Category: Wills & Trust

The Five W’s of Trusts (What, Who, Why, Where, and When)

Since my last article, people have been calling my office and inquiring on what a trust is and its potential benefits. As a result, I have decided to focus this month’s article on answering, what I like to call, the 5 W’s of a trust.

1) What: a trust is a legal document that transfers property during or after a person’s lifetime for the benefit of someone. The 2 most common types of trusts are: A Revocable and an Irrevocable Trust. A revocable trust can be changed or altered at any time by the creator or creators of the trust during his or her lifetime. In most circumstances, an irrevocable trust cannot be altered or changed.

2) Who: a trust can be made out for the benefit of any person that you may want, including young children, your spouse, a friend, or your parents.

3) Why: a trust can automatically transfer property without the use of a will or the need to go to court. Additionally, the use of a trust is usually faster than that of a normal will in transferring property and title as well as it helps avoid the lengthy process of probate in courts. A trust also has the following benefits: it secures your property for the benefit of your beneficiaries, it protects the property from claims from creditors while in the trust, and it also ensures your privacy (as a trust does not become a public record like a will does). Some trusts may even better your tax status with certain trusts if you fall above the taxable exemption.

4) Where: a trust can dispose of property anywhere, so long as the local law of where the property is located is followed and the property is properly titled in the name of the trust.

5) When: a trust can be created today with the help of our attorneys.

A trust is a very important document for the preservation of your property in the event of death or incapacitation. There are many factors to consider in creating a trust document and only a licensed attorney can walk you through the fine details of both the creation and the proper funding of a trust. The Coral Springs Probate Attorneys at Reinfeld & Cabrera, P.A. have experience in creating trusts and can formulate a trust to meet all your needs. Call us now to schedule a free initial consultation and to discuss our special rates. We are your Coral Springs lawyers. We offer legal services in Coral Springs, Tamarac, Margate, Fort Lauderdale, Coconut Creek, Pompano Beach, Deerfield Beach and Surrounding areas.

Important Estate Planning Definitions by Coral Springs Estate Planning Attorney

What is a Will?

A will is a written document, signed and witnessed, which sets out instructions for the disposition of your estate only at the time of or after the event of your death.

What is a Trust?

A trust is a set of instructions which come into effect as soon as the trust is created which means that it provides property management during your life and/or after your death. My best comparison is a trust is almost like a company, one you manage while your alive, and if your become incapacitated or die, it can be managed by your successors according to your instructions.

What is Probate?

The probate process takes place after someone passes away. Its primary purpose is to ensure your loved one’s assets transfer to the proper beneficiaries.

Differences between a Will and a Trust

Apart from the main difference that a will comes into effect only after death whereas a trust is in effect during lifetime and after death, there are many more things to think about when deciding between the two estate planning tools. Here is a list of some of the more significant differences which a trust attorney can explain in further detail:

•A will and the property in the will is subject to the probate process; a trust and assets in the trust are not subject to the probate process. However, assets in both plans may be subject to federal estate tax.

•Because a trust does not go through the probate process it may remain a private affair; a will goes through probate and therefore it becomes accessible to the public.

•A will allows you to assign a guardian for your minor children; a trust allows you to control when and how your minor children, grandchildren and other dependents access your trust assets.

•Often, the costs to set up and manage a trust can be much higher than setting up a will.

•The assets in a will do not need to be managed; a trust can only plan for assets which have actively been transferred into the trust, therefore the assets in a trust need to be actively managed.

•The actions of a trustee are not usually overseen by a court; the actions of an executor of a will are court supervised through the probate process.

•Because a will is only effective after death, it does not allow for instances where the person becomes incapacitated through injury or illness or old age; a trust provides a plan for the possibility of incapacity.

So, which is better for your family?

Obviously both have their pros and their cons and if this breakdown of wills and trusts cannot help you decide which plan you should use, a qualified and knowledgeable Trust attorney in Coral Springs will be able to point you in the right direction and help you put together a comprehensive estate plan.

Call our Coral Springs Probate attorney today! 954-334-1520.

