Business Incorporation as a C Corporation There are very limited circumstances where a C corporation would be advised for a small business incorporation. The enactment of the more flexible limited liability company (the “LLC”) has made C corporations not very business or tax friendly. The major reason is the double taxation that C corporations are subject to …
Business Sale; Advantages and Disadvantages Between Selling Stock and Selling Assets
Business Sale; Advantages and Disadvantages Between Selling Stock and Selling Assets Selling a business (or buying a business) can be a stressful and exciting process at the same time. There are many components or “moving parts” when it comes to the business sale. One such consideration is whether the buyer will purchase the company itself …
Overview of the Process of the Purchase and Sale of a Business
Overview of the Process of the Business Sale The purchase and sale of a business (business sale) can be an extremely overwhelming and fulfilling experience at the same time. There are no two sales that will be the same, therefore, it is extremely important to treat each business sale with extreme detail and care. Communication …
Series Limited Liability Company: General Requirements
Series Limited Liability Company: General Requirements The Series Limited Liability Company (“Series LLC”) is an innovative new way to own real property. The Series LLC is only allowed in about fifteen (15) states to date, however, each year new states are jumping on the bandwagon and passing legislation to allow for such hybrid and versatile …
Overview of the Series Limited Liability Company (LLC)
Overview of the Series Limited Liability Company The Series Limited Liability Company (“Series LLC”) is a fairly new type of business entity that individuals who invest in real property could benefit from. The Series LLC is not yet accepted in every state, however its popularity is growing. The first state to enact the Series LLC …
Overview of Business Succession Planning
Overview of Business Succession Planning Business succession planning is a subset of business law, which overlaps with estate planning and taxation. Successful business succession planning includes strategies implemented to ensure that successor key executives are ready and able to continue a particular businesses’ existence following an owner’s departure.
Estate Planning for Real Property Located Outside of the State of Florida
Estate Planning for Real Property Located Outside of the State of Florida Any real property located outside of the state of Florida has to specifically be planned for in an individual’s or married couple’s estate planning. This is the case because, in most states, such property will have to go through probate if left in …
Personal Injury and Probate
Personal Injury and Probate By: Shaun M. Serelson, Esq., Partner of Reifkind, Thompson & Rudzinski, LLP There are several areas where personal injury and probate overlap. Mainly where a death or a minor child are involved in the incident. Whether from a car accident, medical malpractice, trip and fall, food poisoning or other type of wrongful …
Advantages and Disadvantages of Using Joint Revocable Trusts in Estate Planning
Advantages and Disadvantages of Using Joint Revocable Trusts in Estate Planning Basic estate planning includes the following estate planning documents: living will (do not resuscitate document), durable power of attorney for health care (incapacity planning document for health care-related decisions),
Using the Lady Bird Deed for Estate Planning
Using the Lady Bird Deed for Estate Planning A lady bird deed, which is also known as an “enhanced life estate deed”, is a strategy where an individual transfers property to someone else outside of probate while retaining a life estate in the property. The lady bird deed takes its name from Lady Bird Johnson, …
Estate Tax Reduction with Irrevocable Life insurance Trusts
Estate Tax Reduction with Irrevocable Life insurance Trusts Irrevocable life insurance trusts (“ILIT”) are one of the strategies available for estate tax reduction in estates that are near the five million dollar federal tax exemption limit. With the irrevocable life insurance trust, the owner and beneficiary of the life insurance policy is the ILIT. That ensures …
Take Advantage of Property Tax Exemptions in Addition to Homestead
Take Advantage of Property Tax Exemptions in Addition to Homestead Florida has various property tax exemptions available to residents who own property in the State of Florida. One of the most widely known tax exemptions is homestead. Homestead not only provides creditor protection for an individual’s primary residence, but also allows for a reduction in the …
The S Corporation and the Revocable Living Trust
The S Corporation and the Revocable Living Trust The S corporation election allows an entity to have pass through taxation and can be made for a C corporation or for a limited liability company. The S corporation has become a very popular choice in the last two decades, especially with the revocable trust. An estimated sixty-seven …
The Morals Clause and the Limited Liability Company Operating Agreement
The Morals Clause and the Limited Liability Company Operating Agreement A morals clause is a provision in a contract that forbids certain behavior in a person’s private life. A morals clause is useful in a situation where one of the limited liability company (“LLC”) members or partners of a business is known to act with …
Explanation of Why the Constitution can affect our President-Elect’s Estate Planning
Explanation of Why the Constitution can affect our President-Elect’s Estate Planning The Emoluments Clause, which is an anti-bribery provision located in our Constitution, may cause our President-Elect, Donald Trump to re-work his estate planning. Specifically, Article 1, Section 9, Clause 8 of the United States Constitution states that: “No Person holding any Office of Profit …
Gatlinburg Fire – The Importance of Business Liability Insurance
The Importance of Business Liability Insurance A business owner should always consider whether business liability insurance is prudent for their new and/or existing business. In almost all cases, the answer is affirmative.
