be children of different ages or from different relationships.
Communicate with everyone involved
It's important to communicate with all of the people involved in your estate plan. This includes your spouse, your children, and any other relatives who may be affected by your estate. Make sure everyone understands your estate planning wishes and knows what to expect. This can avoid misunderstandings and conflict down the road.
Review your plan regularly
Your estate plan should get reviewed regularly, especially if there are changes in your family situation. This can help ensure that your plan is still effective and that everyone involved is still on the same page.
Estate planning for blended families can be challenging, but it's important to make sure your wishes get carried out. By taking the time to create a comprehensive plan, you can ensure that your assets get distributed the way you want. And by communicating with everyone involved, you can avoid conflict and confusion. With a little planning, you can make sure your estate is managed in accordance with your wishes.]]>On Behalf of The Law Office of Mary Beth Kelly, LLChttps://www.trustmbkelly.com/?p=481352023-05-12T10:35:18Z2022-08-24T20:00:16ZTrust assets stay outside of your estate
Property such as a home, a business or anything else that you cherish can be held in your trust's name. This can be ideal because it may help to shield these items from being taken by creditors, the government or your spouse in a divorce settlement. Holding property outside of your estate will also reduce the federal estate tax burden. Therefore, your beneficiaries can keep a larger percentage of their inheritance.
Exert control from beyond the grave
Another benefit to having a trust is that it can remain in effect after you die. This means that you can withhold assets from beneficiaries until you feel that they are ready to receive them. For instance, you could stipulate that your adult child receive half of an inheritance now and the other half upon turning 40. You could also tie distributions to certain accomplishments such as completing school or completing a drug rehab program.
Keep your affairs private
The terms of a trust will never be revealed to the public without your consent. This means that they can be withheld from the media, your company's investors or even close family members. Keeping the terms of a trust private may prevent conflicts emerging between beneficiaries, which might make the estate administration process easier. It may also prevent unnecessary scrutiny into your life or the lives of your children.
Creating a trust may be an ideal way to ensure that your needs are met today and in the future. If you already have a trust, it may be a good idea to review it at least once a year to ensure that it still conforms to state law.]]>