Florida Asset Protection & Estate Planning Blog
C. Randolph Coleman
The Coleman Law Firm, PLLC
9250 Baymeadows Road, Suite 450
Jacksonville, FL 32256
Phone: (904) 448-1969
Fax: (904) 448-5244
Email: RColeman@TheColemanLawFirm.net
Florida Asset Protection & Estate Planning Blog
Bankruptcy As An Estate Planning Tool
Bankruptcy can be a vital estate planning tool for some. My colleague Suzann Becket
is a fellow member of Wealth Counsel . She recently posted the below suggestion that bankruptcy is one tool that fits into your estate management tool
set.
What do Abraham Lincoln
<< MORE >>
Estate Tax Confusion and Disagreement = Congressional Stalemate
An article in yesterday's Forbes.com helps explain why there is such a stalemate with Congress on what action to take with regard to
the estate tax. As we've discussed before , for
the year 2010 there is no estate tax. Based on current law, beginning January 1, 2011 the estate tax returns with a vengance. The amount of assets an individual can exempt from estate taxation
will be $1,000,000 and the maximum estate tax rate will be 55% (on estates with more than approximately $1.25 million).
The Forbes.com article is entitled "Billionaires Battle on Estate Tax." The report provides some insight on at least some of the reasons Congress so far has been unable to come to a consensus and enact new estate tax legislation. There are two very large and influential groups of billionaires on each side of this argument. In support of higher estate taxes is the group "United for ... << MORE >>
The Forbes.com article is entitled "Billionaires Battle on Estate Tax." The report provides some insight on at least some of the reasons Congress so far has been unable to come to a consensus and enact new estate tax legislation. There are two very large and influential groups of billionaires on each side of this argument. In support of higher estate taxes is the group "United for ... << MORE >>
"Who Moved My Dentures?" 13 False (Teeth) Truths About Long Term Care and Aging in America
After several days of negative news about nursing homes and the residents who live there, I thought it would be a welcome change of pace to consider some of the positive aspects of nursing homes and long term care.
The book "Who Moved My Dentures" 13 False (Teeth) Truths About Long-Term Care and Aging in America, goes a long way toward dispelling the percption that long-term care facilities are places to be avoided at all costs. The author, Anthony Cirillo, travels around the country performing for seniors at nursing homes and other venues.
In this book, Cirillo highlights the positive aspects of long-term care facilities. Using human interest stories of people he has met through his work, Cirillo shows that these often-dreaded facilities are full of life, including romance, friendships, and activities. He contends they build resiliency, which in turn leads to longer, happier, life.
Cirillo acknowledges there are problems. However, he believes that the majority of long-term care facilities have few troubles. In addition, he dispels myths that most long-term care facility residents are mentally iss or suffer from dementia, and instead presents a picture of residents who are active and engaged in the world around them.
Cirillo doesn't discuss nursing home rights and regulations, bue he does offer some information on paying for long-term care and tips for how to judge a good facility. "Who Moved My Dentures?" is easy to read, with many heartwarming stories, and presents a different perspective from teh one found in most other nursing home-related books - and newspaper articles, especially.
To purchase the book, click on the picture.
The book "Who Moved My Dentures" 13 False (Teeth) Truths About Long-Term Care and Aging in America, goes a long way toward dispelling the percption that long-term care facilities are places to be avoided at all costs. The author, Anthony Cirillo, travels around the country performing for seniors at nursing homes and other venues.
In this book, Cirillo highlights the positive aspects of long-term care facilities. Using human interest stories of people he has met through his work, Cirillo shows that these often-dreaded facilities are full of life, including romance, friendships, and activities. He contends they build resiliency, which in turn leads to longer, happier, life.
Cirillo acknowledges there are problems. However, he believes that the majority of long-term care facilities have few troubles. In addition, he dispels myths that most long-term care facility residents are mentally iss or suffer from dementia, and instead presents a picture of residents who are active and engaged in the world around them.
Cirillo doesn't discuss nursing home rights and regulations, bue he does offer some information on paying for long-term care and tips for how to judge a good facility. "Who Moved My Dentures?" is easy to read, with many heartwarming stories, and presents a different perspective from teh one found in most other nursing home-related books - and newspaper articles, especially.
To purchase the book, click on the picture.
How to Pay for Nursing Home Care
Today's Florida Times Union has a follow up story about the issues and the process of selecting a skilled nursing home for an elderly relative. It's a follow up to last weekend's news of the Florida Agency for Health Care Administration seeking to close a Jacksonville nursing home because its residents were not properly supervised and some were abusing others. The thrust of the article is how to ensure that you get the most appropriate environment for your loved one who now needs skilled nursing care. For additional information on selecting a nursing home contact ElderSource (www.myeldersource.org) an organization that offers advice on how to navigate the world of Medicare, Medicaid and other health insurance.
