Orlando Estate & Elder Law

Dodge The Estate Litigation Trends

Estate litigation occurs for a variety of reasons.  However, experts can often predict what types of litigation will become more popular.

At the heart of most estate litigation cases is some sort of family grievance. There are other reasons for litigating over an estate.  However, family issues are by far the biggest source of conflicts. That is a timeless principle that has been true since the very beginning of estate law and it is likely to always be true.

However, the contours of how the litigation proceeds changes over time. It is useful to try and anticipate how potential battles will look. Private Wealth recently predicted some trends we may see, when it comes to estate litigation in 2018.

The article is titled "4 Estate Litigation Predictions For 2018" and includes:

• First, it is likely that more estate litigation cases will be filed. Americans are getting older and many are increasingly sitting on larger and larger piles of wealth that people will want to fight over.
• The expected increase in litigation has led to estate planners looking for ways to avoid it. One popular way is to include mandatory arbitration clauses in wills and trusts. It is expected that litigation over the enforceability of those clauses will increase.
• Another way to deal with the increase in estate litigation has been to use more no-contest clauses and to widen their scopes in states where this is permitted. (Not in Florida) That will also likely be the source of increased litigation, as plaintiffs seek to avoid the clauses.
• The rules of the Uniform Trust Code are likely to be another source of disputes, as courts in states that have recently adopted a version of it, will need to determine what is allowed and what is not allowed.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Private Wealth (Feb. 14, 2018) "4 Estate Litigation Predictions For 2018."

What Happens to School Shooter's Inheritance

Court records show that in the months prior to committing his crimes, the Parkland school shooter was attempting to access the inheritance that his mother left for him.

If the victims and their families of the Parkland, FL school shooting are going to receive restitution, it will most likely have to come from suing government agencies. However, they might be able to get a little bit from the shooter, Nikolas Cruz. His mother passed away in November. It turns out that she left assets for Cruz and his brother.

Two months before the shootings, Cruz hired an attorney in an attempt to get his portion of that inheritance. The woman who took Cruz in after his mother's death is also attempting to get permission from the court to administer the estate. She is on friendly terms with Cruz's brother, although reports suggest that Cruz believes she is trying to steal his inheritance as Fox News reports in "Nikolas Cruz tried to access $800,000 inheritance before shooting: report."

Much of this money could get eaten up in legal fees.  However, there might be some left over to help the victims of Cruz's crimes. It will be up to their estates to make claims. In this situation, the most likely way they will go about doing that, is by intervening in the estate of Cruz's mother. This could prevent Cruz from using the money to pay any bills he has in the criminal case against him.

This is an unusual estate case that is likely to take time to sort out.  

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Fox News (Feb. 26, 2018) "Nikolas Cruz tried to access $800,000 inheritance before shooting: report."

Funds Sparse for Burying Opioid Victims

It is a good idea to set aside some money for your funeral, so that someone else does not have to pay for it. The ongoing opioid crisis reveals how not doing so can cause financial problems for governments.

On any given day, someone in the U.S. passes away and no relatives come forward to claim the remains for burial. When that happens, authorities normally take the body to a funeral home. The funeral director then starts investigating to determine whether any family members of the deceased can be located, who might be willing to claim the remains.

If that funeral home search fails to lead to anything, the funeral director will look for any assets the deceased's estate might have to determine if there is anything left behind to pay for burial. What happens if there are no assets?

The answer depends on where the person passed away as the Daily Mail explains in "Unclaimed bodies pile up as opioid overdose death rates soar and burial costs overwhelm the government."

A minority of state governments have funds set aside for the burial of unclaimed human remains.  However, most states leave it up to local governments to handle the costs. Funeral directors say that even when state governments do pay, it usually is not enough to cover all the costs. It is much worse in states that leave payment up to the local governments. With deaths rising because of the opioid crisis, the problem is getting worse in areas hard hit by overdoses.

This shows in part why it is a good idea to leave some money aside for your own burial. If something happens to you, then you can always be sure of receiving a proper funeral. No one else will need to claim your remains and pay for it.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Daily Mail (Feb. 28, 2018) "Unclaimed bodies pile up as opioid overdose death rates soar and burial costs overwhelm the government."

Don't Let Social Security Underpay You

An internal government audit has found that Social Security is underpaying many widows and widowers, because it is failing to adequately inform them of their options.