When it comes to estate planning, we at Reinfeld & Cabrera P.A. are here to tell you how, together with proper estate planning, a living trust saves estate taxes. As the old saying goes, “nothing is certain but death and taxes”, however did you know that with a living trust and proper estate planning you could reduce or even eliminate estate taxes? If you are still not convinced that you should invest your time in a living trust with an attorney who is well versed in estate planning we suggest you keep reading!

So what is a living trust (also called a revocable living trust)? Basically it is a document that contains instructions about what should happen to your assets when you die. It differs from a will in the fact that it gives you the opportunity to avoid probate at death. A living trust gives YOU control over the assets you leave to minor children and/or grandchildren, and if you become incapacitated it prevents the court from controlling your assets.

Now that you know what a living trust is, the next question you are probably asking is how does a living trust save estate taxes. The first important thing to do when it comes to creating a living trust is to ensure that both you and your spouse utilize your estate tax exemptions. When working with your attorney on your estate planning chat about inserting a tax-planning provision into your living trust which will split the total amount of each spouses estate into two equal trusts. Simply by planning ahead both spouses are able to use their tax exemptions and pay no estate tax.

If, for example, you and your spouse have a combined estate value of $10,680,000 by creating a living trust and utilizing your tax exemption through a tax-planning provision you could split your combined estate into two trusts of $5,340,000.00 , each and save on estate taxes when you and/or your spouse passes away. When you die your trust will use your 5,340,000.00 exemption and then when your spouse dies their trust will use their 5,340,000.00 exemption thus reducing your taxable estate to $0. This way the value of your estate will go to your beneficiaries.

The other benefit of estate planning making use of a living trust is that you can maintain control over how your part of the estate is managed and distributed. Furthermore the assets in your estate will be valued and taxed only at your death and any appreciation after you pass away will not be included in your spouse’s estate. The assets in your trust will, however, be available to your spouse if they need.

While this estate planning feature is only available to married couples, there are other options to help save you taxes if you are single. Simply give one of our experienced estate planning attorney’s at Reinfeld & Cabrera P.A. a call to discuss what options are available to you.

If you are trying to find out exactly what does a trust cover, you have come to the right trust attorney here at Reinfeld & Cabrera, P.A. to find the answer to what you are looking for. Trusts are flexible, varied and complex and can be useful estate-planning tools for you and your family. With the guidance of a trust attorney you will realize that a trust is able to cover a myriad of things.

A considerable amount of your assets in real estate, a business or an art collection are just a few things covered by a trust. One of the biggest advantages of a trust is that it is able to provide you with the ability to put conditions on how and when your assets are distributed after you die. You may decide to have your estate distributed to your heirs in a non-direct or delayed method and not in a way that is immediately payable. Working with an experienced trust attorney you can ensure that your trust will be able to accommodate such things. Perhaps you want to ensure the continual support of your surviving spouse, but also want you to make certain that the principal or remainder of your estate goes to your chosen heirs after your spouse dies. Trusts can assist in reducing estate and gift taxes and distribute assets to heirs efficiently while avoiding probate court. Together with the advice of your trust attorney you and your spouse will be able to maximize your estate-tax exemptions through the use of a trust. Another area covered by a trust is in providing for a disabled relative without disqualifying him or her from Medicaid or other government assistance. Furthermore a trust will better protect your assets from creditors and lawsuits.

There are five standard forms of trusts. The credit-shelter trust allows you to write a will bestowing an amount to the trust up to but not exceeding the estate-tax exemption. The generation-skipping trust permits you to pass on a sizeable amount of cash tax-free to beneficiaries who are at least two generations your junior. A qualified personal residence trust allows you bestow your home as a gift while you keep control of it for a stipulated period of time. The irrevocable life insurance trust could work to remove your life insurance from your taxable estate, help pay estate costs, and provide your heirs with cash for a variety of purposes. Lastly, a qualified terminable interest property trust allows you to direct your assets to particular relatives especially if your family contains divorces, remarriages and stepchildren.

Each type of trust has advantages and disadvantages. It is important that you discuss these advantages and disadvantages thoroughly with your trust attorney before setting up your trust. Do not hesitate to contact a probate attorney from Reinfeld & Cabrera, P.A. to discuss setting up the best trust that suits you and covers your needs.

