ESTATE, TAX AND BUSINESS PLANNING IN FLORIDA
This is a 140 page book which I update every few years, which is specifically referenced to Florida law. The Table of Contents is listed below. If you or your organization would like a complementary copy, contact the office and we will arrange to have it sent to you.
TOPIC - Page
1. Establishing Domicile
A. Why it is Important - 10
B. How it is Established - 10
2. Florida Wills
A. Intestacy - 11
B. Validity of Out-Of-State Wills- 11
C. Planning with Wills - 12
D. Review of your Estate Plan - 13
E. Proper Execution - 14
F. Revocation of Wills - 14
3. Will Contests
A. Invalid Signing - 14
B. Testamentary Capacity - 14
C. Fraud, Duress and Undue Influence - 15
D. Dead Man’s Statute - 15
E. Disinheriting - 15
F. Penalty Clause for Contest - 15
G. Loss of Will - 15
4. Probate
A. In General - 16
B. What Assets Are Subject to Probate - 16
5. The Florida Probate Process
A. Will - 18
B. Letters of Administration - 18
C. Personal Representative - 18
D. Notice to Creditors - 18
E. Creditors Claims - 19
F. Inventory - 19
G. Accounting - 19
H. Distribution - 19
I. Discharge - 19
6. Small Estates
A. Summary Administration - 20
B. Disposition without Administration - 20
7. Ancillary Probate Administration - 20
8. Probate Expenses
A. Probate Costs - 21
B. Attorney and Personal Representative Fees - 21
9 Joint Ownership
A. Married Couples - 22
B. Tenants by the Entireties - 22
C. Joint Tenants with Rights of Survivorship - 23
D . Loss of Control over Property - 23
E. Tax Basis Step-Up - 23
F. Wasting an Estate Tax Exemption - 24
G. Gift Tax Ramifications - 24
H. Presumptions of Survivorship - 24
10. Benefits of Revocable Living Trusts
A. Probate - 25
B. Control - 26
C. Disability - 26
D. Guardianship - 26
E. Privacy - 26
F. Estate Taxes - 26
G. Amendments - 26
H. Pour-Over Will - 26
I. Money Management - 27
J. Income Taxes - 27
K. Funding - 27
11. Planning with a Revocable Living Trust
A. Trust Document - 27
B. Funding the Trust - 27
C. Pour-Over Wills - 30
D. Attorneys Fees and Revocable Trusts - 31
12. Choosing a Trustee - 31
13. Federal Transfer Taxes
A. The Estate Tax - 32
B. The Gift Tax - 38
C. The Generation Skipping Transfer Tax - 40
14. Reducing the Estate Tax with Trusts
A. All to Survivor - 41
B. Bypass Trust Planning - 42
15. A Basic Example - 42
16. Numerical Examples - 44
17. A Visual Approach - 45
18. Disclaimer Planning
A. Federal Requirements - 47
B. Florida Law - 47
C. What can be Disclaimed - 47
19. Powers of Appointment
A. Types of Powers - 47
B. Purposes - 48
20. Tax Apportionment
A. Federal Law - 48
B. Florida Law - 48
21. Generation Skipping Transfer Tax Planning
A. Allocating the Exemption - 50
B. Marital Deduction Planning - 50
C. Allocation Specifics - 50
D. Rule against Perpetuities - 51
22. Planning for Incapacity
A. Durable Powers of Attorney - 51
B. Living Wills - 53
C. Designation of Health Care Surrogates - 54
D. Absence of Advance Directive - 55
E. Do-Not-Resuscitate Orders - 55
F. Anatomical Gifts - 55
23. Guardianships
A. Types of Guardians - 56
B. Establishing the Guardianship - 57
C. Guardianship of the Property - 58
D. Guardianship of the Person - 58
24. Classifications of Trusts
A. Living vs. Testamentary Trusts - 59
B. Revocable vs. Irrevocable Trusts - 59
25. Planning with Life Insurance
A. Taxation of Life Insurance - 60
B. Revocable Life Insurance Trusts - 61
