WHY PLAN FOR THE UNPREDICTABLE?

People typically don't prepare for much.  They have this attitude of'I'll just wing it'. However, when there is an imminent threat, all those laid back people turn into the ultimate preppers.

Fear placed inside of someone truly fuels the fire and gets the person up and in motion. With the recent passing of Hurricane Irma, everyone's life has been turned upside down for almost two weeks now.

With the unpredictability of Hurrican Irma's path, it was advised that PLANNING was the only way to get through this historical beast of a storm.  We had the news stations airing 24/7 hurricane coverage for nearly a week- that has to say something.

Once the news made it clear we were in the path of destruction, it was every man for himself to get prepared! Long lines at gas stations to fill up gas tanks for cars and generators. Long lines at the grocery store to stock up on non-perishable items (especially water and as much junk food as they can fit in their shopping cart) Long lines to pick up plywood, batteries, fans, etc.

Thankfully at the last minute, Hurricane Irma changed it's path and our city was not directly hit. However our fortune was some other town's misfortune. Sadly, that's how life tends to work out.

Although you cannot determine the exact path and overall impact of a hurricane, the fact of the matter is, that if you failed to prepare for the storm and the aftermath you would be in much worse shape once all is said and done.

Estate planning is the way we plan for the future that is unpredictable just like that of a hurricane.  Fortunately and unfortunately, we as humans are the only animals that know we are going to die, yet we do not know when or how it will happen.

We do not have a tracker that holds the potential future paths our lives might take. Therefore, you do not know if and when (or if at all) you will become incapacitated. You do not know if your 'adult children' who just went away to college will act recklessly and need their parents to step in and help them out.  (A parent can not make legal decisions for a child that is over 18, because at that time they are an adult in the eyes of the law).

Estate planning allows you to prepare for the unpredictability of what we call life. It is not fun to think about, but it is a reality. Preparing for your incapacity and passing not only will bring you peace of mind, but it will also make things easier on your loved ones who survive you and have to handle your affairs when you are gone.

Through effective estate planning, you have the ability to name who will make financial and medical decisions on your behalf if you become incapacitated.  You have the ability of naming who will or will not receive from your estate once you pass away.  Have no fear-if you chose to do nothing, the State of Florida will 'plan' for you.  There is a good chance that the State of Florida's plan will not be what you would have wished for yourself and your loved ones.

Start your estate planning today so you can have peace of mind that your wishes are known for the future.

Call The Hershey Law Firm at (954) 303-9468 today for your free consultation to learn more about being prepared for your future.

Remember: You Can't Predict The Future But You Can Plan For It.

STEP RIGHT UP--FORM A STRAIGHT LINE--NO SKIPPING

Estate planning simply allows you to decide who will or will not receive from your estate when you are gone. Of course there are more complex issues surrounding estate planning, but for this moment, we are just going to focus on this one issue; beneficiaries.

A beneficiary is any person who gains an advantage and/or profits from something. You can be the beneficiary of someone's kindness, the beneficiary of a good education, or even the beneficiary of your own hard work.  When it comes to estate planning, you can be the beneficiary of an estate plan and receive money passed down from a loved one.

There is no black and white rule that says you must make your family members your beneficiaries of your will. Yes it is true, you cannot entirely disinherit a spouse, but if you were planning to do that, why are you even married to that person?

If your children did not treat you right while you were alive, why hand them a stack of cash that you worked so hard to receive and allow them to enjoy the fruits of your labor when you are gone?

If you fail to plan or if your plan is invalid because you thought you would save a few dollars by drafting your own documents, you will pass away 'intestate' and the state will decide who will receive from your estate based on Florida Statutes.

With proper estate planning, you can name specific beneficiaries to receive from your estate. If you want to leave everything to charity, go for it. If you want to leave $1.00 to your brother to annoy him from your grave, go for it. If you want to treat your children differently and give them different amounts, go for it.

