WHEN THE SUNSHINE FADES, WHO WILL REMAIN?

When you are healthy you feel invincible, independent and less likely to feel sympathy for those that are ill. When you are healthy you go about your daily life; you work out, see your friends and family, enjoy the beautiful weather and ultimately just live.  

However when you become ill, life stops and you begin to view life through a different lens. Everything and everyone continues to move around you at their regular pace, and you are left by yourself to deal with your own misery. You might have some friends and family 'check in' on you, but the reality is, you are left to deal with the pain and the slow process of getting better all by yourself. 

It is not that your friends and family don't care about you, it's just that as humans, it is hard to put your life on hold to care for another when you yourself are healthy and have things you wish to do. Caring for another is somewhat a subconscious inconvenience. 

What if it is not simply a common cold, but something more severe where you require assistance from others on a more permanent basis. For instance, you are incapable of 2 daily acts of living and require the help of a caregiver. Or worse, you have become mentally incompetent to care for yourself. 

Don't assume that your spouse, your parents, or siblings will fill this role of caretaker for you (although you hope they would)  The reality is, just because life has stopped for you because of your illness, if they are healthy and able bodied they still have their own life to live and worry about.

This is why it is so important to make sure you have your Advanced Directives in place while you are healthy and able to make the decision for yourself. That includes your Durable Power of Attorney, Healthcare Surrogate and Living Will. You can even go so far as taking the burden away from your loved ones, by having a Long Term Care Insurance policy.

“Love me when I am healthy, but love me more when I am ill. Those that remain when the sunshine fades are the ones I want in my world”

Durable Power of Attorney: Name someone to manage your financial affairs either immediately or in the future should you become unable to do so yourself. 

Healthcare Surrogate: Name someone to act on your behalf if you become unable to make medical decisions for yourself.

Living Will: Document that will state how and if you want to prolong your life if you fall into a vegetative state

Long Term Care Insurance: Long-term care is care that you need if you can no longer perform everyday tasks (activities of daily living) by yourself due to chronic illness, injury or the aging process.  Long-term care is not only for the elderly. A large percentage of people receiving long-term care are under the age of 65.

“Caring for another is somewhat a subconscious inconvenience ”

You need to have an open discussion with whomever you wish to fill those roles and make sure they want to take on that responsibility for you. 

If you live in Miami-Dade, Broward, or Palm Beach contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs.

REMEMBER: You can’t predict the future, but you can plan for it.
 

I WISH I COULD RECORD MY DREAMS AND WATCH THEM LATER

Do you ever wake up in the morning and you can vividly remember the details of a crazy dream you just woke up from? Then you get out of bed, start your day, drive to work, and make a few phone calls. By the time you get to work and want to tell your best friend about your dream, you realize you can't remember what the dream was even about. 

The dream obviously had some meaning to you, but without it being written down, it just slipped through your fingers and *poof* no longer exists.

“You may not be able to record your dreams and watch them later, but you can record your wishes and your loved ones can watch them fall into place when you are gone.”

 

People always say that they are 'thinking' about the perfect estate plan. They have it written in their head but it's not quit ready to be written down on paper.  They feel that once they have  come up with the perfect plan, they will write it down. Until then, ehh, it can wait for a rainy day.

Don't delay- start today. You may have forgotten what you want to happen.

What should an estate plan consist of in South Florida?

Last Will & Testament: State your final wishes regarding who will receive or who will not receive from your estate, name guardians for your minor children, state directions regarding organ donation and burial.

Revocable Trust (Living Trust): In depth document that will state your final wishes. You are able to place stipulations and retain control of your assets during your lifetime. 

Durable Power of Attorney: Name someone to manage your financial affairs either immediately or in the future should you become unable to do so yourself. 

Healthcare Surrogate: Name someone to act on your behalf if you become unable to make medical decisions for yourself.

Living Will: Document that will state how and if you want to prolong your life if you fall into a vegetative state

REMEMBER:  Your estate plan will never be perfect. Stop using the excuse that you will start planning once you know exactly how you want it written. There are so many moving parts in your life, that your estate plan will be consistently changing.

However, if nothing is written down, your wishes will not be known to your loved ones.

You may not be able to record your dreams and watch them later, but you can record your wishes and your loved ones can watch them fall into place when you are gone.  