They say that the only thing in life that is certain is death and taxes. So when dealing with life’s certainties it is important to provide for those loved ones which are left behind. Consulting an estate and trust attorney from Reinfeld & Cabrera, P.A can help you decide whether a trust or a will is better for you and your needs. Here is a short guide to the differences between a will and a trust to hopefully help you with the process of estate planning.

What is a will?
A will is a written document, signed and witnessed, which sets out instructions for the disposition of your estate only at the time of or after the event of your death.

What is a trust?
A trust is a set of instructions which come into effect as soon as the trust is created which means that it provides property management during your life and/or after your death.

Differences between a will and a trust
Apart from the main difference that a will comes into effect only after death whereas a trust is in effect during lifetime and after death, there are many more things to think about when deciding between the two estate planning systems. Here is a list of some of the more significant differences which a trust attorney can explain in further detail:

• A will and the property in the will is subject to the probate process; a trust and assets in the trust are not subject to the probate process. However, assets in both plans may be subject to federal estate tax and to state death tax.
• Because a trust does not go through the probate process it may remain a private affair; a will goes through probate and therefore it becomes accessible to the public.
• A will allows you to assign a guardian for your minor children; a trust allows you to control when and how your minor children, grandchildren and other dependents access your trust assets.
• Often, the costs to set up and manage a trust can be much higher than setting up a will.
• The assets in a will do not need to be managed; a trust can only plan for assets which have actively been transferred into the trust, therefore the assets in a trust need to be actively managed.
• The actions of a trustee are not usually overseen by a court; the actions of an executor of a will are court supervised through the probate process.
• Because a will is only effective after death, it does not allow for instances where the person becomes incapacitated through injury or illness; a trust provides a plan for the possibility of incapacity.

So, which is better?
Obviously both have their pros and their cons and if this breakdown of wills and trusts cannot help you decide which plan you should use, a qualified and knowledgeable trust attorney will be able to point you in the right direction and help you put together a comprehensive estate plan.

While you may be able to buy some documents to help you set up your own will, hiring a wills and trust attorney is your best bet when it comes to making sure your wishes are legally documented and carried out after you pass away.

Florida has specific state requirements that determine what can be included in a will or a trust. If you are not up to speed on the specific state requirements, you should consult with a wills and trusts attorney when naming a personal representative, beneficiaries, or any specific instructions for your estate.

Also, you may feel like you have an easy estate to plan, but if you are in a second marriage (or third, fourth, etc.), are recently divorced, have any minor children, children with any special needs, or want to leave some of your estate to a charity, you have an estate that could use the expert planning advice of a wills and trusts attorney.

Without the proper legal estate plans in place, a large portion of your estate could be lost during the probate process. However, with the proper preparations from a knowledgeable wills and trusts attorney, your estate could be well protected, making sure your beneficiaries receive all that you wish.

One missing document, or unsigned piece of paper, could be the difference between a legal will or one that can easily be contested. Don’t take a chance on doing it yourself. Hire a wills and trust attorney at Reinfeld and Cabrera, P.A. We not only provide wills preparation to control the disposition of property upon death, but we also prepare trusts, including revocable, special needs, minor, generation skipping, irrevocable, charitable and other trusts.

In Florida, dying without the proper estate plans in place means that your estate will be subject to intestate succession law. What is intestate succession law? This means that assets that you own by yourself, will be left to relatives under this law, in the absence of your wishes being formally laid out in a will, or if a will is found to be invalid. A decedent is the person who has died.

Within intestate succession law, the entire estate of a decedent is left to the surviving spouse, if the decedent has no surviving children, or any lineal descendants. A lineal descendant can include children, grandchildren, and great grandchildren, of the decedent down the generational line. Also, if the decedent and the surviving spouse only have children that they share together, and no other descendants, then the entirety of the estate will be left to the surviving spouse.

Within intestate succession law, a surviving spouse will receive one half of the decedent’s estate, while any lineal descendants of the decedent, but who are not also descendants of the surviving spouse, will share the remaining half of the estate. Any lineal descendants of the decedent will share the estate if there is no surviving spouse.

If a decedent has no surviving spouse, or any lineal descendants, then intestate succession law sees the estate pass to lineal ascendants, which includes parents and grandparents, and to collateral relatives, which includes siblings, aunts and uncles.