Be sure to be specific when drafting your estate planning documents to avoid challenges to your will. Challenges to wills by distant relatives are so common that lawyers have a nickname for those people: "laughing heirs"- as in they will be laughing all the way to the bank if their challenge succeeds. People tend to come out of the woodworks and believe that they're closer than they are and should have some claim.  

There is no need to worry about a guilt trip when you are gone. Remember, you are GONE. Do not worry about how you will make a family member feel when they realize they are not a named beneficiary in your estate plan.  Be selfish, do what you feel is right inside, not what you think others would expect of you.

To avoid challenges to your will and make sure the right beneficiaries receive from your estate, you will need to work with an experienced estate planning attorney.

If you live in Miami-Dade, Broward, or Palm Beach county contact an experienced estate planning attorney at The Hershey Law Firm at (954) 303-9468, to discuss your estate planning needs.

You Can't Predict The Future But You Can Plan For It.

A New Year's Resolution You Can Actually Follow Through With

We are now 4 days into 2016. You may or may not have already ditched your new years resolutions by now.  After all, just because the calendar presents a new year, it doesn't mean you are going to turn into a gym rat, run a marathon, or change your diet from regularly eating pizza and pasta to eating no carbs and drinking green smoothies.

There is one resolution you can make that does not require changing your daily routine; that is reviewing your estate plan! It is time to dust off your estate planning documents and make sure your plan accurately reflects your current wishes and goals.

If you live in South Florida and do not have any estate planning documents, it is time to prepare them! Estate planning documents, such as your will, trust, and power of attorney are living documents. They need to be reviewed and updated as the laws change and as your family and financial situations change.

“There is one resolution you can make that does not require changing your daily routine; that is reviewing your estate plan! ”

Have there been any life changing events since the last time you reviewed or prepared your estate plan? If you can answer 'yes' to any of the following questions, then your estate plan should be reviewed:

* Did you get married or divorced?

* Did your spouse pass away or become incapacitated?

* Did you have or adopt any children?

* Did any of your beneficiaries marry, divorce, have children, pass away or become incapacitated, or encounter creditors or other financial problems?

* Did any of your designated fiduciaries pass away or become unfit to serve in their designated roles?

* Did you retire?

* Did your financial situation change?

* Did you buy or sell a home?

* Did you sell your business?

* Did you acquire new assets?

If you live in Miami-Dade, Broward, or Palm Beach county contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs.

You Can’t Predict The Future, But You Can Plan For It.

Eeny, meeny, miny, moe.......Friends vs. Family

Family isn't always blood. It's the people in your life who want you in theirs; the ones who accept you for who you are. The ones who would do anything to see you smile and who love you no matter what. 

You work hard your entire life; why not pass your hard earned assets on to the ones you love and who you feel deserve it. You are not obligated to give your assets to any specific family member. You can give your assets to your friends. However, without proper planning there is a chance your estate could end up in the hands of family members you are not too fond of.

So how do you stop that from happening? You draft a well written Last Will & Testament or Trust that spells out exactly who you want to receive from your estate and who you do not want to receive from your estate.

Disinheriting someone can be a way to haunt a family member from beyond the grave, but there may be pragmatic reasons involved. So if you plan to leave someone out of a will, there is a blueprint for doing it.

Spouse and Minor Children

Under Florida law, you are not allowed to disinherit a spouse (unless there was a prenuptial agreement). The spouse will be entitled to an elective share of 30% of your estate.

You can not completely disinherit a minor child. Florida's Constitution contains homestead laws which prohibit the head of a family from leaving his or her residence to someone other then their surviving spouse or minor child if either is alive.

Adult Children

As children turn into adults, there are times when there is no longer a relationship anymore. If that is the case, parents don't feel comfortable passing their hard earned assets to their children.  In Florida, if a parent wants to disinherit an adult child, they need to clearly state their intentions in the will and state they don't want that child to receive. Simply by omitting that child from the will, is not enough.