Post-Mortem Planning Using Trust Disclaimers and Irrevocable Trust Decanting
Post-Mortem Planning Using Trust Disclaimers and Irrevocable Trust Decanting Many people don’t know that the estate planning process doesn’t always end at a person’s death. In some situations, post-mortem planning (ie: planning after death) is required. Two of such planning options are trust disclaimers and decanting an irrevocable trust document after funding.
Estate Planning Issues When Moving to a New State
Estate Planning Issues When Moving to a New State Knowing when to move your estate planning is tough, but when you move to a new state, your estate planning should generally move with you. Estate planning originates from state law, therefore, after moving to a new state, it is imperative that you have your estate planning …
Intricacies of the S Corporation Shareholder Limitations
Intricacies of the S Corporation Shareholder Rules and Limitations The general rule (codified in §1361 of the Internal Revenue Code) is that an S corporation shareholders are limited to one-hundred (100) at any given time during the year. If the number of shareholders exceeds one-hundred (100), then the entity is at risk of losing its …
S Corporation Basics
S Corporation Basics The S corporation is a great tool for many small businesses to explore. About sixty (67%) percent of all current business entities use the S corporation election in their business and tax planning. However, not every entity can qualify for the S corporation election. The S corporation has strict limitations on ownership that may …
Advantages of the Limited Liability Company over the Corporation
Advantages of the Limited Liability Company over the Corporation When incorporating, it is important to know the differences between the available business entity choices in order to make the best decision for future business operations. A long time ago, the corporation was the most popular business entity structure choice due to the ability of a …
Why the LLC Operating Agreement is Crucial for Limited Liability Companies
Why the LLC Operating Agreement is Crucial for Limited Liability Companies The LLC operating agreement is crucial for limited liability companies! Many people think that filing limited liability company (“LLC”) incorporation documents with the State (ie: Florida department of State: Division of Corporations)
Using the Irrevocable Trust to Remove Assets from a Taxable Estate
Using the Irrevocable Trust to Remove Assets from a Taxable Estate A trust document, such as an irrevocable trust, is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries. Trusts can be arranged in many ways and can specify exactly how and when the …
Tax Consequences of Gifting
Tax Consequences of Gifting Not many people realize that gifts may sometimes bear gift tax consequences. In general, a gift is considered taxable if it is in excess of the annual exclusion limit. The annual exclusion limit is currently $14,000.00 per year. If you are married, you may double the annual exclusion to $28,000.00. If …
Summary Probate Administration and the Process for Determination of Homestead
Summary Probate Administration and the Process for Determination of Homestead Probate administration in Florida comes two forms: formal probate administration and summary probate administration. Formal probate administration is required when a person passes away with assets worth seventy-five thousand ($75,000.00) dollars or more in their individual name.
Protecting Real Estate Using the Limited Liability Company
Protecting Real Estate Using the Limited Liability Company Asset protection is a hot topic for most commercial real estate investors. Asset Protection should be approached differently for each different type of asset. As for commercial real property, asset protection can be achieved by properly titling newly purchased commercial real estate property.