One of the most important and difficult decisions people must make when they are considering retirement is when to start taking Social Security benefits. The longer people delay taking benefits, the more they will receive per month.

To get the maximum amount of lifetime benefits, people need to factor in their life expectancy. This is difficult enough for people who are just having to decide when to take their own benefits.  However, it becomes even more difficult for those who might want to draw benefits from someone else's account, such as a widow or widower receiving survivor benefits.

People need to be informed of their options.  However, that is not happening in many cases, as Financial Advisor reports in "Social Security Underpaying Widowed Spouses, Report Finds."

The Social Security Administration's Office of Inspector General has determined that widows and widowers are not being informed that they can take survivor benefits, while still delaying their own benefits until they reach the age of 70. This has resulted in underpayments of millions of dollars a year.

People can choose when to start taking the benefits and the Social Security Administration is required to make sure they know their options, so the decision can be an informed one.

It is not always a good idea to rely on the Social Security Administration's information about when you need to start taking benefits to get the most out of them. An elder law attorney can give you the information and offer advice about your best options.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Financial Advisor (Feb. 16, 2018) "Social Security Underpaying Widowed Spouses, Report Finds."

A Tale of Medicaid and Funerals

If you want to plan in advance for your own funeral so that your family does not have to make the arrangements, one of the questions to consider is whether or not you should also pay in advance. The answer might depend on your expected Medicaid needs.

In general, it is a good idea to pre-plan your own funeral.  This allows you to determine where and how your remains will be handled. It also removes a potential burden for your family when they will be in mourning over you.

Funeral homes offer many different types of pre-planning packages that include various levels of services. You can often even transfer a plan between funeral homes, if necessary.

If you do pre-plan your funeral, you'll need to decide whether to pay for everything now to lock in the price. Whether that is a good idea might depend on Medicaid, as The New York Times reports in "Want to Plan for Your Death and Funeral? Here's How."

When you pay the funeral home in advance, you are essentially giving it a free savings account. The funeral home can save the money and earn interest on it. If you do not anticipate passing away anytime soon, you would be better off saving that same amount of money and earning interest on it yourself.

However, if you anticipate needing Medicaid to pay for long-term nursing home care, paying in advance for funeral services can be a good way to lower your assets, if done correctly. For any questions about whether paying in advance is a good idea, you should consult with an elder law attorney.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: New York Times (Feb. 20, 2018) "Want to Plan for Your Death and Funeral? Here's How."

Living Forever Not A Viable Plan

Some people think that scientists are not far away from creating the technology that will let human beings live forever. However, do not let that hope delay your estate planning.

Considering how many people delay getting estate plans, it might seem like the consensus is that most of us will live forever. If we never will pass away, then we will not have estates that need to be distributed after we pass away. For now, however, the idea of eternal life remains a matter of science fiction for many.

On the other hand, some people think it might not be fiction for very much longer, though as the Daily Mail reports in "Could you live forever? Humans will achieve IMMORTALITY using AI and genetic engineering by 2050, expert claims."

There are a few different ways this immortality could be achieved in upcoming decades. Genetic engineering might become so good that scientists will be able to do away with the genes that cause us to age. Robotics could become so adept that human minds could be loaded into androids and live forever in mechanical bodies. Finally, it might be possible that human consciousness could be loaded into a virtual reality world and people could live forever there.

While all of those things are possible in the future, they are not possible now.

Even the most optimistic immortality enthusiasts still think it will be decades before any such technology is widely available. That means that for now you should not plan to live forever. You really do need to get an estate plan.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Daily Mail (Feb. 19, 2018) "Could you live forever? Humans will achieve IMMORTALITY using AI and genetic engineering by 2050, expert claims."

Spill The Bucket (List) To Doctor

If there are things that you are hoping to do before you pass away, let your doctor know so that the doctor can better develop your treatments.

An unfortunate reality of modern medical care is that doctors do not always have the time or inclination to get to know their elderly patients very well on a personal level. Doctors can read charts and make medical findings, but they do not always know the desires and goals of their patients. When coming up with treatment plans and schedules, doctors do not normally take into account what the patient might want besides medical care.

Most elderly people do want other things.

Almost everyone has a list of things they would like to do before they pass away. That list might not be written down and it might be just a few vague ideas. This list can be important to people as The New York Times reports in "Talk to Your Doctor About Your Bucket List."