“Disinheriting someone can be a way to haunt a family member from beyond the grave, but there may be pragmatic reasons involved.”

Parents

Parents are not entitled to anything in your will. But if you die without a spouse or children, your estate will go to your closest relatives who are your parents. So if you want to deliberately disinherit a parent, you need to write it in the will and designate a different heir.

Extended Relatives

In Florida, there is no legal obligation to leave assets to siblings, aunts and uncles, or cousins. But if you die without a spouse, children or parents, your next closest relatives would inherit your estate.

Just remember, estate planning requires asking yourself 'WHAT IF". It is so important to determine who you want and who you don't want to receive from your estate and the possible scenarios that occur when you pass away. 

If you live in Miami-Dade, Broward, or Palm Beach county contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs.

You Can’t Predict The Future, But You Can Plan For It.

PROCRASTION: THE ABILITY TO WITHSTAND THE URGE TO DO ANYTHING PRODUCTIVE.

Being a 'pro' at anything is something to be proud of. That means you are very talented. If you are an athlete, you would want to be a pro-athlete.  When it comes to estate planning, it is not an advantage if you have retained and maintain a 'pro' status when it comes to procrastinating.

To say you never procrastinate, is a lie.  Don't kid yourself. Everyone has fallen victim to the 'dark playground'. After all, the fact that you are reading this article means you are currently in the 'dark playground' and avoiding doing things that are actually on your 'to do list' (which I kindly appreciate and in this instance, I am more than happy to see that you are procrastinating)

“Stop being a ‘pro’crastinor and be ‘pro’active when it comes to your estate planning. There is no guarantee there will be a tomorrow, so prepare today.”

When it comes to estate planning, procrastinating should never be an option. It eventually causes family fighting and the chance of losing a portion of your estate to creditors. 

Great example of how procrastinating can cause more problems than expected.

Sonny Bono, passed away at the age of 62 due to complications from injuries sustained in a skiing accident. At the time of his death, Bono passed away with no estate planning, not even a simple will.  Fights ensued, due to the fact Bono had multiple marriages and children from each of those marriages. Even worse, at the time of his death, a secret love child surfaced wanting a piece of Bono's estate.

If Bono had not procrastinated and prepared his estate planning documents, he could have clearly stated who would and who would not receive from his estate (including a statement excluding any possible 'love children').

Stop being a 'pro'crastinor and be 'pro'active when it comes to your estate planning. There is no guarantee there will be a tomorrow, so prepare today.

If you live in Miami-Dade, Broward, or Palm Beach county contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs. You can’t predict the future, but you can plan for it.

My Future Ex-Spouse Deserves NOTHING!

First comes love, then comes marriage, then comes divorce? If you realized that you never should have gotten married before having children, we salute you. However, most people marry, have children, then have an UH-OH moment and divorce. 

While in the process of getting divorced, you wish for your future ex-spouse to receive nothing! After all, you feel they don't deserve anything. What more is there to say?

If only you could say to your future ex-spouse, 'no soup for you' when it comes to receiving anything from your estate. If you are proactive and decide to update your estate planning documents while in the midst of the divorce process (which can take months or even years), in the State of Florida you cannot fully disinherit your spouse. The only way to leave your future ex-spouse out of your will and receive nothing is to have signed a valid prenuptial or postnuptial agreement. Otherwise, your spouse is entitled to the 'elective share'.

In Florida, the elective share to which a spouse is entitled comprises an extensive list of types of assets and property, which is detailed in Florida Statute 732.2035. The spouse is entitled to 30% of your estate through the elective share. However, if your spouse is going to take the elective share of your estate, a request must be filed within 6 months of date of service of notice of administration or within 2 years after the date of the decedent's death.  