If you live in Miami-Dade, Broward, or Palm Beach counties it is time to start discussing with loved ones their estate planning needs. You can’t predict the future, but you can plan for it.

Contact an experienced estate-planning attorney at The Hershey Law Firm, in Plantation, Florida, at (954) 303-9468 to discuss your estate planning needs.

A Verbal Contract Isn't Worth The Paper It's Written On

Before smartphones and email, a phone call to speak with someone directly was the fastest form of communication. It was much faster then writing a letter, mailing the letter, and then impatiently waiting for the response. By the time you got a response, you might have forgotten the question asked or the question was no longer relevant.

Life moves so fast that our generation expects an immediate response to an email and text. If we don't respond immediately, we might cause a boyfriend/girlfriend to start 'wondering' why you didn't respond (which is grounds for a lot of pointless arguments).  You might lose a potential client if you don't respond immediately. They might assume you are not interested in their business or that you are too busy. The potential client will quickly move onto the next person hoping to gain the immediate attention they are seeking. 

Luckily, people still enjoy face-to-face communication. A lot of business takes place after hours over happy hour drinks and dinner.  If you verbally agree to working with someone over drinks, what are the chances one person might back out of the agreement the next day? With drinks flowing, people are more willing to enter into agreements.  Once they are sober, they might question that agreement and pretend it never existed. In the words of Jaime Foxx,  " blame it on the a a a a a alcohol"

“You should never leave your affairs up to chance. Leaving specific and detailed instructions in your will or trust can help solve complications down the line”

Well, the good thing is, it was only a verbal agreement. The bad thing is, it was only a verbal agreement.

When it comes to estate planning, many people make the common mistake of assuming their loved ones will honor their true wishes, as expressed verbally.  You should never leave your affairs up to chance. Leaving specific and detailed instructions in your will or trust can help solve complications down the line. There will be no question as to what your wishes are if they are clearly stated on paper.

In South Florida, there are a number of vehicles used with estate planning to protect both your assets and your wishes at your time of death. These documents will take away the possible 'he-said-she said' verbal agreements prior to your passing.

Revocable Trust(living trust): Allows you to control and manage assets in your trust while you are alive.

Living Will and Healthcare Surrogate- Will allow you to designate who will make medical decisions when you are unable to do so yourself.

Assignment of Property: Assign your property into your trust (real and personal property) to protect your assets.

Durable Power of Attorney: Designate and authorize someone to legally act on your behalf in the event you become incapacitated.

Last Will and Testament: Used upon death to distribute property to beneficiaries, specify last wishes, and name guardians for minor children.

If you live in Miami-Dade, Broward, or Palm Beach county contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs.

You can’t predict the future, but you can plan for it.

My Future Ex-Spouse Deserves NOTHING!

First comes love, then comes marriage, then comes divorce? If you realized that you never should have gotten married before having children, we salute you. However, most people marry, have children, then have an UH-OH moment and divorce. 

While in the process of getting divorced, you wish for your future ex-spouse to receive nothing! After all, you feel they don't deserve anything. What more is there to say?

If only you could say to your future ex-spouse, 'no soup for you' when it comes to receiving anything from your estate. If you are proactive and decide to update your estate planning documents while in the midst of the divorce process (which can take months or even years), in the State of Florida you cannot fully disinherit your spouse. The only way to leave your future ex-spouse out of your will and receive nothing is to have signed a valid prenuptial or postnuptial agreement. Otherwise, your spouse is entitled to the 'elective share'.

In Florida, the elective share to which a spouse is entitled comprises an extensive list of types of assets and property, which is detailed in Florida Statute 732.2035. The spouse is entitled to 30% of your estate through the elective share. However, if your spouse is going to take the elective share of your estate, a request must be filed within 6 months of date of service of notice of administration or within 2 years after the date of the decedent's death.  

If you are in the process of a divorce it is best to update your estate planning documents as soon as possible. Make sure your soon to be ex-spouse does not benefit more then allowed by the State of Florida. Also, do not forget to change any beneficiary designations that list your spouse to receive on anypay on death accounts (ie. life insurance policy, retirement accounts, investments, etc.)

“The only way to leave your future ex-spouse out of your will and receive nothing is to have signed a valid prenuptial or postnuptial agreement. Otherwise, your spouse is entitled to the ‘elective share’.”

Once you are officially divorced, do not forget to update your will or trust yet again. You should remove any language regarding your ex-spouse from your will or trust and at this point they no longer have a legal right to receive anything from your estate.

