TRUST ADMINISTRATION COULD HAVE HELPED LOTTERY WINNER
Financial matters can be complicated for many Florida residents who do not have experience with investments, financial planning and tax laws. There are many different ways that people can protect and build their wealth, however, to ensure that it lasts for the future. Trust administration is one way people can preserve current financial stability while also resolving their affairs to prevent conflict after their deaths.
A woman who won the Ontario lottery used up almost all of the $10.5 million she won. Without the help of a financial advisor to help her understand how to invest, save and protect her winnings, she quickly spent large sums of money buying homes, cars, and expensive possessions and lending significant amounts of money to family and friends. Fortunately, the woman had the foresight to divide the money among her family immediately upon winning it and her children's share would safely be waiting in a trust for them at the age of 26.
Many people may be unfamiliar with trusts as a financial planning tool, but creating a trust can allow Florida residents to manage their wealth and property while still alive or form a trust by a will after a person's death. Assets, money and property placed in a trust are protected because they become the property of the trust, governed by the specific rules and instructions contained in the trust contract. Placing money in a trust can help protect it from unwise spending by a beneficiary, prevent probate upon a decedent's death, and protect assets from creditors, among other benefits.
When deciding to create a trust to provide for the distribution of assets, it can be important to speak with an attorney experienced in such matters to determine primary goals and motivations in setting up the trust. There are many different kinds of trust that each serve different purposes-some are designed to protect assets from excessive taxation while others are intended to help with property division or charitable donations, for example. Trust administration can be complex, but with the help of a qualified attorney, it can be a valuable way to protect assets.
Dealing with the loss of a loved one is not an easy process, even when the person's death was not unexpected. It takes time for surviving family and friends to grieve the loss and to pick up the pieces of their own lives. This process can become even more difficult to handle when the deceased person did not have all of his or her financial affairs in order prior to his or her death. Specifically, if the person had no estate plan, sorting through his or her assets and liabilities can be a cumbersome task.
When a person dies intestate, which means that they had no will, Florida law dictates exactly how that person's assets are to be divided amongst his or her heirs. However, that is only the tip of the iceberg when it comes to settling the deceased person's estate.
A personal representative for the deceased has tremendous responsibilities, and if the decedent did no estate planning, then the probate court has to assign a representative, which often ends up being a close family member. That person has to then handle all kinds of administrative tasks, including identifying and valuing all of the estate's assets, notifying creditors of the person's death and filing and paying any taxes on the estate. Carrying out the duties of a personal representative is an especially tall task if that person does not have the benefit of estate planning documents from the deceased.
Our law firm has helped people avoid situations where they leave their loved ones with the difficult task of settling an estate with no real blueprint as to the deceased person's wishes.
Anyone who has accumulated assets during his or her life may want to consider setting up at least a basic estate plan with a will, a power of attorney and a healthcare surrogate. This will help toward the goal of having the asset distribution from his or her estate go smoothly. Also, these estate planning tools may help minimize the chances of family disputes about dividing assets, but also about the person's final healthcare wishes.
We have experience giving our clients and prospective clients the information that they need to move forward with addressing their estate planning needs.
Please reach out to us at 141 5th Street NW, Suite 300, Winter Haven, Florida 33881 at 863.294.1114.
Established in 1991, Rignanese & Associates is available to work with clients on their legal needs.
On behalf of J. Kelly Kennedy, Attorney/CPA, PLLC, which has been acquired by Rignanese & Associates, PLLC.