If you are in the process of a divorce it is best to update your estate planning documents as soon as possible. Make sure your soon to be ex-spouse does not benefit more then allowed by the State of Florida. Also, do not forget to change any beneficiary designations that list your spouse to receive on anypay on death accounts (ie. life insurance policy, retirement accounts, investments, etc.)

“The only way to leave your future ex-spouse out of your will and receive nothing is to have signed a valid prenuptial or postnuptial agreement. Otherwise, your spouse is entitled to the ‘elective share’.”

Once you are officially divorced, do not forget to update your will or trust yet again. You should remove any language regarding your ex-spouse from your will or trust and at this point they no longer have a legal right to receive anything from your estate.

If you live in Miami-Dade, Broward, or Palm Beach county contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida at (954) 303-9468 to discuss your estate planning needs.

You Can't Predict The Future, But You Can Plan For It!

Heroes Get Remembered, But Legends Never Die

Legend: MICHAEL JACKSON   

Estate Planning Mistake: FAILURE TO FINISH WHAT YOU START

The singer's fame and place in pop culture is so big that even though he was a human being like the rest of us, it seemed he would somehow live forever. That's partly why nearly everyone was shocked at his 2009 passing and still are today. 

Although the music legend, Michael Jackson, did so many things right in the music industry, one thing he failed to do right was his estate planning. One major lesson that can be learned from Michael Jackson's estate is: FAILING TO FINISH WHAT YOU START

Michael Jackson created a trust, but never fully funded it, which defeated a primary purpose of having a trust. This caused a lot of fighting within his family. His estate was made public when filed with the probate court and all secrets were let out for the world to see.

“If you never place the items you wish to keep protected into the safe, and someone robs your house, your assets are not protected. ”

Why would someone want a revocable trust?

What is a revocable trust?

A legal document that allows you to state your final wishes. In Florida, you can state who will receive and who will not receive from your estate. You are able to retain control of your assets during your lifetime and place stipulations on those who are to receive from your estate after your passing.  

What are the benefits of a revocable trust in Florida?

(1)Keep assets out of the probate court. Eliminates court fee and attorney's fees

(2)No delays and hassles associated with the probate process

(3)Private document. No one will ever have access to your financial information or who benefited from your estate.

How do you 'fund' a trust in Florida?

A trust is only as valuable as the assets that 'fund' it. If the trust is not funded, the trust is nothing more then a sheet of paper. Funding a trust simply means transferring property into the trust as well as retitling bank accounts, real estate and investments. 

For example, you purchase a safe that is fireproof, waterproof, and is drilled into the ground so a burglar cannot remove it easily from the home. If you never place the items you wish to keep protected into the safe, and someone robs your house, your assets are not protected. They were never placed in the safe. Same is true if you don't fund the trust with your assets. They will have to go through probate if not properly placed in your trust.

If you go through the effort of drafting a trust, make sure you complete the process and fully fund it. Last thing you want to do is pass away with a trust, and not get the full benefits of a trust.

If you live in Miami-Dade, Broward, or Palm Beach County contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs. You can’t predict the future, but you can plan for it.

Beneficiary Designations: More Important Than You May Think

In Florida, one of the simplest ways to ensure someone receives your assets, is to name a specific person as a designated beneficiary on your accounts. By law, beneficiaries (individuals or institutions) you designate for an account will receive assets in that account upon your death (avoiding probate).

What type of accounts allow a beneficiary designation?  

·      Retirement Accounts

·      Life Insurance policies

·      Annuities

In South Florida, it is important to name both a primary beneficiary and contingent beneficiary. The contingent beneficiary will receive the assets if the primary beneficiary predeceases you.

What type of account does not include a beneficiary designation?

Brokerage accounts do not include beneficiary designations, but you can complete a Transfer on Death (TOD) agreement to designate how your assets should be distributed.