If you live in Miami-Dade, Broward, or Palm Beach county contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida at (954) 303-9468 to discuss your estate planning needs.

You Can't Predict The Future, But You Can Plan For It!

Beneficiary Designations: More Important Than You May Think

In Florida, one of the simplest ways to ensure someone receives your assets, is to name a specific person as a designated beneficiary on your accounts. By law, beneficiaries (individuals or institutions) you designate for an account will receive assets in that account upon your death (avoiding probate).

What type of accounts allow a beneficiary designation?  

·      Retirement Accounts

·      Life Insurance policies

·      Annuities

In South Florida, it is important to name both a primary beneficiary and contingent beneficiary. The contingent beneficiary will receive the assets if the primary beneficiary predeceases you.

What type of account does not include a beneficiary designation?

Brokerage accounts do not include beneficiary designations, but you can complete a Transfer on Death (TOD) agreement to designate how your assets should be distributed.

“It is important to review your beneficiary designation regularly, especially when there is a life changing event (marriage, divorce, birth of a child, or death of a spouse)”

You must complete a separate TOD agreement for each single or joint account you have. A TOD agreement assigns beneficiaries, which helps you avoid the costs, delays and publicity of probate. Without the designation assigned to the account, the account would be subject to probate.

It is important to review your beneficiary designation regularly, especially when there is a life changing event (marriage, divorce, birth of a child, or death of a spouse). If you do not update your account beneficiaries, your assets could be inherited by someone you no longer wish to receive (ie. ex-spouse)

Keep in mind beneficiary designations trump what ever is stated in a will or trust. However, the will or trust can help direct how the funds will be distributed to the intended beneficiary. For instance, you might have a child who you do not trust with money, the will or trust will give instructions on how the money will be distributed to the child over a period of time so they don't spend all the money at once.

If you live in Miami-Dade, Broward, or Palm Beach county contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs. You can’t predict the future, but you can plan for it.

Estate Planning for Retirement: Pay on Death Accounts

Your estate consists of both probate and non-probate assets. When you prepare a will you include probate assets to be distributed to named beneficiaries. If you have non-probate assets, regardless of whom you name as a beneficiary in the will, they will go directly to the pay on death “POD” beneficiary directly in the document.

Probate Assets:

Personal items, jewelry, art, antiques

Individual assets (property titled solely in your name)

Non-Probate Assets (Pay on Death):

• Life Insurance
• Retirement Accounts (401(k)s and IRAs),
• Annuities
• Bank Accounts (some)
• Jointly owned assets “tenancy by the entirety” “ with rights of survivorship”

A pay on death (POD) account names your beneficiary. As the name suggests, when you (the primary account holder) passes away the assets that are left in the account become the property of the named beneficiary.

“If you have non-probate assets, regardless of whom you name as a beneficiary in the will, they will go directly to the pay on death “POD” beneficiary directly in the document.”

There are some positives that come along with these accounts. These assets are outside of the probate process and there is a direct transfer to the named beneficiary.  You also retain control over the funds throughout your life and have the right to change beneficiaries or even close the account if you want to. Flexibility is certainly a good thing when it comes to your hard earned assets.

However, pay on death accounts are not a comprehensive estate planning solution. These assets are still a part of your estate for estate tax purposes so they do nothing to provide tax efficiency. There are no incapacity provisions, and you may not be able to give varying percentages of the resources left in the account to multiple respective beneficiaries.

If you live in Miami-Dade, Broward, or Palm Beach counties it is time to start preparing your estate-planning portfolio. Make sure both you and your family are taken care of in the future. You can’t predict the future, but you can plan for it.

Contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs.

Dealing with Alzheimer’s and Dementia: The Need for Pre-Planning

One of the hardest things to deal with is seeing your parents’ and spouse’s mental capabilities deteriorate due to Alzheimer’s and Dementia.

As a caregiver for your parent or spouse, how do you tell your parent or spouse that they aren’t allowed to drive anymore? Or that they can’t leave the house without you because you are afraid they might wander off? At what point do you realize that things have gotten so bad that you need to declare the person legally incompetent?

Often time caregivers are not sure whether or not their loved one is dealing with Alzheimer’s and Dementia and have a difficult time taking away freedoms that many of us take for granted, in order to keep that person safe. There are signs you should look for as the disease progresses.

