Category: Estate Planing & ...

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Tuesday May 20th, 2025.

As 2026 approaches, Florida families with significant wealth face a shrinking window to protect their estates from higher federal taxes. The temporary boost in the estate and gift tax exemption, set by the 2017 Tax Cuts and Jobs Act, expires at the end of 2025. 

Unless Congress steps in, the current exemption of nearly $14 million per person will drop to around $7 million. That change could trigger major estate tax liabilities for high-net-worth individuals across the state.

Why Florida Residents Should Plan Ahead

Florida doesn’t impose a state estate tax, which makes federal law the primary concern for affluent families here. But even without a local tax, federal changes can have a big impact. 

Homes, family businesses, and investment portfolios that have grown in value may all push an estate above the new threshold. If that happens, heirs could lose a large portion of their inheritance to taxes. You should act now to help avoid that outcome.

Legal Tools to Shift Wealth Out of Your Estate

There are several ways to use the current higher exemption before it disappears. One of the most effective is gifting assets to an irrevocable trust. This move removes both the asset and its future appreciation from your taxable estate. 

Some families use life insurance trusts to provide cash for estate taxes, while others prefer spousal lifetime access trusts (SLATs), which allow one spouse to benefit from a trust funded by the other. 

These approaches can keep wealth in the family while reducing what the IRS can claim later.

Don’t Wait: Use the Exemption Before It’s Gone

Time is critical. Legal and financial professionals will be swamped near the end of 2025, and many banks and advisors may cut off year-end transactions early. Planning now gives you flexibility, more choices, and less stress.

At the Law Office of Wickersham & Bowers, we help Florida families take smart, timely steps to reduce future estate tax burdens. If you’re thinking about gifting, setting up a trust, or protecting your family business, now is the time to act. Contact us today to discuss the right approach for your estate goals.

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Monday April 21st, 2025.

Florida is one of the best states for wealthy families who want to protect their legacy for generations. Thanks to state laws that allow long-lasting trusts, families can build and pass on wealth while avoiding major tax hits, especially the generation-skipping transfer (GST) tax. A dynasty trust is one of the most effective ways to do this, but it needs to be set up with the right strategy.

How Dynasty Trusts Keep Wealth in the Family

A dynasty trust is an irrevocable trust that can last up to 360 years in Florida. This allows wealth to pass from generation to generation without being taxed at every step. Instead of handing assets directly to children and grandchildren, which can trigger estate and gift taxes, the trust holds and manages the assets on their behalf.

Since the assets are never owned outright by each generation, they are shielded from estate taxes and creditors. This setup also prevents the funds from being included in divorce settlements or lawsuits.

Avoiding the GST Tax

The GST tax applies to transfers made to someone two or more generations below the giver, such as a grandchild. It’s a 40% tax that can seriously reduce what’s passed down. However, a dynasty trust funded with the federal GST exemption of $13.99 million per person in 2025 can avoid this tax altogether.

Because the exemption amount is expected to shrink after 2026 ($7 million after inflation), now is a smart time to take action. Once the trust is funded using this exemption, the assets can grow and be passed down tax-free for hundreds of years.

Florida’s Advantage for Long-Term Planning

Florida’s 360-year trust limit gives families more time than most states to let their wealth grow. Plus, trusts created here can be used by non-residents if they use a Florida-based trustee. This flexibility makes Florida a popular choice for those looking to avoid future estate tax changes.

At the Law Office of Wickersham & Bowers, we help high-net-worth families create dynasty trusts that protect their assets and reduce long-term tax burdens. If you’re thinking about setting up a multigenerational plan, contact us to schedule a consultation.

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Thursday March 20th, 2025.

Nobody likes to think about what happens after they’re gone, but estate planning is supposed to make things easier for loved ones. The problem is that wills and trusts don’t always get it right. There could be a typo, the law changed, or the document doesn’t reflect what the person really wanted. The good news is that mistakes in estate plans can be fixed, even after death.

Florida provides legal tools like judicial reformation, trust decanting, and disclaimers to help correct errors and ensure assets go where they should.

Judicial Reformation

A will is supposed to be final. However, Florida Statute § 732.615 allows courts to fix mistakes of fact or law if there’s clear and convincing evidence of an error. Judicial reformation lets a judge rewrite a will to match what the deceased actually intended.

For example, if a will leaves property to “John Smith” but the testator meant “Jon Smyth,” the court can step in and correct the mistake. Even if the will seems clear on paper, courts can look at outside evidence, like emails or witness testimony, to determine what was really supposed to happen.

Decanting

Unlike wills, trusts are harder to change, especially if they’re irrevocable. However, according to Florida Statute § 736.0415, trustees can “decant” a trust. They can move assets from an old trust into a new one with better terms.

Decanting might be necessary when:

• The trust has outdated terms that make managing it difficult.
• Tax laws change, and the current trust structure no longer makes sense.
• The beneficiaries’ needs have shifted, and the trust needs to be more flexible.

Disclaimers

Sometimes, a beneficiary doesn’t want an inheritance. Some of the reasons could be that inheritance comes with tax burdens, or maybe they’d rather have it go to someone else. A qualified disclaimer lets them legally refuse the inheritance without penalty.

To work, the disclaimer must be:

• In writing
• Filed within nine months of the decedent’s death
• Irrevocable (once you disclaim it, you can’t change your mind)

If you need help fixing an estate plan, contact Wickersham & Bowers today to get the right legal guidance.

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Thursday February 27th, 2025.

