Category: Estate Planning

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.

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Wednesday November 20th, 2024.

Running a family-owned business is no small task. It takes years of effort, dedication, and smart decisions to build something that stands the test of time. However, what happens when it is time to hand the reins to the next generation? Without proper planning, your business could face unnecessary taxes, disputes among family members, or even failure.

Why Estate Planning Is Essential

In Florida, family businesses are a huge part of the economy, but passing them on can be tricky. Without a clear plan, things like taxes and disagreements can tear apart years of hard work.

With a proper estate plan, you can:

• Reduce Taxes: Using tools like trusts and gifting strategies can lower the tax burden on your heirs.
• Prevent Disputes: Estate plans clarify ownership and management roles, which reduces confusion and arguments.
• Keep the Business Running: A well-thought-out succession plan ensures your business stays operational during transitions.

Practical Ways to Protect Your Family Business

1. Have a Strong Succession Plan

Planning for who will run the business is one of the most important steps. You should identify who will take over, whether it is a family member or someone else, and prepare them for the role. 

For families, this can mean separating management responsibilities from ownership. For example, heirs who are not involved in running the business could receive nonvoting shares, while active members manage day-to-day operations.

2. Use Legal Tools to Your Advantage

Trusts are incredibly useful in estate planning. Options like Grantor Retained Annuity Trusts (GRATs) allow you to transfer the business while keeping an income stream for a set period. Intentionally Defective Grantor Trusts (IDGTs) are another option that provides tax advantages while maintaining control of the business during the trust term. These tools also help protect your assets from creditors.

3. Get Expert Advice

Estate planning can be complicated, especially for businesses in Florida. This is why it is a good idea to work with professionals, such as attorneys, tax advisors, and financial planners. Their knowledge ensures your plan follows the law and makes the most of your financial opportunities.

Do not leave your family business’s future to chance. Contact Wickersham & Bowers today and take the first step toward securing your legacy.

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Monday October 21st, 2024.

Blended families are common today. However, they bring unique challenges, especially when it comes to estate planning. When you or your spouse have children from a previous relationship, making sure everyone is cared for takes some careful planning. It can get complicated, but it is definitely doable if you take the right steps.

How Florida’s Inheritance Laws Impact Blended Families

In Florida, if you pass away without a will, your estate could be divided in ways you did not expect. By law, your spouse might get half of your assets while your children get the other half. This could cause problems, especially if there are stepchildren in the picture who are not automatically included. To avoid these kinds of conflicts, you should consider having a clear estate plan in place.

Why a Simple Will Is Not Enough

Many people think a simple will is enough, but for blended families, it often is not. If you leave everything to your spouse, your children might miss out in the future, especially if your spouse remarries. A trust can help solve this problem. With a trust, you can make sure your spouse is provided for during their lifetime while also guaranteeing that your children receive their inheritance when the time comes​.

The Importance of Beneficiary Designations

Beneficiary designations are also very important in blended families. These apply to life insurance policies and retirement accounts, and they make sure that the right people get your assets. Keep in mind that you should regularly update these designations, especially after major life events like getting remarried or having more children. 

Addressing Family Tensions

Blended families can sometimes face tension when it comes to estate planning. It is important to talk openly with your family about your wishes so that everyone understands your plan. This can help prevent arguments later. In some cases, it is helpful to involve a mediator or a legal professional in the process.

Protect Your Family’s Future

Planning your estate in a blended family can be challenging, but it is necessary to ensure that your spouse and children are both taken care of. Make sure to use trusts, update beneficiary designations, and communicate clearly with your loved ones. If you need help, Wickersham & Bowers is here to guide you through the process.

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Monday September 23rd, 2024.

A Power of Attorney (POA) refers to a document that legally allows someone else the right to make decisions on your behalf. A POA can be crucial if you need someone to handle your finances or healthcare decisions. Also, with a POA, you can ensure that your wishes are followed in case you are incapacitated. 

Types of Power of Attorney in Florida

Florida recognizes several types of POAs, each serving different purposes:

• General Power of Attorney: This type allows someone (called the agent) to manage your financial matters. They can pay bills, manage accounts, or handle business transactions.
• Durable Power of Attorney: For a durable POA to be effective in Florida, the document must clearly state, “This durable power of attorney is not terminated by the principal’s incapacity.”
• Healthcare Surrogate: In Florida, the healthcare version of a POA is called a “Designation of Health Care Surrogate.” This document allows your agent to make medical decisions for you if you cannot make them yourself.

Key Requirements for a Valid POA

To ensure that your POA is valid in Florida, it must meet several specific requirements, including: 

1. You and your agent must be at least 18 years old and of sound mind. 
2. Florida law also requires that the POA be signed by you (the principal) in front of two witnesses and notarized.

You should choose your witnesses carefully. They should be “disinterested,” meaning they are not family members, agents, or people who stand to inherit from your estate. 

How to Create Your POA

1. Draft Your Document: You can create a POA using an attorney, estate planning software, or by downloading a template. Make sure the document clearly outlines the agent’s powers and responsibilities.
2. Sign in the Presence of Witnesses: You, your witnesses, and a notary must be present to sign the POA. If you are unable to sign the document yourself, the notary may do it for you.
3. Store the Document Safely: Keep the original document in a safe place and let your agent know where it is. You should also give copies to any relevant parties, like healthcare providers or financial institutions.

Get Personalized Guidance

Creating a valid Power of Attorney in Florida can be straightforward if you follow the correct steps. At Wickersham & Bowers, we are here to help you navigate the process and ensure everything is done correctly. Contact us today for personalized assistance with your estate planning needs.

On behalf of The Law Office of Wickersham and Bowers posted in Estate Planning on Monday August 26th, 2024.

The risks of not having a will or trust in place are far-reaching, and they go beyond just creating complexities concerning the continuity of your estate. It leaves your loved ones vulnerable to exploitation, especially because of the potential lawsuits that can drag on for years in court. Recognizing these risks is important for anyone who thinks about dying intestate and then taking proper steps to have a will or trust in place. 

Here’s a list of potential risks if you have no will. 

Your Family Has No Control Over the Distribution of Your Assets

If you don’t have a will or trust in place before your demise, your loved ones will not have the ability to distribute your assets peacefully. The state intestacy laws will take precedence and assign heirs to your estate based on some generic legal formula. The outcomes of this legal formula may not address the specific needs of your family, especially if the appointed heir blows through the family fortune in a few months. 

Ugly Family Disputes that Can Damage Your Pristine Reputation

If you don’t leave a legally defined plan for your estate’s continuance after your passing on, you will be creating a perfect recipe for ugly family disputes. The disputes will not only leave your family divided in different directions; the disputes will damage a reputation that took you years to build. In addition, your family will pay dearly for these disputes when they end up in court. 

Probate-Related Complications

Not having a will or trust in place will create complications during probate. It will take your family a longer time to complete the legal process of administering your estate, pay debts, and distribute your assets amongst all beneficiaries. It is even worse when disputes arise during the process. 

Problems with Legal Guardianship and Care Decisions

Not having a will or trust in place will negatively impact any minors you leave behind after your demise. Making arrangements for legal guardianship for these minors will be harder, which exposes them to all forms of abuse. You will not only protect their interests, but it also acts as the instrument for appointing suitable guardians who will put their interests first. 

Safeguard Your Legacy

Given that none of us is guaranteed to live forever, it is only prudent to prepare a will or trust to provide your loved ones with a proper means to facilitate the distribution of your estate after your passing on. Contact Wickersham & Bowers today to discover how we can help you secure the future you envision.