The intestate succession law in Florida only applies to assets in the estate that would normally be left in a will, but does not apply to other assets, such as property transferred to a living trust, property that is jointly owned, and funds in a retirement account, just to name a few. These particular assets will be left to the named beneficiary, regardless of whether or not you have a will to allocate the other assets in your estate.

Unless you want your estate to fall under intestate succession law in Florida, it is best to have your estate plans laid out in legal documents.

Pet trusts in Coral Springs – the smart move in protecting your loved ones.

Setting up pet trusts in Coral Springs is one of the most important decisions you, as a pet owner in Coral Springs, can make for the well being of your pets.

In the event of your death have you made plans for the most vulnerable members of your family? You are all the family that your pet has to rely on. That is why together with the help of Reinfeld & Cabrera, P.A. you can ensure, by setting up a Pet Trust, that your beloved pets will want for nothing should they be orphaned.
Pet Trusts in Coral Springs is governed by the Florida Pet Trust Statute 737.116 Trust for care of animal. Although it is a relatively concise provision we at Reinfeld & Cabrera, P.A. have decided to decode the legalese of the statute governing Pet Trusts in Coral Springs and give you the most important factors to consider when writing up a pet trust.

Factor 1: Choosing your caregiver.
The number one essential decision when setting up pet trusts in Coral Springs is choosing the right caregiver. This is the person who will be stepping into your shoes as surrogate parent to your fur kids. Bearing in mind that the responsibility of a pet is enormous, make sure to choose someone who you know will have your pet’s best interests at heart. It is also extremely important to name an alternate caregiver should your first choice caregiver be unable to accept the responsibility.

Factor 2: Appointing a trustee.
A trustee is the person (or corporation) who you will rely on, to properly administer your pet’s trust. The trustee will have the responsibility of making sure that your chosen caregiver is really giving your pet the protection and attention it deserves.

Factor 3: How much will your pet need?
The next crucial consideration in setting up pet trusts in Coral Springs is deciding how much you will need to set aside for the continual wellbeing of your pet. This will vary depending on your individual standards however here are a few things to think about:

• The type of pet (dog, cat, iguana, bird etc)
• How long your pet could live
• The lifestyle you want your pet to have (this includes things like travel expenses, food, Insurance, toys & treats, recreational activities and pet-sitting)
• Potential medical costs for your pet

There are many more things to think about but deciding on the above three factors is the first step in the right direction to creating pet trusts in Coral Springs. Understandably all this information can be overwhelming and that is why we at Reinfeld & Cabrera, P.A. are here for you to rely on when setting up your pet’s trust in Coral Springs.

Differences Between Will and Trust

When you are getting your estate in order and doing all of the necessary planning, it is imperative you work with someone you can trust to can explain to you all of the complexities in the estate planning process, such as the differences between a will and a trust.

The estate planning that happens at the law offices of Reinfeld & Cabrera, P.A. involve a counsel of professional advisors who have knowledge of and understand your goals and concerns, know of all of your assets and are familiar with your family structure. This group can consist of your lawyer, accountant, financial planner, and banker, just to name a few.

After you pass away, you want to make sure your estate planning covers the transfer of your property, as well as a variety of other personal matters. Both a will and a trust are important estate planning tools and whether you should establish a will or a trust, or both, depends on different factors.

A will goes into effect after a person dies. This document generally names a person to carry out the wishes of the person who made the will, and also names who will receive the person’s property. A trust, on the other hand, is in effect as soon as a person creates the trust as part of their estate planning. With a trust, property can be appointed to someone before the person dies, when they die, or even dated at a specific time following the death. A trust is an arrangement where a person, also called a trustee, holds property for the good of a beneficiary.

A good estate planning team will also explain to you that another difference between a will and a trust is that a will needs to pass through probate and will become public during this process. A trust can often save time and money as it does not need to go through the probate process, keeping the trust information private.

Reinfeld & Cabrera, P.A. can help you with your estate planning and further explain the differences between a will and a trust. We can make sure we set up exactly what is needed for your specific circumstances, ensuring that your estate is cared for in the manner you wish.