Estate Planning

Introduction

Robert W. Tribuiani, Esq., an attorney at law, will help you understand the estate planning options available to you and will develop an estate plan for your unique needs.  If you want to care for your loved ones during your lifetime as well as after your death, chances are that you will need a comprehensive estate plan tailored to your unique circumstances. No matter your net worth, if you own property, have a bank account, are recently married or divorced, have children, or wish to leave an inheritance to a friend or charity, it is important to have at least a basic estate plan in place. 

Since the Tribuiani Law Firm's recent opening, people interested in estate planning have been raving about the unprecedented success.  Don't miss the Annual Seminar on "Basics of Estate Planning."  This year's Seminar will be held in Palm Beach Gardens at St. Ignatius Cathedral and will be sponsored by the Lady's Guild. Do not delay!  Sign up for one of fifty free seats to this Seminar.

Estate Planning:  Not Just for Rich People

The estate planning process can almost certainly benefit anyone, not just rich people.  The two most significant benefits of the estate planning process are:  1) the peace of mind that allows you to live life to its fullest; and 2) a last will and testament that can benefit you as well as the ones you leave behind.

There are many benefits to having an estate plan, but perhaps the greatest benefit is the estate planning process itself.  Mahatma Gandhi once wrote, "Live as if you were to die tomorrow. Learn as if you were to live forever."  This self-evident truth is the fundamental building block of the estate planning process.  Along the same line of thought, there is one thing we all have in common - a life that will end in death -, and this holds true no matter how rich, talented, powerful or popular you may become.

Another benefit to the estate plan is the last will and testament (a "will").  A will is an essential part of any estate plan, and it can be the most powerful part.  It allows you to direct your property after you die, choose who will make sure your wishes are carried out, and designate a person to care for any minor children you leave behind.  Furthermore, a person who dies without a legally executed will, which is referred to as dying "intestate," can unwittingly cause severe hardship to his or her family and friends. A will can be an extremely powerful legal document and is not just for rich people.

To illustrate this point, let's look at the benefits of a properly executed will to a person who dies single with two adult children and property consisting of a homestead with a mortgage, mutual funds with a total market value of $5,000, a checking account with a $1,000 balance, and one car (no payments).  If this person, who is certainly not rich, dies with a properly executed will, the typical probate process may be completed within a few months of the person's death.  During this time, the personal representative reads the will, takes an inventory of property, sells the car and other personal property, pays off the mortgage and other creditors, and distributes the remaining estate according to the wishes set forth in the will. 

In contrast, if this person dies without a properly executed will, the adult children could wind up in front of a Circuit Court judge for more than a year taking inventory of property, tracking down heirs, getting consent from each and every heir to sell the car and other personal property, getting a personal representative appointed, paying down the mortgage and other creditors, and distributing the estate according to State Statutes, regardless of the person's wishes.  During this time, the mortgage could go into default, the house could suffer irreparable damage, the car may not be insurable or capable of valid registration, and additional legal fees are almost certain to be assessed.

Federal Estate Tax Exemption: Back to the Future

An estate planning attorney may be able to save you a lot of money in estate taxes.  As of this moment in time, April 21, 2010, you would be correct to say that there is absolutely no federal estate tax.   In the near future, however, you may have to stand corrected.  It appears that the legislature may be considering enacting an estate tax in the future that will begin at some point in the past. In effect, the legislature will be granting itself the power to travel back in time in order to collect taxes in the future.

Is this a proposed legislative enactment or a novel about time travel? It may be both.  The most current legislation, which was enacted in 2001, methodically increased the amount of a person's estate that would be exempt from estate taxes.  That exemption level continued to increase until this year, when the estate tax was repealed.  As a result, the current exemption level is unlimited and there is no part of the estate that would be subject to federal estate taxes.

Here is where it gets interesting.  According to current legislation, at the end of the year, the statute will "sunset" and we will return to the 2001 exemption level.  In sum, the 2011 exemption level will become the 2001 level.  That is, unless our legislature imposes an estate tax that is applied retroactively.  If so, the exemption that is applied retroactively will also be applied to future years.  Confused yet?

Although the 2001 statute has simplified tax planning over the past ten years, the uncertainty as to whether the 2010 tax repeal will be changed retroactively is having the opposite effect on the estate planning process going forward.  To return to our initial example, before we can be certain of our estate tax liability in the present, we must first wait until some time in the future to see whether the legislature will impose an estate tax retroactive to some point in the past.  The old adage about fact being stranger than fiction has come to fruition.

Contact Us

Whether you are already familiar with estate planning or new to the process, you are never too young or too old to begin the process.  Protect your assets from public scrutiny, probate and taxes.  Contact the Tribuiani Law Firm and have Robert W. Tribuiani, Esq., an attorney at law, create your estate plan today.

For a list of information that you will need to begin the estate planning process, please download the Tribuiani Law Firm Questionnaire by clicking on this link.