C. Irrevocable Life Insurance Trusts - 61
D. Beneficiary Designations - 63
26. Estate Planning with Charitable Giving
A. Charitable Remainder Trusts - 63
B. Pooled Income Funds - 65
C. Charitable Lead Trusts - 65
D. Charitable Bargain Sales - 65
E. Gift Annuities - 65
F. Family Foundations - 65
27. Family Limited Partnerships
A. Valuation and Tax Benefits - 67
B. Advantages - 68
C. Disadvantages - 68
D. Guidelines for Forming - 69
28. GRITs, GRATs and GRUTs
A. Personal Residence Trusts - 69
B. Grantor Retained Annuity and Unitrusts - 70
29. Other Wealth Transfer Techniques
A. Outright Gifting - 71
B. Installment Sales - 71
C. Private Annuities - 72
30. Asset Protection
A. Florida Exemptions - 72
B. Asset Protection Methods - 74
31. Planning for Individual Retirement Accounts
A. General Taxation of Retirement Accounts - 75
B. General Time for Distributions - 76
C. Minimum Distribution Rules - 76
D. Income Tax Treatment - 77
E. Rollovers - 78
F. Spousal Rules - 78
G. Trusts as Beneficiaries -78
H. Roth IRAs - 79
I. Charitable Giving - 80
J. Disclaimers - 80
K. Stretch IRAs - 80
32. Planning for the Non-Citizen
A. The Non-Citizen Spouse - 81
B. Nonresident Alien Decedents - 81
33. Florida Homestead
A. Homestead Requirements - 82
B. Real Estate Tax Exemption - 82
C. Devise and Descent - 82
D. Creditor Exemption and Probate Status - 83
E. Restrictions on Lifetime Transfers - 84
34. Spousal Rights
A. Intestate Succession - 84
B. Elective Share - 84
C. Exempt Property - 86
D. Family Allowance - 86
E. Homestead - 86
F. Pretermitted Spouse -86
35. Other Marital Matters
A. Prenuptial Agreements - 86
B. Tax Consequences of Divorce - 88
C. Equitable Distribution - 89
36. Gifts to Minors
A. Florida Law - 90
B. Tax Matters - 90
C. Minors Trusts - 91
D. Crummey Trusts - 91
E. Educational Trusts - 91
37. Medicaid Planning
A. Application Requirements - 92
B. Income - 92
C. Exempt and Allowable Resources - 92
D. Transfers - 92
E. Disqualification Period - 93
38. Real Estate Sales
A. General Concerns in Sales Transactions - 93
B. Real Estate Brokers - 94
C. Listing Agreements - 95
D. Sales Contracts - 96
E. Closing - 97
39. Other Real Estate Matters
A. Types of Ownership - 97
B. Taxation of Principal Residences - 98
C. Tax-Free Exchanges - 99
D. Sale of Homestead Property by Executor - 99
E. Property Owned by Non-Resident Decedents - 99
F. Estate Tax Liens - 99
G. Transfers to and from Trusts - 100
40. Community Property
A. Relocation - 101
B. Florida Community Property Act - 102
41. Florida Taxes
A. Intangible Personal Property Act - 102
B. Inheritance Tax - 102
C. Tangible Personal Property Act - 102
D. Personal Income Tax - 102
E. Corporate Income Tax - 102
F. Documentary Stamp Tax - 102
42. Income Taxation of Trusts and Estates
A. Trusts and Estates as Taxable Entities - 102
B. Computation of Income Tax Liability - 103
C. Grantor Trust Rules - 104
D. Tax Year End - 104
E. Tax Rates - 104
F. Other Trust Tax Rules - 104
43. Trust Administration
A. Duties of Trustees - 105
B. Powers of Trustees - 106
C. Accountings - 106
D. Income and Principal Act - 106
E. Tax Duties of Trustees - 106
F. Distributions - 107
44. Debtor and Creditor Matters
A. Exempt and Immune Property - 107
B. Fraudulent Transfers - 110
C. Considerations involving Corporations - 111
45. Post-Mortem Planning
A. Tax Filings - 113
B. Collections Issues - 114
C. Income Tax Elections - 114
D. Disclaimers - 115
