Clearwater Probate and Estate Administration Law Blog

This blog often talks about the need for older Florida residents to plan for the future. And while those estate planning decisions are definitely necessary, what about the people who suddenly come into a great amount of wealth and don't know what to do about it? Luckily many of the decisions that need to be made are the same.

Many times we hear stories of lottery winners or children who come into a large inheritance blowing the money within a few years. One of the most paramount decisions that advisers recommend is to wait before making any large purchases. Take the time to make a plan and consult with experienced financial advisers.

Florida's status as one of the most retiree-friendly states in the country is due in no small part to its warm weather and beautiful scenery. The lack of taxes on retirement benefits and estate contributions sure does not hurt either. Since Florida also does not have an income tax, they aren't taxed on retirement income either. That gives Florida an edge as a retiree haven that some other states just don't have.

As our population ages and life expectancies continue to climb, more people are stretching their retirement income for longer periods of time. This means that the issue of retirement income taxation is more important than ever before; having to factor in for tax deductions could take years off a retiree's livable income and it could impact other estate-related issues as well. The fact that Florida doesn't tax such income can be an incentive for some people to spend their sunset years in the Sunshine State.

With a presidential election set to happen later this year, and a polarized political climate unlike any in this country's history, Florida residents should not count on any tax relief being extended for 2013. This could have large implications for Florida residents who are working on an estate plan and trying to keep as much wealth in the family as possible.

For 2012, the gift tax and estate tax exemption is $5.12 million, meaning anything given away under that amount cannot be taxed. But that exemption will expire at the end of this year unless Congress acts, which is not guaranteed.

As Florida residents get older and decide to start thinking about the various estate planning decisions that need to be made, one of the key goals in mind is to usually help their heirs and beneficiaries avoid probate court and lengthy litigation over control of assets. And these are situations that can affect any person, not just the super wealthy.

One estate planning attorney who has a history of being in the middle of probate battles involving celebrities and other wealthy clients, said one of the biggest problems he encounters is second or third spouses being pitted against children from a first marriage.