“It is important to review your beneficiary designation regularly, especially when there is a life changing event (marriage, divorce, birth of a child, or death of a spouse)”

You must complete a separate TOD agreement for each single or joint account you have. A TOD agreement assigns beneficiaries, which helps you avoid the costs, delays and publicity of probate. Without the designation assigned to the account, the account would be subject to probate.

It is important to review your beneficiary designation regularly, especially when there is a life changing event (marriage, divorce, birth of a child, or death of a spouse). If you do not update your account beneficiaries, your assets could be inherited by someone you no longer wish to receive (ie. ex-spouse)

Keep in mind beneficiary designations trump what ever is stated in a will or trust. However, the will or trust can help direct how the funds will be distributed to the intended beneficiary. For instance, you might have a child who you do not trust with money, the will or trust will give instructions on how the money will be distributed to the child over a period of time so they don't spend all the money at once.

If you live in Miami-Dade, Broward, or Palm Beach county contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs. You can’t predict the future, but you can plan for it.

Digital Assets: Why They Need to Be Part of Your Estate Plan

What’s going to happen to your Facebook account when you die? Or all the songs you’ve downloaded from iTunes? 

As digital assets become more common for all of us, it is important to incorporate them into estate plans. Unfortunately, that is not always easy to do.

The average person has roughly $35,000 worth of assets stored on digital devices. That value includes purchased movies, books, music and games as well as personal memories, communications, personal records, hobbies and career information. More than 1/2 of the digital assets stored would be impossible to recreate, re-download or repurchase.

Unfortunately, those assets are increasingly at risk of being lost when the account owner dies. Many digital accounts are subject to complicated terms of service agreements, which can often make it difficult or impossible for surviving loved ones to access them. Additionally, state and federal laws could put friends and relatives who try to log on to your accounts at risk of violating anti-hacking and privacy statutes.

“The average person has roughly $35,000 worth of assets stored on digital devices.”

Initiatives are under way to put more consumer-friendly laws in place regarding digital assets. Until then, though, it’s important to incorporate detailed directions and information surrounding your digital assets into your estate plan. Here are four steps to take now: 

STEP 1: TAKE A DIGITIAL INVENTORY

Complete an annual review of all your online accounts and subscriptions and then prepare a list.

·       Examples: Computing hardware: computers, external hard drives or flash drives, tablets, smartphones, digital music players, e-readers, digital cameras, and other digital devices.

·       Any information or data that is stored electronically, whether stored online, in the cloud, or on a physical device.

·       Any online accounts, such as email and communications accounts, social media accounts, shopping accounts, photo and video sharing accounts, video gaming accounts, online storage accounts, and website blogs that you may manage. 

·       Domain Names 

·       Intellectual property, including copyrighted materials, trademarks, and any code you may have written and own.

STEP 2: DECIDE WHAT YOU WANT DONE WITH YOUR DIGITAL ASSETS

What do you want to happen to these assets? You might want some to be archived and saved, others you may want deleted or erased. Possibly you may want to transfer accounts to family members or friends.

STEP 3: GATHER YOUR PASSWORDS AND STORE IN SECURE BUT ACCESSIBLE LOCATION:

Make a list of all your passwords and keep it in a safe place. Include a copy in your estate-planning portfolio. Make sure your spouse and children are aware or your plan and how to access it.

STEP 4: BE SPECIFIC:

Make sure your durable power of attorney includes specific provisions authorizing someone you trust to deal with your digital assets and online accounts. Your will or trust will have similar provisions to allow loved ones to deal with those assets after your death.

If you live in Miami-Dade, Broward, or Palm Beach county contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida at (954) 303-9468 to discuss your estate planning needs. You can't predict the future, but you can plan for it.

A Will Was Drafted, But We Can’t Find It!

Congratulations! You decided not to procrastinate and your actually prepared your estate planning documents. You realized you have family members that will likely fight to the death to get that antique mirror hanging in your bedroom. You decided that it was important to draft a will to specifically state who will receive specific items from your estate when you pass away. Your first thought was, “What do I care? I am dead.”  But you know that your son holds grudges for years and you do not want a family riff to occur at the time of your passing.

