Supplemental Needs Trust
Third-party special needs trusts are trusts funded with assets that the government benefits applicant had no legal right to at the time the trust was funded. Thus, the applicant cannot create a third-party special needs trust; rather, a third party must do that. Third-party special needs trusts are typically created as a receptacle for third-party […]
The Qualifying Special Needs Trust
In Florida, one spouse generally may not disinherit the other. The surviving spouse is entitled to an elective share of thirty percent of the elective estate.[1] However, this rule becomes problematic when the surviving spouse receives Medicaid benefits. The recipient of Medicaid benefits is considered to have an ownership interest in anything the recipient becomes […]
Should a Spendthrift Clause be Included in a Special Needs Trust?
A spendthrift clause “restrains both voluntary and involuntary transfer of a beneficiary’s interest.”[1] Simply put, a spendthrift clause protects the assets of a trust from both creditors and the beneficiaries of the trust. This can be especially useful for a disabled or aged individuals, who might be vulnerable to manipulative relatives, predatory creditors, or conmen. […]
The Sole Benefit Rule: A Requirement for First-Party Special Needs Trusts
First-party special needs trusts are irrevocable trusts funded with assets belonging to the individual receiving government benefits. However, transfers to irrevocable trusts normally result in a lookback penalty because the transfer is considered to be for less than fair market value.[1] So how does one fund a first-party trust without triggering the lookback penalty? The answer […]
Is a quitclaim deed the same as a lady bird deed in Florida?
The Florida lady bird deed (also called an enhanced life estate deed) is not the same thing as a quitclaim deed. However, it is possible for a single deed to be both a lady bird deed and a quitclaim deed. What is a Quitclaim Deed? The term “quitclaim” means that the grantor makes no representations […]
Does Florida Allow Lady Bird Deeds?
Yes, Florida is one the five states that allow lady bird deeds. A lady bird deed (also called an “enhanced life estate deed”) is an estate planning tool for real estate, especially your homestead. The lady bird deed can provide you with several benefits, including avoiding the probate of your home after you pass away. […]
Florida Next of Kin Law (Attorney Explains Inheritance Order)
In Florida, the Next of Kin Law governs inheritance when someone dies without a will. The term “next of kin” refers to the decedent’s closest blood relatives who are first in line to inherit. The Next of Kin Law (also called the “inheritance law”) determines the order of heirs, starting with spouses, children, and siblings […]
Pour-Over Wills in Florida
A pour-over will transfers all assets in your probate estate into a living trust after you die. A pour-over will is often used in conjunction with a revocable living trust. What does a pour-over will do? A pour-over will moves all assets from a probate estate into a trust. This is done by the personal […]
What is a codicil?
A codicil is a document that modifies or updates your last will and testament. A properly-executed codicil will update your will without you having to go through the trouble and expense of making a whole new will. In Florida, a codicil can be used to alter a will, republish a will, or even revoke a […]