What Florida’s Wealthy Can Learn from the Estate Plans of the Rich & Famous
I bet you dollars to donuts that you don’t remember what your Florida will says. Although you may not recall exactly what your estate plan does, or says, there are some important estate planning points to remember and some mistakes to avoid. Wondering what the rich and famous estate plans look like or what mistakes you can learn from? A recent Forbes article gives you insight:
“Estate Planning Lessons From James Gandolfini And Other Celebrity Legacies”
Your Florida Estate Plan
- Often, people simply forget the specifics of their estate plan
- Who gets what….exactly?
- How does the Florida revocable trust work with the will?
- Where’s the source of cash to pay the federal estate tax
Do What The Rich & Famous Do….. maybe, maybe NOT
- Whenever a famous person dies, the media comments, often, on his or her estate plan, his estate and any probate litigation which comes out of it
- The media also points to mistakes in their estate plan, or
- Things which the rich and famous could have done for their estate and beneficiaries, but didn’t
- Often times, there are, admittedly, some very simple and inexpensive things to do to your estate plan which were not done
So, here are some basic or simple mistakes which Palm Beach probate litigation firms see out there. Or, put another way, here are a few estate planning points to consider. I’ve also set forth below the link to the recent Forbes article on estates of celebrities and estate planning lessons.
Estate Planning Pointers/Issues Identified & Mistakes to Avoid
- Review the contents of your will each year with your Florida probate lawyer
- You are not going to remember exactly who gets what
- No matter how much you love your kids and 1st, 2nd or 3rd spouse, people do like to change their wills or Florida revocable trusts
- Take a look at your estate plan each time you get divorced or have a child
- Review your estate plan with a Florida estate lawyer after any significant financial event… examples of this could be a) the tech wreck which started in March of 2000 b) the Great Recession of 2009-2012 c) the inflow of a huge amount of money (e.g. you inherit millions or sell your family business or simply a piece of land that has now increased your wealth substantially)…why?
- Because you may want to spread the wealth around among existing or new estate beneficiaries. And…. you also may NOT want your existing beneficiaries to inherit so much money. Or…if you lost a lot of money, you may want to give more $$ to certain beneficiaries over others.
- Analyze how your will substitutes work with your Florida revocable trust and will. Remember: IRAs, retirement accounts, joint bank accounts and beneficiary designations like annuities and life insurance “go” to the named beneficiary…… outside of Florida probate and apart from your will or estate or your revocable living trust
- What’s your plan to pay the Federal Estate Tax?
- Do you have enough cash on hand ? Because the executor of your will needs to pay estate taxes to Uncle Sam 9 months after you die. (Although you can get a six month extension, there will be interest charges)
- Which of your beneficiaries must pay the estate tax in your estate? Or, which “pot of money” in your estate plan bears the brunt of the estate tax?
- Does the funding of the Estate Tax come from your revocable trust? Did you intend this? Here’s why you want to consider this: a $5 Million life insurance policy may “go” to the named beneficiary free of estate tax, but clients end up making the beneficiaries of their Florida revocable trust “pay”.
- Which of your estate beneficiaries do you want to share in the payment of the estate tax.
Here is the link to the Forbes article on estate planning & celebrities.