My experience with clients who are actually facing the spectre of a skilled nursing facility for their parent, spouse, or other loved one, is that while the most appropriate nursing home is the most important decision, figuring out how to pay for the skilled nursing home is the most difficult task.
As we have previously explained, there are three ways to pay for long term care in a skilled nursing facility:
1. Use of personal assets and income
2. Long Term Care Insurance
3. Medicaid
The first step in determining how to pay for skilled nursing home care is an evaluation of the resident's, or prospective resident's, financial circumstances. A careful analysis of the person's income and assets will show how long the individual can expect to use their own resources for the cost of the skilled nursing facility. It will also identify any long term care insurance that is available to provide financial support for the nursing home cost.
If the long term care insurance qualifies for participation in the Florida Long Term Care Partnership , then Florida law allows for the resident to set aside assets equal to the total amount of benefits that are provided by the long term care policy, and preserve those assets for other family members. This can be a significant asset preservation measure.
The next step is to prepare a Medicaid spenddown plan. A spenddown plan identifies which assets are not countable for Medicaid eligibility purposes, and which assets must be "spent down" in order to qualify for Medicaid benefits. A properly considered Medicaid spenddown plan can help preserve significant assets to provide for the financial support and well-being of the resident or other family members. This can be particularly important when one spouse is confined to a skilled nursing facility and the other spouse remains at home.
If you have a close friend or relative who may need skilled nursing care in the immediate, or distant future, encourage them to seek the assistance of an experienced Florida elder law attorney.
My experience with clients who are actually facing the spectre of a skilled nursing facility for their parent, spouse, or other loved one, is that while the most appropriate nursing home is the most important decision, figuring out how to pay for the skilled nursing home is the most difficult task.
As we have previously explained, there are three ways to pay for long term care in a skilled nursing facility:
1. Use of personal assets and income
2. Long Term Care Insurance
3. Medicaid
The first step in determining how to pay for skilled nursing home care is an evaluation of the resident's, or prospective resident's, financial circumstances. A careful analysis of the person's income and assets will show how long the individual can expect to use their own resources for the cost of the skilled nursing facility. It will also identify any long term care insurance that is available to provide financial support for the nursing home cost.
If the long term care insurance qualifies for participation in the Florida Long Term Care Partnership , then Florida law allows for the resident to set aside assets equal to the total amount of benefits that are provided by the long term care policy, and preserve those assets for other family members. This can be a significant asset preservation measure.
The next step is to prepare a Medicaid spenddown plan. A spenddown plan identifies which assets are not countable for Medicaid eligibility purposes, and which assets must be "spent down" in order to qualify for Medicaid benefits. A properly considered Medicaid spenddown plan can help preserve significant assets to provide for the financial support and well-being of the resident or other family members. This can be particularly important when one spouse is confined to a skilled nursing facility and the other spouse remains at home.
If you have a close friend or relative who may need skilled nursing care in the immediate, or distant future, encourage them to seek the assistance of an experienced Florida elder law attorney.
Estate Planning and Caring for Elderly Family Members
One of Jacksonville's skilled nursing facilities was closed this week by
order of the Florida Agency for Health Care Administration, leaving a number of its residents, and their concerned family members, with questions about where they will go to live. The allegations
being made are that the nursing home did not properly supervise the residents allowing aggressive residents to abuse other residents, and generally not providing an atmosphere of safety and
comfort for the elderly residents.
This kind of event creates much conern for the adult children of elderly parents who reach the point of no longer being able perform the activities of daily living without assistance or supervision. It also raises many issues involving estate planning and financial matters involving the elderly, and how their families provide for the management of the elderly relative's financial and health care needs.
It is always better to address these issues with appropriate planning professionals before the ... << MORE >>
This kind of event creates much conern for the adult children of elderly parents who reach the point of no longer being able perform the activities of daily living without assistance or supervision. It also raises many issues involving estate planning and financial matters involving the elderly, and how their families provide for the management of the elderly relative's financial and health care needs.
It is always better to address these issues with appropriate planning professionals before the ... << MORE >>
Crazy Lawsuits of the Month
It's that time of the month again, "The Most Ridiculous Lawsuit of the Month Poll." The US Chamber Institute for Legal Reform posts this poll each month to highlight the crazy lawsuits that people file in an attempt to obtain some kind of monetary recovery from those
who have had the hard work and discipline to accumulate some wealth.
Here is this month's nominees:
Here is this month's nominees:
- Woman who walked into traffice sues Google for providing unsafe directions. (Read story)
- Driver charged with manslaughter after high-speed chase sues police for pursuing him.(Read this story)
- Woman sues former employer, claiming she was fired for ...
