In law school there is a famous case where a man leaves money in  trust to take care of his dog and the question becomes who pays the estate tax, the dog or the trustee? The Court held that since a dog has no tax duties and since the trustee was not making income no one had a tax liability. These seems like a wise decision I doubt that our feline and canine friends will ever get their W-2s in on time. Furthermore animals cannot own property so if you are considering leaving your pet something in your Palm Beach Estate Plan I am glad you are reading this: that gift is invalid and will not be respected! What you can do is set up a pet trust for your fine furry (or feathered) friend. Here is my quick reference guide on pet trusts complete with four things to know about Florida Pet Trusts. 

Probate judges do a lot and sometimes we forget how vast their powers are.  For example who decides whether or not your father was of sound mind when he gifted every cent he owned to his favorite ice ream parlor? The  probate judge does. Who decides if you are allowed to watch over your grandmother’s estate while it is probated? That same judge. Judges make policy through their decisions and that policy reflects the society within. Thus it concerns me to see Alabama Probate Judges ignoring the Federal Court Order to allow same sex marriage.

In 2014 the United States Supreme Court held that an inherited IRA  was not protected from the claims of creditors. In that case the beneficiary of an inherited IRA filed for bankruptcy and the Court held that her bankruptcy estate could not exclude the IRA she inherited from her Mother. This subjected it to the beneficiary’s creditors. As a result of this decision, if you are concerned about creditors of a beneficiary reaching the inherited IRA, you may want to consider creating a trust for the individual you want to benefit and naming the trust as the beneficiary of the IRA.

Estates and trusts with charitable beneficiaries routinely seek to employ   the IRS Code Section 642(c) charitable set aside deduction for income earned by the estate and trust that will eventually (but not in thecurrent tax year) be distributed to the charitable organization. This deduction is needed when the income cannot be currently distributed, since in that case neither a distribution deduction nor a charitable deduction would otherwise be available. Oftentimes, income cannot be currently distributed because it is too early in the administrative process to distribute to the beneficiary, especially when the beneficiary is a residuary beneficiary. A recent case out of the US Tax Court (a Federal Court) has changed the modern application of this rule slightly and those involved in Florida Probate should take note and consult an experienced Florida Probate Attorney.

I have talked about guardianship in Florida before and how it is a great  way to protect the marginalized especially unprotected youths and the mentally incompetent. In an aging demographic like Florida it is important to have a great guardianship program or a lot of money could fall through the cracks. Unfortunately Florida’s guardianship program is underfunded. Last May, New Timespublished an investigation into abuse in Florida’s guardianship programs. The report showed that in cases across the state, court-appointed guardians were taking advantage of the elderly and incapacitated people they were supposed to protect. I am pleased to report that nearly a year after this expose Florida may be getting overhaul it needs and deserves.

Several important cases have come out recently on the interesting   topic of homestead rights of a wife following the death of her husband. This last week on February 25, 2015 the Fourth District Court of Appeals issued its decision in the case of Kelly v. Spain. The Court was asked to decide if a homestead exemption (originally obtained by a Husband alone) inures to the wife’s individual benefit after his death where (i) the property was held in tenancy by the entireties, (ii) the wife never filed for her own exemption and (iii) the wife maintained residency at the homestead. The Court held that the homestead exemption did inure.

You can give away whatever you own via your last will and testament   and you can with some limitations add conditions. So no you cannot tell your daughter she has to leave that jerk of a husband but you can make her go to college. Courts tend to look at whether thedemands are contrary to public policy. I read an interesting case out of South Africa that posed several interesting questions to any Palm Beach Probate Attorney. Can you disinherit your children for refusing to quit smoking?

Baby boomers have changed the way looks at many things–travel ,   business and even the modern family dynamic have greatly evolved under the demand of the greatest generation. Some researchers note this is also changing the way the modern Probate system deals with inheritance. A recent article on our sisters to North, Canada shows that a lot of money is in the midst of changing hands. When you consider the amount of inheritance and probate dispute in Palm Beach County it becomes clear The Greatest Generation may mean the greatest pay day.

Previously I have blogged about the pour over will which uses a trust set up  prior to death and the will pours your assets into the trust. One provision I have not posted about is Florida Statute 732.515. This section states that a testator may provide informal memorandum for the disposal ofpersonal property. These are read in tandem with a will not as a substitute. Normally I would never suggest using a less formal estate plan after all you want to have your affairs in order but this section has a unique use in conjunction with pour over wills that can be rather useful.

You may have noticed in your will or a relative’s multiple statements   regarding “GST” and you may be asking what does that stand for? GST is short hand for Generation Skipping Tax and frankly that is the only simple part about this tax law but here is my quick reference guide on what you need to know, and what you need to ask your estate attorney.