Major Reasons Why Real Estate Property Buyers Should Obtain a Survey
Major Reasons Why Real Estate Property Buyers Should Obtain a Survey Purchasing a home is a big deal, literally! The real property transaction should be done properly without any corners cut. The following are a few advantages to having a Survey of the property completed: Locate Rights Of Way and Easements: A Survey will determine whether any rights of way and/or …
Five Contract Drafting Tips
Five Contract Drafting Tips Contract law is a very tricky subject to someone who doesn’t do such transactions on an everyday basis. There are many legalese terminology and certain implications that may be contained in the writing. Often, one word can change the whole meaning of the contract. It is important to enlist a licensed …
Estate Planning for Same-Sex Couples
Estate Planning for Same-Sex Couples Estate planning for same-sex couples was traditionally very complicated. As of January 6, 2015, same-sex marriage became legal throughout Florida with the cases of Brenner v. Scott and Grimsley v. Scott ruling Florida’s constitutional and statutory same-sex marriage bans unconstitutional. With such change comes many additional rights that same-sex couples …
How Estate Taxation Planning Differs From State to State
How Estate Taxation Planning Differs From State to State Estate taxation planning may be different for individuals who live in different states. The major reason for this is each state’s respective death tax laws. When an individual passes, they may have to pay federal death taxes if their estate is larger than $5.4 million dollars …
Transferring U.S. Savings Bonds in Probate
Transferring U.S. Savings Bonds in Probate Transferring assets, such as U.S. Savings Bonds, to beneficiaries is just one of the duties that needs to be handled in probate. U.S. Savings bonds are debt securities issued by the U.S. Department of the Treasury to help pay for the U.S. government’s borrowing needs. U.S. savings bonds are considered one …
Estate Planning Tips for Millennials
Estate Planning Tips for Millennials Estate planning is the process planning for the use of assets during lifetime and the disposition of assets at death. Estate planning is not only important for the elderly, but should start as early as possible. Many millennials think that they are too young to plan their estate, but this isn’t …
The Validity of the No Contest Clause in the Last Will and Testament
The Validity of the No Contest Clause in the Last Will and Testament If you are considering drafting a will, the “No Contest Clause” may tempt you. Most people, however, don’t realize that the no contest clause is invalid in most states. A no contest clause is a provision drafted into estate planning which threatens …
Tips for Disinheriting Heirs
Tips for Disinheriting an Heir in an Estate Plan An estate plan is one of the most personal documents an individual may create. Your estate plan details all of your assets, who they are going to and any special instructions for supplemental distributions. It is not uncommon that you may desire to specifically leave out …
A Guide to Commercial Real Estate
A Guide to Commercial Real Estate The following is a great article on the commercial real estate market written by Rick Tobin of Premier Hotel Realty, a South Florida Commercial Real Estate Brokerage. The Changing Faces of Commercial Real Estate The commercial real estate market (“CRE”) is constantly changing and evolving. The commercial real estate market …
Estate Planning for Law Firms and other Businesses
Estate Planning For Law Firms and Other Businesses Many people don’t realize that their business needs estate planning too. Professionals have an even harder time ensuring that their businesses don’t go through probate upon their passing and/or their clients aren’t neglected. The issue is especially pressing in cases where there is only one solo practitioner running …
Estate Planning: Distinctions between a Personal Representative and a Trustee
Estate Planning: Distinctions between a Personal Representative and a Trustee While the Personal Representative (or Executor in some states) of a last will and testament and the Trustee(s) of a revocable living trust and/or other irrevocable trust document are almost always the same person, there are important differences with regard to each of their respective duties …
Selling Real Property in Probate
Selling Real Property in Probate The sale of real property in probate must go through the supervision of the court in order for the title to be marketable. This is always the case where a person dies intestate (or without a last will and testament). Or, where there is a last will and testament, but …
Tips on Choosing the Estate Planning Power holders for your Estate Planning Documents (Durable Power of Attorney)
Tips on Choosing the Estate Planning Power holders for your Estate Planning Documents (Durable Power of Attorney) The estate planning power holders or agent(s) designated on the durable power of attorney for financial-related decisions should be somewhat business savvy, or at least have a good sense of financial responsibility. A younger adult child, who has …
Tips on Choosing the Power Holders for your Estate Planning Documents (Health Care Surrogate)
Tips on Choosing the Power Holders for your Estate Planning Documents (Health Care Surrogate) So you are finally ready to talk about your estate planning documents, now what? Well, the biggest question I ask (other than who the beneficiaries should be) is who should have the “power.” Estate planning professionals commonly refer to these people …
Quarterly Investment Commentary First Quarter 2016
Quarterly Investment Commentary (First Quarter 2016) Read the first quarter market review/outlook and our article on estate planning (page 5) in 1650 Wealth Management’s Quarterly Investment Commentary: First Quarter 2016.
