Florida Trust & Probate Attorneys Blog
By Phillip B. Rarick, Esq., Miami Trust Attorney
Quote: There are three things that are real – God, human folly and laughter. The first two are beyond our comprehension. So we must do what we can with the third. – John F. Kennedy
Here are five bad items of advice – that you hear all the time from otherwise smart persons:
1. You Don’t Need An Estate Plan – After You Are Gone, There’s Nothing You Can Do.
We all work hard all our lives to provide for our family and loved ones; do you want to leave a legacy that goes like this: You have no will or trust. You do have a $500,000 life insurance policy naming your two minor children, Franklin and Florence, as beneficiaries. You have your home and two investment properties in your name: one in Florida and one in North Carolina. Upon death, your wife has to spend $20,000 to probate the Florida investment property and another $10,000 to probate the North Carolina property. Worse, Franklin and Florence get the $500,000 life policy when they turn 18. Franklin ignores your wife’s pleas to go to college. Believing that he is just as smart as Warren Buffet, Franklin invests all of his $250,000 in a new video game, “Steal That Car” which goes bust. Florence, also ignores your wife’s pleas to go to college; she runs off to Hollywood to be a famous actress and loses all her money to a very handsome but conman movie producer.
2. You Just Need A Simple Will.
So called “simple wills” often end up being the most expensive wills because they fail to adequately plan for the various changes and surprises in life.
3. If You Have A Will, You Don’t Need To Go Through Probate.
This is a widespread misunderstanding. Probate is the process of proving up the will, paying the creditors and administering the estate according to the will. Almost all wills that administer property must go through probate.
4. Hey, You Don’t Need To Do Anything To Protect Your Assets Because You Never Have Been Sued.
Foreigners see the U.S. as one of the most litigious societies in the world – and for good reason: it is true. You see examples in the paper every day. Last week, the Miami Herald reported that a person owning rental properties was sued for thousands of dollars by several tenants when part of the roof on their condo collapsed.
5. You Can Easily Protect All Your Assets By Putting Them In Your Spouse’s Name.
This “plan” works great – until your wife meets an extremely good con artist and invests your funds. Or she meets a younger man. Or she gets into a car accident and is sued. Or . . . well, you get the picture.
Take Away Points
1. Take time to prepare an estate plan – for the sake of your loved ones and your own legacy.
2. Avoid wills – use a living revocable trust.
3. Have a basic asset protection plan – prepared by an attorney.
4. Protect your most exposed assets – such as real estate.
5. Don’t let your children inherit a big chunk of money when they are 18 – remember when you were 18 and how long this money would have lasted in your hands at that age.
Special Note
The information on this blog is of a general nature and is not intended to answer any individual’s legal questions. Do not rely on information presented herein to address your individual legal concerns. If you have a legal question about your individual facts and circumstances, you should consult an experienced Miami asset protection attorney. Your receipt of information from this website or blog does not create an attorney-client relationship and the legal privileges inherent therein.