Steinbrenner - 4th Billionaire to Die in Year of No Estate Taxes
George Steinbrenner, owner of the New York Yankees, died today. As so aptly stated by Forbes.com, "Steinbrenner's death was well timed for the estate tax." As we've discussed before , there is no estate tax currently in force for 2010. Steinbrenner is the 4th billionaire to die this year, so far. (Others include: Dan L. Duncan, Texas oilman with $9.7 billion estimated net worth; real estate mogul Warren Shorenstein with $1.1 billion net worth; Mary Jane Morse Cargill with $1.6 billion estimated net worth.) Steinbrenner's estimated net worth is $1.1 billion. Collectively, those four estates alone could have generated about $6 billion of estate tax revenues for the U.S. Treasury based on the estate tax in effect in 2009, or what is scheduled to be in effect for 2011. Too bad Congress has been so totally dilatory with their real responsibilities.
Look for more high net worth deaths in 2010. The weekend edition of the Wall Street Journal's article "Too Rich to Live?" notes that the "estate tax is set to come roaring back in January. That sets the stage for a perverse calculus: End it all — or leave a massive bill for your heirs to deal with." The WSJ article sums it up very succiently and clearly. At midnight December 31, 2010, the estate tax is resurrected (unless Congress acts before the end of the year - and at this point practically no one expects any action). The maximum estate tax rate jumps to 55% and there will be only $1 million per person allowed to be exempt from the tax. The example used by the WSJ says it all:
The math is ugly: On a $5 million estate, the tax consequence of dying a minute
after midnight on January 1, 2011 rather than two minutes earlier could be
more than $2 million; on a $15 million estate, the difference could be about $8
million.
The really unfortunate thing about Congress' inaction is that tens of thousands of families who have engaged in solid estate planning over the past several years may not realize the impact the "new" estate tax will have on their loved ones. Last year (2009) the exemption for each person was $3.5 million. A married couple could shelter a collective $7 million from estate taxes. Beginning January 1, 2011 that number drops to $2 million. There are tens of thousands of families in America with a net worth between $2 million and $7 million who have been lulled into the belief that they have no concerns with estate taxes. They don't realize that additional planning will be needed to continue to shield the difference between the $7 million that could pass estate tax free last year, and the $2 million that will be allowed to pass estate tax free starting January 1, 2011.
Those tens of thousands of families who will be impacted will end up paying hundreds of thousands to millions of dollars in taxes they won't be expecting. Literally billions of dollars will flow from the families of small business owners, farmers, ranchers, and professionals into the U.S. Treasury, unexpectedly. If the economists are concerned about a "double-dip" recession, look out for the impact on the economy from the loss of half the wealth of those tens of thousands of "wealth creator" small business owners!
It really is absurd that Congress has been unable to find agreement on a single plan for the estate tax. For the benefit of all America, both the House and the Senate must find some way to compromise on a new estate tax bill, if for no other reason that to give the American taxpayer the ability to plan for and estate tax that is known with some certainty. Come on Congress, get your act together for once!!
For those people who have more than $2 million net worth, it will be very worthwhile for you to consult with your estate planning professionals between now and the end of this year to determine whether there are options for you to pursue to reduce or eliminate the impact of this change on you and your family.
Look for more high net worth deaths in 2010. The weekend edition of the Wall Street Journal's article "Too Rich to Live?" notes that the "estate tax is set to come roaring back in January. That sets the stage for a perverse calculus: End it all — or leave a massive bill for your heirs to deal with." The WSJ article sums it up very succiently and clearly. At midnight December 31, 2010, the estate tax is resurrected (unless Congress acts before the end of the year - and at this point practically no one expects any action). The maximum estate tax rate jumps to 55% and there will be only $1 million per person allowed to be exempt from the tax. The example used by the WSJ says it all:
The math is ugly: On a $5 million estate, the tax consequence of dying a minute
after midnight on January 1, 2011 rather than two minutes earlier could be
more than $2 million; on a $15 million estate, the difference could be about $8
million.
The really unfortunate thing about Congress' inaction is that tens of thousands of families who have engaged in solid estate planning over the past several years may not realize the impact the "new" estate tax will have on their loved ones. Last year (2009) the exemption for each person was $3.5 million. A married couple could shelter a collective $7 million from estate taxes. Beginning January 1, 2011 that number drops to $2 million. There are tens of thousands of families in America with a net worth between $2 million and $7 million who have been lulled into the belief that they have no concerns with estate taxes. They don't realize that additional planning will be needed to continue to shield the difference between the $7 million that could pass estate tax free last year, and the $2 million that will be allowed to pass estate tax free starting January 1, 2011.