Many Florida residents want to leave something meaningful for their families and for the causes they believe in. One way they can do that is through charitable trusts. A charitable trust allows you to donate to charity while securing tax benefits and managing wealth in the process. By supporting education, healthcare, or any other cause, a charitable trust ensures your generosity continues long after you’re gone.

What Is a Charitable Trust?

A charitable trust is a legal way to set aside money or assets for charity. In the process, you can keep the financial benefits for yourself or your heirs. There are two main types of charitable trusts:

• Charitable Remainder Trust (CRT): You or your chosen beneficiaries receive an income from the trust for a set period. After that, whatever remains goes to the charity of your choice​.
• Charitable Lead Trust (CLT): The charity gets income from the trust first. Then, after a certain period, the remaining assets are passed to your heirs​.

How Can a Charitable Trust Help With Taxes?

Charitable trusts can help reduce taxes in several ways:

• Income Tax Deduction: You can get a tax deduction when you set up the trust. The deduction is based on the amount that will eventually go to charity​.
• Avoiding Capital Gains Tax: If you donate appreciated assets, like stocks or real estate, you won’t have to pay capital gains tax when they’re sold​.
• Lower Estate and Gift Taxes: Assets in a charitable trust may not be counted in your taxable estate. This can reduce or even eliminate estate taxes​.
• Protection from Creditors: Since the assets are held by the trust, they are generally shielded from lawsuits and financial claims​.

Besides tax advantages, you can use charitable trusts to support charities for years to come. Many nonprofits rely on steady donations to plan their programs and help more people​. Instead of a one-time gift, a charitable trust can provide long-term financial support for these organizations.

Make a Plan That Reflects Your Values

A charitable trust can be a great way to give back while also protecting your estate. If you want to explore your options, Wickersham & Bowers is here to help. Contact us today to get started on an estate plan that fits your goals.

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Tuesday January 21st, 2025.

Building and protecting family wealth is something many families in Florida think about. You work hard to create financial security, so it only makes sense to ensure that your wealth benefits not just your children but future generations as well. One smart way to do this is by setting up a dynasty trust.

What Is a Dynasty Trust?

A dynasty trust is a long-term, permanent trust designed to hold and protect family wealth for generations. Unlike other types of trusts that eventually end, a dynasty trust can last indefinitely, depending on state laws. In Florida, these trusts can continue for hundreds of years.

One of the biggest advantages of a dynasty trust is that it shields assets from estate and generation-skipping transfer taxes. For example, let’s say a family transfers $13 million into a dynasty trust before the 2026 tax exemption change. That money could grow into hundreds of millions over generations—without being chipped away by estate taxes.

Why Consider a Dynasty Trust?

Here are some solid reasons why Florida families might want to create a dynasty trust:

• Tax Savings: Assets in a dynasty trust are not subject to estate or generation-skipping taxes, which means more money stays in the family.
• Protection From Creditors and Lawsuits: Since the trust owns the assets—not the beneficiaries—they are safe from creditors, lawsuits, and even divorce settlements.
• Control Over How Money Is Used: Grantors (the people who create the trust) can set clear rules for how the money is used.
• Flexibility in Asset Management: You can fund the trust with cash, real estate, investments, or even business interests. This makes it easier to manage and grow wealth over time.

Important Legal Considerations

Setting up a dynasty trust is not something to take lightly. Families need to think carefully about choosing the right trustee to manage the trust. A trustee handles everything from managing investments to making sure the trust follows state laws. Some families even choose to base their trust in states with friendlier tax laws, like Nevada or South Dakota, while still benefiting from Florida’s legal protections.

Securing Your Family’s Future

Are you ready to start building your family’s legacy? Contact Wickersham & Bowers today to learn how we can help you protect your wealth for generations to come.

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Thursday December 19th, 2024.

Estate planning is about more than just deciding who gets what. For the ultra-rich, estate planning involves making thoughtful choices to protect assets, reduce taxes, and ensure a smooth transfer of wealth to loved ones. Since tax liabilities can take a substantial portion of an estate, using advanced strategies can help minimize these costs. 

Trusts 

Trusts are one of the most effective tools for managing taxes in estate planning. Irrevocable trusts are especially useful because they remove assets from your taxable estate. This reduces the amount that could be taxed after death while also giving you control over how those assets are distributed.

For instance, an Irrevocable Life Insurance Trust (ILIT) keeps life insurance payouts out of the taxable estate. This means that your loved ones can receive the full amount of the policy without additional tax burdens. 

Another helpful option is a Charitable Remainder Trust (CRT). This type of trust allows you to support a charity while also reducing your taxes. It provides you with income during your lifetime and sends the remaining assets to the charity later.

Gifting

Another way to lower tax liabilities is through gifting. You can take advantage of the annual gift tax exclusion, which lets you give up to $19,000 per person in 2025 without paying taxes on it. These gifts can include money, assets, or even covering medical or educational expenses directly. Over time, this strategy significantly reduces the overall value of your taxable estate.

If you have business assets, a Family Limited Partnership (FLP) could be a good choice. This structure lets you transfer parts of your business to family members at a reduced tax value, lowering the taxes owed on those gifts.

Business Planning 

High-net-worth business owners should consider creating a succession plan. Tools like Limited Liability Companies (LLCs) and buy-sell agreements can help transfer business ownership without hefty taxes. These steps protect the business’s value and ensure it stays in the family.

Start Planning for Your Future

Advanced estate planning aims to create a lasting legacy and protect your loved ones. If you are ready to take the next step, contact Wickersham & Bowers today to get started.