46. Business Entities
A. Sole Proprietorships - 116
B. Corporations
1. Articles of Incorporation - 116
2. Filing Requirements - 116
3. Organizational Meeting - 117
4. Appointment of Officers and Directors - 117
5. Issuance of Shares and Stock Certificates - 117
6. Bylaws - 117
7. Shareholders Agreements - 117
8. Voting Trusts - 118
9. Officers - 118
10. Record-Keeping Requirements - 118
11. Closing Down the Business - 118
C. General Partnerships
1. Organization - 119
2. Name - 119
3. Registration Statement - 119
4. Partnership Authority - 119
5. Capital Structure - 119
6. Operational Issues - 120
7. Books and Records - 120
8. Sale and Purchase of Partnership - 120
9. Termination - 120
D. Limited Liability Partnerships - 120
E. Limited Partnerships
1. Formation - 121
2. Limited Partnership Agreement - 121
3. Operation - 122
4. Dissolution - 122
F. Family Limited Partnership Planning
1. Estate Tax Reduction - 123
2. Asset Protection - 123
3. Control of Enterprise/ Wealth Transfer - 124
4. Creation - 124
5. Appraisals - 124
6. General Partner - 125
G. Limited Liability Companies
1. Characteristics - 125
2. Governing Documents - 125
3. Member-Manages LLC - 126
4. Manager-Managed LLC - 126
5. Liability of Members and Managers - 126
6. Conversion to LLC - 126
7. Dissolution - 127
H. Subchapter S Corporations
1. Eligibility - 127
2. Shareholders - 127
3. Permitted Year - 128
4. Election - 128
5. Termination of Election - 128
6. Effect of Election on Corporation - 128
7. Effect of Election on Shareholders - 129
I. Not-for-Profit Corporations - 129
J. Land Trusts - 129
47. Sale and Purchase of a Business
A. Due Diligence - 130
B. Sale and Purchase of Assets
1. Buyer - 130
2. Seller - 131
3. Sale of Business Name - 131
4. Apportionment of Price among Assets - 131
C. Sale and Purchase of Stock
1. Seller - 132
2. Buyer - 132
3. Mechanics of the Transfer - 132
D. Sale of Partnership Assets
1. Sale of Partnership Interest - 132
E. Sale of a Limited Liability Company - 133
48. Taxation of Subchapter C Corporations
A. Formation of Corporation - 133
B. Operation of the Corporation - 133
C. Redemptions - 134
D. Liquidations - 134
E. Reorganizations - 134
F. Effect on Shareholders - 135
G. Effect on Corporations - 135
49. Taxation of Partnerships
A. Partnership Operations - 136
B. Basis - 136
C. Contributions to Partnership - 136
D. Distributions by Partnership - 137
E. Entity Classification - 137
50. Taxation of S Corporations
A. Property Distributions - 137
B. Allocations - 137
C. Passive Investment Income - 138
D. Computation of Taxable Income - 138
E. Distributions of Appreciated Property - 138
F. Stock Basis - 138
G. Distributions - 138
H. Built-In Gains Tax - 139
51. Taxation of Limited Liability Companies - 139
52. American Recovery and Reinvestment Act of 2009
A. Individual Incentives
1. Making Work Pay credit - 139
2. Seniors and others - 139
3. First-time homebuyer tax credit - 140
4. New car deduction - 140
5. Alternative Minimum Tax patch - 140
6. Child tax credit - 140
7. Unemployment compensation - 140
8. Education - 140
9. Transit benefits - 141
10. Earned Income Tax credit - 141
11. Energy incentives - 141
B. Business Incentives
1. Bonus depreciation - 141
2. Code Section 179 expensing - 142
3. Net operating losses - 142
4. Work Opportunity Tax credit - 142
5. Cancellation of Indebtedness - 142
6. Energy incentives - 142
7. More business incentive - 142