Those tens of thousands of families who will be impacted will end up paying hundreds of thousands to millions of dollars in taxes they won't be expecting. Literally billions of dollars will flow from the families of small business owners, farmers, ranchers, and professionals into the U.S. Treasury, unexpectedly. If the economists are concerned about a "double-dip" recession, look out for the impact on the economy from the loss of half the wealth of those tens of thousands of "wealth creator" small business owners!
It really is absurd that Congress has been unable to find agreement on a single plan for the estate tax. For the benefit of all America, both the House and the Senate must find some way to compromise on a new estate tax bill, if for no other reason that to give the American taxpayer the ability to plan for and estate tax that is known with some certainty. Come on Congress, get your act together for once!!
For those people who have more than $2 million net worth, it will be very worthwhile for you to consult with your estate planning professionals between now and the end of this year to determine whether there are options for you to pursue to reduce or eliminate the impact of this change on you and your family.
Asset Protection Needed Because of Crazy Lawsuits
Every now and then I'm reminded of why asset protection planning is so important. One recurring reason for anyone with assets to
protect - especially small business owners and professionals - is crazy lawsuits.
Today, I received an email from the U.S. Chamber Institute for Legal Reform. The email asks for my vote on the June 2010 Most Ridiculous Lawsuit Poll. A run down the list of nominees is all the reminder anyone needs to understand why asset protection planning has become a necessity for those who have accumulated assets. Here's the list of nominees:
Today, I received an email from the U.S. Chamber Institute for Legal Reform. The email asks for my vote on the June 2010 Most Ridiculous Lawsuit Poll. A run down the list of nominees is all the reminder anyone needs to understand why asset protection planning has become a necessity for those who have accumulated assets. Here's the list of nominees:
- Woman sues wireless carrier for $600,000 after phone bill exposes her affair causing her husband to walk out on her, ruining her life (Read The Story Here)
- Teacher with rabbit phobia sues student for drawing rabbit on the blackboard to see if the teacher would "really freak out." ...
No Superior Creditor Protection for Single Member LLCs
The new case rules that the charging
order protection usually afforded to owners ("members") of a Florida limited liability company, is not available for a single member limited liability company.
The Florida Supreme Court, in a decision rendered last Thursday, made Florida law clear, that a charging order is not the exclusive remedy available for a creditor with a judgment against the owner of a single member limited liability company (LLC). The Supreme Court, in answering a certified question from the federal 11th Circuit Court of Appeals, ruled: "the statutory charging order provision does not preclude application of the creditor‘s remedy of execution on an interest in a single-member LLC." The case is Shaun Olmstead vs. Federal Trade Commission, Case No. 08-1009, decision rendered June 24, 2010.
How does this case affect asset protection planning in the State of Florida?
Prior to this ruling, Florida was one ... << MORE >>
The Florida Supreme Court, in a decision rendered last Thursday, made Florida law clear, that a charging order is not the exclusive remedy available for a creditor with a judgment against the owner of a single member limited liability company (LLC). The Supreme Court, in answering a certified question from the federal 11th Circuit Court of Appeals, ruled: "the statutory charging order provision does not preclude application of the creditor‘s remedy of execution on an interest in a single-member LLC." The case is Shaun Olmstead vs. Federal Trade Commission, Case No. 08-1009, decision rendered June 24, 2010.
How does this case affect asset protection planning in the State of Florida?
Prior to this ruling, Florida was one ... << MORE >>
Another Billionaire Dies in 2010 - Billions in Lost Estate Taxes Due to Congressional Inaction
The second U.S. billionaire has died this year. First it was Dan L. Duncan , of Texas, with a net worth of approximately $9 billion (ranking as the world's 74th richest person), who died in March. Walter Shorenstein , of San Francisco, died last week. He was only 880th
on Forbes' list of the world's billionaires with an estimated net worth of $1.1 billion.
Based on the estate tax law currently in place , neither of these billionaires will pay any estate taxes. Had either of them died before January 1 of this year, 45% of their collective estates would ... << MORE >>
Based on the estate tax law currently in place , neither of these billionaires will pay any estate taxes. Had either of them died before January 1 of this year, 45% of their collective estates would ... << MORE >>
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C. Randolph Coleman
C. Randolph Coleman, is a Florida attorney since 1978. His practice is limited to estate planning, tax and asset protection planning, small business planning, probate and trust administration. Mr. Coleman is a frequent author and speaker regarding estate planning and asset protection planning matters. He is a graduate of the University of Florida (BSBA ‘72, JD, with honors ‘78). Mr. Coleman and The Coleman Law Firm are listed in the Martindale-Hubbell® Bar Register of Pre-Eminent Lawyers, which lists only those select lawyers who have earned the A-V® Rating in the Martindale-Hubbell Law Directory and have therefore been designated by their colleagues as pre-eminent in their field.
