Category: Estate Planning & ...

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Friday July 14th, 2023.

Estate planning is an essential step to protecting and disbursing assets after one’s passing, yet many make critical errors which can compromise their intentions. To shed more light on this important topic, we turn to Wickersham & Bowers – Daytona Beach lawyers in estate planning who offer valuable insight on top estate planning mistakes to avoid

Failing to Create a Comprehensive Estate Plan

One of the most frequent errors people make is failing to create an in-depth estate plan. While many may believe a simple will is sufficient, this approach often leaves many aspects uncovered. According to Wickersham and Bowers’ guide for effective estate plans, a plan should also include durable power of attorney documents (DPA/HCP), healthcare proxy forms, trust documents (if desired) and possibly more – to cover financial matters, healthcare decisions and the distribution of assets upon incapacity or death.

Neglecting to Update the Estate Plan

Another costly error involves failing to regularly review your estate plan. Life can bring many changes such as marriage, divorce, births, deaths, and financial fluctuations that could significantly alter your estate plan. Wickersham and Bowers emphasize the importance of reviewing and updating it when life events such as marriage, divorce or births occur as they could significantly impact it; failing to do this could have serious repercussions; outdated information may lead to improper distribution or could exclude potential beneficiaries altogether.

Overlooking the Importance of Beneficiary Designations

Life insurance policies, retirement accounts and even bank accounts often require individuals to designate beneficiaries; unfortunately, many fail to update these designations when circumstances change, leading to unexpected distributions of assets. It’s important of regularly review and update beneficiary designations so they align with your wishes and overall estate plan.

Failing to Consider Tax Implications

Wickersham and Bowers advise seeking professional guidance for understanding potential tax implications as well as ways to lower them; through tools like trusts or gifting strategies you may be able to decrease the tax burden for your estate and keep more assets for beneficiaries – an approach to tax planning can make a real difference in its long-term financial wellbeing.

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Monday June 12th, 2023.

Estate planning plays a crucial role in protecting assets while efficiently passing them along to loved ones at minimal tax costs. By employing effective strategies, estate planning allows you to safeguard hard-earned wealth for generations while simultaneously minimising taxes. 

For optimal tax reduction, it is imperative to gain an intimate knowledge of estate taxes. Familiarize yourself with current estate tax laws and exemptions as well as thresholds and rates to stay informed and plan your estate strategically. Seeking professional assistance from an estate planning attorney or financial advisor may provide invaluable insight in navigating this arduous terrain.

Lifetime gifting is a powerful strategy to reduce estate taxes. By giving assets away during your lifetime to beneficiaries, you can reduce the overall size of your taxable estate and take advantage of the annual gift tax exclusion, which allows tax-free gifts of a certain amount each year per recipient – an approach which enables wealth transfer without incurring significant tax implications. For larger gifts that exceed this annual exclusion threshold, filing a gift tax return and using your lifetime exclusion could be necessary – for more details see this page on filing returns.

Trusts can be powerful estate planning tools, helping reduce taxes and protect assets. Consider setting up irrevocable trusts such as generation-skipping trusts to transfer wealth directly to future generations without incurring estate taxes. Trusts also allow flexibility and control over asset distribution with potential tax advantages – speaking with an experienced estate planning professional can assist in selecting suitable trust structures for you.

Certain assets, like life insurance policies and retirement accounts, may be transferred tax-free when designated as beneficiaries for them. By designating loved ones as beneficiaries for these accounts, you can ensure a tax-free transfer of wealth. It is crucial to review and revise beneficiary designations regularly so they align with your estate planning goals.

Estate planning requires careful legal and financial considerations. Hiring an experienced estate planning attorney or financial advisor can be invaluable in helping to navigate complex tax laws, identify personalized strategies and stay abreast of evolving regulations.

Take the necessary steps now to safeguard your legacy and prepare for tomorrow.

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Tuesday May 9th, 2023.

Estate planning is vitally important for high net worth individuals looking to secure their legacy and ensure their assets will be distributed according to their wishes after they pass. Here are some benefits of estate planning:

1. Protecting Your Family’s Financial Future

Estate planning helps safeguard your family’s financial future by outlining how your assets should be distributed among beneficiaries and can reduce tax liability for them.

2. Control Over Your Estate

An estate plan gives you full control of your estate. Without one, the courts would distribute assets according to state laws rather than according to your wishes – creating an estate plan helps ensure that assets are distributed as desired.

3. Protection for Your Business

Estate planning for business owners is even more essential. A detailed estate plan will protect your venture by making sure it continues operating successfully after you pass away and can include instructions regarding transfer of ownership and control to specific individuals or groups of people.

4. Privacy

Estate planning provides privacy. Without an estate plan in place, your assets and how they’re distributed become public record. By creating one instead, your financial affairs remain private as you provide peace of mind during an already difficult period for your loved ones.

To protect your legacy through estate planning, here are some steps you can take:

1. Create a Will

Establishing a will is the first step of estate planning. Your will should detail your preferences regarding asset distribution and caretaking responsibilities after your death.

2. Consider a Trust

Consider setting up a trust to safeguard your assets. A trust will enable you to transfer ownership while still having control of them.

3. Review and Update Your Estate Plan Regularly

Review and update your estate plan regularly, especially after experiencing significant life changes such as marriage, divorce or the birth of a child. Regular updates ensure that your estate plan accurately reflects your wishes while offering maximum protection to your assets.