“There are documents that can prevent the need for a formal guardianship to be opened as well as taking the financial burden off family members acting as caregivers.”

Signs and Symptoms of Alzheimer’s and Dementia

If your loved one has one or more of the symptoms listed below, it doesn’t necessarily mean that they have Alzheimer’s or Dementia. There are seven (7) stages, from no impairment during the first stage to very severe decline in the final one. If you notice they are suffering from a large number of symptoms over a long period of time and the problem appears to be getting worse, their chances of having the disease increases.

Memory Loss

·      Do they ask the same question over and over? (especially recent information)

·      In the advanced stage of the disease they may forget important events and dates in their life completely.

Inappropriate Behavior

·      Regular behavior may ignore social norms

·      (i.e. bathing regularly, wearing clothes when going outside, or speaking politely around others)

Time and Place Confusion

·      They may have trouble remembering where they are, how they got there, and what’s happening to them.

Difficulty in Following Directions and Solving Problems

·      Getting lost when traveling to familiar places

·      Have trouble keeping track of their bills each month

·      Have trouble remembering recipes that they used to use a lot.

What should you include in your estate-planning portfolio to help protect your loved ones before it is too late? There are documents that can prevent the need for a formal guardianship to be opened as well as taking the financial burden off family members acting as caregivers.

Long Term Care Insurance

This is care that you need if you can no longer perform everyday tasks (of daily living) by yourself due to chronic illness. 

Disability Insurance

Provides for periodic payments of benefits when a disabled insured is unable to  work.

Durable Power of Attorney

State who will be in charge of financial decisions on your behalf 

Healthcare Surrogate

State who will be in charge of healthcare decisions on your behalf.

If you live in Miami-Dade, Broward, or Palm Beach counties it is time to start preparing your estate-planning portfolio. Make sure both you and your family are taken care of in the future. You can’t predict the future, but you can plan for it.

Contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs.

Children Do Not Inherit Until Both Parents Pass Away

One day you are at the beach in Fort Lauderdale when you get a call from your mother saying that your father passed away. Most people would break down in tears and cry. However, you had a horrible relationship with your father your whole life.  Instead, you get a big grin on your face. Your dad had a lot of money and now you are ready to collect. After all, you were his son, even with the bad relationship there is no way your father would have disinherited you.

It hurts to say this, but you will receive nothing while your mother is still alive. If one parent has passed away while the other is still alive, the answer is simple: the money is first inherited by the spouse.

In Florida when married people create estate plans, they typically ask for the money to go to their surviving spouse. The purpose behind this is to make sure their spouse is taken care of.  If there are children under the age of 18, this allows the spouse to comfortably provide for the children. There are some circumstances that a child under 18 might receive money in the form of a trust. With that said, the spouse is often put in charge of the trust until the child reaches 18.

It is extremely rare for adult children to receive any kind of inheritance until both parents have passed away. The reason for this is not to make the children feel cheated, but it is to help ensure that the needs of the living parent are not a burden or concern for the adult children.

“If one parent has passed away while the other is still alive, the answer is simple: the money is first inherited by the spouse.”

If you live in Miami-Dade, Broward, or Palm Beach counties it is time to start preparing your estate-planning portfolio. Make sure your spouse and children are taken care of when you are gone. You can’t predict the future, but you can plan for it.

Contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs.

Would You Prefer A Day Of Celebration Or A Day Of Mourning?

Ask yourself,  “Do I want people to celebrate my life or do I want people to mourn my passing? “ No one likes to think about his or her death, but it is necessary. As a South Florida estate-planning attorney, I know there are a lot of things to think about when preparing your final plans. You worry about your children, your assets, who will be the executor.  Planning your burial or cremation is just as important as everything else.

Maybe you want to have a party that includes all your closest friends and family where they will tell their favorite stories about you. The party will have all your favorite foods and your favorite music playing in the background.  If you don’t let everyone know your wishes, what might happen is the exact opposite;  a somber experience, where everyone is crying and dressed in black.

“Do I want people to celebrate my life or do I want people to mourn my passing? ”

Another question to ask yourself is,  do you wish to be buried or cremated? Do you prefer to scatter your ashes in your favorite location or be entombed in the most comfortable coffin that exists?

It is extremely important to put in writing what your final wishes are, so they are carried out.  It is also helpful for those left behind both financially and logistically to know your wishes.

