Can a trust qualify for the Florida homestead tax exemption?
Yes, you can still get the Florida homestead tax exemption if your property is in trust, as long as you (1) have a present possessory interest in the homestead for life and (2) you would otherwise qualify if you owned the property outright. What is the Homestead Tax Exemption in Florida? The homestead tax exemption […]
Types of Wills in Florida
5 Types of Wills for Florida Estate Planning There are five types of valid wills in Florida. 1. Simple Wills A simple will is performs all the basic functions of a last will and testament without getting into anything too complicated. A simple will appoints a personal representative (sometimes called an “executor” in other states), […]
The Importance of Homestead Planning When You Have a Minor Child and a Child With Special Needs
If you have a child with special needs receiving government benefits, you are likely already aware of the income and asset requirements involved in Medical and Supplemental Security Income (SSI). These requirements are why supplemental needs trusts are so helpful for parents with special needs children. When properly drafted, the trusts can help your child […]
What are the disadvantages of naming a trust as your life insurance beneficiary?
Why do people name a trust as their life insurance beneficiary? If you have created a living trust as part of your estate plan, you are hopefully aware of the crucial need to fund that trust. I was recently speaking with another estate planning attorney about the problem of unfunded trusts, and he referred to […]
Can the IRS attach a lien to an interest created by a lady bird deed?
The IRS probably cannot attach a lien to the remainder interest created by a lady bird deed, but it can attach a lien to the life estate interest. However, for title insurance purposes, you should act as though the IRS can put a lien on any interest created by a lady bird deed. Lady Birds […]
Does a trust have to file a tax return if there is no income?
No, a trust is not generally required to file a tax return if there is no income. However, even a small amount of taxable income may result in the need to file a tax return. Not all trusts file tax returns. For example, a revocable trust does not file a tax return, regardless of the […]
Can a trustee also be a trust beneficiary?
Yes, a trustee can also be a beneficiary of that trust. In fact, this is done commonly, especially with spouses. You might think that making the trustee a trust beneficiary would eliminate any asset protection benefits of the trust. However, according to section 736.0504 of the Florida Statutes, this is not entirely the case. As […]
Inter Vivos Trusts vs Testamentary Trusts
Trusts are frequently used in estate planning. A trust can help you avoid probate, provide asset protection for your beneficiaries, and let you retain control over assets after you pass away. Simply put, trusts can do a lot. Because trusts are so versatile, not all trusts are the same. Different types of trusts have different […]
7 Ways an Irrevocable Trust be Dissolved in Florida
All trusts can be broadly broken down into two big categories: revocable and irrevocable. A revocable trust is a trust that can be taken back. The settlor (the person who makes the trust) of a revocable trust can decide at any point to either amend or undo the entire trust. A revocable trust can also […]
Tax Implications of the Florida Lady Bird Deed
I love the Florida Lady Bird Deed (otherwise known as an “Enhanced Life Estate Deed” or a “Lady Bird Trust”). It is an incredible estate planning tool, and when used properly it can provide a number of benefits to my clients. But what are the tax implications of using the deed? Will using the lady bird […]