Stephen J. Lacy
We will introduce you to the new year of retrospective, development and building eras for the following year. Of all such resolutions you may make, few decisions are serious and long-standing enough to secure the future of your family through proper estate planning.
While it’s not as popular as you generally bump into a gym or plan a summer vacation, such property planning guarantees bring peace of mind and create a caring heritage for our loved ones. Whether you start your real estate plan from scratch or modify something outdated, these 10 resolutions will help you control your assets, protect your family and secure your future.
Draft or update your will
If you don’t have the will, now is the ideal time to deal with this important aspect of your estate planning. Will is the basis of your estate planning and outlines how you want to distribute your assets in response to your death. If you do not have it, after your death, the probate court in Florida will decide who will get your property, and this may be against your wish. If you already have a will, it’s the best time to revisit this and renew it. Has your family grown up? Do you have any important assets now, or have you experienced a life-changing marriage, divorce, or birth of a child? Your will should change in your life.
Creates trust in living
In Florida, living trusts are an effective tool to ensure that real estate avoids probate, reduces delays, and preserves the privacy of assets within the family. Unlike will, living trust allows for the direct distribution of property to be made to the beneficiaries without the need for court intervention or oversight. It also provides the flexibility to designate a trustee to manage the property in the event of incompetence. Living trust is particularly advantageous for individuals with complex assets, mixed family members, or those seeking to promote a smooth transition for heirs.
Details: Real Estate Planning: Choose an executor who will ensure that you respect your wishes when you are gone
Assign a durable power of attorney
Life is inherently unpredictable, and illnesses and injuries can lead to inability to manage your problems. A durable power of attorney grants trustworthy individuals legal authority to handle your financial matters – from paying invoices to managing your investments – in the capacity of your ability. If this important document is not in place, your family may be forced to seek court-appointed authority to manage your financial matters.
Plan healthcare decisions with advance orders
A pre-healthcare directive, or “living will,” states your wishes regarding treatment in case you can no longer express yourself. It usually includes directions for life support treatment, organ donation, and end-of-life care. By clearly implementing these arrangements, you control important decisions and save families from the burden of uncertainty at critical moments.
Check and update the beneficiary designation
Most financial assets from retirement accounts, insurance contracts, and pensions bypass your will. Assets are distributed according to the beneficiary designations listed in each account. It is important to review these specifications periodically to ensure that they match your current wishes. For example, it is important to renew the beneficiary designation to prevent unintended individuals, such as ex-spouses, from receiving assets following divorce or remarriage.
Minimizes heir’s tax impact
Although there is no real estate tax in Florida, high-value properties can potentially have federal real estate taxes. Lifetime gifts, irrevocable trust, and bequest of charity are several strategies to minimize potential tax burdens. Real Estate Planning Attorneys can help you understand how to maximize your estate planning for tax efficiency under Florida and federal tax laws.
Care and inheritance plans for minor children
If you have young children, it is essential to designate a legal guardian in your estate plan to take care of them if you are unable to do so. Additionally, you can consider establishing trust to manage succession and ensuring that funds are used responsibly for education, healthcare and other needs. Leaveing a full inheritance to a minor can cause complications as the assets cannot be legally controlled until they reach an adult. A well-structured trust can provide both control and protection for your child’s future.
Dealing with digital assets
One of the often overlooked aspects of real estate planning is the management of digital assets such as social media accounts, online banking profiles, cryptocurrency, and digital photography. It is important to create a comprehensive list of all digital accounts, including your login information, and clearly specify how these assets will be processed or transferred upon passing. This aggressive approach helps maintain digital legacy and protect sensitive information from beinglost or misuse.
Be prepared for long-term care needs
When formulating an estate plan, it is important not to overlook a long-term care plan for yourself and your loved ones. Costs related to living assistance, nursing home care, or home support are important. In addition to considering long-term care insurance, it is wise to allocate specific funds to the entire estate plan to cover these costs. Responding to your long-term care needs now can significantly reduce your family’s financial and emotional rewards in the future.
Seek professional guidance
Real estate planning is a complex process, and Florida’s unique law can add an additional layer of complexity. An experienced estate planning attorney will guide you through the process and make sure all documents are legally sound and tailored to meet your personal needs and family goals. A lawyer can also help you navigate sensitive family dynamics and ensure that your plan minimizes conflict and provides clarity to all involved parties.
Next steps in real estate planning
The New Year offers a great opportunity to manage your estate plan. Whether you’re creating a plan for the first time or updating an existing plan, these 10 solutions can help you protect your family, assets and mental security. Don’t wait until it’s too late. Working on real estate planning now leaves a legacy of love, preparation and safety for your family.
Stephen J. Lacey, JD, LLM are members of the law firm Lacey Lyons Rezanka. His field of practice focuses on real estate planning and probate.