If you live in Miami-Dade, Broward, or Palm Beach counties it is time to start discussing with loved ones their estate planning needs. You can’t predict the future, but you can plan for it.

Contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs.

The Need to Include ‘Insurance’ in Your Estate Planning Portfolio

Do you want to make sure your loved ones are taken care of when you are gone? Do you want to make sure they can stay in their house and pay the mortgage? Do you want to make sure they can afford to pay utilities and food? If so, insurance is a good addition to your estate planning portfolio.

Your estate planning portfolio is not complete unless you consider the need for insurance.  We are not talking about health insurance or car insurance; we are talking about life insurance, disability insurance and long term care insurance. It is important to prepare your estate in case you become disabled during your working years, in case you need long-term healthcare as you age, or to make sure your family is taken care of when you are gone. Remember, you can’t predict the future, but you can plan for it.

Life Insurance

A life insurance policy is a contract with an insurance company. In exchange for premiums (payments), the insurance company provides a lump-sum payment known as a death benefit, to beneficiaries in the event of the insured’s death.

Term Life Insurance:

• Least expensive payment
• Temporary insurance that provides coverage for a period of time.
• Make sure you have the ability to convert from a term to a whole life policy
• Provides insurance coverage without any investment build up.
• If you miss a payment, the policy will be canceled.
• This is a form of renting insurance. If you do not die during the term you get nothing out of the policy. (For example, when you rent an apartment, once your lease is up, you walk away and have nothing to show for it)

Whole Life Insurance

• Higher premiums
• If you miss a payment they can take a loan from your premiums and that can place you under water
• Made up of risk protection and an investment account.
• Risk portion represents term insurance
• Investment portion acts as a savings account in the policy (cash value)
• (This is like owning a house, but not being able to make any additions to the house) 

“It is important to prepare your estate in case you become disabled during your working years, in case you need long-term healthcare as you age, or to make sure your family is taken care of when you are gone.”

Disability Insurance

Disability insurance is a plan that provides for periodic payments of benefits when a disabled insured is unable to work. The rule of thumb with disability insurance is that you want to be able to protect 60-80% of your after tax income. Even if you receive disability insurance from your employer, you may want to purchase individual disability insurance to cover the amount they do not cover. 

Short term Disability: Replaces a portion of your income during the initial weeks of a disabling illness or accident

Long Term Disability:Replaces a portion of your income after those initial weeks, for an extended period of time. 

Long Term Care Insurance

Long-term care is care that you need if you can no longer perform everyday tasks (activities of daily living) by yourself due to chronic illness, injury or the aging process.  Long-term care is not only for the elderly. A large percentage of people receiving long-term care are under the age of 65.

Long-term care isn’t intended to cure you. It is chronic care that you might need for the rest of your life. This care can span years and be expensive depending on the type of care you need and location where the care is received. Long-term care insurance is one way of helping pay for these expenses.

The policies reimburse policyholders a daily amount (up to a pre-selected limit) for services to assist them with activities of daily living such as bathing, dressing, or eating

You can use your daily benefits at the following places:

• Home
• Adult Service Centers
• Hospice Care
• Respite Care
• Assisted Living facilities
• Alzheimer’s special care facilities
• Nursing homes

South Florida is the land of retirement. You want to be able to enjoy your retirement. If you live in Miami-Dade, Broward, or Palm Beach counties it is time to start preparing your estate planning portfolio. Make sure both you and your family are taken care of in the future. You can’t predict the future, but you can plan for it.

Contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs.

Who Cares About My Bills When I Am Gone?-----CREDITORS DO!

Like most South Floridians, you probably go crazy during the holidays and for birthdays and charge everything to your credit card. You dine at fancy restaurants. You take out loans to purchase luxury cars and buy big houses in Miami, Fort Lauderdale, or Boca Raton.

You live the life and then one-day life ends. You have outstanding bills and those surviving you worry about who will be responsible for your spending habits.

“If you are co-signer on your spouse’s credit card or mother’s credit card. You are required to pay back anything they owe when they die.”

I get asked the question all the time: “Do I have to pay off my dead relative’s debts?”

Most of the time, the answer is no. When someone dies, their estate is responsible for paying off the debts. That means that debt collectors can go after bank accounts, or assets that the deceased person owned individually.

The next question often asked is, “ What if the estate does not have enough money to pay the debts?”  Then the collector is out of luck because they cannot go after other people to collect. The debt will go “unpaid”.

