Clearwater, Florida Estate Planning Blog
Estate Owns a Car? Be Careful!
When an individual passes away, assets held in such individual’s name (and with no named beneficiary) generally become assets of that individual’s estate. Assume the individual owns a car, dies and his child drives the car before someone is appointed as personal...
Check out the NEW Internet TV Series, “Rescue Clearwater”, the true story of Clearwater Marine Aquarium
[subscribe2] Many of you know that I am a volunteer at the Clearwater Marine Aquarium (“CMA”) on the stranding, marine mammal and dive team as well as on the Board of Directors. What you may not know is that CMA is now producing a new internet television series,...
To Forgive is Divine but…it may also be taxable!
As many of you know the real estate crash caused many homeowners to owe more than the home was worth (“upside down”). There were many foreclosures and short sales and many banks would “forgive” the indebtedness deficiency of the homeowner. For example, you owned a...
Someone Dies…Do Not Forget Deadlines for the Subchapter-S Election!
Many entities are used for estate planning and for business operations. Often a corporation elects to be taxed a Subchapter S (“Sub-S”) corporation because of favorable taxation as a “pass through” entity instead of a “regular” corporation. Being taxed as a “regular”...
Draft What You Mean and Mean What You Draft!
Drafting documents can be difficult but if you draft what you mean and mean what you draft, drafting can become easier. Ambiguity is the bane of every estate planner. Once someone has become incapacitated or deceased, the documents should clearly reflect the...
Tax Court Denies Bad Debt Deduction
In Herrers, TC Memo 2012-308, the Tax Court sustained a deficiency asserted against a married couple who reported pass-through bad debt deductions from a limited liability company named HSA. The Herrers’ claimed such bad debt deduction on the grounds that a related...
BENEFICIARY DESIGNATIONS
Beneficiary designations are becoming one of the “hot” topics in estate planning and litigation because of the amount of wealth being transferred. It is very important for you to know and understand whom you have named as your primary and contingent beneficiary of...
Does an Adoption REALLY mean an Adoption for Inheritance Purposes?
Under Section 63.172 and Section 732.108 of the Florida statutes, if a biological child is adopted away from a biological father, and the child’s biological father dies without a will (intestate), then the child will not inherit because the child is considered a child...
State Statute Throws Beneficiary a Lifeline!
Private Letter Ruling (“PLR”) 201706004 addresses a beneficiary designation issue. Taxpayer died owning an individual retirement account (“IRA”). The beneficiary designation indicated that taxpayer’s trust was the beneficiary. The only problem? There was NO trust...
Owning your own business…One way to get help!
I know from the first day I opened my law practice that it was going to be a difficult process. Luckily I have my CPA and business background but little did I know that I was going to have be a computer expert, a plumber, a carpet cleaner, a file clerk, human...