Whether your bucket list is small and vague or large and very specific, it is a good idea to let your doctor know what is on it. If you do, your doctor will know you better personally. The doctor might be able to devise a treatment plan around making sure you get to do a few things on your list before you pass away.

Elderly people do not concern themselves solely with their health care treatments. They can also accomplish other things they would like to do before they pass away. Their doctors can also help them with that.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: New York Times (Feb. 8, 2018) "Talk to Your Doctor About Your Bucket List."

Donating Family Business Shares

Family business owners who would like to leave a charitable legacy behind when they pass away have a unique way that they can do so. They can donate some of their business interests to charity without affecting their own lifestyles very much.

As people get wealthier, their estate planning goals normally begin to get a lot more diverse. People with only a few assets typically have a main goal of making sure those assets go to provide for their families. However, the wealthy have plenty of assets to make sure their family members are taken care of and accomplish other things in their estate plans.

For many another important goal is leaving behind a strong charitable legacy. It is a way to be remembered for doing good things, long after the wealthy person has passed away. There are many different ways a charitable legacy can be created. For example, business owners have the option of giving part of their business away as Wealth Strategies Journal discussed in "The Generous Business."

The idea is fairly straightforward. A business owner can give some of their interest in the business to a donor guided charitable fund, which can then be used to make donations to many different charities. Another benefit of doing this is its charitable tax deduction. Doing this should not have a significant impact on the giver either, because as long as control of the business is still maintained, the owner can continue to draw the same salary for work.

If you would like to leave behind a charitable legacy, talk to an estate planning attorney about the best options for you.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Wealth Strategies Journal (Jan. 29, 2018) "The Generous Business."

Tax Reform Results in Golden Age of Trusts

One of the unintended consequences of the new federal tax law, is that it makes enormous tax savings possible for those willing and able to get creative with trust formation.

If you have read anything about the recently passed tax cuts President Trump signed, you have probably read that a few of the changes seem relatively simple. Under the new law, the estate tax exemption limit is doubled to $11 million for an individual and $22 million for a married couple.

The major complication is that the exemption limit is scheduled to return to previous levels in a few years. However, there are more complications to the changes than that, as Forbes discusses in "Trusts In The Age of Trump: Time To Re-Engineer Your Estate Plan."

When the new tax law is viewed in combination with some recently relaxed regulations on certain types of trusts, then it is possible to protect far more than the estate tax exemption amount from the estate tax. It requires a very carefully drafted dynastic trust. Similarly, there are many other examples of how the new tax law can be used in combination with the right types of trusts to save on other types of taxes as well.

The new law creates so many opportunities for creative trust formation, that it could usher in a new golden age of trusts. That would make this a good time for you to visit an estate planning attorney to see what you might be able to accomplish with a trust.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Forbes (Feb. 13, 2018) "Trusts In The Age of Trump: Time To Re-Engineer Your Estate Plan."

Making Elder Care Expenses Less Taxing

Families that provide care for elderly relatives face large expenses. There are a few tax breaks that can help to defray some of the costs.

When it comes to caring for its elderly population, the U.S. has begun to enter something of a crisis zone. Many people are aware of pending challenges facing government programs, such as Social Security and Medicare. Those programs will either need to soon find more funding or be restructured.

There are other difficulties that tend to be under the radar, when it comes to caring for the elderly.

One example of that is increasing life expectancies for elderly people. Many are living longer than they expected, so they have not saved enough to support themselves in their last years. Their families have had to pick up the slack, which can be very expensive.

One estimate is that it costs an average of $140,000 to care for an elder family member in the home, as Market Watch reported recently in "Tax breaks you should know about if you're caring for elderly parents."

Family caregivers do not have many options, when it comes to assistance with paying these bills. However, there are some tax deductions that might be useful to help with some of the costs.

First, it is possible to claim an elderly parent as a dependent for tax purposes. Second, if out of pocket expenses are made to hire someone to care for an elderly person so a taxpayer can go to work, then some of that money might also be deductible. Third, if employers offer dependent care savings accounts, the money can also be used to help with elder care expenses. Finally, some medical expenses paid on behalf of an elder dependent, might also be deductible.

For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Market Watch (Feb. 13, 2018) "Tax breaks you should know about if you're caring for elderly parents."