Your legacy is greater than your wealth: it’s the product of a lifetime of work and a means to ensure that your family retains the advantage earned by your blood, sweat, and tears. The professionals at DeLoach, Hofstra & Cavonis, P.A., have spent nearly 50 years helping people of high net worth families establish estate plans that accommodate complex priorities and protect valuable investments. Keep reading to learn more about estate planning for high net worth Floridians.
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Estate Planning for High Net Worth Floridians
Everyone needs an estate plan, but your circumstances determine its details.
Many families can preserve their estate’s integrity without having to think beyond a simple will or living trust—but if you own assets worth more than a home, a seemingly simple solution could cause complex problems. If you have a higher-than-average net worth, your estate plan must account for:
- The needs of your heirs.
- The possibility that young beneficiaries may not have the experience needed to put an inheritance to good use.
- Probate proceedings that expose your assets to public scrutiny and provide ample opportunity for disagreements to escalate into all-out litigation.
- Estate taxes and court fees, the combined cost of which can take a toll on an estate’s integrity and the size of your beneficiaries’ inheritances.
5 Strategies to Beat Back Taxes and Keep Your Assets Safe from Probate
Naturally, you have no problem paying your fair share of taxes. However, it’s important to have certain strategies in place to protect your high value estate legacy.
1. Incorporate Trusts into Your Estate Plan
A trust is a legal arrangement that lets you ensure certain assets are maintained for the benefit of your heirs and other beneficiaries. Here are the typical trust options in Florida:
- Revocable living trusts, which let you retain control of trust assets during your lifetime and make changes to the trust’s terms as you see fit.
- Irrevocable living trusts, which don’t let you retain control of trust assets but can facilitate a much firmer separation of personal liabilities from the trust’s responsibilities.
Revocable and irrevocable living trusts offer distinct advantages, although they’re dependent on your individual needs and long-term aspirations as the grantor. However, both types of trusts help keep assets out of probate while making it more difficult for beneficiaries to challenge the terms of an inheritance.
2. Integrate Beneficiary Designations
Accounts controlled by beneficiary designations and transfer-on-death arrangements are automatically excluded from probate. Most people leverage their designations to provide inheritances outside the purview of probate, but they can also be used to direct distributions into a trust—enhancing your estate’s protection and streamlining the process of succession.
3. Leverage Charitable Gifts and Deductions
If you’re passionate about a cause or concerned about the impact of estate taxes, donating a portion of your wealth to charity facilitates several distinct purposes. A gift or series of gifts lays the foundation of a generous legacy and can be allocated in a way that reduces your estate’s taxable base.
4. Use an Irrevocable Trust to “Freeze” Your Estate
Irrevocable trust assets are still subject to certain taxes, but they can be used to minimize long-term liability. By making regular contributions to the trust under your annual gift exclusion, you can effectively “freeze” gifted assets in a way that prevents their appreciating value from being factored into estate tax assessments.
5. Anticipate Conflict in Administration
Large estates and complex trusts face significant risks when they’re administered by inexperienced friends or family members. Even minor mistakes could have major repercussions, leading to mismanaged assets or accusations of fiduciary impropriety—accusations that may have to be defended with estate resources, taking money and resources away from your beneficiaries.
You don’t have to take chances with your legacy. At DeLoach, Hofstra & Cavonis, P.A., we understand exactly what requirements Florida families with high net worth must meet to anticipate challenges and devise strategies that protect their estates from the risks posed by heavy taxes, family feuds, and mismanagement.
Contact Our Florida Estate Planning Attorney to Learn More
Finding the right estate planning attorney in Florida may seem challenging at first, but it's an important first step, and you only need to schedule an initial consultation. This meeting gives you an opportunity to explain your situation, discuss specific needs, and ask about their strategies for securing your future.
To schedule a case evaluation, fill out our online contact form by clicking the button above and a member of our team will get back to you shortly. For immediate assisatnce, give us a call at 727.777.6842 now!