Like most legal matters, there are exceptions to the rule that do allow collectors to collect from others.

CIRCUMSTANCES YOU MAY BE RESPONSIBLE FOR THE DEBT OF OTHERS

Joint Accounts: Co-Signer on loan, credit card, mortgage, medical bills

(Not responsible if just an authorized user)

Ex: If you are co-signer on your spouse’s credit card or mother’s credit card. You are required to pay back anything they owe when they die.

Stole assets from the estate of the deceased

Ex: You are in charge of handling the decedents estate and you failed to pay or prevent debtors from collecting by illegally using the assets.

** Pay back debt with your own money

Debt collectors are very creative and persuasive. Even if you are not responsible for the debt, they may use terms such as ‘moral responsibility’ and use guilt to make family members feel they have to pay debts.

BEWARE: Creditors always come before heirs. That is why it is extremely important to protect your assets and start estate planning today!

If you live in Miami-Dade, Broward, or Palm Beach counties it is time to start discussing with loved ones their estate planning needs. You can’t predict the future, but you can plan for it.

Contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs

You Don’t Have to Be A Millionaire to Be Able To Leave Something For Your Children After You Die

Regardless of how much wealth you have, having some type of estate plan and financial power of attorney are the financial building blocks to make sure your assets go where you want them to go.

Between life insurance, wills and other financial tools, many parents of average income can also take steps to make sure their children will be okay financially after they’re gone.

Prepare a Will

The will states your final wishes regarding who will or will not receive from your estate, name guardians for your minor children, state directions regarding organ donation and burial.

Your estate consists of everything you own. This includes but is not limited to: home, investments, and family heirlooms.

The will will be used to name an executor, or the person responsible for paying final bills and dividing up the estate.

The downside to a will is that it has to go through probate, a court process that is both lengthy and costly. Creditors will be paid out prior to those beneficiaries named in the will.

Create a Trust

The trust will allow a parent to control from the grave. The assets will be owned by the trust, which will be controlled by the person who created it until they die or become incapacitated (the parents). Once the person dies, the trust would be handed to a successor trustee who can control the trust and use the funds to pay bills and later to divide the assets among family members.

A trust does not have to go through probate. The assets will be distributed based on the document and will not have to go through court proceedings. It is more expensive to form than a will, but there are many advantages.

Leave children your retirement accounts

Easiest way to ensure that your children will receive your retirement savings is to name them as the beneficiaries to your accounts such as 401(k), traditional IRA and Roth IRA.

Make sure beneficiary forms are kept up to date, since those designations would trump whatever is in the will.

People inheriting traditional IRAs will also have to take minimum required distributions, based on their age and life expectancy. Like the original owner, they’ll owe taxes on the money when they take distributions.

Beneficiaries inheriting a Roth IRA, which is funded with after-tax dollars, do not have to pay taxes on the savings as long as the account has been open for at least five years.

Buy life Insurance 

The purpose of life insurance is to make sure people who rely on you financially will be protected.  Many parents don’t purchase the correct policy, causing the money to run out sooner than they expected.

When purchasing life insurance, couples should factor in mortgage payments, college costs, food and other expenses and estimate how much their children would need to cover those expenses until they reach adulthood.

Parents might want to save on taxes by placing the life insurance policy into an “irrevocable life insurance trust”. Proceeds of the insurance would go into the trust and not be counted as part of parents’ estate.

If the child is named as co-trustee after reaching a certain age, the money will be protected from creditors and will not have to be shared with a spouse if the beneficiary gets divorced

529 Account

A 529 account, allows money to grow tax-free until it is used to pay for qualifying college expenses. Parents or grandparents can contribute up to $14,000 a year per child (or $28,000 a year for a couple) before having to pay gift taxes.

There is an exception that allows people to front-load up to five years worth on contributions for the next five years. The children may not have much left after paying for college expenses, but if they do, they can choose to pass on funds to pay for higher education costs for their own children.

If you live in Miami-Dade, Broward, or Palm Beach counties it is time to start preparing your estate-planning portfolio. Make sure your children are taken care of when you are gone. You can’t predict the future, but you can plan for it.

Contact an experienced estate-planning attorney at The Hershey Law Firm, in Fort Lauderdale, Florida, at (954) 303-9468 to discuss your estate planning needs.