“What happens if you pass away and nobody is able to find the will that you drafted? ”

What happens if you pass away and nobody is able to find the will that you drafted?  Florida law allows for the contents of a will or a codicil (amendment to an old will) to be proven even if the will cannot be found. 

Florida Statute §733.207 provides that the contents of a will that was lost or destroyed can be proven if either;

(1) two disinterested witnesses testify as to the contents of the will, or

(2) a correct copy of the will is provided and one disinterested witness testifies as to the contents of the will.

Florida courts have looked at various methods to fulfill these requirements. They had to decide whether a handwritten draft or a typewritten original qualifies as a correct copy. Neither qualifies. There must be a carbon copy of the original instrument.

If you go through the effort of drafting a will, make sure you keep it in a safe place, but also inform someone you trust as to its whereabouts. Last thing you want is to pass away with a will, but no one can find the original or a copy of it.

If you live in Miami-Dade, Broward, or Palm Beach counties it is time to start preparing your estate-planning portfolio. Take charge of your last wishes and make sure your loved ones receive from your estate when you are gone. You can't predict the future, but you can plan for it.

Contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs.

One Father Per Child

You married a woman who has a son from a previous marriage. You have raised him as if he was your own since he was 2 years old. You hang out all the time, you are his baseball coach, and you attend all his school functions. He pretty much thinks you are the coolest step-dad ever. You call him your ‘son’, but the reality of the situation is, he is not your son under Florida law.

“Even if you are completely involved in your step-son’s life, when it comes to being a legal heir and receiving inheritance, he can only receive from his biological father.”

When it comes to inheritance, you only have one father or one mother. Raising a child is not the same as ‘adopting’ a child.  Adoption is going to court and getting a judgment or decree of adoption and legally cutting the ties with one parent and giving it to a new parent.

Even if you are completely involved in your step-son’s life, when it comes to being a legal heir and receiving inheritance, he can only receive from his biological father.  If you want to make sure a step-son receives from your estate and they have not been legally adopted, specific language needs to be placed in your will or trust. If you do not prepare a will or trust, your step-son will receive ZERO from your estate.

If you live in Miami-Dade, Broward, or Palm Beach counties it is time to start preparing your estate-planning portfolio. Make sure your loved ones receive from your estate when you are gone. You can’t predict the future, but you can plan for it.

Contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs.

Children Do Not Inherit Until Both Parents Pass Away

One day you are at the beach in Fort Lauderdale when you get a call from your mother saying that your father passed away. Most people would break down in tears and cry. However, you had a horrible relationship with your father your whole life.  Instead, you get a big grin on your face. Your dad had a lot of money and now you are ready to collect. After all, you were his son, even with the bad relationship there is no way your father would have disinherited you.

It hurts to say this, but you will receive nothing while your mother is still alive. If one parent has passed away while the other is still alive, the answer is simple: the money is first inherited by the spouse.

In Florida when married people create estate plans, they typically ask for the money to go to their surviving spouse. The purpose behind this is to make sure their spouse is taken care of.  If there are children under the age of 18, this allows the spouse to comfortably provide for the children. There are some circumstances that a child under 18 might receive money in the form of a trust. With that said, the spouse is often put in charge of the trust until the child reaches 18.

It is extremely rare for adult children to receive any kind of inheritance until both parents have passed away. The reason for this is not to make the children feel cheated, but it is to help ensure that the needs of the living parent are not a burden or concern for the adult children.

“If one parent has passed away while the other is still alive, the answer is simple: the money is first inherited by the spouse.”

If you live in Miami-Dade, Broward, or Palm Beach counties it is time to start preparing your estate-planning portfolio. Make sure your spouse and children are taken care of when you are gone. You can’t predict the future, but you can plan for it.

Contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs.