Orlando Estate & Elder Law

Stretch IRAs Stretched to a Limit?

The Senate Finance Committee unanimously voted to eliminate stretch IRAs. Some experts believe that it is likely to become law.

Stretch IRAs are an important tax and estate planning tool for many wealthy people. They allow a non-spousal beneficiary to inherit an IRA account and stretch any taxes owed on it throughout their lifetimes. This allows for more funds in the account to be used to grow wealth than would be possible if taxes were due immediately.

Many members of Congress have long sought to eliminate this possibility, but their attempts have failed.

The Senate Finance Committee has now voted to eliminate stretch IRAs by making all taxes due within five years of inheritance, as Financial Advisor reports in "Stretch IRA: Are Its Days Numbered?"

The legislation is unlikely to pass on its own, but it still stands a good chance of becoming law as part of a larger tax overhaul that Republicans in Congress are expected to propose. For that overhaul to work, the Republicans hope it can be presented as revenue neutral overall.

They want to have any tax cuts paid for by raising other revenue, cutting spending or covered through expected financial growth. Although the revenue consequences of eliminating stretch IRAs are disputed, some believe it could bring in billions more per year. As a result, it is likely to be included as a way to help pay for other tax cuts.

If this does become law, many people with hefty retirement accounts will want to revisit and update their estate plans as soon as possible.

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 (Dec. 23, 2016) "Stretch IRA: Are Its Days Numbered?"

Hear Ye, Hear Me - On Wednesday, January 28, 2015

Please join me this Wednesday for an update on Estate Planning 2015.

The presentation will be held at Horizon Bay at 360 Montgomery Road, Altamonte Springs 32714 from 4:00 to 6:00 p.m.

There is no charge to attend but reservations are requested so we can have plenty of room and materials for all.

Call my friends at Horizon Bay at 407-786-5637 or register on my website.

Bring your questions and come see me this week.

 

UK Historic Wills Are Available Online - Will Yours?

 

Wills can tell a lot about what people value. Looking through old wills can show how values might have changed over the years. The UK has recently aided that effort by making its archived wills available electronically dating back to 1858.

 

We often hear about the estates of recently deceased celebrities. Anyone can read the newspaper or search Google to find out the details of Michael Jackson's estate. However, the estates of historic famous people are more difficult to find. It often requires going to the library and pouring over history books.

 

 In the United Kingdom, however, some historic wills have recently been made available online for people to search through. The Independenthas the story in an article titled "New digital archive will allow public to view wills of historic names."

 

The database includes many famous names, such as Winston Churchill and Charles Dickens. This is an interesting project and well worth a look for anyone who is interested in the lives and deaths of historic figures.

 

 Closer to home, in the United States, something like this would need to be done on the state level.

 

One important message for modern estate planning is that wills are public.

 

 When filed with a probate court, wills become available for the public to access. While it is not as easy to access wills in the United States as it is in the United Kingdom, it can still be done.

 

 Thus, if you want your estate to remain private, you should not rely on a will. Please consider a consultation to explore your options.  Visit my website for more information and to schedule an appointment.

 

 

 

Reference: The Independent (December 27, 2014) "New digital archive will allow public to view wills of historic names"

High-Drama Estate Battle - What Not To Do

Sarah Long was found dead in her home last July. While police are still investigating the circumstances of her death, the battle over her estate is heating up.

Sarah Long was reported missing last July and found dead in her home of gunshot wounds. Initially, her death was ruled to be a suicide. However, inconsistent evidence at the scene later caused police to open up a homicide investigation. The police still do not know what happened to Ms. Long.

 She left behind an estate worth nearly $1 million.

 DavidsonNews.net has the full story in "As police investigate, battle rages over shooting victim's estate."

 Here is a quick overview:

 Long had previously made a will that left everything to her boyfriend. She also had an estranged husband and, under South Carolina law, the husband should be entitled to 15% of her estate regardless of what her will states.  (In Florida, the amount would be 30%.)

 The husband and the boyfriend have been fighting over the estate in probate court. To make interesting matters more interesting, Long's family has also intervened.

 There are allegations that Long made the will giving everything to her boyfriend under duress and that her husband abused her.

 The latest development? The boyfriend and the husband have reached an agreement to which Long's family objects. If it turns out that Long was murdered, then the identity of the killer may also play a role in who gets the estate.

Even if your estate won't involve this kind of intrigue, advance planning can save your family a lot of heartache.  Please contact my office to so we can keep your estate plan drama-free.

 Reference: DavidsonNews.net (December 24, 2014) "As police investigate, battle rages over shooting victim's estate"

Actor's Plan is Ordinary - And Public

The details of another celebrity's estate have recently been revealed. This time it is the estate of late actor Bob Hoskins. Unlike some other celebrity estates, Hoskins' is fairly ordinary.

Actor Bob Hoskins passed away last April at the age of 71. He was known for playing tough guys in movies who normally had a soft interior. Recently, the contents of his will were released.

 He left his entire 1 million pound estate to his wife of 32 years.

 The Daily Mailhas the full story in "Pennies from heaven... Bob Hoskins leave 1 million to wife of 32 years who helped him battle depression." The article includes a brief rundown of Hoskins' acting career, including his time as a circus fire-eater.

 Hoskins' will is somewhat refreshing. Recent celebrity estate cases have often been fairly messy with serious estate planning mistakes. Hoskins, however, did what many ordinary people choose to do, he left everything to his spouse.

 If a mistake was made here, it is that we know what Hoskins chose to do with his estate. By using a will, the details of his estate were made public. If he had used a trust, it is more likely that his estate and his wife's privacy would have remained free from public scrutiny.

 That is something that everyone should keep in mind. Wills are made public. If you do not want everyone knowing the details of your estate, then you need something besides a will.

 I would be happy to educate you on the full range of options available to fit your unique circumstances.  Please visit my website for more information.

 Reference: Daily Mail (December 20, 2014) "Pennies from heaven... Bob Hoskins leaves 1 million to wife of 32 years who helped him battle depression"

Ruby Says "Don't Do It!" - Let Your Dog Survive You

For many people, dogs are more than just best friends. They are a valued member of the family. However, pets, unlike other family members, are legally property. This raises the question whether you can direct that your pets be put to sleep after you pass away.

An Indiana woman named Connie Ley passed away in November. In her will, she made provisions for her pet German shepherd. The first provision was fairly standard. Ley directed that one of her friends should look after the dog. However, Ley also went on to direct that the dog should be put to sleep, cremated and that its ashes should be buried with Ley.

 The Washington Posthas the full story in an article titled "Indiana woman wants to be laid to rest with her German shepherd. One problem: The dog is still alive."

In this particular case, the dog is currently in a shelter waiting for a court to determine whether Ley's wishes will be followed.

 This is not the first time that the issue has come up. In some other cases courts have decided to put pets down as directed in the wills of the owners. The reason for this is that as much as we often think of our pets as part of the family, the law treats them as personal property.

 Animal cruelty laws aside, we are free to do with our pets as we please, including directing what should happen to them after we pass away.

 The lesson here? If you want to determine what will happen to your pets after you pass away, then you should make that a part of your will.   I would be happy to assist in crafting a plan that is fair to you and your furry friends.  

Reference: Washington Post (December 17, 2014) "Indiana woman wants to be laid to rest with her German shepherd. One problem: The dog is still alive"