Selling Florida Real Property in Probate
Tips for Selling Florida Real Property in Probate The best tip for selling Florida real property in probate is to hire experienced, knowledgeable and diligent professionals to assist you with the transaction. A broker and/or real estate agent who is extremely knowledgeable and experience in the sale of property in probate may already have a …
When Guardianship is Necessary and How to Avoid the Process
When Guardianship is Necessary and How to Avoid the Process Simply stated, Guardianship is only necessary when a person becomes incapacitated and one or more of the following issues arise: The incapacitated person has no incapacity planning documents (no estate planning);
Property Ownership in Estate Planning
Property Ownership in Estate Planning A large part of estate planning is how assets are titled. There are five common ways that are used in the titling of assets. Also equally important in estate planning is to ensure that the correct beneficiaries are designated on your financial planning accounts (including, but not limited to: checking, savings, …
Life Estate Deeds in Estate Planning
Life Estate Deeds in Estate Planning There are several common types of deeds in Florida including: the warranty deed, life estate deed, quit claim deed and special warranty deed. The most protective type of deed is the warranty deed. The special warranty provides very limited warranties (the seller warrants that he or she has done nothing …
Why a Simple Will is Simply Not Enough
Why a Simple Will is Simply not Enough A common misconception in estate planning is that creating a simple will (last will and testament) without creating the accompanying incapacity planning documents is enough. A last will and testament is the document that administers a person’s estate after death and distributes assets to beneficiaries. Only creating …
Using Deeds to Avoid Probate in Florida
Using Deeds to Avoid Probate in Florida How can you take advantage of Deeds to avoid probate? Well, deeding your home to your revocable living trust is one of the easiest ways to have the home avoid probate. Each particular asset you own needs to be accounted for in estate planning with regard to probate …
The Mistake of Creating a Revocable Living Trust, but Failing to Fund it
The Mistake of Creating a Revocable Living Trust, but Failing to Fund it A revocable living trust is a great instrument to use in your estate planning, but simply creating and executing the trust is not the only step in the estate planning process. You must make sure that all of your assets are re-titled …
How Financial Planning Overlaps with Estate Planning
How Financial Planning Overlaps with Estate Planning Estate planning is the process of planning for incapacity and the disposition of assets at death. This process is principally important because if you don’t execute an estate plan, then you run the risk of the state deciding who will receive your assets, which may be against your intentions. …
Advanced Estate Planning
Advanced Estate Planning In Florida, advanced estate planning is advisable where the assets of an estate are close or beyond the federal tax exemption limit of $5.4 million. This is different from other states where you also have to account for a state estate tax, since Florida does not have one. This could be the …
Advantages of the Revocable Living Trust
Advantages of the Revocable Living Trust Estate Planning is the process of planning for the distribution of assets to selected beneficiaries at death. Basic estate planning includes the following legal documents: The declaration of health care surrogate (or health care directive), living will, durable power of attorney,
Overview of Probate Administration
Overview of Probate Administration Probate Administration is the process of settling a person’s estate and distributing assets from a decedent to their beneficiaries. Probate can occur in one of two ways, testate and intestate. Testate probate administration occurs when a person passes away with a last will and testament and/or revocable living trust. Intestate probate …
Basic Estate Planning
Basic Estate Planning Every individual should create a basic estate plan during their lifetime. One of the advantages to creating a basic estate plan is the ability to select the individual taking care of your personal affairs if you become disabled or pass away (rather than the Court). Another advantage is the ability to provide continued support for …
Benefits of a Shareholder Business Agreement
Benefits of a Shareholder Business Agreement A shareholder business agreement is an agreement between shareholders of a corporation describing how that company should be operated and the rights and obligations of the shareholders.
Trust Planning for Special Needs
Trust Planning For Special Needs Special needs trust planning allows a person who is eligible for public benefit programs to receive such benefits while also receiving a supplemental income stream for non-necessity items (such as beauty salon visits, vacations, gifts for children and grandchildren, etc.). The public benefits recipient will always receive the benefits of the …
The Florida Real Estate Contract
The Florida Residential Real Estate Contract A real estate contract for the sale and purchase of real property has a number of elements, which can be confusing and complex. Failure to select strategic terms in a contract for the sale and purchase of real estate or abide by the time limits specified in an executed …