Estate planning is essential for individuals with high net worth to secure their legacy and preserve assets after death, giving you peace of mind as well as providing peace for loved ones who depend on you.

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Tuesday April 11th, 2023.

Estate planning is the process of making arrangements for the management and distribution of one’s assets in case of death or incapacity. It is a complex undertaking that requires careful consideration of legal, financial, and tax matters. That is why working with an experienced estate planner is highly recommended – they provide expert guidance and advice.

Professional estate planners provide clients with personalized plans that address their individual needs and objectives. This involves assessing the client’s current financial situation, recognizing potential issues or obstacles, and devising strategies to minimize taxes while increasing estate value.

One of the major advantages of working with an estate planner is their specialized knowledge and expertise in this area. They are familiar with all relevant laws and regulations related to estate planning, providing valuable insights into complex tax and financial matters. Furthermore, they help clients navigate through often confusing and intricate world of estate planning, making the process as stress-free as possible.

Another essential role of a professional estate planner is to assist clients in creating an extensive estate plan that meets all their requirements and concerns. This may include identifying beneficiaries, setting trusts, creating wills, or living trusts, managing assets, and preparing for incapacity or disability through durable power of attorney documents or living wills.

When selecting a professional estate planner, it is essential to look for someone with the appropriate credentials and experience. Ideally, you want someone who is either a licensed attorney or certified public accountant with expertise in estate planning. Furthermore, look for someone whose clients have achieved success with their estate planning objectives.

In addition to qualifications and experience, there are other factors you should take into account when selecting a professional estate planner. These include their communication style and responsiveness. You want someone who is approachable and able to explain complex legal and financial concepts clearly and simply.

Finally, a professional estate planner’s role is to give clients peace of mind and assurance that their assets will be managed according to their wishes. By working with an experienced and qualified estate planner, you can guarantee your estate plan is comprehensive, efficient, and tailored specifically to your unique requirements and objectives.

At Wickersham and Bowers, we provide guidance and council.  

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Wednesday March 15th, 2023.

Estate planning is an essential aspect of financial planning that involves making arrangements to distribute your assets and property after your death. While many people think of estate planning as something that they need to do towards the end of their life, there are several benefits to starting the process earlier, including the use of lifetime gifts.

Lifetime gifts are a popular estate planning tool that allows you to transfer assets to your beneficiaries during your lifetime. These gifts can take many forms, from cash and real estate to stocks and bonds. Here are some of the benefits of lifetime gifts in estate planning.

Reduced Estate Taxes

One of the most significant benefits of lifetime gifts is that they can help reduce estate taxes. When you give gifts during your lifetime, they are not subject to estate tax. This means you can transfer more of your assets to your beneficiaries without worrying about a significant tax burden.

Avoiding Probate

Another advantage of lifetime gifts is that they help your beneficiaries avoid probate. Probate is the legal process after someone dies, where a court oversees the distribution of their assets. Probation can be a lengthy and expensive process, and it can also be emotionally draining for your loved ones. By making lifetime gifts, you can avoid probate and ensure your beneficiaries receive their inheritance more quickly and easily.

Asset Protection

Lifetime gifts can also be used to protect your assets from potential creditors. If you transfer assets to your beneficiaries during your lifetime, those assets are no longer considered part of your estate. This means that if you face financial difficulties or are sued by someone, those assets will be protected and cannot be seized by creditors.

Simplifying Your Estate

Finally, lifetime gifts can help simplify your estate planning. By making gifts during your lifetime, you can reduce the complexity of your estate and make it easier for your beneficiaries to manage your assets after your death. This can help distribute your assets according to your wishes and avoid conflicts among your loved ones.

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Tuesday February 21st, 2023.

Drafting a will is not an easy task. There are many mistakes that can invalidate your will. Since a will acts as your last message towards your family, it is essential to ensure that it is written carefully, leaving no room for confusion. Listed below are some common mistakes people may make while writing their will.

A Holographic Will

Some states consider a holographic will valid, but most do not. It is a handwritten will without any witnesses. You can create this will if it is acceptable in your state, but make sure to research first. Florida neither recognizes nor permits holographic wills.

Having Previous Wills

You may change your will multiple times during your life because of changing circumstances. But make sure that you destroy every copy of your previous will whenever you draft a new one. Having previous wills can cause many troubles for your family.

Insufficient Testamentary Capacity

Testamentary capacity means the mental capability of the testator to create a will. Most states have a competency test that must be passed to be eligible to write a will. It includes understanding your relatives, the property you own, your selected beneficiaries, and what the will says and means. 

Having mental impairments, e.g., dementia or any other disorder, can invalidate the will. If it is suggested that you do not have enough testamentary capacity, make sure that you and your attorney have proper proof of your mental health, including reports and tests.

Fraud or Undue Influence

If the will is created through undue influence or fraud, the court immediately invalidates it. Common fraud situations include getting a fake will signed by the testator without their knowledge or a nonfamily member forcing the testator to make them a part of the inheritance.

Not Following State Laws

Many states have different requirements and languages to create a will. You must abide by all the guidelines to make sure that it is not invalidated. Following the law is an essential part of writing your will. The mandatory information in a will usually includes a statement from the testator, a list of all the heirs, and the personal representative.